a case study on cochin port trust

A Case Study on Changing A Case Study on Changing Business Environment at Cochin Port TrustBusiness Environment at Cochin Port Trust

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M.Tech. Mechanical Engineering (Production and Industrial Engineering)

Department of Mechanical Engineering.Mar Athanasius College of Engineering.

Kothamangalam.

Presented By Muhammed Salih.K

Table of contents

1. IntroductionInfrastructure

2. Organizational StudyLay out & History of Cochin Port Trust

4. Changing business environment

Supply chain management & Role of transportation in SC

Management and Ownership Pattern

Organizational Structure and Department of CPT

Report on Functional Areas of CPT & Summery

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Taguchi Philosophy

Cause and Effect diagram

3. Proposed material handling equipment

Analysing the causes

Discussion and SolutionConclusion

Publication details

References

Supply Chain Management SCM

• The strong chain of such competent players to supply goods

and service to the customers.

• Effectively, Efficiently and Economically.

• Transportation has an important impact on retail price of a

commodity. It has a large impact on SC responsiveness and

efficiency.

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Lay out of Cochin Port TrustLay out of Cochin Port Trust

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One of the Major Ports in India

Modern port built by Sir Robert Bristow between 1920-1940.

Declared as a major port on 29th February 1964 under the MPT Act 1963

One of the Major Ports in India

Modern port built by Sir Robert Bristow between 1920-1940.

Declared as a major port on 29th February 1964 under the MPT Act 1963

History of CPT

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Chennai

Colombo

65% OF INDIA’S EXPORT / IMPORT CONTAINERS ARE TRANSSHIPPED THROUGH NEIGHBOURING COUNTRY PORTS.

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Chennai

Colombo

THE COCHIN OPPORTUNITY

CPT advantage

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Ownership Pattern

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Cochin port is an autonomous body under the Government of

India and it is managed by a Board of Trustees with members

appointed by Govt. of India. The chairman of the Board act as

Chief executive Officer. The Board of Trustees consists of 18

members.

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Departments of CPT

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• Administration Department

• Finance Department

• Traffic Department--Berth allocation, Cargo handling

• Marine Department--Pilotage, Water side operation, Dredging

• Mechanical Department

Functional Areas of CPT

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• Mattanchery Wharf [Berths Q 1 to Q 4]

• Ernakulam Wharf [Berths Q 5 to Q 10]

• Cochin Oil Terminal (COT)

• North Tanker Berth (NTB)

• South Tanker Berth (STB)

• Single Point Mooring (SPM)

• Dry dock workshop 10

SUMMARY OF STUDYFinancial performance

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Capacity Utilization

NO Type of Equipment Availability Capacity in Tones

1Heavy Duty Reach

Stacker1 45

2 Mobile Crane 1 10

3 Forklift Trucks 20 3

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Source: National Conference on Ports and Shipping 2011 Background paper

Poor efficiency and Responsiveness of SC

Port performance

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Source: Administrative Report CPT 2010-2011

Distribution of Cargo handled 2010-2011

Dry bulk 10.27 lakh tons

(1 MT)

Break bulk 1.1 lakh tons

Type Avg TRTAvg PBD

Dry bulk 5.98 3.99

Break bulk 3.74 0.99

Shipping Statistics at CPT

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The average turnaround time of ships having cargo work increased to 2.20 days during the year from 2.08 days in the preceding year.

Need to achieve strategic fit in SC

Market Condition

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Long run Only nominal profit

Reduced TRT improves the responsiveness of SC

Proposed Material handling equipmentDescription of crane

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Details 120 HMC

Maximum reach required 34 m

Grab weight 20 T

Load/ move at 11 to 19 m 75 T

Load/ move at 34 m 39 T

Average load/move

(Excluding the grab weight)

37 T/grab

Handling rate/hour 37 * 20 = 740 T/ hr.

Equipment efficiency 85%

Handling capacity / hour 740* 0.85 = 629 T/hour

Handling capacity / day 629 * 21= 13209 T/day

Annual handling capacity 13209 * 300 = 3,989,118 i.e. 3.98 MT

Assumptions

On stream days considered in a year 302 days

Equipment availability per day 21 hours

Material handling equipment efficiency 85%

No cycles per crane 20

Tariff for mobile crane

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Sl. No Type of Cargo Rate per Ton @ Rs.

1 Dry Bulk 50.0

2 Break Bulk (steel) 40.0

3 Break Bulk (Others) 120.0

Operating Cost

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Si No Particulars Working 120 T HMC with Grab

1 Capital Cost  2352.5 lakhs

2Operating and Maintenance Cost

2. a Fuel4000 hours (70ltrs/hour@Rs.63) 176.4 lakhs

2. b Repair and Maintenance Cost 5% of Capital Cost 117.625 lakhs

2. c Insurance 1% of Capital cost 23.52 lakhs

2. d Depreciation

10.34% on capital cost(As per normsPrescribed inCompanies Act)

243.24 lakhs

3 Other expenses 5% of Capital Cost 117.625 lakhs4 Total Cost   678.41 lakhs

Operational Feasibility

Break bulk handled last year= 10.27 lakh ton=1. 027 MT=1027000 ton

Revenue from Cargo handling= 1027000 X 120=12.32 Crore per annum

Operating Cost of Crane= 6.78 Crores per annum

Balance on hand=5. 54 Crore per annum

Capital cost= 23.52 crores

The expected payback period= 4.3 years

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Reduction in average turnaround time

Present average turnaround time= 5.98 daysPresent average turnaround time= 5.98 days

Capacity of crane= 13209 T/hour

No of ships entered with dry bulk 2010-2011= 59

Total ton of cargo handles in 2010-2011= 1027000 ton

No of days required for unloading cargo=1027000/13209=77.75 Days

Improved average turnaround time=77. 75/59=1.32 DaysImproved average turnaround time=77. 75/59=1.32 Days

Capital cost required = 23.52 CroresCapital cost required = 23.52 Crores

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Outlay of 11th Plan ( Projected GBS in Cores)

SCHEMES

  Current Price

DG (Shipping) 58.35 66

Indian Maritime University 262.25 300

DG (Light house and light ships) 132.62 150

IWT Sector 543.75 615

Ship Building and Repairs 150.13 170

Major Ports 1818.68 2056.98ALHW 235.51 266.37

Others* 1269.49 1425.66

GRAND TOTAL 4464.96 5050

10th Plan

Source:11th Five year plan planning commission of India04/12/23 21

Changing Business Environment

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Companies has to adopt the following strategies

Expansion of Business

Acquisition on new Companies

Merging with other Companies

Formation of Strategic Alliance

Companies has to adopt the following strategies

Expansion of Business

Acquisition on new Companies

Merging with other Companies

Formation of Strategic Alliance

Department Hierarchies Dry dock and Workshop

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Departments

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Defining the problem The Taguchi Philosophy

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Cause and Effect Diagram

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Poor Utilization of Natural Resources

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Dry dock Statistics 2010-11

.

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NAME OF VESSELNO OF DAYS

DOCKED

OWNERED

BY

1Jewel of Muscat

5  

2 Coramandel Supporter VII 49  

3 M.V.Vrindha 10  

4 M.V.Balavan 231 Port

Total Dock Utilizations in Days 295  

Absence of SOP

Poor Employee Engagement

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None of the welders are certified. So underwater welding of vessels should be done by third party.

Absence of QIP& Motivation

Poor Employee Engagement

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Absence of Motivation Absence of QIP

Little Mechanization & Management

Mechanization

•Dry dock still uses the old

manual method for docking

which require minimum of

75 labours.

•More chances for accident

while docking the vessels.

Engineers are not confident

on this method .

Management

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Creating Unemployment

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Refined Cause and Effect Diagram

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Discussion and Solution

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Insufficient material handling equipment in port operation

is the major factor for current port performance.

Cochin port Trust could not collect single money from the

11th five year plan by submitting a valid project report.

The management of Cochin port trust could not identify the

crises in financial situation that they are going to face.

Discussion and Solution

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The Port Trust could not be able to create employment

opportunity for the last 15 years.

For any organization want to sustain in this type of business

environment should possess a strong quality team inside the

organization.

No organization can be profitable with unsatisfied employees

and bad working culture.

Modified Organisational Chart

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Present Structure on 1964Present Structure on 1964

Conclusion

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Future of Cochin Port Trust is depended on the business strategy

to be adopted by Port authorities . At the present situation the

issues identified in this study should be addressed before making

a step on it .

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Publication of Work

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1. The work is published in International Journal of Engineering Science

and Innovative Technology . Paper ID: IJESIT1909201201_445

2. The work is published in IOSR Journals International Organization of

Scientific Research. Paper ID: H31092

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References

CPT Administrative Reports 2005-11

Eleventh Five Year Plan Volume III Planning Commission Government of India

Web site Cochin Port trust

Text Book : Total Quality Management by S.M Sundara Raju,

Text Book : Research Methodology by Paneer Selvam

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