A REPORT ON CRITICAL PERFORMANCE ANALYSIS OF VISHAKA CONTAINER TERMINAL AND VISHAKA PORT TO K.R.

SUBRAMANIAN

BY C.VISHAL CHANDRA BABU (1226109210) RAMANUJA DACHEPALLI (12261092O6) SECTION-B

GIIB DATE: 28TH ,DEC,2009

Abstract:
In this report a brief introduction of Vishaka container terminal and port trusts are being given. Also the facilities provided and expansion plans are also provided in brief. The competitiveness of the container terminal and port are being explained in terms of its strengths and advantages over the other ports and container terminals in India. Also SWOT analysis for both port and container terminal is provided to understand the strengths, weaknesses and opportunities and what are the measures can be taken to improve the operations and traffic handling.

VISHAKA CONTANER TERMINAL PVT. LTD.

ABOUT VCTPL:
The Vishaka Container Terminal (VCT) was set up under the aegis of Visakhapatnam Port Trust as a joint venture between DP World and United Liner Agencies of India (Private) Ltd and commenced operations on 26th June03 .VCT was set up under the aegis of Visakhapatnam Port Trust as a joint venture between DP World and United Liner Agencies of India (Private) Ltd and commenced operations on 26th June03. It is under the public private partnership with Vishaka port trust. It is an all weather container terminal located in the outer harbor of the Vishakhapatnam port, on the east coast of India.

INFRASTRUCTURE:
With the natural depth of 16.5 meters alongside VCT can hold the operations throughout the year. Other infrastructure available with VCT is as shown below Total Quay length Scope for future expansion Dredged depth at berth Permissible draft Ground slots 450 meters 700 meters 16.5 meters 15.0 meters 1,500 TEUs

The installed machinery and infrastructure available are

Number of Berths Rubber tyred gantry crane RMQC Reach stacker Fork lift 5 ton Internal vehicles

2 2 2 4 1

transfer 16

Services provided:
Various services provided by VCT are

Handling import and export containers along with ICD containers Handling transshipment containers and storage Reefer handling and maintenance EDI (electronic data interchange) connectivity which is connecting with the traders and customers online and provide web enabled information Weigh bridge Bunkering and fresh water supply

SWOT analysis:
Having the advantages and opportunities VCT can become an active competitor for all the other major container terminals in India particularly the container terminals situated on the west coast of India. A SWOT analysis can be prepared to know the strengths, weaknesses, threats and opportunities of VCT so that the areas of improvement and the opportunities can be better known to improve its operations. The SWOT analysis for VCT can be shown as:

Strengths:

Good connectivity from different ICDs of Hyderabad, Nagpur, Raipur etc. The industrialized cities like Chennai, Delhi, Hyderabad, and

Bangalore are well connected with the container terminal both with roadways and railways. Natural location which has a good scope of expansion Deepest container terminal in India which can allow a panamax vessel directly into the berth Availability efficiently of sophisticated equipment for handling containers

Well built contacts with vessel operations department (VO) for the planning of preberthing, loading/unloading facilities, availability of quay wall space, work shifts and internal cleanliness.

Weaknesses:
VCTs present capacity of handling containers is low compared to some major container terminals like Nhava Sheva, Chennai container terminal, Tuticorin container terminal etc.

Terminal will have to face a problem in terms of container dispatching to the domestic cities. There will be problems if there is a high traffic flow of containers to or from the domestic areas. Expansion of back up area (yard area) of the container terminal is limited and the terminal must plan for this.

Opportunities:
VCT can capitalize the advantageous location, deep draught and extensive track records with the port and connectivity with all the major cities

Terminal can utilize its outstanding public private partnership with the port to promote imports and exports With its existing quality standards it can increase its relations with major shipping lines in the long term along with capitalizing new customers The container terminal has a huge opportunity to increase its vessel inflow due to its proximity with Singapore

 Container terminal can showcase its high security systems to the shipping lines to attract more customers and increase the vessel inflow thereof.

Threats:
VCT faces a severe competition from the container terminals of Chennai, Tuticorin, Nhava Sheva as they have high inbuilt infrastructure and container storage capacities

VCT is only using 20% of its whole capacity with them. This shows that there is no free flow of vessels and it must improve in this area to be in competition with all other container terminals

Awareness about VCT to the sailing lines and other customers is not that intense. Though VCT has good quality standards in providing services, lack of awareness about the terminal even after five years hinders the growth which the management must take care of.

VISHAKA PORT
About port:
Ports play a significant role in the development of a country since it links the domestic economy with the rest of the world and thus help in promoting international trade. As a result, port development becomes a major issue for policy making and ongoing economic reforms and trade liberalization . Vishaka port trust is formed in 1964 under the MPT act, government of India. This port was naturally formed and most easily established ports on the east coast of India. It is an all weather port and has natural berths. The Port has

striking similarities with Durban Port of Africa in the sense that the later is also surrounded by a hill on the South Side. The major cargo handled at the port is petroleum products, iron ore, coal and coke, finished fertilizers etc.

Facilities available at the port:

Facility Water spread Draft Beam Berths Inner harbor 100 hectares 11meters 32.2meters 18 Outer harbor 200 hectares 17meters 48meters 6

To avoid delay for Berthing, Shifting or Sailing of Vessels, they are to maintain minimum ballast draft of 3meters to 5meters with propeller fully submerged is to be maintained. Also the port has the facilities for handling all types of cargo such as bulk cargo handling, liquid cargo handling, container handling facilities, storing facilities. Cargos like iron ore, coal and coke and other minerals are under bulk cargo. Crude oil and petroleum products are being handled using liquid handling facilities and the containers handling is done through the Vishaka container terminal. Apart from the handling facilities and infrastructure, the port has also infrastructure for storage. The port has total godowns of 45 in 3.7 lakh square meters handled by port and other godowns. The port has extensive railway network with all the domestic cities in the country. The railway network is extensively divided into iron ore traffic and other non iron ore traffic. The port has a track length of 200KM catering to 12 sidings and 17 open terminals. Also the port has two dry docks one for repairs of port craft and other for repairs of fishing trawlers. Apart from these the port also has the bunker facilities, water supply facilities and shore reception facilities.

SWOT Analysis:
The SWOT analysis for the port can be done as shown below:

Strengths:

Well established natural port with inner and outer harbor Core competency in handling bulk cargo The port have the facilities for dispatching the cargo to anywhere in the country. These facilities made the port highest in the annual railway traffic among the major ports. Incentives offered on certain types of cargo which is to be exported which attracts the shipping lines to this port. Incentives given by the government to the domestic enterprises to promote trade. Handling VLCC at anchorage for the port is good Inefficient use of adequate of storage facilities Limited availably of shore unloading facilities for Cape size vessels Close proximity to city leading to evacuation problems Absence of modern ICT facilities Manual coal handling facilities with less productivity Incentives given will lead to promote exports and vessel traffic Plans by substantial investments by the industries in the Vishakhapatnam indicating potential growth Strong demand for crude oil and petroleum products will encourage imports. Vishakhapatnam port gets the opportunity of increasing its traffic flow as its good at handling the liquid cargo Utilize its geographical proximity with the eastern countries like Singapore, Malaysia, Philippines, European countries in developing trade relations thereby promoting exports

Weaknesses:

Opportunities:

Threats:
Strong inters port competition with the other major ports like Nhava Sheva, Chennai, Tuticorin and Cochin. Entry of private partnerships and ports will increase the competition and affect the existing ports Relative strong labor unions will affect the introduction of sophisticated equipment

Conclusion:

Thus, Vishakhapatnam port is becoming a hinterland for the trade relations between countries of Europe, American and India. Its operational facilities and services provided made the port more operational in the international trade. With the increase in the storage facilities and the private partnership with the container terminal port is gaining importance in the industry. With the increase in bulk cargo traffic and increase in imports of iron ore and coal and coke the demand for the utilization of the port is being increasing drastically. VCT also, with its established systems meeting with the international standards and some natural advantages is proved to be competent enough with other major container terminals in India. VCT should advertise enough and promote its terminal so that all the shipping lines will be aware of this high quality container terminal and get attracted to its valuable services.