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
nations 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.
Indias Independence saw the port gathering development, momentum. The topography of the
Port changed in 1964 when the Jawahar dock with capacity to berth 6 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 ports

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 countrys 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 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 4Cs i.e. Containers, Cars, Cruise and
Clean Cargo.

INDUSTRY PROFILE
Indian port sector facilitates access to one of the most efficient mediums of transportation for the
Indian economy; especially when it comes to transfer of bulky goods across long distances.
Currently, the 13 major ports in India handle 63 per cent of the seaborne traffic, while the nonmajor ports handle the remaining 36 per cent capacity.
The Indian Shipping Ministry has envisaged National Maritime Agenda 2010-20 which aims to
increase the total port capacity to 3, 300 million tonne (MT) from the current 1, 200 MT, needing
an estimated investment of Rs 2.9 lakh crore (US$ 53.47 billion). In order to give the sector a
major impetus, the Government has also allowed 100 per cent foreign direct investment (FDI)
under the automatic route, allowed income tax incentives as per Income Tax Act, 1961;
standardised bidding documents besides enhancing delegation of financial powers to the
Shipping ministry and streamlined security clearance procedures.
Key Statistics

During April-February 2013, total cargo handled at major ports in the country stood at
498 MT

There were 32 projects awarded by the ministry in 2012-13 that will add an annual
capacity of 136.75 MT across the Indian port segment; entailing an investment of Rs 6,
765.63 crore (US$ 1.25 billion)

Recent Developments

State-owned Kerala State Industrial Enterprises (KSIE) has set up a container freight
station at Kalamassery in order to harness growing business opportunities from the
International Container Transhipment Terminal at Vallarpadam. The Rs 25 crore (US$
4.61 million)-facility has an 80,000 sq ft customs-bonded cargo handling centre to
manage export and import operations and can handle 1,000 containers at a time. It is well
equipped with all modern facilities for the security and smooth operations of the freight
station in accordance with international standards

In a bid to expand its presence in the African region, the Essar group is planning to set up
a 10 MT-port in Mozambique, at a cost of US$ 275 million. A port in Essars African
portfolio would add to its basket of many businesses in the continent. The Group holds 50
per cent interest in the Kenya Petroleum Refinery at Mombassa while it also has telecom
operations in Kenya under the brand name Yu, with over three million subscribers

The Andhra Pradesh Government is planning to set up a dedicated truck terminal and
logistics hub in Nellore district in order to cater to the logistics requirement in the
Bangalore-Chennai-Krishnapatnam port freight corridor. The project, which will be
implemented by the AP Industrial Infrastructure Corporation, with financial assistance
from the Centre, is expected to become operational by 2014. The facility will come up at
Venkatachalam with an estimated investment of Rs 40 crore (US$ 7.37 million)

The Visakhapatnam Port Trust (VPT) is undertaking three major projects, with an
investment of Rs 1, 800 crore (US$ 31.90 million), involving extension of container
terminal, mechanisation and up-gradation of existing facilities at iron ore handling
complex (OHC) and West Quay North (WQ-7 and 8 berths). The cargo mix for WQ
North berths will be for handling bulk cargoes like bauxite, gypsum, blast furnace slag,
manganese

and

other

categories

of

ore.

VPT will be spending Rs 13, 940 crore (US$ 2.57 billion) on the several ongoing projects
to increase its current capacity to 149 MT by 2019-20.
Throughout the last century the shipping industry has seen a general trend of increases in total
trade volume. Increasing industrialization and the liberalization of national economies have
fuelled free trade and a growing demand for consumer products. Advances in technology have
also made shipping an increasingly efficient and swift method of transportation. Over the last
four decades total seaborne trade estimates have quadrupled, from just over 8 thousand billion
tonne-miles in 1968 to over 32 thousand billion tonne-miles in 2008. As with all industrial
sectors, however, shipping can be susceptible to economic downturns. Indeed, following several
years of incredibly buoyant shipping markets, for many trades the best in living memory, much
of the international shipping industry has fallen prey to the worldwide economic downturn.

Shipping is inherently the servant of the economy, so the contraction in trade, following the
beginning of the 'credit crunch' in late 2008, has translated into a dramatic and abrupt reduction
in demand for shipping. Notwithstanding the current gloom and doom, the longer term outlook
for the industry remains very good. The world's population continues to expand, and emerging
economies will continue to increase their requirements for the goods and raw materials that
shipping transports so safely and efficiently. In the longer term, the fact that shipping is the most
fuel efficient and carbon friendly form of commercial transport should work in favour of an even
greater proportion of world trade.
Value of volume of world trade by sea
It is difficult to quantify the value of volume of world seaborne trade in monetary terms, as
figures for trade estimates are traditionally in terms of tonnes or tonne-miles, and are
therefore not comparable with monetary-based statistics for the value of the world economy.
However, the United Nations Conference on Trade and Development (UNCTAD) estimates
that the operation of merchant ships contributes about US$380 billion in freight rates within
the global economy, equivalent to about 5% of total world trade. Shipping trade estimates are
often calculated in tonne-miles, as a way of measuring the volume of trade (or "transportation
work ", as it is sometimes referred). In 2008, for example, it is estimated that the industry
transported over 7.7 thousand million tonnes of cargo, equivalent to a total volume of world
trade by sea of over 32 thousand billion tonne-miles.
Safety and Regulation
Shipping is the safest and most environmentally benign form of commercial transport.
Perhaps uniquely amongst industries involving physical risk, commitment to safety has long
pervaded virtually all deep sea shipping operations. Shipping was amongst the very first
industries

to

adopt

widely

implemented

international

safety

standards.

Because of its inherently international nature, the safety of shipping is regulated by various
United Nations agencies, in particular the International Maritime Organization (IMO) which
has developed a comprehensive framework of global maritime safety regulations.

Environmental Performance
Shipping is the least environmentally damaging form of commercial transport and, compared
with land based industry, is a comparatively minor contributor to marine pollution from
human

activities.

There has been a substantial reduction in marine pollution over the last 15 years, especially
with regard to the amount of oil spilled into the sea, despite a massive increase in world
seaborne trade.
Importance of Shipping
A ship is a floating vessel used for transporting cargo across the oceans and through
rivers. Ships come in different sizes and arrangements to carry different types of cargo. Ships
have served mankind since pre historic times. Modern ships made of steel, equipped with very
powerful engines, very large, operate at different speeds though much slower than trucks, trains,
and planes.
Importance of the role of shipping and ships can be appreciated from the fact that ships transport
about 95% of worlds cargo (including that by road, rail, air, and other means). The economy of
the world depends upon shipping. All attempts are made to make ships suitable and economical
for carrying different types of cargo.

Types of Ships
Ships can be categorized as follows:
There are two major categories (not counting the ships for defense Navy) - namely Cargo Ships
and Passenger Ships. Cargo Ships are further subdivided into Dry Cargoes and Wet Cargoes as
given in the chart below. There are other types that can be placed under special category.

Cargo Ships
Dry Cargo Ships

Liquid Cargo Ships (Tankers)

General Cargo
General Cargo

(Boxes,

Oil Tankers

Machinery, etc)
Container Vessel

Bulk Carriers

Containers

Passenger Ships

Chemical
Carriers

Crude oil, refined oils,

and petroleum products

Cruise Liner

Ferries

Chemicals in bulk

Bulk Cargoes

Liquefied Gases

(Ore, Grain, Coal, Gas Carriers

(LNG, LPG, and other gases

Cement, etc)

in liquid state)

Roll On - Roll Off Trucks, trailers,

Vessel

vehicles

Other ships: Tug Boats, Offshore supply vessels, Cable laying ships, survey ships, Oil platforms, etc.

Small floating vessels used for different purposes are called boats.
General Cargo Ships are used for carrying different types of dry cargo in different sizes and
shapes. This type is the earliest of cargo ships. First change was in the size of ships, then in
method of packaging cargo, several other factors made the ships more and more specialized and
thus different categories.
A Container Ship is one such advance version of general cargo ship providing options for
different sizes of containers and a very speedy loading and discharging of cargo.
Roll-on/ Roll-off (RORO or ro-ro) is yet another version of a General Cargo ship designed to
carry wheeled cargo such as automobiles, trailers or railroad cars. RORO vessels have built-in
ramps which allow the cargo to be efficiently "rolled on" and "rolled off" the vessel when in port.
Car/Truck Carriers are distinctive looking ships with a box-like superstructure running the entire
length and breadth of the hull, fully enclosing and protecting the cargo. They typically have a
stern ramp and a side ramp for dual loading of many thousands of vehicles, as well as extensive
automatic fire control systems.
Bulk Carrier, bulk freighter, or bulker is a merchant ship used to transport unpackaged bulk
cargo such as grain, coal, ore, cement and other similar cargoes.

Tanker is a ship designed to transport liquids in bulk. Petroleum tankers are a particular brand of
tanker. A wide range of products are carried by tankers, including:
Crude oil, refined oils, and many other liquids
Chemical carrier is yet a specialized version of a tanker
Yet another specialized version of a tanker is liquefied gas carriers - liquefied petroleum gas
(LPG), liquefied natural gas (LNG), and other gases in liquid state

Passenger / Cruise Liners: A passenger ship is a ship whose primary function is to carry
passengers. The category does not include cargo vessels which have accommodations for limited
numbers of passengers
Offshore Supply Vessel (OSV): OSV is a ship specially designed to supply offshore oil
platforms. These ships range from 65 to 350 feet in length and accomplish a variety of tasks. The
primary function for most of these vessels is transportation of goods and personnel to and from
the offshore exploration activities.
Tugboat, or tug, is a boat, with a high-powered engine, used to manoeuvre, primarily by towing
or pushing, other vessels in harbors, over the open sea or through rivers and canals. They are also
used to tow barges, disabled ships, or other equipment like towboats.
Reefer is a type of ship typically used to transport perishable commodities which require
temperature-controlled transportation, mostly fruits, meat, fish, vegetables, dairy products and
other foodstuffs.
Shipboard Organization
Organization in simple words means - a group of people that perform tasks necessary for
achieving results. In case of a ship, organization means people necessary to operate and maintain
a ship.
Tasks involved in moving a ship from one port to the other are:
1. Maintain and control the direction of ship across the sea (Navigate the ship)

2. Operation and control machinery needed to move the ship, and for different services
3. Serve all other needs of people living on board
4. Other important needs are safety and security of personnel, cargo and the ship. Loading
and discharging cargo efficiently, maintaining the ship and machinery in good condition
for efficient and economical performance.
There are two Distinct Departments on the Ship. The Departments are Nautical
Department and Engineering Departments
Nautical Department is responsible for Cargo Operations, Navigation of the vessel and General
Maintenance of the Ship and Administration
Engineering Department is responsible for the upkeep and maintenance of all Machinery
onboard ship and the propulsion system
Each Department consists of Officers and ratings
Nautical Department consists of Master, Chief Officer, 2/0, 3/0, Cadet or Apprentices and deck
ratings or GP ratings
Engineering Department consists of Chief Engineer, 2/E, 3/E, 4/E, Electricians or Fitter and
engine ratings or GP ratings.
Master is overall in charge of the ship.
Crews are either Deck Ratings or Engine Ratings, or G.P. Ratings(General Purpose )
Catering Department includes Chief Cook & G.S who are responsible for cooking food for
Officers and Crew and general housekeeping in accommodation.

Duties of a General Purpose Rating (GP Rating)

GP Rating candidates are those who have been trained in both Deck and Engine- Room duties.
Such ratings may be employed in either department according to the needs and requirement of
the company.
After going on the ship, these candidates are able to work in all seamanship activities on board
with deck-side and other work at engine side.