CHAPTER 1

INTRODUCTION

1.1 Company Profile

Chennai Port, the third oldest port among the 12 major ports, is an emerging hub
port in the East Coast of India. This gateway port for all cargo has completed 128 years
of glorious service to the nation’s maritime trade.

Maritime trade started way back in 1639 on the sea shore Chennai. It was an open
road -stead and exposed sandy coast till 1815. The initial piers were built in 1861, but the
storms of 1868 and 1872 made them inoperative. So an artificial harbour was built and
the operations were started in 1881.The cargo operations were carried out on the northern
pier, located on the northeastern side of Fort St. George in Chennai. In the first couple of
years the port registered traffic of 3 lakh tonnes of cargo handling 600 ships.

Being an artificial harbour, the port was vulnerable to the cyclones, accretion of
sand inside the basin due to underwater currents, which reduced the draft. Sir Francis
Spring a visionary skillfully drew a long-term plan to charter the course of the port in a
scientific manner, overcoming both man-made and natural challenges. The shifting of the
entrance of the port from eastern side to the North Eastern side protected the port to a
large extent from the natural vulnerabilities.

By the end of 1920 the port was equipped with a dock consisting of four berths in
the West Quays, one each in the East & South Quay along with the transit sheds,
warehouses and a marshalling yard to facilitate the transfer of cargo from land to sea and
vice versa. Additional berths were added with a berth at South Quay and another between
WQ2 & WQ3 in the forties.

India’s Independence saw the port gathering development, momentum. The

topography of the Port changed in 1964 when the Jawahar dock with capacity to berth 6

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vessels to handle Dry Bulk cargoes such as Coal, Iron ore, Fertilizer and non hazardous
liquid cargoes was carved out on the southern side.

In tune with the international maritime developments, the port developed the
Outer Harbour, named Bharathi Dock for handling Petroleum in 1972 and for
mechanized handling of Iron Ore in 1974. The Iron ore terminal is equipped with
Mechanized ore handling plant, one of the three such facility in the country, with a
capacity of handling 8 million tonnes. The Chennai port’s share of Iron ore export from
India is 12%. The dedicated facility for oil led to the development of oil refinery in the
hinterland. This oil terminal is capable of handling Suezmax vessels.

In 1983, the port heralded the country’s first dedicated container terminal facility
commissioned by the then prime minister Smt.Indira Gandhi on 18th December 1983.
The Port privatized this terminal and is operated by Chennai Container Terminal Private
Limited. Having the capability of handling fourth generation vessels, the terminal is
ranked in the top 100 container ports in the world. Witnessing a phenomenal growth in
container handling year after year the port is added with the Second Container Terminal
with a capacity to handle 1.5 M TEUs to meet the demand.

To cater to the latest generation of vessels and to exploit the steep increase in
containerized cargo the port is planning to welcome the future with a Mega Container
Terminal, capable of handling 5 Million TEUs expected to be operational from 2013.

The Chennai port is one among the major ports having Terminal Shunting Yard
and running their own Railway operations inside the harbour on the East Coast. The port
is having railway lines running up to 68 kms and handles 25% of the total volume of the
cargo, 4360 rakes (239412 wagons) during 2009-10.

The port with three Docks, 24 berths and draft ranging from 12m to 16.5m has
become a hub port for Containers, Cars and Project Cargo in the East Coast. The port has
handled an all time high of 61.06 Million tonnes of cargo registering an increase of 6.2%
over previous year. An increase of 10.14% in handling of cars from 273917 Units in the
year 2009-10 when compared with 248697 Units in the year 2008-09 and an increase of

2
6.39% in handling of containers from 1143373 TEUs in the year 2008-09 to 1216438
TEUs in the year 2009-10. The long term plan for Chennai Port envisages that the Port
will mainly handle 4C’s i.e. Containers, Cars, Cruise and Clean Cargo.

Port Details

Geographical Location

Latitude - 13° 06’ N

Longitude - 80° 18’ E
Climate - Tropical
Time - +5 Hrs. 30 Minutes
30°C Max.
Temperature -
18° C Min.
Annual Rainfall - About 125 Cms.
Spring Tides - 1.2 Metres

Water Area - 420.00 acres (169.97 hectares)

Land Area - 586.96 acres (237.54 hectares)

Navigation Channel

Entrance Channel

Soil - Predominantly sandy and silt

Length of Channel - About 7 kilometres
Depth of Inner Channel - 18.6m at chart datum

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Depth of Outer Channel - 19.2m at chart datum
Depth of Outer Channel - 19.2m at chart datum

Width of Channel - The width of channel gradually

increases from 244m to 410m at the
bent portion, then maintains a
constant width of 305m

Total Length of Breakwater

Inner Harbour

Eastern Breakwater - 1325 m

Northern Breakwater - 575 m

Outer Harbour

Eastern Breakwater - 590 m

Northern Breakwater - 460 m
Outer Arm - 1000 m
Upper Pitch Revetment - 950 m

Port Entrances

Entrance in Bharathi Dock - 350 m

Entrance in Dr. Ambedkar Dock - 125 m

Storage Facilities

Transit Shed/over flow shed - 7 Nos. - 30,693 sq.mts

Warehouse - 5 Nos. - 30,138 sq.mts
Container Freight Station - 3 Nos. - 40,644 sq.mts
Open space - 3,84,611 sq.mts
Container parking Yard - 2,50,600 sq.mts

Mission & Vision

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 MISSION
• Achieve excellence in Port operations with State-of-the-Art
technologies.
• Enhance competence and enthuse workforce to maximize
customer satisfaction.
• Anticipate and adapt to the changing global scenario.
• Act as a catalyst for sustained development of the Region.
VISION
• To be recognized as a futuristic Port with foresight.

QUALITY POLICY
• • Provide efficient, prompt, safe and timely services at optimum cost
• Ensure quick turn round of vessels by providing facilities for
•
efficient handling of cargo
• • Maintain total transparency in all our transaction of the and
• • Continually improve our services to meet the expectations of the
port users, employees and the society

Port History

The little fishing village called Chenna Patnam, which was founded in 1639,
became prominent during the early part of the 18th Century when the East India
Company was active on the East Coast. In the absence of the Harbour, the Company
ships were anchored about quarter mile offshore and the cargo to and from the ships were
transported through small lighters called Masula boats. As the loss of cargo while
transporting through Masula boats was high, it was proposed to build a pier to berth
larger crafts and an Iron screw pile pier was built in 1861 to a length of 1,100 ft.,
perpendicular to the shore during November 1881, due to violent cyclone over half a mile
of breakwater was breached and equipments and human lives lost. Though there was a
demand for relocating the entrance, the restoration was resumed in 1885.

5
 Port of Chennai until the year 1875, was simply an open roadstead on open sandy
coast swept by storms and occasional monsoons.

Sir Francis Spring, the then Chairman of Madras Port Trust in 1904 created a new
North-Eastern Entrance after closing the original Eastern Entrance to control the siltation
of the channel in front of the basin. Subsequently Quays were constructed at different
periods (i.e) South Quay-I in 1913, the five West Quay berths in 1916 to 1920, North
Quay in 1931 and South Quay II in 1936 in the Inner Harbour which was later,
christened as Dr. Ambedkar Dock.

The official inauguration of the wet dock was done on 6th November 1964 by
Shri. Lal Bahadur Shastri, the then Prime Minister of India. The dock was christened
Jawahar Dock in memory of Shri. Jawaharlal Nehru, India’s first Prime Minister.

The Bharathi Dock was originally constructed as an outer Harbour to handle

vessels upto (-)16.2 M draft. An Oil jetty to handle Crude Oil imported by the Manali Oil
Refinery (presently Chennai Petroleum Corporation Ltd) was constructed initially during
the year 1970. An Iron Ore berth was constructed in the same dock in 1974 for exporting
Iron Ore to Japan and other Far East countries. Subsequently one more oil jetty was
constructed during the year 1985 to meet the additional demand for crude/products

In 1970s the Madras Port Trust started handling containers in Inner Harbour and
as the container traffic was increasing, a Container Terminal of 380 M length was
constructed at Bharathi Dock during the year 1983 as a first full-fledged Container Hub
of the Country with Container Storage Yard of 51,000 sq.m and a Container Freight
Station of 6000 sq.m. area. The terminal was provided with two shore cranes and other
shore facilities required for Container Terminal.

Subsequently the terminal was further extended by 220 M during the year 1991
with additional two shore cranes and other matching infrastructural facilities. As the
container traffic was constantly increasing the terminal was further extended by 285 M,
during July 2002. This Container Terminal of 885 M total berth length with backup area
was privatized under concessional agreement with M/s. Chennai Container Terminal

6
Private Ltd., on BOT basis for 30 years from November 2001.Consequent to the
renaming of the city of Madras as Chennai with effect from 30.9.1996, the Madras Port
Trust has been renamed as Chennai Port Trust.

With the number of car manufacturing companies located around Chennai,

potential exists for large-scale car exports through pure car carriers (PCC) shipment. In
fact shippers have already started from July, 2000 onwards.

Facilities at Port

Oil Terminals (BD1 & BD3)

• Oil berth at Bharathi Dock-I commissioned in 1972 can handle tankers up to

100,000 DWT
• Another one commissioned in 1986 at Bharathi Dock-III can handle tankers up
to 140,000 DWT
• Maximum LOA of Tankers Berthed at BD - I & BD - III - 280.4m (920 ft).
• Minimum LOA of the ship so far Berthed at BD - I - 108.15m.
• Capacity - 13 Million Tonnes Per Annum
• Installed with 5 Marine Loading Arms at BD - I and 6 Marine Loading Arms at
BD - III. Berths laid with 762 mm (30") dia pipelines for conveying Crude, 500
mm (20") dia pipeline for conveying White Oil Product and 350 mm (14") dia
pipelines for conveying Furnace Oil.
• Separate Pipelines for Crude, Furnace Oil, White Oil Products, Deballasting,
Tower Monitor, Fire Hydrant and Fresh Water
• Service Lines for LDO Bunker, Furnace Oil Bunker and Lubricant Oil Bunker
• The facilities include pumping at the rate of 3000 Tonnes per hour for Crude oil
and 1000 Tonnes per hour for Petroleum Products.
• Provision of Oil reception facilities in accordance with MARPOL convention
for receiving oily ballast, sludge and slop.
• Both the jetties are equipped with fire monitors
• There is a separate fire fighting pump house with diesel and electrically driven
pumps to supply fire hydrant and tower monitors.

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Iron ORE Terminals (BD2 )

• • Mechanised Ore handling Plant commissioned in 1977 at Bharathi Dock-II

• Can handle Ore carriers of maximum size 1,45,000 DWT and LOA of 280.4
•
metres
• • Capacity - 8 Million Tonnes Per Annum
• • Loading rate - 6000 Tonnes per hour
• Capable of receiving, stockpiling, reclaiming, weighing, sampling and ship
•
loading
• Ore handling facilities consists of two rotary wagon tipplers, ten lines of
• conveyors, two rail-mounted stackers, two rail-mounted bucket-wheel
reclaimers and two rail-mounted shiploaders.
• Equipped with automatic belt weigher, sampling facilities, self-contained
•
maintenance workshop and a service station
• Separate receiving line and shipping line, which can also function as
•
interconnected system
• Availability of two control rooms for the automatic operation of various
•
equipment and conveyors.
• • Well connected rail lines
• • Back-up of 33 KV receiving sub-station
• • Ore Stock Yard - Capacity - 6 Lakh tones
• Rotary Wagon Tippler can handle 1200 MT/hr at the rate of 20 wagons per
•
hour
• Receiving Conveyors (4 Nos.) can handle 1500 MT/hr/stream of two
•
conveyors.
• Shipping Conveyors (6 Nos.) can handle 4000 MT/hr/stream of three
•
conveyors.
• • Rated capacity of Stackers - 1500 MT/hr each
• • Rated capacity of the Reclaimer - 3000 MT/hr each
• • Rated capacity of Shiploaders - 3000 MT/hr each

Container Terminal (CTB 1, CTB 2, CTB 3, CTB 4 )

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General Cargo Terminal

Berth No. Of Cranes Capacity

WEST QUAY1 1 10 T
WEST QUAY2 1 15 T
CENTER BERTH 1 15 T
WEST QUAY 3 1 15 T
WEST QUAY 4 1 15 T
SOUTH QUAY 1 2 10 T-1No. 50 T-1 No
SOUTH QUAY 2 -- --
SOUTH QUAY 3 -- --
JAWAHAR DOCK 1 1 10 T
JAWAHAR DOCK 3 3 10 T
JAWAHAR DOCK 5 (PRIVATISED BERTH) BRS BRS
JAWAHAR DOCK 4 & 6 -- --

Cargo Handling Equipment

Sl.No. Equipment Numbers Capacity

1 FLOATING CRANE 1 150 TONS
2 MOBILE CRANE 3 10 TONS.

3 LOW CAPACITY DIESEL FORK-LIFT 10 3 TONS

TRUCK
4 HIGH CAPACITY DIESEL FORK-LIFT 10 10 TONS - 3 Nos
TRUCK 15 TONS - 5
Nos.
2 TONS - 2 Nos.
5 PAYLOADER 2 3 TONS
6 DIESEL ELECTRIC LOCOMOTIVE 14 700HP - 12 Nos.
1400HP - 2 Nos.

Coal Conveyor (JD IV and JD VI)

Semi mechanized closed conveyor system for coal handling comprises of two
streams.
One stream commissioned on 07.02.2009.
Other stream erection work completed - Likely to be commissioned by end of July

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 2009.
Capacity - 15 million MT/annum
Handling rated capacity - 1500 MT/Hr/stream
Coal discharged into the Hoppers located at JD IV and JD VI is conveyed to coal
plots through conveyors/Tipper cars - Equipped with Belt Weigher.

Commercial Advantages

• Chennai Port is working round -the-clock, 7 days a week, to facilitate more export
& import through Port of Chennai.
• The Port also conducts PORT USERS MEETING periodically to ensure customer
satisfaction by maintaining effective service quality to augment exports.
• Private equipment are allowed in certain Operational areas to augment rate of
loading/discharging of dry bulk cargoes.
• 50% F.C. VAIGAI Heavy Lifting Cranage Charges need not be paid upto 15 tons
weight, if shipped by the vessels own cranes
• A rebate of 10% in wharfage on the quantity handled in excess of 10% over and
above the previous year's throughput by an individual importer/exporter subject to
a minimum handling of 50,000 MT per annum in the pervious year.
• Comprehensive stevedoring levy of 192% of actual wages for all types of cargoes
• C & F Levy for bulk cargoes, ore & timeber logs reduced to 3.75/MT
• C & F Levy will be collected through Import Applicaton when actual deployment
of labour for C & F operations are there
• The TERMINAL HANDLING CHARGES at Chennai Port’s Container Terminal
are quite competitive even when compared to the Terminal Handling Charges
collected at the Regional Ports viz. COLOMBO and SINGAPORE.
• For containers consigned to and from INLAND CONTAINER DEPOTS, the Port
allows 30 free days including SUNDAYS and Port’s HOLIDAYS and for ICD,
NEW DELHI it is free upto the date of loading on flats.
• TRANSHIPMENT CONTAINERS are allowed 30 free days.

Highlights

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 Chennai Port is a ISPS Compliant Port
Chennai Port Trust awarded with Certification of ISO 14001 : 2004
21 deep drafted berths
All weather port
Round the clock operations
Handling multiple cargo, Third position among all Major Ports
Best efficiency indicators
Pre berthing detention of 0.9 Hrs
Average turnover 2.4 Days
Berthing on arrival
Passenger terminal of international standard
First of its kind in Indian Ports, Chennai Port has established the Marine Pollution
Management to ensure Protection for Marine life
EDI connectivity with Customs, Bank, Online Port users Portal established and
various port activity under process.
Excellent Rail Connectivity
Excellent Road Connectivity

To facilitate export of iron ore through Chennai Port, Iron Ore Pellets & Lumps are being
allowed to be exported through Jawahar Dock.

Organization structure

Traffic department

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Major Ongoing Projects

Chennai-Ennore Port road connectivity project (formerly EMRIP) (on going

scheme)

• Current estimated cost - Rs.600 Crores

• Project road network covering 30.1 km.

o Ennore Expressway – 6.0 kms

o Thiruvotriyur Ponneri Pancheti Road – 9 Km.

o Manali Oil Refinery Road – 5.4 kms.

o Northern segment of Inner Ring Road – 8.1 Km.

o ChPT Fishing Harbour Road - 1.6 km

o Shore protection measures along the Ennore coast. (groin field comprising
13 groins of which 10 completed)

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 o R&R Structures for 1824 Project Affected Families to be allotted shortly.

• SPV comprising NHAI , ChPT, EPL and GOTN constituted for project execution.

• Current status

o Contract for shore protection work (10 Nos of Groins) have been
completed.

o Contract to be awarded shortly for TPP Road four laning, MOR road,
northern segment of Inner Ring Road, 1.6 Km stretch from Chennai Port
Gate No.1 to Ennore Expressway (inside Fishing Harbour) and 3
additional groins.

• Project completion by early 2012.

Development of a Ro-Ro Car Terminal

• Ro-Ro Berth (300 m. long , 30 m wide and 12 m. deep) at southern end of

Container Terminal (BD) by Port. Estimated cost : Rs.50 crores

• Multi-level car park over 10000 sq.m. of land and of capacity 5000 cars to be
constructed by BOT operator – Est Cost Rs.80 crores.

• Additional parking area (36000 sq,m.) to be developed at back-up areas of Timber

Pond and Boat Basin by dismantling unused structures.

• Project completion likely by end of 2012.

Chennai Mega Container Terminal

• Estimated Cost – Rs.3686 crores.

• Infrastructure to be developed north of existing Bharathi Dock

o Two new breakwaters (total length 4.5 Km.)

o Continuous quay length of 2 KM with 22 m. alongside depth (ultimate)

o Basin area 300 hectares and back up area 100 hectares.

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 • Can handle ultra large container ships of capacity over 15000 TEUs and length
400 m.

• Will be the first deep water terminal of its kind in India.

• Project Development proposed on BOT basis with cost of dredging, floating crafts
and navigational aids (Rs.561 cr) to be borne by Chennai Port. BOT operator will
invest on berth & breakwater construction, reclamation of backup area, handling
equipment and other landside infrastructure (Rs.3125 cr)

• Rated capacity 4 million TEUs per annum.

• RFQ offers opened in March, 09 and 9 offers were received. Short-listing of

applicants after receipt of security clearance from Govt. of India.

• Parallel action being taken up with Ministry for placing proposal before PPPAC.

• Project to become operational by 2015.

Integrated Dry Port & Multi-modal Logistics Hub near Sriperambudur SEZ

• Estimated Cost – only after allotment of land and finalization of proposal

• Proposed components – ICD / Off dock CFS, Container Yard, Rail & Road
connectivity to National Rail & Road network, Trade Centre, warehouses for
containerized cargos like leather garments, Textiles, Automotive components &
Electronic hardware.

• Discussions under way with GoTN for allotment of about 100 acres of land for
developing the facility.

• Off-dock CFS will have onsite Customs Clearance facility.

Off Dock facility at Tondiarpet Housing Colony

• Estimated Cost - Rs.8.00 crores.

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 • Development of facility with rail connectivity in an area of about 9 hectares after
dismantling old units.

• A railway link will be provided from Colony to Port .

• Proposal under finalization through M/s. RITES.

1.2 Objectives of the study

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Primary Objective

1. To study the traffic department role in Chennai Port Trust.

2. To analyze cargo handling performance in the Chennai Port Trust.
3. To find out the major problems and determine solutions to overcome the
problems.

Secondary Objectives

1. To determine the kinds and tonnages of commodities that move through the port
2. To study the overall logistics operations in the Chennai Port
3. To determine the factors that affects the logistics operations in the port.
4. To determine the future trend of Cargo traffic in the port.

1.3 Scope of the study

1. The study covers the overview of Chennai Port Trust and its operations.

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 2. Detailed analysis of shipping cargo traffic trends, growth drivers, technology
and innovation.
3. This report gives broad view of cargo wise traffic and future outlook of the
shipping industry.
4. The report describes the various modes of discharge of cargo in and out of the
port and the factors affecting the operations.
5. The study describes the need for improvements to be made in the
infrastructure to handle the growing trend of cargo.

1.4 Limitation of the study

1. The study is confined to Chennai Port.

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2. The study is based on secondary data which has its own disadvantages.
3. Lack of time availability to carry out the research.
4. The study is confined to the method of exploratory research.

CHAPTER 2

REVIEW OF LITERATURE

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 Traffic forecasting requires a combination of commercial, economic and the
mathematical techniques. Far more important is the need to bear constantly in mind the
very high degree of uncertainty in any forecast, and to take steps to minimize the risk
which this causes. Any forecast of future trade will be uncertain, and ports are
particularly vulnerable in view of their long planning time-scale and limited ability to
influence demand. All forecasts should be linked with the overall national development
plans. Furthermore, maritime trade is going through a period of rapid change which
critically affects the volumes and types of traffic likely to use any port. Errors in
forecasting can be serious, and the consequences of overestimating and underestimating
are not equal.
A traffic scenario is a consistent description of the whole of the future traffic
likely to come to the port and the way it will build up. It assumes that the port does
nothing to prevent the traffic arriving, but encourages it by providing reasonable
facilities. For each cargo category, the probable volumes under different circumstances
and the possible alternative types of technology that may be used in carriage and handling
are all considered. Several scenarios are then drawn up, each fully self-consistent,
resolving any clashes between forecasts for different trades and permitting a reliable
estimate to be made of the resources needed.

The most useful control statistics available from the ship and shift records which
should be kept are, as appropriate to each terminal:
(a) The total tonnage handled;
(b) The average ship turn-round time;
(c) The average tonnage loaded and discharged per ship;
(d) The volume of special traffic handled at a multipurpose terminal (i.e. the percentages
of containers and roro units, of bulk and bagged bulk shipments and of loads on pallets
and pre-slung and pre-packaged loads);
(e) The percentage of ships with a specified type of equipment such as shipboard cranes
or stern ramps;
(f) The average ship length;

19
(g) The maximum draught on arrival and maximum ship length.
With the exception of the last item, it is preferable to use the three-month moving average
for the control statistics.

Trend forecasting
The fact that over the last few years a particular class of traffic has been
increasing does not in itself mean that the trend will continue. Trends can reverse
themselves very quickly. Before projecting any past trend into the future, the planner
should determine the reason for this trend, and the likelihood of its persisting. In most
cases in developing countries, the reasons will be one of the following:
(a) Traffic is directly dependent on the GNP;
(b) Traffic in a specific commodity or product has been deliberately developed or run
down (e.g. national self-sufficiency in a major foodstuff; development of a new industry
or of mines);
(c) A gradual shift in regional centres of production or consumption is occurring;
(d) A gradual shift in transport technology or routeing is occurring (from break-bulk
shipment to containers; from maritime to overland transport, etc.).

If it is desired to find a traffic trend in a series of annual figures, simple methods

are the best to use. Usually all that is necessary is to calculate an annual percentage
growth rate. or to plot quarterly figures and draw in the trend by eye. When the trend is
particularly important and likely to persist, additional accuracy can be obtained by
carrying out a “least squares fit” procedure to ascertain the form of the trend. This is a
standard method given in text-books on statistics.

Whereas specialized traffic is generally linked to the development of a specific

industrial sector, or to individual events and policy decisions, general cargo which in
many developing countries consists predominantly of imports of consumer goods and
general manufactures-is far more dependent on the trend in national wealth. An
appropriate measure is the gross national product. The figures for the GNP trend and the
government target should be taken directly from figures available at the national

20
economic planning unit. Port planners should not normally engage in this form of
forecastinApart from deliberate regional development policies, there will be occasions
when pressures that build up produce trade shifts of their own accord. One recurring
pressure is that caused when a central region or capital city area grows to the point at
which land and labour costs become very high and industrial conditions become less
attractive. When that situation occurs, a port located in an area of less pressure, with good
connections to the major internal markets, can expect a fairly rapid build-up of industry
looking for alternative locations where conditions are more favorable.

Container traffic forecasts

Several principles should be observed when preparing the forecast for container
traffic: (a) The percentage of any trade which may become containerized must be
determined on the specific commercial and economic grounds for each case; (b) There
are no fixed lists of commodities which are “containerizable” and commodities which are
not, and a wider range of goods is being shipped in containers every year; (c) Provision
must always be made for a substantial proportion of containers moving empty; (d) The
average weight of cargo per 20-foot container can vary from 5 to 18 tons according to the
nature of the commodity. There will be a significant trade imbalance, with import
containers predominating, during the early years of container operations in developing
countries, since few of those countries will be able to provide sufficient containerized
export cargo to fill the available import containers. The number of empty containers
being loaded in developing countries will therefore be very high. Even so, however, a
small number of empty containers will be unloaded there, for example, refrigerated
containers intended for perishable exports. Thus, to the number of loaded units exported
from and imported to the port, an appropriate number of empties should be added. In the
absence of other information, a figure of 60 per cent for export empties and 5 per cent for
import empties would be reasonable estimates. Although for rough planning, overall
averages of cargo tonnage per container can be used, it is inadvisable to use a single
blanket figure, since a tonnage forecast of 500,000 tons, for example, could be carried in
anything from 30,000 to 60,000 TEU containers. Wherever possible, the principal type of
cargo to be carried (e.g. rice, general manufactures, refrigerated fruit) should be

21
determined and with the appropriate stowage factor, the figure for the average number of
tons per TEU can be used, as shown in table 9. In the absence of such information, it
would be wise to plan on the basis of a maximum figure of 12 tons per TEU for imported
general consumer goods in developing countries. When the class of cargo is known, the
procedure for planning more accurately is similar to that of calculating ship loadings.
According to the stowage factors of the cargo, the maximum load can be limited either by
the weight or by the space occupied. This volume will be filled at the maximum
allowable cargo weight of 18 tons only when the cargo stowage factor is 57 cubic feet per
ton (or 1.6 cubic metres per ton). Commodities of this density are, for example, flour,
potatoes and palm kernels.

Terminologies

Cargo & Vessel Dwell Time: The duration for which an entity (cargo or vessel) stays in
the port for service is called dwell time of the entity. In the port parlance, the entities are
mainly the vessel and cargo /containers. The time cargo / container remains in a
terminal’s in-transit storage area while awaiting shipment by vessels in exports or
evacuation by rail / road in imports adds on to costs and demurrages beyond stipulated
time limits. Delays that prolong the dwell time may be caused on account of cargo as also
on vessel account and entail financial costs.

Vessel related dwell time: From the time a vessel reports at anchorage to the time it is
cast-off from the berth, is the Turn Round Time for the vessel. Dwell time of
cargo/container and vessel broadly reflects the efficiency of the port. Thus measures
adopted to reduce the dwell time have an influence on the efficiency of the port as also of
the use of vessel hire time and laycan requirement.

Pre-Berthing Detention: This is the time taken by a ship from its arrival at the
anchorage (reporting station) till it starts its movement to the working berth, i.e.,
operational berth. Pre berthing detention is a component of the total turnaround time and
any increase in the pre-berthing detention thus correspondingly increasing what is termed
as the Turn Round Time. Berthing shortages at ports or excess vessel traffic at ports

22
typically result in pre-berthing detention. Continued berthing delays at any port can lead
to eventual loss of vessel and cargo traffic.

Average Ship Turnaround Time: Total hours a vessels stay in port (buoy-to-buoy time)
divided by the total number of vessels. Higher port efficiency can be measured by a
shorter average ship turnaround time.

Non Working Time of Vessels At Berth: Non-working time is defined as sum of the
“The Idle time from the time of berthing to start of work, idle time during ship operation
and idle time taken from the time of completion of operations to sailing from berth
together.

Turn Round Time (TRT): The Turn Round Time of a vessel refers “to the time the
vessel reports at the anchorage to the time it sails out from the berth”.

Average Waiting Rate: Total hours vessels wait for a berth (buoy-to-berth time) divided
by total time at berth.

Gross Berth Productivity: Number of container moves or tonnes of cargo (for break-
bulk and bulk cargoes) divided by the vessels total time at berth measured from first to
last line.

Berth Occupancy Rate: Total time of vessels at berth divided by total berth hours
available.

Ship Productivity Indicator: This refers to total number of moves (for containers) or
tonnes handled (for break bulk and bulk cargoes) divided by total hours in port.

Tonnes per Gang Hour: Total tonnage handled divided by total number of gang hours
worked.

TEUs Per Crane Hour: Total number of TEUs handled divided by total number of
crane-hours worked.

. The globalisations of trade and subsequent breakdown in trade barriers have

spurred tremendous growth in marine transportation. Thus, the stiff competitions among

23
port operators have increased in the sense to attract port users. Therefore, port operators
have to consider lower turnaround time for vessel in order to benchmark good
productivity and performance for their terminals.

Hinterland Connectivity
Highway Roads

The Golden Quadrilateral Road Project being implemented by NHAI connects

Chennai to Kolkata on the east and Mumbai via Bangalore on the west and is closed to
completion with small stretches pending. Chennai is well connected to other major cities
by national highways.

Last Mile Road Connectivity

The last stretch of 15-20 kms from North, West and South to the ChPT through
Chennai city are clogged and regulated with traffic restrictions. Thus the good
penetration in the hinterland is set off against the shorter but complex city transit. The
Golden Quadrilateral shall be connected at Poonamallee outside Chennai city limits. It is
therefore proposed that one of the stretches which can improve hinterland connectivity is
the stretch from Poonamallee to the Port gate. A dedicated four lane elevated expressway
from port’s southern gate i.e. Gate No. 10 is already proposed at an estimated cost of Rs.
750 cr.
As regards the Northern side, presently the traffic movement from the Ennore
Expressway to Gate No.1 of ChPT is through the entry to the fisheries harbor which is
very narrow and creates traffic hold up causing inconvenience. Therefore this road is also
proposed to be upgraded under proposed Ennore-Manali Road Improvement Project
(EMRIP) with ChPT participating in the same through an equity stake.
Rail

ChPT is well connected with the national railway network. The Port is linked to
Southern Railway network via Chennai Beach Railway Station which connects ChPT to
Southern parts of Tamil Nadu and via Royapuram Station which connects Southern

24
Railway Trunk line to Kolkata, New Delhi, Bangalore, Coimbatore etc. ChPT has an
internal rail network of approximately 70 km length.
Rail connectivity to Tondiarpet off Dock facility

There is a need for developing an Off Dock facility. Tondairpet Housing Colony
is identified as the available location for the same. Strengthening its already existing rail
connectivity with the Port shall be required. This facility will be restricted to only storage
of containers and shall be an intermediate point for speedy evacuation between the
hinterland and the Container terminals. The facility is spread over 9 acres and is
approximately 5 Kilometers away from the Port. There is already rail connectivity to
Tondiarpet, but this would be insufficient as a dedicated rail connectivity would be
required with the Port to run a shuttle service for effective use of Off Dock facility.
Establishment of a Shuttle railway service

The use of a "port shuttle railway" system moving containers to and from the port
to an "off-dock facility" close to the port will substantially reduce container dwell time.
This system will free-up valuable land inside the port. Also, the port shuttle railway
service will substantially reduce the number of trucks passing through the port gates. The
shuttle railway would use modern container wagons and Rail-mounted gantry (RMG)
cranes would be used at the Port and the off-dock terminal to efficiently handle
containers.

Use of Multi- Trailer System (MTS)

The proposed new container terminals would use tractor- trailer trains (road units)
that can carry up to 6 teu with either two 20-feet or one 40-feet container on each of
the three trailers. The multi-trailer system (MTS) would quickly and efficiently shuttle
containers between the Port’s inter-modal rail yard and the terminals.

Need for a Master Transportation Plan

25
 Presently the iron ore for export and the imported coal are handled exclusively by
the Railways, while only about 7-8% of the container traffic is moved by the railway. The
Business Plan forecasts that container traffic will increase from the present 0.73 Mteu per
annum to more than 3.6 Mteu per annum 15 years from now. To achieve this significant
growth, it is of paramount importance for ChPT to devise a comprehensive transportation
master plan to handle the landside transportation of the traffic required for seamless
operations. ChPT must improve both its internal road / rail system and hinterland
connectivity. The ultimate removal of the existing coal yards presents a golden
opportunity for ChPT to develop a new railway inter-modal yard that will optimize the
use of rail transport for the port.

Capacity Analysis
The assessment of maximum possible port capacity and the infrastructure
development required is performed with respect to four following basic parameters:
• Ground Storage Area,
• Requirement of berth length,
• Hinterland connectivity,
• No. of vessel and their sizes

The infrastructure facilities required for commodities other than container cargo
handled by the Port i.e. iron ore, coal, automobiles, POL and general cargo are separately
analyzed and are found to be capable of meeting the requirements.
Since coal and iron ore operations presently occupy most of the rail capacity at
the port, it is expected that the same shall be released for container handling in terms of
additional rail handling capacities. After considering this possible shift of containers to
rail mode, the total no. of containers which are to be handled by road are estimated based
on the balance modal share.

Cargo Forecast
Cargo handling forecast is the most pertinent factor as it enables us in deciding
upon the future infrastructure and other functional facilities required and service levels

26
demanded. In order to forecast the cargo potential over the horizon period years, the
historic cargo trends with various quantifiable and non-quantifiable variables were used
as inputs in developing a Statistical Model. The statistical model is developed using
linear trend analysis and result is further translated into targeted traffic forecast.
.

CHAPTER-3

RESEARCH METHODOLOGY

3.1 Research design

Research design is a process of deliberate anticipation directed towards bringing

an unexpected situation under control. A research model therefore enables a researcher to

27
see the whole study structure and also realize the place and importance of the successive
steps that he will be required to take in the total scheme.

Definition

As Selliytz, Jahoda, Deutsch and Cook state “a research design is the arrangement
of conditions for collection and the analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure.”

This is an arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in
procedure. The research design is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection, measurement and analysis of
data.

Type of Research

The type of research design used in the project was exploratory research.
Exploratory research is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. Given its fundamental nature, exploratory
research often concludes that a perceived problem does not actually exist. Exploratory
research often relies on secondary research such as reviewing available literature and/or
data, or qualitative approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth interviews,
focus groups, projective methods, case studies or pilot studies.

3.2 Sources of data

There are two main sources of data available to us. They are

Primary data

The primary data includes the various aspects, details and problems faced in the
port operations.

28
Secondary data

The secondary data has been obtained from books, journals, company reports and
web sites.

3.3 Tools used for analysis

In statistics, spread sheets were used in major. MS Excel was used to draw bar
charts for analysis.

MS Excel

Microsoft Excel (full name Microsoft Office Excel) is a proprietary spreadsheet

application written and distributed by Microsoft for Microsoft Windows and Mac OS X.
It features calculation, graphing tools, pivot tables and, except for Excel 2008 for Mac
OS X, a macro programming language called VBA (Visual Basic for Applications).

The three major parts of Excel are:

Worksheets – Worksheets allow you to enter, calculate, manipulate and analyze

data such as numbers and text.

Charts – Charts pictorially represent data. Excel can draw two-dimensional and
three dimensional column charts, pie charts and other types of charts.

Databases – Databases manage data. For example, once you enter data onto a
worksheet, Excel can sort the data, search for specific data, and select data that meets
certain criteria.

Trend Analysis

In statistics, linear regression is any approach to modeling the relationship

between a scalar variable y and one or more variables denoted X. In linear regression,
models of the unknown parameters are estimated from the data using linear functions.
Such models are called a “linear models.” Most commonly, linear regression refers to a
model in which the conditional mean of y given the value of X is an affine function of X.

29
Linear regression was the first type of regression analysis to be studied rigorously, and to
be used extensively in practical applications. This is because models which depend
linearly on their unknown parameters are easier to fit than models which are non-linearly
related to their parameters and because the statistical properties of the resulting estimators
are easier to determine.

The least squares parameter estimation method is a variation of the probability

plotting methodology in which one mathematically fits a straight line to a set of points in
an attempt to estimate the parameters. The method of least squares requires that a straight
line be fitted to a set of data points such that the sum of the squares of the vertical
deviations from the points to the line is minimized, if the regression is on Y, or the line be
fitted to a set of data points such that the sum of the squares of the horizontal deviations
from the points to the line is minimized, if the regression is on X.

The straight line trend is represented by the equation

Y=a+bx

In order to determine the values for constants a and b , the following equations are used

∑y=Na+b∑x

∑xy=a∑x+b∑x2

where N represents the number of periods for which the data is given

Queuing theory

Queuing theory is the mathematical study of waiting lines, or queues. The theory
enables mathematical analysis of several related processes, including arriving at the (back
of the) queue, waiting in the queue (essentially a storage process), and being served at the
front of the queue. The theory permits the derivation and calculation of several
performance measures including the average waiting time in the queue or the system, the

30
expected number waiting or receiving service, and the probability of encountering the
system in certain states, such as empty, full, having an available server or having to wait
a certain time to be served.

In queueing theory, a queueing model is used to approximate a real queueing

situation or system, so the queueing behaviour can be analysed mathematically. Queueing
models allow a number of useful steady state performance measures to be determined,
including:

• the average number in the queue, or the system,

• the average time spent in the queue, or the system,
• the statistical distribution of those numbers or times,
• the probability the queue is full, or empty, and
• the probability of finding the system in a particular state

Queuing models can be represented using Kendall's notation:

A/B/S/K/N/Disc

• A is the interarrival time distribution

• B is the service time distribution
• S is the number of servers
• K is the system capacity
• N is the calling population
• Disc is the service discipline assumed.

CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1 Data Analysis and Interpretation

Analysis and interpretation plays the most important role in any research process.
It helps to extract pertinent findings from the collected data by applying the statistical

31
techniques in discovering additional findings. It converts raw data into meaningful data
by bridging the gap between primary and secondary data.

Analysis is done with an attempt to organize and summarize data in order to

enhance the effect of results in such a way that enables to relate critical points with
study’s objectives.

Percentage analysis, Trend analysis, and queuing model were used for data
analysis and interpretation. Analysis and interpretation was based on the data collected
and obtained from various reports, observations and records maintained in the different
sections of the Traffic Department of the Chennai Port Trust. The analysis and
interpretation is based on the past years performance of the port.

Table no 4.1 Comparison of Total Traffic handled by Major ports

Growth
Major Ports 2008 2009 rate
Kolkata Dock 13741 13045 -5.06513
System
Haldia Dock 43541 33250 -23.6352

32
 Complex
Total: Kolkata 57282 46295 -19.1805
Paradip 42438 57011 34.33951
Visakhapatnam 64597 65501 1.399446
Ennore 11563 10703 -7.43752
Chennai 57154 61057 6.828918
Tuticorin 21480 23787 10.74022
Cochin 15810 17429 10.24035
New Mangalore 36019 35528 -1.36317
Mormugao 35128 48847 39.05432
Mumbai 57039 54543 -4.37595
JNPT 55756 60746 8.949709
Kandla 64893 79521 22.54172
Total 519159 560968

Inference

The table shows the comparison of total cargo traffic handled by the major ports
of India. It is found that Chennai Port trust has shown an increase of 6.82% growth
during 2009 compared to 2008. Chennai Port trust occupies 3nd place in terms of total
tonnage during the year 2009-10.

Chart no 4.1 Comparison of Total Traffic handled by Major ports

33
 Year Traffic
(million tonnes)
Table no 4.2 1997-98 34.18
Total Traffic 1998-99 33.65
handled by the 1999-00 36.46
2000-01 40.84
Chennai port
2001-02 36.01
2002-03 33.68
2003-04 36.71
2004-05 43.38
2005-06 47.25
2006-07 53.41 34
2007-08 57.15
2008-09 57.49
2009-10 61.06
 Chart no 4.2 Total Traffic handled

Inference

Chennai Port trust handled an all time high of 61.06 million tonne during the year
2009-10 .

Linear Trend Analysis for Total cargo traffic

Y=a+bx

∑y=Na+b∑x

∑xy=a∑x+b∑x2

We get, y=43.92+2.37x

Table no 4.3 Trend Projections for total cargo traffic

Year Trend
Projection
2010 60.51

35
 2011 62.88
2012 65.25
2013 67.62
2014 69.99

Chart no 4.3 Total Traffic Projections

Table no 4.4 Comparison of Export & Import Traffic handled by port

Year Import Export Percentage Percentage

Import Export
1997-98 23353 10826 68.32558 31.67442
1998-99 24313 9333 72.26119 27.73881
1999-00 25947 10515 71.16176 28.83824
2000-01 28548 12300 69.88837 30.11163
2001-02 23038 12975 63.97134 36.02866
2002-03 19606 14081 58.20049 41.79951
2003-04 20302 16408 55.30373 44.69627
2004-05 24620 19186 56.20235 43.79765
2005-06 27203 20045 57.57492 42.42508
2006-07 30758 22655 57.58523 42.41477
2007-08 32860 24295 57.49278 42.50722
2008-09 34645 22846 60.26161 39.73839

36
Inference

From the above table we observe that the port’s percentage of import has been
decreasing and percentage of export has been increasing. Import has decreased from68%
to 60% while export has increased from 31 % to nearly 40%.

Chart no 4.4 Comparison of Export & Import Traffic handled by port

Table no 4.5 Iron ore traffic handled by port

Year Traffic
(million tonnes)
1997-98 6.23
1998-99 5.47
1999-00 6.18
2000-01 7.04
2001-02 7.48
2002-03 7.94
2003-04 8.36
2004-05 9.59
2005-06 9.46
2006-07 10.48
2007-08 10.82
2008-09 8.24
2009-10 7.88

37
Inference

The quantity of iron ore handled by the Chennai port is found to have fluctuations
over the years due to the prevailing global economic trend.

Chart no 4. 5 Iron ore traffic handled by port

Linear Trend Analysis for Iron ore traffic

Y=a+bx

∑y=Na+b∑x

∑xy=a∑x+b∑x2

We get, y=8.07+.32x

Table no 4. 6 Iron ore traffic projection

Year Trend
Projection
2010-11 10.31
2011-12 10.63
2012-13 10.95
2013-14 11.27

38
 2014-15 11.59

Chart no 4. 6 Iron ore traffic projection

Table no 4. 7 Fertilizer Traffic handled by the port

Year Traffic (000’

tonnes)
1997-98 1376
1998-99 1125
1999-00 1158
2000-01 926
2001-02 811
2002-03 708
2003-04 738
2004-05 911
2005-06 1072
2006-07 1014
2007-08 882
2008-09 690
2009-10 616

39
Inference

The tonnage of fertilizer imported has been declining from the year 2006-07.

Chart no 4. 7 Fertilizer Traffic handled by the port

Linear Trend Analysis for Fertilizer traffic

Y=a+bx

∑y=Na+b∑x

∑xy=a∑x+b∑x2

We get, y=925.15-37.63x

Table no 4. 8 Fertilizer traffic projections

Year Trend
Projection
2010-11 661.74

40
 2011-12 624.11
2012-13 586.48
2013-14 548.85
2014-15 511.22

Chart no 4. 8 Fertilizer traffic projections

Table no 4. 9 Container Traffic handled by the port

Year Traffic (million

tonnes)
1997-98 3.00
1998-99 2.94
1999-00 3.978
2000-01 5.77
2001-02 5.86
2002-03 7.22
2003-04 8.63
2004-05 9.86
2005-06 11.76
2006-07 14.17
2007-08 18.05
2008-09 20.56

41
 2009-10 23.48

Inference

The container traffic is found to have a drastic increase. The container traffic is
found to have grown nearly 8 times compared to 1997-98. The port shows an increasing ,
profitable trend in handling containers.

Chart no 4. 9 Container Traffic handled by the port

Linear Trend Analysis for Container traffic

Y=a+bx

∑y=Na+b∑x

∑xy=a∑x+b∑x2

We get, y=10.40+1.68x

Table no 4. 10 Container traffic projections

Year Trend
Projection
2010-11 22.16

42
 2011-12 23.84
2012-13 25.52
2013-14 27.2
2014-15 28.88

Chart no 4. 10 Container traffic projections

Table no 4. 11 Coal Traffic handled by the port

Year Traffic (million

tonnes)
1997-98 8.97
1998-99 9.91
1999-00 9.65
2000-01 12.49
2001-02 7.8
2002-03 3.73
2003-04 2.83
2004-05 3.28
2005-06 3.65
2006-07 9.08

43
 2007-08 9.63
2008-09 9.81
2009-10 9.82

Inference

The coal traffic increased by 2.5 times during the year 2006-07 compared to
2005-06 and thereafter the amount of coal imported has a smooth increase. The caol
traffic had an all time high of 12.49 million tonnes during 2000-01.

Chart no 4. 11 Coal Traffic handled by the port

Linear Trend Analysis for Coal traffic

Y=a+bx

∑y=Na+b∑x

∑xy=a∑x+b∑x2

We get, y=7.74-0.079x

Table no 4. 12 Coal traffic projections

44
 Year Trend
Projection
2010-11 7.18
2011-12 7.1
2012-13 7.02
2013-14 6.95
2014-15 6.87

Chart no 4. 12 Coal traffic projections

Table no 4. 13 Passenger Traffic handled by the port

Year No. of Passengers

2001-02 100037
2002-03 97608
2003-04 105355
2004-05 100807
2005-06 96360
2006-07 70588
2007-08 81798
2008-09 85272

Inference

45
 The passenger traffic does not show any considerable rise or decline. The number
of passengers has been fluctuating from 70588 to 100807. With not much prospect in
tourism development in and around Chennai, passenger traffic does not earn much profit
to the port.

Chart no 4. 13 Passenger Traffic handled by the port

Table no 4. 14 Vessel Traffic handled by the port

Foreign Coastal Government Total

2004-05 1313 488 468 2296
2005-06 1569 452 361 2382
2006-07 1754 643 417 2814
2007-08 1773 532 456 2761
2008-09 1819 501 503 2823

Inference

46
 The number of vessels handled by the port is found to have a considerable amount
of increase. The number of foreign vessels handled is nearly 3 times the number of
coastal vessels. This shows Chennai port involves its major part in foreign trade.

Chart no 4. 14 Vessel Traffic handled by the port

Table no 4.15 Commodity wise export cargo received by different modes of

transport during 2004-05

commodity Received by Rail Received by Road Received by Pipeline

Tonnes Percentage Tonnes Percentage Tonnes Percentage
Iron ore 7043087 70.5 - - - -
Other ore 2028543 20.3 1370461 18.1 - -
Container 273568 2.7 4442096 58.8 - -
POL - - 716660 9.5 1630439 99.4
Other cargo 647958 6.5 1023377 13.6 9606 .6
Total 9993156 100 7552594 100 1640045 100

47
 Table no 4.16 Commodity wise Import dispatched by different modes of transport
during 2004-05

commodity Dispatched by Rail Dispatched by Road Dispatched by

Pipeline
Tonnes Percentage Tonnes Percentage Tonnes Percentage
POL - - - - 9351568 94.8
Fertilizer - - 549023 5.3 - -
Fertilizer - - 328188 3.0 - -
Raw
Thermal 1712880 39.6 284570 2.7 - -
coal
Other cargo 2196044 50.8 3316835 31.8 - -
Container 305984 7.1 4842832 46.4 - -
Other cargo 106368 2.5 1124485 10.8 509111 5.2
Total 4321276 100 10437933 100 9860679 100

Table no 4.17 Commodity wise export cargo received by different modes of

transport during 2005-06

commodity Received by Rail Received by Road Received by Pipeline

Tonnes Percentage Tonnes Percentage Tonnes Percentage
Iron ore 6811244 66.4 - - - -
Other ore 2138150 20.8 1223446 16.8 - -
Container 363010 3.5 5301280 72.7 - -
POL - - - - 2421409 97.2
Other cargo 950918 9.3 768849 10.5 71001 2.8
Total 10263352 100 7293575 100 2492410 100

48
 Table no 4.18 Commodity wise Import dispatched by different modes of transport
during 2005-06

commodity Dispatched by Rail Dispatched by Road Dispatched by

Pipeline
Tonnes Percentage Tonnes Percentage Tonnes Percentage
POL - - - - 1078250 96.6
Fertilizer - - 709391 6.5 - -
Fertilizer - - 361313 3.3 40660 .4
Raw
Thermal 1841400 36.4 71571 .7 - -
coal
Other cargo 2731100 54 2456106 22.3 - -
Container 427680 8.4 5664498 51.6 - -
Other cargo 59485 1.2 1709409 15.6 338071 3.0
Total 5059638 100 10972238 100 11166981 100

Table no 4.19 Commodity wise export cargo received by different modes of

transport during 2006-07

commodity Received by Rail Received by Road Received by Pipeline

Tonnes Percentage Tonnes Percentage Tonnes Percentage
Iron ore 8324382 77.3 2155856 21.5 - -
Other ore 698323 6.5 - - - -
Container 456208 4.2 6355264 63.5 - -
POL - - - - 2137595 98.9
Other cargo 1288008 12.0 1501812 15.0 24863 1.1
Total 10766921 100 10012932 100 2162458 100

49
 Table no 4.20 Commodity wise Import dispatched by different modes of transport
during 2006-07

commodity Dispatched by Rail Dispatched by Road Dispatched by

Pipeline
Tonnes Percentage Tonnes Percentage Tonnes Percentage
POL - - - - 10801222 99
Fertilizer - - 651058 5.0 - -
Fertilizer - - 362701 2.8 14068 .1
Raw
Thermal 1665998 25.4 515145 4.0 - -
coal
Other cargo 3756356 57.2 3150140 24.2 - -
Container 522400 8.0 6832880 52.6 - -
Other cargo 618038 9.4 1487227 11.4 94542 .09
Total 6562792 100 12999151 100 10909832 100

Table no 4.21 Commodity wise export cargo received by different modes of

transport during 2007-08

commodity Received by Rail Received by Road Received by Pipeline

Tonnes Percentage Tonnes Percentage Tonnes Percentage
Iron ore 8056683 67.4 713194 6.6 - -
Other ore 2558284 21.4 3886 .1 - -
Container 484592 4.0 8213776 76.3 - -
POL - - - - 1587596 99.9
Other cargo 859811 7.2 1834489 17.0 999 .1
Total 11959370 100 10765345 100 1588595 100

50
 Table no 4.22 Commodity wise Import dispatched by different modes of transport
during 2007-08

commodity Dispatched by Rail Dispatched by Road Dispatched by

Pipeline
Tonnes Percentage Tonnes Percentage Tonnes Percentage
POL - - - - 11206385 99.0
Fertilizer - - 615724 4.0 - -
Fertilizer - - 2669119 1.8 - -
Raw
Thermal 1337245 21.4 550162 3.6 - -
coal
Other cargo 4042025 64.8 3699984 24.2 - -
Container 626960 10.1 8724400 57.1 - -
Other cargo 233390 3.7 1424210 9.3 114364 1.0
Total 6239620 100 15280599 100 11320749 100

Table no 4.23 Commodity wise export cargo received by different modes of

transport during 2008-09

commodity Received by Rail Received by Road Received by Pipeline

Tonnes Percentage Tonnes Percentage Tonnes Percentage
Iron ore 8247163 87.2 - - - -
Other ore 93015 1.0 655795 5.7 - -
Container 496896 5.3 9466752 81.9 - -
POL - - - - 1836340 100
Other cargo 917435 6.5 1432958 12.4 - -
Total 9454509 100 1155505 100 1836340 100

51
 Table no 4.24 Commodity wise Import dispatched by different modes of transport
during 2008-09

commodity Dispatched by Rail Dispatched by Road Dispatched by

Pipeline
Tonnes Percentage Tonnes Percentage Tonnes Percentage
POL - - - - 11275489 98.1
Fertilizer - - 499944 3.1 - -
Fertilizer - - 261207 1.6 - -
Raw
Thermal 2412229 34.7 23269 .2 - -
coal
Other cargo 3708655 53.3 3683678 22.7 - -
Container 553632 8.0 10663434 62.1 - -
Other cargo 276003 4.0 1667308 10.3 220439 1.9
Total 6950519 100 16798840 100 100

Table no 4.25 Comparison of cargo received by the port by various modes of

transport

Year Received by Received by Received by

Rail(tonnes) Road Pipeline
(tonnes) (tonnes)
2004- 9993156 7552594 1640045
05
2005- 10263352 7293575 2492410
06
2006- 10766921 10012932 2162458
07

52
 2007- 11959370 10765345 1588595
08
2008- 9454509 11555505 1836340
09

Inference

Till 2007-08 railway had the major share in receiving export cargo to the port. But
in 2008-09 it is found that road ways has exceeded rail mode in receiving export cargo.

Chart no 4.15 Comparison of cargo received by the port by various modes of

transport

Table no 4.26 Comparison of cargo dispatched by the port by various modes of

transport

Dispatched Dispatched Dispatched Dispatched Dispatched Dispatched

Year by Rail by Road by Pipeline by Rail by Road by Pipeline
(tonnes) (tonnes) (tonnes) % % %
2004-05 4321276 10437933 9860679 17.55197 42.39635 40.05168

53
2005-06 5059638 10972238 11166981 18.60239 40.34081 41.0568
2006-07 6562792 12999151 10909832 21.53728 42.65964 35.80307
2007-08 6239620 15280599 11320749 18.9995 46.52908 34.47142
2008-09 6950519 16798840 11495928 19.72042 47.66266 32.61692

Inference

Road ways is found to have major share of dispatching import cargo to various
locations of the country. Percentage of cargo dispatched by road is found to be
increasing.

Chart no 4.16 Comparison of cargo dispatched by the port by various modes of

transport

Queuing model for container terminal

Number of berths to handle container, S = 4 berths

Mean arrival rate of container ships, λ = 1.94 ships / day

Mean service time, µ = 1/1.40 day

The queuing model followed is multi service model, i.e. (M/M/S) :( ∞/FCFS)

54
 ρ=

ρ =0.67

P0 = ]-1

P0=0.058

Ps= P0

Ps=0.13

Length of the queue, Lq=Ps*

Lq=0.79 ships

Length of the system, Ls= +Lq

Ls=3.50 ships

Waiting time in the queue, Wq=

Wq=0.40 day

Waiting time in the system, Ws=

Ws=1.80 days

Queuing model for Coal (dry bulk)

Number of berths to handle container, S = 6 berths

55
Mean arrival rate of container ships, λ = 0.97ships / day

Mean service time, µ = 1/3.55 day

The queuing model followed is multi service model, i.e (M/M/S) :( ∞/FCFS)

ρ=

ρ =0.57

P0 = ]-1

P0=0.031

Ps= P0

Ps=0.071

Length of the queue, Lq=Ps*

Lq=0.21 ships

Length of the system, Ls= +Lq

Ls=3.76 ships

Waiting time in the queue, Wq=

Wq=0.21 day

Waiting time in the system, Ws=

Ws =3.76 days

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 CHAPTER 5

5.1 FINDINGS

The following are the findings based on the study conducted at the Chennai Port Trust:

• Chennai Port trust has shown an increase of 6.82% growth during 2009 compared
to 2008.

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• Chennai Port trust occupies 3nd place in terms of total tonnage during the year
2009-10.

• The Port handled an all time high of 61.06 million tonne during the year 2009-10 .

• The port’s percentage of import has been decreasing and percentage of export has
been increasing. Import has decreased from 68% to 60% while export has
increased from 31 % to nearly 40%.

• The quantity of iron ore handled by the Chennai port is found to have fluctuations
over the years due to the prevailing global economic trend.

• The tonnage of fertilizer imported has been declining from the year 2006-07.

• The container traffic is found to have a drastic increase. The container traffic is
found to have grown nearly 8 times compared to 1997-98. The port shows an
increasing, profitable trend in handling containers.

• The coal traffic increased by 2.5 times during the year 2006-07 compared to
2005-06 and thereafter the amount of coal imported has a smooth increase. The
caol traffic had an all time high of 12.49 million tonnes during 2000-01.

• The passenger traffic does not show any considerable rise or decline. The number
of passengers has been fluctuating from 70588 to 100807. With not much
prospect in tourism development in and around Chennai, passenger traffic does
not earn much profit to the port.

• The number of vessels handled by the port is found to have a considerable amount
of increase. The number of foreign vessels handled is nearly 3 times the number
of coastal vessels. This shows Chennai port involves its major part in foreign
trade.

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 • Till 2007-08 railway had the major share in receiving export cargo to the port. But
in 2008-09 it is found that road ways has exceeded rail mode in receiving export
cargo.

• Road ways is found to have major share of dispatching import cargo to various
locations of the country. Percentage of cargo dispatched by road is found to be
increasing.

SWOT for Chennai Port

Based on the sections related to Port Infrastructure, competition analysis,

hinterland connectivity, traffic forecast, capacity & bottleneck analysis, and

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organizational issues, an all compassing assessment of ChPT as a whole was developed
in the form of Strengths, Weaknesses, Opportunities and Threats (SWOT).

Strengths Weakness
• Strategic Geographical • Congested approach road
location • Restricted land availability
• Dedicated facilities for • Higher tariffs for use of
handling all major cargo plants & equipments
types • Sub-optimal usage of rail
• Good multimodal connectivity
connectivity • Exposure to dust & saline
• First Mover advantage and environment, requiring
an established base of higher maintenance
customers expense
• Best location on the East • Efficiencies lower and tariffs
Coast for cruise operations. levels higher than those in
• ISO 9001: 2000 compliant international ports
port • Ageing workforce
• ISPS Compliant port • Need for additional
• Good IT implementation, environment / pollution
web enabled port-user management
interaction • Surplus labour
• Good labour relations • High turnover among skilled
• Uninterrupted pilotage staff .
operations
• Port trust has diverse
representation of different
interest groups
• Sufficient reserves & surplus
• Good traffic growth and

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revenues in recent years

61
 Opportunities Threats

• Increasing containerisation • Competition from major

and good forecasted ports specially from Ennore
demand with strong and Tuticorin port
business potential. • Competition from minor
• Strong forecasted growth in ports mainly from
automobile exports. Krishnapatnam
• Increased ship sizes, • Expected ban on export of
automation. minerals
• Possibility to tap other • Loss of lucrative cargo like
sources of revenue: coal & iron ore.
• Ship Repair facilities and • Increase in awareness
services to Ship Owners. among common public
• Engineering Consultancy about environmental issues.
Services to Other Ports. • There are too many gates
• Provision of Marine providing access to port,
Services/BOT services to increasing vulnerability and
other Ports. efforts to maintain security.
• Potential to attract main line • High possibility of reduction
vessels. in government funding.
• Better road connectivity
after construction of
proposed road projects.
• To facilitate cruise tourism
by construction of a cruise
terminal and Marina.
• Increased focus on private-
public partnerships and the
landlord model of port
operations.

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5.2 SUGGESTIONS

The following are the suggestions for improvement in the performance of Chennai Port
trust:

1. The port must increase the depth of berths to accommodate vessels with larger
drafts.
2. The port must increase its storage capacity to handle larger quantity of cargo.
3. Container terminals must be extended to handle large amount of containers in
the future.
4. Tariffs collected for usage of equipments must be reduced.
5. Handling cost of cargo must be reduced.
6. Infrastructure of the port must be improved to handle increasing amount of
cargo traffic.
7. Effective lighting system must be installed in order to increase the cargo
handling efficiency during the night shifts.
8. Dredging must be done frequently to maintain the draft of the berths.
9. Hither land transport system must be enhanced and maintained properly.
10. Automated machinery must be installed to avoid human errors.
11. Conveyer system must be extended to handle different kinds of dry bulks.
12. Storage yards with sheds must be built to accommodate perishable cargos.
13. Effective pollution control techniques must be implemented.
14. Dwell time of cargo must be minimized.
15. Dock laborers must be sufficiently trained to handle the cargo.

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5.3 CONCLUSION

The study undertaken by the researcher concludes that the performance has been
effective and follows an increasing trend with respect to the future. The study also
predicts the preferred mode of hither land transport with respect to the different types of
commodities.

At the present the Chennai Port Trust holds a good position among its
competitors. The amount of cargo handled seem to increase gradually with certain
economic fluctuations. With the completion of Sethusamuthiram dredging, it is expected
that the Chennai Port will have the burden to handle mother vessels and large bulk of
cargo. The overall performance of Chennai port is profitable

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 BIBLIOGRAPHY

1. Kothari, C.R. “Research Methodology”, New Delhi, New Age

International (P) Ltd., Publishers, 2004.
2. Gupta S.P. “Statistical Methods”, Sultan Chand & Sons
publications, 2008.
3. Paneerselvam R., Operations Research, Prentice Hall of India,
Fourth Print, 2008.
4. Donald R. Cooper and Pamela S. Schindler, Business research
Methods, 9th edition, Tata Mc Graw Hill, 2006.

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