1. BOX 12.1: OBJECTIVES OF PORTS
BOX 12.2: SHIP - BIGGER THE BETTER
BOX 12.3: VALUE ADDING SERVICES
AT PORT
BOX 12.4: PORT LABOUR
PRODUCTIVITY
BOX 12.5: PORT COSTS
PORTS
AR. MUKUL SAINI
M.TECH 1ST YEAR,
INFRASTRUCTURE SYTEMS
CTRANS, IIT ROORKEE

2. INTRODUCTION
Port
is an infrastructure facility for receiving ships and transferring
cargo.
 IT can be classified into1.
Sea port or port.
2.
Inland port.
3.
River port.
4.
Dry port.
SOUTH KOREAN PORT OF BUSAN
 India has 13(12+1) major ports and 187 notified/intermediate
ports, handling 95% of foreign trade by volume and 70% by value.
 All major ports are governed by ‘The major ports trust act,1963’
under the prime responsibility of central government and was
amended in 1997 for enabling private participation.
 Minor ports are under the jurisdiction of various state governments
and are governed by ‘Indian ports act, 1908’.

3. BOX 12.1: OBJECTIVES OF PORTS
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Providing unimpeded navigation to all forms maritime transport.
Offer sheltered and safe accommodation to vessels.
Facilitating quick, efficient and cost effective cargo handling between
inland and maritime transport systems and vice versa.
Arrange for smooth aggregation and dispersal of cargo between port
and hinterland.
Offer various services and facilities required by ships and
cargo, namely bunkering, fresh water supply, repair, security, fire
fighting, transit storage etc.
BETTER INFRASTRUCTURE PLANNING & ITS MANAGEMENT

4. BOX 12.2: SHIP - BIGGER THE BETTER
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Containerization has captured now 60% of International trade with a history
of just fifty years.
Containerization enables door-to-door, efficient and seamless movement of
cargo, which has transformed global trade. The growing international trade
has impacted the size of the ship as well.
Initially container ships had the capacity of about 480 TEU (Twenty foot
equivalent units=Twenty foot long containers).
First panamax size containerships, having capacity of 1000 TEU to 2500
TEU [now upto 5000 teu] were built in early 1970s.
The capacity crossed 4000 TEU in 1980s and were further improved to
6000 TEU at the beginning of twenty first century.
BUILT
NAME
MAXIMUM TEU
2013
18,270
2012

MÆRSK MC-KINNEY MØLLER
CMA CGM MARCO POLO
16,020
2006
15,200–15,550
This increasing size putsEMMA MÆRSK
tremendous pressure on ports to improve their
MSC DANIT
2009
14,000
infrastructure facilities, services and labour practices for better delivery to
face competition in age of globalization.

5. BOX 12.2: SHIP - BIGGER THE BETTER

6. BOX 12.2: SHIP - BIGGER THE BETTER
CONTAINER SHIP SIZE CATEGORIES
NAME
CAPACITY
(TEU)
LENGTH
BEAM
DRAFT
ULTRA LARGE 14,501 AND
CONTAINER
HIGHER
VESSEL (ULCV)
1,200 FT
160.7 FT (49 M) 49.9 FT (15.2 M) AND DEEPER
(366 M) AND AND WIDER
LONGER
NEW PANAMAX 10,000–14,500
1,200 FT
(366 M)
160.7 FT (49 M)49.9 FT (15.2 M)
965 FT
(294.13 M)
106 FT
(32.31 M)
POST PANAMAX 5,101–10,000
PANAMAX
3,001 – 5,100
FEEDERMAX
2,001 – 3,000
FEEDER
1,001 – 2,000
SMALL FEEDER UP TO 1,000
39.5 FT (12.04 M)
PANAMAX vessel is limited by the
Panama
canal's
lock
chambers,
which
can
accommodate ships with a beam of
up to 32.31 m, a length overall of up
to 294.13 m, and a draft of up to
12.04 m.

7. BOX 12.3:
VALUE ADDING SERVICES AT PORT
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‘Partnership with the port’ is a new concept initiating a synergy between
users and port establishments : ‘Port authorities offer value adding
services to their key clients’.
These value adding services are apart from conventional services like
marine related, port structure related and land access related which are
generally provided by port authorities.
Jebel Ali Port, Dubai, offers a large free-zone to tenants to import and
assemble intermediate products into final products .
Port of Rotterdam provides logistics centre facility to Reebok for
consolidating its warehousing and distribution activities in europe. Former
gets dedicated clientele and later benefits from cost effective logistics. Local
government is benefitted by additional employment generation and wealth
creation.
However such relations depends upon efficient port operations, strategic
location, good connectivity with hinterland, port labour productivity etc.

8. BOX 12.4:
PORT LABOUR PRODUCTIVITY
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Ports in developing countries as well as some developed countries
suffer from overstaffing.
Labour regimes, collective agreements with the management, and
labour practices are inflexible, outdated and inefficient in all state
owned ports.
Strong unions, often protected from competition of outsourced
labour, develop great bargaining power due to political interference
which hinders efficient operations at port, reducing overall
productivity.
New manglore port, cargo handling workers have only 13 days
work but get wages for 27.5 days constituting 100% surplus labour.
Kolkata port uses gangs of 28 workers for container handling as
against 15 workers in mumbai port while at jawaharlal nehru port
same task is successfully performed by gangs of for workers only.

9. BOX 12.4:
PORT LABOUR PRODUCTIVITY
Labour Reforms required : Modernization and adoption of high-tech equipment in port
operations on priority basis.
 Modernization focusing skill development and change in workers’
job description.
 Monolithic pay structure be substituted by piece-based pay structure
i.e. incentive based pay schemes for labour.
 Labour monopolistic practices must be undone by allowing
outsourced labour by private operators for efficiency.
 Promoting competition.
 Instituting legal reforms by revisiting archaic labour laws and
regulations.
 Relaxing labour norms for high skilled jobs in port sector.

10. BOX 12.5: PORT COSTS
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In early times port-related costs were insignificant in comparison
with total ocean transport costs.
Presently, port costs are to be gauged in relation to its ‘percentage’
to the delivered price.
For high value: low volume commodities like electronic goods port
costs can be less than one percent of the delivered market value.
For low value: for heavyweight commodities, port costs can be
fifteen percent of the delivered market value.
In the total logistics chain of ocean transport, port cost is considered
among more controllable expenditure.

11. THANK YOU