Page 49 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes major Indian ports worsened to 4.66 days during April-December 2011, from 3.41 days in 2004-
05, and was relatively higher in some ports like Paradip, Kolkata, Vizag, Tuticorin, Mormugao
Mumbai, and Kandla. The average output per ship berth-day was 10752 tonnes for all major
ports, with 25782 tonnes per ship-berth-day for the JNPT, and 2765 tonnes for Kolkata port. With
the average turnaround time in India already relatively high by international standards, the
turnaround time of Singapore port being less than a day, what is cause for worry is the further
rise in average turnaround time and average pre-berthing time though average output per ship-
berth-day has increased in 2010-11 and April-September 2011 (Table 2.7).
Table 2.7: Some Performance Indicators for Major Ports in India

Source: Update on Indian Port Sector (September 2011), Ministry of Shipping, Government of India.

Union Budget 2011-12 has increased the allocation of funds for infrastructure and enhanced the
limit of tax free bonds for the ports sector up to ` 50 billion. The government is also making all
round efforts to increase port capacity in the country through the development of additional
berths at the major ports, mechanization, deepening of channels and harbours to receive bigger
vessels, improved rail and road connectivity and by facilitating similar development at the non-
major ports promoted by state governments. The biggest public-private partnership (PPP) project
in the ports sector has been awarded recently in the JNPT, Mumbai; the biggest dredging project
is also being taken up there. More transshipment of Indian EXIM containers is expected to take
place at Indian ports, especially at the new International Container Transshipment Terminal at
Cochin. Establishing one additional major port in each of the maritime states that is interested
in providing support for such development is under consideration and a technical committee is
evaluating proposals for new major ports received from the states of Andhra Pradesh, Gujarat,
Karnataka and Kerala. The government has successfully implemented the Port Community
System as part of a paperless regime for transaction of business at ports. However, there is a
need to further strengthen this major artery of Indian trade. Better infrastructure is needed
particularly for handling crude oil. Other issues include upgrading the facilities at existing ports
with regard to cargo handling, stevedoring, pilot age services, bunker services, and warehousing
facilities; increasing the drafts to facilitate transshipment of Indian cargo which otherwise takes
place outside the country; and rationalising the different port charges to make them comparable
with best practice levels.

2.5.4 Storage Services

Warehousing services are an integral part of both inbound and outbound logistics, as goods
produced have to be stored in different geographical locations before shipping/dispatch as per

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