TULIP 2013: Conference on Technological Upgradation of Logistics & Improvement of Ports by CII and NMF at Chennai

by OldSailor on April 22, 2013


A conference on “Technological Upgradation of Logistics & Improvement of Ports (TULIP)” was hosted by Confederation of Indian Industry (CII) and National Maritime Foundation (NMF) at Hotel Hilton, Chennai onTULIP_Conference_Logistics_Ports_CII_NMF_Chennai_1 20 April 2013. The Conference commenced at 1000 hours and finished by 1730 hours.

Here are the highlights of the conference:

  • Inaugural Session.
  • Plenary Session I: Technological Upgradation of Ports.
  • Plenary Session II: Logistics & Infrastructure Improvements.
  • Colloquium (Group Discussion) and Presentation by the Group Leaders.

Inaugural Session


  • Welcome Address – by Gp Capt (Retd) LV Mohan Das, Consultant, CII (Southern Region).
  • Opening Address – by Mr PK Mohapatra, Past Chairman, CII (Southern Region) & Chairman, Corporate Social Responsibility Sub Committee, CII (Southern Region).
  • Special Address – by Mr MLN Acharyulu, CEO, Marg Infrastructure.
  • Address by Guest of Honour: Dr TS Sridhar, IAS, Additional Chief Secretary, Government of Tamil Nadu; Member, Local Advisory Board, NMF; Former Vice Chairman, Tamil Nadu Maritime Board.
  • Concluding Remarks – by Cmde (Retd) S Shekhar, Regional Director, NMF.

Plenary Session I: Technological Upgradation of Ports

  • Opening Address – by Cmde (Retd) S Shekhar, Regional Director, NMF.
  • Modernization of Port Infrastructure in India – by Dr R Sundaravadivelu, Professor of Ocean Engg Dept, IIT Madras.
    • Ocean Engg Department of IIT Madras is actively involved in development of Deep Water Offshore Structures, Port Infrastructure to handle VLCC and 18000 TEU Vessels, Ocean Thermal Energy Conversion, Offshore Wind energy, Desalination. TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_3
    • Activities of IIT Madras in development of Port Infrastructure are:
      • Existing berths of ports are deepened to handle vessels with 12.5 m draft after undertaking feasibility studies in Kandla Port, Visakhapatnam Port, Paradip Port.
      • Setting up of second container and mega terminal at Chennai Port.
      • Setting up of Gopalpur Port Berm Breakwater.
      • Integrity tests to assess damage and monitoring.
      • Ground improvement by jet grouting and lime injection.
      • Setting up of sea walls with geotextile and gabion boxes.
      • Sand bypassing with groyenes to control coastal erosion.
      • Setting up of shiplifts, drydocks and floating docks.
  • Technological Benefits of a Modern Port – by Capt LP Raman, Sr Vice President, Marg.
    • Benefits of Technological Upgradation of Ports
      • Reduce turnaround time of vessels.
      • Minimize pre berthing delays.
      • Improve cargo handling efficiency.
      • Cost optimization.
      • Better capacity utilization. TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_4
      • Reduce pollution.
      • Improve operational safety.
      • Enhanced port security.
      • Better revenue/earning.
    • Technological Innovations Around the World for Port Sectors.
      • Vessel Traffic Management – by a proactive Control Centre with inputs through Marine AIS, Direction Finder, Radar, Cameras etc.,
      • Harbour Pilot – using Portable Pilot Aids for safe navigation and docking assistance.
      • SSG (Seawave Slotcone Generator) Breakwater – electricity generation within the breakwater with integrated multiple reservoirs and multi stage turbines.
      • Automated Ship Mooring System – quick, safe, reliable mooring handling of ships without ropes in less than 15 seconds.
      • LNG – Offshore Turret Mooring System (for underwater transfer of LNG through subsea pipelines), Gravity Based Floating LNG Terminal, Storage and Re-gasification Terminal.
      • Automated Cargo Handling – using unmanned Automated Guided Vehicles, Automated Wagon Loading, Wagon Tipplers, Evacuators, Stacker Reclaimer, Cryogenic Tank Mounted Vehicles, Truck Loading Stations for LNG.
      • Innovations in Port Logistics – using Mobile Computing Devices, Analytic Software, Social Media.
  • Sustainable Port Development – by Capt Rajesh Malhotra, CEO, Dredging Solutions.
    • Port is the Key Link for the Supply Chain.
    • Stake Holders of the Port: Harbour Authority, Terminal Operators, Port Workers, Railroads, Trucking Companies, Shipping Lines, Cargo Owners, Regulatory Agencies (DGS/MMD/State Maritime Board), Local Administration and Revenue, Navy and Coast Guard.
    • Ports play a major role in the economic development of the region/country through development of
      • Human Capital.
      • Critical Infrastructure.
      • Regional Competitiveness.
      • Environmental Sustainability.
      • Social Inclusion, Health, Safety, Literacy and other initiatives.
    • Economic Development of a Port: depends on Location of the Port, Connectivity and Access Points, Resources in Proximity, Political and Cultural Environment of the region.
    • Dredging is an essential part of port development and maintenance process; ports must avoid considering the cost of dredging as a wasteful expenditure.
    • Sustainability of Port.
      • Depends on the sustainability of the trade; this can be done by broadening the scope for evaluation of benefits and costs. TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_5
      • Defined Benefits: Better Infrastructure, Jobs Creation (Employment), Lower-cost goods for Consumers.
      • Defined Direct Costs: Cost of Port Infrastructure, Cost of Connectivity, Cost of Transport.
      • What is Not Defined ?
        • How benefits are distributed ?
        • Indirect Costs are often poorly understood or sometimes deliberately ignored.
        • How many Health related issues does Port Cargo contribute ?
        • What does it cost to treat Port Related Health Cases ?
        • What could be the cost to develop alternative waterfront ?
        • Finally, even if the costs are defined, Who is To Pay for the Costs ?
      • Ports and the Port Stake Holders should approach economic development holistically and progressively by leveraging its influence to
        • Build Human Capital.
        • Mitigate various impacts by helping to develop and support environment friendly ‘green’ technology.
        • Local Administration must create customer/user friendly environment to attract new business.
      • Areas that need attention/development
        • Conduct road shows in area adjoining port to help people understand hazards and mitigate.
        • Implement technology for absorption of NOx/SOx/CO2 and convert to Fuel and other by-products.
        • Use Solar, Wind, Wave Energy.
        • Ports must go beyond cargo movement to prove their value to stake holders.
        • Demonstrating local benefits beyond wages is increasingly important to justify cost of development, expansion and operation of Ports.
        • Ports should undertake studies for beneficial use of dredged soil; like development of new water front/island.


  • Supply Chain Planning and Optimization for Efficient Port Management & Logistics – by Mr Rajbir Singh, Manager, The Logic Factory – Netherlands.
    • Business Objectives of Ports
      • To become the Most Favorable Port for national and international customers.
      • To increase throughput and meet capacity.
      • To become the Most Cost-effective Port by reducing costs.
      • To increase profit.
    • To Meet the Business Objectives, Ports have to
      • Plan – unfortunately most of the ports are presently weak in planning.
      • Operate and Execute across the Supply Chain – though operations are in full throttle, the executions are in fire fighting mode in most of the ports.
    • Information Technology plays a major role in Supply Chain Planning and Optimization for Efficient Port Management & Logistics in the following areas.
      • Planning:
        • Planning Levels: Strategic Planning (yearly to monthly), Supply Chain/Company Planning (monthly to weekly), Collaborative Scheduling (weekly to daily), Revision (daily to hourly on real time scheduling and alerting)   TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_6
        • Planning Process: Transforms Goals into KPIs (Key Performance Indicators); KPIs into Planning Decisions; Planning Decisions into Applications.
      • Operation: Import/Export Bookings; Allocation and Managing Priorities for Vessel/Berth/Crane/Crew/Yard/Inland Transport.
      • Tailor made IT Applications are available:
        • Quintiq – Planning and Scheduling for Optimized Production and Supply Chain.
        • NAVIS Express/SPARCS SAP/ERP – Port Management
        • Container Equipment Management System.
        • VTMS – Vessel/Vehicle Traffic Management System.
    • Benefits of IT Applications:
      • Cost Optimization, Revenue Optimization, Improve Customer Service, Visibility and Alignment, More Business Control, Improve Management Information.
      • Give flexibility to planners to achieve optimization through manual/semi automatic/automatic planning and decision support.
      • Tangible Value Addition and ROI (Return On Investment)
        • Supports planners with right tools to take ‘every time’ best decisions.
        • Synchronize and Optimize all planning activities of Vessels, Resources, Equipment, Yard Space, Rakes.
        • Save on cost by integration of planning all verticals, and from vessel till yard/rake.
        • Save on repositioning moves by active chain management.
        • Create centralized planning department/group.
  • Question & Answer Session.
    • To a question whether Technology Upgradation of Ports is possible in a country like India, it was brought out that though the upgradation is possible, it may be a slow process due to high population.
    • To a question whether Karaikal Port would be upgraded to handle Capesize Vessels, it was told that the port is designed to accommodate, but dredging is necessary; upgradation is possible only if it is profitable.
    • Ports must provide facilities to vessels to dispose solid/liquid wastes without polluting the harbour.

TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_7 TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_8

Plenary Session II: Logistics & Infrastructure Improvements.

  • Opening Address – by Gp Capt (Retd) LV Mohan Das, CII (Southern Region).
  • Kattupalli Port – A Rising Port: by Mr G Gandhirajan, COO, Kattupalli Port, L & T. TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_9
    • L & T Shipbuilding Limited, a Joint Venture Company between TIDCO and L & T has developed an integrated Shipyard cum Port in Kattupalli.
    • Kattupalli Port is a all weather, 24/7 Navigation, Non-Major Port under the administrative control of Tamil Nadu Maritime Board (TNMB); the Port was inaugurated on 30 January 2013.
    • Port has a world class Container Terminal (KICT), with annual capacity of 1.2 million TEUs; road connectivity is available to NH 4, NH 5, NH 205.
    • KICT is operated by International Container Terminal Services Inc (ICTSI), a global operator from Philippines.
    • Kattupalli Port is now operational for handling Containers, Project Cargo, Break-bulk Cargo.
    • Kattupalli Port offers
      • Competitive Tariff.
      • Efficient Operations.
      • Quick Turnarounds.
      • Reliable Service.
  • Containerization – Global View & Indian Emerging Scenario: by Mr Ennarasu Karunesan, Director & CEO, DP World.
    • Global Container Volume was 590 million TEUs in 2011; it is expected to be 780 million TEUs in 2015 and is further expected to reach 1 billion TEUs in 2020.
    • Asian region alone accounts for more than 50% of Global Container Volume.TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_10
    • Unfortunately containerization in India is only 22%; whereas In China it is 55%; in developed countries it is 80%; in developing countries it is 65%.
    • Ship Size: In the year 2000, it was 6000 TEUs; in the year 2010, it was 8500 TEUs; in the year 2015, it is expected to be 15000 TEUs.
    • Container Vessel Marco Polo of CMA-CGM, with a capacity of 16000 TEUs is already in operation.
    • Draft at Ports: the requirement was 13 meters in the year 2000; it was 14 meters in the year 2010; it is expected to be 15 to 17 meters in the year 2020.
    • Containers Handled in Asia in the year 2012: Malaysia – 20 million, Hong Kong – 25 million, Singapore – 30 million, China – 160 million; but in India, it was only 10 million.
    • Now Container Terminals in India are waiting for ships to come.
    • Container Trade Issues that need immediate attention
      • Non Availability of Last Mile Road Connectivity.
      • Under Utilized Inland Water Ways.
      • Lack of Coastal Shipping.
      • Inadequate Rail link.
      • Market Driven Tariff.
  • Challenges on Car Export – by Mr G Raghuraman, General Manager – Exports, Hyundai Motor India Ltd (HMIL).
    • HMIL, Chennai is the largest car exporter in India.
    • HMIL exports an average of 2.5 lakh cars per annum to more than 120 countries around the world.
    • HMIL handles an average of 8 RO-RO Car Carriers in a month at Chennai Port.
    • Cars from HMIL have to travel a distance of 45 to 60 KMs by road through trucks/trailers to Chennai Port.
    • Challenges faced by HMIL to export cars through Chennai Port, that need immediate attention
      • Restricted Time Access – 2300 hours to 0500 hours only.TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_11
      • Limited Gate Access – Gate No 10 only.
      • Heavy Traffic Congestions.
      • Lack of Traffic Regulation inside the Port.
      • Delay in Vessel Loading Operation increases Logistic Costs.
      • Increase in TAT affecting Productivity.
      • Customs Examinations 24×7 – not available for DBK shipping bills.
    • Suggestions and Improvements projected by HMIL
      • 24 hours port gate opening for car exports.
      • Widening of roads inside Chennai Port.
      • Car parking capacity inside the port to be augmented to more than 20,000 cars.
      • Effective Traffic Control Regulations through ‘No Parking’ sign boards, Traffic Signals & Controllers at night.
      • 24×7 Customs Examination for DBK Shipping Bills for Exports.
      • Horizontal Development with paved ground more effective than multi-level car parking.
  • Question & Answer Session.
    • To a question whether Kattupalli Port is fully functional, it was clarified that the Port is fully functional.
    • To a question why HMIL is not exporting cars through Kattupalli Port instead of Chennai Port, it was brought out that due to the agreement/contract signed between HMIL and ChPT, it is not possible to use Kattupalli Port.
    • To a question whether development of Hambantota Port in Sri Lanka would affect Indian Container Trade, it was brought out that Indian trade potential for containers is huge and it is not going to affect Indian trade in any way.
    • To a question on the response of ChPT to resolve the challenges faced by HMIL to export cars, it was told that widening of roads inside the port is expected to be over by year end; but remedy for other issues are not known.
    • To a question whether shipping/container handling charges are more than neigbouring countries, it was brought out that container handling charges are reasonably low and ChPT is even offering concession in shipping charges.

TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_12 TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_13

Colloquium (Group Discussion)

  • Brief & Moderation – by Cmde (Retd) S Shekhar, Regional Director, NMF.
  • Topic 1 – Stake Holders Perspective: Determinants for Conceptualizing a port – location – capacity – investments – high upfront CAPEX.
  • Topic 2 – Operators Perspective: Scope for technological upgrades – human resources – enterprise resource planning – decision support systems.
  • Topic 3 – Users Perspective: Constraints preventing international shipping from using Indian Ports – poor connectivity – outdated technology.
  • Presentation by the Group Leaders.
  • Issues brought out through Colloquium.
    • Stake Holders Perspective:
      • Port locations are decided by the availability of land, government support, trade potential, rail and road connectivity etc.,TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_14
      • Ports are not investor-friendly.
      • Port operations are not cost-effective.
      • Inefficient Supply Chain.
      • Lack of technology upgradation.
      • Poor labour management.
      • Irrelevant procedures laid down by Customs, Port Authority.
      • Skill development of port staff is needed.
    • Operators Perspective:
      • Coastal Shipping is needed.
      • Road connectivity has to be 100 % TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_15
      • Investors are not able to recover their investments due to duplication of port facilities or some ports are located too close.
      • Insufficient covered storage facilities inside the port for general cargo (container storage excluded).
      • Outdated harbour machinery, handling equipment – need upgradation.
      • Entry/Exit points in the ports are insufficient.
      • Safety, Security, CCTV monitoring, RFID tagging absent.
      • Shortage of Customs manpower.
      • Dredging is given least priority.
      • National Maritime Act is needed.
    • Users Perspective:Expectations of Ship Owners (including international ships) to visit Indian Ports.
      • Safe Draft is needed. TULIP_Conference_Logistics_Ports_CII_NMF_Chennai_16
      • Quick Turnaround is needed.
      • Minimum pre-berthing paper work preferred: In the era of computers and internet, why forms are still need to be filled in quadruplicate with irrelevant information.
      • Ship Owners look for Cost-effectiveness.
      • Zero delay in activities of port is needed.
      • 24×7 Harbour facilities needed.

Thanks to Cmde (Retd) S Shekhar of NMF and Gp Capt (Retd) L V Mohandas of CII, for successfully hosting this one day conference.

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{ 1 comment… read it below or add one }

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