JNPT ADMAP Report: SPJIMR

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Jawaharlal Nehru Port Trust (JNPT) Mumbai A Study of Port Operations: Administrative Context, Structure and Processes ADMAP Project Report 2013 Submitted By: Abhishek Singh (083)| Achint Arora (002)| Amit Otta (087)| Harshal Doshi (109)| Jagdeesh Mohan (034)| Kushal Jalan (119)| Nilotpal Ray (198)| Ramneek Bharadwaj (139)| Rohith TV (063)| Sajiv Sukumar (142)| Saransh Verma (146) Date: 19th February 2013


Dedicated to: ‘Dr. Uma Narain’ …Our Friend, Philosopher and Guide throughout the entire Project


ADMAP Project Report : JNPT, Mumbai 2013 ~Acknowledgement~ We take this opportunity to extend our most sincere and heart felt gratitude to the following persons who helped us to carry out the study at JNPT and structure this Report: S.P. Jain Institute of Management & Research, Mumbai:

Dr. M.L. Shirkant (DBA Harvard, Hon. Dean, SPJIMR): For having instituted the ADMAP Program into the pedagogy of SPJIMR, thus giving us an opportunity to study the administration of a large public organization like JNPT.

Dr. Uma Narain (Program Chairperson, ADMAP; SPJIMR): For being our Friend, Philosopher and Guide for the entire JNPT Project, right from arranging the visits, structuring the major takeaways from every visit to planning and execution of this report.

Jawaharlal Nehru Port Trust, Mumbai:

Mr. N. N. Kumar (IRS, Deputy Chairman, JNPT): For sharing with us the administrative detailing of JNPT and the future expansion plans of JNPT to make it a Multipurpose Port to improve upon India’s GDP and take part in Nation building.

Mr. A.P. Srivastav (IPoS, Chief Vigilance Officer, JNPT): For facilitating every visit of ours at JNPT and structuring our whole area of study w.r.t. the Container Terminal Operations. Sir also enlightened us about the major vigilance affairs which are important in the day to day port operations.

Mr. S. N. Maharana (Chief Manager, Operations; JNPT): For giving us an in depth knowledge about the details and intricacies of port operations and areas of improvement. This helped us to suggest some improvement measures to cater to those bottlenecks of JNPT Operations.

All JNPT Port Operations Personnel: Finally we would like to thank all the JNPT Port Operations personnel who have been so cooperative and inclusive with us during our visits. Special thanks to Mr. Datar and Mr. Mukherjee for showing us around the areas of major port operations.


ADMAP Project Report: JNPT, Mumbai 2013

Table of Contents i) Executive Summary.............................................................................................................................1 1.0) Introduction ............................................................................................................................................................... 3 1.1 About Jawaharlal Nehru Port Trust (JNPT) Mumbai ............................................................................................ 3 1.2 Mission and Vision ....................................................................................................................................................... 4 1.3 Overview of Port Operations ..................................................................................................................................... 4 1.4 Scope of Study: Container Terminal Operations .................................................................................................... 6 2.0) Study of Organizational Structure ...................................................................................................................... 8 2.1 Departments .................................................................................................................................................................. 8 2.2 Responsibility and Authority ...................................................................................................................................... 9 2.3 Special Section: Duties and Responsibilities of Chief Vigilance Officer (CVO) ............................................. 13 2.4 Organogram for JNPT .............................................................................................................................................. 15 3.0) Study of Process and Planning ...........................................................................................................................16 3.1 Operating Processes at JNPT ................................................................................................................................... 16 3.2 Operating Technologies at JNPT ............................................................................................................................ 17

3.3 Issues and Recommendations for Process Improvement............................................................... 17 3.4 Special Emphasis: Corporatization of JNPT Process and Planning .............................................. 19 3.5 Process-Organization Fit at JNPT: McKinsey 7S Framework ...................................................... 22 4.0) Study of Inland Container Depots (ICD) and Container Freight Stations (CFS).............................. 24 4.1 ICD Portfolio at JNPT .............................................................................................................................................. 24 4.2 Activities at ICD Terminal ........................................................................................................................................ 24 4.3 CFS Portfolio at JNPT .............................................................................................................................................. 25 4.4 Activities at CFS Terminal ........................................................................................................................................ 25

4.5 Problem Statement and Recommendations................................................................................... 26 5.0) Study of Container Terminal Operations ....................................................................................................... 28 5.1 Problem, Process and Findings ................................................................................................................................ 28

5.2 Productivity Improvement through Crane Operations .................................................................. 29 5.3 Recommendations.......................................................................................................................... 33 6.0) Conclusion ............................................................................................................................................................... 35 6.1 Future Expansion Plans ............................................................................................................................................ 35

6.2 McKinsey Staircase Growth Model ................................................................................................ 37 6.3 Financial Analysis ....................................................................................................................................................... 38


ADMAP Project Report: JNPT, Mumbai 2013 7.0) Exhibits ..................................................................................................................................................................... 40 Exhibit 1: Glossary of terms related to Port Operations ........................................................................................... 40 Exhibit 2: Isometric Map of JNPT ................................................................................................................................ 43 Exhibit 3: Snapshot of Facilities at JNPT ..................................................................................................................... 44 Exhibit 3a: Container Traffic Growth from 1989-90 to 2011-12 ............................................................................. 45 Exhibit 4: JNPT Delegation of Powers: Non-Establishment Matters ..................................................................... 47 Exhibit 5: Sample Traffic Handling Log Sheet ............................................................................................................ 48 Exhibit 6: Sample JNP Container Terminal: Daily Performance Report ................................................................ 49 8.0) Appendix .................................................................................................................................................................. 50

Appendix 1: Work Distribution Chart (ADMAP Group Members) ..................................................... 50 Appendix 2: Method of Data Collection .............................................................................................. 52 Appendix 3: Log of JNPT Visits .......................................................................................................... 53 Appendix 4: Team ADMAP-JNPT: Some light moments ........................................................................................ 54 9.0) References ................................................................................................................................................................ 55

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ADMAP Project Report: JNPT, Mumbai 2013

i) Executive Summary:  Total traffic of 65.75 million tonnes and container traffic of 4.32 million TEUs Highest ever since the inception of the Port.  Target of 20 million TEU Capacity by 2020-21 through huge expansion projects in the form of Private Public Partnership.  Growing at a CAGR of 19.72%, soon to become a multipurpose port and ensure first position among the ports in South Asia.

And the potential goes much beyond this. Jawaharlal Nehru Port Trust (JNPT), Mumbai is right at the cusp of a stupendous growth trajectory and it is soon to position itself as one of the leading ports of South Asia in the maritime map. As a part of the Assessment and Development of Managerial Potential (ADMAP) Program at SPJIMR, scope of this report lies in studying the administrative context and administrative structure of JNPT Mumbai, in the special context of Port Operations (Container Terminal). This report makes an attempt to critically review the administrative structures and systems of the Organization to measure their efficiencies towards achieving the Organizational Objectives. Analysing the gap between the target objectives and the present scenario, this report tries to put forward some recommendations which will help the Organization to eventually bridge the gap. Study of the Organizational Structure delves deeper to find out how the different divisions of JNPT viz. Operations, Port Planning & Development, Finance, Marine and General Administration contributes synergistically towards the Organizational Goal. It assesses the responsibilities and authorities of the positions at different levels of hierarchy, thereby mapping the decisions with the administrative decision making authorities. Organizational Structure of JNPT juxtaposes an eclectic blend of hierarchy, bureaucracy and departmentalization aligned towards a common goal. Study of the Process and Planning of the Port Operations discovers high end bureaucracy and structure causing hindrance to tap the untapped potential of the Port. Hence, this report recommends corporatization of certain processes of the port operations in line with the Navarata PSU’s of India. Implementation of a high end ERP System and an Automated Gate Clearance System for container trucks to improve upon the operational efficiency of the Port have also been suggested by this report. Study of Inland Container Depots (ICD) and Container Freight Stations (CFS) analyses the ICD and CFS portfolio of JNPT and thereby proposes recommendations to improve upon them through collaboration with the NSICT and GTICT Wings. Proposal to improve upon the rail traffic 1|Page


ADMAP Project Report: JNPT, Mumbai 2013 system at JNPT to make it handle the major part of the cargo (currently which is hovering around 20%) has also been put forward in this report. Finally the specific study of the Container Terminal Operations proposes some latest innovations in the field of technology through crane automation which can be applied to the existing structure of JNPT Operations. It is estimated that the proposed C-ASC Crane Automation System will increase the bottomline profit margin in the long run by close to 25%. The concluding portion of the report envisages the future expansion plans of JNPT which will add tremendously towards its business volume. The construction of a dedicated freight corridor (western) from Dadri (Uttar Pradesh) to Mumbai (JNPT) by the Dedicated Freight Corridor Corporation Limited (DFCCIL) of India brings with it a huge growth potential for the Port, both in terms of business and nation building. Apart from studying the Administrative Context and Administrative Structure this report is an honest attempt to analyse the kaleidoscopic dimension of growth opportunities and challenges lying ahead of JNPT waiting to be leveraged through synergy with the Nation.

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ADMAP Project Report: JNPT, Mumbai 2013

1.0 Introduction: 1.1 About Jawaharlal Nehru Port Trust (JNPT), Mumbai:

Jawaharlal Nehru Port Trust (JNPT), Mumbai was conceptualised to decongest the Mumbai port and serve as a hub port for this region. The JNPT trust was formed in 1982 and the construction started in 1984. An investment of Rs. 1109 crores was made over an area spread over 2584 hectares and the port operations commenced on 26th May 1989 under the ambit of then Prime Minister, Rajiv Gandhi. This port is well connected to the Mumbai mainland through rail network and roadways. The port also has accessibility through sea route with non-residential employees availing ferry services as transport facility.

Figure 1: Berthing Terminals at JNPT JNPT was majorly formed as a bulk storage port for Food and Fertilizers, which at one time were major import items of India. As of today the formerly Nhava Sheva port has been categorised into three operational terminals: 

JNPT (Jawaharlal Nehru Port Trust) – The operations of this port are held under the ambit of the Government of India. The port quay length is 680m and caters to medium to small sized container vessels. The capacity of this terminal is 1.1 MnTeus( Million Tonnes per year) APM (Formerly Gateway Terminal of India) – A consortium of Maersk and Concor. This terminal is operationalized under BOT (Build Operate Transfer) model. The quay length of this port is 712m. The capacity of this terminal is 1.8 MnTeus( Million Tonnes per year)

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ADMAP Project Report: JNPT, Mumbai 2013 

DP World (Formerly NSICT) – The operations of this port is managed by DP World (Dubai Port World) and the quay length is 600m as of now and another 330m has been allotted to them after a bidding process to further the port operations. The capacity of this terminal is 1.2 MnTeus( Million Tonnes per year) A liquid cargo terminal commissioned on BOT basis to BPCL and IOCL in October 2002,it has been built on a cost of Rs.200 crores and has a capacity of 5.5 million tonnes per annum

As of today, two more terminals have been proposed for increasing the capacity of JNPT. One would be a marine terminal for handling Liquid cargo such as chemical exports and imports and the other terminal would be built on the so far unexplored Nhava Island.JNPT is the largest port in India in handling container traffic (55.63%) in 2011-2012 and is the only port to have ISO certifications for Quality Management, Information security Management, Environmental Management and Occupational health and Safety. The major workforce in this port is local people who have been displaced by the establishment or operations of this port. 1.2 Vision and Mission: Vision To be recognized as India’s premier container port providing integrated logistics to the best interest of trade and customers. Mission The port is committed to meeting the needs and expectations of its customers through: Equipping itself with state-of-the-art equipment and technology and efficient, professional and computer integrated terminal operation systems. Conforming to international standards and offering competitive rates. Ensuring security and safety of life, equipment and cargo. Perceiving the principles of sustainable development and courtesy to customers. 1.3 Port Operations: If we look at the current status of Port Sector in India, JNPT Ranks fourth among them in terms of handling port traffic after Kandla (Gujrat), Vizag (Andhra Pradesh) and Chennai (Tamil Nadu) ports (see Figure 2). Yet in the year 2011-2012, JNOT has shown an unprecedented development in terms of TEUs handled (4.32 million). JNPT remains the largest among the major ports of India, in terms of container handling with a market share of 55.63 percent. The broad functions of the port includes Handling Vessels, Loading/Unloading and Storage of Cargo and Warehousing Facilities. Commodities of cargo includes fertilizers and fertilizer raw materials, dry bulk cargo, break bulk cargo, POL and other liquid cargos. Types of port operations include Grab or continuous unloading, Break Bulk and Project Cargo handling by Harbour Crane and container handling cranes. JNPT is the first terminal in India to achieve Triple Certification through DNV (see Figure 3). 4|Page


ADMAP Project Report: JNPT, Mumbai 2013

Figure 2: Government controlled Major Ports in India (2011-2012)

ISO CERTIFICATIONS BY JNPT TILL 2012 ISO 9001:2008 Standards for Quality Management System, ISO 27001:2005 Standards for Information Security Management System, ISO 14001:2004 for Environmental Management System (obtained in 2011), OHSAS 18001:2007 for Occupational Health & Safety Management System (obtained in 2011),

Figure 3: ISO Certifications by JNPT till 2012 For existing port facilities at JNPT and Container traffic growth trend, refer Exhibit 3 and 3a. 5|Page


ADMAP Project Report: JNPT, Mumbai 2013 1.4 Scope of Study: Container Terminal Operations: As of 2009, JNPT used to handle total traffic of 57.28 Million Tonnes out of which `51.98 Million Tonnes used to be container traffic, which is 90.64% of the total traffic. A recent forecast for traffic forecast for Indian ports has predicted an increase to 680 Million Tonnes for containers only from current traffic of 161 Million tonnes in the next 15 years, which further underwrites the importance of container handling ports like JNPT.

Figure 4: Container Yard at JNPT Port Operations: 

A weekly schedule is planned for the incoming and outgoing vessels which keeps an account of the incoming and outgoing time of the vessels. This is prepared after intimation of the arrival of vessel in the pre-berthing meeting The shipping line submits the berthing application after which a pilot who can sail the vessel to the port, goes to the vessel in the sea, which is anchored around 20 Km from the port. This pilot then brings the vessel to the port for container transfer. Each of this transfer costs Rs. 2, 00,000 Lacs to the vessel company. After this the containers are transferred from port to vessel or vice-versa using Container handling cranes. These cranes have specification of 50 Teu’s, which means the crane can handle 50 tonnes of container weight. The APM Container terminal has cranes of 60 Teu’s which allows them to handle heavier containers. Each container is of two sizes. The 20 Ft. and 40 Ft. container are then arranged on the vessel according to the planning chart. The 20 Ft. container are allocated odd no locations such as 11, 13 etc. whereas 40 Ft. container are allotted even no locations such as 4, 6 since each 40 Ft. container consumes space equal to two 20 Ft. container. 6|Page


ADMAP Project Report: JNPT, Mumbai 2013 

 

The container is then transferred to the storage locations using trucks. These containers are sent for customs clearance and immigration thereafter. The maximum time for storage of these containers is 3 days after which the containers are sent to the destined locations using road and railways network. A reverse process is followed for transfer of containers from port to the vessel. The container transfer operation is a 24x7 process and each day around 30 vessels are docked at port for the container transfers.

Container Identification Number: A container is identified through a unique identification number allotted to it. The number’s significance can be explained with the following example: Eg: - SUDU3070079 is a container number.   

SUD represents the owner code and is registered with the International Container Bureau. U represents product group code and represents all freight containers. This letter can be substituted with ‘J’ for detachable freight containers and ‘Z’ for trailers and chassis. 307007 represents the six digit registration sequence and 9 is the checksum number that is arrived at after performing checksum logic on the six digit number to maintain even or odd parity.

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ADMAP Project Report: JNPT, Mumbai 2013

2.0 Study of Organizational Structure:

JNPT was established under the Major Port Trusts Act in 1963. It is managed by a board of trustees comprising of various stakeholders. The Port Trusts are expected to serve public interest rather than maximize profits and revenues along with optimum deployment of assets. The organizational structure of JNPT is as followsThe Government of India has constituted a Board of Trustees for JNPT which consist of following: a) Chairman b) Deputy Chairman; c) Not more than seventeen persons who consist of such number of persons, as the Central Government may, from time to time, by notification in the Official Gazette, specify, to be appointed by the Government and capable of representing various interests as specified in the Major Port Trusts Act, 1963. 2.1 Departments: There are five Departments in JNPT, each headed by a Head of the Department (normally a Chief Manager). These Departments are:

1. 2. 3. 4. 5.

Operations Port Planning and Development Finance Marine Administration

Each Department has Sections and Sub-Sections. The description of Sections and Sub-Sections are given below. Each Section and Sub-Section has a designated head and is headed by a Senior Manager/Manager/Dy. Manager. OPERATIONS DEPARTMENT It has the following four Sections

1. 2. 3. 4.

Bulk Terminal Container Terminal Engineering Services Projects & CFS Section

THE PORT PLANNING & DEVELOPMENT DEPARTMENT It has the following four Sections:

1. Major Projects and Dredging Division 2. Port Area (Maintenance & Project) Division 8|Page


ADMAP Project Report: JNPT, Mumbai 2013

3. Township (Maintenance & Project) & Environment Management Division 4. BOT Projects Section THE FINANCE DEPARTMENT It has the following ten sections:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Revenue Cash and Bank Projects Bills Procurement and Stores Establishment Internal Audit Financial Accounting Costing & Budgeting Loans

THE MARINE DEPARTMENT It has five Sections namely:

1. 2. 3. 4. 5.

Marine Conservancy and Pollution Control Fire and Safety Marine Operations (including pilotage and port signal station) Marine Engineering Safety

THE ADMINISTRATION DEPARTMENT It has five Sections namely:

1. 2. 3. 4. 5.

Personnel and IR Legal and Estate General Administration Hospital Marketing

2.2 Responsibility and Authority: The responsibility, authority and the inter-relation of personnel, who manage, perform and verify work affecting quality has been defined, and documented below as well as in the departmental procedure manuals: 1. Chairman He has overall responsibility and authority for the management of the Port including defining its Quality Policy, appointment of Management Representative, conducting management reviews, identifying and providing resources, equipment and trained manpower for the management, performance and verification activities including internal quality audits.

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ADMAP Project Report: JNPT, Mumbai 2013 2. Deputy Chairman He has overall responsibility and authority for management of the Port subject to supervision and control of the Chairman. 3. Chief Manager (Operations) He has the responsibility and authority for the management of:  planning, documentation, operations (including allotment of berths and arranging port equipment to load/unload cargo) in the Bulk and Container Terminal of the Port, landing, shipping or transshipping cargo between vessels in the Port and the wharves, piers, quays or docks belonging to or in possession of the Port, shifting, transporting, storing or delivering cargo/containers, brought within the premises of the Port, receiving, delivering, transporting, booking and dispatching cargo/containers originating in the vessels in the Port and intended for carriage by road or railways; disposal of unclaimed and long standing cargo/containers by way of auction/tender or destroyal.  Marketing/public relations  Preparing budget for Operations Department and after its approval exercising cost control  Identifying training needs of the employees in the department and arranging their training  Recording and analyzing customer complaints, taking suitable corrective/preventive actions and presenting the same for review in the Management Review Meeting. 4. Chief Manager, Port Planning and Development He has the responsibility and authority for the management of:  Planning, execution, monitoring and commissioning of new projects  Maintenance of marine structures  Maintenance of port buildings, civil structure, etc.  Maintenance of township  Planning, survey, execution and monitoring of dredging activities  Formulation of Five Year Plan and Annual Plan for the Port and interface with MOST in regard to monitoring of Plan Schemes  Preparing budget for PP& D Department and after its approval exercising cost control  Allotment of land  Identifying training needs of the employees in the department and arranging their training.  Recording and analyzing customer complaints, taking suitable corrective/preventive actions and presenting the same for review in the Management Review Meeting. 5. Chief Manager (Finance) He has responsibility and authority for all financial and accounting activities including  Collection of revenues for services provided in container, bulk, tank farms, estate and marine department  Disbursement of cash, maintaining and reconciliation of bank accounts  Payments related to project activities  Payment of bills 10 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013       

Payments related to materials Payments related to establishment Internal audits Financial and accounting statements Costing, budgeting and loans Investments Formulation of draft proposal for submission to appropriate authority for fixation of tariff  Identifying training needs of the employees in the department and arranging their training.  Recording and analyzing customer complaints, taking suitable corrective/preventive actions and presenting the same for review in the Management Review Meeting. 6. Deputy Conservator He has the responsibility and authority for the management of all marine related operations in their entirety including:  Marine conservancy  Pollution control  Marine operations including safe pilotage, berthing, unberthing and shifting of vessels  Ensuring observance of all relevant laws and harbour rules by ships and port users within the port limits  Ensuring safety of the harbor and all vessels in the port  Ensuring that prescribed rules, regulations and procedures are observed in handling of various types of cargo  Ensuring that port crafts are properly maintained and safely operated by the contractors  Operation and maintenance of Port signal station, VTMS  Purchase and maintenance of capital equipment for navigation  Providing fire-fighting service to the Port and safety in navigation and operations  Preparing budget for Marine Department and after its approval exercising cost control  Identifying training needs of the employees in the department and arranging their training.  Recording and analyzing customer complaints, taking suitable corrective/preventive actions and presenting the same for review in the Management Review Meeting. 7. Chief Manager (Administration) and Secretary He has the responsibility and authority for the following:  Management and personnel development  Handling relations of the industry with staff associations etc.  Management of estates owned/leased or rented by the Port  Matters and activities related to vigilance  Employee training in consultation with departments concerned  Management of port library/ port hospital  General administration and transport facilities,  Preparing budget for Administration Department and after its approval exercising cost control 11 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 ďƒ˜ Identifying training needs of the employees in the department and arranging their training. ďƒ˜ Recording and analyzing customer complaints, taking suitable corrective/preventive actions and presenting the same for review in the Management Review Meeting. The management team at JNPT has wonderful blend of bureaucratic and industry experience. The present management team at JNPT is as follows (Figure 5):

Mr L.Radhakrishnan Chairman

Mr S. K. Kaul Chief Manager (Admin.)

Mr N. N. Kumar Deputy Chairman

Mr S. N. Maharana Chief Manager (Operations)

Mr A. P. Srivastav Chief Vigilance Officer

Shri A.J. Lokhande Chief Manager, Port Planning & Development

Figure 5: Management Team at JNPT Our project became possible due to continuous support from Mr A.P Srivastav (C.V.O). Under his guidance and instructions we were able to observe and study the port operations and the structure of JNPT. Source: http://www.jnport.gov.in/ManagementTeam.aspx

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ADMAP Project Report: JNPT, Mumbai 2013 2.3 Special Section: Duties and Responsibilities of Chief Vigilance Officer (CVO) Mr A.P. Srivastava, as a Chief Vigilance Officer makes the role of vigilance at JNPT more positive and proactive. Only Mumbai Port Trust has the CVO sanctioned at this level while the other ports have a CVO’s at a Director level to Govt. of India. He has been very dynamic in handling in role at JNPT. The following chart summarises the extensive impact he has had on the organization since his inclusion into the role-

Sectional-incharge

Checking malpractices ,promoting ethical behaviour

Role

Coordinating with higher level ministries

Handling vigilance cases

His extensive efforts can be summarized as below1. He works with full commitment whenever he is on duty makin sure that all the activities are carried within existing rules and procedures of the JNPT port trust. Under his guidance as a Sectional-in-Charge JNPT was certified ISO 9001 in 2008 due to their continuous efforts in achieving Quality in Management systems. 2. One thing he makes sure of is that his officers are following conduct rules to their full extent and with full integrity. He also makes sure that if any cases of mal practice or inobservance of rules arrive he handles them promptly and fairly. Thus he is very strict on ethos and this has made JNPT free of any instance of reported malpractice. 13 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 3. He has been very effective over the years when it comes to coordinating with the ministry, CBI or CVC. This is very important because it becomes very important to identify cases where the vigilance angle can be brought in and thus doing so he ensures that speedy recovery of the cases take place. Due to these efforts JNPT became the first port that has set up a PPP model. 4. A very important aspect of his success as a CVO is that he uses his experience very wisely in order to identify the corruption hot spots in JNPT. Once identified he regularly carries out surprise inspections and visits so that system failures can be identified and corrective measures can be taken thereof. A major step in this regard was taken when JNPT became compliant with the ISPS code in July 2004.Since then no such major cases of malpractices have been reported.

Internal communication: The Chairman ensures that the Quality Policy is informed to all the employees of JNPT, Quality Objectives are set and included in departmental QSP Manuals and results of Internal audit & Management reviews are informed to all employees through well-established channels. The Chairman also monitors that departmental QSP manuals including Work Instructions are informed to all employees concerned with their implementation. Generally JNPT has the following internal communication systems: a) b) c) d) e)

Circulars, Intranet & Website, Network access system, Internal letters, Notice board,

RESEMBLANCE WITH A COMMON MANAGEMENT STRUCTURE   

Hierarchy- The entire organization is divided into a hierarchical structure with different people present in the organization with different credentials. Bureaucracy- Since it’s a part of government of India, it has to comply with the set of guidelines that has been laid out and the rules for the strict adherence to it. Departmentalization-The Organization consists of various departments performing wide variety of functions. Such an organization is decentralized and very difficult to track down a single line of flow of information.

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ADMAP Project Report: JNPT, Mumbai 2013 2.4 Organogram for JNPT: BOARD OF TRUSTEES CHAIRMAN MANAGEMENT REPRESENTATIVE DY. CHAIRMAN

Quality Assurance Cell

Vigilance FINANCE (HEAD OF DEPT.)

OPERATIONS (HEAD OF DEPT.)

Container Terminal Section

Operation Planning ICD & CFS* Maint. Auction

Project & CFS Section

Engg. Services Section

Materials Workshop & Autogarage Elect. Maint.

Bulk Terminal Section Shallow berth operation

PORT PLANNING & DEVELOPMENT (HEAD OF DEPT.)

Revenue

Cash & Bank

Projects

Bills

Major Projects & Dredging

Port Area Procurement & Stores

Establishment

Internal Audit

FA

Personnel & IR Legal & Estate

MARINE (HEAD OF DEPT.)

Marine Operation Fire & Safety Safety

Township Liquid/ Break bulk Cargo/ BPCL Operation

ADMINISTRATION (HEAD OF DEPT.)

General Administration

MCPC

Hospital Costing & Budgeting

Loans

BOT Projects Management Services

Marine Engineering

Marketing

Contracts

Figure 6: Organogram of JNPT Organizational Structure

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ADMAP Project Report: JNPT, Mumbai 2013

3.0 Study of Process and Planning:

JNPT being a government enterprise is focused on being an agent of national growth rather than only a profit making venture. The processes at JNPT are also aligned with this agenda. Being the largest container port in the country, the performance of JNPT has a high impact on the EXIM (export-import) business of the country and trade relation with other countries, which is a significant contributor to the overall economic health and development of the nation. Hence, it is extremely important that the practices being followed at JNPT be amongst the best in the business. JNPT management has done a commendable job in this aspect which has resulted in JNPT being the most technologically advanced and consistently well performing of all Government operated ports in the country. 3.1 Operating Processes at JNPT: Some of the salient features of the processes observed and deduced from our interaction with JNPT authorities are:   

The processes are highly structured (hierarchical and formalised) and standardised (bureaucratic) as per the policies of the Ministry of Shipping of the Central Government. Each department’s responsibilities and accountabilities are clearly defined and protocol is followed. Though the management at JNPT is highly proactive, competent and has a clear vision towards JNPT’s progress, there is extensive involvement and intervention of the Central Government in aspects of raising funds, resource allocation, machinery procurement, budgeting systems and strategic developmental plans of JNPT. The clearances-financial, environmental, human resources etc. usually take up time to the tune of a number of years which results in JNPT not being able to compete aggressively with autonomous private port operators which implement development plans more rapidly. This is a roadblock in fulfilment of JNPT’s vision. It was observed that the presence and performance analysis of private container terminals NSICT and GTI along with JNPCT at JNPT inculcated a spirit of competition and motivation in the employees at JNPT to improve processes and performance to produce superior results comparable to the private players, despite having to adhere to the framework of the processes being not very flexible. This clearly indicated that presence of private players was proving advantageous not only in terms of providing the financial investment and core competency in port operations but also contributing in better performance of JNPT through competition and comparative performance analysis.

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ADMAP Project Report: JNPT, Mumbai 2013 Suggestions: We suggest that JNPT be corporatized along the lines of Navratna PSUs of the Government of India. There are apprehensions, as per the report of the Parliamentary Standing Committee on corporatisation of Ports, that corporatisation will result in privatisation thereby resulting in:  

(i) a threat of the security of the country (the ports are considered as second line of defence after Navy, as per the report) and (ii) threat to the welfare of citizens who have provided land and are employed with the ports. However, as per our suggestion it will be corporatisation but not privatisation, and will result in JNPT becoming more autonomous, competent and developed thereby providing impetus to national growth.

3.2 Operating Technologies at JNPT: Features: JNPT is the most technologically advanced public sector port in the country. Some significant features of the use of technology in the container terminal operations of the port are as follows: The port has a completely automated single window berthing system which results in effective planning for berthing and reduced turnaround time for container vessels at the JNPCT. JNPT is the only major port in India to have achieved all the four certifications: ISO 9001:2008 Standards for Quality Management System, ISO 27001:2005 Standards for Information Security Management System, ISO 14001:2004 for Environmental Management System, OHSAS 18001:2007 for Occupational Health & Safety Management System. The planning department is completely automated and uses one of the most advanced cargo planning softwares called Navis which provides a standardised and globally used platform for planning from scheduling of berthing of container vessels to the loading/offloading of containers, optimal positioning of containers etc. 3.3 Issues and Recommendations for Process Improvement: Based on our interaction with the higher management at JNPT and personnel of the container terminal operations we recognized a few aspects for improvement and have the following recommendations: 1. Implementation of an ERP system: The systems at JNPT are currently standalone, disparate and there is very little real time information interchange between those, if any. The implementation of an ERP system is strongly recommended for providing a standardised solution for integrating all operations of JNPT including finances, human resources, 17 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 operations, interaction with third parties, customers, custom authorities etc. This will not only streamline operations, increase transparency, reduce paperwork but also provide realtime information and relevant tools for analysing data for the higher and middle management to make informed strategic as well as tactical decisions. We were informed that the feasibility study in this respect has been completed which is congruent with our suggestion. We strongly advocate the implementation of the recommendations of that study at the earliest. 2. Automation of Gate Clearance System for container trucks: In our interaction with the senior management of the operations department, we realised that clearance of container trucks at security posts was a major bottleneck as it took an unnecessary long time for these trucks to obtain clearance due to the manual system currently operational. An upgrade to an automated clearance system which will be based on providing registered transport companies unique IDs for their vehicles and operators (drivers etc.) that can be scanned through scanners at the clearance posts and providing automated clearance along with real-time update of the system for every container truck that is provided clearance will resolve a major bottleneck. 3. Benchmarking and training of employees: With the policy of Public Private Partnership on Build-Operate-Transfer model being adopted for expansion of JNPT, it is extremely critical for JNPT to conduct yearly benchmarking studies w.r.t technological implementations and employee skill requirements at leading container ports around the globe and to have a strategic plan to periodically upgrade the technology and conduct employee training programmes to remain competent and profitable in the face of inevitable future competition. This will also serve to boost employee motivation and enable them to become more effective.

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ADMAP Project Report: JNPT, Mumbai 2013 3.4 Special Emphasis: Corporatization of JNPT Process and Planning: A look at the corporate governance framework in Hong Kong & Shanghai Port, one of the largest container terminal ports in the world can be used for corporatization (Figure 7). Insights from the best can be used for to align corporate framework in a Port Environment. A clear functional distinction at various levels of hierarchy would lead to role clarity with accountability.

Figure 7: Diagram of the port governance structure in Hong Kong (Source: Working Paper Series, Hong Kong & Shanghai Ports: Challenges opportunities & Global Competitiveness, City University of Hong Kong).

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ADMAP Project Report: JNPT, Mumbai 2013 The corporatisation of JNPT is essential for the following reasons: o This will enable the state-run entity face competition and evolve by learning from the world benchmarks and benefit from increased trade in Asia’s third-largest economy. o Help enjoy benefits of higher employee productivity by using performance metric as means to incentivise the workforce. o Corporatisation will strongly support the vision of JNPT “To be recognized as India’s

premier container port providing integrated logistics to the best interest of trade and customers” in an impactful way. It will also help bring JNPT into the ranks of “Navaratna”. o Corporatisation will bring professionals with more relevant business experience on the board. Within a corporate entity, there will be faster decision making and more responsibility complemented by expedited execution. Also problems such as congestion trouble and capacity constraints which are now forcing traffic from the hinterland to move to Mundra can be dealt with in high priority way. o Significant economic growth over the past few years has ramped up container traffic along the west coast, but private ports have gained the most. Adani Group-promoted Mundra Port and APM Terminals’ port at Pipavav have been major gainers. JNPT, which handles over 60% of the country’s container cargo, has been derived of this due to lack of capacity expansion. Analysts say corporatisation, which will result in its structure resembling that of a publicly-owned entity (not necessarily privatisation) will help it cut through red tape faster and raise funds for expansion. This will enable JNPT like its private counterparts Mundra & Pipavav to be able to tap the capital market to raise funds. Also JNPT can enter into joint ventures with other companies for expansion by way of faster approvals keeping in view its strategic objectives. From JNPT perspective there is a need to negotiate with workers’ unions which can threaten nationwide strikes against the management. 

The first aspect is to acknowledge that this requires a continuous dialogue to pacify as well gain of trust of workers. This task should be given to the officers/managers who are popular/regarded among workers and are good communicators. Whatever amount of effort this process demands is worth it from the point of view of long term growth.

Providing incentive schemes like ESOP in the new corporate entity and other special privileges can be used to motivate. A VRS scheme should be implemented in a phased manner to the most dissenting workers similar to what Tata Steel did.

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ADMAP Project Report: JNPT, Mumbai 2013 These measures will ensure long term benefit to all the employees as well as the communities that JNPT serves. The more JNPT expands and grows the more value it can create for its business partners and also cater to larger number of socially beneficial projects supported by larger volumes of revenues. This will go a long way in building a strategic infrastructure for the

country facilitating national growth. Decision making to be made more autonomous: The need for autonomy in decision making cannot be over emphasised because of the following: o There are many parties with various interests in the port and that affects decision-making. o JNPT has to seek the approval of the shipping ministry every time there is an activity of more than 5 crore. This implies that Ports which require a capital intensive infrastructure have to seek ministry approval for almost every major growth plan as well as operational requirements. o The expansion plans of JNPT are caught in a maze of red tape, which blunts its competitive edge against private ports that have mushroomed along the west coast to facilitate trade. o JNPT’s plan to set up a new terminal was stuck in red tape for over three years. Another plan to raise 1,500 crore from a bond issue for a dredging project was struck down by the finance ministry on grounds that it had enough reserves. JNPT had kept the reserves instead for funding the land acquisition for the fifth terminal (for capacity expansion up to 8-10 million TEU’s) and the ship repair facility. But due to the non-approval from the finance ministry, the reserves had to be channelized towards the dredging project. The facts mentioned above have an undesirable effect on the growth plans of any commercial entity. A hindrance in the growth of the country’s largest container cargo handling facility will only impair its capacity to facilitate the national infrastructure and hence national growth.

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ADMAP Project Report: JNPT, Mumbai 2013 3.5 Processes-Organization Fit at JNPT: McKinsey 7S Framework: Insights from a value based model to holistically govern JNPT in line with its Vision & Mission:

Strategy

Staffing

Structure

7S of JNPT

Skills

Shared Values

Systems

Style

Figure 8: McKinsey 7S Framework applied to JNPT Strategy - The direction and scope of the JNPT over the long term – support national infrastructure, growth and support best interests of trade. Structure - The basic organization of the JNPT, its departments, reporting lines, areas of expertise and responsibility (and how they inter-relate) – to bring about harmony within JNPT framework. Systems - Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, online systems, etc) – Making them comprehensive and foolproof for JNPT & customers. Skills - The capabilities and competencies that exist within the JNPT. What it does best. Shared values - The values and beliefs of the JNPT. Ultimately they guide employees towards 'valued' behavior. 22 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013

Staff - The JNPT people resources and how they are developed, trained and motivated – especially valid for the people employed locally as part of JNPT commitment towards rehabilitation of local population. Style - The leadership approach of top management and the JNPT’s overall operating approach. Need to reinforce emphasis on the cultural style of JNPT and how key managers behave in achieving the goals of JNPT. We believe by including business, business units and teams JNPT can not only improve the current performance but also monitor the internal situation within its framework and move steadily towards achievement of its strategic vision.

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ADMAP Project Report: JNPT, Mumbai 2013

4.0 Study of Inland Container Depots (ICD) and Container Freight Stations (CFS): 4.1 ICD Portfolio at JNPT:

Inland Container Depots, also known as ICDs, are dry ports equipped with handling and temporary storage of cargo, especially container cargo. These ICDs are not present near any sea shores. However, they are well connected to the ports through different means of transport. This facility is essential for any port operations because the hinterland customers can receive port services closer to their location of operation. ICDs have a common user facility with public authority equipped with offering services for temporary storage and handling of export/import laden and empty containers which are carried under customs control. The Customs in ICDs are equipped with all the authorities and are competent enough to clear goods for home use, temporary admissions, warehouse, re-export, outright export and temporary storage for onward transit. ICDs at JN Port: JN Port is provided with 9 railway sidings for handling container trains. It has gateway connectivity with around 35 ICDs. New Delhi, Ludhiana, Sabarmati, Dadri, Nagpur & Hyderabad are major ICDs and handles about 80% of total ICD traffic. Rail Carriers Operated at JN Port is: 1) 2) 3) 4) 5) 6) 7) 8)

CONCOR CWC Hind Terminal IILPL ETA Engineering GRFL ALL CRR

4.2 Activities at ICD Terminal: Below are the steps that are followed at the ICD Terminal to ensure smooth flow of cargo:1) Train Operator submits the details of the containers on arrival of the train at the ICD 2) Customs checks the details of the container thoroughly and approves the safe arrival of cargo 3) Shipper provides documents like Invoice, Delivery Order, which has all the delivery details the final destination, to CHA nominated by a consignee 4) All the duties of the customs are examined and assessed. Payment of customs duties and charges to Customs by consignee 24 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 5) Carrier submit landing certificate is issued to customs where SMTP is filed 4.3 CFS Portfolio at JNPT: Container Freight Station is a port facility for loading and unloading containerized cargo to and from the ships. It is also called container terminal. JN Port is supported by 24 CFS facilities operating all over the country and 18 more CFSs are in pipeline. The average dwell time for movement of an import container to any CFS is around 24 hours. 4.5 Activities at CFS Terminal: Below are the steps that are followed at the CFS Terminal to ensure smooth flow of cargo:1) Shipper provides documents like Invoice, packing list and Delivery Order to CFS 2) Customs Duties are performed which include filing bill of entry, issue of examination order and examination of goods. 3) Consignee pays the required customs duties to the customs department. 4) Delivery of goods to consignee. IMPORT CYCLE:

IMPORT CYCLE ICD Bound Container

CFS Bound Container

Unloading from Vessel & Stacking into Yards

Unloading from Vessel & Stacking into Yards

Filing of Import General Manifest (IGM), Customs duties and SMTP

Filing of Import General Manifest (IGM) and Customs formatlities

Loading on Wagons for their respective ICD destinations and Stacking at ICD.

Delivery of CTRs from Port to destined CFS against the Job Order provided and stacking

Delivery to Consignee 25 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013

EXPORT CYCLE:

EXPORT CYCLE Cargo Studded at ICD

Cargo Stuffed at CFS

Transfer of Cargo from Original to ICD

Transfer of Cargo from Original to CFS

Stacking at ICD & Customs Procedure, CHA Procedures

Custom Examination, Filing of Documentation and CHA

Movement from ICD to Port by Railway

Stuffing of Cargo and loading for Port Entry

Gate Entry, Stacking in Designated Yard and loading on to vessel

Gate Entry, Stacking in Designated Yard and loading on to vessel

Filing of EGM (Export General Manifest) and bill of lading to Consignee

4.5 Problem Statement and Recommendations: Problem Statement: The major problems which ICDs are facing are with rail traffic. JN Port is not able to effectively use the train services to transport the goods from the port to their respective destinations. On detailed study we have found that there are few concerns that needed to be addressed. The following (Table 1) are the details of the ICD Traffic that are handled at JN Port by various entities like JNPCT, NSICT and GTICT:

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ADMAP Project Report: JNPT, Mumbai 2013 Table 1: Details of Import and Export Traffic at JNPT, NSICT and GTICT 2010-11 ICD Traffic (TEUs)

JNPCT

NSICT

GTICT

Total

IMPORT

94059

189794

256421

540274

EXPORT

105178

195365

165924

466467

TOTAL

199237

385159

422345

1006741

4

2

3

9

49809.25

192579.5

140781.7

111860.1

Railway Siding Tracks Average Traffic per Track

Recommendations:1) JNPCT is carrying a very less traffic through rail even after the number of tracks is less. NSICT and GTICT are far more efficient and effective in rail transport even with lesser number of rail tracks. Hence JNPCT should tie up with NSICT and GTICT for efficient rail transport and thus improve its operational efficiency by utilizing railway sliding tracks appropriately. 2) Delay in clearances from various departments during transport is causing problems in export or import of any goods. JNPCT should use bar coded forms which include IGM, EGM and Documentation Forms that are used to receive containers. This will help the port and transport authorities to track the consignment effectively. Bar coded system will avoid manual errors and also ensures that the cargo is moved quickly. 3) With fewer amounts of rail traffic and more number of tracks, there happens a case when the rail tracks allotted to JNPCT are left idle. If any such sliding tracks are left idle, JNPCT should leverage by providing the track services to its peers like NSICT and GTICT. JNPCT can rent these services and earn on it. It will improve overall operational efficiency of the entire port. 4) There should be an integrated approach with PPP model when Government has the responsibility along with enhanced Private Sector role will overcome multifarious sector challenges in all components of transport infrastructure. 5) There is no system which combines port operations, the costs involved, scheduling of trains and planning in an integrated approach. There should be an integrated ERP system which includes all the operations, financials, scheduling and planning most of which can be customized to the needs of the port. JNPCT should move towards automated systems which reduces manual intervention and errors. 6) JNPCT should start thinking of leveraging on airports for transport of few goods which can reach the customer very quickly. JNPCT can charge premium for such services. It will generate income and also better and quick service.

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ADMAP Project Report: JNPT, Mumbai 2013

5.0 Study of Container Terminal Operations: 5.1 Problem, Process and Findings: Problem:

JNPT port is no doubt a premier port handling more than 60% of container traffic in India, but with the increase in volume, it would be beneficial for the port to further optimize its operations to reap the benefits of cost savings by the use of advanced technology. With this view in mind, we try to explore the various latest technologies that can be utilized by JNPT to optimize its operations. Process: We observed the port has been running at a much higher utilization level than industry average, showing good utilization of available assets. So we researched regarding the latest innovations in the field of port technology and tried to understand if and how they could be applicable and helpful for JNPT. Findings: We first analyzed the benefits due to the automation process and then compared them with the various options available with JNPT and a comparison of the same. Productivity benefits through crane automation: 1. Reduced operational costs: (Labor costs ↓, Productivity ↑) The direct impact would be drastic reduction in the number of crane operators and their ability to operate round the clock with the same efficiency. The best scenario would a hybrid mix of automated cranes which can be controlled through a remote operations center. Advantages being a single operator can supervise the functioning of 3-4 cranes simultaneously and intervene manually if required. 2. Increased safety :( Accidents ↓, Safety ↑) As very little access would be required and cranes can be controlled remotely no operational personnel would be in the area and only maintenance staff would have access to the area, which reduce the possibility of accidents and improves safety 3. Reduced Operational variability (Reliability ↑) Automatically controlled cranes move containers exactly as they are instructed, and in the precise order specified by the Terminal Operating System (TOS), resulting in a highly predictable and repeatable operation. The chance of error due to misunderstanding an instruction is practically zero. The results of all container moves are provided to the TOS immediately upon completion of the 28 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 instruction, thereby eliminating a source of tracking uncertainty that exists when containers are moved manually. 4. Reduced Crane and load damage(Life of cranes↑) Properly designed automatic crane control systems produce very smooth and precise crane motions, practically eliminating hard landings, collisions, and topples. Because of this, spreader damage is practically non-existent on automatically controlled yard cranes 5. Improved asset utilization (Productivity ↑, Down time ↓) Although an automated crane may not always be able to move more containers per hour on a shortterm basis than a manually driven crane, the combination of reduced operational variability and reduced crane maintenance can easily result in a more efficient operation over the long term. Fully automated cranes can run efficiently at higher operating speeds, since no operator cabin need be accommodated on the crane. In particular, full automatic sway control, which is crucial for optimum cycle time during automatic operation, can be employed without concern for the on-board operator’s tolerance for dynamic motion. Further productivity can be gained due to the fact that automatically controlled cranes can plan and carry out crane and container movements over the optimum paths. Additionally, they do not require any waiting time for operators to board and deboard equipment during operational periods. A final benefit is the increase in land utilization, as containers can be stacked more closely in a yard served by automated cranes, and less land area is required for maneuvering of manually-driven container handling equipment. 5.2 Productivity through Crane Operations: Crane automation offers many benefits to terminal operators beyond the obvious operational cost reductions. Tangible productivity improvements are being realized in the areas of increased personnel safety, reduced operational variability and reduced maintenance which all add up to improved asset utilization resulting in lower operating costs and higher productivity. With the foresight to evaluate all of these benefits, investing in the latest automation technologies will help JNPT reap the financial benefits of their decisions for years to come.

Factor Investment Operating costs Cycle time Yard utilization Flexibility Civil works Infrastructure Maintenance

Table 2: A Comparison of RTG, ERTG, C-ASC cranes RT ERT CComment G G ASC (+) (-) (-) Depending upon crane price + Large reduction in labor + Higher trolley and gantry speeds + More advanced stacking, more compact + 0 Movement on rails for the CRMG + 0 Rails vs. concrete track + 0 HV – lines, remote, net-work 0 + No tire changes, no diesel engine etc. 29 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 Environment TOS Service level LS/WS

+

+ 0

+ -

Electrically fed, no emissions, no rubber tire More advanced

-

-

+

Faster repositioning of cranes

Productivity

-

-

+

Better house-keeping, less dependence upon driver skills

Figure 8: Automated Stacking Crane

Figure 9: Rubber Tyre Gantry Crane

Figure 10: Electrical Rubber Tyre Gantry Crane

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ADMAP Project Report: JNPT, Mumbai 2013 Crane Type Overview: ASCs (Figure 8), RTGs (Figure 9) and Electrical RTGs (Figure 10) are all crane types that can be employed when the available yard area is limited and high stacking is beneficial. Automation is being introduced all over the world to ensure low operating cost, high availability and high utilization of the yard capacity. Another parameter that is becoming more and more important is the reduction of emissions from diesel engines. The Automatic Stacking Crane, ASC. There are two types of ASCs: cantilever (side-loaded) cranes, where container transfer in and out of the stack is made alongside the gantry; and end-loaded ASCs, where the containers are loaded in and out of the stack from the short side of the container blocks. Both crane types can be made with very large spans and stacking heights. The cantilever cranes can be moved along the rails over several stacks, but cannot be moved from one row of stacks to the next. A cantilever crane is larger than an RTG because the containers are typically lifted between its legs. The automatic stacking cranes are fully electrical and supplied by a high voltage cable on a cable reel. All movements within the yard area and above a certain height over the travel lanes are performed fully automatically. When loading or unloading manned vehicles, the last part of the operation is conducted with supervision from a remote office. Typically, one supervisor can handle four to six cranes. As the terminal layout and way of operation are generally very similar for cantilever cranes and RTGs, the following comparisons will concentrate on these rather than the end-loaded ASC. The Rubber Tire Gantry crane, RTG. The RTG is one of the most common crane types for yard stacking and needs no further introduction. Each vehicle is manned with a driver; housekeeping is limited since the ability to move a loaded container in the gantry direction is limited. Shuffling is made within the bay being operated, which limits block occupancy. Due to the diesel engine and rubber tires, the RTG is flexible and can be moved between different stacks in the terminal. The investment cost is relatively low; however, modern RTGs are equipped with positioning systems (for example, DGPS), auto steering and cameras to facilitate driving and improve operation. The maintenance cost for an RTG is substantial, mainly related to the diesel engine. Electrical RTG: An electrical RTG (ERTG) is in many ways a combination of the ASC and the RTG. Because of the minimized or in most cases totally removed diesel engine, maintenance and emissions can be greatly reduced. However, even though the cranes can be shifted between the blocks, flexibility is reduced, resulting in a way of operation more similar to that of an ASC. An upgraded terminal operating system (TOS) is typically required, allowing containers and workload to be better distributed over the yard. The additional investment cost is around US$200,000 for a bus bar ERTG, compared with a traditional RTG. The ERTG has low emissions and requires less maintenance than a traditional RTG, but on the other hand the bus bars require more ground space than a traditional RTG or ASC, thus reducing the yard utilization even further. Compared to a cantilever ASC, the energy cost for the ERTG is higher because more cranes are needed. In addition, especially in hot climates, rubber tires require maintenance. 31 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 Comparison: Due to the restrictions in gantry travel for the RTG, containers of the same attribute set are concentrated, whereas an automatic cantilever ASC can employ controlled ‘random’ stacking. Together with the easily performed housekeeping moves that can be done continuously and fully automatically with an ASC, the maximum block occupancy at peak levels is high, at around 80 to 85 percent. The same figure for an RTG stays at 65 to 70 percent. For waterside operation, RTG cranes follow the cargo flow and are moved to the stacks presently used for operation to and from the ship. This impacts the landside productivity, where the arrival of external trucks is not coordinated and hence requires that the entire import area be covered. Low gantry and trolley speeds leads to low RTG productivity. All together, the overall crane productivity for an RTG is typically less than 40 percent of its technical capability. ASC operation distributes cargo flow and work load and, with the cranes easily covering the full yard area, an overall productivity of 70 percent is achieved with cantilever ASCs. A cantilever ASC can replace an RTG and ERTG in almost any terminal, and a comparison between the concepts can be made as in Table 2. Economics When comparing C-ASCs with RTGs, the most important factors are • Crane prices • Labor costs • Operational differences • Infrastructure The price difference between the two alternatives can be assumed to range between $500,000 to $1 million per crane. For the new generation of fuel-saving RTGs, the price difference is in the lower levels. Labor cost varies from $10,000 to $100,000 per man per year and includes social cost, administration, labor planning and so on. The flexibility of the RTG is compensated by the fact that the C-ASC can perform automatic housekeeping, has a shorter cycle time and can reposition itself quicker due to a higher gantry speed. Furthermore, with the introduction of a modern TOS, containers can be more evenly distributed over the yard so that the cranes are not required to move between rows of stacks. For the C-ASC alternative, an additional TOS investment of $2 million has been taken into account. A cost capital of 6 percent has been assumed. ASC operating experience Automation is sometimes seen upon as complicated or sensitive to disturbances, but experience from the installed base speaks for itself. Recent figures from one of the ABB installations show: • 10-15,000 moves per day • Availability > 99 percent 32 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 • Operation up to 22-23m/s wind speed • MMBF >1,000 • Cycle time as specified or better • Stacking accuracy excellent 5.3 Recommendations: Innovative Equipment: The terminal design concept is based on using ship-to-shore (STS) cranes that unload containers from the vessel and place them directly onto a fleet of Lift Automated Guided Vehicles (Lift AGVs). The Lift AGVs can carry two containers at a time and shuttle them at a speed of 22 kilometers per hour from the quay to the container yard using an onboard navigation system that follows a transponder grid. Once the Lift AGV arrives at its programmed destination it lifts the containers into a series of storage racks. Next, an Automated Rail-Mounted Gantry (ARMG) crane arrives to take the container from the rack to its next designated location which could be to the rail terminal, a trucker or stacking it somewhere else in the container yard. For the first phase of the Maasvlakte II terminal, the fleet will consist of 36 Lift AGVs in combination with 128 storage racks. This ability to lift the container off the vehicle and place it into a storage rack system is the first of its kind in the world. In the past, AGVs could not perform this action. The Lift AGV consists of two lift platforms, which are able to load and unload containers independently of each other. APM Terminals Maasvlakte II is the first terminal in the world to be equipped with Lift AGVs. It is this simple transaction where productivity benefits will be gained. In short, a new process has been formed for managing container flows by having automated equipment transport - lift - and stack – containers After an extensive evaluation process, APM Terminals Maasvlakte II chose the Lift AGV based on the high levels of productivity and safety, while maintaining low costs of ownership. They are built in Germany by Gottwald Port Technology, a subsidiary of Demag Cranes who have a proven track record in the development of automated container handling equipment. The vendor selection of Automated Rail-Mounted Gantry cranes and ship-to-shore cranes for Maasvlakte II is currently ongoing.

Figure 11: Lift AGV Crane

Figure 12: Lift AGV Vehicle 33 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013

Green Technology: The vehicles, measuring 15 metres long and 3 metres wide, are powered by diesel-electric motors. These fuel-efficient and low-noise diesel engines meet the latest and strictest European exhaust gas standards. Design engineers are also studying the feasibility of making the Lift AGVs 100% electrical-powered, which will enable further reduction in emissions and noise levels. Fleet Management System: The equipment order also comprises the delivery of a dedicated fleet management system for Lift AGV’s. “The software optimizes the deployment of the fleet and the travel distance of the individual vehicles. The system will be seamlessly integrated with our equipment control and other operating systems, so that we can better manage our container yard for our customers”, added Tazelaar. Safety Benefits: Container yards are historically a high traffic area that pose the highest risk for serious accidents and injuries due to the interaction of people with heavy machinery. The use of the fully automated Lift AGVs makes the container yard a safer place. The automated area is fenced off to protect dockworkers and truckers from entering. Additional safety systems ensure that the system is stopped when people enter the automated area. Further Development: Civil construction activities are planned to start in June 2012 at APM Terminals Maasvlakte II. The arrival of the first set of Lift AGV vehicles is planned for Q1 2013 after which thorough testing and integration with other container handling equipment will start. Conclusion: The automated stacking crane is today the next big thing and from a long term perspective JNPT should consider upgrading to these Automated stacking cranes as the increased productivity will result in a shorter payback period in spite of higher initial investment.

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ADMAP Project Report: JNPT, Mumbai 2013

6.0 Conclusion: 6.1 Future Expansion Plans: The future expansion plans of JNPT are enumerated as follows: 1) Capital Dredging: a. Phase I of this plan involves increasing the channel depth from 11m to 14m which would allow docking of ships with a capacity of 6500+ TEU. b. Phase II of this plan involves deepening the channel to 17m. If achieved, this would enable the biggest mother ships with a capacity of 15000+ TEU. c. The expected quantity of capital dredging is Rs 61.75 million cumulative, the expected quantity of capital dredging: 6.3 million cumulative per annum. d. Estimated cost of the project is Rs. 1571.60 crores 2) Modernization of JNPCT: a. The port plans to acquire 7 super post panamax RMQCs. The old RMQCs would be shifted to the Shallow Water Berth thereby resulting in mechanization of the Shallow Water Berth too. 3) Extension of container berth by 330 meters: a. This would require an area of close to 27 hecatares to be reclaimed for container stacking and development of other facilities. The expected capacity addition by this expansion is expected to be 0.6 million TEUs per annum. 4) Development of 4th container terminal: a. Phase I: The existing 300 metres long cargo berth will be converted into a container berth and will be extended by 700 meters making it 1000 meters long. Total reclamation of 135 hectares of land behind container berth is proposed for back-up facilities. The facilities also envisage the construction of piled approach bridge to container berths and the relocation of existing BPCL jetty and landing jetty including requisite dredging. The estimated cost of Phase-I works is about Rs 4100 crores. The terminal is estimated to handle 2.4 million TEUs. The Phase-I of the project is likely to be completed within three years after signing of Date of Award. b. Phase II: In continuation to Phase- I Container Berth an additional 1000 m quay length will be constructed as phase II. This will enhance the capacity by another 2.4 million TEU’s. The facilities also envisage the construction of piled approach bridge to container berth 35 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013 area and reclamation of 65 hectares including dredging at berth area and approach area leading to the newly built berth and disposal of the dredger material. The estimated cost of phase II works around Rs 2600 crore. The phase II of the project is to be commenced as soon as the annual through put of phase I reach 1 million TEUs. Notwithstanding the above, under no circumstances shall the commissioning of phase II facilities be delayed beyond 8 years from the date of signing of concession agreement. 5) Construction of multi-purpose terminals: a. This involves conversion of berths from general to container berths as there exists a huge potential for multi-purpose berths. Development of dedicated Freight Corridor from JN Port to New Delhi: The Indian Railway Dedicated Freight Corridor Corporation Limited (DFCCIL) has taken up development of dedicated freight corridor of along the eastern and western routes. This will enable Indian railways to improve its customer orientation and meet market needs more effectively. The containerized goods will be carried in double stack pattern which will help in faster and efficient evacuation of cargo in less time. Creation of rail infrastructure on such a scale is also expected to drive the establishment of Industrial corridors and logistic parks along its alignment. The construction of a dedicated freight corridor (western) from Dadri (Uttar Pradesh) to Mumbai (JNPT) (Figure 13) by the Dedicated Freight Corridor Corporation Limited (DFCCIL) of India brings with it a huge growth potential for the Port, both in terms of business and nation building.

Figure 13: Dedicated Freight Corridor (W)

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ADMAP Project Report: JNPT, Mumbai 2013 6.2: Thinking Strategically About Innovation Using The McKinsey Growth Staircase: If we analyze the future expansion plans of JNPT, we observe a clear attempt towards the following things:

Figure 14: McKinsey Staircase Growth Model a. Improve efficiency by modernization of facilities. I.

Plans to acquire 7 super post panamax RMQCs is a step towards modernization and efficiency improvement. Further, this would also lead to mechanization of the Shallow Water Berth as the old RMQCs would be shifted to this facility.

b. Attempt to attract new customers: I.

Plans of capital dredging to increase depth from 11m to 14m and eventually from 14m to 17m is a step towards developing capacity to cater to the biggest of ships.

II.

Plans to develop a multi-purpose terminal also seem to be a step towards equipping oneself to cater to probable future demands.

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ADMAP Project Report: JNPT, Mumbai 2013 c. Improving existing services on offer: I.

Extending the container berth by 330 meters by reclaiming an area of 27 hectares aims at extending capacity in terms of container stacking and development of other facilities.

II.

Plans for developing a 4th terminal close to 1 km in length and capacity of 2.4 million TEUs would ensure that shifting of BPCL liquid cargo handling facilities would not be required.

The expansion plans thereby encompass different facets of port development such as capacity addition, modernization and addition to the list of services offered. Thus, the expansion plans communicate an underlying strategy to augment and improve services offered to ensure that the existing customer base is satisfactorily serviced. At the same time, it also plans for improvement in services offered to attract new customers. 6.3 Financial Analysis: Table 3: Financial Analysis of JNPT Port Operations 2010-11 WORKING RATIO Operating Expenditure (Excl. Depreciation) Operating Income Ratio CURRENT ASSETS TO TOTAL ASSETS Current Assets (Excl. TDRs) Total Assets Ratio CURRENT ASSETS TO CURRENT LIABILITIES Current Assets (Excl. TDRs) Current Liabilities and Provisions Ratio Interest Income from Investment

2009-10

410.96 359.61 1,122.64 1,042.06 36.61% 34.51% 1,737.23 1,512.75 5,205.77 4,447.78 33.37% 34.01% 1,737.23 1,512.75 989.22 782.38 1.76:1 1.93:1 154.16

155.6

Inferences: 1.

The working ratio has increased considerably over the past year this indicates that some inefficiency may have crept in over the year. A detail analysis of such a significant increase in the working ratio is required.

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ADMAP Project Report: JNPT, Mumbai 2013 2.

Port is a capital intensive sector and hence the fixed component of the total asset is the major component. However the Current Asset as a ratio of total asset has remained more or less constant over the period which indicates a strict credit policy is maintained and the port is able to realise its dues well within time.

3.

The current liability has increased considerably as a proportion of Current Assets. The port seems to have a surplus cash situation as it has a considerable amount of interest income from investment. In such a situation if the scenario permits certain cash discount strategies could be worked out with the suppliers and accordingly a cost benefit analysis could be done.

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ADMAP Project Report: JNPT, Mumbai 2013

7.0 Exhibits: Exhibit 1: Glossary of Terms Related to Port Operations: 1. Ad Valorem - A term from Latin meaning, “according to value.” Import duty applied as a percentage of the cargo’s dutiable value 2. Bill of lading (B/L) - An official legal document that represents ownership of cargo; document to receive cargo; and, the contract for cargo between shipper and carrier. 3. Break bulk - loose cargo, such as cartons, stored directly in the ship's hold as opposed to containerized or bulk cargo. 4. Bulk cargo - commodity cargo that is transported unpackaged in large quantities. These cargos are usually dropped or poured into a bulk carrier's hold. Eg: grain, seed, and coal and iron ore 5. Bulk–Freight Container - A container with a discharge hatch in the front wall which allows bulk commodities to be carried 6. Carrier - any individual, company or corporation engaged in transporting goods sometimes referred to as ocean carriers. 7. Cargo - Freight loaded into a ship 8. Cargo Tonnage - measurement tons which can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos as a measure of cubic feet or cubic meters 9. Certificate of Inspection – A document certifying that merchandise was in good condition immediately prior to its shipment. 10. Commercial Invoice - Represents a complete record of the transaction between exporter and importer with regard to the goods sold. It also content of the shipment and serves as the basis for all other documents relating to the shipment 11. Container - a reusable steel standardized rectangular box for carrying cargo which can easily be moved between specially adapted containers ships, trains and trucks. 12. Consignee - A person or company to whom commodities are shipped 13. Consignment - A shipment of goods to a consignee. 14. Consignor - A person or company shown on the bill of lading as the shipper. 15. Customs - Government agency charged with enforcing the rules passed to protect the country’s import and export revenues. 40 | P a g e


ADMAP Project Report: JNPT, Mumbai 2013

16. Destination – The place where carrier actually turns over cargo to consignee or his agent. 17. Draft – The number of feet that the hull of a ship is beneath the surface of the water. 18. Feeder Vessel - A short–sea vessel which transfers cargo between a central “hub” port and smaller “spoke” ports 19. Gantry crane - a type of crane used to load and unload container ships. It lifts objects with a hoist and can move horizontally on a rail or pair of rails. 20. GATT - Abbreviation for “General Agreement on Tariffs and Trade.” A multilateral treaty to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. The World Trade Organization (WTO) superseded GATT in 1994. 21. Intermodalism - a system whereby standard-sized cargo containers can be moved seamlessly between different 'modes' of transport, typically specially adapted ships known as containerships, barges, trucks and trains. Because the cargo does not need to be unloaded from the container every time it is moved from one mode to the other it is a very efficient and fast system of transportation. 22. International Organization for Standardization (ISO) - an international standard-setting body that prescribes the standard size of shipping containers to make global container trade more efficient. 23. Landed Cost - The total cost of a good to a buyer, including the cost of transportation. 24. Letter of Credit (LC) - A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. 25. Pallet - a term used for a load-carrying platform onto which loose cargo is stacked before being placed inside a container. It is designed to be moved easily by fork-lift trucks. 26. Panamax Crane: A Panamax crane can fully load and unload containers from a container ship capable of passing through the Panama Canal (ships 12-13 containers wide). 27. Port of Entry - Port where cargo is unloaded and enters a country. 28. Port of Exit - Place where cargo is loaded and leaves a country 29. Post-Panamax Crane: A Post-Panamax crane can fully load and unload containers from a container ship too wide to pass through the Panama Canal (normally about 18 containers wide).

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ADMAP Project Report: JNPT, Mumbai 2013 30. Reefer - Industry term for a temperature-controlled (refrigerated) container. The temperature, humidity, ventilation and gas levels are maintained to prevent the deterioration of fresh food or other sensitive goods over long distances and periods of time. 31. Port - Harbor with piers or docks; Left side of a ship when facing forward. 32. Shipper - any person or organization paying for its cargo to be shipped from one place to another. 33. Ship Types a. Bulk Carriers: All vessels designed to carry bulk homogeneous cargo such as grain, fertilizers, ore, and oil. b. Combination Passenger and Cargo Vessels: Ships with a capacity for 13 or more passengers and any form of cargo or freight. c. Freighters: Break-bulk vessels both refrigerated and unrefrigerated, containerships, partial containerships, roll-on/roll-off vessels, and barge carriers. A general cargo vessel designed to carry heterogeneous mark and count cargoes. d. Full Containerships: Ships equipped with permanent container cells, with little or no space for other types of cargo. e. General Cargo Carriers: Break-bulk freighters, car carriers, cattle carriers, pallet carriers and timber carriers. A vessel designed to carry heterogeneous mark and count cargoes. f. Roll-on/Roll-off vessels: Ships specially designed to carry wheeled containers or trailers using interior ramps. g. Tankers: Ships fitted with tanks to carry liquid bulk cargo such as crude petroleum and petroleum products, chemicals, Liquefied gasses (LNG and LPG), wine, molasses, and similar product tankers. 34. Starboard - The right side of a ship when facing the bow 35. Super Post Panamax Crane: A Super Post Panamax crane can fully load and unload containers from a container ship hugely wide to pass through the Panama Canal (normally over 22 containers wide). Super Post Panamax cranes weigh approxly 1000 tonnes. 36. Vessel - another word for a boat or ship. Container ships are sometimes referred to as vessels. 37. Warehouse - A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo.

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ADMAP Project Report: JNPT, Mumbai 2013 Exhibit 2: Isometric Map of JNPT

JNPT Terminal (680m)

GTI Terminal (712m)

Admin Block

Main Container Yard

Customs Office

Port Based SEZ

N

Elephanta Island

330m Extension (Proposed)

NSICT Terminal (600m)

4th Container Terminal and Marine Terminal for Liquid Cargo (Proposed)

BPCL Liquid Cargo Jetty

Liquid Cargo Storage Yard

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ADMAP Project Report: JNPT, Mumbai 2013

Exhibit 3: Snapshot of Facilities at JNPT:

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ADMAP Project Report: JNPT, Mumbai 2013

Exhibit 3a: Container Traffic Growth from 1989-90 to 2011-12:

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58.23

65.73

56.43

64.3

53.09

60.75 50.6

57.29

51.92

40.81

28.75

32.81

22.86

26.84

14.28

18.58

10.68

14.98

44.81

CTR Traffic

4.07

5.01

0.41

0.7

Traffic In Million Tonnes

Total Traffic

55.84

JN Port: Total Traffic (Of the total cargo handled, 88.6% is containers):


ADMAP Project Report: JNPT, Mumbai 2013 JN Port: Container Traffic (JN Port handled 55.63% of Major Ports’ container traffic in 2011-12): IN MILLION TEUs 4.7

4.06

4.2

4.32

3.3

3.7 3.2 2.7

2.27

2.37 2.67

1.93

2.2

1.57

1.7

1.19 0.89

1.2 0.7

3.95

4.06 4.27

0.04 0.34

0.2 -0.3

JN Port Container Traffic Projection upto2015-2016:

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ADMAP Project Report: JNPT, Mumbai 2013

Exhibit 4: JNPT Delegation of Powers: Non-Establishment Matters (Specimen): Sl No .

Section of MPT Act

Nature of Powers

Authority to which Power is delegated

1

8(1)

Chairman

2

8(1)

Dy. Chairman

Full Powers

3

31(1)

Chairman

Full Powers

4

31(1)

To grant leave of absence to the Trustees from the Board Meeting To grant leave of absence to the Trustees when Deputy Chairman presides over the meetings of the Board in the absence of the Chairman To grant way leaves Allotment of space belonging to the Trust on licence system

Extent of Powers Delegated in JNPT Full Powers

Chairman

Full Powers

Remarks

For Entire List Refer Company Sources

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ADMAP Project Report: JNPT, Mumbai 2013 Exhibit 5: Sample Traffic Handling Log Sheet:

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ADMAP Project Report: JNPT, Mumbai 2013 Exhibit 6: Sample JNP Container Terminal: Daily Performance Report:

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ADMAP Project Report: JNPT, Mumbai 2013

8.0 Appendix: Appendix 1: Work Distribution Chart (ADMAP Group Members): S.No. Project group member (in alphabetical order) 1

Abhishek Singh

Activities performed   

2

Achint Arora

  

3

Amit Otta

   

4

Harshal Doshi

  

5

Jagadeesh Mohan

  

6

Kushal Jalan

  

Coordination with JNPT staff for project visits. Study, analysis and recommendations on Processes and Corporatisation benefits at JNPT Benchmarking analysis of JNPT against Hong Kong and Shanghai container ports Application of McKinsey 7S framework w.r.t JNPT. Interaction with Planning Department personnel at JNPT and data collection. Study, analysis and recommendations on Technology at JNPT Introduction and overview of JNPT for the project report. Interaction with Operations Department personnel at JNPT and data collection regarding crane operations. Study, analysis and recommendations on Crane Automation. Interaction with Planning Department personnel at JNPT and data collection. Identification of key issues and scope of project by interaction with Chief Vigilance Officer and Chief Manager Operations. Study, analysis and recommendations on growth strategy through McKinsey Step Growth Model at JNPT. In depth analysis of financial results and providing recommendations. Interaction with Operations Department personnel at JNPT and data collection regarding crane operations. Study, analysis and recommendations on Crane Automation Data collection for benchmarking analysis of JNPT against Hong Kong and Shanghai container ports Data collection on overview of the facilities and organisation structure of JNPT. Study, analysis and recommendations on growth strategy through McKinsey Step Growth Model at JNPT. In depth analysis of financial results and providing recommendations.

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ADMAP Project Report: JNPT, Mumbai 2013 7

Nilotpal Ray

    

8

Ramneek Bhardwaj

  

9

10

Rohith T V

Sajiv Sukumar

    

11

Saransh Verma

     

Preparation of Project Report format and final project report. Identification of key issues and scope of project by interaction with Chief Vigilance Officer and Chief Manager Operations. Study, analysis and recommendations on Processes and Corporatization benefits at JNPT. Data collection on growth strategies through interaction with higher management. Interview with Chief Manager (Operations) and Site Manager to understand pain points and devise strategies to cater to the same. Data collection on overview of the facilities and organisation structure of JNPT. Study, analysis and recommendations on Organisation Structure at JNPT Project Report proof-reading. Interaction with Operations Department personnel at JNPT and data collection regarding ICD operations. Study, analysis and recommendations on ICD operations. Interaction with Operations Department personnel at JNPT and data collection regarding ICD operations. Study, analysis and recommendations on ICD operations. Data collection on growth strategies through interaction with higher management. Coordination with JNPT personnel for project visits. Preparation of Project Proposal and Project Testimonial. Identification of key issues and scope of project by interaction with Chief Vigilance Officer and Chief Manager Operations. Study, analysis and recommendations on Processes and Corporatisation benefits at JNPT. Study, analysis and recommendations on Technology at JNPT Overall coordination of the group’s project visits, responsibility allocation for data collection, division of work on aspects of JNPT to be studied and final report preparation.

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ADMAP Project Report: JNPT, Mumbai 2013

Appendix 2: Method of Research & Data Collection: 1. Primary a. Through visits to JNPT. We had four visits to the port and covered all areas under study including insightful conversations with the Operations Head, CVO and Deputy Chairman. b. Interaction with people at the corporate office. Met with people from the operations and planning department to get a clear idea of the various processes c. Understanding the mode of operation and functioning of their Marketing department. Collecting data regarding major clients and how the process of deals are done d. Understanding the mode of operation and functioning of their Planning department. Getting to know how the slots are booked for containers of various companies and overall process involving submission of requests and invoice. 2. Secondary a.

Through reports and magazines provided by JNPT officials. Roadmap of the organization and detailed working methodology

b. Through presentations given by their Marketing department. Intricacies involved in the process and also essential statistics c. Through the JNPT website. Statistics and overall working of the organization d. Through the web to compare JNPT vis-Ă -vis other international ports. Dominant practices around the major ports and also the scope of improvement

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ADMAP Project Report: JNPT, Mumbai 2013

Appendix 3: Log of JNPT Visits: Date 22nd Nov 2012

Visit First

27th Dec 2012

Second

10th Jan 2013

Third

24th Jan 2013

Fourth

31st Jan 2013

Fifth

Activities/Takeaway Understood the layout and basic operations of the port by visiting the administrative department and JNPCT. Also, obtained information regarding the PPP model of the two private container terminals at JNPT. Met the Marketing Department POC and explored the possible options/scope for project work. Understood the operations of the container terminal including container berthing, ICDs, storage facilities, custom clearances etc. Visited the Planning department. Collect requisite data; understood the processes by observing and interacting with the POCs of departments such as planning, operations and marketing departments, for analysis of the operational issues, processes and administrative structure. Comprehensive discussion with Mr. Atul P. Srivastava, Chief Vigilance Officer JNPT, regarding the scope of the project and the requirement to focus on specific issues. Also discussed the challenges faced by JNPT w.r.t. competition from private players and the bottlenecks in strategy implementation. Full day visit and interactions with Mr. Atul P. Srivastava, Chief Vigilance Officer JNPT and Mr. S.N. Maharana, Chief Manager Operations regarding issues to focus upon in our analysis. ICD operations, Crane automation and automation of Container Trucks Clearance process were identified to be the areas of concern. Also an overview of the administrative context, processes and development plans of JNPT were identified to be discussed in the report. Mr. Mukherjee, Deputy Manager Operations gave us a comprehensive session on container terminal planning and operations. The highlight of the visit was the session taken by Mr. N.N.Kumar, Deputy Chairman JNPT on growth strategies and plans for JNPT and the interaction with him thereafter.

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ADMAP Project Report: JNPT, Mumbai 2013

Appendix 4: Team ADMAP-JNPT: Some light moments:

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ADMAP Project Report: JNPT, Mumbai 2013

9.0 References: 1. http://www.jnport.gov.in/AboutJNPT.aspx?id=2&cid=1 2. http://www.jnport.gov.in/JNPT_SubSection.aspx?cat=8&id=9 3. http://www.jnport.gov.in/writereaddata/PDF/JNPTPDFTRAFFIC%20HAND LED%20IN%20JAN-13%20AND%20CUMULATIVE%20TRAFFIC336.pdf 4. http://www.jnport.gov.in/Performance.aspx?id=23&cid=18 5. http://shipping.nic.in/ 6. http://dpe.nic.in/brpse/about_brpse (Board for Reconstruction of Public Sector Enterprises (BRPSE))

7. http://www.porttechnology.org/latest_journal/ 8. HONG KONG AND SHANGHAI PORTS: Challenges, Opportunities and Global Competitiveness- CITY UNIVERSITY OF HONG KONG- Working Paper Series June 2011 9. http://www.shanghaiport.gov.cn/English/introduction/info_001.html 10. http://www.pdc.gov.hk/eng/facilities/container.htm 11. http://jnpt.kwebmakerusa.com/jnpt/Admin/DocFile/JNPTPressReleaseDelegati on%20of%20power3.pdf

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