PERFORMANCE & PROSPECTS OF ROLL-ON/ROLL-OFF SERVICE:PERFORMANCE & PROSPECTS OF ROLL-ON/ROLL-OFF SERVICE: A STUDY WITH SPECIAL REFERENCE TO COCHIN PORT TRUSTA STUDY WITH SPECIAL REFERENCE TO COCHIN PORT TRUST

INDIAN MARITIME UNIVERSITY

SCHOOL OF MARITIME MANAGEMENT COCHIN CAMPUS

29th May 2015

INTRODUCTION

The Ro-Ro facility was build with the intention to improve the connectivity

between Vallarpadam (ICTT) and Willingdon Island. The Cochin Port

Trust jointly with IWAI had formed a joint management committee (JMC)

for the purpose. LOTS shipping, a Cochin-based shipping company had

won the 10 year contract for ferrying the containers between Willingdon

Island and Vallarpadam by Roll on-Roll off (RO-RO) and Lift On-Lift Off

(LO-LO) modes. The time for transporting container trucks by RO-RO

mode was expected to be 20-25 min. The service enables the movement of

containers preventing hundreds of trucks from the crowding the Cochin

roads and has reduced transportation distance of 38 Km to 2.5Km

“Even though the Ro-Ro provides a window for easier and speedy

movement of container especially from the south of Kerala towards

ICTT Vallarpadam this facility is not being optimally utilized as a

result the actual estimated container moves of 750 containers per

day has fallen down to a maximum of 150 containers per day

therefore the service is suffering from continuous losses”

RESEARCH ISSUESRESEARCH ISSUES

1. Why the Ro-Ro service is unable to perform to its optimal level and why is it incurring so much of loss in spite of its immense potential?

2. Why is the Ro-Ro service unable to get the expected amount of cargo for its optimal functioning?

3. Why is the Ro-Ro service incapable of rendering continuous service and also unable to stick on to their scheduled service time?

OBJECTIVES OBJECTIVES

1.To understand the reason for the incapability of Ro-Ro service in rendering continuous service?

2.To understand the reasons why the service is not following a strict time schedule?

3.To identify the reason why is the Ro-Ro service unable to get the expected amount of cargo for its optimal functioning?

4.To recognize the reasons why the Ro-Ro service is unable to perform to its optimal level and why is it incurring so much of loss in spite of its immense potential?

5. To offer suggestions for improvement in the performance of the service

METHODOLOGYMETHODOLOGY

In order to measure the performance of Ro-Ro service in Cochin Port Trust the

stratified disproportionate random sampling method has been adopted.

At the first level major stake holders of Ro-Ro have been grouped under two

sections namely

1.The service providers

2.Service users

At the second level Ro-Ro operators and Cochin Port Trust are considered as

service providers the truck operators, drivers and freight forwarders are

considered as the major users of Ro-Ro.

Cont…..Cont…..

At the third level in each category 5-15 samples have been surveyed with

help of pre-tested structured interview schedule.

For the purpose of comparison of the monthly performances and the

overall performance of the Ro-Ro service with the expected performance,

secondary data of the Ro-Ro operation and cargo movement have been

collected and analyzed.

SAMPLES SELECTEDSAMPLES SELECTED

SL.NO DEAILS

1 USERS TRUCK OPERATORS 5

TRUCK DRIVERS 10FREIGHT FORWARDERS 10

2SERVICEPROVIDERS PORT EMPLOYEES 15

RO-RO EMPLOYEES 5

TOTAL 45

THE RESULT AND DISCUSSION OF THE STUDY

Cargo handled in Ro-Ro from Cargo handled in Ro-Ro from 23rd February 2011 to 30th April 2015

SL.NO TYPE OF CONTAINER NUMBER OF TEU’S

LOADED CONTAINER

1 20 FOOT 64,532

2 40 FOOT 36,253

EMPTY CONTAINER

3 20 FOOT 15,688

4 40 FOOT 12,364

TOTAL 1,28,837

THE CURRENT RO-RO SCENARIOTHE CURRENT RO-RO SCENARIO

Total number of days =1528 days Total no of working day =1239 days (Excluding Sundays and customs

. holidays)

 Expected or predicted container movement per day = 750 TEU’s

Expected total movement for 1239 days = 9, 29,250 TEU’s (approx.) Actual movement for 1239 days = 1, 28,837 TEU’s Therefore average movement per day = Less than 150 TEU’s

SUGGESTIONS PUT FORWARD BY THE SAMPLES TO SUGGESTIONS PUT FORWARD BY THE SAMPLES TO IMPROVE THE PERFORMANCE OF THE RO-RO SERVICE IMPROVE THE PERFORMANCE OF THE RO-RO SERVICE

1.To improve the quality of the service

i. 62.22% of the population suggested to take measures reduce the waiting time.

ii. 20% had suggested about increasing by introducing user friendly services.

iii. 17.77 % of the samples suggested to offer customer oriented services to improve the overall performance.

Cont…..Cont…..

2.To improve the reliability

i. 37.77% of the population suggested that reliability can be attained by following a strict time schedule.

ii. Another 37.77% suggested that reliability can be attained by offering un interrupted services

iii. Remaining 24.44%suggested both above mentioned aspects need

to be incorporated together in order to offer a reliable service.

Cont…..Cont…..

3. For infrastructural development

i. 42.22% suggested to improve the overall infrastructure by modifying or changing the existing Ro-Ro vessel or by introducing an additional Ro-Ro vessel.

ii. 4.44% suggested on performance improvement by recruiting trained employees for the service.

iii. 35.55% believes that technological up gradation can bring about efficiency and development in the service.

iv. 17.77% suggests all the three above mentioned aspects must be inculcated together for the best performance .

FINDINGS AND CONCLUSIONS

ADVANTAGES OF USING RO-RO SERVICEADVANTAGES OF USING RO-RO SERVICE

i. Cost efficient and speedier movement

ii. Pollution Reduction

iii. Reducing Traffic Congestion

iv. Enables Eco-friendly transportation

v. Reduction of operation and maintenance cost

vi. Safer mode of transport

REASON FOR THE REDUCTION IN DEMAND OF REASON FOR THE REDUCTION IN DEMAND OF RO-RORO-ROi. Trailer drivers have an affinity to wait for Ro-Ro ferry.

ii. The service in not following a proper time schedule hence timely delivery of cargo can’t be assured

iii. The waiting time for Ro-Ro service is very high

iv. Ro-Ro unable to offer uninterrupted service due to frequently breaks downs.

v. The present Ro-Ro tariff is not very attractive as the profit made compared to Road only mode of transport in terms of fuel cost

vi. Lower cargo movement at Vallarpadam container terminal than what was expected from the facility.

SUGGESTIONS TO IMPROVE THE PERFORMANCE SUGGESTIONS TO IMPROVE THE PERFORMANCE OF RO-RO SERVICE OF RO-RO SERVICE

i. The potential opportunity for highest performance during the peak hours (8AM-11AM & 4PM-8PM) must be utilized at the most optimal level by attracting more customers with offers/schemes or special peak time prices .

ii. Waiting time between two consecutive services need to be brought down, either by reducing the transit time (25 min) or by introducing an additional Ro-Ro service, at least during the peak hours

iii. Providing refreshment stalls for the waiting trailer drivers reducing their boredom.

iv. Advanced technological Vessels capable of rendering uninterrupted service which is more fuel efficient and cost efficient.

Cont…..Cont…..

v. Concession price must be offered for regular Ro-Ro users which help in retaining these customers

vi. Agreements may be made with the regular users. Credit facility can be made available for these users with whom agreements have been made which can further interest the transport operators in using the facility.

vii. Government initiatives must be taken to support the initial performance of Ro-Ro.

viii. The Ro-Ro service lack proper marketing hence the potential users of the Ro-Ro must be identified and made aware of the advantages of the facility .They can be offered attractive packages for using the facility and can be made loyal customers of the Ro-Ro facility.

THANK YOU….THANK YOU….