CHAPTER IV ORGANIZATIONAL STRUCTURE AND FUNCTIONS OF CHENNAI PORT TRUST The efficiency

and performance of seaports are influenced by their organization and the styles adopted to manage
them. Consequently, it can be postulated that effective seaport organizations will considerably improve
the efficiency and performance of their seaports which, in turn, would have positive effects on the
nation’s transport systems and the country as a whole. Ports are critical infrastructures that have carried
out maritime trade right from ancient times to the present thus fostering the economic development of
nations. The Ports in India are vital elements in the infrastructure sector and contribute to the economic
development of the nation. They are the facilitators of international trade and the gateways for exports
and imports of industries in the country. Almost 95 per cent by volume and 70 per cent by value of
India’s global merchandise trade is carried through the nation’s 12 major and 185 non-major ports. The
major ports of Vishakhapatnam, Mumbai, Kandla, Kochi and Mormugao have natural harbours while
Kolkata is the only riverine major port in the nation. The ports of Chennai, Ennore, VO (Chidambaranar),
New Mangalore, Paradip and Jawaharlal Nehru Port Trust (Maharashtra) possess artificial harbours. The
State of Tamil Nadu has contributed to the economic development of the nation by fostering a
favourable business climate with good infrastructure facilities for trade and investment. The 2014
industrial policy of the State with its strong focus on infrastructure development aims to sustain and
improve its competitive edge in various sectors including manufacture of automobiles and auto
components, engineering goods, leather, textiles and biotechnology. The improvement of connectivity
to the major ports of Chennai and Ennore; the promotion of multi-level car parking terminals in the
seaports of the state and collaboration with the union government in the process of setting up a Mega
Terminal for the major port of Chennai are all part of the 2014 industrial policy of the State of Tamil
Nadu. 122 The ports in Tamil Nadu play a vital role in promoting trade and development in the state, by
serving as gateways for the movement of exports and imports. The three major ports of Chennai,
Kamarajar (Ennore) and VO Chidambaranar, handled about 107.09 mt of cargo during 2013-14
accounting for 19.2 per cent of the total throughput handled at all the Major Indian Ports.188 Kamarajar
(Ennore) – the first major corporatized port, was set up as a satellite to aid Chennai in handling thermal
coal to meet the requirements of the Tamil Nadu Electricity Board (TNEB). The port has also developed
facilities to handle coal (other than TNEB); and Petroleum Oil Lubricants and chemicals. VO
Chidambaranar has a strategic location close to the East-West international route and handles mainly
the commodities of Petroleum Oil, Lubricants, coal, general cargo and containers. Chennai Port Trust is
the largest port in the region of Tamil Nadu. It handled 25 per cent of the total container traffic at Major
Indian Ports or 1468,000 TEUs during 2013-14. 189 The port handles a variety of general cargo,
containers, cars and project cargo. Chennai Port Trust was selected for the present study because it is a
gateway port for all cargo, an emerging hub port on the east coast of India and the third oldest port
among major Indian Ports with a hinterland that covers the industrial locations of Tamil Nadu, South
Andhra Pradesh, and parts of Karnataka and Puducherry. The present chapter analyzes the trends in the
growth of Chennai Port Trust from 1881 till 2001 and discusses the organizational structure, functions
and personnel policy of the Port Trust of Chennai. The Inception of the Port and the Beginning of the
New Harbour The success of Madrasapatnam as a trading settlement soon made it the chief port of the
English in India. On September 24, 1641, it became the chief factory of the English on the East Coast.
The first offices of the Chennai harbour and its godowns were in Fort St. George, but by the end of the
18th Century, trade had outgrown the Fort. From the end of the 18th Century, goods were landed on
the strip of the beach opposite the present Custom House, instead of at the Fort, where the sea 188
Update on Indian Port Sector (2014), Transport Research Wing, Ministry of Shipping, Government of
India, New Delhi, p.11 189 ibid, p.13-14 123 came in very much further than it did later. The Company
had established its control and authority over a great part of peninsular India – from the Northern
Circars (southern Odisha) to Cape Comorin and up to ‘Canara’ (now Uttar Kannada district) by the end of
the 18th Century. The beginning of the 19th Century was a turning point in the history of the Company
and of South India. Although trade was the professed objective of the Company, with territorial
expansion, its officials were getting more involved in politics and administration. The demand for the
end of the Company’s monopoly and the cry for ‘Free Trade’ in India grew, as a consequence. Cyclonic
gales often struck the East Coast, and the Madras Chamber of Commerce took a serious view at the
hazards of Madras Port during the first 200 years of British settlement. They felt that from the maritime
point of view, Madras was a liability since there was no shelter. The risk to the cargoes was great during
the course of transshipment from a ship to the masula boat in the midst of the surf and the swell, and
the tossing of the boat as the packages could slip into the sea either by accident or sometimes
deliberately. Masula boats were used for lightering cargo at the port before the harbour was built. A
hand-coloured salt print by Fredrick Fiebig depicts masula boats on the beach in 1851, in Figure 4.1.
Figure 4.1 Masula Boats for lightering cargo at the coast before Madras Port was built Source: Chennai
Port Trust, 1851 124 As late as 1858, at the insistence of the Madras Chamber of Commerce, an Act
provided that every cargo boat shall carry a policeman, to prevent the plundering of the cargo by the
boatmen between the ship and the shore. The goods brought in the masula boats were piled all over on
the beach. The boatmen ruled the day. In fact, the first objection to building any port in Madras came
from them, as they feared that their livelihood would be lost once the port was built. On the other hand,
the boatmen were one of the main reasons for the Madras Chamber of Commerce to seek construction
of a port. Captain William Lennon of the Madras Engineers in 1798 offered the Government a scheme,
which, he stated he would complete in three years and for which he would raise the funds. He
suggested that a pier 1350 feet in length should be built to run out at nearly right angles to the shore, so
as to bisect the direction(s) of the surf in the different Monsoons.190 Fifty years later, there commenced
the adaptation of the very same scheme bit by bit. Thus, by 1800, Madras Roads had moved from
opposite the Fort to a point about a mile north, facing Bentinck’s Building. By October 1881, both the
North and the South Piers had been completed to their full length, with a 550-foot entrance on the east;
7836 lineal feet191 of breakwater had been constructed, and 13,309 concrete blocks set in position, all
of which is considered the beginning of the modern harbour of Madras that has grown into Chennai Port
Trust. Growth of Madras Port Trust from 1887 to 1919 The first available Administration Report of
Madras Port Trust192 is for the year 1889-1890. The total tonnage during 1887-1888 was 300,887
tonnes. In 1889, the Madras Chamber of Commerce felt a member to represent the Railways must be
appointed to the Harbour Board and agreed, with the Railways to fit in a Railway Traffic representative
among its four. The Government also restricted its own nominees to five (excluding the Chairman), one
of whom was to be an engineer. In 1891, C. Pinsent, Secretary, Harbour Trust Board, wrote to the
Chairman that, the 190 Chennai Port Trust, (2007), "Overcoming Challenge - A Pictorial History of the
125 year Saga of Chennai Port, The Harbour that Men made", Compiled by Muthiah S and Narasiah K. R.
A., Madras Editorial Services, Chennai, p.20 191 Linear feet (often called Lineal feet) are the same as
regular feet. No conversion is necessary 192 In 1996, Madras was officially renamed as Chennai. Prior to
1996, Chennai Port Trust was known as Madras Port Trust 125 harbour in its present form can never be
entirely satisfactory as landing and shipping operations continued to be delayed if not stopped in bad
weather. As the 19th Century ended, the traffic handled during the previous 12 years, as recorded in
Table 4.1, reflected a growth in tonnage and trade that warranted immediate action. Table 4.1 Traffic
handled by Chennai Port Trust from 1887-88 to 1898-99 Year Pier (tonnes) Beach (tonnes) Total (tonnes)
1887-88 124,721 176,166 300,887 1891-92 154,033 282,307 436,340 1896-97 180,950 307,596 488,546
1898-99 156,735 396,334 553,069 Source: Chennai Port Trust Administration Reports 1889-90; 1891-92;
1896- 97; 1898-99 When the Marine Department of Madras was formed, it was also in charge of the
chank and pearl fisheries of Tinnevelly (Tirunelveli) collecting the revenue. However, such collected
revenue was given to the Revenue Board. In addition to this, the Department also supervised the marine
activities of the southern ports. Thus, by the end of the 19th Century, the Madras Presidency’s entire
marine trade was under the control of this Department located in Madras and, in volume, it was much
more than any other province's marine trade. Table 4.2 shows the trade tonnage in the different
provinces. Table 4.2 Trade Tonnage in different provinces of India by the end of the 19th century Types
of Steamers Bengal Bombay Madras British Burmah Foreign 20,37,340 16,49,063 11,77,337 12,93,031
Coasting 14,25,367 51,51,517 68,40,760 12,38,125 Total 34,62,707 68,00,580 80,18,097 25,31,156
Source: Chennai Port Trust 126 The bulk of the Madras Province tonnage was accounted for by its
capital, Madras. It was inevitable that greater attention would be paid to the harbour since the marine
trade of Madras showed promising growth. The Port handled 436,340 tonnes of traffic during 1891-92
which increased to 572,072 tonnes in 1901-02, showing a growth of 31.11 per cent. The number of
ships/vessels handled however decreased from 852 in 1891-92 to 631 in 1901-02. 193 In order to
mitigate the direct effect of the surf on the wharves inside the harbour and overcome the sand menace,
the Nares Committee was appointed with a view to shifting the entrance of the Port. The Committee
stated that a northern entrance would overcome the siltation problem, but pointed out; that there were
navigational problems in having a northern entrance. To overcome the issue, the Committee felt it
would be necessary to extend the Eastern Breakwater by about 1200 feet towards the north, to create a
sheltering arm. The recommendations of the Nares Committee were agreed to by the Government, in
1904 and Francis Spring, an engineer who had earned a reputation for the excellence of his work in the
Railways, was appointed Chairman of the Madras Port Trust. The remodeling of the Port began in 1905,
under the supervision of the port's Chief Engineer, F. J. Wilson, and when Wilson retired the next year,
Francis Spring assumed additional charge as the Chief Engineer of the port. The Remodeling of the Port
comprised three stages of work including projecting the Eastern Breakwater northwards to form a
sheltering arm; opening of the new northern entrance, which entailed the removal of a 400 feet section
of the Northern Breakwater at the northeastern corner of the harbour; and, finally, the closing of the
eastern entrance. Francis Spring rendered inestimable service in his role as a chief architect in
developing the port to a highly efficient commercial one. It must be mentioned that by 1919, the Port of
Madras had become a smooth harbour due to the efforts of Francis Spring. The landings and shipments
used to be affected in masula boats prior 193 Administration Reports of the Madras Port Trust for the
years, 1891-92, p.3-4; 1901-02, pp.3-5. 127 to the completion of the granite quay, 3,000 feet long, all
along the western side of the Harbour. The quay was founded on wells sunk from 50 to 60 feet below
low water. The rubble bases on which the breakwaters rest had always prevented ships from lying close
alongside of these structures. Therefore, in 1911 a strong steel wharf, 335 feet in length, in front of and
parallel to the South Breakwater was provided, and it is this wharf which is known as the South
Quay.194 In addition to a shed at the Springhaven basin measuring 440 x 120 feet, chiefly used for
coasting cargo, there had been constructed, all along the western face of the harbour, a range of four
single-storey transit sheds. Until the completion of the warehouses, parts of these transit sheds, had
necessarily been leased to merchants for the storage of produce awaiting shipment. On the sea front, at
the centre of the West Quay, (in 1909-10) a two-storey, stone - faced central office with a central signal
tower was erected. In this new office all the Trust's business, marine, traffic, cash accounts and general
administration, was carried on, except for its engineering for which it was proposed, later, to find room
when finance could be arranged. 195 The Trust's working premises were now fully walled. The broad
gauge railway entered the walls through one gate and the metre gauge through another - the Harbour
sidings being all on the mixed gauge. At the main central entrance was the triple 'Anchor Gate', well
policed, lighted, and signalled, through which most of the Harbour business passed, but there were also
two other business gates, as well as a departmental workshop gate, in the walls at the South and the
East Quays, Springhaven basin and the timber yard. 196 The Port Trust also handed over a considerable
area (about 20 acres) to the railways for the purpose of a joint passenger station (now called Beach)
opposite the main eastern face of Madras' business area. The South Indian Railway was, with this
facility, in a position to offer better service to the trade and the public. The Chennai 194 Chennai Port
Trust, “Overcoming Challenge”, See Footnote 191. P. 77 195 Chennai Port Trust, “Overcoming
Challenge”, p.87 196 ibid, p.87-88 128 Port Trust Railway, a vital link in the successful operation of the
port, dates to a metre gauge track laid with the help of the South Indian Railway and commissioned in
June 1880. All railway traffic within the Port Area is handled by this railway, which is owned, maintained
and operated by the Chennai Port Trust. It is connected with the Trunk Railways on the northern side at
Royapuram and on the southern side at Madras Beach Station.197 The growth in traffic facilities in the
harbour from 1903-04 to 1918-19 may be seen from Table 4.3. Table 4.3 Growth in traffic facilities of
Madras Port Trust from 1903-04 to 1918-19 Works Unit 1903-1904 1918-1919 Arranged for, including
present Area of harbour 26 feet deep and over Acres 130 150 172 Average detention of cargo vessels in
port Days 12 4 - Detention outside harbour, in the year Hours 800 20 - Warehouses Acres - 4.96 6.25
Transit sheds Acres 2.8 7.5 7.5 Quays for ships Number - 8 8 Wharfage length for lighters Feet — 3870
3870 Lines and sidings Miles 2.5 IS 17 Locomotives Number 2 9 9 Wagons Number - 30 30 Cranes
(hydraulic) for lighters Number — 60 60 Cranes (hydraulic) for ships Number — - 4 Weighbridges,
automatic Number 2 2 Source: Chennai Port Trust Administration Reports from 1903-04 to 1918-19 197
Chennai Port Trust, “Overcoming Challenge”, p.91 129 The tonnage handled in the port of Madras was
increasing, but at a low rate, before the war. The effects of war and later conditions during this period
may be observed from Table 4.4. Table 4.4 Tonnage handled by Madras Port Trust from 1911-12 to
1917-18 Year Registered tonnage Imports- (tonnes) Export- (tonnes) Total tonnes of goods 1911-12
(peacetime) 16,30,000 4,47,000 1,53,000 6,00,000 1912-13 (peacetime) 16,78,000 5,97,000 1,78,000
7,75,000 1913-14 (peacetime) 17,77,000 6,08,000 1,90,000 7,98,000 1914-15 (8 months war) 12,55,000
4,83,000 1,71,000 6,54,000 1915-16 (full year war) 10,75,000 3,82,000 1,90,000 5,72,000 1916-17 (full
year war) 9,61,000 4,29,000 1,70,000 5,99,000 1917-18 (full year war) 7,38,000 4,06,000 2,25,000
6,31,000 Source: Chennai Port Trust Administration Reports from 1911-12 to 1917-18 During the later
years of this period, more of munitions were landed. A comparison of the financial position of the Port
from 1903-04 to 1918-19 shows that the gross value of trade was Rs.140 million in 1903-04 and Rs.240
million in 1913- 14. The war had its effect on the harbour. While in 1913-14, State imports were only 35
per cent and exports only 10 per cent of the total import and exports, respectively, the proportion had
changed by 1917-18 to State imports 10 per cent and exports 48 per cent of the total imports and
exports198 . Madras Port Trust in the 1920s and 1930s It is interesting to note that tonnage handled by
Chennai Port Trust increased to 874,080 tonnes in 1921-22 registering an increase of 44.16 per cent
from 606,325 tonnes of traffic in 1911-12. The ships handled by the Port also grew to 653 vessels in
1921-22 from 603 in 1911-12. 198Chennai Port Trust, “Overcoming Challenge”,p.92 130 The number of
ships using the port was 795 in 1926-27, 936 in 1927-28, 896 in 1928-29, 878 in 1929-30 and 818 in
1930-31. The tonnage handled during the same period was 1,159,834, 1,133,412, 1,444,342, 1,595,891
and 1,516,563 tonnes respectively. This up and down pattern continued for the next five years, the
1930- 31 tonnage being exceeded only twice, just marginally. It was a depressing period in the economic
history of the port199 . The import of cars, curiously, did not suffer and reached a peak in 1928-29, 4836
arriving in Madras, mainly from the U.K., but a growing number of the U.S. car imports that had started
in 1912-13, with 263 vehicles, also steadily increased200 . There was an effort by the Port to induce
trade by abolishing the quay charges, thus reducing the dues. This was introduced from April 1, 1935,
and this involved a loss of revenue to the port, the loss that year being Rs.171,741. In February 1931, the
port handled the largest tonnage vessel till then, S.S. Franconia (20,175 tonnes) and the deepest drafted
vessel, S.S. Salwati, drawing 30 feet 3 inches. It is interesting to note that, in 1932, the Madras Port
Trust's Board for the first time recognized a trade union, "The Madras Port Trust Workers' Union. South
Quay II, another berth for ships, was commissioned in 1936. Thus, by the mid-1930s, Madras Port had
eight berths with modern equipment to handle ships - four on the West Quay, one on the North Quay,
two on the South Quay and one on the Eastern Breakwater Arm at the site of the original entrance to
the harbour. Fewer ships were berthing in Madras Port due to insufficient depth for the larger vessels. It
was, therefore, felt necessary to deepen the area close to the berths, which required a special type of
dredger fitted with a grab, as traditional dredgers could not go alongside the berth and pick up the sand
and clay. The new grab dredger was commissioned in 1936-37 and named Wenlock III. In order to
hasten the discharge and loading of cargo, and thus induce more callers, an electric crane was also
ordered with a capacity of 10 tonnes, which was quite large considering the time. 199 Administration
Reports of the Madras Port Trust for the years 1926-27, pp.1-7; 1930-31, pp.3-14 200Administration
Reports of the Madras Port Trust for the years 1911-12, pp.1-7; 1921-22, pp.1-4 131 Madras Port Trust
in the 1940s The development work undertaken in the harbour began to pay off within a few years, and
the port's finances were beginning to look up when World War II broke out. The port traffic, which stood
at about one million tonnes at the end of the Great War and kept dropping, picked up with World War II,
when the traffic touched an annual 2.5 million tonnes. In 1942, to add to its capacity, the anchor
(central) steps in front of the Administration Building were demolished, and another berth created.
Thus, the West Quay now had five berths, the new berth being named Centre Berth. In 1942-43, the
Howrah Bridge had been completed in Calcutta and some machinery was declared surplus and was
available at a modest cost. The port purchased a 60-ton crane from the contractors who built the
Howrah Bridge and installed it on the new Centre Berth. This was not movable, yet it was useful for
loading and discharging cargo, especially heavy wartime materials.201 Due to fear of possible bombing
or even invasion of the city by the Japanese, a temporary office of the Trust was opened in Ootacamund
and the Accounts Office was shifted there, with all important records in 1942. No major works could be
attended to due to the paucity of funds during the year, and even maintenance work was reduced to the
bare minimum. A 100,000-gallon capacity static tank, however, was constructed for the Madras City Fire
Services and part of one of the warehouses was converted into a fire station. The last quarter of 1943
proved to be dark days in the port. There was a minor air-raid on the night of October 11, 1943, when
the superficial damage was sustained by some of the Trust’s buildings. To compensate for the loss of
revenue due to lower trade levels for some years previous, a surcharge of 25 per cent on levies was
charged, and Trust labour was used more and more for the handling of cargo. 201 Chennai Port Trust,
“Overcoming Challenge”, pp.107-108 132 In October 1944, Sir Godfrey Armstrong handed over charge
of the port to G. P. Alexander, who had till then been the Chief Engineer and a well-known harbour
engineering expert. With effect from November 1944, the Trust's employees who were in receipt of a
dearness allowance were also supplied with cheap food coupons encashable for essential food items at
government outlets. In 1945, a commission had also been appointed with Sir Godfrey Armstrong as
‘Advisor’ and four members to assess the capacity and future requirements of the Port. Meanwhile,
another Committee called “The Ports (Technical) Committee” was formed, headed again by Sir Godfrey
Armstrong. The report of this Committee was published in April 1946. The Committee inspected the Port
of Madras in April 1946 and recommended that the Port should firstly obtain prescriptive rights over the
land south of the harbour up to the River Cooum so that the Harbourfront could be enlarged. India had
to plan its expenditure for its new industry-focused policies and for other needs of the larger society,
such as agriculture and education. To meet this challenge, the Five-Year Plans were introduced from
1951.202 Ports were recognized as economic multipliers and portals to the prosperity of the country.
However, the Government had to perform a balancing act, as funds were limited and resources were
required for many port activities. It became a tough task for the Madras Port's planners to prioritize the
requirement with the limited funds available. During the last quarter of 1945, there were two storms
and the port's work was severely affected, and the port was still operating on a deficit. To overcome the
deficit, the 1947 surcharge of 25 per cent was increased to 50 per cent with effect from December 30,
1947. A new dredger, imported from the UK, was fittingly named Sir Godfrey Armstrong and started
working from August 1947. On August 15, 1947 India became independent, and Madras Port was to see
a new era. Madras Port Trust from 1950 to 1960 By 1951, the port could accommodate nine ships along
the quays, and a few more at the moorings from where they discharged the cargo into lighters which
were 202 Administration Reports of the Madras Port Trust for the years 1946-51 133 off-loaded at
convenient points. Of the nine berths, only six were provided with sheds for stacking the transit cargo.
The capacity of the port was only 1.4 or 1.5 million tonnes a year. However, with heavy food imports, it
had to handle 2.15 to 2.20 million tonnes a year in 1951-52 as well as the following year. This tonnage
was the trend over the next few years causing congestion and thus the navigation of vessels had to be
extended to 10 p.m. A second shift also had to be introduced for the tugs to relieve the crush. The port
had only 19 cranes and in a classic case of over-utilization of equipment, they delivered the goods. The
ships had to wait outside for days to be berthed. The first step taken towards resolving this issue was
the ordering of 6-ton diesel-electric mobile cranes with revolving jibs.203 The licensing of stevedores
was started by the port for the first time, from April 1, 1951. The Madras Port Trust Act 1905 was
amended and the Port Trust and Ports (Amendment) Act, 1951 came into effect on July 16, 1951. During
the year, the Port Engineer was officially re-designated as the Chief Engineer and B. Nagbhushanam was
appointed as the first Indian to the post. He was succeeded by K.N. Srinivasan in 1952. It was at this
critical juncture that the first Indian Chairman of the Port, G. Venkateswara Ayyar I.C.S., took charge. He
succeeded the last British Chairman, G.P. Alexander, in August 1951. Venkateswara Ayyar was Chairman
till 1959 when he was appointed Secretary to the Ministry of Transport, Government of India. While all
these changes in trade and management were taking place, there was little change in the natural
conditions of the harbour. The schemes sanctioned in 1954 included the Wet Dock Scheme, which had
three components costing Rs.3.3, Rs.4.8 and Rs.2.3 million respectively. Work was also initiated in
respect of the North Quay jetty and modification of the Ore and Coal Berths. A derrick crane to handle
cargo was ordered from Scotland. Labour welfare received a boost with the establishment in 1954 of the
Dock Labour Board, a statutory body under the Dock Workers (Regulation of Employment) Act of 1948.
The Board is a tripartite body comprising representatives 203 Chennai Port Trust, “Overcoming
Challenge”, p.115 134 of the Union Government, dock workers, and their employers. In the initial
stages, the Board took care of the registered dock workers who handled export and import cargo on
board the vessels in the port. Meanwhile, passenger traffic too increased substantially in the 1950s, with
passenger vessel services regularly operating between Madras and Malaysia, Burma and the Andamans.
In 1956, it reached about 60,000 passengers annually, and the South Quay was proving totally
inadequate. Iron ore cargo was a significant foreign exchange earner. Thus, priority was given to
improving its handling. T.T. Krishnamachari, as early as 1956 when he was the Minister for Commerce,
urged that ore handling be mechanized.204 The Port was able to go ahead with the following schemes it
had planned at a cost of nearly Rs.158 million: Measures to meet the sand menace; Measures to
improve the port’s efficiency; Measures to improve the port’s capacity; and Welfare measures.
Additional warehouses were also built to provide users storage inside the port for their cargo between
1956 and 1958. Valuable commodities like tobacco, turmeric and tea and sensitive machines received in
the port were required to be stored in covered sheds prior to their dispatch to their destinations. In
1959, the Port authorities decided to take over the handling of the export cargo, except bulk cargo, such
as ores and oils. It was about this time, in the late 1950s, that ore exports experienced a quantum jump
and amounted to 463,422 tonnes in 1956-57, of which iron ore alone was 313,986 tonnes. The urgency
of doing something to improve the iron ore handling, both by way of introducing new methods and
equipment, was felt. In 1959, there was a distinct improvement in the working of the harbour. The cargo
was handled faster, and the turnaround of ships was faster. The heavy influx of war materials during the
war necessitated the demolition of the anchor steps in front of the Administration Building and the
provision of a berth in their place. This was named the Centre Berth.205 A heavy lift crane was also
installed there. Due to the lack of a transit shed behind the berth, this landing site could not function
efficiently and, therefore, the 1916 building was pulled down by the Trustees. 204 Administration
Reports of the Madras Port Trust for the years 1954-55 pp.1-8; 1955-56, pp.1-27 205 Chennai Port Trust,
“Overcoming Challenge”, p.122 135 Madras Port Trust in the 1960s and 1970s 3,467,143 tonnes of
traffic was handled by the Port in 1961-62 recording an increase of 60.90 per cent over 2,154, 820
tonnes handled during 1951-52. The ships handled also increased to 1289 in 1961-62 from 1091 in 1951-
52206 . As iron ore was a significant foreign exchange earner, priority was given to improve its handling.
On the assurance given by the Ministry of Commerce, a decision was taken to build a berth with all the
necessary equipment. The berth had a draft of 31 feet. The berth was equipped with three 13-ton
capacity cranes to load the ore into the ships using the special trays. At the same time, coal-handling
facilities were improved. Work on the Ore and Coal Berths went on till 1965. The first half of the 1960s
also saw considerable other development in the harbour. The remodeling of South Quay II and I was
completed in 1960 and 1965 respectively. But most important of all, berth strength was greatly
increased when wet dock Jawahar was commissioned in 1964. In 1969, a 4-storeyed building was
constructed for the Dock Labour Board on Rajaji Salai. The Dock Labour Board, which had been
functioning as a separate entity since its inception, was merged with the Chennai Port in May 2001. The
Board after the merger has been functioning as the Cargo Handling Division under the Traffic
Department of the Chennai Port Trust. 206Administration Report of the Madras Port Trust for the year
1961-62, pp.1-18 136 Figure 4.2 Madras Refineries Pipelines at Bharathi Dock Source: Chennai Port Trust
During 1965-75, additional diesel locomotives, warehouses, and transit sheds were provided at South
Quay I. The outer harbour was commissioned in 1972 with the Bharathi Dock located in it. The Dock had
six specialized berths for handling iron ore, containers and liquid bulk up to 20 million tonnes a year. The
oil berth handles oil for the Manali Refinery of the Chennai Petroleum Corporation Ltd (CPCL). The
expansion of the crude oil refining capacity of CPCL from 6.5 MT to 9.5 MT led to the old pipeline being
replaced by a 42-inch diameter one that was laid by CPCL. The Port handled 6,820,913 tonnes of traffic
and 1016 ships in 1971- 72207 . In 1975, the scale of rates for services rendered by the Port was revised
twice, resulting in the Port becoming extremely expensive, at least so far as general cargo was
concerned, in the view of most users. More cargo handling equipment was added almost every year and
a modern workshop developed in the 1970s. An export cargo complex was inaugurated, an ore berth
constructed and an ore handling plant was commissioned in 1977. 207Administration Report of Madras
Port Trust, 1971-72, pp.1-23 137 Madras Port Trust in the 1980s The Port handled 11,471,050 tonnes in
1981-82 showing a positive growth of 68.17 per cent over 6,820,913 tonnes of traffic in 1971-72. The
number of vessels handled also increased from 1016 in 1971-72 to 1295 in 1981-82208 . The cargo
shipment had changed by the 1980s, with containers coming into use. A plan was drawn up to construct
a fully-equipped Container Terminal. This terminal, India's first, was commissioned in 1983. By 1990, it
was necessary to extend it from 1250 feet to 2000 feet. In 1983, the Jawahar Dock was extended to
receive bigger vessels, its draft being increased to 36 feet. During the same year, a fishing harbour was
developed north of the Outer Harbour, and in 1990 its second stage was completed. The number of
berths in 1984-85 was 21; moorings 3; warehouses 14; and transit sheds 11. There was a surge in the
total tonnage handled as it doubled every decade, growing from 2.2 million tonnes in 1954-55 to 15
million tonnes in 1984-85. In 1985-86, 18.2 million tonnes were handled. The container traffic rose from
a little more than 45,000 TEUs in 1984-85 to nearly 84,000 TEUs in 1985-86 and the tonnage from
341,000 tonnes to about 681,000 tonnes - an increase of 99 per cent. Forty per cent of general cargo
was getting containerized. 209 In the 1980s, much construction work was also undertaken in the Port.
An outer protection arm nearly 3500 feet long was built at a cost of about Rs.115 million. A second oil
jetty, completed in 1986 at a cost of Rs.205 million to meet the requirements of the Madras Refinery,
was commissioned in April 1987. The Bharathi Dock was deepened at a cost of Rs.300 million with the
help of the Dutch Government, the work being completed in 1986, to accept 130,000 deadweight
carriers, thus enhancing the competitiveness of iron ore exports from South India. On April 12, 1987, the
Centenary Building of the Port Trust was inaugurated. 208Administration Report of Madras Port Trust,
1981-82, pp.8-27 209Administration Reports of Madras Port Trust 1984-85, pp.7-8; 1985-86, pp.8-9 138
The Port Trust from the 1990s till 2001 In 1990, a floating dry dock with Singaporean participation was
commissioned but it disaffirmed expectations and in 1992, a part of coal handling was moved to the East
Berths of Jawahar Dock. There was a considerable growth in the trade of the Port during 1991-92 and
25,046,183 tonnes of traffic was handled as compared to 436,340 tonnes in 1891-92 showing an
exponential increase210 . In February 1994, the oldest dock basin commissioned in 1881, and later
known as the Inner Harbour, was re-named Dr. Ambedkar Dock. To ease the pressure on Chennai Port,
and also reduce urban pollution from a harbour that grew midst urban development, it was decided to
locate a satellite port in a less built-up area. This port was intended primarily to handle thermal coal
needed by the Tamil Nadu Electricity Board (TNEB). The necessity arose because of the increase in
thermal coal import by Chennai, from 5.05 million tonnes in 1991-92 to 11.86 million tonnes in 2000-01,
more than doubling during the decade. The site chosen was a village known as Ennore, north of Chennai
Port. The new port was developed at a cost of Rs.8350 million, with an equity investment of Rs.3000
million and a debt of Rs.5350 million funded by the Government of India and the Chennai Port Trust.
The port was inaugurated and dedicated to the nation on February 1, 2001. Commercial operations
commenced on June 22, 2001 with Handymax geared vessels for unloading of thermal coal at the two
coal berths (560 metres or nearly 1900 feet in all) meant to handle 16 million tonnes of coal a year
exclusively for the Tamil Nadu Electricity Board. Ennore became a separate port, India's 12th major one,
in 2001 and was registered under the Companies Act to function as 'Ennore Port Limited'. The other
major development was the merger of the Madras Dock Labour Board with the Port Trust of Chennai in
May 2001 after a Memorandum of Settlement was signed to this effect with the recognized trade unions
in order to bring about effective utilization of manpower and operational efficiency. The dock workers of
the board were absorbed by the Cargo Handling Division under the 210Administration Report of Madras
Port Trust, 1991-92, p.7 139 Traffic Department of the Port Trust. The recognized Trade Unions
functioning in the Port representing Class III and Class IV employees include the Madras Port Trust
Employees Union, the Madras Port Trust Railwaymen’s Union, Madras Port United Labour Union,
Chennai Port & Dock Workers Congress and the Madras Harbour Workers’ Union. Geographical location
of Chennai Port Trust The major sea-port of Chennai is situated on the east coast of India (13° 06’ N &
80° 18’ E) and has 24 berths spread over three Docks - Dr. Ambedkar Dock, Bharathi Dock and Jawahar
Dock. The draft available ranges from 12 metres (m) to 16.5 metres. The port has a total water area of
420.00 acres (169.97 hectares) and a land area of approximately 586.96 acres (237.54 hectares).211 The
layout of Chennai Port Trust is presented in Figure 4.3. Figure 4.3 General Layout of Chennai Port Trust
Source: Chennai Port Trust (2014) 211 Chennai Port Trust. , Accessed on 20-April-2014 140 Navigational
channels The port has 7.0 km of entrance channel with the depth of the outer channel being 19.2
metres and that of the inner channel being 18.6 metres. The swell allowance is 300 metres and the
width of the channel gradually increases from 244 metres to 410 metres at the bent portion, and then
maintains a constant width of 305 metres. Length of the Breakwaters In the inner harbour, the length of
the eastern breakwater is 1325 metres and the northern breakwater is 575 metres. In the outer
harbour, the length of the eastern breakwater is 590 metres; the northern breakwater is 460 metres;
the outer arm is 1000 metres, and the upper pitch revetment is 950 metres. The port entrance in
Bharathi Dock is 350 metres, and the entrance to Dr. Ambedkar Dock is 125 metres. 212 Berths (Based
on Reassessment of Existing Port Capacities as on 31-03-2014) Table 4.5 Details of Berth and Occupancy
Level in Chennai Port Trust in 2011-12, 2012-13 and 2013-14 Berth Name / Cargo Handled Length (M)
Designed/Actual Depth (M) Percentage of Occupancy 2011-12 2012-13 2013-14 Dr Ambedkar Dock
North Quay - Passenger / GC 198 8.5 64 55 47 West Quay I - GC/Oth Liq. 170.6 11 58 45 22 West Quay II
- GC 170.6 12 54 44 27 Centre Quay - GC 170.6 12 62 52 56 West Quay III - GC 170.6 12 75 74 60 West
Quay IV - Fert / GC 170.6 11 69 59 60 South Quay I - Fert / GC 246 9.5 74 66 60 South Quay II - Fert / GC
179 9.5 75 62 54 212 www.chennaiport.gov.in, Accessed on 18 - October -2014 141 Berth Name / Cargo
Handled Length (M) Designed/Actual Depth (M) Percentage of Occupancy 2011-12 2012-13 2013-14
Jawahar Dock JD I - Food / GC 218.33 11.5 74 64 55 JD II- Coal / Oth. Liq. 218.33 11.5 75 64 55 JD III -
Food /GC 218.33 11.5 75 70 63 JD IV - Coal / Oth ore 218.33 11.5 47 58 67 JD V - Food / GC 218.33 11.5
61 51 41 JD VI - Oth Ores / Coal 218.33 11 52 87 96 Bharathi Dock BD I - POL 355.65 14.6 82 82 62 BD II -
Iron ore 382 16.5 60 64 61 BD III - POL 307.5 16.5 81 81 68 Container Terminal CTB I 200 13.4 19 10 - CTB
II 200 13.4 56 37 24 CTB III 200 13.4 70 53 44 CTB IV 285 13.4 73 57 37 2nd Container Terminal SC I 287
12 51 53 45 SC II 270 12 48 53 41 SC III 275 12 47 36 33 Source: Chennai Port Trust and IPA: Major Ports
a Profile: 2011-12, 2012-13 & 2013-14 GC- General Cargo; Fert- Fertilizer; JD- Jawahar Dock; BD-
Bharathi Dock; CTB- Container Terminal Berth; SC- Second Container; Oth- Other. As of 31-03-2014, the
Port of Chennai had 2 POL Berths, 1 Iron-Ore Berth, 3 coal berths, 7 Container Berths and 14
General/Break Bulk Berths. Commodity Wise Capacity Available in Chennai Port Trust As on 31-03-2014,
the capacity of the two POL Berths in Chennai Port was 17.67 million tonnes; the iron-ore berth had a
capacity of 8.00 million tonnes, the 14 General/Break Bulk Berths’ capacity was 17.92 million tonnes,
and the 7 Container 142 berths had a capacity of 42.45 million tonnes. The total commodity-wise
capacity of the 24 berths in the Port was 86.04 million tonnes.213 Table 4.6 Storage facilities in Chennai
Port Trust Type of Storage Port Private and user Agencies Total Covered Area Transit Shed 9294 19077
28371 Warehouse 4683 19648 24331 Others 1706 8826 10532 Open Area 167125 366114 533239 Liquid
Cargo (Tank farms, etc.) - 31505 kls 31505 kls Source: IPA- Major Ports: A Profile: 2013-14, (p.25), Kls-
Kiloliters Cargo Handling Equipment Chennai Port Trust had 3 Mobile Cranes, 6 Wharf Cranes, 14
Container quay cranes (under BOT operators), 40 container yard cranes (under BOT operator), 2 pay
loaders, 10 Diesel Fork Lift Trucks + 11 Diesel Fork Lift Trucks (Under BOT Operator), 95 Tractors (under
BOT operator) and 10 Diesel Electric Locomotives as on 31st March 2014.214 Hinterland Connectivity
Chennai has the entire South India as its hinterland. If the seaward connections were also considered as
hinterland for cargo potential, Chennai is well located and connected with other ports in the Bay of
Bengal. On the other hand, there are several disadvantages arising out of a seaport wherein the city has
outgrown and gained in importance vis-à-vis the Port. Chennai Port Trust’s hinterland accessibility is
depicted in Figure 4.4. 213 Indian Ports Association, Major Ports of India: A Profile- 2013-14, p.100 214
Indian Ports Association, Major Ports of India: A Profile- 2013-14, p.19 143 Figure 4.4 Hinterland
Connectivity of Chennai Port Trust Source: Chennai Port Trust (2014) The connectivity to Chennai Port
Trust is time-consuming and results in additional cost burden as it is situated at the eastern end of an
aggregation of urban communities. The Use of rail for cargo movement is limited and hence there is an
overdependence on roads for cargo evacuation. The hinterland served by Chennai Port is dynamic but is
shared by major ports like Ennore, Tuticorin, and Visakhapatnam on the eastern coast and New
Mangalore port on the western coast respectively and will be the potential hinterland for the upcoming
non-major ports as well. Rail and Road Connectivity The city of Chennai is popularly known as "Gateway
to South India" and is well connected to other major cities as shown in Table 4.7. The problem, however,
lies in the last stretch of 15-20 km from the North, West and South to the Port which are clogged and
regulated with traffic restrictions. 144 Table 4.7 Rail and Road connectivity to Chennai Chennai is well
connected to other major cities by national highways namely NH-5 which connects it to Kolkata, NH-4
which connects it to the western part of the country and NH-45 which connects it to Dindugal, the
southern region. The problem however, lies in the last stretch of 15-20 km from the North, West and
South to the Port which are clogged and regulated with traffic restrictions. Thus the penetration in the
hinterland is set off against the shorter but complex city transit; for instance, container cargo can be
moved from Bangalore to the outskirts of Chennai in 4-5 hours but the last 20 km to the Port through
the city roads at times require up 1.5-2.0 hours, even during night time. The ring roads circumventing
the city have helped to an extent, but increased the distance and costs against marginal savings in
hauling time. The Port of Chennai is also well connected with the national railway network. The Port is
linked to the Southern Railway network via Chennai Beach Railway which connects Chennai Port Station
to the Southern parts of Tamil Nadu and via Royapuram which connects Southern Railway Trunk line to
Kolkata, New Delhi, Bangalore, Coimbatore etc. The Port has a rail network of approximately 70 km.215
Facilities at Chennai Port Trust Bharathi Dock Bharathi Dock-I was the first oil terminal that was
commissioned in 1972. Table 4.8 describes the facilities available at the Bharathi dock. 215 Chennai Port
Trust. , Accessed on [20-November-2014] From – station/ region Road Distance Train Kolkata NH-5
North East railway Karnataka and west NH-4 South West railway Southern region (Dhindigul) NH-45
Southern railway North Clogged with traffic restrictions 15-20 kms Northern railway 145 Table 4.8
Facilities at Bharathi Dock in Chennai Port Trust Name of the terminal Total capacity/Depth/Cargo
Equipment The maximum LOA of tankers Maximum LOA of the ship Bharathi Dock-I (1972) 100,000
DWT- tankers 13 million tonnes per annum. 280.4 m 108.15 m Bharathi Dock-III (1986) 140,000 DWT
tankers 13 million tonnes per annum. 280.4 m 108.15 m Pipeline for crude oil NA 762 mm (30”)
diameter NA Pipeline for white oil and others NA 500 mm (20”) diameter 3000 tonnes per hour for
crude oil and 1000 tonnes per hour for petroleum productspumping Pipeline for furnace oil NA 350 mm
(14”) diameter Chennai Container Terminal Private Limited (CCTPL) 13860 TEUs with 13.4 m alongside
depth. 330 reefer plug points, 51 Ground Slots and an additional 25 temporary plug points. The Yard
stacking area is 17 hectares, and the total terminal area is 25.06 hectares. The equipment includes 7
Quayside cranes, 22 RTGs, 1 Empty handler and 2 Forklifts. - - Source: Chennai Port Trust 2014 146
Figure 4.5 Bharathi Dock in Chennai Port Trust Source: Field Visit Bharathi Dock-II has an iron-ore
terminal with a mechanized ore handling plant that is well connected by rail to the Hospet and Bellary
mines but is now not used. Bharathi Dock III was commissioned in 1986. Chennai Container Terminal
Private Limited (CCTPL) DP World Chennai or CCTPL is the first container terminal, built at Chennai Port
Trust in 1983. The container terminal was leased out under a concessional agreement with M/s. Chennai
Container Terminal Private Ltd., on a BOT basis for 30 years from 2001. As per the concessional
agreement, CCTPL is required to pay 37.128 per cent of its gross monthly income to the Trust besides
payment of the vessel related charges such as pilotage, port dues, etc. 216 216 Chennai Port Trust. ,
Accessed on 19-May-2014 147 Figure 4.6 Chennai Container Terminal Private Limited, Chennai Port
Trust Source: Field Visit The Chennai Container Terminal Private Limited (CCTPL) has four berths and a
Quay length of 885 m. The terminal’s output increased from 0.3 million TEUs in 2001 before
privatization to 1.2 million TEUs in 2008 at a CAGR of 22 per cent.217 The performance indicators of
CCTPL have been presented in Appendix VI from 2007-08 to 2013-14. Dr. Ambedkar Dock Dr. Ambedkar
Dock has a car terminal and a multi-cargo terminal with deep drafted berths to handle project cargo,
granite blocks, steel and food grains. 217< www.dpworldchennai.com>, Accessed on 30-March-2014
148 Figure 4.7 Dr. Ambedkar Dock in Chennai Port Trust Source: Field Visit A passenger cum cruise
terminal measuring approximately 3200 square meters is located at West Quay IV at Dr. Ambedkar
Dock. On arrival, berthing is accorded for cruise vessels. The terminal also has 24x7 navigational facilities
and can handle cruise vessels up to 12 metres draught. Chennai International Terminal Private Limited
(CITPL), Chennai Port Trust The Second Container Terminal, Chennai International Terminal Private
Limited (CITPL), at Dr. Ambedkar Dock has a quay length of 832 m with 15.5 m depth alongside. 218 218
Chennai Port Trust. , Accessed on 29-June-2014 149 Figure 4.8 Chennai International Terminal Private
Limited (CITPL), Chennai Port Trust Source: Field Visit The performance indicators of CITPL from 2009-10
to 2012-13 are presented in the Appendix VI. These indicators include moves per crane hour, moves per
berth hour, TEU per metre quay, TEU per employee, Dwell time per day and Turnaround time per day. In
March 2007, CITPL entered into a 30 year Build-Operate-Transfer (BOT) license agreement with Chennai
Port Trust (ChPT) to design, develop, finance, operate and market the second container terminal at the
port. As per the agreement, CITPL is required to share 45.80 per cent of its gross revenues with ChPT
during the license period. Commercial operations at the terminal commenced in September 2009. In
June 2010, Sical sold its 27 per cent stake in CITPL to PSA, thereby making CITPL a 100 per cent
subsidiary of PSA.219 219 < www.citpl.co.in> Accessed on 12-July-2014 150 Table 4.9 Facilities at the
Second Container Terminal at Dr. Ambedkar Dock in Chennai Port Trust Facilities Features Chennai
International Terminal Pvt. Ltd. Quay length of 832 m and a depth of 15.5m. Total capacity of the
terminal 1.5 million TEUs. Ground Slots 5424 Area of the terminal 35 hectares (ha). Cargo handling
equipment 304 reefer points, 7 Rail Mounted Quay Cranes (RMQC), 18 Rubber Tyred Gantry Cranes
(RTGC) and 6 Reach Stackers. Twin line with 45 flats each. Source: Chennai International Terminal
Private Limited (CITPL), 2014 Jawahar Dock The Jawahar Dock at Chennai Port handles mainly dry bulk
cargo. Figure 4.9 Jawahar Dock in Chennai Port Trust Source: Chennai Port Trust (2012) 151 The coal
terminal that has dedicated berths with a semi-mechanized coal conveyor system that was
commissioned in November 2009 with a capacity of 15 million tonnes per annum has been idle since
October 2011, following a ban by the Madras High Court on 11th May 2011, on export of iron-ore and
shifting of coal despatches to Ennore Port. The Mission and Vision of Chennai Port Trust The mission of
Chennai Port is to achieve excellence in port operations with state-of-the-art technologies; enhance
competence and motivate the workforce to maximize customer satisfaction; anticipate and adapt to the
changing global scenario; and act as a catalyst for sustained development of the region. The vision of the
port is to be recognized as a futuristic port with foresight. 220 Land Management Policy of Chennai Port
Trust A land use plan has been drawn by Chennai Port Trust in accordance with the directives of the
Land Management Policy Guidelines issued by the Ministry of Shipping, GOI in 2014. The Land Use Plan
consists of the guidelines which project the manner of licensing /lease of the land, building and the
waterfront area available in Chennai Port. Unlike other Major Ports, the land resource in Chennai Port is
very limited. The port has been facing difficulties in developing infrastructure due to its location.
Proximity to Defence establishments, archaeological and heritage structures such as Fort St George, the
Madras high court and residential neighborhoods is a hurdle. As the city has already developed, the Port
is restricted to the land available and no further area can be acquired. The objectives of the Land Use
Plan of the Port are to utilize land resources optimally for Port related activities with an aim to increase
the throughput of Chennai Port Trust; achieve excellence in Port operations with state-of-the-art
technologies and high level of automation; 220 , [Accessed on 27-May-2013]. 152 develop as a clean and
green Port; and de-congest the Port and enable efficient, smooth and safe movement of men and cargo
to and from the Port.221 The new Land Policy Management Guidelines, issued by the Ministry of
Shipping, Government of India, in January 2014, allows longer lease periods for public and private
institutions on port land. Chennai Port Trust expects a lot of investment to be made on container-
handling, infrastructure and tourism projects on more than 200 acres of land within and outside the
port. Of a total of 600 acres, the port has around 300 acres of land along the shoreline. The new policy
will thus help the port utilize the vacant land at the port. Categorization of the Land The total area of
Chennai Port Trust is divided into the Inner Harbour Area and the Outer Harbour Area. The water spread
area is 220 acres and land area is 441 acres in the Inner Harbour and 200 acres and 145.96 acres
respectively in the Outer Harbour. The sprawling storage area is classified as land inside the Customs
Bound and land outside the Customs Bound Area. The storage area is well connected with the road and
rail network. Bharathi Dock Three berths BD1, BD2 & BD3 (Bharathi Dock 1, 2 and 3) of length 355.65
metres, 307.50 metres and 382.00 metres each serve as the oil and the Iron Ore terminal at Chennai
Port. BD1 & BD3 handle the entire crude and white oil for CPCL (Chennai Petroleum Corporation
Limited) and POL (Petroleum Oil Lubricants) products for all major companies. In BD-2, semi-mechanized
ore handling plants exist to handle Iron Ore. Four container berths in this dock namely, CTB-1, CTB-2,
CTB-3 & CTB-4 (Container Terminal Berth 1, 2 3 and 4) are being operated by the private container
terminal operator Chennai Container Terminal 221 Chennai Port Trust, Draft Land Use Plan, Land
Management Policy, pp.2-3 153 Private Ltd. The quay length of the four berths of 885m (metres)
happens to make it the India’s longest container quay.222 Dr. Ambedkar Dock Eleven berths exist in this
dock. Four berths in the West Quay, one berth in the Centre and North Quay each and two berths in the
South Quay comprise the eight berths operated by the Port Trust in the dock. The Cars, Passenger cum
Cruise, Steel, Break Bulk and Project cargo are handled at these berths. Three berths namely, SCB-1,
SCB-2 & SCB-3 with a draft of 15.5 metres and 832 metres long quay are operated by the private
container terminal, Chennai International Terminal Private Ltd. These berths are equipped to handle
Post-Panamax Vessels. Jawahar Dock Six Berths, JD 1 to 6 with a draft of 11 metres in the dock were
dedicated to handling Iron Ore and Coal. Subsequent to the stoppage of dusty cargo handling in the Port
of Chennai, commodities like fertilizers, limestone, dolomite, wooden logs, project cargo, agricultural
products and dry bulk cargoes are handled in the dock. Rail Network Chennai Port Trust has a track
length of around 41 Km. 7.69 mt of cargo are transported through rail beside a container siding run by
CONCOR. At Bharathi Dock Railway, a common user facility has been made and Sical Sattva Rail Terminal
Pvt Ltd., started their container train operations from 2012. The Private Container terminal operator,
Arshiya and Hind Terminals have also been permitted to operate a container train in Chennai Port Trust.
To augment future rail-borne traffic, two additional lines from Royapuram to Chennai Beach, have been
proposed. The Major Port of Chennai is essentially run as a ‘Trust’, with the Port Management which is
the Port Trust of Chennai acting as the port authority, as well as the port 222 Chennai Port Trust, Draft
Land Use Plan, p.5 154 operator. Chennai Port Trust presently follows a hybrid format of the public
service port model and the landlord model of port management followed globally. Chennai Port Trust
(ChPT) signed a concession agreement on 9th August 2001, on a BOT basis with M/s. Chennai Container
Terminal Private Limited, for a period of 30 years for the private operation of the Port’s first container
terminal that was built in 1983. DP world took over and commenced operations on November 30th,
2001. As per the concessional agreement, CCTPL is required to pay 37.128 per cent of its gross monthly
income to the Trust besides payment of the vessel related charges such as pilotage, Port Dues, etc. The
Second Container Terminal – CITPL at Chennai Port Trust was awarded to PSA SICAL on a BOT basis for
30 years to augment container operations. In March 2007, CITPL entered into a 30 year BOT license
agreement with Chennai Port to design, develop, finance, operate and market the second container
terminal at the port. As per the agreement, CITPL is required to share 45.8 per cent of its gross revenues
with Chennai Port during the license period.223 The Organizational Structure of Chennai Port Trust The
Organizational structure of Chennai Port Trust is presented through the Organizational Chart depicting
the hierarchy of the Organization, and the different departments are given in Figure 4.10. 223 Chennai
Port Trust, Draft Land Use Plan, p.9 155 Figure 4.10 Organizational Structure of Chennai Port Trust
Source: Chennai Port Trust (2014) The Chairman of the Port Trust is assisted by the Deputy Chairman
and a Chief Vigilance Officer. The heads of the departments of Civil and Mechanical Engineering, Marine,
Traffic, Finance, General Administration, Stores and Medical departments together constitute the
organizational structure of the Port Trust and perform the functions of their respective departments.224
The focus of this study is too analyse the management of the port of Chennai and thus it is essential to
describe the organisational structure and the functions of the different departments so that the manner
of working and management of the port trust of Chennai is brought out. Board of Trustees The Major
Port Trusts Act, 1963 (Act 38 of 1963) was enacted to make provisions for the constitution of Port
authorities and for matters connected therewith and to vest the administration, control and
management of ports in such authorities. The Act governs the administration of Chennai Port Trust with
effect 224 Accessed on 26-December-2014 156 from February 1, 1975. The affairs of the Port Trust are
under the supervision and control of a Board of Trustees consisting of a Chairman and Deputy Chairman
who are appointed by the Union Government and not more than19 members in the case of Chennai
Port Trust. The Board of Trustees is reconstituted by the Government every two years. The Chennai Port
Trust Board of Trustees constituted for the period 2014-2016 includes members representing Ex-Officio
interests such as the Ministry of Shipping, Customs, and the State government, the Defence Services,
Indian Railways, Coast Guard and Mercantile Marine Department. The Board also has two labour
representatives, five elected nominees from chambers of commerce and other associations including
the Indian Maritime University and five other nominated members.225 The Board of Trustees
constituted under the Major Port Trusts Act, 1963 is a body corporate having perpetual succession and a
common seal with power subject to the provisions of the act. The board may acquire, hold or dispose of
property and may sue or be sued. The Chairman and the Deputy Chairman of the Board hold office
during the pleasure of the Union Government. The trustees, unless disqualified under section 6 of the
Major Port Trusts Act, 1963, are eligible for reappointment or re-election. A trustee could be disqualified
if he has been convicted and sentenced to imprisonment for an offence involving moral turpitude; is an
undischarged insolvent, or holds any office of profit under the Board. The Union Government has the
power to extend the time for election or appoint trustees in default of election. If the Chairman or the
Deputy Chairman of the trust either by leave or by infirmity or deputation is incapable of carrying out his
duties, the Union Government may appoint another person to act in his place during his absence.226
The meetings of the Board are held for the transaction of business of the port under the rules of the
Major Port Trusts Act, 1963. The Chairman or the Deputy Chairman, and in the absence of both, any
person chosen by the trustees present from among themselves, presides at the meetings and all
questions are decided by 225 < www.chennaiport.gov.in/RTI/newtrustees2014-16.pdf> Accessed on 20-
April-2015 226 The Major Port Trusts Act, 1963 p.14 157 the majority of votes of the trustees present
and voting and in the case of an equality of votes, the presiding trustee has a casting vote. A minimum
of five trustees needs to be present at all meetings of the board. In the transaction of the business of the
port, the Board constitutes from amongst the trustees, Committees for the purpose of discharging
functions related to port activities. The Board also prepares and sanctions a Schedule of the employees
of the Board and indicates therein, the designations and grades and the salaries, fees and allowances
which are proposed to be paid to them. The Board also has the power to appoint a consulting engineer
on the basis of payment of monthly salary (but subject to sanction from the Union Government); the
power to create posts; and power to make regulations.227 Powers of the Board of Trustees The main
powers of the Board are detailed in Art. 42(1) of the Major Port Trusts Act, 1963 and inter alia include
execution of ‘works’ within or without the limits of the port and provide such appliances as it may deem
necessary or expedient. Such works may include or relate to reclamation of land, quays, docks, jetties,
piers, roads, railways, bridges, buildings (including residential buildings), rolling stock, cranes,
lighthouses, vessels, engines, dry-docks, etc; erection of private wharfs within the port area;
performance of port and terminal services, such as stevedoring, handling of passengers, delivery,
transport and dispatch of goods, pilotage, towage, etc; and delivery and provision of infrastructure for
ports. The Board can also acquire immovable property in accordance with the provisions of Land
Acquisition Act, 1894 and shall be required to pay compensation for the land acquired. The Board can
also enter into and perform any contract necessary for the performance of port functions.228 The Board
of Trustees has the powers to execute works within and outside the limits of the port such as wharves,
quays, docks, stages, jetties, piers or port 227 The Major Port Trusts Act, 1963, p.16 228 The Major Port
Trusts Act, 1963, p.20 158 approaches with all such convenient landing places, fences, roads and
buildings as may be required; warehouses, sheds and other accommodations for passengers and goods
and for conveying, receiving and storing the goods landed or to be shipped; moorings and cranes and all
other equipment for loading and unloading the vessels; breakwaters and other works for the protection
of the port; dredgers and other machines for cleaning, deepening and improving any portion of the port
or port approaches; lighthouses, light vessels, buoys and other appliances necessary for safe navigation
within the port or port approaches; and all other works as the Board may deem necessary to be
provided at the port. The Board has the power to provide sufficient number of public landing places
where the public shall be permitted to embark or land free of charge and occupy any bathing ghat
within the port. The power to order seagoing vessels to use docks, wharves, piers, etc. erected at the
port or its approaches is also vested with the Board. The Board is responsible to set apart and maintain
accommodation to be provided for customs officers appointed at the port premises.229 The Scale of
Rates The Tariff Authority for Major Ports, (TAMP) by notification in the Official Gazette frames the
scales of rates for services performed by the Board, in relation to the port or port approaches including
transhipping of passengers or goods between vessels in the port or its approaches; landing or shipping
of passengers or goods within the limits of the port or its approaches; cranage or porterage of goods;
wharfage, storage or demurrage of goods; and any other services in respect of vessels, passengers or
goods. TAMP also frames a scale of rates and statement of conditions for the use of any property
belonging to the Board within the limits of the port or port approaches. In addition, TAMP also fixes the
fees that may be charged for pilotage, hauling, mooring and other services rendered to vessels. The
fixation of port dues and consolidated rates for the combination of services is also fixed by 229 The
Major Port Trusts Act, 1963, p.24 159 TAMP. The Union Government has the power to cancel or modify
any of the scales prescribed by TAMP with a statement of reasons. 230 TAMP has the power to levy
concessional rates in respect of coastal goods as defined in the Customs Act, 1962 and other goods in
special cases. The Union Government has the power to require modification or cancellation of the rates
as and when considered necessary. For the amount of all rates leviable in respect of any goods and for
the rent due to the Board for any buildings, stacking areas or other premises in which any goods may
have been placed, the Board shall have a lien on the goods until the dues have been fully paid. In respect
of charges that are due by the ship owner for freight or other charges to the Board, the Board shall have
a lien on the goods until the dues are paid. The goods shall be retained by the Board until the lien is
discharged. If the rates and penalties payable under the Major Port Trusts Act, 1963 are not paid or
neglected, the Board may arrest such vessels and its equipment and cargo and shall detain the same
until the amount due is paid.231 Borrowing powers of the Board The Board has the power to raise loans
with the previous sanction of the Union Government for port activities either in the open market on
port trust securities issued by it or obtained from the Union or State government. In respect of loans
raised by the Board, a sinking fund is established and the sums forming part of the fund are invested in
public securities or other securities approved by the Union Government. The Board sets apart half-
yearly out of its income as the sinking fund, a sum sufficient to liquidate the loan within a period not
exceeding thirty years and a maximum period not exceeding sixty years. The Board also has the powers
to raise short-term bills under the Local Authorities Loans Act, 1914, and also temporary loans or
overdrafts by pledging the securities held by it in its reserve funds or the fixed deposits of the Board in
its banks. The Board may also raise loans with the 230 See Major Port Trusts Act 1963, p.27-28 231 The
Major Port Trusts Act, 1963, pp.28-32 160 previous sanction of the Union Government from the
International Bank for Reconstruction and Development (IBRD) or other foreign institutions. 232
Revenue and Expenditure A separate general account is created under the port trust for recording all
port related revenue and expenditure transactions and also the reserve funds for the purpose of
expanding the existing facilities or creating new facilities at the port. An independent annual statement
of accounts including the balance sheet is submitted to the Union Government and is subject to the
scrutiny of the CAG of India. The CAG, after audit and examination of the accounts of the Board,
forwards the copies of the audit report to the Union Government and the Board of Trustees. It is the
responsibility of the Board to remedy the defects and irregularities pointed out in the audit findings and
send the report of action taken, to the Union Government.233 Supervision and Control of the Union
Government The Board also needs to submit to the Union Government a detailed report of the
administration of the port at the end of the financial year, including statements of income and
expenditure. The Union Government may at any time, order a survey or examination of works of the
Board for which the costs shall be borne by the Board from the general account of the port. The Union
Government has further powers to restore or complete port works and the cost of any restoration,
completion, construction or repairs shall be paid by the Board. Penalties have been imposed under the
Major Port Trusts Act, 1963 for contraventions under sections 37, 38, 40 and 41 of the Act; for setting up
wharves, quays, etc. without permission; for evading payment of rates due in respect of any goods or
vessels carrying goods to the Board and other offences. If the Union Government is of the opinion that
the Board is unable to perform its duties under the provisions of the Major Port Trusts Act, 1963, on 232
The Major Port Trusts Act, 1963, pp.33-38 233 The Major Port Trusts Act, 1963, pp.38-43 161 account of
grave emergency or default in the performance, it may supersede the Board for a period not exceeding
six months at a time. The Board in its discharge of functions is bound by the directions of the Union
Government on questions of policy. Chairman of the Port and the Departments of Chennai Port Trust
The Chairman of the Port is a full-time officer appointed by the Government of India. He exercises
supervision and control over the acts of all employees of the Trust in matters of executive
administration including those concerning the maintenance of accounts and records of the Board in
accordance with the provisions of Section 22 of the Act.234 The Deputy Chairman of the Port is the
Deputy Chief Executive of the Organization and assists the Chairman in all aspects of the Port’s
functioning. He exercises administrative and financial powers and supervises the functioning of the
various departments. General Administration Department of Chennai Port Trust The Head of the
General Administration Department is the Secretary. Figure 4.11 depicts the organizational set up of the
General Administration Department. The main functions of the General Administration Department are
the recruitment and induction of new employees and promotions; development of human resources
and training; maintenance of industrial relations, and establishment matters, rules, regulations and
procedures. The department also offers secretarial assistance to top management and ensures prompt
and proper disposal of all communications addressed to the Chairman and the Deputy Chairman from
the Government, outside parties, or Heads of Departments, after obtaining the orders of the Chairman
and the Deputy Chairman wherever necessary. The department also oversees the implementation and
promotion of the official National language Hindi. 234 The Major Port Trusts Act, 1963,
http://shipping.nic.in/writereaddata/l892s/53177698-
The%20MPT%20Act%201963%20%2838%20of%201963%29.pdf, p.16, Accessed on 26-05-2013 162
Figure 4.11 The Organizational Chart of the General Administration Department of Chennai Port Trust
Source: Chennai Port Trust (2013) The abbreviations depicting the organizational structure of the
General Administration Department are as follows: H.O: Hindi officer; D.S.: Deputy Secretary; Sr. A.S:
Senior Assistant Secretary; A.S. Gr. I: Assistant Secretary Grade I; L.O. Gr. I: Law Officer Grade I.; P.O:
Personnel Officer; LWO: Labour Welfare Officer; Sr. W.O.: Senior Welfare Officer, P.A.s: Personal
Assistants; A.L.W.O.: Assistant Labour Welfare Officer; W.O: Welfare Officer; A.A: Administrative
Assistant; A.P.O Gr. II: Assistant Personnel Officer Grade II; C.D: Course Developer; CI: Course Instructor;
A.V.S: Audio Visual Specialist; A.W.O Gr. II: Assistant Welfare Officer Grade II; A.S. Gr. II: Assistant
Secretary Grade II. The General Administration Department is also responsible for dealing with legal
matters, public relations, maintenance of the guest house and the library and 163 publication of the in-
house Journal. Moreover, the General Administration Department is in charge of the Trust’s telephones
and cell phones and their maintenance. The allotment of quarters and welfare measures of the
employees of the Port Trust is also taken care of by the Department. It maintains the matters of the
Board of Trustees including allocations to the Budget, preparation and finalization of the Agenda of the
Board in consultation with the Deputy Chairman and the Chairman and the circulation of the Agenda to
the Board of Trustees before the meetings of the Board. The department also arranges for the conduct
of the Board Meeting and prepares and confirms the Minutes of the meeting with the Deputy Chairman
and Chairman. It finally summarizes the follow up action taken on the resolutions or decisions taken in
the Board meeting. Civil Engineering Department of Chennai Port Trust The Civil Engineering
department is responsible for the overall planning, construction, maintenance and upgrade of all civil
infrastructure facilities including berths, wharf accessories and warehouses for development works. The
Civil Engineering department oversees the cleaning of port roads for transportation of cargo and capital
and maintenance dredging alongside berths, basins and channels after necessary hydrographic surveys.
The department oversees the registration and removal of civil contractors and is responsible for work
proposals and execution of works as per the instructions of the Chairman or Deputy Chairman of the
Port. The responsibilities of the department include taking policy decisions and strategizing for good
governance as well as improving the performance of the department. Appointing and taking disciplinary
action in respect of Class III and Class IV Employees are also part of the Civil Engineering department’s
role. The Organizational Chart of the Civil Engineering Department of Chennai Port Trust is presented in
Figure 4.12. 164 Figure 4.12 The Organizational Chart of the Civil Engineering Department of Chennai
Port Trust Source: Chennai Port Trust (2013) The abbreviations depicting the organizational structure of
the Civil Engineering Department are as follows: Dy. C.E. (M) I/II/III: Deputy Chief Engineer
(Maintenance) I/II/III; Dy. C.E. (P)I/II: Deputy Chief Engineer (Project) I/II; Dy. C.E. (MDO): Deputy Chief
Engineer (Maintenance and Drawing Office); Dy. C.E. (P&D): Deputy Chief Engineer (Planning and
Designing); Dy. C.E. (FH): Deputy Chief Engineer (Fishing Harbour); Dy. C.E. (MP): Deputy Chief Engineer
(Mega Projects); EX (C): Executive Engineer (Civil)-Maintenance-A/B/D/F/G/Housing Colony; Ex (C)P:
Executive Engineer (Civil)-Project-1/2/3/4/5/6; Ex (MS): Marine Survey; Ex (MDO): Executive Engineer
(Maintenance and Drawing Office); Ex (LBS): Executive engineer (Lands & Buildings); Ex (H): Executive
engineer 165 (Horticulturist); Manager (FH): Manager-Fishing Harbour Management Committee; Ex
(MP): Executive engineer(Mega Project); Sr. A.O. (E): Senior Administrative Officer (Establishment); Sr.
A.O. (E): Senior Administrative Officer (Establishment); AO (A&L): Administrative Officer (Artisan &
Labour); A.O. (MDO): Administrative Officer (Maintenance & Drawing Office); Jr. A.O. (P): Junior
Administrative Officer (Projects). Mechanical and Electrical Engineering Department of Chennai Port
Trust The Mechanical and Electrical Engineering Department is in charge of all technical and
administrative activities related to planning for the procurement of Equipment for Plan and Non-Plan
schemes and the operation and maintenance of the plant and equipment and machinery of the
department. This department is headed by the Chief Mechanical Engineer who is supported by six
Deputy Chief Mechanical Engineers responsible for Electric cranes and Off-shore cranes (EC & OS);
Research and Development (R&D); Works (W); Electric supply and cargo handling (ES& CH); Ore
handling (OH) and Operations (OP). The Deputy Chief Mechanical Engineers are assisted by eight
Superintending Engineers. These SEs include Superintending Engineer (Electrical) Thondiarpet Housing
Colony and Fisheries Harbour; Superintending Engineer (Mechanical) for Research and Development;
Superintending Engineer (Mechanical) Works; Superintending Engineer (Electrical), Electric Supply and
Cargo Handling; Superintending Engineer (Mechanical), General; Superintending Engineer (Mechanical)
Ore Handling; Superintending Engineer (Electrical) Ore Handling and Superintending Engineer
(Mechanical) for Operations. The Superintending Engineers are in turn assisted by Executive Engineers
responsible for Thondiarpet Housing Colony and Fisheries Harbour; Research and Development; Electric
Supply; Cargo Handling; Ore Handling (Railways); Ore Handling (Shipping); Oil Dock; Operations and
Electric Cranes. The support staff of the department include a Senior Administrative Officer,
Administrative Officers- Works and Operations and Junior Administrative Officers in charge of
establishment and operations and a Safety Officer. There is also a Materials Management Division which
is headed by 166 the Controller of Stores and assisted by a Materials Manager, two Senior Deputy
Materials Managers, three Deputy Material Managers and three Assistant Materials Managers. The
Organizational Chart of the Mechanical and Electrical Engineering Department of Chennai Port Trust is
presented in Figure 4.13. Figure 4.13 The Organizational Chart of the Mechanical and Electrical
Engineering Department of Chennai Port Trust Source: Chennai Port Trust (2013) The abbreviations used
in Figure 4.13 are as follows. (CME) - Chief Mechanical Engineer; (Dy. CME) - Deputy Chief Mechanical
Engineers; (EC & OS) - Electric cranes and Offshore cranes; (R&D) - Research and Development; (ES& CH)
- Electric supply and cargo handling; (W) - Works; (OH) - Ore handling; (OP) – Operations; (SE) -
Superintending Engineers; (Ex E) – 167 Executive Engineers; (E) - (Electrical); (THC and FH) - Thondiarpet
Housing Colony and Fisheries Harbour; (M) – Mechanical; (OO) – Office of; R & D - Research and
Development; (W) - Works; (EC & CH) - Electric Cranes and Cargo Handling; (G) – General; (OD) – Oil
Dock; (O) – Operations; (SAO) – Senior Administrative Officer; (AO) – Administrative Officer; (WO) –
Works and Operations; (JAO) – Junior Administrative Officer; PA – Personal Assistant; (COS) – Controller
of Stores; (MM) – Materials Manager; (Sr. Dy.MM) - Senior Deputy Materials Managers; (AMM) -
Assistant Materials Managers. The department is responsible for providing infrastructural facilities such
as bunkering, power supply, water supply and operation and maintenance of cargo handling equipment.
The department is also in charge of the Basic Training Centre and is referred to as Occupier of the
Factory as it sees to all the safety aspects as per the Factories Act, 1948 later amended by the Factories
(Amendment) Act, 1987. Marine Department of Chennai Port Trust The main functions of the Marine
Department include classifying IMO (International Maritime Organization) dangerous goods; ensuring
efficient management of all marine port operations; and conducting statutory preliminary enquiries on
shipping causalities, as and when required, under the Merchant Shipping Act, 1956. The Fire and Safety
Organization at Chennai Port is under the overall control of the Deputy Conservator who is also
designated as the Port Safety Officer. A Professional Fire Officer assists the Deputy Conservator in so far
as the day to day working of the Port Fire Service is concerned. He is also the Assistant Safety Officer for
the Port and looks after the enforcement of Safety Regulations on behalf of the Deputy Conservator
through Safety Inspectors. The Fire Officer is assisted by two Assistant Fire Officers, Safety Inspectors
and Sub Officers. The Port premises has been provided with First Aid firefighting maintained by the port
fire service personnel. 168 The Organizational Chart of the Marine Department of Chennai Port Trust is
presented in Figure 4.14. Figure 4.14 The Organizational Chart of the Marine Department of Chennai
Port Trust Source: Chennai Port Trust (2013) The abbreviations used in Figure 4.14 depicting the
organizational structure of the Marine Department are as follows. SME: Senior Marine Engineer; DS:
Dredging Superintendent; CE Marine (Vessel): Chief Engineer Marine Vessel; S.S.O.: Signal Station
Officer; FO & ASO: Fire Officer and Assistant Safety Officer. The Fire and Safety Organization at Chennai
Port is under the overall control of the Deputy Conservator, who is also designated as the Port Safety
Officer. A Professional Fire Officer assists the Deputy Conservator in so far as the day to day working of
the Port Fire Service is concerned. 169 Finance Department of Chennai Port Trust The Finance or
Accounts Department ensures the collection and assessment of all revenues collected by the Revenue
branch of the Accounts Department as per the Scale of Rates approved by TAMP. The Organizational
Chart of the Finance Department of Chennai Port Trust is Figure 4.15. Figure 4.15 The Organizational
Chart of the Finance Department of Chennai Port Trust Source: Chennai Port Trust (2013) The
abbreviations depicted in Figure 4.15 are as follows: Sr. Dy. C.A.O. (IA): Senior Deputy Chief Accounts
Officer (Internal Audit); Sr. Dy. C.A.O. (E & R): Senior Deputy Chief Accounts Officer (Establishment &
Revenue); Sr. Dy. Dir (EDP): Senior Deputy Director (Electronic Data Processing); 170 Asst. Dir. (EDP):
Assistant Director (Electronic Data Processing); D.P.O: Data Processing Officer; A.O. (Estt.): Accounts
Officer (Establishment); A.O. (IA): Accounts Officer (Internal Audit); A.O. (MFA): Accounts Officer
(Marine Fund Audit); A.O. (OE): Accounts Officer (Officer Establishment); A.O. (T & M): Accounts Officer
(Traffic & Marine); A.O. (GA, MED & VIG): Accounts Officer (General Administration, Medical and
Vigilance); A.O. (SV): Accounts Officer (Stock Verification); A.O. (CDN): Accounts Officer (Co-ordination);
A.O. (PR/CHD): Accounts Officer (Piece Rate/ Cargo Handling Division); A.O. (HBA): Accounts Officer
(House Building Advance); A.O. (G): Accounts Officer (General). The Principal duties of the Finance
Department include preparing the budget estimates of the receipts and expenditure of the several funds
administered by the Trust in the prescribed form from the information furnished by other heads of
Departments of the Trust. The Finance Department must also see to it that necessary arrangements are
made for payments on due dates of sums due on account of interest, principal and sinking funds in
respect of loans raised by the Board and that cash balances at credit of the various funds of the Board
are invested in a manner most advantageous to the Board. The EDP division of the port trust has a
payroll module with a Payroll Unit Section containing financial records of the salary, bonuses and
deductions paid to the employees of the port every month. The Stores’ Inventory Module developed by
an external EDP vendor maintains applications including Purchase Enquiry, Vendor, Supplier, Item
master, Stores Master and Stores Ledger. For consumption of Stores, the automatic voucher is
generated through the Port Community System. The Stores inventory module also has an interface with
the Finance Module. The EDP division also maintains the Chennai Port website and provides updates on
information including the Daily Vessels Position Report, Daily Expected Vessels Report, and Vessel
Position Report. Chennai Port is in the process of revamping its existing IT setup including the Hardware
and Data Centre. The Port is looking to develop platforms for software development, Networking, IT
security, Data Security and Disaster Recovery. The Port proposes to implement an ERP System for Vessel
Management, Cargo Management, Stevedoring and Billing 171 Operations for the Port. The National
Informatics Centre, India plans to develop a web-enabled Port Operations Management System (POMS)
for major Indian Ports, and Chennai Port would like to integrate the POMS module with the proposed
ERP system. Traffic Department of Chennai Port Trust The Traffic Department is responsible for decision-
making regarding day-today port operations such as berthing of vessels, cargo handling, storage of
cargo, ship operations, etc. The other main functions of the department are furnishing the available Port
facilities to Port Users and offering information regarding services offered by the port to the vessels;
conducting trade meetings and exhibitions, road shows and printing the Port Brochure for marketing the
port’s services and publicizing the record performances and feats of the Port by preparing press notes
on important Port events; arranging for and coordinating meetings with Shippers Associations and
Chambers of Commerce and gathering and analyzing user feedback and presenting it to the
Management and redressing Port Users’ grievances. The Head of the Department is the Traffic Manager
who is supported by a Senior Deputy Traffic Manager (Operations/Commercial). The Senior Deputy
Traffic Manager (Operations/Commercial) is assisted by five Deputy Traffic Managers responsible for
Lands and Buildings, Railways, Commercial, Operations and Marketing/Computer Cell/Pass Section
respectively. The Deputy Traffic Managers are assisted by two Senior Assistant Traffic Managers
responsible for Shipping Control and Porterage respectively and also Assistant Traffic Managers, Senior
and Junior Administrative Officers and a Dock Labour Officer. The Traffic Department also has a Planning
and Research Division which is headed by a Senior Deputy Director (Research) who is supported by a
Deputy Director (Research), an Assistant Director (Research) and Research Officers. The Organizational
Chart of the Traffic Department of Chennai Port Trust is presented in Figure 4.16. 172 Figure 4.16 The
Organizational Chart of the Traffic Department of Chennai Port Trust Source: Chennai Port Trust (2013)
The abbreviations used in Figure 4.16 are as follows: Sr. Dy. Traffic Manager (OP/C): Senior Deputy
Traffic Manager (Operations/ Commercial); Dy. Traffic Manager (L & B/R/C/OP/Mktg./C Cell/P.S.):
Deputy Traffic Manager (Lands & Buildings, Railway, Commercial/Operations/ Marketing/Computer
Cell/Pass Section); Sr. Dy. Dir (Research): Senior Deputy Director (Research); Sr. A.T.M.(III sec/S.Cont/P):
Senior Assistant Traffic Manager ( III Sector/ Shipping Control, Porterage); Dy. Dir (Research): Deputy
Director (Research); Sr. A.O. (CHD): Senior Administrative Officer (Cargo Handling Division); A.T.M.
(BD/MY/S. Cont./I,II,III & IV): Assistant Traffic Manager (Bharathi Dock/ Marshalling Yard/ Shipping
Control/Area I,II,III & IV); S.O: Safety Officer (Cargo and Gear); Asst. Dir (Research): Assistant Director
(Research); A.O. (CHD): Administrative Officer (Cargo Handling Division); P.O.: Personnel Officer; Jr. A.O.:
Junior Administrative Officer; D.L.O: Dock Labour Officer. 173 The traffic department is also responsible
for following and analyzing the performance and cargo movement of neighboring ports- both major and
non-major as well as monitoring relevant Port reports in the media in a bid to stay competitive;
identifying potential/new users and appraising them of the facilities available at the port and conducting
Market Surveys in order to project the demand and supply for different types of commodities; being
responsible for container operations such as stuffing and destuffing of cargo and container movements
inside and outside the port at the Container Freight Stations; issuing certificates for shortage of cargo as
well as cargo that is lost or destroyed and ensuring that the abandoned and not cleared cargoes are sent
to auction sales; being in charge of shipping operations and cargo movements and ensuring proper
utilization of equipment deployed for vessel operations; managing lands and buildings within the
customs bonded area; minimizing delays during cargo loading and unloading operations to achieve the
productivity targets and monitoring the stacking, accounting and delivery of cargo; and reporting on
damage or destruction of cargo/vessels and ensuring the recovery of the cost of damages and recovery
of all charges rendered by the trust to the vessels and port users. Medical Department of Chennai Port
Trust The Medical Department of Chennai Port delivers Medicare to its employees and their families and
retired employees and their spouses as well. The major functions of the Medical Department include
providing healthcare to the employees of the Port and their families; preparing and revising the annual
budget estimates of the Department; procuring medical and surgical stores; preparing plan and non-
plan proposals for hospital buildings and equipment and presenting them to the Chairman of the Port;
conducting periodical progress and review meetings of the Department; filling up vacant posts in the
Department through recruitment/promotion in accordance with the rules and regulations in force; and
tendering and award of diet, laundry and bio-medical waste disposal contracts. 174 The Organizational
Chart of the Medical Department of Chennai Port Trust is presented in Figure 4.17. Figure 4.17 The
Organizational Chart of the Medical Department of Chennai Port Trust Source: Chennai Port Trust (2013)
The abbreviations used to depict the organizational chart of the Medical Department are as follows:
Matron (H) & (DSC) – H- Housing Colony. DSC – Diabetic Specialty Centre. P.A. to C.M.O. – Personal
Assistant to Chief Medical Officer. GD – General Duty. In order to maintain high standards in healthcare,
constant evaluation and updating of equipment is done by the Medical Department. The Chennai Port
Trust Main Hospital has inpatient facilities and can accommodate 185 persons. There are also two out-
patient blocks at Thondiarpet Housing Colony and the Diabetic Specialty Centre. The Head of the
Medical Department is the Chief Medical Officer, who is supported by Senior Deputy Chief Medical
Officers, Deputy Chief Medical 175 Officers, Senior Medical Officers, Administrative and Junior
Administrative Officers and other subordinate staff. Stores Department of Chennai Port Trust The main
functions of the Stores Department are meeting the requirement of various departments of the Port in
the matter of purchase of materials except special plant and equipment, materials required for
construction works and medicines required by the Trust and procuring, clearing, receiving, inspecting,
storage and issue of materials and arranging disposal through sales (or) otherwise of surplus and
unserviceable stores including condemned plant and machinery. The organizational chart of the Stores
Department of Chennai Port Trust is presented in Figure 4.18. Figure 4.18 The Organizational Chart of
the Stores Department of Chennai Port Trust Source: Chennai Port Trust (2013) The abbreviations used
in Figure 4.18 are as follows: Dy. COS – Deputy Controller of Stores; ACOS - Assistant Controller of
Stores; O.S – Office Superintendent; Sr. S.S.- Senior Stores Supervisor; S.S. – 176 Stores Supervisor;
Stores Asst. GR I/GR II – Stores Assistant Grade I or II; A&L – Assets and Liabilities. The Head of the
Department is the Controller of Stores who is assisted by officers such as the Deputy Controller of Stores
(Dy. COS), Assistant Controller of Stores (ACOS), Office Superintendent (O.S), Senior Stores Supervisor
(Sr. SS), Stores Supervisor (SS), Stores Assistants (responsible for assets and liabilities accounting A&L)
and other subordinate staff. Vigilance Department The primary responsibility of the Vigilance
Department is the maintenance of integrity and efficiency in the Port. The Organizational Chart of the
Vigilance Department of Chennai Port Trust is presented in Figure 4.19. Figure 4.19 The Organizational
Chart of the Vigilance Department of Chennai Port Trust Source: Chennai Port Trust (2013) Note: PA to
CVO – Personal Assistant to Chief Vigilance Officer. The department also oversees the conduct of regular
and surprise inspections of sensitive spots and reviews and streamlines procedures that appear to afford
scope for misconduct. The department is also in charge of initiating measures for checking 177
malpractices in the Port. The Vigilance Department serves as a link between the Ministry of Shipping and
the Central Vigilance Commission. The Head of the Department is the Chief Vigilance Officer, who is
supported by a Deputy Chief Vigilance Officer, an Assistant Vigilance Officer and subordinate staff.
Personnel Policy of the Chennai Port Trust The personnel policies of the Port Trust of Chennai with
regard to remuneration and allowances, provident fund, retirement and labour welfare measures
provided to the employees of the port trust are described in the following section. The Recruitment and
promotion policies of the Port Trust are discussed in Chapter V of the thesis. Remuneration and
Allowances The remuneration package inclusive of pay structure, service conditions and allowances for
all categories of personnel at the port of Chennai is decided and implemented by the Bipartite Wage
Negotiation Committee set up by the Government with equal representation of workers and employers.
The Pay Structure of Class I and II Officers and Class III and IV employees is related to the All India
Consumer Price Index (2884 base 1960-100) (AICPI) as well as the All India Consumer Price Index
Number 126 for Industrial Workers. The Allowances and other additions to pay include a dearness
allowances in which the All India Consumer Price Index Number for Industrial Workers (General) based
on 1960-100 (AICPI) series is used for grant of compensation (in effect from 01.01.2007) to the Class I
and II Officers and All India Consumer Price Index Number for Industrial Workers (General) based on
2001-100 (AICPI) series is used for grant of compensation to Class III and IV employees for price rise.
Dearness Allowance installments are released 4 times in a year with effect from 1st January, 1st April,
1st July and 1st October. Dearness Allowance is paid for the increase in the All India Consumer Price
Index average of 126 to which the revised scales of pay are related. 178 In addition to the dearness
allowance, an employee, who is not allotted accommodation by the Port Trust is paid House Rent
Allowance at 30 per cent Rate of HRA with effect from January 1st, 2007. Port Allowance at the rate of
Rs.300 Per month is paid to all the employees of the Trust and Transport reimbursement of Rs.270 per
month is provided to all eligible employees and for handicapped employees, reimbursement for
transport has been allowed at double the rate. In addition to the above, overtime, wages for working on
a day of rest or holiday are also provided for officers and employees. All employees of Class III and IV
who work between 10 p.m. and 6.00 a.m. are eligible for the Night-Weightage Allowance. The crew
working on Dredgers and those who work on improving the output of locomotives expressed in terms of
wagon operations are eligible for incentives. Besides the above allowances and incentives, the Additions
to Pay also include other allowances such as Good Attendance Allowance, Uniform Charges (applicable
to certain employees in the Marine, Medical and Civil Engineering Departments), Cycle/Cycling
Allowance (applicable to certain Employees in the Mechanical and Electrical Engineering, Civil
Engineering, General Administration, Finance and Marine Departments), Unclean Allowance applicable
to those engaged for cleaning and washing septic tanks, those employees posted to clean lavatories,
gutters, water closets, ward beds and bed pans in the Chennai Port Trust Hospital and generally those
who have to deal with filth during the course of their work.235 Retirement The retirement as well as
extension of service of the employees of Chennai Port Trust (ChPT) is governed by the Chennai Port
Trust Employees’ (Retirement) Regulations, 1976, conferred under Section 28 of the Major Port Trusts
Act, 1963). 236 Every employee of the Port Trust must retire from the service of the Port after attaining
the age of sixty years. However, the Chairman has the right, if he is of the 235 Chennai Port Trust
Schedule of Employees as on 1st April 2012 and 1st April 2013, pp.3-61 236 Chennai Port Trust
Employees’ (Retirement) Regulations, 1976, Chennai Port Trust, pp.1-5 179 opinion that it is in the
Board’s (Board of Trustees) interest, the absolute right to retire any employee at any time by giving him
notice of not less than three months in writing or by giving three months’ pay and allowances in lieu of
such notice. An employee of the Port Trust may voluntarily retire from service by giving notice to the
Board of not less than three months in writing subject to conditions that the employee has reached the
age of fifty years in the case of employees in Classes I and II service who had joined before attaining 35
years of age or fifty-five years in other cases; or after the Employee has completed 30 years of qualifying
service in respect of an employee who is governed by the Chennai Port Trust (Pension) Regulations); or
30 years of service in respect of Class-III employees who are not governed by the Chennai Port Trust
(Pension) Regulations; an Employee, who has put in not less than twenty years of qualifying service may,
by giving notice of three months in writing, retire from service voluntarily. The Chennai Port Trust
(Pension) Regulations, 1987237 apply to employees who are governed by the Chennai Port Trust
Pension Rules. To be entitled to a pension, an employee must have completed a minimum qualifying
service of not less than 10 years, and the service must be substantive or permanent. General Provident
Fund The Chennai Port Trust (General Provident Fund) Regulations, 1997 relate to both Provident Fund
as well as Gratuity. These regulations apply to all permanent and temporary employees who have
completed one year of service and have been admitted to the Chennai Port Trust General Provident
Fund.238 Contributory Provident Fund The Chennai Port Trust (Contributory Provident Fund)
Regulations, 1997 apply to all employees of Chennai Port Trust, who have been admitted to the Chennai
Port Trust Contributory Provident Fund. The Fund is administered by the 237 The Chennai Port Trust
(Pension) Regulations, 1987 , [Accessed on 29-June-2013] 238 Chennai Port Trust (General Provident
Fund) Regulations, 1997, Chennai Port Trust, pp.1-16 180 Board of Trustees of Chennai Port and every
subscriber is required to make a nomination conferring the right to receive the amount excluding the
special contribution and additional amount admissible under the regulations that may stand to his/her
credit in the event of his/her death. The Contribution by the Board of Trustees of Chennai Port shall be
10 per cent of the emoluments on which the subscriber has subscribed and are credited to his/her
account annually before the 31st of March. In addition to the Board’s Contribution to the fund, a special
contribution is credited to the account of the subscriber whose service is certified to have been good,
efficient, faithful and continuous by the sanctioning authority.239 Corporate Social Responsibility
Initiatives Corporate Social Responsibility is a management concept whereby Organizations integrate
social and environmental concerns in their business operations and interactions with their stakeholders.
CSR is generally understood as being the way through which a company achieves a balance of economic,
environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time
addressing the expectations of shareholders and stakeholders.240 As part of its CSR initiatives, the
Chennai Port Trust has decided that as much as 5 per cent of the total profit of Chennai Port Trust will
be spent towards corporate social responsibility projects to uplift lives of those living in the
neighborhood of the port. Five government schools in the port’s vicinity were identified in 2013, for
grants of scholarships to meritorious students in the secondary and higher secondary levels as part of
the implementation of the Port’s CSR objectives. In another effort, compensation cheques were
disbursed to 683 dependent families of deceased employees of the Port which worked out to a sum of
Rs. 25 crore. The scheme was worked out, on witnessing the hardships faced by the dependents of
deceased employees of Chennai Port, who were seeking employment with the port on compensatory
grounds but could not be accommodated. A scheme was also inaugurated in 2013, for planting 5000
saplings as part of the Green Port initiative of 239 Chennai Port Trust (Contributory Provident Fund)
Regulations, 1997, Chennai Port Trust, pp.1-22 240 [Accessed on 23-February- 2014]. 181 the Port
aimed at reducing the impact of port operations on the environment and the surrounding community.
Labour Welfare Measures A Committee on Labour Welfare appointed in 1969, by the Government of
India, defined measures of labour welfare as “facilities and amenities such as adequate canteens, rest
and recreation facilities, sanitary and medical facilities, arrangements for travel to and from the place of
residence, accommodation of workers employed at a distance from their homes, and such other
services, amenities and facilities including social security measures that contribute to conditions under
which workers are employed.”241 Labour welfare measures are extremely significant because they
enable employees to perform their work in healthy, congenial surroundings conducive to good health,
and high morale. Chennai Port Trust has provided its employees with various welfare measures, such as
accommodation; a community hall for use of serving/retired/deceased employees on a rental basis to
celebrate religious/social functions in the Hall; a welfare committee to maintain the Thondiarpet
housing colony, the Chennai port & dock educational trust higher secondary school for the children of
employees providing free of cost education, sports stadium having special areas earmarked for football,
track and field, Kabaddi, volleyball, basketball, badminton and weightlifting; separate gymnasiums for
men and women to maintain physical and mental health; training on self-employment skills like
tailoring; a ritual shed to enable the employees at the housing colony to perform rituals without
incurring expenses; children’s education allowance in which Rs.12,000/- per annum per child up to a
maximum of two children studying from Lower Kindergarten to Higher Secondary Courses or Polytechnic
Courses. In addition to the above measures, a Workers Education Scheme for Class III and IV employees
to educate them on national and international social, economic and political events; a family planning
scheme to encourage the small family norm; canteens for the workers; 241 Report of the Committee on
Labour Welfare, (1969) Department of labour and employment, Manager of publications. 182 women’s
welfare association that conducts programs in medical treatment, stress management, skin care,
production of handicrafts, etc.; Tamil Sangam to encourage Tamil Poets and promote the Tamil language
among the employees; Crèche; Officer’s club that offers cultural programs, lectures and debates, library,
sports activities; family disputes counseling / enquiry; quality life programs to educate addicts of
alcohols and drugs; financial assistance for the employees and their family members in acute distress;
contribution to Chennai Port Trust Employees House Building Advance Special Family Benefit Fund (CHT
EHBASFB); and a welfare fund to meet the expenditure towards implementation of the Welfare
Measures extended to the officers and employees of the Trust are the other welfare measures being
provided by the Port Trust.242 The present chapter discussed the organizational structure, personnel
policies and the trends in the growth of Chennai Port Trust since its inception in 1881 till 2001. The next
chapter provides an analysis of the performance of Chennai Port Trust from 1991-92 to 2013-14 by
analyzing the data related to the Trade, Operations, Infrastructure facilities, Human Resources and
Financial performance of the Port from 1991-92 to 2013-14. Chennai Port Trust has tried to keep abreast
of the increasing needs of the Southern Region, due to the impetus given by the industrial development
in the successive Plan periods. It adapted itself to the handling of heavy bulk imports of food grain and
fertilizers; it has added facilities for handling oil and oil products; above all, it has taken note of the
world trends in traffic and has set up container terminal facilities. The port after 132 years of service has
thus evolved and transitioned from manual handling of cargo during the initial years of port operations
to a modern, multi-berthed, multipurpose harbour.