CHAPTER 1

Page | 1

1.1 INTRODUCTION
Container terminals play a vital role in the global transportation network acting as an interface for intercontinental cargo movement. They facilitate export, import and transshipment of containers. The container terminal operations essentially consist of the following four areas: Ship-to-Shore (import) & vice-versa(export): Berth Allocation; Quay Cranes Scheduling; Ship Discharge/Loading Plan. Transfer: Quay-Yard; Yard-Yard; Yard-Gate. Storage: Yard Management (Block and Bay Allocation); Yard Crane Deployment. Delivery and Receipt: Gate management; Interface with trains and trucks.

Based on the type of container handling operations, a container terminal can be roughly divided into two main areas, the quay side and the storage yard. The quay side is where vessels are berthed. Quay cranes (QCs) discharge inbounds (I/B) and transit containers from and load outbound (O/B) and transit containers to vessels. The storage is typically made up of blocks of containers. Each block consists of a mass of containers, usually placed in six lanes side by side, with each lane including 20 or more container stacks that are of four to five tiers of containers. The number of lanes and height of the container stacks depend on the height and the span of the cranes that are used to stack containers in a block. The six-lane, four-tier stack size is the typical size for RTGCs, whose gantries span across the lanes of a block. Internal trucks (ITs) provide transportation of containers between the QCs and the storage blocks. External trucks (XTs) bring O/B containers from customers into the yard and pick-up I/B containers from the yard and deliver them to customers. RTGCs, or yard cranes in general, are used to handle the containers in the storage blocks. They load the containers from the trucks (ITs or XTs) and stack them on to trucks.

Page | 2

Figure no: 1.1 General Layout of a Container Terminal

Quay side ITs transport inbound, outbound and transit containers between QCs on berth side and RTGCs in the yard H ou s e Vessel s e G a t XTs bring in outbound and pick up inbound containers Blocks in storage yard

Page | 3

1.2 OBJECTIVES OF THE STUDY

Every study has an objective for which it is conducted. This study is no exception. The following are the objectives of the study To study the functions and various activities of the container terminal. To study the role of planning in the operations of a container terminal. To suggest ways to improve performance of the terminal.

1.3 METHODOLOGY
Primary Source
Primary data for the research was collected by conducting interviews with the officials and concerned employees. The information provided by them was very helpful in the research.

Secondary Data Secondary data were collected form the company profile, company website, journals etc.

1.4 TOOLS OF DATA COLLECTION

Interview Observation Published sources

1.5 SCOPE OF THE STUDY

Both primary and Secondary data has been be used for the study. Primary data was collected through direct interaction with the companys operation department. And I collected the data from the secondary sources comprising company website, internal publications, other journals and periodicals. This study gives a clear idea about the importance of planning in operations of a container terminal.

Page | 4

CHAPTER 2

Page | 5

2.1 HISTORY OF CONTAINERIZATION

Modern container shipping celebrated its 50th anniversary in 2006. Almost from the first voyage, use of this method of transport for goods grew steadily and in just five decades, containerships would carry about 60% of the value of goods shipped via sea. The idea of using some type of shipping container was not completely novel. Boxes similar to modern containers had been used for combined rail- and horse-drawn transport in England as early as 1792. The US government used small standard-sized containers during the Second World War, which proved a means of quickly and efficiently unloading and distributing supplies. However, in 1955, Malcom P. McLean, a trucking entrepreneur from North Carolina, USA, bought a steamship company with the idea of transporting entire truck trailers with their cargo still inside. He realized it would be much simpler and quicker to have one container that could be lifted from a vehicle directly on to a ship without first having to unload its contents. His ideas were based on the theory that efficiency could be vastly improved through a system of "intermodalism", in which the same container, with the same cargo, can be transported with minimum interruption via different transport modes during its journey. Containers could be moved seamlessly between ships, trucks and trains. This would simplify the whole logistical process and, eventually, implementing this idea led to a revolution in cargo transportation and international trade over the next 50 years.

Containerization/Global Throughput Between 1990 and 2009, global throughput grew by 9.3% per annum, which equates to a multiple of growth in global throughput over growth in world trade of goods and services of 1.6 times over the period. This multiple is primarily the result of the increased containerization of tradable goods, but also reflects an increase in the incidence of transhipment over the period. The rate of containerization has slowed over the past 30 years because almost all tradable goods that are capable of being
Page | 6

transported along the deep-sea trade routes in containers are now transported in this way and, in recent years, the rate of containerization has increasingly reflected the containerization of new products, such as paper and other types of cargo that were traditionally considered break-bulk, which advances in technology have enabled. However, despite the near-completion of the process of containerization, trade routes to and from particular countries and geographical regions, notably China, South East Asia, Latin America, the Indian Subcontinent and Africa, continue to offer scope for significant growth in container volumes. Adverse global economic trends led to container throughput at the worlds ports falling for the first time ever, from 525 million TEU in 2008 to 473 million TEU in 2009, a drop of almost 10%. Most global container terminal operators experienced reduced volumes across their networks in 2009. However, current forecasts from Drewry estimate compound annual growth between 2009 and 2015 of approximately 7.2%

World container port throughput declined by an estimated 9.7 percent to 465.7 million TEUs in 2009. Chinese mainland ports accounted for approximately 23.3 per cent of the total world container port throughput. UNCTADs Liner Shipping Connectivity Index revealed that between 2004 and 2009, the ranking of the Least Developed Countries (LDCs) improved by 3 points. The LDCs average ranking in 2009 was 109, compared to 76 for other developing countries and 68 for developed countries. In 2009, there were 15 LDCs that had only one to four service providers. This was almost a doubling compared to 2004, when here were only 8 LDCs with only one to four service providers.

Page | 7

Figure no: 2.1 World Container Traffic and Throughput, 1980-2008 (millions of TEU)

Source: adapted from Drewry Shipping Consultants.

The world container throughput is the summation of all containers handled by ports, either as imports, exports or transshipment. This means that a container is at least counted twice; as an import and as an export, but also each time it is handled at the ship-to-shore interface (e.g. at an intermediary location). Thus throughput should ideally be counted in container moves, but for basic commercial-strategic reasons, both port authorities and terminal operators prefer to communicate throughput figures in TEU. The world container traffic is the absolute number of containers being carried by sea, excluding the double counts of imports and exports as well as the number of involved transshipments. The throughput reflects the level of transport activity while the traffic reflects the level of trade activity. The trend underlines a divergence between both as global supply chains became more complex.

Page | 8

Stages in the Development of Containerization Introduction (1958-1970) From the first containerized commercial services in the late 1950s until the design of the first cellular containerships in the 1960s, the container was an unknown variable in global shipping. Investments were sparse as high risk was involved with an unproven technology. Adoption (1970-1990) The container became acknowledged as a transport product and investments in intermodal facilities accelerated. This involved the construction and reconversion of several container port terminals as well as the introduction of cellular containerships. The risk factor became less of an issue and investments were made in accordance to commercial opportunities. Growth (1990-2008) Containerization began to seriously impact global trade patterns and manufacturing strategies, particularly with the entry of China in the global economy. The emergence of new manufacturing clusters incited long distance (transatlantic and transpacific) pendulum container services. During the same period, a new class of Post panamax containership became a dominant vector of maritime shipping. Additionally containerization started to go further inland with rail and barge services. It is unclear when the phase of fast growth in container traffic will reach a threshold, but 2010 appears to be a possibility. Maturity (2008 onwards) The maturation of container traffic will be linked with the maturation of the global economy. This can be linked to a number of factors such as limits to the exploitation of comparative advantages in manufacturing as well as the associated trade imbalances and higher energy prices. Technical limits to economies of scale both from the maritime and land side of containerization are also likely to play significantly for containerized traffic, but the maturity of containerization is likely
Page | 9

to be more an economic than a technical process. Already, the global recession that began in 2008 has been associated with a significant reduction in containerized traffic.

Page | 10

Table no.2.1 The 20 Top Ranked Operators of Container Ships, 1 January 2010 (Number of ships and total shipboard capacity deployed, in TEUs) Number of vessels 427 394 289 167 129 143 116 120 89 77 90 89 80 63 88 Average vessel size 4090 3827 3269 3549 4068 3468 4053 3809 4495 4670 3871 3655 3966 4609 3226 Share of world total TEU 11.7% 10.1% 6.3% 4.0% 3.5% 3.3% 3.1% 3.1% 2.7% 2.4% 2.3% 2.2% 2.1% 1.9% 1.9% 1.7% 1.4% 1.3% 1.2% 1.2% 67.5% 32.5% 100.00%

Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Operator Mearsk Line MSC CMA CGM Evergreen Line APL COSCON HapagLoyd CSCL Hanjin NYK MOL K Line Yang Ming OOCL Hamburg Sud HMM

Country Denmark Switzerland France China Singapore Singapore Germany China Republic of Korea Japan Japan Japan China China Germany

TEU 1746639 1507843 944690 592732 594710 495936 470171 457126 400033 359608 348353 325280 317304 290350 283897

Republic of 53 4905 259941 Korea 17 ZIM Israel 64 3371 215726 18 CSAV Chile 66 2968 195884 19 USASC Kuwait 45 3924 176578 20 PIL Singapore 84 2071 173989 Total top 20 carriers 2673 3774 10086790 Others 6862 709 4864981 World container ship fleet 9535 1568 14951771 Source: UNCAD Review of Maritime Transport 2010 (Chapter 2 page no: 33)

Page | 11

Table no.2.2 Top 20 Container Terminals and Their Throughput for 2008 And 2009 (in TEUs and percentage change) %change 2008-2009 -13.54 -10.64 -13.47 -13.77 -10.96 1.72 -5.95 -6.44 -0.58 -9.78 2.35 -11.32 -8.28 -15.63 -27.73 -14.03 7.14 -21.89 -7.04 -9.98 -10.48

Sl No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Port name Singapore Shanghai Hong Kong Shenzhen Busan Guangzhou Dubai Ningbo Qingdao Rotterdam Tianjin Kaohsiung Port Klang Antwerp Hamburg Loss Angeles Tanjung Pelepas Long Beach Xiamen Laem Chabang

2008 29918200 27980000 24248000 21413888 13425000 11001300 11827299 11226000 10320000 10800000 8500000 9676554 7970000 8663736 9700000 7849985 5600000 6487816 5034600 5133930 246776308

2009 25866400 25002000 20983000 18250100 11954861 11190000 11124082 10502800 10260000 9743290 8700000 8581273 7309779 7309639 7010000 6748994 6000000 5067597 4680355 4621635 220905805

Total Top 20 container terminals

Source: UNCAD Review of Maritime Transport 2010 (Chapter 5 page no: 97)

Page | 12

Table no.2.3 Top Ten Global Container Terminal Operators Gross throughput in 2009 (TEUs in Millions) 64.2 56.9 55.3 45.2 32.5 16.4 11.7 8.6 7.7 7.0 305.5 48.5 354.0

Ranking 1 2 3 4 5 6 7 8 9 10

Name of operator Hutchison Port Holdings APM Terminals PSA International DP World COSCO MSC Eurogate Evergreen SSA Marine CMA-CGM

Market share in 2009 13.6% 12.0% 11.7% 9.5% 6.9% 3.5% 2.5% 1.8% 1.6% 1.5% 64.6% 10.2% 74.8%

Ten largest global terminal operators Remaining global terminal operators Total

Source: Drewry Shipping Consultants Ltd., Annual Review of Global Terminal Operators 2010.

Page | 13

2.2 HISTORY OF DP WORLD

DP World was formed in September 2005 with the integration of the terminal operations of the Dubai Ports Authority (DPA), which was focused on the UAE ports of Rashid and Jebel Ali, and DPI (Dubai Ports International) which had been set up to export this success internationally. When it was first established in 1999, DPI had initially applied its expertise to managing ports in the Middle East, India and Europe. Its first project was at Jeddah Islamic port (in 1999), where it collaborated with its local partner on the management and operation of the South Container Terminal (SCT). In 2003, SCT was the first terminal in the Kingdom of Saudi Arabia to exceeded 1 million TEU (Twenty-foot equivalent container units) and volumes in 2004 exceeded 1.3 million TEU. DPI then went on to develop successful operations at the ports of Djibouti (2000), Vizag, India (2002) and Constana, Romania (2003). In January 2005, DPI transformed its network with the strategic acquisition of CSX World Terminals (CSX WT), the international terminal business of CSX Corporation. This acquisition gave the company a strong presence in Asia with major operations in Hong Kong and china as well as operations in Australia, Germany, Dominican Republic and Venezuela. Importantly for the future development and expansion of its network, DP World also acquired CSX WTs strong project pipeline, which included the 9-berth Pusan Newport (PNC), South Korea, where DP World holds the management contract as well as a significant equity interest and other projects in the rapidly expanding markets of India and the Middle East. In February 2005 DP World signed an agreement with the Cochin Port Trust (CoPT) to construct, develop and operate an international container transshipment terminal at Vallarpadam, Kochi, India. It is the largest single operator container terminal currently planned in India and the first in the country to operate in a special economic zone. The new terminal will make Kochi a key center in the shipping world, reducing Indias dependence on foreign ports to handle transshipment. In March 2005, DP World was awarded a 30 year concession to develop and operate the container terminal at the Port of Fujairah, in the UAE. This was followed in July 2003 by the awarding of a management contract for Mina Zayed Port, Abu Dhabi. These concessions enabled DP World to streamline operations at the major container facilities of the UAE and further increase the choices available to our customers. In

Page | 14

November 2005 DP World also announced agreements to develop new container terminals at Yarimca, Turkey and Qingdao, China. DP World also has interests in logistics business in Hong Kong and China, notably ATL, the market leading logistics operator based at Kawi Chung, Hong Kong. We took another giant leap forward with the acquisition of P&O in March 2006, expanding our portfolio of terminals and adding, P&O Ferries, P&O Estates and 7 P&O Maritime Services to the group. The combined container throughput of both companies for 2005 was more than 35 million TEU across terminals from the Americas to Asia. This grew to nearly 42 million TEU in 2006. The acquisition also brought with it an exciting pipeline of projects that will continue our future expansion, independent of acquisitions, across key markets globally. Capacity will rise to around 90 million TEU by 2017.

Page | 15

VISION, MISSION & VALUES VISION Sustainable value through global growth, service & excellence

MISSION A global approach to a local business environment where excellence, innovation and profitability drive our core business philosophy of exceptional customer service. VALUES Values are: Commitment to our people and our customers Profitable global growth Responsible corporate and personal behavior Excellence and innovation

Page | 16

2.3 HISTORY & ACHIEVEMENT OF ICTT

INTERNATIONAL CONTAINER TRANSSHIPMENT TERMINAL (ICTT) On the 16th February 2005, DP World announced that it has formally signed an agreement with the Cochin Port Trust (CoPT) to construct, develop and operate an International Container Transshipment Terminal (ICTT)- An India Gateway Terminal- at Vallarpadam. The project was formally launched with the laying of the foundation stone by Mr. Manmohan Singh, the Honble Prime Minister of India. The ceremony was attended by Dr. Jacob Thomas, chairman, CoPT and Mr. Sultan Ahmed Bin Sulayem, executive Chairman, DP World. The proceedings were overseen by the Honble Minister of shipping, Government of India, Mr. T.R. Baalu, and the Honble Chief Minister of Kerala, Mr. Oommen Chandy and His Excellencncy, the Governor of Kerala, Mr. R.L. Bhatia. Vallarpadam is the largest single operator container terminal currently planned in India and the first in the country to operate to in a special economic zone. The new terminal will make Cochin a key center in shipping world reducing Indias dependence on foreign ports to handle transshipment. Approval for the agreement was given by the Cabinet Committee of Economic Affairs of the Government of India, Ministry of Finance and meanwhile, the DP World will manage and subsequently transfer its operations at the Rajiv Gandhi Container Terminal (RGCT) in Cochin Port to the new terminal upon its completion. The DP World has been granted a 38year concession for the exclusive operation and management of the site. The first phase of the new Terminal will have a capacity of 1 million TEUs which consists of 600 meters of quay, four Super Post Panamax Quay Cranes. Construction of a new four line highway access to the golden quadrilateral road network is already ready. Vallarpadam will be expanded ahead of demand to eventually a total of 1.8 km of quay and at least 16 Quay Cranes capable of handling largest vessels afloat, with associated yard-handling equipment and a capacity of 3 million TEUs.

Page | 17

The total cost of the project is estimated to be US $500 million and will be funded by DP World through non-recourse debt funding. The debt is provided by a consortium of banks led by the Infrastructure Development Fund Company (IDFC), set up to provide growth capital for infrastructure projects in India. Strategically located on the main east-west global shipping lines and offering draft of about 16 m, Cochin is destined to develop as the premier gateway to southern India, and also offering an alternative to Sri Lanka and Singapore for containers for being transshipped for the Indian market. ICTT was dedicated to the nation by Honorable Prime Minster Mr. Manmohan Sigh on 11th February 2011 and the first vessel OEL Dubai was handled on 18/02/2011.

Page | 18

2.4 INDIA GATEWAY TERMINAL

"The Jewel In The Crown Of The Queen Of The Arabian Sea" In March 2004, DP World successfully bid to take over the operations of Rajiv Gandhi Container Terminal (RGCT) and develop and operate the International Container Transshipment Terminal (ICTT) at Vallarpadam. A Special Purpose Vehicle, India Gateway Terminal Pvt. Ltd. (IGT) was formed for this purpose with an equity holding of 76% by DP World, 15% by Container Corporation of India (CONCOR), 5% by Chakiat and 4% by Transworld Group. The concession agreement between Cochin Port Trust and India Gateway Terminal was to operate the RGCT for a maximum period of 8 years and develop the International Container Transshipment Terminal at Vallarpadam, within this period and operate it for 30 years on a BOT basis at an estimated cost of Rs. 2400 Crores. After successful operations at RGCT and completing the first phase of ICTT, on 11th Feb 2011, the Honorable Prime Minister of India, Dr. Manmohan Singh dedicated to the nation her first transshipment terminal. ICTT being the first transshipment terminal in India, will play a key role in bringing about a change for the benefit of trade and commerce in the country. MISSION Mission of IGT is to provide World Class port services and to be a global player in operating and managing ports. IGT will provide value-for-money, high quality services to IGT customers through motivated and innovative employees. IGT people will be empowered to make optimum utilization of modern facilities, technology and resources while ensuring a reasonable return on investment.

Page | 19

VISION Vision of IGT is to be the Port of Choice for customers of IGT in each locations of IGT. To excel in operations, sales and customer service to IGT clients and to enhance the position of the local communities and countries in which we operate as gateways for global trade. MANAGEMENT TEAM Chief Executive Officer K K Krishnadas

Head Operations Sumesh Padmanabhan General Manager(IT) James Koshy

General Manager ( Engineering Services ) Srijit Vishwanath

General Manager ( Finance) Harish Krishnamoorthy

Head HR & Admin Girish C Menon

Head QHSE Rajeev Menon

Page | 20

2.5 ADVANTEGES OF ICTT

International Container Transshipment Terminal (ICTT), the first

transshipment terminal in India and the first container terminal to operate in a SEZ. DP world has set up a state-of-the art container terminal in Cochin to cater to the growing container trade in India. DP World is a global leader in container terminal operations and has large investments in ports along the Indian coastline. DP world had developed ICTT, on a build operate and transfer (BOT) agreement with Cochin Port Trust for a period of 30 years. With the advantage of the right location, an efficient and cost effective reach to the markets in India as well as the proximity to the major global sea route, ICTT is set to revolutionize the future of global trade.

GEOGRAPHIC ADVANGATE Figure no: 2.2 International Sea Route

For generations, Cochin has been the ideal location for International trade and commerce. The ancient port of Muziris, which dates back to 1st century BC, stands evidence to the history of international trade in Cochin.

Page | 21

With the commencement of the International Container Transshipment Terminal (ICTT), Cochin is poised to become India`s gatewatey to International markets, competing with other transshipment ports in the region. Located 11 nautical miles off the Middle East trade route and 76 nautical miles off the Suez route, Cochin's proximity to these trade routes makes the terminal attractive as a hub to the vessels operating in this route. A dedicated 4 lane highway connecting the major national highways, direct rail connectivity to the terminal and excellent Coastal connectivity to all the ports in the country offers multimodal options to the trade using ICTT. Furthermore barging operations using the wide inland waterway network of Kerala significantly reduces time and cost for the local businesses.

Page | 22

HINTERLAND Figure no: 2.3 Major Markets of ICTT Vallarpadam

Cochin Port is a natural gateway to the vast industrial and agricultural produce markets of South & West India. The Immediate hinterland of this port includes the state of Kerala, major commercial centers in Tamil Nadu like Tirupur, Coimbatore, Salem etc and parts of Karnataka including Bangalore, Mangalore and Hassan. The dedicated 4 lane highway connects to various national highways in India and the exclusive rail connectivity to the terminal, with the longest rail bridge in India spanning 4.62 kms gives the International Container Transshipment Terminal easy access to the major markets in India. Coastal connectivity to various ports in West and East coast of India and barging operations using the inland water ways of Kerala,
Page | 23

gives the terminal safer and eco friendly connections to the markets, seldom seen in most other terminals. PREFERRED PORT ICTT is the first dedicated transshipment terminal in India and the first terminal to operate in a SEZ. Located 11 nautical miles off the Middle East trade route and 76 nautical miles off the Suez route, Cochins proximity to these trade routes makes the terminal attractive as a hub to the vessels operating in this route.ICTT boasts of an infrastructure second to none in India. When fully developed ICTT will be the largest single operator container terminal in India. THE FACTORS WHICH MAKE ICTT SPECIAL: Faster Vessel turn around: The 4 Super Post Panamax Quay cranes and 2 Mobile Harbor Cranes, both capable of twin lifts ensure faster loading and discharge from vessels. Faster Truck turn around: With 15 RTGCs, 3 Reach Stackers and automated yard management is resulting in speedy container delivery. Easy documentation: ICTT documentation centre is has been adequately staffed to ensure faster minimum waiting time for trucks. The documentation procedures have been simplified. An eForm13 has been proposed, to further reduce the work and time at the documentation centre. Multi modal connectivity: ICTT is blessed with multimodal connectivity few terminals can boast of. A dedicated 4 lane highway connects to NH-17 through Mangalore, Goa to Mumbai and NH-47 through Coimbatore, Salem to Bangalore and NH 49 to Madurai. Direct rail connectivity to the terminal with the longest rail bridge in India spanning 4.62 kms connects ICTT to markets like Coimbatore, Bangalore, Chennai, Hyderabad, Nagpur, Delhi etc. Coastal connectivity to the ports in the west coast of the country offers multimodal options to the trade using ICTT.

Page | 24

 Barging operations using the wide inland waterway network of Kerala, which can significantly reduces time and cost for the local businesses is also on the way. Terminal Operating System: ICTT uses Navis Terminal Operating System (NTOS), which is the most widely used TOS across the globe. Navis SPARCS, our real time container management software solution is the leading container management software solution for real-time graphical planning and control of container terminals, and has been embraced as the industry standard by container terminal operators worldwide. Navis Express our database management system optimizes productivity by managing and maintaining terminal business transactions and data processing while accurately recording and invoicing all transactions and services. Express automates your bookings, billing, data exchange and reporting functions while capturing a complete history of all transactions and work. Dynamic reporting capabilities put key information at the terminal managers' fingertips, enabling them to track performance, improve customer service and increase profitability. Round the clock terminal operations: The terminal operates 24/7 x 365 days. There are no closed holidays for the terminal. Flexible cut off time: Export containers can be gated in 6 hours prior to berthing of the nominated vessel. Relaxation on case-to-case is allowed on Special Service Request (SSR). This allows last minute shipments to connect to desired vessel. Theft/pilferage-free operations: Round the clock inside terminal security at strategic locations ensure theft and pilferage free operation. State-of-the art work shop: The state-of-the art engineering work shop ensures maximum up-time of the equipments. E Invoicing: Planning to introduce e invoicing in which registered lines can log in and get details of each container live.
Page | 25

SMS tracking: Vessel details and containers can be tracked by sending SMS.

2.6 TERMINAL INFORMATION

A container terminal is a facility where cargo containers are transshipped between different transport vehicles, for onward transportation. The transshipment may be between container ships and land vehicles, for example trains or trucks, in which case the terminal is described as a maritime container terminal. Alternatively the transshipment may be between land vehicles, typically between train and truck, in which case the terminal is described as an inland container terminal. The Kochi International Container Transhipment Terminal (ICTT), locally known as the Vallarpadam Terminal, is a container trans-shipment facility which is part of the Kochi Port. It is the only trans-shipment port in India, and is situated in Kochi, in the state of Kerala. Being constructed in three stages, the first phase of the terminal was commissioned on Feb 11, 2011. This can handle cargo up to one million TEUs (twenty-foot equivalent units) per annum. On completion of the third phase, the terminal will be able to handle 4 million TEUs of cargo per annum. The terminal is presently being operated by the Dubai Ports World (DPW), which will operate it for 30-years after which the control will come back to the Cochin Port Trust. DP World has estimated that the total initial investment required will be approximately US$20 million which includes the immediate provision of four RTGs and two Mobile Harbour Cranes to the Terminal -to improve yard handling, truck turnaround time and quayside operations. Strategically located on the main east-west global shipping lines and offering draft of about 16 m, Cochin is destined to develop as the premier gateway to southern India, as also offering an alternative to Sri Lanka andSingapore for containers being transshipped for the Indian market.

Page | 26

Vallarpadam Terminal (ICTT) is the largest single operator container terminal in India and the first in the country to operate in a special economic zone. The terminal makes Kochi a key centre in the shipping world reducing Indias dependence on foreign ports to handle transshipment.

In the first phase there will be 600 m Quay length and a draft of more than 15 m , when the terminal may handle 1 million TEU container annually by the end of 2012.

In the second phase the capacity will be enhanced to 3 million TEU's by the end of 2014.

In the third phase the terminal may handle even up to 5.5 million TEU's. 3200 crore.

The total cost of the project is estimated at

Page | 27

Table no: 2.4 TERMINAL SPECIFICATIONS: PHASE 1

Quay length

600 meters

Terminal size

40 hectares

Depth along side

16 meters (MSL)

Max draft

14.5 meters

Max LOA

350 meters

Capacity

1 million TEUs

Container yard

2500 TEU ground slots

Rail tracks

Reefer points Source: www.igtpl.com

450 points (415 V, 3 phase AC)

Page | 28

Table no: 2.5 TERMINAL SPECIFICATIONS: FINAL

Quay length

1800 meters

Terminal size

150 hectares

Depth along side

16 meters (MSL)

Max draft

14.5 meters

Max LOA

350 meters

Capacity

4 million TEUs

Container yard

15000 TEU ground slots

Rail tracks

Reefer points Source: www.igtpl.com

450 points (415 V, 3 phase AC)

Page | 29

Table no: 2.6 EQUIPMENT DETAILS: PHASE 1A Supper Post Panamax Quay Cranes Mobile Harbor Cranes Rubber Tyred Gantry Cranes Reach Stackers Empty Container Handlers Inter-Terminal Vehicles (leased) Forklifts Hydra Source: www.igtpl.com Table no: 2.7 EQUIPMENT DETAILS: FINAL Supper Post Panamax Quay Cranes Mobile Harbor Cranes Rubber Tyred Gantry Cranes Reach Stackers Empty Container Handlers Inter-Terminal Vehicles (leased) Forklifts Hydra Source: www.igtpl.com 16 2 54 3 2 100 4 1 4 2 15 3 2 30 4 1

Page | 30

Table no: 2.8 MILE STONES ICTT VALLARPADAM

Maximum Import TEUs in a month Maximum Export TEUs in a month Maximum Restow TEUs in a month Maximum Transhipment TEUs in a month Maximum Moves in a month Maximum TEUs in a month Maximum Productivity in a month Maximum Moves in a shift Maximum Productivity of QC1 in a shift

15205 (Mar 2011) 13404 (JUNE 2011) 2672 (May 2011) 6239 (JUNE 2011) 30225 (JUNE 2011) 36487 (JUNE 2011) 28.76 (JUNE 2011) 1172+28 H/C(WIDUKIND11185) (30 JUNE 2011 II) 348+6H/C(WIDUKIND 11185) ( 30 JUNE 2011 II) 321+2H/C+(CMA CGM BEIRUT11150)(03JUNE 2011 3rd shift) 302+8 H/C(MRON11129) (16 MAY 2011 3rd shift) 313+8 H/C(KAMA11129) (16 MAY 2011 3rd shift) 62 (QC2) ODUB 11189-29 June 2011-Operator- Manikanadan

Maximum Productivity of QC2 in a shift

Maximum Productivity of QC3 in a shift Maximum Productivity of QC4 in a shift Maximum Moves in a hour
Source: www.igtpl.com

Page | 31

Table no: 2.9 MILE STONES LARGEST VESSEL HANDLED IN ICTT & ITS FEATURES Vessel Agent LOA Beam GRT NRT TEU Capacity Draft Berthed
Source: www.igtpl.com

MV. MAERSK SEMBWANG BTL 318.79 40 79702 42929 6479 11 21-July-2011 18:45

Table no: 2.10 MILE STONES BEST GROSS PRODUCTIVITY FOR A VESSEL Vessel CVIA Gross Productivity Net Productivity Berth Productivity Work Productivity Berthed
Source: www.igtpl.com

MV SEAWAYS VALOUR 11131 51.2 51.2 75.27 91.42 05-May-2011 1:50

Page | 32

Table no: 2.11 MILE STONES BEST BERTH PRODUCTIVITY FOR A VESSEL

Vessel CVIA Gross Productivity Net Productivity Berth Productivity Work Productivity Berthed
Source: www.igtpl.com

MV MARESK SEMBAWANG 11121 33.6 40.45 114.11 119.34 21-July-2011 18:45 Hrs

Table no: 2.12 MILE STONES MAXIMUM MOVES IN A VESSEL

Vessel CVIA Moves Berthed

Source: www.igtpl.com

MV WIDUKIND 11185 1681 30-June-2011 12:30 Hrs

Page | 33

Table no: 2.13 MILE STONES MAXIMUM TEUs IN A VESSEL Vessel CVIA TEUs Berthed
Source: www.igtpl.com

MV MAERSK RONNEBY 11085 1763 02-April-2011 08:45

Table no: 2.14 MILE STONES TRAIN HANDLING Fastest handling of a train
Source: www.igtpl.com

19 moves in 20 minutes (12April-2011)

Page | 34

CHAPTER 3

Page | 35

3.1 OPERATION DEPARTMENT

Operations and planning department are like two sides of a coin and play a vital role in the daily activities of the terminal. IGT provide world class service to customers through computer integrated stowage and terminal management system (Sparcs-Navis). While Planning gives the basic support and information on documentation, statistics, and container movement details, Operations executes the same accurately and physically ensures the smooth flow of work, based on the feedback given by Planning. This applies to all movements whether it is vessel to yard or yard to vessel or internal movements within the terminal etc. No container movement is executed without the knowledge of Planning. The professional team is committed to give maximum support to their valued customers. The department handles all the container handling activities from the gate to the yard and yard to the vessel. The operations are controlled by the tower control which is at the 4th floor of the building. The people involved in operations are the yard planners, vessel planners, tower control and the superintendents. The field duty is performed by the supervisors, feeders, crane operators and checkers. This department is responsible for monitoring the yard activities going on in the yard and wharf. Operations are controlled by tower control as they are in direct contact with RTG, QC Operators and all supervisors in the yard and wharf. Their task is to monitor operational activities in the terminal and assign work to all equipments. They control the moves per hour and also see that no equipment is idle. Operations/Planning department are the backbone of the terminal activities. Some activities which come under the Operation/Planning department are as follows: Pre-gate operation : Documentation staff will enter the information in the CMS data-base (EXPRESS) Gate Operation: The export receipt and import delivery updation done in the system upon the receipt of customs clearance documents and ensure datas were accurately reflected in the CMS. Yard plan: Arranging an international standard of yard planning through sparcs system.

Page | 36

Vessel Plan: Ensure to get maximum productivity, satisfy the vessel master and ensure fastest turn around of the vessel. Documentation: co-ordinate with vessel agent and other customers and give maximum support. Equipment control: arrange smooth delivery and receipt of containers in the yard and committed to reduce the truck turnaround time. Container handling in the yard and vessel: Ensure safe and smooth handling of containers in the yard.

FUNCTIONS OF TERMINAL OPERATION DEPARTMENT Formulates, recommends and updates rules and regulations, standards, systems and procedures in the operation and efficient delivery of terminal services in ports. Evaluates, studies and proposals submitted by other departments/agencies in relation to terminal operations. Assesses the impact of terminal operations system in terms of economy and efficiency relative to the provision of terminal operational requirements and recommends appropriate measures and standards. Conducts researches and studies on developments in terminal operations technology, and recommends innovations on terminal service deliver requirements. Regulates terminal operations. Undertakes/assists in the performance evaluation of cargo handling operations. Provides technical assistance to port users and other agencies relative to the implementation of terminal operations policies, regulations and systems and procedures.

Page | 37

Figure no: 3.1 DEPARTMENT STRUCTURE

Page | 38

3.2 PLANNING
Planning means looking ahead and chalking out future courses of action to be followed.It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said Well plan is half done. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur. Planning plays a major role in the operations of a container terminal. It helps for the smooth workings of terminal. The planning of a terminal is divided into three segments they are:

Planning

Berth planning

Vessel planning

Yard planning

Page | 39

a) Berth planning b) Vessel planning c) Yard planning Berth planning is the first stage of planning. Berth planners need to assign a berth for an incoming vessel. Following the arrival of a vessel at the terminal, the ship planners need to determine the sequence of unloading and loading containers from/ onto the ship (ship/stowage planning). The yard planners decide the locations of the container in the yard so that the containers are efficiently transported between yard, gate and quay to minimize the number of reshuffles and operational cost. During the execution of operation, the terminal operators are aware that operational exceptions are unavoidable and they need to ensure proper procedures/contingency plans are in place to handle different scenarios.

3.3 BERTH PLANNING

Berth planning is the first stage of planning. Before a vessel arrives, the terminal planner has to allocate a berth to the incoming vessel. The vessel will occupy the berth during its port stay and it is important for the berth planner to plan the berth near to its yard locations where most containers for this specific vessel are located so that the distance travelled by the trucks can be minimized and the vessel can depart on-schedule. Information required for preparing the berth plan a) Pro-forma schedule/actual arrival b) Moves and crane split information c) Desired sailing time d) Changes to cargo setup

Page | 40

Figure no: 3.2 VESSEL SHEDULE & BERTHING ALLOCATION PLAN

Page | 41

Points to be considered before preparing the berth plan a) Any delays affecting the vessel b) Yard space and equipment availability c) Where to berth the vessel d) When to berth the vessel e) How to work the vessel

3.4 VESSEL PLANNING

Vessel planning is the process of deciding how to load and unload container ships safely and effectively. The purpose of vessel planning is to provide a plan that delivers the maximum moves per hour on given vessel, with the given resources of machines, yard and personnel. Before a vessel arrives, shipping lines transmit the stowage plan for all ports of a vessels rotation to the terminal via Electronic Data Interchange (EDI). The terminals ship planner uses the stowage instruction to plan the loading and discharging sequence of containers to/from the ship while maintaining the ship stability. Although, the main objective of stowage planning is to maintain the ship stability, a good vessel planner should take into consideration both the ships sections to be planned and the container locations in the yard, so that the number of rehandles in the yard can be reduced. A modern vessel today carries around 3000-18000 TEUs of containers. The assignment of QCs to a particular incoming vessel depends on container volume or throughput, vessel port stay, priority service and resource availability. Due to high throughput, multiple QCs are assigned to work on the same vessel at any given time resulting in crane interference and possible subsequent reduction of individual crane performance. Therefore, key decisions that the ship planner has to make at the tactical level are the number of QCs that should be working simultaneously on one ship, the level of QC interference and its impact on terminal efficiency and various ways of reducing crane interference. The crane load distribution should be planned before starting operations

Page | 42

Figure no: 3.3 Vessel Plan

Source: IGTPL Operation Department

Figure no: 3.4 Vessel Plan Bay View

Source: IGTPL OPERATION DEPARTMENT

Page | 43

Vessel Planning Restrictions a) LOA (Length Over All) of the vessel b) Ships stability and draft restrictions c) Window services d) Late arriving cargo e) Undeclared cargo f) Vessel damages that influences work sequences g) Uneven distributed cargo plan

3.5 YARD PLANNING

Yard planning is the process to decide how best to assign containers to yard blocks in order to achieve a balance in the work load. At the detailed level, the objective of the container storage and stacking problem is to minimize the vessel port stay, operational cost and the number of rehandles. Containers can be classified either as general purpose or empty containers. Empty containers are usually stored separately and can be stacked higher since they are lighter. Depending on their content, general purpose containers can be further divided into normal, referee and dangerous good containers. While handling the dangerous good containers, the terminal needs to observe their International Maritime Dangerous Goods (IMDG) Code and stack them accordingly. Referee containers can only be stored in a yard with power supply. Efficiency of stacking is fundamental in carrying out effective terminal operations and depends, among other things, on storage planning of containers and height of stacking. At the tactical level, operators have to determine the average stacking height for the storage of containers so that the number of rehandles can be minimized. Although a policy of storing containers as low as possible minimizes the number of rehandles, it may result in low yard space utilization. Therefore, tradeoffs between handling effort for higher stacking and space requirements need to be judged carefully.

Page | 44

Figure no: 3.5 Yard Layout of ICTT Vallarpadam

Source: IGTPL Operation Department

Page | 45

Table no: 3.1 YARD CONDITION OF ICTT AS ON MONDAY, JULY 25, 2011 MA X TIE R 4 4 4 4 4 4 4 4 4 4 4 4 4 3 55 NO OF GROUN D SLOTS 210 222 222 108 78 222 222 102 96 222 222 222 196 162 2506 In Yar d TEU s 626 644 600 319 75 651 675 301 127 624 600 456 511 363 657 2 In Yar d TEU s 18 200 58 3

NO : 1 2 3 4 5 6 7 8 9 10 11 12 13 14

YARD

CATEGO RY EXP EXP IMP IMP IMP/EXP IMP IMP IMP IMP/EXP IMP EXP EXP IMP IMP

BAY S 35 37 37 18 13 37 37 17 16 37 37 37 49 54 461

MAX Capaci ty 840 888 888 432 312 888 888 408 384 888 888 888 784 486 9862

Availab le 214 244 288 113 237 237 213 107 257 264 288 432 273 123 3290

2A 2B 2C 2D 2D(RFR) 2E 3E 3D 3D(RFR) 3C 3B 3A R(RTGC) R(STACKE R)

EMPTY YARD Sl YARD NO :

CATEGO RY

BAY S

MA X TIE R 1 3 3 3

NO OF MAX GROUN Capaci D ty SLOTS 17 156 66 28 17 468 198 84

Slots Availab le

1 2 3 4 5 6 7

1M 2M 4M 5M 3M B3 HAZ

MTY MTY MTY MTY

17 39 33 14

0 268 140 81

103 GRAND TOTAL

Source: IGTPL Operation Department

10 65

267 2773

767 10629

279 685 1

489 3779

564

Page | 46

Figure no: 3.6 ICTT SATELLITE VIEW

Source: IGTPL Operation Department

FACTORS AFFECTING YARD PLANNING I. Physical Factors Yard layout Block and Slot IDs Reefer points

Page | 47

II.

Operating rules Stacking height Traffic flows Equipment specialties Travel distance

III.

Stacking rules Hazardous 20/40/45 feet Tank specials

IV.

Current inventory Container in stack Prepositioned Guaranteed slot Assigned to move

V.

Execution End-to-End flows Work progress Equipment availability Terminal congestion Independent jobs

VI.

Planned work Ship load/discharge Rail load/discharge Gate receipt/delivery Internal moves Intra sub stack

VII.

Onward modes Berth planning Truck planning Actual arrival

Page | 48

CONSTRAINS OF YARD PLANNING Terminal layout Yard layout Equipment type Height limitations Slot configuration Import/Export stacks Weight rules Size/Type rules Segregation rules (IMDG class, Reefer, ODC etc.)

YARD STACKING STRATEGIES a) Split per service and allocated fixed areas Figure no: 3.7 Split Per Service and Allocated Fixed Areas

In this method of planning the yard planner will allocate slot for the container in the fixed area only that area is fully reserved for the particular vessel or service. This method of planning helps to avoid delays in loading and discharging of containers from the vessel.

Page | 49

b) Split per service per slot (Random) Figure no: 3.8 Split Per Service per Slot (Random)

This method of yard planning helps to stack maximum number of containers in the yard. Here the containers are stacking according to the slot availability and random wise such method of stacking may create delays in container handling

Importance of Yard Plan and Yard Operation Good Planning and control of yard operations is the key to achieving high terminal efficiency. The importance of yard plan and operations are following Yard plan and operation is the major determinant of terminal efficiency Nearly all moves on the terminal originate/terminate in the yard Most dynamic operation on the terminal with complex processes Subject to wide fluctuations in daily, monthly & seasonal demand
Page | 50

 Large user of land, expensive and limited asset Not easy, in short term to increase the capacity Source of most unproductive moves and additional lost for the terminal

Page | 51

CHAPTER 4

Page | 52

FINDINGS AND SUGGESTIONS

During the 45 days of my internship in ICTT Vallarpadam I was exposed to lot of activities and also to be a part of the team and take part in the daily activities. Every day I witnessed a new real time scenario and also came across few problems which were affecting the operations.

4.1 FINDINGS
Dwell time increasing due to lack of CFS Yard congestion especially in second shift Trucks waiting in pinning area for customs clearance Operators and other workers facing communication problems with superiors due language barrier Lack of speakerphone with yard supervisor create delays in communication with truck drivers

4.2 SUGGESTIONS
Provide speakerphone for yard supervisor During yard congestion increase the number of yard supervisors Reduce dwell time of import containers

Page | 53

4.3 CONCLUSION
The study about the role of planning in operations of container terminal at ICTT Vallarpadam was conducted successfully. The process of preparing plans for berth, vessel and yard were studied detail and various problems affecting the planning are identified. Possible suggestions have been made. Container terminal operations are capital intensive and sophisticated. An efficient terminal operation requires that important decisions be taken at the strategic level, namely, choice of terminal location, determining yard layout, choice of handling equipment and strategy/ policies for storage and stacking of containers. Forecasting terminal demand and performing capacity planning are crucial in determining the number and type of material handling equipment such as YCs, berths, QCs and transport vehicles. With the increase of world trade volume and introduction of larger container ships, there will be a need for investment in terminal equipments, as well as for dredging. There are plans of building new container ships as big as 18,000 TEUs, a project called the Malacca-Max. Larger and larger container ships will operate at fewer and fewer terminals. The infrastructure improvements and super structures needed for bigger container terminals require higher & higher cost of operations.

Page | 54

REFERENCE
Books and publications

1. Container Terminals and Cargo Systems By Kap Hwan Kim and Hans-Otto Gunther 2. PhD thesis Optimal Planning of Container Terminal Operations By Nang Laik, Ma 3. Employee hand book of IGTPL Websites 1. www.igtpl.com 2. www.wikipedia.com 3. www.dpworld.com

Page | 55

APPENDIX
GLOSSARY

BAT: Bay Allocation Ticket. Bay: A vertical division of a vessel from stem to stern, used as a part of the indication of a stowage place for containers. The numbers run from stem to stern; odd numbers indicate a 20 foot position, even numbers indicate a 40 foot position.

Bay Plan: A stowage plan which shows the locations of all the containers on the vessel. Berth: A place in which a vessel is moored or secured; place alongside a quay where a ship loads or discharges cargo. Bottleneck: A stage in a process which limits performance. Breakbulk: Loose, non-containerized cargo stowed directly into a ships hold. Container: Steel or aluminum frame forming a box in which cargo can be stowed meeting International Standard Organization (ISO)-specified measurements, fitted with special castings on the corners for securing to lifting equipment, vessels, chassis, rail cars, or stacking on other containers. Containers come in many forms and types, including: ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in width, and 8.5 feet or 9.5 feet in height. Container Freight Station (CFS): A dedicated port or container terminal area, usually consisting of one or more sheds or warehouses and uncovered storage areas where cargo is loaded (stuffed) into or unloaded (stripped) from containers and may be temporarily stored in the sheds or warehouses. Container vessel: Ship equipped with cells into which containers can be stacked; containerships may be full or partial, depending on whether all or only some of its holds are fitted with container cells.
Page | 56

Container terminal: An area designated for the handling, storage, and possibly loading or unloading of cargo into or out of containers, and where containers can be picked up, dropped off, maintained, stored, or loaded or unloaded from one mode of transport to another (that is, vessel, truck, barge, or rail). Customs House Agent (CHA): CHA is a person engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operation. They are licensed to enter the customs premises and clear the goods through Customs/Port after payment of all duties and port charges on behalf of the importer. Similarly the CHA brings in the export cargo and completes all documentation for loading on behalf of the exporter.. Dock or quay: A structure attached to land to which a vessel is moored. Draft (or draught): The depth of a ship while in the water. Measured as the vertical distance between the waterline and the lowest edge of the keel. Electronic data interchange (EDI): Transmission of transactional data between computer systems. Gantry crane: A crane fixed on a frame or structure spanning an intervening space typically designed to traverse fixed structures such as cargo (container) storage areas or quays and which is used to hoist containers or other cargo in and out of vessels and place or lift from a vessel, barge, trucks, chassis, or train. Gateway: A point at which freight moving from one territory to another is interchanged between transportation lines. Intermodal: Movement of cargo containers interchangeably between transport modes where the equipment is compatible within the multiple systems. Lashing: It is the use of strapping, chains, rods etc to stabilize and secure containers loaded onto the ship. Each ship has its own lashing plan that takes into account: the stability of the ship, containers weights container types, the weather in areas sailed and the size of ship.

Page | 57

Liner: A vessel sailing between specified ports on a regular basis. Mobile crane: General purpose crane capable of moving on its own wheels from one part of a port to another. Moor: To attach a ship to the shore by ropes. Pilotage: The act of assisting the master of a ship in navigation when entering or leaving a port or in confined water. Ramp: An artificial inclined path, road or track along which wheeled vehicles, cargo and trailers may pass for the purpose of changing their elevation and facilitating the loading and unloading operation. RDT: Radio Data Terminal. Rubber-tired gantry (RTG) or rubbertired container gantry crane: Gantry crane on rubber tires typically used for acceptance, delivery, and container stacking at a container yard. SPARCS: Synchronous Planning and Real Time Control System.

Spreader: A piece of equipment designed to lift containers by their corner castings. Stevedore: Individual or firm that employs longshoremen (or dockers, dock workers, or port workers) to load and unload vessels. Straddle carrier: Type of equipment that picks up and transports containers between its legs for movement within a container terminal. Transshipment: A distribution method whereby containers or cargo are transferred from one vessel to another to reach their final destination, compared to a direct service from the load port of origin to the discharge port of destination. This method is often used to gain better vessel utilization and thereby economies
Page | 58

of scale by consolidating cargo onto larger vessels while transiting in the direction of main trade routes. Turnaround time: The time it takes between the arrival of a vessel and its departure from port; frequently used as a measure of port efficiency. Twenty-foot equivalent unit (TEU): Container size standard of twenty feet. Two twenty-foot containers (TEUs) equal one FEU. Container vessel capacity and port throughput capacity are frequently referred to in TEUs. VMT: Vehicle Mounted Terminal. Yard: Location where containers are temporarily stored. Yard Crane: Cranes used in the yard to load or unload containers onto or from prime movers.

Page | 59