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A STUDY ON PERFORMANCE INDICATOR OF CONTAINER TERMINAL
WITH REFERENCE TO CHENNAI PORT TRUST
INTRODUCTION
Around 90% of world trade is carried by the international shipping industry
and without shipping; the import and export of goods on the scale necessary for the
modern world would not be possible.
Seaborne trade continues to expand, bringing benefits for consumers across
the world through competitive freight costs. Thanks to the growing efficiency of
shipping as a mode of transport, the prospects for the industrys further growth
continuing to be strong, increased economic liberalization and increasing
industrialization which have all fuelled free trade and enhanced the demand for
consumable products and the prospects for the industrys further growth continue to
be strong.
There are different types of vessels in the world merchant fleet. Some of them
are Container vessels, bulk carriers, tanker vessels, passenger vessels, Ro-Ro vessels,
etc., There are many types & sizes of containers specifically designed to stuff the
cargo and container vessels modernized to suit the present days needs with higher
carrying capacity.
Turn Round Time (TRT) is the time taken for a vessel from the time of
declaration of its readiness by the Chief Mate (Captain) of the vessel to get berthed
after passing through all the Customs priorities till the time the vessel is set to sail
after completion of its import and export operations.
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INDUSTRY PROFILE
A port is a location on a coast or shore containing one or more harbors where ships can dock
and transfer people or cargo to or from land. Port locations are selected to optimize access to
land and navigable water, for commercial demand, and for shelter from wind and waves.
Ports with deeper water are rarer, but can handle larger, more economical ships. Since ports
throughout history handled every kind of traffic, support and storage facilities vary widely,
may extend for miles, and dominate the local economy. Some ports have an important,
perhaps exclusively military role.
Ports often have cargo-handling equipment, such as cranes (operated by
longshoremen) and forklifts for use in loading ships, which may be provided by
private interests or public bodies. Often, canneries or other processing facilities will
be located nearby. Some ports feature canals, which allow ships further movement
inland. Access to intermodal transportation, such as trains and trucks, are critical to a
port, so that passengers and cargo can also move further inland beyond the port area.
Ports with international traffic have customs facilities. Harbour pilots and tugboats
may maneuver large ships in tight quarters when near docks.
The terms "port" and "seaport" are used for different types of port facilities that handle ocean-
going vessels, and river port is used for river traffic, such as barges and other shallow-draft
vessels. Some ports on a lake, river, or canal have access to a sea or ocean, and are sometimes
called "inland ports".
A seaport is further categorized as a "cruise port" or a "cargo port". Additionally,
"cruise ports" are also known as a "home port" or a "port of call". The "cargo port" is
also further categorized into a "bulk" or "break bulk port" or as a "container port".
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5.1.1 PORT PERFORMANCE INDICATORS
The operational performance of a port is generally measured in terms of the speed
with which a vessel is despatched, the rate at which cargo is handled and the duration
that cargo stays in port prior to shipment or post discharge. However, a progressive
port manager would also wish to know how extensively and intensively its assets are
being utilized as well as how well the operations perform financially. Indicators to
measure these performances are determined generally in relation to the tonnage of
shipping calling at the port and of the volume of cargo handled since port services in
the main are rendered to ships and cargo. This note discusses the main indicators used
by ports, and for ease of reference tabulation is presented at the end of this note,
which briefly describes how the indicators are determined.
5.1.2 OPERATIONAL PERFORMANCE INDICATORS
Primary measures of vessel performance are the ship turn-round time and the tonnage
handled per ship day in port. The ship turn-round time is the duration of the vessel's
stay in port and is calculated from the time of arrival to the time of departure.
Traditionally expressed in days, it is now common to express turn-round time in
hours. The port authority would normally compile statistics that would provide
monthly and annually average turn-round times. The average turn-round time per ship
is determined by dividing the total hours by the total number of ships calling at the
port.
In its basic form, ship turn-round time does not mean much, as the length of stay of a
vessel is influenced by (a) the volume of cargo, (b) the facilities made available and
(c) the composition of the cargo itself. Thus it becomes necessary for the port to break
the basic ship turn-round time down for tankers, bulk carriers, container vessels and
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general cargo vessels, and even subdividing these into domestic trade, regional trade
and ocean going vessels. Since the duration of a vessel's stay in port is influenced by
the volume of cargo that it works, a more useful measure of vessel performance is the
tonnage handled per day or hour that the vessel is in port. The average tonnage
handled per ship day or ship hour would be obtained by dividing the total tonnage of
cargo that is loaded and discharged by the total number of hours that all vessels spend
in port. In compiling data that would enable the port to determine ship turn-round
time or the tonnage handled per ship day (or ship hour), a port would normally split
total time in port into time at berth and time off the berth and within each, the
opportunity would be taken to record for each service activity the amount of delay
(idle time) as well as the reasons for the delay (e.g., waiting for cargo,
opening/closing hatches, waiting for gears, rain, waiting for berth, etc). In particular,
the ratio between the waiting time for berth and the time spent at berth, known as the
waiting rate, is a significant indicator of possible congestion status.
While the tonnage handled per ship day (or hour) is a measure of the volume of cargo
handled per unit of time of the vessel in port, productivity in ports is generally
measured in terms of the tonnage of cargo handled per unit of work station per hour.
In the case of general cargo, the work station is the gang, with containers; it is the
crane (or hook). Thus productivity is measured in terms of (a) tons per gang hour for
general cargo and (b) TEUs/per crane (or hook) hour. With tons per gang hour, the
size of the gang is a material factor, as generally and up to a point, the larger the gang
size the greater its output. Hence a more useful indicator of productivity for general
cargo is the tonnage handled per man hour. In establishing the size of the gang, it
should be noted that some ports have separate stevedoring and wharf gangs while
some have an integrated gang that works on board vessels (stevedoring) as well as at
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the apron (wharfingering). It should also be pointed out that very often the size and
nature of the consignment has an influence on gang performance. Generally, the
larger and more homogeneous the consignment the greater is the productivity.
The assessment of a port's performance from the point of view of the
exporter/importer is quite basic in that there is only one indicator of interest, the dwell
time of cargo in port measured in terms of the number of days that a ton of cargo
remains in port. A high dwell time is generally an indication that all is not well with
the port. It does not, however, identify areas where improvements may be sought
since, unlike ship time in port, it does not have a breakdown according to the various
procedures that have to be gone through before cargo can be shipped or delivered
(e.g., customs clearance, waiting for instructions, waiting for ship, waiting for
transport, etc.). The importance of dwell time also obviously varies with the nature of
cargo.
COMPANY PROFILE
6. COMPANY PROFILE - CHENNAI PORT:
6.1 HISTORY OF CHENNAI PORT:
Chennai Port, the third oldest port among the 12 major ports, is an emerging hub port
in the East Coast of India. This gateway port for all cargo has completed 128 years of
glorious service to the nations maritime trade.
Maritime trade started way back in 1639 on the sea shore Chennai. It was an open
road -stead and exposed sandy coast till 1815. The initial piers were built in 1861, but
the storms of 1868 and 1872 made them inoperative. So an artificial harbour was built
and the operations were started in 1881.The cargo operations were carried out on the
northern pier, located on the northeastern side of Fort St. George in Chennai. In the
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first couple of years the port registered traffic of 3 lakh tonnes of cargo handling 600
ships.
Being an artificial harbour, the port was vulnerable to the cyclones, accretion of sand
inside the basin due to underwater currents, which reduced the draft. Sir Francis
Spring a visionary skillfully drew a long-term plan to charter the course of the port in
a scientific manner, overcoming both man-made and natural challenges. The shifting
of the entrance of the port from eastern side to the North Eastern side protected the
port to a large extent from the natural vulnerabilities. By the end of 1920 the port was
equipped with a dock consisting of four berths in the West Quays, one each in the
East & South Quay along with the transit sheds, warehouses and a marshalling yard to
facilitate the transfer of cargo from land to sea and vice versa. Additional berths were
added with a berth at South Quay and another between WQ2 & WQ3 in the forties.
Indias Independence saw the port gathering development, momentum. The
topography of the Port changed in 1964 when the Jawahar dock with capacity to berth
6 vessels to handle Dry Bulk cargoes such as Coal, Iron ore, Fertilizer and non
hazardous liquid cargoes was carved out on the southern side.
In tune with the international maritime developments, the port developed the Outer
Harbour, named Bharathi Dock for handling Petroleum in 1972 and for mechanized
handling of Iron Ore in 1974. The Iron ore terminal is equipped with Mechanized ore
handling plant, one of the three such facilities in the country, with a capacity of
handling 8 million tonnes. The Chennai ports share of Iron ore export from India is
12%. The dedicated facility for oil led to the development of oil refinery in the
hinterland. This oil terminal is capable of handling Suezmax vessels.
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In 1983, the port heralded the countrys first dedicated container terminal facility
commissioned by the then prime minister Smt.Indira Gandhi on 18th December 1983.
The Port privatized this terminal and is operated by Chennai Container Terminal
Private Limited. Having the capability of handling fourth generation vessels, the
terminal is ranked in the top 100 container ports in the world. Witnessing a
phenomenal growth in container handling year after year the port is added with the
Second Container Terminal with a capacity to handle 1.5 M TEUs to meet the
demand. To cater to the latest generation of vessels and to exploit the steep increase in
containerized cargo the port is planning to welcome the future with a Mega Container
Terminal, capable of handling 5 Million TEUs expected to be operational from 2013.
The Chennai port is one among the major ports having Terminal Shunting Yard and
running their own Railway operations inside the harbour on the East Coast. The port
is having railway lines running up to 68 kms and handles 25% of the total volume of
the cargo, 4360 rakes (239412 wagons) during 2009-10.
The port with three Docks, 24 berths and draft ranging from 12m to 16.5m has
become a hub port for Containers, Cars and Project Cargo in the East Coast. The port
has handled an all time high of 61.06 Million tonnes of cargo registering an increase
of 6.2% over previous year. An increase of 10.14% in handling of cars from 273917
Units in the year 2009-10 when compared with 248697 Units in the year 2008-09 and
an increase of 6.39% in handling of containers from 1143373 TEUs in the year 2008-
09 to 1216438 TEUs in the year 2009-10. The long term plan for Chennai Port
envisages that the Port will mainly handle 4Cs i.e Containers, Cars, Cruise and Clean
Cargo.
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CHENNAI PORTS MISSION:
Achieve excellence in Port operations with State of Art technologies,
Enhance competence and enthuse workforce to maximize customer
satisfaction,
Anticipate and adapt to the changing global scenario,
Act as a catalyst for sustained development of the region.
CHENNAI PORTS VISION:
To the recognized as a futuristic port with foresight.
CHENNAI PORTS QUALITY POLICY:
Provide efficient, prompt, safe and timely services at optimum cost,
Ensure quick turn round of vessels by providing facilities for efficient
handling of cargo,
Maintain total transparency in all our transactions,
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Continually improve our services to meet the expectations of the port users,
employees and the society.
CHENNAI PORTS OBJECTIVE:
To be the most preferred Indian Port ensuring safety of the environment.
6.2 ORGANIZATIONAL STRUCTURE OF CHENNAI PORT:
DEPARTMENTS OF THE CHENNAI PORT:
General Administration Department
Finance Department
Traffic Department
DEPUTY CHAIRMAN
SECRETARYFINANCE ADVISOR &
CHIEF ACCOUNTS
OFICER
TRAFFIC
MANAGER
CHAIRMAN
DEPUTY
CONSERVATOR
CHIEF
ENGINEER
CHIEF
MECHANICAL
ENGINEER
CHIEF
MEDICAL
OFFICER
CHIEF
VIGILANCE
OFFICER
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Marine Department
Civil Engineering Department
Electrical and Mechanical Engineering Department &
Medical Department
Vigilance Department
SCOPE OF THE STUDY
The container terminal in Chennai Port is Indias first dedicated container
terminal and is now being operated by a Major Private Terminal Operator called M/s.
Dubai Port World under License Agreement on BOT basis (Build, Operate and
Transfer) for a period of 30 years. Besides this, the 2nd container Terminal called M/s.
Chennai International Terminal Private Limited is also being operated by anotherTerminal operator called the Port of Singapore Authority (PSA) in joint venture with
M/s. SICAL under license agreement on BOOT basis (Build, Operate, Own and
Transfer) for a period of 30 years. Despite the existence of two terminals, the Port has
in its future plan to go on for the nations bigger container terminal with a berth length
of more than 1 km and draft length of 21 metres called the Mega Container Terminal,
also under license agreement to be operated by a private terminal operator
Also, we see another container terminal being operated by a giant private
Investor M/s. Larsen Toubro (L & T) at Kattuppalli in the northern coast of Chennai.
Clearly, with the existence of these container terminals, there is sheer competition
neck to neck on who is going to rank on top in terms of service to the trade fraternity
and in throughput handling.
When it comes to ranking, there are certain parameters set out by the eminent
authorities governing the Terminal operations globally. One such parameter is the
Turn Round Time (TRT), which is the time taken for a vessel from the time of
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declaration of its readiness by the Chief Mate (Captain) of the vessel to get berthed
after passing through all the Customs priorities till the time the vessel is set to sail
after completion of its import and export operations.
Simply to say, the efficiency of a terminal can very well be evident from its
TRT. Precisely, the lesser the TRT, the more the efficiency.
The existence of three container terminals in the coast of Chennai, the
proposal to bring out a Mega Container Terminal and the neck to neck competition
between them to emerge on top rank presents a ample scope for the Researcher to
pursue with the study.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
The primary objective of the Project is to study on minimizing the Turn Round
Time (TRT) of the container vessels calling the container terminal in Chennai Port.
SECONDARY OBJECTIVES:
The secondary objectives of the Project is to study on the
1. effect of Pre Berthing Detention caused to the container vessels on the Agent
and Port side,
2. effect of optimizing the yard operations management,
3. effect of the introduction of Berth Reservation Scheme to the container vessel
operators,
4. the effectiveness of the availability of tug vessels to berth and un berth the
container vessels,
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5. the effectiveness of the availability of Container Handling equipments on the
wharf and yard side.
With the investors and global terminal operators showing interest in
developing new container terminals under licensed agreement mode and Chennai
Ports initiative in the future plan of constructing elevated corridors (EMRIP) to
provide better hinterland connectivity to the Port using both the rail and road transport
modes which would help greatly in the evacuation of the import containers from the
container parking yard and aggregation of export containers to the container parking
yard, the scenario presents an ample scope for accelerated growth in the container
trade in the future.
REVIEW OF LITERATURE
A performance indicator or key performance indicator (KPI) is industry jargon for a
type ofperformance measurement.. An organization may use KPIs to evaluate its
success, or to evaluate the success of a particular activity in which it is engaged.
Sometimes success is defined in terms of making progress toward strategic goals,but
often success is simply the repeated, periodic achievement of some level of
operational goal e.g. zero defects, 10/10 customer satisfaction, etc.
A container terminal is a facility where cargo containers are transshipped between
different transport vehicles, for onward transportation. The transshipment may be
between container ships and land vehicles, for example trains or trucks, in which case
the terminal is described as a maritime container terminal. Alternatively the
transshipment may be between land vehicles, typically between train and truck, in
which case the terminal is described as an inland container terminal.
1.Effect of container terminal concession on port performance
Dr. M. Nijdam, supervisor, Erasmus University, 2012
Dr. P.A. van
Reeven, LLM
Ports are being privatized in the belief that enterprise-based ports can react faster to
global change sand are therefore more efficient than public ports. In the past years
many concessions have been granted in order to privatize port facilities. However, if
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the public authorities and governments want to obtain more benefits from these
concessions, more insights into concession characteristics are needed to develop more
innovative contractual arrangements.This thesis provides insights into the container
terminal concessions by first investigating whether the concessions lead to a better
port performance and then focussing on two important characteristics of container
terminal concessions, namely the duration of the concessions and the private entities
participating in the concession. The port performance is measured in port throughput
and in order to get an unambiguous measurement the thesis focuses on one specific
terminal. container terminals because containerized trade flows have increased rapidly
in the last three decades, implying that it is in an interesting market to observe. By
utilizing a dynamic panel model, we try to capture the short- and long-term effects of
container terminal concessions on the port performance. The dynamic panel model we
used is the Brdsen Error Correction Model. We estimate the Brdsen ECM with the
Newey and West standard errors in order to correct for serial correlation and with the
Driscoll and Kraay standard errors in order to correct for serial correlation and cross-
sectional correlation. Only the use of Driscoll and Kraay estimators has shown a
positive influence of concessions on port throughput
2.PPRISM Port PeRformance Indicators: Selection and MeasurementCoordinator: European Sea Ports Organization (ESPO)
With the PPRISM project, ESPO has taken a first step in establishing a culture of
performance measurement in European ports. The two year PPRISM project (Port
PeRformance Indicators: Selection and Measurement, co-funded by the European
Commission) aims to identify a set of relevant and feasible performance indicators for
the EU port system. These indicators allow the port industry to measure, assess and
communicate the impact of the European port system on society, environment and
economy. PPRISM delivers a shortlist of indicators that form the basis of a future
European Port
Observatory which will take the form of a Port Sector Performance Dashboard. The
proposed Dashboard contains well defined indicators, that are accepted by
stakeholders and measure performance trends in the European port sector. The
Dashboard will not publish or compare the performance of individual ports or
terminals, but focus on the performance of the port system as a whole.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY:
Research is defined as a scientific and systematic search for pertinent information on
a specific topic. Research is an art of scientific investigation. It is a careful
investigation or inquiry especially through search of new facts in any branch of
knowledge. It is the systematized effort to gain new knowledge. It is an academic
activity and as such, the term should be used in technical sense. Research is, thus, an
original contribution to the existing stock of knowledge making for its advancement.
It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search of knowledge through objective and systematic
method of finding a solution to a problem is research. As a researcher, defining,
evaluating and organizing data; making deductions and conclusions; and finally
carefully testing the conclusions to determine whether they fit the formulating
hypotheses is priority.
RESEARCH APPROACH:
This chapter deals with the Research design, sampling method used, Data collection
method used, pre testing adopted, tools and techniques and limitations of the study.
RESEARCH DESIGN:
The Research Design undertaken by the researcher is descriptive Research. The
methodology involved in this design is mostly qualitative in nature.
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The major purpose of this descriptive research is the description of the state of affairs
as it exists at present. The researcher has no control over the variables and can only
report what that has happened or what is happening.
The methods of Research utilized in descriptive research are survey methods of all
kinds including methods competitive correlation.
POPULATION:
A population refers to any collection of specified group of human beings or of non
human entities such as objects, educational institutions, time units and geographical
areas, prices of wheat or salaries drawn by individuals. Some statisticians call it
universe. A population is properly defined so that there is no ambiguity as to whether
given unit belong to the population. Interferences concerning a population cannot be
drawn until the nature of the units that compose it is clearly identified. If a population
is not properly defined, a Researcher does not know units to consider when selecting
the sample. It is the aggregate to all units processing certain specified characteristics
on which the sample seeks to draw inferences. Population element is the individual
participant or object on which the measurement is taken. It is a total collection of
elements to make some inferences.
SAMPLING:
Sampling is the process of selecting units from a population of interest so that by
studying the sample we may fairly generalize our results back to the population from
which they were chosen. The importance of the theory of sampling lies in the fact
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that for a large population , it is neither practical nor possible to collect the date for
each and every number of the population.
SAMPLING TECHNIQUE:
On the representation basis, it is Non probability sampling, which means non-
random sampling element. As the size of the population is large, we follow
convenient sampling technique.
SAMPLE:
A Sample, as the name implies, is a smaller representation of a large whole. A
section of the population selected from the later in such a way that they are
representative of the universe called a sample. The group of elements is referred as a
sample and the process of selecting a part of a group with a view to obtaining
information about the whole is called sampling. Relatively small number of
individuals or measures of individuals, objects or events is selected and analyzed in
order to find out something about the entire population from which it was selected.
Sampling procedure provide generalization on the basis of a relatively small
proportion of the population.
JUSTIFICATION OF SAMPLE SIZE:
Out of a population of 7800 employees in Chennai Port, it is proposed to have a
sample size of 100 covering all the departments. In view of the time constraints, the
sample size is considered as 100.
TYPES OF DATA:
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Data is the basic input to any decision making process in a business. The processing
of data gives statistics of importance of the study. The reliability of managerial
decisions depends upon the quality of data. The quality of data can be expressed in
terms of its representative feature of the reality which can be ensured by the usage of
a fitting data collection method. There are two types of data, namely,
Primary data
Secondary data.
7.1 PRIMARY DATA:
Primary data are those which are collected a fresh and for the first time and hence,
happen to be original in character. Such data are published by authorities who
themselves are responsible for their collection. The collection of primary data thus
requires a great deal of deliberation and expertise. Depending upon the nature of
information required, the following methods of collecting primary data are available.
They are,
Observation Method,
Questionnaire Method,
Mailed Questionnaire Method,
Telephone Interview.
The Researcher wishes to do the Questionnaire method of collecting primary data.
QUESTIONNAIRE METHOD:
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The questionnaire (also called survey) is a set of questions given to a sample of
employees. Questionnaires are a popular means of collecting data, but are difficult to
design and often require many rewrites before an acceptable questionnaire is
produced. The purpose is to gather information about the employees idea about the
Ro-Ro vessel operations, implementation of an effective IT solution and about how
well the Port can cater the needs of the growing automobile export market.
The advantages and disadvantages of Questionnaire method with reference to the
Project study is slated below:
ADVANTAGES OF QUESTIONNAIRE METHOD
Can be used as a method in its own right or as a basis for interviewing or a
telephone survey.
Can be posted, e-mailed or faxed.
Can cover a large number of people or organizations.
Wide geographic coverage,
No prior arrangements are needed,
Quick & easy to administer,
Can get a large amount of information in a short time,
Allows for employee participation,
Does not require trained interviewer,
Relatively less expensive,
Avoids embarrassment on the part of the respondent,
Respondent can consider responses,
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Possible anonymity of respondent.
No interviewer bias.
DISADVANTAGES OF QUESTIONNAIRE METHOD
Design problems,
May be difficult to construct,
Problems with incomplete questionnaires,
Questions have to be relatively simple,
Quality of information related to the quality of the questionnaire,
May have low response rate.
Responses may be incomplete.
Responses may be difficult to interpret (open-ended).
Historically low response rate (although inducements may help).
Time delay whilst waiting for responses to be returned.
Require a return deadline.
Several reminders may be required.
Assumes no literacy problems.
No control over who completes it.
Replies not spontaneous and independent of each other. Respondent can read
all questions beforehand and then decide whether to complete or not. For
example, perhaps because it is too long, too complex, uninteresting, or too
personal.
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PRIMARY DATA COLLECTION:
The Researcher has preferred the type of Likert Scale questions and an Open ended
question so that the Respondent would be at their liberty to represent their view and
the data collection by Questionnaire method is conducted in a fair manner.
7.2 SECONDARY DATA:
Secondary data means the data that are already available i.e., they refer to the data
which have already been collected and analyzed by someone else. In this case, the
Researcher is certainly confronted with the problems that are associated with the
collection of the original data. The Secondary data may be published data or
unpublished data.
SECONDARY DATA COLLECTION:
The Secondary data is collected from the various sources such as the records
maintained in the Port, Ports websites and its Annual Reports.
7.3 STATISTICAL TOOLS USED:
7.3.1 APPLICATION OF REGRESSION TECHNIQUES USING THE
METHOD OF LEAST SQUARES:
Regression is the study of the relationship between the variables. If Y is the
dependent variable and X is the independent variable, the linear relationship
suggested between the variables is called the regression equation, of Y on X. Here,
the parameters are determined using the principle of least squares. This regression
equation is used to estimate the value of Y corresponding to a known value of X. On
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the other hand, I X is the dependent variable and Y is the independent variable, then,
the linear relationship suggested between the variables is called the regression
equation, of X on Y.
METHOD OF LEAST SQUARES:
Suppose the variables x & y are functionally related, i.e., the graph of the relation is a
specified curve. Let us further suppose that the relation is suggested for predicting the
values of y for known values of x. Then y is a random variable and x is a
mathematical variable. The variable x is then assumed to have no error associated
with it. For any arbitrarily chosen value of x, the value of the random variable is
determined from the suggested relation. This estimated value of y will have an error
associated with it which is of random nature. The curve of best fit is that which makes
the errors of estimation known as residuals, as small as possible. Let y = f(x) be the
relation suggested between the variables x & y. Let (xi, yi), i = 1, 2, 3 n be n
sample values. Then y - yi is a residual.
The principle of least squares provides the technique for minimizing the error. The
error of estimate y - y i may be positive or negative. Therefore, for the best fitting
curve, the sum of the absolute values of errors should be as small as possible. But the
sum of the absolute values of errors should be as small as possible. But the sum of the
absolute values is not convenient to work with mathematically and this difficulty is
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removed by making the sum of the squares of the errors as small as possible. The
parameters involved in f(x) can be determined by this minimization principle.
7.3.2 APPLICATION OF ANOVA (2-way classification using Randomized Block
Design)
In a one way classification of the Analysis of Variance, the treatments constitute
different levels of a single factor which is controlled in the experiment. There are,
however, many situations in which the response variable of interest may be affected
by more than one factor. For example, sales of cosmetics, in addition to being
affected by the point of sale display, might also be affected by the price charged, the
size and / or location of the store or the number of competitive products sold by the
store. Petrol mileage may be affected by the type of car driven, the way it is driven,
road conditions and other factors in addition to the brand of petrol used. In the same
way, the efficiency in yard operations management can be determined by more than
two factors such as the Turn Round Time, Dwell time of cargo, Pre berthing
detention, etc., As the views of employees with different years of experience is
gathered in the questionnaire method of survey the same is considered as various
factors and hence the two way classification of the Analysis of Variance is used.
When it is believed that two independent factors might have an effect on the response
variable of interest it is possible to design the test so that an Analysis of Variance can
be used to test for the effects of the variance. With the two way classification of the
Analysis of Variance we can test two sets of hypothesis with the same data at the
same time.
Randomized Block Design: In a completely randomized design, no local control
measure was adopted excepting that units should be homogeneous. Hence in the case
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of a large number of experimental units completely randomized design cannot ensure
precision of the estimate of treatment effect. A measure to provide error control is
necessary with design and this provided in the design called Randomized Block
Design.
Let there be k treatments. Each of the treatments is replicated the same number of
times in this design. Let there be r replications in each treatment. The total number
of experimental units is kr. These units are arranged in r groups each of size k.
The groups are chosen in such a way that they are homogeneous. The error control
measure in this design consists of making the units in each of these groups
homogeneous. These groups are commonly called blocks.
This type of homogeneous grouping of the experimental units and the random
allocation of the treatments separately in each block are the two main characteristic
features of randomized block design.
For the randomization the treatments are allotted 1 to k in any order and the units in
each block are also numbered from 1 to k. Then the k treatments are allotted at
random to the k units in each block.
The data collected from experiments with randomized block designs form a two way
classification, that is classified according to the levels of two factors namely blocks
and treatments. The two classification of analysis of variance model can be applied to
draw inference on the analysis of variance.
MERITS:
1. It has a simple layout.
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2. The design controls the variability in the experimental units and gives the
treatments equivalence to show their effects.
3. The analysis of the design is simple and straight forward as in the case of two
way classification of analysis of variance.
4. The analysis is possible even in the case of missing observations.
DEMERITS:
1. The design is not suitable for large number of treatments since in this case the
block size is large and hence homogeneity of units may not be possible.
2. Unequal number of replications for equal treatment is not possible.
3. The shape of the experimental material should be rectangular.
4. It controls the variability in one direction only.
5. The analysis of this decision is not as simple as a completely randomized
design.
Format of ANOVA table:
Source of
variation
Sums
ofsquares DF Mean Squares Computed F value
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Between
RowsSSR R - 1 MSSR=SSR/(R-1) FR=MSSR/MSSE
Between
ColumnsSSC C - 1 MSSC=SSC/(C-1) FC=MSSC/MSSE
Residual SSE (R-1)(C-1) MSSE=SSE/(R-1)(C-1)
Total SST N-1
LIMITATION OF THE STUDY
It is believed that there are 21 parameters set out by the governing authorities
to assess a terminals performance of which TRT is the key performance indicator.
Hence, the Researcher has chosen the same. The time that would be required to assess
a terminals performance using all the parameters will definitely be more whereas the
Researcher has to conclude the study providing constructive and useful solutions in
the development of the Terminal operations and benefit the trade users greatly. Thus,
the Researcher has to come up with constructive suggestions and fruitful solutions
within in the limited time provided for the study. Hence the limitation to the study.
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TABLE:
CHART:
Age Wise Classification
Sr.No Particulars Frequency Percentage
31 - 40 Yrs 10 11.90
41 - 50 Yrs 60 71.43
50 & Above 14 16.67
Total 84 100
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INTREPRETATION:
From the age wise classification, we can interpret that 71% among the 84
respondent belongs to 41-50 years.
TAB LE:
Qualification Wise Classification
Sr.No. Particulars
Frequency Percentage
1 SSLC 2 2.4
2 Diploma 9 10.7
3 UG 27 32.1
4 PG 40 47.6
5 Others 6 7.1
Total 84 100
CHART:
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INTREPRETATION:
From the qualification wise classification, we can interpret that 47%
among the 84 respondent belongs to post graduates.
TABLE:
Cargo Handling Awareness
Sr. No. ParticularsFrequency Percent
1 Yes 82 97.6
2 No 2 2.4Total 84 100.0
CHART:
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INTREPRETATION:
It can be interpreted that 97% of the respondent known
about the container cargo handling in Chennai port.
TABLE:
Awareness About Nations First dedicatedContainer Terminal
Sr.No Particulars Frequency Percentage
1 Yes 70 83.3
2 No 14 16.7
Total 84 100.0
CHART:
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INTREPRETATION:
From the table, it is interpreted that 83% of the respondent
aware about nations first dedicated container terminal is
Chennai port.
TABLE:
Importance of Containerised cargo in World's Sea Trade
Sr.No Particulars Frequency Percentage
1 Yes 79 94.0
2 No 5 6.0
Total 84 100.0
CHART:
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INTREPRETATION:
It can be inferred that 94% of the respondent know the
importance of containerized cargo in worlds sea trade.
TABLE:
Opinion on Pre Brething Detention
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 5 5.95
2 Agree 47 55.95
3 Neutral 21 25.00
4 Disagree 9 10.71
5 Strongly Disagree2 2.38
Total 84 100
CHART:
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INTREPRETATION:
It can be interpreted that 56% of the respondent agreed that
pre berthing detention is higher on agent side due to non
availability of required documents.
TABLE:
Opinion on Increment in TAT due to Pre berthingDetention
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 9 10.71
2 Agree 43 51.19
3 Neutral 22 26.19
4 Disagree 5 5.95
5 Strongly Disagree 5 5.95
Total 84 100
CHART:
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INTREPRETATION:
It can be inferred that 60% of the respondent agree that pre
berthing detention increases the Turn Around Time of
container vessels.
TABLE:
CHART:
Opinion on Highness in Pre Berthing Detention on Ports side
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 7 8.33
2 Agree 18 21.43
3 Neutral 30 35.71
4 Disagree 22 26.19
5 Strongly Disagree 7 8.33
Total 84 100
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INTREPRETATION:
The above table represents that 34% of the respondents
chosen neutral and it means pre berthing detention on port
side is higher due to non availability of tug boats.
TABLE:
Opinion on Effective yard Planing Reducing Unproductive Moves
Sr.No. Particulars Frequency Percentage1 Strongly Agree 15 17.86
2 Agree 33 39.29
3 Neutral 34 40.48
4 Strongly Disagree 2 2.38
Total 84 100.00
CHART:
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INTREPRETATION:
Among the 34 out of 84 respondents said neutrally that the
effective yard planning reduces the unproductive moves.
TABLE:
Opinion on Reducing Unproductive Items Improves efficiency
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 7 8.33
2 Agree 51 60.71
3 Neutral 21 25.00
4 Disagree 5 5.95
Total 84 100.00
CHART:
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INTREPRETATION:
It can be interpreted that 60% of the respondents agreed that
reducing unproductive items improves efficiency of port.
TABLE:
Minimizing TAT Using Optimal Yard Operation ManagementSr.No. Particulars Frequency Percentage
1 Strongly Agree 12 14.29
2 Agree 52 61.90
3 Neutral 14 16.67
4 Disagree 5 5.95
5 strongly Disagree 1 1.19
Total 84 100
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CHART:
INTREPRETATION:
From the table, it is inferred that 62% of the respondents
agreed that minimization of TAT can be effected by optimal
yard operation management.
TABLE:
Usage Of OUS through Proper Allocation Of Slots
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 4 4.76
2 Agree 51 60.71
3 Neutral 27 32.14
4 Disagree 2 2.38
Total 84 100.00
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CHART:
INTREPRETATION:
It can be interpret that 61% of the respondents agreed that
proper allocation of slots import and export containers incontainer parking yard helps in its optimum utilization of
space.
TABLE:
optimization of yard operation helping in reduce dwelltime
Sr.No. Particulars Frequency Percent
1 Strongly Agree 12 14.30
2 Agree 45 53.60
3 Neutral 18 21.40
4 Disagree 7 8.30
5 Strongly Agree 2 2.40
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Total 84 100.00
CHART:
INTREPRETATION:
The above table reveals that 53% of the respondents agreed
that the optimization of yard operation helps in reducing
dwell time.
TABLE:
Opinion On introducing BRS
Sr.No. Particulars Frequency Percentage1 Strongly Agree 8 9.52
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2 Agree 33 39.29
3 Neutral 36 42.86
4 Disagree 3 3.57
5 Strongly Disagree 4 4.76
Total 84 100
CHART:
INTREPRETATION:
Among the 36 out of 84 respondents said neutrally that the
introduction of BRS will greatly help in berthing of vessels on
arrival.
TABLE:
Does The Usage Of BRS Reduce The Pre Berthing Detention?
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 3 3.572 Agree 40 47.62
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3 Neutral 35 41.67
4 Disagree 4 4.76
5 Strongly Disagree 2 2.38
Total 84 100
CHART:
INTREPRETATION:
The above table represents that 48% of the respondent
agreed that BRS significantly reduces the pre berthing
detention of the vessel on the port.
TABLE:
BRS contribution in reducing TAT
Sr.No. Particulars Frequency Percent
1 Strongly Agree 8 9.50
2 Agree 30 35.70
3 Neutral 35 41.70
4 Disagree 9 10.70
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5 Strongly Disagree 2 2.40
Total 84 100
CHART:
INTREPRETATION:
Among the 34 out of 84 respondents said neutrally that the
BRS contributing to the reduction of TAT.
TABLE:
Does BRS Facilities Scheduling Of Vessels ?
Sr.No. Particulars
Frequenc
y
Percentage
1 Strongly Agree 7 8.33
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2 Agree 38 45.24
3 Neutral 31 36.90
4 Disagree 6 7.14
5 Strongly Disagree 2 2.38
Total 84 100
CHART:
INTREPRETATION:
Among the 38 out of 84 respondents agreed that the BRS
facilitates scheduling of vessels as regards their berthing.
TABLE:
Opinion On promotion Of Trade Using BRS
Sr.No. Particulars
Frequency Percentage
1 Strongly Agree 9 10.71
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2 Agree 33 39.29
3 Neutral 26 30.95
4 Disagree 9 10.71
5 Strongly Disagree 7 8.33
Total 84 100
CHART:
INTREPRETATION:
It can be interpret that 39% of the respondent agree that BRS
increases trade and business volumes from the markets inthe hinterland.
TABLE:
Increment Of throughput Using BRS
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 3 3.572 Agree 33 39.29
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3 Neutral 31 36.90
4 Disagree 12 14.29
5 Strongly Disagree 5 5.95
Total 84 100
CHART:
INTREPRETATION:
It can be interpret that 39% of the respondent agree that BRS
helps significantly increasing the terminals throughput.
TABLE:
BRS Usage In Catering Neighbor ports
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 3 3.57
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2 Agree 48 57.14
3 Neutral 24 28.57
4 Disagree 4 4.76
5 Strongly Disagree 5 5.95
Total 84 100
CHART:
INTREPRETATION:
Among the 48 out of 84 respondents agreed that the BRS
helps in the catering of its neighbour port.
TABLE:
Ensuring Of Tug Boats Availability By PeriodicalMaintenance
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Sr.No. Particulars Frequency Percentage
1 Strongly Agree 7 8.33
2 Agree 46 54.76
3 Neutral 15 17.86
4 Disagree 10 11.90
5 Strongly Disagree 6 7.14
Total 84 100
CHART:
INTREPRETATION:
Among the 46 out of 84 respondents said agree that the
periodical maintenance of tug boats ensures its availability
on requirement and this contributes in the pre berthingdetention on the whole.
TABLE:
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Allocation Of Tug Vessels Eases The Scheduling
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 8 9.52
2 Agree 43 51.19
3 Neutral 27 32.14
4 Disagree 2 2.38
5 Strongly Disagree 4 4.76
Total 84 100
CHART:
INTREPRETATION:
It can be interpret that 51% of the respondents agreed,
allocation of tug vessels eases the scheduling of vesselsberthing on first come first serve basis.
TABLE:
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Ensuring Timely Berthing Of Vessels By EmployingMore tug Boats
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 8 9.52
2 Agree 34 40.48
3 Neutral 30 35.71
4 Disagree 8 9.52
5 Strongly Disagree 4 4.76
Total 84 100
CHART:
INTREPRETATION:
It can be interpret that 40% of the respondents agreed that
employing more tug boats would enable the timely berthing
of vessels without any delay.
TABLE:
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Opinion On Maintenance Of Container Handling CranesWill Reduce TAT
Sr.No. Particulars Frequency Percentage
1 Strongly Agree 15 17.86
2 Agree 55 65.483 Neutral 9 10.71
4 Disagree 2 2.38
5 Strongly Disagree 3 3.57
Total 84 100
CHART:
INTREPRETATION:
Among the 55 out of 84 respondents agreed that the
periodical maintenance of container handling cranes will
reduce TAT.
TABLE:
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Opinion On Maintenance Of Yard Cranes Ensuring itsAvailablity
Sr.No. Particulars Frequency Percentage
1 Strongly agree 10 11.90
2 Agree 45 53.57
3 Neutral 24 28.57
4 Disagree 5 5.95
5 Total 84 100.00
CHART:
INTREPRETATION:
The above table reveals that 54% of the respondents agreed
that periodical maintenance of yard cranes and vessel cranes
ensures its availability on demand will improve the efficiency
of yard vessel operation.