A REVIEW ON INFRASTRUCTURE STUDY FOR PORTS

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1 A REVIEW ON INFRASTRUCTURE STUDY FOR PORTS Parekh Varunkumar 1, Patel Vivek 2, Shah Rushabh 3 PG. Student, SNPIT & RC, Umrakh, Gujarat, India 1 PG. Student,, SNPIT & RC, Umrakh, Gujarat, India 2 Asst. Prof., S, SNPIT & RC, Umrakh, Gujarat, India 3 Abstract: This research work has been aimed to carry out the current infrastructure of Gujarat private and government ports. This report seeks to empirically analysis port infrastructure changes in Gujarat state with three cargo belts of Gujarat and dedicated freight Corridor Corporation of India limited from JNPT Maharashtra to DANKUNI West Bengal. The result of our project represents the total infrastructure changes indicate the pricing of sea port infrastructure is primary cost base but other factors also relevant to port pricing models and servicing models are actually used by ports. Among those factors, in particular, demand and port management and governance model have been found to significantly impact port infrastructure changes. Given the explanatory nature of this investigation also discuss the limitation and implication for port authority, ministry of shipping, ministry of affairs, custom department, central government, private companies, policy maker and future research. We can involve if our government and ministry of shipping involves the rules and regulation for the effective operation of ports, and if we provided facilities like world biggest and best port like Shanghai port at china; Port of Roffordam at Netherland; and port of Singapore at Singapore like remote access GPS operated vehicles, supports from huge river, heavy crane load carrying capacity, good facilities with backup yard, pipe line facilities for the liquid and gases material at least up to connected to interstate connection. From the port infrastructure facilities we can manage large number of bulk capacity from the water transportation. From the effective use of port, the GDP growth is increase. Through the port operation it increase the employment and surrounded are facilitated with the basic needs and requirements. With the usage of port, it increases the relationship of two countries with the safety purpose and business. Keywords: Port infrastructure, port connectivity, port technology, Indian ports scenario, cargo belt of Gujarat, port law in India. I. INTRODUCTION Construction industry can be classified into many segments depending on a company s specific area of activity ranging from industrial, housing, commercial, utilities and civil work and development if infrastructure. The importance of the construction planned outlay. The proposals of the industry are good, as the gap between the demand and availability of infrastructure facilities and housing needs has to be bridged. Though the demand from government agencies may decline, the All rights reserved by ISSN :

2 growth in demand will come from the private sector. Given its own capital expenditure constraints, the government is encouraging private participation in developing the infrastructure like bridge, roads, ports and airport etc. new concepts like Built Operate Transfer (BOT), Build Own Operate (BOO), Built Own Lease Transfer (BOLT) and Built Own Operate Transfer (BOOT) are being accepted in industrial circles. India is gifted with an extensive coastline of about 6000km dotted with from 20 million tonnes in 1952 to 173 million tonnes in it is estimated to go up to 273 million tonnes by Gujarat is the state located on the peninsular coast. It has nearly 1600 km long coastline, which accounts for the ¼th of the coastline of India. Gujarat state has shown significant development in areas of ports as it is being nearest maritime outlet to Middle East, Africa, and Europe. State of India like Punjab, Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Delhi, Himachal Pradesh and Jammu & Kashmir are very well connected with Gujarat both in highway and railways. Gujarat is also experiencing a phenomenal interest in investments both from Mega-industrial sectors within the country and also from top trading activities has led to increase in exports and imports. Major exports and imports are taken place through sea consignments. II. WORLD SCENARIO Modern sea ports play a key role in the development of the global economy and efficiency, not just geographical location, has become the driver to attracting traffic. Like every other industry, the never ending quest for increased efficiency and improved customer service defines modern port operations and it is not surprising with billions of pounds of revenues at stake. As a result, operations have become more complex, where logistics, inventory controls, just-in-time service and sophisticated tracking systems are basic requirements that need to be balanced with the need for increased security and a safe working environment. Port authorities, maritime construction groups and dredgers are joining economists and environmentalists to find a way to protect ecosystems whilst achieving port expansion. Economic prosperity should be a shared value that reaches all corners of our global community, but it should not be achieved at the expense of other aspects of our global interests. This inner tension demands creative solutions that promote good policy choices, where ecosystems are not sacrificed for economic advancements. By using ecosystem services valuation to quantify the importance of biodiversity and viewing it as natural capital, the process can hopefully be applied to the maritime industries, port development and related dredging operations. III. MILESTONES IN THE INDIAN PORT SECTOR 1870 Calcutta (Kolkata) Port is commissioned. The port which ranks among India s oldest and only riverine port is situated 232 kilometres upstream from Sand heads, the longest pilotage distance in the world The first wet dock in India - Sasson Dock is constructed on the Bombay harbour and is followed by the Prince s and Victoria Dock in 1880 and 1888 respectively, setting off the development of Bombay (Mumbai) port. All rights reserved by ISSN :

3 1881 Madras (Chennai) port is commissioned, six years after the construction of the port was proposed by the Madras Chamber of Commerce and after the foundation stone was laid in 1875 by the Prince of Wales King Edward II The Indian Ports Act the first-ever comprehensive Indian port law to be enacted for governing the administration of all ports in India Carriage of Goods by Sea Act was passed, which led adoption of uniform rules declaring minimum rights, liabilities and immunities of a common carrier to be attached to bills of lading Visakhapatnam (Vizag) Port is commissioned as a commodity port for export of manganese ore. The first major port to be set up along the coastline of Andhra Pradesh Dock Workers (Regulation of Employment) Act 1948 was enacted and laid the basis for creation of Dock Labour Boards at various major ports like Mumbai, Kolkata, Chennai and Visakhapatnam Kandla port is commissioned. The port located on the Gujarat coast was established to substitute the Karachi port, which became part of Pakistan following the partition of India Merchant Shipping Act 1958 is passed to regulate the Indian shipping industry and define provide measure of protection to coastal shipping Major Ports Trust Act 1963 passed by the Indian Parliament. The Major Port Trusts Act lays the basis for an institutional framework for creation of a port trusts for each major port. Goa, liberated from Portuguese rule becomes an integral part of India. The Mormugao (Goa) port, on the West Coast is declared a major port Paradip port incorporated as India s Eighth Major Port. Indian Railways launch first-ever.container Service. Providing an integrated inter-modal door-to-door service 1971 Cochin (Kochi) port received containers for the first time from a conventional general cargo vessel of the American President Lines (APL) 1974 New Mangalore port is incorporate as ninth major port on India s West Coast. The State of Karnataka gets its first major port. Tuticorin Port is incorporated as the 10th major port, second major port in Tamil Nadu Dredging Corporation of India is set up by Government of India to undertake dredging operation Calcutta Port Trust commissions Haldia Dock Complex as a satellite port. The port is 104 kilometres downstream of Calcutta Vadinar, a satellite port of Kandla located in Jamnagar district of Gujarat, is commissioned India s first-ever State-level maritime board. Gujarat Maritime Board (GMB) is formed to undertake comprehensive development of minor and other intermediate ports of Gujarat Inland Waterway Authority of India (IWAI) is constituted under the IWAI Act, entrusted with the responsibility of developing inland waterways in India India s youngest and most modern major port. Jawaharlal Nehru Port (Nhava Sheva Port) at Nhava Sheva, near Mumbai is commissioned in May, Coastal Regulation Zone Act passed leading to creation of Coastal Regulatory Zone Authority requiring compliance of all Greenfield port projects. All rights reserved by ISSN :

4 1993 Multimodal Transportation of Goods Act is passed with a view to rationalize customs documentation procedures as applicable to goods being moved through multiple modes of transportation, involving road, rail, coastal movement etc The Government of Tamil Nadu converts the Tamil Nadu Port Department into Tamil Nadu Maritime Board (TMB). The Board is entrusted with the responsibility for development of minor ports in the state. World Bank comes out with India Port Sector - Strategy Report in March 1995 coming out with detailed recommendatory proposals on modalities of infrastructure financing and port reforms roadmap Government announces path-breaking policy guidelines for the first time opening up port sector for both overseas and domestic private sector investors. The Maharashtra Maritime Board (MMB) is constituted in November Port (Laws) Amendment Act was introduced to give teeth to the new policy guidelines on private sector Participation in port sector and a Tariff Authority for Major Ports (TAMP) established to regulate tariffs for major ports 1999 Gujarat Infrastructure Development Act passed by Gujarat government paving way for privatization of port sector in the State. The first-ever BOT project involving private sector port developer P&O Ports (Australia) Nhava-Sheva International Container Terminal (NSICT) becomes operational The Ministry of shipping (holding charge for ports) is formed through bifurcation erstwhile Ministry of Surface Transport. PSA Corporation, Singapore and SICAL jointly establish India s second private sector Container Terminal at Tuticorin Port India s first-ever corporatized Ennore Port, near Chennai becomes operational. Global tender invited for Vallarpadam International Container Terminal, Cochin; Offshore Container Terminal, Mumbai Port, and conversion of dry bulk terminal into a container terminal, Jawaharlal Nehru Port Trust (JNPT). JM Baxi Group & Dubai Port Authority (DPA) consortia signs BOT agreement (VPT) to build Container Terminal in the outer harbour of Visakhapatnam Port. Problems in Major Ports in India Political pressures Hierarchies Rigidities Excess of personnel Lack of autonomy Lack of incentives Lack of commercial orientation Excess of bureaucracy TABLE I: - TRAFFIC HANDLED AT MAJOR PORTS (MILLION TONNES) SR. NO. PORT Actual ( ) Provisional ( ) 1 Kolkata Haldia Paradip Visakhapatnam Chennai V.O. Chidambaranar Cochin All rights reserved by ISSN :

5 8 New Mangalore Mormugao Jawaharlal Nehru Mumbai Kandla Ennore What does the Global Port Sector looks like? There are more than 2,000 ports around the world, from single berth locations handling a few hundred tonnes a year to multi-purpose facilities handling up to 300 million tons a year. More than 80 per cent of trade with origins or destinations in developing countries, in tonnage, is through seas. Total world port traffic in 2001 reached around billion tonnes. After an average of 3% annual growth rate since 1990s, port traffic contracted for the first time in 15 years in World container port traffic has however, continued to expand at a rate of 15.4 per cent over the previous year, reaching million TEUs. The ports of developing countries handled 94.2 million TEUs, or 42 per cent of the total container traffic. World port traffic is made of 45% of liquid bulks (mainly oil, petroleum products, and chemicals), for 23% of dry bulks (coal, iron ore, grain, and phosphate), and for 32% of general cargo, including container cargo. World total freight payment as a proportion of total import value is reckoned at 6.2 per cent in The freight factor was 5.2 per cent for developed market-economy countries and 8.8 per cent for developing countries. For India, the figure is around 12%, showing inefficiencies in the logistics chain. What are the general trends in maritime and logistics sub-sectors? A 1997 world review of the top 100 container ports shows that 88 out of 100 conform to the Landlord Port model, in which the Port Authority retains ultimate property rights over port land and fulfils all regulatory functions, while commercial operations are carried out by private operators. Total world maritime traffic may vary according to dry bulk trade tendencies, but is expected to grow by 4% or 5% annually between 1998 and Private sector involvement in operations and investment in infrastructure has been growing significantly since It is estimated that by end-1998 around 100 port concessions contracts signed worldwide (most in containers terminals, with grain, coal and liquid bulk facilities accounting for the rest), for a total estimated private investment amount of US$ 6.3 billion. However, non-specialized general cargo facilities have difficulties attracting private infrastructure financing. Traffic concentration on large intermodal platforms and shipping alliances translate into fewer ports handling a more important share of world traffic: the first 10 containers ports handled 31% of the world traffic in 1980, and more than 40% today. Simultaneously, the growth of transhipment activities complements the development of hub ports: container transhipment is believed to make 20% of total maritime container traffic and is growing. Port and logistics operations are more and more carried out by a limited number of international operators, specializing in dedicated market segments, and by a few large All rights reserved by ISSN :

6 shipping lines expanding their maritime networks into inland operations to offer integrated transport services. Seaports, from the simple physical sea/land interface they once used to be, have successively turned into commerce and industrial centres, then into logistics and distribution platforms, and are now becoming intermodal nodes in international supply chains networks, the efficiency of which now drives trade competitiveness. Source: World Bank, UNCTAD and UNESCAP TABLE 2 Indian Port Sector: Industrial framework IV Type of Ports Type 1: Local Small Ports Type 2: Large Local Port Type 3: Large Regional Ports Type 4: Transhipment Ports TABLE 3 Types of Ports TYPE ONE TYPE TWO TYPE THREE TYPE FOUR Small local ports Large local ports Large region ports Transhipment ports Porbandar Mormugao Chennai Singapore Machalipatinam New Mangalore Mumbai Hong Kong Dharamtar Tuticorin Visakhapatnam Rotterdam Karwar Paradip Kandla Vallarpadam (Proposed) TABLE 4 Structure and Components of Port Income and Expenditure TABLE 5 Stakeholders in the Port Tariff Determination Process All rights reserved by ISSN :

7 CONCLUSION We show in this review article about port definition, types, data of traffic handled at major cargo, problem in major ports in India. India is not still in the list of top 10 busiest ports of the world and top port technology owner though India is second most populated country of the world and have three sides sea shore It Should be with Given Bullets and in this pattern only So, we conclude that following with port infrastructure s future scope: o Establishing a minimum of four lane road connectivity and double line rail connectivity to those ports handling a reasonable cargo volume. o Adoption of an EDI / MIS system integrating all the stakeholders (ports/ forwarders/ importers / exporters) o India is now international hub for the foreign investors in the international market, so some here is the scope of infrastructure as per the national and international requirements. ACKNOWLEDGMENT With great pleasure & deep sense of gratitude we would like to extent out earnest thanks to almighty GOD for his peace and blessings for granting us the chance and the ability to successfully complete this study. We express gratitude to OUR FAMILY for their everlasting love and financial support throughout our numerous academic years with our morale. We express sincere thanks to Dr. H. R. PATEL, Director, S.N.P.I.T & R.C, Umrakh; Dr. J. A. SHAH, Principal & Campus Director, S.N.P.I.T & R.C, Umrakh and Dr. N. D. SHARMA, Professor & HOD, Civil Engineering Department, S.N.P.I.T & R.C, Umrakh for granting us the opportunity for this research work on this topic and for guiding and motivating us at each and every step. We would like to give special thanks to our guide MR. RUSHABH A. SHAH, Assistant Professor, Civil Engineering Department, S.N.P.I.T & R.C, Umrakh whose timely and persistent guidance has played a key role in making our work a success. REFERENCES [01] India Port Report Ten years of reforms and challenges ahead by i-maritime research & consulting division, New Mumbai, India [02] All rights reserved by ISSN :