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Report On JNPT Disaster Management
Report On JNPT Disaster Management
STUDY AT JNPT
ADMAP PROJECT
Faculty In-charge
1. 7 S FRAMEWORK.....................................................................................................................4
1.1 Strategy..................................................................................................................................4
1.2 Structure.................................................................................................................................6
1.3 Systems..................................................................................................................................9
1.4 Shared Values........................................................................................................................9
1.5 Style.......................................................................................................................................9
1.6 Staff and Skills.....................................................................................................................10
2 SECONDARY RESEARCH.................................................................................................12
2.1 THE MUMBAI OIL SPILL.............................................................................................12
2.1.1 Cause of the Accident...................................................................................................12
2.1.2 Ecological Impact.........................................................................................................12
2.1.3 Salvage Operation.........................................................................................................13
2.1.4 Fuel Shortage................................................................................................................13
2.2 BP Oil Spill in US............................................................................................................15
2.2.1 Action taken..................................................................................................................16
2.2.2 Containment..................................................................................................................16
2.2.3 Use of dispersants deep under water............................................................................16
2.2.4 Removal........................................................................................................................16
2.2.5 Consequences...............................................................................................................17
3. PRIMARY RESEARCH...........................................................................................................17
3.1 JNPT EMERGENCY POLICY...........................................................................................18
3.1.1 Major Emergency.........................................................................................................18
3.1.2 Major Disaster..............................................................................................................18
3.1.3 Purpose.........................................................................................................................18
3.1.4 Emergency Response....................................................................................................18
3.1.5 Crisis Management Group............................................................................................19
3.2 CLASSIFICATION OF EMERGENCY ORGANIZATION:...........................................21
3.3 EMERGENCY MANAGEMENT TIER I - PORT TRUST TEAM – (ON SITE).............21
3.4 EMERGENCY MANAGEMENT (COMMUNICATIONS)–TIER 2 AND 3 OFF SITE. 23
3.5 DUTIES OF KEY PERSONNEL........................................................................................24
3.6 BUILD UP OF EMERGENCY...........................................................................................30
3.7 GENERAL EMERGENCY RESPONSE............................................................................32
4. COMPARISON BETWEEN SINGAPORE PORT AND JNPT PORT...................................37
5. COMPARISON BETWEEN DUBAI PORT AND JNPT PORT.............................................40
6. REFERENCES:.........................................................................................................................42
7. GROUND SURVEY FOR FINAL REPORT...........................................................................43
1. 7 S FRAMEWORK
The McKinsey 7S Framework is a management model developed by well-known business consultants
Waterman and Peters in the 1980s. This was a strategic vision for groups, to include businesses, business
units, and teams. The 7S are structure, strategy, systems, skills, style, staff and shared values.
We have used this framework to study the organizational structure of Jawaharlal Nehru Port Trust. Let’s
discuss each of these aspects in detail w.r.t the organization.
1.1 Strategy
The vision of JNPT is to be recognized as India’s premier container port providing integrated
logistics services to the best interest of trade and customers.
Strategy is also defined as “What business to be in and what to be out, where to focus and
what should be the guiding principles”
Figure 1: Strategy Chart
Competition:
o The key to differentiation with the competition is efficient and automated port operations.
The BOT model (Build operate and Transfer) , a precursor to Public private
partnership in India was first adopted by JNPT.
o The JNPT officials carry out demand estimate exercise every year and based on the
demand they update their machinery /capacity.
For example, they are launching 4 th terminal which shall triple the capacity of the
overall port in 2014.
o JNPT carries out annual dredging and deepening and widening of the channel to
handle increased customer demand.
o JNPT, for all its operations, has to get an approval from Maharashtra Environment
Board.
o Environment Impact Assessment Report : All the activities and the projects have to
submit and Environment Impact Assessment report before the approval.
1.2 Structure
Fig: Structure
The Board of Trustees exercise limited power and are bound by directions on policy matters and orders
from the Government of India. The Port Trusts are expected to serve public interest rather than maximise
profits and revenues while at the same time ensuring optimum deployment of assets.
The Chairman and Deputy Chairman are part of the Board of Trustees and are representatives of the
Board who are responsible for the management of the port. The Chairman is the Chief Executive of the
port and exercises supervision and control over the day to day activities of the port. He also functions as
the administrative head for all the port employees.
The Chief Manager, Operations has responsibility and authority for operations including -
Planning, documentation, operations in the Bulk and Container Terminal of the Port, landing,
shipping or
Trans-shipping cargo between vessels in the Port, shifting, transporting, storing or delivering
cargo/containers,
brought within the premises of the Port, receiving, delivering, transporting, booking and
dispatching
cargo/containers originating in the vessels in the Port and intended for carriage by road or
railways;
Maintenance of port equipment, management of stores, sub-stores, procurement of materials,
equipment,
spares, consumables
Preparing and distributing statistics related to port operations
Providing engineering services related to port equipment, vehicles
The Chief Manager, Administration and Secretary has responsibility and authority for operations
including -
Management and development of personnel
Industrial relations, liaison with trade unions, staff associations etc.
Management of estates owned/leased or rented by the Port
Legal matters and Board Matters
Matters and activities related to vigilance
Arrange training of employees
General administration and transport facilities
The Chief Manager, Port Planning and Development has responsibility for the execution and
management including the following –
The Deputy Conservator has responsibility and authority for the management of all marine related
operations in their entirety including –
The Chief Manager, Finance has responsibility and authority for all financing and accounting activities
including –
Collection of revenues for services provided in container, bulk, tank farms, estate and marine
department
Disbursement of cash, maintaining and reconciliation of bank accounts
Payments related to project activities, bills, materials and establishment
Internal audit by the department, as well as preparation of financial and accounting statements
Costing, budgeting and loans and investments
Coordination
The departments have a weak link communication link amongst themselves typical to an
institutionalized organization.
However, in the event of disaster , all the departments actively coordinate internally and
externally
The hierarchical structure segregates the work of each of the employee and the reporting is very
structured. Each employee has only one senior to be reported to. However, the 1:4 reporting
structured is mostly followed in all departments, i.e 4 subordinates reporting to 1 senior.
The decision making is decentralized for day to day operations. However for special decisions
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involving Capital investments, centralized decision making is used. The level of centralization is
that of Ministry of India in case the capital investments requirement exceeds 50 cr.
Comments : The decision structure seems to be good, which takes care of all the aspects of
business of the port. However, the speed of the flow of information to various decision making
units is very slow which makes JNPT slow in changing itself with the requirements of the
customers.
Channels of Communication
Channels of Communication in JNPT are highly influenced by the power factor
which the seniors enjoy with respect to the subordinates. Hence the channels of
communication are very formal from subordinates to the seniors whereas it is implicit
for downward communication.
1.3 Systems
Build, Operate and Transfer Model runs the 2 terminals out of the three in the JNPT where JNPT
plays a role of facilitator to the Port operators.
Revenue sharing model is used to share the profit between the port operators and JNPT.
JNPT formulates the tariff regulations in conjunction with TAMP(Traffic Authority for Major
Ports)
JNPT conducts audits of the port terminals annually and also some surprise audits are conducted
to ensure secure and correct port operations.
Core Value: The core value of the organization is Customer Service. The customer’s include the
traders and cargo ships.
Corporate/team culture:
o The corporate culture is highly bureaucratic. Hence, outsourcing the terminals to the
private players is the best possible model to cater to the core value.
o The philosophy of customer service underlines all the decisions of the JNPT. However,
the inefficiencies in the organization due to hierarchical structure tends to shadow the
philosophy many a times (report on the disaster management and incidents of operational
inefficiencies are common).
What are the fundamental values that the company/team was built on?
1.5 Style
Effectiveness :
Concern for People
o In our view, the management of JNPT lacks the effectiveness to make it a world class
port. It is too tied up in the hierarchical processes.
o Team members are low on cooperation. However, competitiveness can be seen in the
power politics that can be very evidently observed.
Are there real teams functioning within the organization or are they just nominal groups?
Classification of Labour
Contract Labour - This number is variable and changes depending on the status of port developments.
This includes contract labour for all 3 shifts deployed in conservancy and construction activities in the
port. JNPT deploys approximately 700 contract labour for their activities. The bulk of these labourers are
hired for the container handling operations like operating tractor trailers and construction activities at
JNPCT
Private labour - This consists of labour employed by private terminal operators like NSICT and GTIPL.
Currently there are large numbers of contract labour deployed for civic and construction activities at 3rd
terminal (GTIPL)
The port was shut down for five days after two ships, as the containers from the MSC Chitra spilled into
the sea, leaking oil. Over 300 containers from the MSC Chitra fell into the water. The Chitra had 1,219
containers on board, of which 31 held hazardous chemicals and pesticides.
The oil slick has spread to a distance of two nautical miles from the ship. The vessel was carrying 2,662
tons of heavy oil in its various tanks and 245 tons of diesel oil. Around 800 tons of oil is estimated to
have spilled into the sea. The oil spill has hit shipping companies the hardest as ship movement to and
from the ports of Mumbai and JNPT had been suspended. These two ports handle 60 percent of India's
container traffic.
The total number of containers handled at each of these ports had dwindled to 10-15 percent of their
regular capacity. It was estimated that the trade loss incurred could touch the $4 billion mark if the issue
was not resolved by the weekend. Exporters and importers turned to the government seeking financial
relief. About 33,000-35,000 export boxes are inside the three terminals at the JN Port awaiting the arrival
of vessels for loading while nearly 20 vessels have been diverted to other ports.
Preliminary investigations suggest that the accident occurred as a result of communication errors. An
inquiry is being conducted by the Directorate General of Shipping and a report is expected to be tabled in
a month. The captains of the two ships have blamed each other for the mishap. Captain Laxman Dubey of
the Khalija-III alleged that he attempted to establish radio contact with the MSC Chitra thrice but
received no response.
Captain M Ranjit Martin, who was at the helm of the Chitra, said that it was negligence on the part of
Captain Dubey that led to the accident. He claimed that the Khalija-III was not in a good condition after
being grounded by Mumbai port authorities earlier in July. The vessel had been moving into the port
when it collided with the Chitra. The Geneva headquartered Mediterranean Shipping Company, which
owns the Chitra, has stood by its captain on the issue.
2.1.2 Ecological Impact
The impact is already being felt along the Mumbai coastline, with fish and other marine creatures being
found covered with oil. The oil slick has entered the sensitive mangrove belt and is likely to damage the
environment there. The shores along the green mangroves are coated with slick black oil. Containers of
pesticide are also thought to have spilled over and this is causing alarm to environmentalists.
The government had banned fishing in the region soon after the collision occurred. The state fisheries
department is carrying out random sampling at various locations throughout the city. The state
government has appointed the National Environmental Engineering Research Institute and Goa-based
National Institute of Oceanography to assess the environmental impact of the accident.
The Energy and Resource Institute (TERI) has volunteered to clean up the oil spill with its indigenously
developed and patented formula of bacteria called as 'Oil Zapper.' The process uses bacteria to clean-up
the oil slick. This might help do away with the effects of the spill.
SMIT Salvage is continuing with operations to clear the containers from the channel. It has cleared about
60 containers from the sea. The cleanup operation will be tedious and time consuming as it takes many
hours to lift a container by employing metal ropes and a crane. A floating crane and two tugs have been
employed to tow and pick up containers drifting in the channel.
SMIT is also pumping out the remaining fuel from the MSC Chitra to avoid any further spill. Attempts to
straighten the ship, which is dangerously tilted, failed because of the weather conditions. The Chitra is
tilted at an angle of about 75 degrees. Shipping officials estimate that clearing the ill-fated ship could take
a few months.
The following action plan was executed during the oil spill:
• Collected the floating containers and took them to JNPT; this was done by anchoring a barge at a
suitable anchorage with floating cranes.Tugs towed the floating containers to come for the placement on
the barge;
• Once the list of the vessel stabilized and certified safe to board, the salvagers boarded the vessel and
removed the fuel from the various tanks into barges to eliminate threat of pollution;
• The containers on deck were removed with the help of tugs and crane and barge arrangement and taken
to JNPT;
• The removal of the remaining containers in the holds and salvage of the vessel was then attended to.
With the ports limping back into operation mode, fears of a fuel shortage in the city of Mumbai have been
quelled. There was a possibility that the city would run out of fuel if the ports did not reopen soon. Oil
and fertilizer ships will be let in on priority.
However, major oil companies such as Oil and Natural Gas Corp. (ONGC), Bharat Petroleum Corp.,
and Hindustan Petroleum Corp. have sought to assuage fears by maintaining that production at their
plants in Mumbai are normal and there is no shortage foreseen whatsoever.
2.2 BP Oil Spill in US
The BP oil spill, is an oil spill in the Gulf of Mexico which flowed for three months in 2010. The impact
of the spill still continues even from the well being capped. It is the largest accidental marine oil spill in
the history of the petroleum industry. The spill stemmed from a sea-floor oil gusher that resulted from the
April 20, 2010 Deepwater Horizon drilling rig explosion. The explosion killed 11 men working on the
platform and injured 17 others. On July 15, the leak was stopped by capping the gushing wellhead, after it
had released about 4.9 million barrels or 205.8 million gallons of crude oil. It was estimated that
53,000 barrels per day were escaping from the well just before it was capped. It is believed that the daily
flow rate diminished over time, starting at about 62,000 barrels per day and decreasing as the reservoir of
hydrocarbons feeding the gusher was gradually depleted. On September 19, the relief well process was
successfully completed and the federal government declared the well "effectively dead".
2.2.2 Containment
This action included deploying many miles of containment boom, whose purpose is to either corral the
oil, or to block it from a marsh, mangrove, shrimp/crab/oyster ranch or other sensitive area. Booms
extend 18–48 inches above and below the water surface and are effective only in relatively calm and
slow-moving waters. More than 100,000 feet (30 km) of containment booms were initially deployed to
protect the coast and the Mississippi River Delta. With time that nearly doubled to 180,000 feet with an
additional 300,000 feet staged or being deployed.
Dispersants are said to facilitate the digestion of the oil by microbes. Mixing the dispersants with the oil
at the wellhead would keep some oil below the surface and in theory, allow microbes to digest the oil
before it reached the surface. Various risks were identified and evaluated, in particular that an increase in
the microbe activity might reduce the oxygen in the water.
2.2.4 Removal
Three basic approaches to removing the oil from the water have been burning the oil, filtering off-shore,
and collecting for later processing. On April 28, the US Coast Guard announced plans to corral and burn
off up to 1000 barrels of oil each day. It tested how much environmental damage a small, controlled burn
of 100 barrels did to surrounding wetlands, but could not proceed with an open ocean burn due to poor
conditions. BP stated that more than 215,000 barrels of oil-water mix had been recovered by May 25.In
mid June, BP ordered 32 machines that separate oil and water with each machine capable of extracting up
to 2000 barrels per day, BP agreed to use the technology after testing machines for one week. By June 28,
BP had successfully removed 890,000 barrels of oily liquid and burned about 314,000 barrels of oil.
2.2.5 Consequences
Ecology
The spill is the 'worst environmental disaster the US has faced', according to White House energy adviser
Carol Browner. Factors such as petroleum toxicity, oxygen depletion and the use of Corexit dispersant are
expected to be the main causes of damage. Eight U.S. national parks are threatened. The flora and fauna
of the nearby areas have been severely affected. Along with these, the coral reefs have been
disrupted. Damage to the ocean floor is also likely. The use of dispersants has broken up the oil into
droplets small enough they can easily enter the food chain. The researchers announced the oil spill waters
contain carcinogens.
Tourism
Although many people cancelled their vacations due to the spill, hotels close to the coasts of Louisiana,
Mississippi and Alabama reported dramatic increases in business during the first half of May 2010.
However, the increase was likely due to the influx of people who had come to work with oil removal
efforts. Jim Hutchinson, assistant secretary for the Louisiana Office of Tourism, called the occupancy
numbers misleading, but not surprising. "Because of the oil slick, the hotels are completely full of people
dealing with that problem," he said. "They're certainly not coming here as tourists. People aren't sport
fishing, they aren't buying fuel at the marinas, and they aren't staying at the little hotels on the coast and
eating at the restaurants."
3. PRIMARY RESEARCH
3.1 JNPT EMERGENCY POLICY
3.1.3 Purpose
While it is expected that established policies and procedures will be adhered to, the responsibility for
making decisions ultimately falls upon individuals. For this reason a hierarchy of command is established
for the Site Incident Controller and the administration of an emergency response and for the local
administration at each port owned and operated site. Decisions effecting the execution of this plan are to
be made by the highest ranking individual who is available for counsel. It is recognized that immediate
decisions by port personnel at various locations may be highly beneficial in reducing injuries and property
loss. For this reason broad discretionary powers are bestowed on site managers. It is expected, however,
that decisions will be in keeping with the "reasonable person" standard.
In the event of an emergency the PORT'S Deputy Conservator (or his/her designee will serve as the Site
Emergency Coordinator.
2. RESOURCES:
The Deputy Conservator will establish the priorities for allocation of PORT resources.
3. COMMITMENTS:
The JNPT intends to make every good faith effort to continue to honor contracts and
commitments which may be affected by an emergency.
4. COMMUNICATIONS:
The PORT'S Administration Department will provide media and public information at the
direction of the Chairman.
5. PERSONNEL POLICIES:
The Deputy Conservator may develop extraordinary policies to apply during the period of an
emergency.
6. MUTUAL AID:
A. If necessary, the Deputy Conservator may request assistance from other governmental entities
or agencies or may retain private contractors as needed.
B. If requested, the Deputy Conservator may make PORT resources available to others severely
impacted by an emergency provided such aid:
A. The best information available at the time a decision and/or action is warranted.
B. A resource available at the time a decision and/or action is warranted.
9. ACKNOWLEDGMENT OF LIMITATIONS:
A. The JNPT is committed to developing emergency preparedness plans that address:
The safety and security of our employees, customers, visitors, and members of the
community.
The protection of the environment.
The protection of property.
The orderly continuation of the mission of the PORT.
The safe and orderly continuation of the business of our customers.
B. It must be recognized that it is virtually impossible to develop a plan, or set of plans, that will
foresee and address all future events -- particularly when the dynamics of a disaster are in
play. For this reason it is acknowledged that the PORT plans may be less than perfect in their
content or their execution.
C. In the dynamics of a disaster or major emergency, factors beyond our control may limit the
ability of the PORT to provide a totally effective response to a widespread disaster.
Shout FIRE – FIRE – AAG so that many people become aware of an emergency
Inform nearest shift – in – charge or POC control room by giving
caller name, place & nature of emergency.
Wait for the instructions from Site Incident Controller.
Collision of ships
Person(s) falling in harbour water
Grounding of vessel
Fire in ship
Explosion in ship
Toxic release in ship
Oil spill from ship and marine pollution
Collision of Ships
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6. Integration with Singapore besides being well Rail lines to and from JNPT are
Other Transport integrated with the railways choked, and this causes much
Facilities has recently been connected of the delay. Turnaround times
with Singapore Airlines that for vessels are longer at JNPCT
allows for smooth, fast and than at GTI, NSICT (other two
seamless trans shipments thus terminals at JNPT site), or any
making it number one in of the private ports across
terms of Efficiency. India.
Dubai JNPT
Environmental Eliminating oily ballast water The port or terminal is required
and Safety discharge from ships is a major to prepare and maintain a Waste
concerns environmental concern. This issue is Management Plan for ship generated
well recognized and provision of wastes. The plan should include the
adequate reception facilities in port is provisions and use of facilities for
required under the International reception of prescribed wastes as per
Maritime Organisation (IMO) MARPOL 73/78 from ships and crafts
International Convention for the using the harbour. The International
Prevention of Pollution from Ships Convention on the Prevention of
(MARPOL) Convention 1973/78. pollution from ships (73/78) contains
Regulation 10/7 and 12 of the regulations pertaining to reception
pollution convention require each state facilities to be provided by the port. The
to ensure that sufficient oily ballast Annexes of MARPOL refer to specific
water reception facilities are available waste categories. The category of wastes
at oil-loading terminals, ports with that affect JNPT and the manner in which
ship repair facilities, and in those ports they are dealt with are contained in this
in which ships have oily residues to plan. Other terminals operating in JNPT
discharge to shore. have to prepare their own waste
management plan and submit a copy to
JNPT
Turnaround Less Congestion in Dubai port inspite Despite having adequate capacity
time of huge traffic. Average turnaround and modern handling facilities, average
time is less than one day. turnaround time is 1.67 days .
Congestion is due primarily to the slow
evacuation of cargo rather than a lack of
handling capacity, since ports are not
adequately linked to the hinterland.
Transactional The transactional Owing to the inadequate infrastructure in
Cost cost in Dubai port is around 4-4.5 per various services including customs
cent. This is very less which puts them facilitation, electronic data interchange
at a competitive advantage (EDI) and documentation,
among others, the transaction cost in
India
has remained very high and placed at
around 10-12 per cent of the imported
value of the goods
Intermodal Ports are serving as intermodal links as JNPT is still in the process of getting
Links critical nodes in international supply there. More ICD/CFS being set up near
chain networks ports with value added services. Road
and rail connectivity improvement
projects are being launched
Privatization Increasing privatization: Shift from Same: Major Ports are gradually
service port increasing participation from private
to landlord port model. The ports are sector. PPP model has been implemented
owned privately by DP World and thus in two out of three ports and there are
is more like a landlord port model than plans to expand on this.
a service port model
Traffic Dubai port handles 14% of world One port JNPT handles 60% of all
traffic. Its big size, effective traffic container traffic among Indian ports. It is
management and low turnaround time the biggest port in India but still needs to
allows it to manage the traffic very improve on the
well.
Vessel Capacity Largest container vessel is 14000 Largest container vessel 6000 TEU’s.
TEU’s. Thus it has a huge capacity for Need to improve on capacity to handle
container vessels much larger vessels
Charges of For a vessel of 2500 TEU’s and 2600 Due to low port dues, pilotage and berth
handling vessel GRTs, the vessel charges in JNPT are hire rate, for 2500 TEU’s and 2600
$8515. This is mainly because of high GRT’s, the vessel charges are just $2290.
port dues, pilotage and berth hire rates This makes trade to be cheaper and more
foreign players invest
6. REFERENCES:
1. Indian Ports - http://www.mu.ac.in/arts/social_science/eco/pdfs/vibhuti/wp14.PDF
How strongly are the ports linked with hospitals to deal with emergency?
On any
Has the scale
of theofsuggestion
1-10 rate given,
the following:
ever been(Inimplemented?
case of any rating
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note the reasons
it and besides)
how fast?
How well is the port equipped to tackle the following situations:
Howdo youCollision of lifting
find the ships equipments presently used in the system?
Person falling in harbour
Excellent
Grounding working
of vesselcondition
Good
Stormworking condition
Need
Flooda change
Need an immediate
Collapse of lifting change
appliances, buildings
Fire or Explosion(Ship)
How do you find the technology presently used in the system?
Fire or Explosion(Port)
Excellent
Toxic Release(Ship)
Good
Toxic Release (Port)
Needs
Pollution by Oils
up gradation
Terrorist attack
Need an immediate up gradation
Earthquake
What is the turn around time in case of an emergency?
How well defined is the entire process of disaster management?
Less than 30 mins
How efficient is the
Less than an logistics
hour of the port to handle emergency?
Less than 2 hours
How strongly are the ports linked with hospitals to deal with emergency?
More than 2 hours
How well is the rail/road connectivity dealt with during emergency?
How frequently are drills conducted?
How well equipped is the port with resources during disasters?
Once a month
Once in 3 months
Once in 6 months
Once in a year
What are the major loopholes are per you in the disaster management system?
Outdated Policy
Inefficient administration
Ineffective workforce
Outdated technology
Insufficient resources
Other
How are the safety precautions for the personnels during disaster?
How are the compensations provided to the security personnels in case of any casualty?
How do you rate the way Mumbai oil spill was handled by the port authorities?