Maritime Shipping
Maritime Shipping
Maritime Shipping
PROJECT REPORT ON
ARR MARITIME SHIPPING COMPANY
IN PARTIAL FULLFILMENT FOR BACHELORS OF MANAGEMENT
STUDIES
2011-12
PROJECT GUIDE
PROF. ANU PILLAI
NEW PANVEL
1
ACKNOWLEDGEMENT
Last but not the least, our wholehearted thanks goes to the employees whom we
interacted and all those people who indirectly or directly helped us.
PRIYA KASWAN.
2
DECLARATION
_______________
Signature
3
MAHATMA EDUCATION SOCIETY’S
NEW PANVEL
CERTIFICATE
This is to certify that the work entered in this journal is the work of PRIYA KASWAN
T.Y.BMS, 3452 have successfully completed a project report on the OVERVIEW OF
ARR MARITIME SHIPPING COMPANY.
Topic terms of the year 2011-12 in the college as laid down by the college authority
____________
4
INDEX
3. Conceptual framework. 22
4. Company profile. 51
6. Conclusion. 78
8. Appendices. 80
5
INDEX
2. retirement age 69
3. family size 70
6
CHAPTER-1
INTRODUCTION:
Based on Cargo categories, shipping industry can be divided to container shipping, dry bulk
carriers, tanker, specialised tonnage(incl. cruise, warship, etc.), Ro-Ro, Barge, etc.
The container shipping is now more and more popular and carrying the major part of the
shipment value. The containers include three sizes: 20 TEU, 40 TEU and 45 TEU and can be
divided into the following types considering the cargo inside the containers: Dry Cargo
Container, Reefer Container, Tank Container, Platform Based Container, Platform Container,
Open Top Container, Car Container, Pen Container or Live StockContainer, Garment Container,
etc.
In dry bulk market, the top 3 main cargoes are iron ore, coal and grain, and the dry bulk
carriers include handysize, handymax, supramax, panamax, karmsamax and capesize. It can be
also more detailed, like post-panamax, post-capesize, etc.
Based on roles in shipping industry, there are vessel owners, vessel operators, brokers, agencies,
charterers, terminals, shipyards, banks, etc.
Vessels owners are who own vessels. Really a meaningless definition, but easy to understand.
Sometimes banks can be shipowners when they buy vessels from the shipyards. Shipyards are
where vessels are built.
Vessel owners not always operate vessels by themselves, so they can charter the vessel out to
vessel operators who are also charterers in such cases. The biggest container vessel owner is
Maersk Line, and in bulk, STX Pan Ocean and some other operators also have high performance.
Brokers, who I’m one of them now, are independent to or representing vessel owners or
charterers, to help either side to find suitable vessels or cargoes. Brokers are very important role
in shipping industry since they are professional at this industry and have plenty of information in
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hand which can help match both vessel owners and charterers’ needs more easily and efficiently.
The famous brokers are Claksons, Maersk brokers, etc.
MEANING:
shipping
1. The act or business of transporting goods.
2. The body of ships belonging to one port, industry, or country, often referred to in aggregate
tonnage.
3. Passage or transport on a ship.
Maersk line, CMA CGM, MSC, APL and more than these.
Every shipping line have own services & own destination that create atmosphere of competition.
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HISTORY OF MARITIME:
Maritime history is the study of human activity at sea. It covers a broad thematic element of
history that often uses a global approach, although national and regional histories remain
predominant. As an academic subject, it often crosses the boundaries of standard disciplines,
focusing on understanding mankind's various relationships to the oceans, seas, and major
waterways of the globe. Nautical history records and interprets past events involving ships,
shipping, navigation, and seamen.
Maritime history is the broad overarching subject that includes fishing, whaling, international
maritime law, naval history, the history of ships, ship design, shipbuilding, the history of
navigation, the history of the various maritime-related sciences (oceanography, cartography,
hydrography, etc.), sea exploration, maritime economics and trade, shipping, yachting, seaside
resorts, the history of lighthouses and aids to navigation, maritime themes in literature, maritime
themes in art, the social history of sailors and sea-related communities.[1]
Ancient times
In ancient maritime history, the first boats are presumed to have been dugout canoes, developed
independently by various stone age populations, and used for coastal fishing and travel. The
Indigenous of the Pacific Northwest are very skilled at crafting wood. Best known for totem
poles up to 80 feet (24 m) tall, they also construct dugout canoes over 60 feet (18 m) long for
everyday use and ceremonial purposes
Indigenous Americans making a dugout canoe, a practice which they had done for centuries
The earliest seaworthy boats may have been developed as early as 45,000 years ago, according to
one hypothesis explaining the habitation of Australia. In the history of whaling, humans began
whaling in pre-historic times. The oldest known method of catching whales is to simply drive
them ashore by placing a number of small boats between the whale and the open sea and
attempting to frighten them with noise, activity, and perhaps small, non-lethal weapons such as
arrows. Typically, this was used for small species, such as Pilot Whales, Belugas and Narwhals.
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Ships and vessels
Various ships were in use during the Middle Ages. The longship was a type of ship that was
developed over a period of centuries and perfected by its most famous user, the Vikings, in
approximately the 9th century. The ships were clinker-built, utilizing overlapping wooden
strakes. The knaar, a relative of the longship, was a type of cargo vessel. It differed from the
longship in that it was larger and relied solely on its square rigged sail for propulsion. The cog
was a design which is believed to have evolved from (or at least been influenced by) the
longship, and was in wide use by the 12th century. It too used the clinker method of construction.
The caravel was a ship invented in Islamic Iberia and used in the Mediterranean from the 13th
century.[4] Unlike the longship and cog, it used a carvel method of construction. It could be either
square rigged (Caravela Redonda) or lateen rigged (Caravela Latina). The carrack was another
type of ship invented in the Mediterranean in the 15th century. It was a larger vessel than the
caravel. Columbus’s ship, the 3%Santa María was a famous example of a carrack.
The Arab Empire maintained and expanded a wide trade network across parts of Asia, Africa and
Europe. This helped establish the Arab Empire (including the Rashidun, Umayyad, Abbasid and
Fatimid caliphates) as the world's leading extensive economic power throughout the 7th-13th
centuries.
Apart from the Nile, Tigris and Euphrates, navigable rivers in the Islamic regions were
uncommon, so transport by sea was very important. Islamic geography and navigational sciences
were highly developed, making use of a magnetic compass and a rudimentary instrument known
as a kamal, used for celestial navigation and for measuring the altitudes and latitudes of the stars.
When combined with detailed maps of the period, sailors were able to sail across oceans rather
than skirt along the coast. According to the political scientist Hobson, the origins of the caravel
ship, used for long-distance travel by the Spanish and Portuguese since the 15th century, date
back to the qarib used by Andalusian explorers by the 13th century.
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Age of Discovery
The Age of Discovery was a period from the early 15th century and continuing into the early
17th century, during which European ships traveled around the world to search for new trading
routes and partners to feed burgeoning capitalism in Europe. They also were in search of trading
goods such as gold, silver, and spices. In the process, Europeans encountered peoples and
mapped lands previously unknown to them.
Christopher Columbus was a navigator and maritime explorer who is one of several historical
figures credited as the discoverer of the Americas. It is generally believed that he was born in
Genoa, although other theories and possibilities exist. Columbus' voyages across the Atlantic
Ocean began a European effort at exploration and colonization of the Western Hemisphere.
While history places great significance on his first voyage of 1492, he did not actually reach the
mainland until his third voyage in 1498. Likewise, he was not the earliest European explorer to
reach the Americas, as there are accounts of European transatlantic contact prior to 1492.
Nevertheless, Columbus's voyage came at a critical time of growing national imperialism and
economic competition between developing nation states seeking wealth from the establishment
of trade routes and colonies. Therefore, the period before 1492 is known as Pre-Columbian.
John Cabot was a Genoese navigator and explorer commonly credited as one of the first early
modern Europeans to land on the North American mainland aboard the Matthew in 1497.
Sebastian Cabot was an Italian explorer and may have sailed with his father John Cabot in May
1497. John Cabot and perhaps Sebastian, sailing from Bristol, took their small fleet along the
coasts of a "New Found Land". There is much controversy over where exactly Cabot landed, but
two likely locations that are often suggested are Nova Scotia and Newfoundland. Cabot and his
crew (including perhaps Sebastian) mistook this place for China, without finding the passage to
the east they were looking for. Some scholars maintain that the name America comes from
Richard Amerik, a Bristol merchant and customs officer, who is claimed on very slender
evidence to have helped finance the Cabot voyages.
Jacques Cartier was a French navigator who first explored and described the Gulf of St-
Lawrence and the shores of the Saint Lawrence River, which he named Canada. 31%1Juan
Fernández was a Spanish explorer and navigator. Probably between 1563 and 1574 he
discovered the 311Juan Fernández Islands west of 3Valparaíso, Chile. He also discovered the
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Pacific islands of 399San Félix and San Ambrosio (1574). Among the other famous explorers of
the period were Vasco da Gama, 31Pedro Álvares Cabral, Yermak, 333Juan Ponce de León,
Francisco Coronado, 311Juan Sebastián Elcano, Bartolomeu Dias, Ferdinand Magellan, Willem
Barentsz, Abel Tasman, Jean Alfonse, Samuel de Champlain, Willem Jansz, Captain James
Cook, Henry Hudson, and Giovanni da Verrazzano.
Peter Martyr d'Anghiera was an Italian-born historian of Spain and of the discoveries of her
representatives during the Age of Exploration. He wrote the first accounts of explorations in
Central and South America in a series of letters and reports, grouped in the original Latin
publications of 1511-1530 into sets of ten chapters called "decades." His Decades are thus of
great value in the history of geography and discovery. His De Orbe Novo (published 1530; "On
the New World") describes the first contacts of Europeans and native Americans and contains,
for example, the first European reference to India rubber.
Richard Hakluyt was an English writer, and is principally remembered for his efforts in
promoting and supporting the settlement of North America by the English through his works,
notably Divers Voyages Touching the Discoverie of America (1582) and The Principal
Navigations, Voiages, Traffiques and Discoueries of the English Nation (1598–1600).
20th century
In the 20th century, the internal combustion engine and gas turbine came to replace the steam
engine in most ship applications. Trans-oceanic travel, transatlantic and 1transpacific, was a
particularly important application, with steam powered Ocean liners replacing sailing ships, then
culminating in the massive Superliners which included the RMS Titanic. The event with the
Titanic lead to the Maritime Distress Safety System.
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Maritime events of World War I
World War I, Naval Warfare of World War I, and -%%(-Battle of the Atlantic (1914-1918)
At the start of the war, the German Empire had cruisers scattered across the globe. Some of them
were subsequently used to attack Allied merchant shipping. The British Royal Navy
systematically hunted them down, though not without some embarrassment from its inability to
protect allied shipping. For example, the detached light cruiser Emden, part of the East-Asia
squadron stationed at Tsingtao, seized or destroyed 15 merchantmen, as well as sinking a
Russian cruiser and a French destroyer. However, the bulk of the German East-Asia squadron –
consisting of the armoured cruisers Scharnhorst and Gneisenau, light cruisers Nürnberg and
Leipzig and two transport ships – did not have orders to raid shipping and was instead underway
to Germany when it was lost at the Battle of the Falkland Islands in December 1914.[19]
Soon after the outbreak of hostilities, Britain initiated a Naval Blockade of Germany, preventing
supplies from reaching its ports. The strategy proved effective, cutting off vital military and
civilian supplies, although this blockade violated generally accepted international law codified
by international agreements. A blockade of stationed ships within a three mile (5 km) radius was
considered legitimate, however Britain mined international waters to prevent any ships from
entering entire sections of ocean, causing danger to even neutral ships. Though there was limited
response to this tactic, some expected a better response for German's aim with its unrestricted
submarine warfare.
German U-boats attempted to cut the supply lines between North America and Britain The nature
of submarine warfare meant that attacks often came without warning, giving the crews of the
merchant ships little hope of survival. After the infamous sinking of the passenger ship RMS
Lusitania in 1915, Germany promised not to target passenger liners. In 1916 the United States
launched a protest over a cross-channel passenger ferry sinking, Germany modified its rules of
engagement. Finally, in early 1917 Germany adopted a policy of unrestricted submarine warfare,
realizing the Americans would eventually enter the war. Germany sought to strangle Allied sea
lanes before the U.S. could transport a large army overseas.
The U-boat threat lessened in 1917, when merchant ships entered convoys escorted by
destroyers. This tactic made it difficult for U-boats to find targets. The accompanying destroyers
might sink a submerged submarine with depth charges. The losses to submarine attacks were
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reduced significantly. But the convoy system slowed the flow of supplies. The solution to the
delays was a massive program to build new freighters. Various troop ships were too fast for the
submarines and did not have to travel the North Atlantic in convoys.
The First World War also saw the first use of aircraft carriers in combat, with HMS Furious
launching Sopwith Camels in a successful raid against the Zeppelin hangars at Tondern in July
1918.
In the North Atlantic, German U-boats attempted to cut supply lines to the United Kingdom by
sinking merchant ships. In the first four months of the war they sank more than 110 vessels. In
addition to supply ships, the U-boats occasionally attacked British and Canadian warships. One
U-boat sank the British carrier HMS Courageous, while another managed to sink the battleship
HMS Royal Oak in her home anchorage of Scapa Flow.
In the summer of 1941, the Soviet Union entered the war on the side of the Allies. Although the
Soviets had tremendous reserves in manpower, they had lost much of their equipment and
manufacturing base in the first few weeks following the German invasion. The Western Allies
attempted to remedy this by sending Arctic convoys, which travelled from the United Kingdom
and the United States to the northern ports of the Soviet Union - Archangel and Murmansk. The
treacherous route around the North Cape of Norway was the site of many battles as the Germans
continually tried to disrupt the convoys using U-boats, bombers, and surface ships.
Following the entry of the United States into the war in December 1941, U-boats sank shipping
along the East Coast of the United States and Canada, the waters around Newfoundland, the
Caribbean Sea, and the Gulf of Mexico. They were initially so successful that this became
known among U-boat crews as the second happy time. Eventually, the institution of shore
blackouts and an interlocking convoy system resulted in a drop in attacks and U-boats shifted
their operations back to the mid-Atlantic.
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The turning point of the Battle of the Atlantic took place in early 1943 as the Allies refined their
naval tactics, effectively making use of new technology to counter the U-Boats. The Allies
produced ships faster than they were sunk, and lost fewer ships by adopting the convoy system.
Improved anti-submarine warfare meant that the life expectancy of a typical U-boat crew would
be measured in months. The vastly improved Type 21 U-boat appeared as the war was ending,
but too late to affect the outcome. In December 1943, the last major sea battle between the Royal
Navy and the German Navy took place. At the Battle of North Cape, the German battleship
Scharnhorst, was sunk by HMS Duke of York, HMS Belfast, and several destroyers.
Pacific War
The USS Arizona burning after the Japanese attack on Pearl Harbor
The Pacific War was the part of World War II—and preceding conflicts—that took place in the
Pacific Ocean, its islands, and in East Asia, between July 7, 1937, and August 14, 1945. The
most decisive actions took place after the Empire of Japan attacked various countries, later
known as the Allies (or Allied powers), on or after December 7, 1941, including an attack on
United States forces at Pearl Harbor. The attack on Pearl Harbor (called the Hawaii Operation or
Operation Z by the Japanese Imperial General Headquarters, and the Battle of Pearl Harbor by
some Americans) was a surprise military strike conducted by the Imperial Japanese Navy against
the United States naval base at Pearl Harbor, Hawaii on the morning of December 7, 1941. The
attack was intended as a preventive action in order to keep the U.S. Pacific Fleet from
influencing the war that the Empire of Japan was planning in Southeast Asia, against Britain and
the Netherlands, as well as the U.S. in the Philippines. The base was attacked by 353 Japanese
aircraft in two waves, launched from six aircraft carriers The attack came as a profound shock to
the American people and led directly to the United States entry into World War II in both the
Pacific and European theaters. Despite numerous historical precedents for unannounced military
action, the lack of any formal warning by Japan, particularly while negotiations were still
apparently ongoing, led to President Franklin D. Roosevelt proclaiming December 7, 1941, "a
date which will live in infamy".
Between 1942 and 1945, there were four main theatres in the Pacific War, corresponding with
and defined by the major Allied commands in the war against Japan. U.S. sources refer to two
theaters within the Pacific War: the Pacific Theater of Operations (PTO) and the China Burma
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India Theater (CBI). However these were not operational commands. In the PTO, the Allies
divided operational control of their forces between two supreme commands, known as Pacific
Ocean Areas and Southwest Pacific Area.
Island hopping was an important military strategy in the Pacific Theater of World War II. The
strategy employed by the Allies of World War II Combined Chiefs of Staff, beginning with
Operation Cartwheel, was to bypass heavily fortified Japanese positions and instead concentrate
the limited Allied resources on strategically important islands that were not well defended but
capable of supporting the drive to the main islands of Japan. This strategy was possible in part
because the Allies used submarine and air attacks to blockade and isolate Japanese bases,
weakening their garrisons and reducing the Japanese ability to resupply and reinforce. Thus
troops on islands which had been bypassed, such as the major base at Rabaul, were useless to the
Japanese war effort and left to "wither on the vine."
Hard-fought battles on the Japanese home islands of Iwo Jima, Okinawa, and others resulted in
horrific casualties on both sides, but finally produced a Japanese retreat. Faced with the loss of
most of their experienced pilots, the Japanese increased their use of kamikaze tactics in an
attempt to create unacceptably high casualties for the Allies. After the turning point of the
Pacific where a third of the Imperial Japanese Navy fleet was hit in the Battle of Midway, the
United States Department of the Navy recommended various positions for and against an
invasion of Japan in 1945. Some staff proposed to force a Japanese surrender through a total
naval blockade or air raids.
Second Sino-Japanese War, Pacific Ocean Theater of World War II, South-East Asian Theater of
World War II, and South West Pacific Theatre of World War II
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Latter half of the 20th century
In the latter half of the 20th century, various vessels, notably aircraft carriers, nuclear
submarines, and Nuclear powered icebreakers, made use of Nuclear marine propulsion. Sonar
and radio augmented existing navigational technology.
Various blockades were set up in international action. The Egyptian set up blockades of the
Straits of Tiran prior to the 1956 Suez War and the 1967 Arab-Israeli War. The United States set
up a blockade of Cuba during the Cuban missile crisis in 1962. The Israelis set up a sea blockade
of the Gaza Strip since the outbreak of the Second Intifada (2000) and up to the present. The
Israeli blockades of some or all the shores of Lebanon at various times during the Lebanese Civil
War (1975–1990), the 1982 Lebanon War, and the --%1982-2000 South Lebanon conflict -
resumed
The image is a recently declassified map used by the U.S. Navy's Atlantic Fleet shows the
position of American and Soviet ships at the height of the crisis.
The Cuban Missile Crisis was a confrontation during the Cold War between the Government of
the United States, the Government of the Soviet Union, and the Government of Cuba. After the
U.S. started deploying 15 Jupiter IRBM near İzmir, Turkey, U.S. reconnaissance imagery
revealed similar installations being installed in Cuba, as a response to the American threat. The
event coincided with the Sino-Indian War, which began on the same date that the US declared its
blockade on Cuba. Historians speculate the Chinese attack on disputed territory in India was
timed to occur at the same time as the Cuban Missile Crisis. On October 22, the Organization of
American States unanimously supported the decision to quarantine Cuba and, by the end of the
day, 180 U.S. Navy ships were prepared for the blockade. Nikita Khrushchev claimed that the
blockade was illegal, and ordered ships to bypass the quarantine.
The blockade went into effect at 10 a.m. on October 24. At the time, nineteen ships were en-
route to Cuba from the Soviet Union. Sixteen of these were clearly identified as reversing course,
and only the tanker Bucharest continued towards the U.S. lines. The other two, the Gagarin and
Komiles were later discovered only a few miles from the U.S. lines, and that they were being
escorted by a Soviet submarine positioned between the two ships. TheUSS Essex was instructed
to block the progress of the submarine, including the use of "small explosives" if need be. At
17
10:25 a.m. John McCone received an intelligence message and announced that the ships had
gone dead in the water. Dean Rusk leaned over to McGeorge Bundy and noted "We're eyeball to
eyeball, and I think the other fellow just blinked." After secret negotiations and after much
deliberation between the Soviet Union and Kennedy's cabinet, Kennedy agreed to remove all
missiles set in place on the border of the Soviet Union because of NATO in exchange for
Photograph taken from the USS Maddox August 2, 1964 showing North Vietnamese patrol
boats.
The Gulf of Tonkin Incident was an alleged pair of attacks by naval forces of the Democratic
Republic of Vietnam (commonly referred to as North Vietnam) against two American
destroyers, the USS Maddox and the USS Turner Joy. The attacks were alleged to have occurred
on 2 August and 4 August 1964 in the Gulf of Tonkin. Later research, including a report released
in 2005 by the National Security Agency, indicated that the second attack most likely did not
occur, but also attempted to dispel the long-standing assumption that members of the
administration of President Lyndon B. Johnson had knowingly lied about the nature of the
incident.[43] The outcome of the incident was the passage by Congress of the Southeast Asia
Resolution (better known as the Gulf of Tonkin Resolution), which granted Johnson the authority
to assist any Southeast Asian country whose government was considered to be jeopardized by
"communist aggression". The resolution served as Johnson's legal justification for escalating
American involvement in the Vietnam War.
Falklands War
The Falklands War was fought in 1982 between Argentina and the United Kingdom over the
disputed Falkland Islands, South Georgia and the South Sandwich Islands. Britain was initially
taken by surprise by the Argentine attack on the South Atlantic islands, but launched a naval task
force to engage the Argentine Navy and Air Force, and retake the islands by amphibious assault.
The British eventually prevailed and the islands remained under British control.
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Panama canal handover
Though controversial within the United States, a process of handing the Panama canal lead to
Panamanian control of the Panama Canal Zone by the Panama Canal Authority (ACP). It was
effective at noon on December 31, 1999. Before this handover, the government of Panama held
an international bid to negotiate a 25-year contract for operation of the Canal's container shipping
ports (chiefly two facilities at the Atlantic and Pacific outlets), which was won by the Chinese
firm Hutchison Whampoa, a Hong Kong-based shipping concern whose owner Li Ka Shing is
the wealthiest man in Asia. One of the conditions on the handover to the Panama Canal
Authority by the United States was the permanent neutrality of the Canal and the explicit
statements that allowed the United States to come back at any time.
21st century
Since the turn of the millennium, the construction of stealth ships have occurred. These are ships
which employs stealth technology construction techniques in an effort to ensure that it is harder
to detect by one or more of radar, visual, sonar, and infrared methods. These techniques borrow
from stealth aircraft technology, although some aspects such as wake reduction are unique to
stealth ships' design.
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CHAPTER-2
RESEARCH METHODOLOGY
PRIMARY SOURCE: Primary data means first hand information. I have meet business head
of the ARR MARITIME SHIPPING COMPANY and able to get first hand information
regarding services ,mission vision function, and future plans of company.
I have also collected primary data through taking interview of business head and questionnaire
which I have collected through employee survey.
INTERVIEW METHOD: In interview method analyst collect information from the employees or
managers and record data in a systematic manner.
SECONDARY SOURCE: These Secondary sources has played a vital role. A good amount of
data has been collected from various books, and pamphlets of shipping company.A vital role has
been played by the internet and companies own websites.
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OBJECTIVE OF THE STUDY
Primary objective
• To find and analyse the potential market for starting container freight station services in
Mumbai city.
Secondary objectives
• To find the market share of the existing container freight stations in Mumbai.
• To study the importance level associated by the users of the various features of container
freight stations.
• To analyse the satisfaction level associated with the usage of ARR Maritime container
freight station
• To identify methods that would prompt the users to move more containers to the
container freight station.
21
CHAPTER-3
CONCEPTUAL FRAMEWORK.
The increased growth of containersation lead to the congestion of ports which in turn lead to
damages and difficulties in handling containers effectively. In order to avoid this container
freight stations (CFS)/inland container depots (ICD) were set up. These container freight stations
also referred as dry ports reduced the congestion of ports and also attracted more container
traffic. Container freight stations can be referred as a place where contanerised shipments are
stuffed/stripped, segregated, stored and made available to importers/exporters.
In India, the concept of container freight station was envisaged initially by the Indian
Railways. In 1989 Concor(container corporation of India) began operating the ICD’S established
earlier by Indian Railways. Before liberalisation the CFS and ICD in India were owned only by
public sector undertakings like Concor, Central Warehousing Corporation (CWC), Punjab State
Container and Warehousing Corporation (Conware), Balmer Lawrie and others. Liberalisation of
the Indian economy has paved the path for privately controlled CFS and ICD’s. Major shipping
companies, transport and stevedoring companies, shipping agents are entering into the sector by
owning and managing CFS and ICD networks. Both global shipping majors Maersk-Sealand and
P&O have set up their CFS in India. Foreign logistics and warehousing companies also have
entered into the field by starting joint ventures with Indian partners. Competition in the industry
has intensified during the last couple of years owing to the liberalisation policy. Market leaders
like Concor and CWC, who were enjoying the advantage of an oligopolistic market situation, are
presently facing serious competition from private operators both in CFS and ICD operations.
The first private container freight station in India was started by SANCOTRANS Ltd. in
Chennai. After this lot of container freight stations have come up in India. In Chennai alone there
22
are thirteen container freight stations of which five are government stations and the rest are
privately owned.
A CFS/ICD can be defined as “a common user facility with public authority status
equipped with fixed installations and offering services for handling and temporary storage of
import/export laden and empty containers carried under customs control and with Customs and
other agencies competent to clear goods for home use, warehousing, temporary admissions, re-
export, temporary storage for onward transit and outright export”. Transshipment of cargo can
also take place from such stations.
The CFS in general can be divided in to four major areas depending on the activities
which take place in them. They are as follows:
• Siding Area
The place where container trains are received dispatched and handled in a terminal. Similiarly
the containers are loaded on and unloaded from rail wagons/trailers at the siding through
overhead cranes and / or other lifting equipments.
• Container Yard
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Container yard occupies the largest area in the ICD/CFS. It is stacking area were the export
containers are aggregated prior to dispatch to port, import containers are stored till Customs
clearance and where empties await onward movement. Likewise, some stacking areas are
earmarked for keeping special containers such as refrigerated, hazardous, overweight etc.
• Warehouse/Operational Area
The gate complex regulates the entry and exists of road vehicles carrying cargo and containers
through the terminal. It is place where documentation, security and container inspection
procedures are undertaken.
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Functions of CFS:
The CFS’s can serve a variety of purpose depending on the facilities available in them. The
major functions of a container freight station can be listed as follows,
• Custom clearance
25
MAJOR BENEFITS OF CFS:
Container freight stations have proved to be extremely useful in handling the container
revolution. The major uses of container freight stations can be summed up as follows,
• Safety of cargo.
• Optimal use of road and rail transport and better utilisation of capacity
• Issuance through bill of lading by shipping lines, hereby resuming full liability
of shipments.
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SERVICES OFFERED:
· container stuffing/destuffing
· container trucking
27
COMPETITORS OF ARR MARITIME PVT LTD:
The major competitors of ARR Maritime are the various other CFS’s in the city. There
are in total 13 CFS’s in Chennai. They can be divided in to government and private CFS’s.
Government CFS:
· CWC VIRUGAMBAKKAM
· CWC ROYAPURAM
· CWC MADHAVARAM
PRIVATE CFS:
6. VIKING CFS
7. BINNY CFS
8. INDEV CFS
9. SATTVA CFS
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PRODUCT PROFILE:
ARR Maritime Pvt Ltd has a 30,000 sq m container freight station cum warehouse
which is facilitated with modern material handling equipment and an up-to-date computerised
Warehouse Management System. With the advance facilities, the container freight station cum
warehouse is geared to serve its clients with value in terms of safe cargo handling, cargo security
and formation support. A comprehensive range of value added services such as Consolidation
and deconsolidation of containerized cargo, packaging, sorting, labeling, rebagging, palletisation
and stretch wrapping services is also available.
Services available:
· Container depot operations
· Container trucking
· Container stuffing/destuffing
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CONTAINER DEPOT OPERATIONS:
The 40,000 sq m container depot has a storage capacity of 3,000 TEU’s. Equipped with
modern facilities including a computerized depot management system and well-trained
personnel, the depot provides reliable and quality services to its clients. The services offered by
the depot include empty container handling and storage.
CONTAINER TRUCKING
Container trucking operations are also provided in order to serve the clients better. This
service involves providing trailer/lorry facilities to carry containers from the port to the container
freight station and vise versa. They also involve providing of trailers/lorry to carry the import
containers to the importers premises for factory destuffing.
Container stuffing and destuffing operations can be arranged within the CFS for exports
and imports respectively. The CFS has heavy duty fork lifts for this operation which have a
capacity of three tons. Out of the seven forklifts available three are high mast forklifts. Stuffing
and destuffing can be arranged for both L.C.L and F.C.L. containers.
30
CONTAINER REPAIR AND REFURBUISHMENT
Container repair and refurbishment services are available within the CFS. This service
involves the repair of used and empty containers which can be done on the request of the
respected liners. Repairs can be done for all types of containers including reefer containers.
The CFS has an open bonding area of 2, 50,000 lakhs sq .ft. and a closed bonding space
of 55,000 sq. ft. Bonding can be done by the clients in case they don’t need the entire import
consignment at the same time. Bonding allows them to remove the goods at whatever time they
need it in full or part of form. The warehousing of dutiable goods in a customs declared area on
execution of a bond without payment of duty for a stipulated or required period is known as
bonding of imported goods
31
THIRD PARTY LOGISTICS:
Third party logistics such as container survey and inspection, custom inspection of
stuffed and destuffed goods, survey of stuffing and destuffing etc. can be arranged at demand of
the clients.
These are the various services that are available at the CFS. The CFS has plans for
expanding and building new platforms and sheds to meet with the ever increasing demand.
• Container stacking capacity of 3000 TEUs stacked three high on a well paved platform
• premium cargo handling equipment , covered elevated platforms with dock levelers
32
Human resources
All services from ARR Maritime Pvt Ltd. are of top quality and cost effective .They utilize
advanced technology and a team of experts.
33
SUPPLY CHAIN:
Cranfield University’s definition of the Supply Chain is “the network of organisations involved,
through upstream and downstream linkages, in the different processes and activities that produce
value in the form of products and services in the hands of the ultimate customer”.
Supply chains, especially in international defence and aerospace industries remain tentative as
geo-political events, government response and stringent corporate governance take their toll on
thefree movement of goods.
Strategic Shipping has taken three separate but linked approaches to this problem:
• First, we try hard to understand extensively the demands of all other organisations in the
chain.
• Secondly, we ensure that within our own sector we have exceptional facilities, knowledge
and ability. Strategic staff are fully trained which means they are confident of the service
we offer. This results in employee longevity and ensures contact continuity for our
customers. Personal communication is available 24/7.
• Thirdly, we analyse the supply chain making contingency plans and applying damage
limitation to areas or events beyond our control.
Combined, we believe that these approaches enable us to support steady state transactions and be
prepared for all supply chain eventualities.
34
CHALLENGES AND OPPORTUNITIES FOR INDIA’S SHIPPING
INDUSTRY:
The Indian shipping sector is undergoing a major transition from its traditional form in order to
grab lucrative business opportunities
The shipping sector plays an important role in India’s economy. Almost 90% of the country’s
trade by volume is conducted via sea and the country boasts of having the largest merchant
shipping fleet among the developing nations. The Indian shipping industry not only transports
national and international cargoes, but also provides various other facilities such as ship building,
ship repairing, lighthouse facilities, freight forwarding etc.
With globalisation and liberalisation, the Indian shipping industry is all set to acquire new
dimensions in terms of demand and infrastructural development. In order to resist stiff
competition posed by foreign companies, the Indian shipping companies are striving to bring
about rapid transformation. The way cargo traffic was handled has changed over the years.
Earlier it was under a protected environment where a tonnage committee decided as to what
type and size of ships the companies should opt for. Cargo was assured for those vessels which
were acquired through government subsidy
Crude petroleum products constitute a major chunk of India’s sea-borne cargo. Deregulation
in the oil sector has been welcome news for the shipping companies as crude oil carriers do not
have to deal with fixed freight rates irrespective of the market condition. However, there is
another problem which has to be dealt with. Imports have decreased over the years because of
higher production by the domestic refineries, which has reduced transportation. The government
plans to introduce pipeline networks will seriously affect coastal transportation.
35
New avenues to be explored by the shipping industry
Meanwhile, there are opportunities that need to be grabbed by the shipping companies.
Liquefied natural gas (LNG) is to be imported to harness India’s power and fertiliser projects.
This plan involves huge volume of business for the shipping industry amounting to several
billion dollars. However, this process is expensive because it costs US$200 million for one ship
to carry LNG. Therefore, it is important for the Indian shipping companies to build strategic tie-
ups with their foreign counterparts so that they do not miss out this business opportunity.
The state-owned Shipping Corporation of India (SCI) has joined hands with Mitusi Osaka
Shosen Kaisha (OSK), a consortium in Japan, to build LNG vessel to serve India’s needs. Even
the private companies have shown interest in LNG transportation. Although the Indian shipping
companies are interested in LNG transportation, lack of adequate experience and the huge
amount of money required for LNG carriers act as major hindrances.
However, certain core problems must be dealt with before the Indian shipping industry can scale
new heights. Port congestion and lack of depth in channels are some of the problems plaguing
the shipping industry. Recently, these two problems have plagued the Kolkata Port Trust’s
Haldia dock, resulting in huge loss of business.
The Indian Shipping Summit 2009 that will be held in Mumbai, from October 20-22, 2009 will
focus on certain core issues related to shipping industry such as the manner in which the shipping
industry in India has handled the financial crisis, the present state of Indian ship building and
whether India has the capability to become the leading ship building nation in the world.
36
INSURANCE:
Marine
PRODUCTS:
• Cargo
• Project Cargo
ACE draws upon skilled and experienced underwriters to create bespoke solutions to a
wide variety of shipping needs.
With marine underwriters in 35 countries we can match the global spread of our clients and meet
their needs locally.
Our Cargo product is supported by a fully integrated in-house risk management team of
specialist surveyors and loss control advisers together with an expert team of claims adjusters.
We can provide an internet based system of issuing and recording marine Certificates of
Insurance in response to the business needs of our customers.
• Power stations
• Petrochemical plants
The insurance of transits for major construction projects is a key area of specialism for ACE and
we are widely regarded as a market leading underwriter in this field. In addition to our core cargo
product we can provide cover for Fine Art and other high valued interests both in transit, storage
and on exhibition.
37
ACE offers specialist marine coverage, generally through our London Market operation, for
marine hull, hull war and liability risks. Vessel types range from large cruise vessels and ocean
going commercial vessels through to high valued pleasure craft, luxury and mega yachts.
Claims
ACE offers clients a responsive marine claims handling and recovery service. Whether a client is
a small importer/exporter or a large multinational organisation the intricacies of marine and trade
law and legislation require expert handling and resolution.
Claims Services
ACE has built a market-leading multinational claims handling service based on the principles
of expertise, experience and efficiency. Our highly trained specialist staff focus on prompt and
fair resolution of claims, always with the best interests of our client in mind.
A joined-up approach is the key to delivering the best service to clients at every stage of risk, so
our claims experts work closely with our underwriters and engineers worldwide.
A complex tailored insurance package will always require a bespoke claims plan and response.
38
The outcome of many claims, especially those involving liability, often depend on actions made
as soon as the loss occurs. ACE experts have the experience and resources to act without delay to
coordinate the response whilst keeping the client and broker fully informed throughout.
• Container ships (or 'box ships') carry their cargo packed into standard 20' or 40'
containers that are stacked both on and below deck. Smaller 'feeder' ships carry
containers on coastal and inland waters.
• Roll-on/roll-off (ro-ro) vessels carry both road haulage and passenger vehicles. For more
information about road haulage, see our guide on 123%%moving goods by road.
• Liner vessels operate on fixed routes, to fixed schedules and usually with a standard
tariff. Liner trades are dominated by container ships, roll-on/roll-off carriers and general
cargo ships.
• Charter ('tramp') vessels operate entirely according to the demands of the person
chartering them. Their ports of loading and discharge are set by the charter, as is their
cost, which depends on immediate supply and demand conditions. Most tankers and bulk
carriers operate in the charter markets.
39
• Because it was so much faster and organized to load-unload, the cost of loading freight
was reduced
• by more than 90%. Thus, the cost of products you sell or buy were reduced greatly
because of the
• invention and standardization of the ISO shipping container.
•
In 1956, loose cargo cost $5.86 per ton to load. Using an ISO shipping container,
the cost was reduced to only .16 cents per ton.
•
• The shipping container invention of Malcolm Mc Lean has certainly changed the world
and thus, it has
• changed the lives of every human on the planet.
•
• There were many who had similar concepts previously but McLean was simply the guy
who really made
• the "standardized container" concept work globally.
40
The Strongest Box In the World
• The global transportation industry responded rapidly to this new invention of the
Shipping Container
• and the rest of the world also began to find more uses for this "super box", not just for
shipping. The
• new shipping container was so well designed that it can hold tons of cargo inside, and
also easily
• withstand the weight of 8 or 10 more fully loaded containers on the top of it. ISO
shipping containers
• are he strongest mobile or stationary modular structure in the world.
• So although Malcom Mc Lean invented and developed the first ISO Shipping Container,
it was the
• U.S. Military who pushed it's use to become standard in shipping and ship building. The
military was
• also were the first to officially create the ISBU for use as quick, strong military housing,
offices, power
• plants and instant set up medical facilities. ]
Shipping agencies are established to provide agency services to overseas principles. Their main
objective is to help shipping companies explore local and international markets and are willing to
assist in trade and market studies. Shipping agencies have excellent knowledge in general
container shipping, over dimensional cargo, heavy lifts, special equipment and break-bulk cargo.
41
The agents have a strong relationship within the industry with transport companies, port
authorities, customs department and other government bodies.
For organisations involved in international business, shipping companies and agents perform
services ranging from freight brokerage to door to door packages including packing, transport,
ocean documentation, ocean transportation, export documentation, exports and imports custom
clearance. Shipping agencies allow organisations the benefit of accessing freight packages at
competitive rates. Using the customs brokerage, shipping agents eliminate communications
problems between the customs broker and shipping company. Shipping companies also ensure
efficient co-ordination of transport bookings by having good communication between export
bookings and import customs department.
42
FEATURES FOR CUSTOMERS:
Reviewers say the following about mailing letters and packages with the major shipping
companies:
• Whenever possible, ship early. Ground delivery, especially Parcel Post and Media Mail
from the USPS, is much more affordable than air delivery. When a shipment is local,
these services are often as fast as any others.
• Pack items yourself. You'll pay a hefty premium to have your items packed for you. If
you need to ship something breakable, it might be worth paying shipper to do this if they
include a guarantee against damage.
• Compare prices. You can check prices at each of the companies' websites or use a price-
comparison website, such as ShippingSidekick.com, for estimated prices.
• All of the companies lose and damage packages at the same rate. We didn't find any
evidence that a particular company is better or worse when it comes to lost or damaged
packages.
Consider setting up an account if you ship a lot. All of the major companies offer discounted
rates for high-volume shippers with an account.
43
Holiday Season Features
The handy galvanized bucket holds a bottle of Sorenson Cellers Viognier and a bottle of
Christina James Pinot Noir. A subtly refreshing Seagrass Candles Heirloom Tomato scented soy
candle and a relaxing lavender sachet from Sequim Lavender Company will be enjoyed all
through the busy holiday season.
The seasonally-embellished basket contains Pacific Crest Foraging Wild Mix Dried Mushrooms,
Sunrise Coffee, Wild Sage Tea, New Day Fisheries Kimmel’s brand Alder Smoked Premium
Albacore Tuna, Cape Cleare Albacore Tuna, Morganics Strawberry-Rhubarb Jam, and In-Season
Catering Lemon Honey Jelly. Happy Holidays!!!
44
Beer Lover's Snack Set
Your favorite beer lover will enjoy this crunchy and savory snack combo that's paired with
some tasty suds!
Handcrafted cedarwood crate contains Port Townsend Brewing Company's Reel Amber and
Peeping Peater Scotch Ale (22 oz. ea.), two packs of Olympic Coast Seafoods Wild Salmon
Jerky, and CB's Nuts Almonds With Sea Salt (7 oz.).
22 oz. each of Chet's Gold Golden Ale, Reel Amber, Peeping Peater Scotch Ale, and Hop
Diggity IPA.Thoughtfully combined with one each of their pint and 3 oz. Tasting glasses.
Cheers!
A basket of abundance filled with local, artisinal sauces and seasonings. This collection is a great
way to say "thank-you" or to congratulate new homeowners or newlyweds.
An attractive wood and metal tray holds Palouse Red Sweet Red Bell Pepper Sauce, Cornet Bay
Worcestershire Sauce, Ginger-Sesame Marinade, and All-Purpose Marinade, Silverwater Cafe's
Secret Spice, Purple Haze Farm Lavender & Recipe Packet, Herbs de Provence Mustard and
Lemon Lavender Pepper, and Some Like It Hot Alder Smoked Assorted Chiles and Jalapeno
Spices.
45
WINTER DELIGHTS:
Seafood Sampler Christmas Mini-Crate
What a catch! Just as exciting as the larger crate but for the smaller appetite!
Here's a great way to turn a cold and stormy day into a treat!
This basket is stuffed with hott and spicy goodies to add fire and flavor to all of your favorite
foods!
This basket brings the HEAT for Christmas - in very interesting and unusual ways!
This basket is packed with hott and spicy goodies to add fire and flavor to all of your favorite
foods!
A collection of delicious, organic hard Washington ciders from Alpenfire Cider. This basket
contains a selection of 3 of Alpenfire’s best sellers. When you want to buy cider, we want to
make it easy!
46
The basket will contain one 750 ml bottle each of their Spark! Semi-Sweet Cider, Organic Ember
Bittersweet Cider and a 22 oz. bottle of Pirate’s Plank “Bone Dry Organic “Scrumpy style” Cider
(voted Northwest Brewing News “2010 Best Cider”).
A collection of delicious, hard Washington ciders: one bottle from each of the top 3 cideries on
the Olympic Peninsula. We have picked 3 bottles that represent the best that each cidery offers.
Our choices allow you to sample the range of what is happening with cider here on the
Peninsula.
Spring Specials
A wooden crate holds a sample of 4 fragrant, pastel-wrapped soaps from Townsend Bay Soap
Company. A pretty gift basket that lends a spa-like feel to any bath! Selection includes: Sea Mist,
Baby's First Bath, Gardener's Grits Lavender, and Townsend Bay Rum Soaps. (4 oz. each)
A basket full of culinary lavender treats that will let your recipient whip up a tasty tea party!
This sweet, reusable basket contains: Cedarbrook Farm's Cranberry Lavender Scone Mix (1 lb. 5
oz.) and Lavender Honey (55 ml), Purple Haze Lavender Farm's Lavender Sugar (6 oz.) and 1
oz. of Bell Bottom Breeze Tea, and a hand-thrown terra cotta mug from Huffman Pottery Studios
(12 oz. cap.).
47
Mother's Day
Gifts perfectly selected to please Mom on her special day.
A sweet group of nautical themed gifts hand-picked for your special Marine Maid (or
Maiden)!
Sailboats abound in this collection, which includes a Main Sail soy candle from Seagrass
Candles, a hand-thrown terra cotta coffee mug from Huffman Pottery Studios, and a cast bronze
earring and necklace set designed and created by Port Townsend silversmith Jo Beachy.
Necklace hangs from a 18” bronze cable chain with lobster clasp. (Earrings and Necklace both
available in cast silver. Call before purchasing.
The latest in the fabulous "Naked Pottery" series by the loveable Huffmans!
Hand-thrown by Darby. A lovely cup for cradling in your hands while enjoying your favorite cup
of wine with your favorite person.
The perfect presentation for the perfect gift! When giving diamonds (or maybe just a gift card)
wrap them in this.
Port Townsend artist Susan Hazard makes these images from her highly successful "Poppies"
series available exclusively to the friends of Mystery Bay Shipping Company. Great as a gift for
the first-time oil collector or to add as an accent to your own collection. Nothing says "You
matter to me!" quite so much as genuine, original, hand painted art.
3" x 3"; includes mini-tripod for surface display or can be hung on a wall.
48
Poppies mini painting #1 by Susan Hazard
Port Townsend artist Susan Hazard makes these images from her highly successful "Poppies"
series available exclusively to the friends of Mystery Bay Shipping Company. Great as a gift for
the first-time oil collector or to add as an accent to your own collection. Nothing says "You
matter to me!" quite so much as genuine, original, hand painted art.
3" x 3"; includes mini-tripod for surface display or can be hung on a wall.
Father's Day
Gifts perfectly suited for Father's Day giving. Do NOT contain socks or ties, guaranteed!
A reusable wood and metal tray holds a selection of products with the refreshing, clean scents
that men prefer.
Includes Seagrass’ Main Sail Candle, Townsend Bay Rum Shower Gel, Sea Mist Soap, and
Woods Of Washington Soap, Bunny’s Bath Mint Lip Balm, and notecard set featuring the
stunning Olympic Peninsula photography of Keith Lazelle.
The latest in the fabulous "Naked Pottery" series by the loveable Huffmans!
Hand-thrown by Darby. A lovely cup for cradling in your hands while enjoying your favorite cup
of wine with your favorite person.
Your favorite beer lover will enjoy this crunchy and savory snack combo that's paired with
some tasty suds!
Handcrafted cedarwood crate contains Port Townsend Brewing Company's Reel Amber and
Peeping Peater Scotch Ale (22 oz. ea.), two packs of Olympic Coast Seafoods Wild Salmon
Jerky, and CB's Nuts Almonds With Sea Salt (7 oz.).
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Port Townsend Brew Basket
22 oz. each of Chet's Gold Golden Ale, Reel Amber, Peeping Peater Scotch Ale, and Hop
Diggity IPA.Thoughtfully combined with one each of their pint and 3 oz. Tasting glasses.
Cheers!
While wood planks continue making their unequaled mark in the cooking world, wood wraps, or
papers, are bursting onto the food scene. If you are looking to enhance foods with a delicate
wood flavor and novel presentation, wraps will do just that. Wraps can accommodate entire
crowds of people seeking to create a smorgasbord of exciting meals, or singles desiring to
capture exquisite flavors in one, simple meal.
Guys appreciate spa goodies too! This thoughtful gift will encourage some much-deserved R&R.
A tastefully simple basket contains Townsend Bay Soap Company Rum Shower Gel, Bunny’s
Bath Men’s Shaving Soap and Soothing After Shave Lotion, Marrowstoned Incense Cones, and
photography book “Only In Port Townsend” by Victor Judd.
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CHAPTER 4:-
COMPANY PROFILE
ARR Maritime and Allied Services Pvt Ltd. have successfully launched the CFS project of
one of the major shipping Line at CWC Impex Park situated in Dronagiri Node, Navi Mumbai.
The project was conceived and taken to logical conclusion and is operational for the last 15
months and achieving results more then we projected in our business reported revenue streams.
Presently we are the management company for this CFS and handling the volume of 3000 Teus
per month.
Our mission is to provide a completely reliable and most cost effective services and solutions to
establish mutually beneficial and value based relationship with our partners in the field of
management of Container Freight Stations/Logistics Centers in India.
51
ABOUT MARITIME:
ARR Maritime and Allied Services Pvt Ltd. is leading CFS & logistics management
consultants and service providers to run, operate, manage and assist in various services based on
an outsourced model.
The people associated with the management of this company are thoroughly professional having
vast and varied experience of more then two decades as terminal operator, total logistics
providers, multimodal operator and CFS operators. They bring with them the knowledge and
know how that will truly help in attaining mutual business benefit in areas of common interest.
With above expertise we are able to offer various client based services for owners/operators of
CFS/ICD and Logistics centre in India.
Our objective is to promote and provide one-stop solutions suited to the needs of our partner
right from initial stages of survey/assessment of a project to preparation of business and
feasibility reports, planning and assisting in setting up of project, co-ordination with various
agencies, finalization of transport and other arrangements
52
SERVICES OF MARITIME:
The major costs can be saved by out sourcing the day-to-day jobs of managing the CFS/
Logistics Centre to competent agencies for reducing the staff costs, which are going up sharply.
The model developed by us suits the needs of a client looking for short to medium term
operations, where hiring of staff is also minimized. Also the day-to-day hassles of running the
terminal are also avoided and the principals can devote their time and energy to the core
commercial and marketing efforts.
53
Supervision of works related to project is also undertaken.
Considering our long experience in this field we are able to provide and
suggest professionals required to run and mange the CFS to our principles.
54
6. Day to day management of CFS/Logistics Centre
We are able to offer this service as outsourced jobs for the CFS
operators, which will enable them, reduce the manpower required and concentrate on core
activities and business development. On day-to-day operations we will be able to provide the
services as management agency for all the activities including import, export and custom bonded
business. Successful performance in all those services listed above will require area specific
activities to be undertaken with the help of experienced and efficient staff.
55
MISSION, VISION
Mission
To serve India's overseas and coastal seaborne trade as its primary flag carrier, and be an
important player in the field of global maritime transportation, as well as in diverse fields like
Offshore and other marine transport infrastructure.
Vision
• Establishing a major global presence in energy–related, dry bulk and niche container
shipping markets.
• Evolving suitable business models to exploit emerging opportunities in the offshore oil
sector, port/terminal management, logistics, etc.
56
OBJECTIVES:
Objectives
The Shipping corporation of India works to fulfil the its objectives as mentioned below:
• To provide its clientele safe, reliable, efficient and economic shipping services.
• To own or acquire through options like leasing, demise charter, joint ventures and other
innovative financial measures, an adequate fleet to cater to a significant portion of India's
overseas trade, particularly in items of strategic importance like crude oil and petroleum
products.
• To increasingly participate in India's offshore and other marine activities, and to continue
to explore opportunities for diversification to ensure overall and steady growth of the
Company.
• To initiate e-governance in the working of the Company at the earliest, covering areas
such as operations, tendering and purchase through the ‘SET-IT’ project, i.e. SCI’s
Enterprise Transformation through Information Technology.
57
NEED FOR THE STUDY:
Liberalisation of the Indian economy has paved the path for privately controlled container
freight stations and inland container depots. Major shipping companies, transport and
stevedoring companies, shipping agents etc. are entering into the sector by owning and managing
CFS and ICD networks. Foreign logistics and warehousing companies also have entered into the
field by starting joint ventures with Indian partners. Competition in the industry has intensified
during the last couple of years owing to the liberalisation policy. The market has become
extremely competitive due to the entry of many players in this sector.
In Chennai the market is still in the initial stages of development. With efforts on to
convert Chennai into a hub port and with the development of Ennore port Chennai is bound to
attract more and more container traffic. In order to get maximum benefit from this situation one
requires to have a proper market strategy to stay alive in the competition.
With this view point the company wanted the researcher to analyse the logistics market
and to find the future potential for starting new container freight station services and for
expansion of their existing container freight station.
58
GENERAL INTRODUCTIONS:
Containerisation - an insight
Containerzation is a term which is very familiar to present day shipping. But a few decades
a go it was completely unknown. The idea of containerisation was first conceived by Malcom
McLean , owner of a huge trucking company in USA. He transported containers through the
vessel Ideal - x in the year 1956 and initiated a revolution in the history of shipping industry.
Over the years containerisation has developed enormously and has created a separate identity
within the shipping world.
The growth of containerisation in India has been slow and steady. The formation of
Container Corporation of India (Concor) as an autonomous body under the Ministry of Railways
in 1988 boosted the efforts at increasing containerised traffic in the country. Over the years,
volume of container traffic has experienced continuous growth and crossed the 2.0 million mark.
In 1997-98, Indian ports handled container traffic of 2.1 million TEU's. In 1999-2000 it
increased to 2.22 million TEU’S, and this has increased constantly. In the recent times the
container traffic per year has crossed the 2.5 million mark and is still increasing.
Of the 11 major ports of the country, Jawaharlal Nehru Port (JNP) and Mumbai Port have
established as the gateway ports for container traffic to India. Lack of adequate infrastructure in
form of container handling equipment, CFS network and rail network in other ports have led to
concentration of container traffic at Mumbai and JNP. But the situation is changing and ports are
getting privatized or are rebuilding their infrastructures to deal with the increased containerised
traffic.
Chennai port has privatised its container terminal and selected an efficient port
management company called p & o Ned Lloyd in order to keep in pace with the rising trend of
containerisation of cargo. On the privatisation front, chennai Port has handed over one berth
J.D.V. in Jawahar Dock (JD) to P & O Ned Lloyd with a view to attract more traffic and to get a
59
guaranteed traffic volume. In 2001-02, the Port handled 3.5 lakh TEU's of containers. During the
current financial year 2002-03, the Port has already handled 2.6 lakh TEU's of containers.
Chennai Port has been identified for development as a Hub Port on the East coast of India.
Chennai Port aims to improve the performance and productivity levels of the container terminal
and bring it on par with leading international container ports through modernisation and
upgradation.
It has been observed that container shipping would be the most imperative choice for
movement of cargo in the coming years. Following the global trend, Indian ports are also geared
up to take the role of a hub port by developing necessary infrastructure to attract large size
mother vessels. Taking the advantage of long coastline of India, Concor is contemplating to start
coastal movement of container vessels. Looking at the overall aspect of the industry, it can be
concluded that future of containerization would be bright enough in India.
60
Warehousing – a new dimension
Warehousing has been a very ancient concept. It has existed since ancient times.
Previously warehouses were generally used to store inventory in the form of break bulk and bulk
cargo. But in the recent past after the invent of containerization the whole concept of
warehousing has changed. The development of contanerisation in such a rapid pace and lack of
availability of space in shipping ports has changed the conventional method of warehousing.
The present day warehousing has to deal with container related activities as break bulk
and bulk cargo are almost becoming non existent as compared to contanerised cargo. This
scenario has given rise to modern day warehouses called ‘container freight stations’ or CFS and
‘inland container depots’ or ICD.
These container freight stations/ inland container depots are warehouses with all the
modern facilities for handling containerised cargo. They consist of heavy equipments like
forklifts, cranes, reach stackers, straddle carriers, trailers etc. which can be used for stuffing,
destuffing, stacking, storing and carrying containers. They also consist of transit sheds, cold
storage and bonded warehouses for storing, bonding and segregation of destuffed FCL and LCL
cargo. In addition to this container freight stations even contain facilities for storage, repair and
maintenance of empty containers. With more and more goods getting containerised and with the
use of special containers like reefer, flat rack and open top increasing the modern day container
freight stations should have facilities like reefer points special over head cranes, heavy duty
cranes etc. to handle them.
61
CHAPTER-5
INTERVIEW:
1. Name of the company : ARR MARITIME & ALLIED SERVICES PVT LTD
ANS : 5 years
ANS: Yes
e) others
8. Do you use a Container freight station (CFS) for your containerised shipments ?
ANS : Yes
62
9. Approximately how many containers in TEU's do you move to the Container freight
station for handling ? E
c) Destuffing containers
11. Name the container freight stations that you generally use / prefer to use ?
\12. From the following factors indicate the factors that you consider important while
selecting a CFS and rate them on a scale of 1 to 5?
13. What are the additional facilities that you look forward to from a CFS ?
63
14. Indicate the level of importance you associate with the following attributes of a
container freight station
Location of
YES
CFS
Equipment
& manpower YES
available
Service
quality &
YES
promptness
Tariff rates
YES
of CFS
Area/space
available at YES
CFS
64
15. Do you change container freight stations according to your needs ?
ANS: Yes
16. Indicate the reasons why you change a container freight station ?
ANS: Yes
ANS : Yes
65
19. Indicate your satisfaction level regarding the following attributes of our services.
Equipment &
manpower YES
available
Service delivery
YES
Facilities &
incentives YES
provided
20. How much increase in your containerised volume are you expecting in the near
future ?
66
21. Indicate the reasons that will prompt you to move more containers to the CFS in
the future ?
22. Please give suggestions to improve container freight station services in general.
67
QUESTIONNAIRES:
Sr. no %
1. 20-30 10
2. 30-40 40
3. 40-50 35
4. 50 & Above 15
GRAPH:
percentage
100
90
80
70
60
50 percentage
40
40 35
30
20 15
10
10
0
20-30 30-40 40-50 50 & above
INTERPRETATION: According to above graph age categories of employee working in the company
are 10% are under the age of 20-30, 40% are under the age of 30-40,35% are under the age of 40-50,
15% employee are above the age of 50.
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2.Your company provide 60 as retirement age are you satisfied?
Sr. no %
1. Yes 75
2. No 25
GRAPH:
percentage
100
90
80 75
70
60
50
percentage
40
30 25
20
10
0
YES NO
: INTERPRETATION: According to above graph 75% are satisfied and 25% are not satisfied with the
retirement age.
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3.What is your family size?
Sr. no %
1. Three-Five 45
2. Five-Seven 15
3. Seven-Nine 25
4. Nine & Above. 15
GRAPH:
percentage
100
90
80
70
60
50 45
percentage
40
30 25
20 15 15
10
0
Three-Five Five-Seven Seven-Nine Nine & above
INTERPRETATION: According to above graph 45% employee under 3-5 members in there family, 15%
employee under 5-7, 25% employees are under 7-9 family members, and 15% have 9 and above members
in their family.according to survey large no. of employee have small family size.
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4. Are you satisfied with your overall relationship with your supervisor ?
Sr. no %
1 Vary satisfied 40
2 Somewhat satisfied 35
3 Somewhat dissatisfied 10
4 Vary dissatisfied. 15
PIE DIAGRAM:
level of relationship
15
10 40 Vary satisfied
some what satisfied
some what dissatisfied
Vary dissatisfied
35
INTERPRETATION:: According to above graph 40% employees are very satisfied, 35% are satisfied
10% are somewhat satisfied with with overall relationship with supervisor and 15% are vary dissatisfied.
According to my survey there is need for improve overall relationship of employee and supervisor.
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5. Are you get equal opportunity to work on interesting projects?
Sr. no %
1. Yes 65
2. No 35
PIE DIAGRAM:
Opportunity
35
YES
65 NO
INTERPRETATION:: According to above diagram 65% employees say that they get equal opportunity
and 35% of employee say that “NO” they don’t get equal opportunity.
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6. Does the company follow fair promotion schemes?
Sr. no %
1. Yes 65
2. No 35
PIE DIAGRAM:
PROMOTION
35
YES
65 NO
INTERPRETATION: According to above pie diagram 65% employees are happy with the promotion
schemes and 35% are not satisfied with promotion policy.
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7.How was your overall satisfaction with your company?
Sr. no %
1. Vary satisfied 38
2. Somewhat satisfied 40
3. Somewhat dissatisfied 10
4. Vary dissatisfied 12
PIE DIAGRAM:
Overall satisfaction
12
10
38 Vary satisfied
Somewhat satisfied
Somewhat dissatisfied
Vary dissatisfied
40
INTERPRETATION: According to above diagram 38% employees are very satisfied, 40% are somewhat
satisfied 10% are somewhat dissatisfied with overall satisfaction with the company and 12% are vary
dissatisfied.
According to my survey there is need for improve overall performance of company to satisfied
employees.
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8. Overall, how satisfied are you with your job?
Sr. no %
1. Highly satisfied 45
2. Satisfied 45
3. Dissatisfied 10
GRAPH:
percentage
100
90
80
70
60
50 45 45
percentage
40
30
20
10
10
0
Highly satisfied Satisfied Dissatisfied
INTERPRETATION: The above graph shows that 45% employees are highly satisfied, 45% are
satisfied, whereas 10% employee are dissatisfied with the job performance.
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9. Communication with your supervisor ?Are you satisfied?
Sr. no %
1. Vary satisfied 45
2. Satisfied 30
3. Somewhat dissatisfied 20
4. Vary dissatisfied. 10
GRAPH:
percentage
100
90
80
70
60
50 45
percentage
40
30
30
20
20
10
10
0
Vary satisfied Satisfied Some what vary dissatisfied
dissatisfied
INTERPRETATION: According to above graph 45% employees are very satisfied, 30% are satisfied
20% are somewhat dissatisfied with overall communication with supervisor and 10% are vary
dissatisfied.
According to my survey there is need to improve overall communication with supervisor in the company.
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10. What type of working facility provided by the company?
Sr. no %
1. Excellent 10
2. Very good 20
3. Good 50
4. Poor. 20
PIE DIAGRAM:
working facility
10
20
20 Excellent
Very good
Good
Poor
50
INTERPRETATION: According to above diagram 10% employees say working facility excellent,
20% very good, 50% good 20% say that facility is poor.
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APPENDICES:
4.Are you satisfied with your overall relationship with your supervisor ?
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SUGGESTION:
There is need to introduce new and innovative way for introduce the equal and
fair promotion scheme.
The company should provide new and challenging project to motivate employees
and improve there performance.
The company should provide better non-monetary benefits to improve the morale
of the employee.
The company should offer attractive wages and salary to retain good employee.
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CONCLUSION:
I have conducted questionnaire on employee survey. And according to my survey
company provide good and better facility to their employee. Company provide
fair promotion schemes for their employee. Company provide 60 as retirement
age that employee are satisfied with that. According to my survey I found that in
company female are working less as compared to male.
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BIBLIOGRAPHY:
Pamphlets.
Magazines.
Export import policy- vipul prakashan.
WEBLIOGRAPHY:
www.google.com.
www.wikipedia.com.
www.ARR maritime.com
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