future potential of break bulk cargo in kolkata port trust

FUTURE POTENTIAL OF BREAK BULK CARGO
at

KOLKATA PORT TRUST
(Submitted in partial fulfillment of the requirements for

PGDM )

By

Avinash Kumar Singh Roll No. DM1214038 Batch of 2012-14

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49, Knowledge Park 3, GREATER NOIDA-201306 (UP) July 2013

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CERTIFICATE OF ORIGINALITY
I Avinash Kumar Singh Roll No DM1214038 of 2013,is a fulltime bonafide student of first year of PGDM Program of Accurate Institute of Management & Technology, Greater Noida. I hereby certify that this project work carried out by me at Kolkata Port Trust the report submitted in partial fulfillment of the requirements of the program is an original work of mine under the guidance of the industry mentor Supdt.General. Mr A.Sekhar Padmanabhan and the faculty mentor Prof. Rajeev Mathew and is not based or reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time

(Student's Signature) Date: July, 2013

(Faculty Mentor's Signature) Date: July 2013

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ACKNOWLEDGEMENT

This work is a outcome of not just my effort but also the help, Endeavour and encouragement of many people around, some directly and some indirectly Through this acknowledgement I hereby thank all those people who have been my continuous motivation and support during the completion of the project, without whom the project would not have been completed. I express my gratitude to the Accurate Institute of Management & Technology for providing me an opportunity for my Summer Internship with the constant support of excellent faculty guide Prof. Rajeev Mathew. I am grateful to him for guiding and correcting this report with attention and care. My deepest sense of gratitude to Kolkata Port Trust for giving me an opportunity to do my internship in their esteemed organization. I also take this opportunity to express profound gratitude to my industry guide Supdt.(General) Mr A. Sekar Padmanabhan as also

Smt. Paromita Chakraborty, Asst Supdt. for their guidance and monitoring my
progress all through my tenure in the organization. My deep regards to Asst. Spudt.

Rajendra Kumar Singh for his exemplary guidance and constant dedicated encouragement
throughout the training. I also wish to thank Supdt. R. Naskar for his valuable inputs that have been helpful in completion of the project. I am grateful to all the people of the organization who have been there to help me through my training with their constant support.

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Table of Contents

S.No
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Particulars
Introduction of KoPT Performance of Kopt Berth Particulars On Going Modernisation Plans About Break Bulk & Facitities Pestle Analysis Traffic Assessment SWOT Analysis Recommendation Conclusion Bibliography

Page No.
6-8 9-11 12-17 18-21 22-41 42-44 45-51 52 53 54 55

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KOLKATA PORT – A CONTINUING VOYAGE

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INTRODUCTION
Kolkata port is the gateway to Eastern India for the rest of the world. This is the first Major port in India, whose appearance in the maritime map dates back to 1870 and this is the 141st year of its existence. Kolkata port is the only riverine major port in India. Its 232 kms long navigational channel is one of the longest channels in the world. The port has two dock system viz. Haldia Dock Complex (HDC) and Kolkata Dock System (KDS). Haldia Dock Complex, a modern dock complex of Kolkata Port Trust, was set up in 1977 for handling larger vessels, carrying bulk cargo with optimum economy, keeping Kolkata Dock System primarily for handling break bulk cargo, container etc. The two dock system of Kolkata Port viz. KDS and HDC are complementary to each other. Kolkata Port has a vast hinterland, comprising the entire Eastern India including West Bengal, Bihar, Uttar Pradesh, Punjab, Haryana, Rajasthan, Assam, North Eastern State and the two landlocked neighboring countries viz. Nepal and Bhutan. The industrial development, commerce and trade of this vast hinterland are inseparably linked to the life and development of Kolkata port and vice-versa.

CONNECTIVITY:
Kolkata Port is well-connected with national and state highway, railways and national waterways. KDS is connected with NH-6, NH-2 and NH-34 through city roads.NH-41 connects Haldia with NH-6 and rest of the country. KDS is connected to Eastern Railway through Sealdah and Budge Budge sections.HDC is connected to the South Eastern Railway via Panskura. Kolkata Port is connected to National Waterway No.1(Ganga), National Waterway No.2(Brahmaputra) and Waterway through Sundarban.

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PHYSICAL STRUCTURE:

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Performance Highlight for 2011-2012

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Kolkata Port handled 43.248 million tones of traffic in 2011-2012. KDS handled a traffic of 12.233 million tones in 2011-2012 and HDC, 31.015 million tones of traffic was handled in 2010-2011.

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During the last eight year period, from 2000-01 to 2008-09,Kolkata Port increased its cargo volume by 24.22 million tones (80.73%). However, traffic decreased since 200910 owing to decreased in POL Crude, consequent on commissioning of Paradip-Haldia Crude pipeline and also due to decline in Iron Ore, Coking Coal, etc. due to draft restriction.

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At Kolkata Port, Container traffic increased to 5,52,241 TEUs in 2011-12 from 5,26,474 TEUs in 2010-11 i.e. a growth of 5%. Container traffic at Kolkata Port crossed the 5.5 lakh TEU mark during 2011-12. At KDS, 4,12,425 TEUs were handled during 2011-12 as against 3,77,135 TEUs in 2010-11, registering a growth of 9.36%, which was the highest among Indian Major Ports.

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KoPT ranked third amongst Indian Major Ports in terms of Container handling in 20112012. Number of vessels handled at Kolkata Port during the last nine years was the highest amongst all India Major Port. KoPT handled around 16-17% of the total number of vessels, which worked at Indian Major Ports. During the year 2011-2012, 3183 vessels called at KoPT.

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During 2011-2012, the port excelled in all efficiency parameters as compared to previous year, such as, reduction in Turn-Round Time(TRT) of ships, reduction of Pre-Berthing Detention(PBD) of ships and above all, improvement in average Ship Berth-day Output etc.

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During 2011-2012 high growth were registered at KoPT as compared to 2010-11 in respect of LPG, Vegetable Oil, Manganese Ore, Rock Phosphate, Thermal Coal, Petroleum Coke, Other Coke, Machinery, Coal Tar Pitch, Maize, Pulses, Container, other General Cargo, IWT Traffic, etc.
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During the course of 11th Five Year Plan (2007-12), aggregate plan capital expenditure of Rs. 271.80 crore was expended vis-à-vis cumulative annual plan outlays of Rs. 261.45 crore which implied a healthy utilization percentage of around 104%.

PERFORMANCE INDICATORS:

AVERAGE TURN-ROUND TIME

Type of Vessel

Avg. Turn Round Time per Vessel (In days) 2010-2011 2011-2012 3.77 6.38 7.32 4.21 4.95 2.67 4.94 7.35 2.43 3.66

A. Kolkata Dock System : 4.52 Liquid Bulk 10.17 Dry Bulk 7.52 Break Bulk 4.45 Container Overall 5.37 B. Haldia Dock Complex : 2.85 Liquid Bulk 7.18 Dry Bulk 7.03 Break Bulk 2.90 Container Overall 4.53

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AVERAGE PRE-BERTHING DETENTION

Type of Vessel

Avg. Pre-Berthing Detention per Vessel (In days) 2010-2011 2011-2012 0.99 0.60 0.61 0.69 2.94 2.71 4.55 0.70 2.57

A. Kolkata Dock System : 1.66 Liquid Bulk 1.65 Dry Bulk 0.89 Break Bulk 0.67 Container Overall 0.97 B. Haldia Dock Complex : 3.39 Liquid Bulk 5.14 Dry Bulk 7.38 Break Bulk 1.33 Container Overall 3.80

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BERTH PARTICULARS:
The facility at Kolkata Port are as following:

1. HALDIA DOCK COMPLEX:
? ? ? Haldia oil jetties(HOJ)-3 Reverine jetties 2Mehanized berth for handling iron ore/thermal core 2 Berths for handling containers

? 10 Multipurpose Berths
? 2 Riverine Barge Jetties

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2. KOLKATA DOCK SYSTEM:

Kidderpore Dock (KPD)
? ? ? ? 17 Multipurpose Berth(including 3 berth for heavy-lift cargo) 1 Berth for Passenger-cum-cargo vessels 6 Buoys/moorings 3 Dry Docks

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Netaji Subhas Dock (NSD):
? ? ? ? ? 4Dedicated container berths 1 liquid cargo berth 1 Birth for heavy-lift cargo 4 Multipurpose berths 2 buoys/moorings

? 2Dry Docks

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Budge Budge(BB):
? 6 Petroleum Wharves

Anchorages:
? ? ? ? Diamond Horbour Saugor Road Sandhead Haldia Anchorage

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DRY DOCK FACILITIES:
Kolkata port has five dry docks inside the impounded dock system to cater to the diverse

repair and maintenance need of the vessels. The dry docks can serve vessels of dimensions as given below.

Dry Dock N.S. Dry Dock No.1 & 2 K.P. Dry Dock no.1 K.P. Dry Dock no.2 K.P. Dry Dock no.3

Maximum size of vessels 172.21m*22.86m 160.02m*19.5m 142.95m*19.5m 102.1m*14.63m

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In recent years, the ship repair facilities at the dry docks have been upgraded

with modern

equipment. The port has also rationalized its dry dock charges, making it an attractive destination for quality repair at competitive cost.

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ON GOING MODERNISATION PLANS

A major challenge for a riverine major port like Kolkata has been its inadequate draft preventing vessels of higher dimension/parcel size of visit the port. Simultianeously, being a riverine port and strategically connected to national waterway no.1 and waterway no.2 Kolkata port has huge potential in respect of movement of cargo through inland water transport(IWT),mode. The port of Kolkata has made investment decision both for KDS and HDC, keeping in mind the river morphology and traffic that can best be handled in these two location harnessing the respective potential of two dock systems. A well diversified investment programme, aimed at improvement of infrastructure/capacity augmentation, has been embarked in the 11th/12th five year plan at Kolkata port, encompassing, Interalia, construction /mechanization of birth with improvement of back-end facility; integrated development of infrastructure facilities including road/rail connectivity ,improved storage /yard logistic, of birth; induction of state –of- the- art equipment ,river regulatory measures for improvement of draft at Hooghly estuary. Comprehensive improvement of Information Technology (IT).etc

Major Projects of Underway - Prime-mover of Growth
? Development of Haldia Dock II.
Development of Haldia Dock-ii on PPP basis in the west bank at Salukhhali/Rupnarayanchak is envisaged where the river draft in 9 meters without dredging and the land connectivity is conducive to cargo handling operation. Necessary land for this project, has already been taken over from the state government with a grant of long term lease. The indicative cost of the project is around Rs.2000 crore and 4 jetties are being planned for construction of handling dry bulk cargo like coal, iron ore, etc. providing 20 mt per annum capacity. Two separate RFQ for Haldia Dock-ii(NORTH) AND Haldia Dock-ii(south),have been issued in may 2011 and applications received are now being evaluated.
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Consruction of riveriene outer terminal at Haldia Dock, integrating it with Transloading facilities at Sandheads and its vicinity for midstream handling of Dry Bulk Cargo
KoPT has embarked on creation of facilities within the limits of the port in an integrated manner with construction of a riverine terminal (OT-1) outside the lock gate at Haldia Dock. The Model policy for transloading operation within KoPT limits has been approved by the Ministry and the port limits of KoPT have recently been extended which would ensure the transloading operation to continue seamlessly throughout the year. RFQ for this project was invited in February 2011 and PPPAC Memo/draft Concession Agreement, etc has been forwarded to the Ministry. After receipt of requisite clearances from the Ministry regarding PPPAC memo, etc., the RPF document would be issued.

Construction of Jetties at the proposed Diamond Harbour Container Terminal
Development of a container terminal at Diamond Harbour in the east bank of river Hooghly is around 50 km south KoPT by road, with river draft of 9 meters without dredging. The first phase of the project will comprise 900 mtrs. quay length with a designed capacity of 1.2 million TEUs. The requirement of land in the first phase will be met from Defence, DGLL and State Government, apart from additional land available through reclamation. KoPT engaged Eastern Railway for preparation of a survey report to provide the vital railway linkage between KoPT’s Jetty site with nearest rail head at Diamond Harbour, which has since been submitted. The project is to be connected to the Eastern Dedicated Freight Corridor from Dankuni. RFQ for this project has been issued in July 2011 and the due date of receipt of applications is 16 th February 2012.

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Development of Port Facility at Sagar Island
Sager Island-about 150m south of Kolkata is being envisaged for development of full-fledged port facilities with the initial potential to handle about 60 million tonnes of dry bulk/break-bulk cargo and containers. Around 10-12 jetties are initially envisaged. KoPT has already engaged M/s RITES Ltd. along with WAPCOS and CWPRS for conducting an integrated feasibility study for development of port facilities at Sagar Island, Including rail-road connectivity. Rail connectivity is to be a core component for this project since most of the projected cargo viz coking coal, thermal coal, ore, coke, etc. are likely to be evacuated/aggregated by rail. Interim Report has already been submitted and Draft feasibility report is expected shortly.

Other Major Initiative and Achievement at Kolkata Port
? LOI was placed by KoPT on a private for equipping/providing integrated cargo handling service at the berth, 2 and 8 at HDC, aimed at catering to gearless vessels, leading to improved cargo handling capacity. The equipment has been mobilized at the site and the mechanized berths have since been commissioned. ? A Stand Alone Vessel Traffic Management System (VTMS) alongwith Automatic Identification System (AIS) was installed in March 2005. Upgradation/replacement of three Rader Stations with replacement/renovation of infrastructure facilities, including installation/ commissioning of AIS at Frasergunj and Haldia, have also been completed recently.

Information Technology (IT) and IT enabled Service (ITeS)
With customer as its focus, on-going development on IT and ITeS are full swing, aimed at increased customer satisfaction alongwith improved efficiency in port management by introducing web-based application and interchange, thus ensuring wide coverage, minimized cost on transactions and port operations with gradual evolution towards paperless offices. In this
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respect, implementation of POMS(Port Operations Management), PCS(Port community Systeman implementation of Electronic Data Interchange(EDI) among the port community) and provision for catering to online queries from port users on the port’s website deserve special mention. This is further strengthened by a comprehensive enterprise-wide application software, EIS (executive information system) and FMS (Facility management system), already in place with enterprise resource planning (ERP) being envisaged as one of the key business solution.

...PROMISS TO KEEP
The future shines bright for Kolkata port trust with several new project on the anvil in the hinterland, coupled with India’s policy of co-operation with ASEAN countries-the ’LOOK EAST’ policy. The proposed trans Asian railways corridor, opening of India-China roads and proximity to Lasha will all contribute to making Kolkata the hub port for Asia. With these myriad opportunities and multi-faceted development programmes on the anvil, setting up of 2nd Dock at Haldia (Salukkhali), transloading operation at Sandheads full-fledged cargo handling facility at Sagar and Diamond Harbour, Kolkata port trust is poised to emerge as a premier port of the country.

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Break Bulk Cargo

Break bulk cargo is non containerized and is usually transported as individual pieces due to cargo often being oversized and overweight meaning freight containers cannot accommodate the cargo. Cargoes include goods such as construction equipment, oil and gas equipment, windmills, yachts and steel etc. Due to reduction of costs and minimizing the possibility of theft/ damage much of the worlds freight is now containerized meaning it fits into ISO standard containers but because of size/weight restrictions there is still a lot of cargo (such as oversized and heavyweight equipment) which has to be shipped break bulk. Break bulk freight transportation still has a major role to play in the international trade industry as countries expand infrastructure and require these large cargos to for the development of things such as wind farms, power plants, highways etc. Many specialist break bulk vessels come fitted with heavy lift cranes which can manage the heaviest of cargo safely and quicker than dockside cranes, this can speed up the process of loading/unloading and reduce costs for the shipments. Although break bulk shipping rates are often seen as more expensive than containerized shipping costs when taking into account the costs (and time delays) of disassembling, packing, shipping, unpacking and re-assembling, shipping break bulk can often make commercial sense In shipping, break bulk cargo or general cargo is a term that covers a great variety of goods that must be loaded individually, and not in intermodal containers nor in bulk as with oil or grain. Ships that carry this sort of cargo are often called general cargo ships. The term break bulk derives from the phrase breaking bulk—the extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's holds. These goods may not be in shipping containers. Break bulk cargo is transported in bags, boxes, crates, drums, or barrels. Unit loads of items secured to a pallet or skid are also used.

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A break-in-bulk point is a place where goods are transferred from one mode of transport to another, for example the docks where goods transfer from ship to truck. Break bulk was the most common form of cargo for most of the history of shipping. Since the late 1960s the volume of break bulk cargo has declined dramatically worldwide as containerization has grown. Moving cargo on and off ship in containers is much more efficient, allowing ships to spend less time in port. Break bulk cargo also suffered from greater theft and damage.

Break bulk cargo is also defined as general cargo. Such cargo is loaded into ships as individual pieces or unitised on pallets, in bundles and is not containerised nor in the form of dry or liquid bulk consignments in whole or part shiploads "Break-bulk" cargo handling is the method employed since the earliest days of shipping. A bulk of cargo is broken down into groups that can be handled by the equipment available. Break bulk cargo is cargo that may be affixed to a pallet. Palletized cargo is organized in such a way as to facilitate the loading into the ship by crane or derrick. The ship may carry some bulk cargo, some
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break bulk and some containers. Smaller, inter-island ships generally carry a variety of cargo sizes, types and containers. Although that method has worked for many years, containerization is the cargo handling method for the future. For deep draft trades, domestic and international, dry bulk goods use bulk ships. Liquid bulk moves in ocean-going tankers. General cargoes move in container ships or break bulk ships. Ocean-going barges also are used to transport these commodities. General cargo carriers use liner ships to move containers and break bulk ships to move other general cargoes. Because about 80 percent of general cargo moves in containers, liners are the most common type of ship used to transport these higher value goods. Break bulk ships are used for non-containerized freight or for mixed loads where containerized and non-containerized freight is being hauled. Traditionally (before the 1960s), high-value cargo was moved using break-bulk packaging and shipping techniques. During the "break-bulk" era, high-value cargo was packaged in cases or pallets for shipment and loaded and unloaded on a piece-by-piece or pallet-by-pallet basis. Easy access encouraged the theft of electronics, appliances, clothes, engine parts, liquor, cosmetics, and cigarettes from terminals (including warehouses, docks, and transfer points) and during loading, unloading, and shipment. During the 1950s, high levels of pilferage from break-bulk shipments, combined with promises of increased efficiency, encouraged the U.S. military to experiment with containers. First used by military traffic commands, containers were extended to commercial use in the mid-1960s. Container use has continued to grow steadily in the United States and is projected to grow at 6 percent annually. Presently, 80 percent of U.S. overseas cargo trade is containerized. Over 60 percent of the world's deep-sea general cargo is transported in containers. Worldwide, more than 400 ports have the capability to handle containers. Many ocean carriers are now shipping cargoes in containers rather than break bulk. Generally speaking, the use of containers reduces the amount of handling that individual bags of cargo must receive thereby reducing the possibility of losses. Containers have become the primary means for shipping cargo between economically strong and stable countries. Along these trade routes, containerization of cargo approaches 100 percent. Containerized shipping is crucial in routes across the North Atlantic, and between the United States and Japan and neighboring
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countries. The technology and capital investments required to load, ship, store, and unload containers, however, limit their use on routes involving Less-Developed Countries (LDCs). In these markets, cargo is usually shipped according to the non-containerized classifications of bulk, break-bulk, and neo-bulk. Terminals to handle transported containers require more land for storage and transfer than do break-bulk or bulk terminals. Containers have received wide acceptance in the transportation industry, however, because of their numerous benefits in operating efficiency, including: Goods can be handled in less time, utilizing fewer personnel; Goods are better unitized and protected during shipment; and more goods can be shipped in a "unified" package that does not need to be trans loaded at ports or terminals, but can be shipped directly to the destination. Break-bulk marine transport is widely used to transport tree fruit, grapes, and bananas to and from ports lacking container-van loading facilities. This system is also used on older or smaller ships that have common cold storage rooms. The break-bulk designation refers to an older system in which individual packages are re-handled each time the cargo is transferred from one mode of transport to another. This method is costly due to slow loading and unloading, rough handling, and high labor costs. Break-bulk marine shipping dominates in certain trade lanes but is slowly losing ground to containerized shipping. In general, reefer ships are more efficient for trade lanes dominated by refrigerated products. Container ships predominate in trade lanes with a large share of dry freight. In most break-bulk systems, packed products are handled as pallet units. When a pallet load is broken apart, its inner surfaces are exposed to ambient conditions, which can increase product deterioration. These problems are minimized in newer ships that can handle pallet loads and have better refrigeration systems. Packed products in pallet units are sometimes transported part of the way in break-bulk ships, transferred at a port to marine containers, and transported in container ships to final destination ports. While the growth in containerized cargo will have the greatest impact on future US shipping trends, bulk and break-bulk cargo will remain extremely important through 2020. Break-bulk cargo vessels carry their shipments in barrels, bags, pallets, or other units. Bulk and break-bulk

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cargoes make up half of all cargo (by volume) entering or leaving the United States, and will continue to account for a large portion in 2020. Cargo freight rates for these vessels that operate in the Atlantic have remained relatively stable as demand for shipments between the United States and Europe has fluctuated. In the Pacific market, Asian economic difficulties and currency devaluations have greatly reduced the demand for cargo shipments from the United States to Asia, but the demand for shipments from Asia to the United States has actually increased. Generally, when one market slows down, excess vessels can be moved quickly into other markets. Thus the outlook for bulk and break-bulk cargo vessels should be stable for the foreseeable future. Break-bulk cargo will remain critically important in U.S. maritime trade, but because no major changes in this field are expected, the demands on port infrastructure, vessel safety, and law enforcement efforts, from this sector of the market, will remain relatively stable. Cargo ships have been used for hundreds of years for the transportation of break bulk goods such as cocoa beans, coffee, sugar and rice. Typically, the goods are shipped from a country where the goods are grown where manual labor may be plentiful and relatively inexpensive to a more industrialized country where the goods are processed and/or consumed and where labor costs become a significant expense. In the shipping industry, profit is made by keeping the ships on the move without significant delays in docking time for loading and unloading of goods which are being transported. When a ship comes to port, depending on the harbor, pilot tugs or the like may be employed to bring the ship to dock. Once docked, it is relatively impractical and inefficient to move the ship until it is ready to depart for its next destination.

THE IMPORTANCE OF BREAK BULK CARGO
The Nature of Break Bulk Cargo
Although most seaborne general cargoes are now containerised with resultant benefits -reduction in cargo handling, reducing the possibility of loss and damage and providing better protection 26

break bulk cargo will remain an extremely important cargo into the future. In particular, shipments of oversized and heavyweight items e.g. mining machinery, excavators, construction steel, refinery equipment for oil projects, generators and turbines for renewable electrical generation that cannot fit into containers, are all considered to be break bulk cargo. Some steel products might be suitable for containers however according to one majorsteel importer, ?Most steel products have never been conducive to being containerised for sea transportation. The heavy package weights and over dimensional sizes plus the sheer volume of shipments means that these cargoes must be shipped break bulk.?. All of these cargoes are critically important for future infrastructure development in India, such as railways, roads, ports, power plants and wind farm projects, housing and manufacturing

Value of Break Bulk Cargo
Traditionally, many high value products and goods were packaged and shipped as break bulk cargoes and this situation has not changed. Today, most of the break bulk cargoes carried remain highly valuable products e.g. windmills, power generator, steel products. One break bulk working group member also indicated that much of the break bulk cargoes carried by their ships comprise highly valuable commodities

Loading and unloading of break bulk cargo
Although cargo of this sort can be delivered straight from a truck or train onto a ship the most common way is for the cargo to be delivered to the dock in advance of the arrival of the ship and for the cargo to be stored in warehouses. When the ship arrives the cargo is then taken from the warehouse to the quay and then lifted on board by either the ship's gear (derricks or cranes) or by the dockside cranes. The discharge of the ship is the reverse of the loading operation.

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Loading and discharging by break bulk is labour intensive. The cargo is brought to the quay next to the ship and then each individual item is lifted on board separately. Some items such as sacks or bags can be loaded in batches by using a sling or cargo net and others such as cartons can be loaded onto trays before being lifted on board. Once on board each item must be stowed separately. Before any loading takes place any signs of the previous cargo should be removed. The holds should be swept, washed if necessary and any damage to them repaired. Dunnage may be laid ready for the cargo or may just be put in bundles ready for the stevedores to lay out as the cargo is loaded

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Advantages and disadvantages
The biggest disadvantage with break bulk is that it requires more resources at the wharf at both ends of the transport—longshoremen, loading cranes, warehouses, transport vehicles—and often takes up more dock space due to multiple vessels carrying multiple loads of break bulk cargo. Indeed, the decline of break bulk did not start with containerisation; rather, the advent of tankers and bulk carriers reduced the need for transporting liquids in barrels and grains in sacks. Such
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tankers and carriers use specialised ships and shore facilities to deliver larger amounts of cargo to the dock and effect faster turnarounds with fewer personnel once the ship arrives; however, they do require large initial investments in ships, machinery, and training, slowing their spread to areas where funds to overhaul port operations and/or training for dock personnel in the handling of cargo on the newer vessels may not be available. As modernization of ports and shipping fleets spreads across the world, the advantages of using containerization and specialized ships over break-bulk has sped the overall decline of break-bulk operations around the world. In all, the new systems have reduced costs as well as spillage and turn round times, in the case of containerisation, damage and pilfering as well. Break bulk continues to hold an advantage in areas where port development has not kept pace with shipping technology; break-bulk shipping requires relatively minimal shore facilities—a wharf for the ship to tie to, dock workers to assist in unloading, warehouses to store materials for later reloading onto other forms of transport. As a result, there are still some areas where breakbulk shipping continues to thrive. Goods shipped break-bulk can also be offloaded onto smaller vessels and lighters for transport into even the most minimally-developed port where the normally large container ships, tankers, and bulk carriers might not be able to access due to size and/or water depth. In addition, some ports capable of accepting larger container ships/tankers/bulk transporters still require goods to be offloaded in break-bulk fashion; for example, in the outlying islands of Tuvalu, fuel oil for the power stations is delivered in bulk but has to be offloaded in barrels

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Break bulk cargo operations include
Break Bulk Cargo operations include the handling, carriage, stowage and storage of cargo in individual items, i.e. crates, cases, cartons, bags, bales, bundles, drums, barrels etc., listed in a number of Bills of Lading, each consisting of a different commodity Stowage should aim at distributing the cargo for any particular port equally, or as nearly so as circumstances permit, in every hold, thus provision is made that all the cargo handling equipment is employed to its full capacity throughout the time the vessel is loading and discharging. It is best to ensure that the "heavy" hatch does not have to remain working for extensive periods after all other hatches are finished and have been battened down, with the added restriction probably, if only one gang and one hook is able to get access to the space being worked

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Where foodstuffs and fine goods are stowed (that is, goods such as carpets, clothes, etc., that may be easily damaged or take on taint) only clean nail free dunnage should be used and stowage should be found in separate compartments away from such obnoxious commodities as creosote, aniline, essential oils, petroleum, copra, hides, manures, cassia, certain chemicals, turpentine, newly sawn or most kinds of timber, green fruit, onions, etc. Weighty packages such as cases of machinery, railway bar or plate iron, blocks of stones, ingots or pigs of metal, etc., should always be stowed on the floor and the lighter cargo on top. As a general rule fragile and light packages should be stowed in 'tween deck space. The nature of the packages sometimes calls for them to be kept in a certain position, i.e. coils and rings on the flat, etc. Avoid stowing bale and light goods on top of cargo which has life and spring, or against bulkhead stiffeners, deck beams, brackets, frames, stanchions or other projections, using plenty of dunnage to protect them from contacting such projections and rough surfaces Each tier should be kept as level as possible (with packages of uniform size it should be perfectly level). Packages should not be stowed in such position that they tilt either way, as will occur at the turn of the bilge, or with the rise on floor in the fore part of the forward hold, etc., unless properly dunnaged or bridged Any break in stowage or broken stowage caused by the presence of pillars, stanchions, brackets, etc., for the filling of which certain packages are not available, or space which is unsuitable to receive a package of cargo, should be packed firmly with suitable dunnage, in order to prevent any movement of cargo in a seaway and to afford a stable and level platform for the next tier.

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Cargo Handling facilities at Kolkata Port Trust
Port has a comprehensive range of facilities to handle and transport various cargo including heavy lifts. Kolkata Dock System : The following are the dockwise details of Cargo Handling Equipment in use at Kolkata Dock System Cargo Handling Equipment at Netaji Subhas Dock In NSD the heavy lift yard at 1 NSD is served by a 200 tonne Hammer Head Crane. The 200 tonne crane at 1 NSD is the highest capacity shore based crane in India. The Bull Nose at NSD is another heavy lift yard where heavy lifts are off-loaded from lighters and loaded into wagons, etc., by two crawler mounted cranes. There are altogether six 20 tonne capacity crawler mounted cranes for handling heavy lifts/containers.

Three self propelled (full slewing and derricking type) floating cranes available for handling heavy lifts from and into ships.

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Virtual Jetty at Saugor
Kolkata Port Trust had commissioned in February 2004 a Virtual Jetty at Saugor, at a distance of about 1000 mtrs. from the western bank of Saugor Island, .for handling deep drafted vessels. The Virtual Jetty is functional for loading and unloading operations in all seasons and takes care of Panamax size vessels with draft of 10.5 mtrs. Four mooring buoys have been placed at four sides to tie-up the ship so that barges/small vessels can tie-up alongside for stable loading/unloading operation. The facility has a stable draft of 10.5 mtrs. throughout the year and not subject to seasonal fluctuations. Port facilities available at Haldia Dock Complex There are17 berths at Haldia Dock Complex of which 14 berths are located inside the impounded dock. Three oil jetties are located on the river. The main features of different berths of Haldia Dock Complex are as follows: Oil Terminals
Maximum Annual Capacity (Million Tonnes) Oil Jetty 1 (Commissioned in 1968) Oil Jetty 2 (Commissioned in 1991) Oil Jetty 3 (Commissioned in 2000) 2.2 236 90000 Permissible LOA (Metres) Acceptable Maximum DWT of Vessels (Tonnes)

6.0

277

150000

9.5

275

150000

Oil Jetty 1 handles POL, Paraxylene, Liquid Ammonia, Chemicals, LPG, Naphtha, Benzene, Butadiene, Py Gas, MO Gas, Butane, FO, Bitumen, etc. It has direct pipeline connections to user industries. Apart from the above, facility of receiving Slop/Ballast water is also available.

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Oil Jetty 2 handles Crude and POL products (SKO, HSD, Naptha, and FO) and has direct pipeline connection to user industries having five Rotary Counter Weighted Marine Arms owned by HDC. Apart from the above facility of receiving Slop/Ballast water is also available Oil Jetty 3 handles Crude and POL (HSD, SKO and MS) and has direct pipeline connections to IOCL refineries at Barauni and Haldia. Also, there are direct pipeline connection from 3rd Oil Jetty to storage facility of Reliance Industries Limited at Haldia All the three terminals are equipped with adequate Fire Fighting facilities. In addition, facilities for handling Class-B POL are available at Berth No. 3 inside the impounded dock. Besides, POL is also handled at two riverine barge jetties, having a total capacity of 0.5 million tones per annum.

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Mechanized Terminals
Annual Acceptable Capacit Maximum Permissible Maximum y DWT of (Million LOA (Metres) Vessels (Tonnes Tonnes) ) Bert h3 Bert h4 Bert h 4A Bert h5 2.25 3.25 3.0 1.2 239 239 230 183 90000 90000 90000 90000

Berth Number 3

Cargo Type Iron Ore, Thermal Coal, POL & Paraxylene through direct pipeline discharge. Thermal Coal

Equipment / Facilities Two Wagon Tipplers, Four Stacker-cumReclaimers, Two Ship Loaders, Two Wagon Feeding Systems Two Wagon Tipplers,Two Stacker-cumReclaimers, Two Ship Loaders,Two Wagon Feeding Systems. Two Stacker-cum-Reclaimers, Two Wagon Loaders, Two Mechanized Grab Handling Systems Two Unloaders

4

4A

Coking Coal Iron Ore, Coking Coal, Fertilizer Raw Material

5

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Expansive open storage available for stacking thermal Coal and Iron Ore. Additional open storage and covered storage available 4A is under license agreement with ISPHL & KoPT and the berth is fully mechanized for handling of coking coal with two Grab Type Ship Unloaders (20MT) capable of discharging on an average 14,000 MT/day, total integrated conveyor system with two Stacker-cum-Reclaimers, two wagon-loaders with private railway siding

Multipurpose Berths
Annual Capacity (Million Tonnes) Berth 4B Berth 6 & 7 Finger Jetty Berth 8 Berth 9 Berth 12 2.0 2.3 1.8 1.0 1.8 Acceptable Maximum DWT of Vessels (Tonnes) 90000 90000 90000 90000 90000

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Berth Number 4B 6 7 8 9

Cargo Type Coking Coal,Iron Ore, Coal, Other Bulk & Break Bulk Cargo Break Bulk, Dry Bulk & Liquid Bulk Break Bulk, Dry Bulk & Liquid Bulk Coking Coal, Limestone, Steel, General and other Dry Bulk Cargo Containers, Break Bulk & Dry Bulk Cargo except Coking Coal, Coke and other Black Cargo Bulk, Break & Containers

Equipment / Facilities Dumper / Payloader for Shore Transfer Pipeline discharge facilities Pipeline discharge facilities Dumper / Payloader for Shore Transfer Ship's Equipment One Mobile Harbour Crane, Eight Forklifts, Six Tractor-Trailer combinations, Twenty Dumpers, Four Front-end Loaders, Four Mobile Hoppers & Two EOT Cranes

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Berth Nos. 6 & 7 have pipeline discharge facilities. There is ample area outside the Dock for setting up tank-farms in close proximity to the Finger Jetty. Berth Nos. 4B, 8 & 9have direct rail connectivity to their respective back-up areas. Two covered transit sheds are located behind Berth No. 9 and Main Canteen of G.C. Berth respectively. Extensive cargo back-up hardstand area is available behind Berth Nos. 4B. Berth 12 is under license agreement with TMILL. Length of Berth-220 meters, Width-15.63 M, back-up storage space of 14000 square meters, covered space of 3000 square meters with gantry crane. One Mobile Harbor Crane of 100 MT capacity for handling bulk, break bulk and containers.

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In the impounded Dock System at Haldia, two additional berths,Berth no. 2 and Berth no. 13, have already been commissioned in June 2007 and December 2007, respectively. Comprehensive equipping plan / yard logistics being put to place to improve the productivity of the berths from 6,300 tonnes to 20,000 tonnes per day and make them cater to gearless vessels. Environmental Clearance has been obtained for the scheme related to Construction of a Riverine Jetty upstream of the 3rd Oil Jetty at HDC Container Parking Yard (CPY) The Container Parking Yard is served by one 30 tonnes Rail Mounted Gantry Crane for stacking of containers. About 1600 containers can be stacked at a time at the CPY. It has facilities for accommodating 12 reefer containers. The CPY is directly connected by Broad Gauge Railway line. Mobile equipment at Berth No 8 & 9 Berth nos 8 & 9 have a continuous quay head and are served by 3 mobile cranes, 5 tractortrailers, 7 forklifts, 3 tractors and 8 trailers for various cargo handling operations. Besides, 4 bull dozers and 12 pay loaders are also available for on board operations of coking coal and other bulk cargo vessels. Moreover, cargo handling equipment from private agencies are also available

Coal handling Plant at Haldia Dock
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Implementation of Port Operations Management System (POMS)
Kolkata Port Trust implemented and operating Port Operations Management System (POMS) from 01/10/10.The System has been developed with an aim to integrate the operational activities of Kolkata Dock System viz. Vessel, Cargo, Container and Railways with the Finance module. The system is also being integrated seamlessly by accepting the inputs from Customs and Port Community System (PCS) in the form of electronic messages with an objective to minimizing user intervention and attaining eventually the goal of paperless regime. All the concerned Stake Holders would be benefitted in their daily transactions with KDS.Once the system is fully in place. They are requested to extend fullco-operation to make the system a success.

Through this Import cargo manifest entry form ?manifest entry of cargo? ? Ship’s VCN no. ? Product line no. ? Importer’s name & adress ? Trade type.
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Here cargo description is recorded Such as Marks, Weight, No of packets/packages & its type

Similarily for export cargo- ship VCN no, exporters name & address , port or origin, port of destination, trade type are recorded.

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Here cargo detail- such as marks description, total weight, no of packages, and packages type are recorded.

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Pestle Analysis
? Political:
There is no intervention of West Bengal government on Kolkata Port Trust, because it is an major port out of 12 major ports of India which is governed by Central Government. As Kolkata port is a riverine port and it suffers allot due to draft problem. Kolkata port was receiving around 400 Cr. Per annum as a dredging subsidy from central government. But this subsidy is being decreased annually to some extent and in upcoming year it is being said by the ministry that they are not going to provide subsidy. Kolkata Port Trust Chairman Mr. R.P.S Kahlon, who was present in the seminar organized by Bengal Chamber of Commerce & Industry, said that ?we have been hearing about the withdrawal of dredging subsidy, through the ministry has not given this in written, there is a thinking at the planning commission - level and cabinet level, they are considering whether to continue to this or not. Phase out of dredging subsidy could impact the efficiency of Kolkata Port Trust and cargo handling could dip up to 30 million tons per annum.

? Economic:
Left front government ruler west Bengal for last 30 years, CM Shree Budhadeb Bhattachargee did nothing for the development of west Bengal, there was no such industrialization during these 30 years, but now TMC has taken over the left front.CM Mamta Banarjee is trying to develop the state to a for extent industrial growth rate has developed to 7.6% as an base of 3.4%. Per capital Income is Rs. 55.222, earlier it was Rs. 49.218(unless left front govt.) As there is no such industrialization in Bengal, due to this port not getting the business Mamta Banerjee is trying hard to attract the industries, if she can than the port will definitely get the business and which will help Kolkata port to accelerate its revenue.

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? Social:
West Bengal is located in eastern India, is the cultural hot state of India, Kolkata, the capital city in popularity nickname as ?The city of joy?. This city is the epicenter of the glorious Bengali tradition and is the commercial capital of eastern India. Here youth love to work as an IT professionals, they only prefer the job only of IT background that’s why west Bengal government is only attracting IT investors. W.B. govt. is providing fiscal &non-fiscal incentives to the IT investors leading call centre companies like GE capital, Spectramind (Next Genix) were contacted and convinced by the govt. to come in Kolkata. That’s why there is no social effect on Kolkata port. All IT investors who have invest or planning to invest, they don’t need much of cargo or project cargo, so they don’t need port for importing the cargo for their new set up

? Environmental:
Environment of west Bengal is of medicate type, neither hot nor cold that’s why employees feel comfortable during their working hours, they all try to give their 100% in every shift to increase the productivity of port, So there is no such environmental effect which disturb the working of Kolkata port

? Technology
Due to globalization, lots of private players of India and outside from India have invested in Kolkata. Through them Kolkata port is getting business such as- Electrosteel & Casting ltd. has its manufacturing unit at Haldia in west Bengal, it export per month 1200 to 1500 container across the global boundaries. To make the work more efficient port is using following technology ? EDI- electronic data interchange port has its own software called POMS(port operation management system) all the port operational activity are done through this software, after implementation of this software time taken in operational activity has reduced twice.

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?

GPS- Global Positioning System, due to riverine port, the port’s pilot has to bring the vessel from Sandhead, so to trace the position of vessel the marine department of Kolkata port trust in using GPS to reduce the turn round time of vessel, so that vessel doesn’t has to wait for port pilot to come and take the vessel to port’s lock gate.

?

WMS- (Wireless Marinetime Service) This is being successfully used by the dock master &dock pilot, with the help of Walky Talky they talk to each other while entering the vessel into dock and operating it

?

E-PORT- (Electronic Port) With the help of POMS the container agent book their cargo online and vessel agent declares the no. of container which his vessel will take of which container agent. In this Superintendent or Asst. Superintendent easily trace the position of container in container yard for loading or delivery

?

RFID- (Radio Frequency Identification) It is yet to be implemented. All planning has been done for its execution.

? Legal
Legal formalities of Kolkata port is same as all major ports Such asFor import- importer will have to give manifest and pay shore handling charges, warehouse charges, custom will pass the good after checking and imposing import duty. For export-exporter will have to file an application to dock manager for opening of export ,exporter will also have to file a cargo description in customs and will have to pay the loading charges. Shore handling charges is being fixed by the traffic authority of major Ports (TAMPS) they give a scale rate to the port and according to that scale rate port charges to the importer/exporter.

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Traffic Assessment
? How many traffics Kolkata port handles annually

CARGO TRAFIC: in million tones YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 KOLKATA DOCK SYSTEM HALDIA DOCK COMPLEX 8.693 32.567 9.945 36.262 10.806 42.206 12.596 42.454 13.741 43.588 12.428 41.792 13.045 33.378 12.540 35.005 12.233 31.015 11.844 28.084 TOTAL 41.260 46.207 53.022 55.050 57.329 54.220 46.423 47.545 43.248 39.928

? Financial Indicators

Description 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 i) Operating Income 1366.22 1382.16 1424.20 1495.15 1548.64 (Rs. Crores) ii) Operating Expenditure 753.21 864.14 1057.97 1067.71 1109.53 (Rs. Crores) iii) Operating Surplus (+) 613.01 (+) 518.02 (+) 366.23 (+) 427.44 (+) 439.11 (Rs. Crores) iv) Net Surplus (+) 529.86 (+) 77.77 (+) 121.29 (+) 144.05 (+) 138.24 (Rs. Crores) v) Operating Ratio (%) 55.13% 62.52% 74.28% 71.41% 71.64%

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? The Profile of Export/Import Commodities

46

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? Maximum size of vessel calling at Kolkata port KPD K.P. Docks 157m * 21.35m (515’ * 70’) No.1 KPD 155.45m * 19.55m (510’ * 64’) No.2 KPD 153.90m * 19.5m (505’ * 64’) No.3 KPD 102.10m * 14.70m (335’ * 48’) NSD N.S. Docks 172m * 24.30m (564’ * 80’) No.1 NSD 172m * 22.90m (565’ * 75’) No.2 NSD 172m * 22.90m (565’ * 75’)

? Loading & unloading rate per Break Bulk cargo

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? PPP (Public Private Participation) in your port In yet another setback post the pull-out of India-French joint venture Haldia Bulk terminal (HBT) from Haldia, Kolkata Port Trust (KoPT) has now failed to get any private player to build the proposed Salukhali Dock. Despite the controversy over HBT's pull out from Haldia in November last year, KoPT went ahead with its capacity expansion plan inviting Request for Proposal (RFP) for the Haldia Dock II project, at Salukhali, close to the existing Haldia dock. The Rs 1,700-crore project to build four berths at Salukhali, was proposed to be executed under PPP model. Although, KoPT had earlier claimed many private players were keen to participate, the tender floated seeking a interested private player for the project, has seen no response. The project would have added 23.4 million tonne capacity. ?This is true that there was no proposal. But we have got 160 acres land from the state for the project. Also, KoPT has nod from the public private partnership appraisal committee (PPPAC) for the project. KoPT can always float a tender for the project,? an KoPT official said.

? The challenges Kolkata port is facing ? Pensioners:

It has 25000 pensioners and port has to pay 125 Cr. per annum as a pension. ? Draft:

During high tide muddy water flow inside the port and when low tide come these mud and clay silt down, which reduce the draft of port, and for dredging port has to pay approx 400 Cr. per annum.

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? Meaning and description of the following –

? CFS The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo. ? DWT Deadweight tonnage is a measure of how much weight a ship is carrying or can safely carry. It is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew. The term is often used to specify a ship's maximum permissible deadweight, the DWT when the ship is fully loaded so that its Plimsoll line is at the point of submersion, although it may also denote the actual DWT of a ship not loaded to capacity. ? MV The mother vessel is the carrier that will actually carry your cargo overseas, so a bulk carrier or a container carrier. The reason for the distinction is that it might take several vessels until your cargo actually reaches the seaport. ? THC Terminal handling charges is an ancillary charge on some ocean freight shipments to cover the cost of moving the container from the container yard to ocean vessel. ? IPA IPA (Indian Port Association) is an organization that was conceived and constituted by the Major Ports of India under the Societies Registration act in 1966 with the prime objective of developing and increasing efficiency and productivity in ports and its working environment. The functioning body of IPA comprises of the Chairman of all
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Major Ports, which are the local authorities formed by a statute and function under the regulatory control of Ministry of Shipping, Road Transport & Highways, Govt of India. The Chairman of Association is elected in the Annual General Meeting while the Secretariat of IPA is headed by the Managing Director who operates from New Delhi. ? PCS Port Community System (PCS) is intended to integrate the electronic flow of trade related document/information and function as the centralized hub for the ports of India and other stakeholders like Shipping Lines/Agents, Surveyors, Stevedores, Banks, Container Freight Stations, Customs House agents, Importers, Exporters,

Railways/CONCOR, Government regulatory agencies, etc. for exchanging electronic messages in secure manner.

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SWOT Analysis of Kolkata Port Trust
? Strength: The major strength of Kolkata Port Trust ? ? ? ? It is situated in the middle of Kolkata City. It is connected to National highway & Eastern Railway, through this Importer/Exporter easily transports their goods. Custom office is in the port premises by which Importer/Exporter easily do their shipment. It has vast land.

? Weaknesses: ? ? ? ? ? Major weakness of Kolkata Port Trust is draft problem. Non-Mechanized berth. Non utilization of dry dock and some oil-jetty. Improper stacking of container in container terminal. Non-utilization of vacant area in the port premises and out of it.

? Opportunity: ? ? ? Kolkata Port Trust attracts more Container Vessel. Few more berth required for container. Container must be stacked properly and trace accordingly.

? Threat: There is only threat and it is a major threat, that is Silting of Sand and Clay which reduce the draft of port.

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Recommendation

? Clerk level employee’s knowledge should be enhanced by giving them proper computer training. ? Employee’s should be sent for seminars where they can meet and talk to other ports employee, where they can know the other ports are handling the problem which they are facing. ? Top level management must interact with lower level to find out the solution, if there is any problem. ? All unutilized berth must be utilized and berths should be highly mechanized and multipurpose. ? Dredging of port should be privatized – Private Player are attracted for the dredging of port. ? Except main line operations, All other should be outsourcing, such as – hospitality, gardening, sweeper, mechanize lighting and fixture etc. ? The cantilever crane which has the capacity to handle 200 tones, should be utilized properly, non utilization is causing the damage and the crane is depreciating.

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Conclusion
? Kolkata port is one of the oldest port in India, which was made by the East India Company. From that time it is successfully running till today, Earlier port was having 40000 employees. ? Major problem of Kolkata Port Trust is the draft problem, so to get deeper draft, it has made an another dock complex at Haldia in 1977. ? Now the Kolkata Port Trust is successfully running with dock complexes (1) Kolkata Dock System (KDS), (2) Haldia Dock Complex (HDC).With the help of these two dock complex Kolkata Port Trust is handling traffic approx 39.928 million tones in cargo and 600235 TUE’s in Containers. ? But, In present scenario things has totally changed, Due to draft problem Kolkata Port Trust is losing its business, because for dredging is requires 400 Cr. annually. ? Secondly Kolkata Port Trust is also suffering because of its pensioners. Today port has 9000 employees and 25000 pensioners, due to that they have stopped the recruitment process. ? Kolkata Port Trust is planning to develop the port at Sagar which is around 230 Kms. away from the Kolkata where they will able to attract the mother vessel, this project might finished at end of 2015. ? Therefore, I can say that Kolkata Port Trust is trying their level best to facilitate the public. The dedication, which the top level management is showing for the completion of this project is mind blowing, after seeing their dedication, I can say that KoPT will surely finish the project at within the estimated time.

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Bibliography

? On spot training. ? www.kolkataporttrust.gov.in ? Seminar held on “Importance of Waterways for Economic development” Organized by “The Bengal Chamber of Commerce and Industry”.

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