MEASURING THE EFFECTIVENESS OF HALT AND LAG IN

CONTAINER HANDLING OPERATION WITH SPECIAL

REFERENCE TO LOM LOGISTICS
By

SOWMIYANIVASINI R.R
REG NO : 412518631093
Of
SRI SAIRAM ENGINEERING COLLEGE

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT SCIENCES

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI - 600025
JUNE 2020
 BONAFIDE CERTIFICATE
This is to certify that project titled “MEASURING THE EFFECTIVENESS OF HALT AND
LAG IN CONTAINER HANDLING OPERATION WITH SPECIAL REFERENCE TO LOM
LOGISTICS” is the bonafide work of Miss. SOWMIYANIVASINI.R.R (RegNo:412518631093)
who carried out the research under my supervision. Certified further, that to the best of my knowledge
the work reported herein dose not from part of any other project report or dissertation on the basis of
which a degree or award was conferred on earlier occasion on this or any other candidate.

Dr.K.Maran Dr.K.Maran
Signature of the Guide Signature of the Director

INTERNAL EXAMINER EXTERNAL EXAMINER

 TO WHOM SO EVER IT MAY CONCERN

This is to certify that Miss. SOWMIYANIVASINI .R.R (Reg No: 412518631093) final year MBA
student of Sri Sairam Engineering College , Chennai , Tamil Nadu, has successfully completed her
project work on “MEASURING THE EFFECTIVENESS OF HALT AND LAG IN CONTAINER
HANDLING OPERATION with special reference to LOM LOGISTICS INDIA PVT LTD”, in our
organisation from 20th January 2020 to 20th March 2020. During her stay at our organisation, she took
initiative in learning and acquiring knowledge.

We wish her all the best for all her future endeavours.

M.Suresh
Asst.Manager
 DECLARATION
I, SOWMIYANIVASINI R.R, hereby declare that the Project report, entitled,
“MEASURING THE EFFECTIVENESS OF HALT AND LAG IN CONTAINER
HANDLING OPERATION WITH SPECIAL REFERENCE TO LOM LOGISTICS”
submitted to Anna university, Chennai in partial fulfillment of the requirement for the award
of the degree of MASTER OF BUSINESS ADMINISTRATION is record of original and
independent research work done by me during June 2020 under the supervision of
DR.K.MARAN, Department of Management Studies, and it has not formed the basis for the
degree or other similar title to any candidate of any university.

Place: Chennai SOWMIYANIVASINI R.R

Date:
 ABSTRACT i

The present research has been conducted to measure the effectiveness of halt and lag in
container handling operation. The purpose of this research is to identify the factors that
causes delay in container handling operation. By the use of Analytical Hierarchical Process
(AHP)method the various delay factors are evaluated. This study contributes that ‘Port ’is
one of the most significant factor that causes delay in the operation. Meanwhile, sub-criterion
of ‘Deficiency of loading and un-loading equipment’ is selected as the most significant sub-
cause of delay creation in the container handling operation. Also this study examines the
applicability of the Job Shop Scheduling which includes branch and bound method to solve
the berth scheduling problem. This study contributes the practical technique and valuable
findings to the port as it helps to measure the factors that affect the operational performance
of the container handling operation. Efficiency of ports in measuring the halt and lag in the
container can create a remarkable influence in the decrement of the period of ship stay at the
port, the period of sedimentation of goods and the decrement of freight payable to shipping
companies
 ACKNOWLEDGEMENT ii

I thank GOD ALMIGHTY for helping me to complete this project work successfully. I believe
that nothing would have been possible without god’s grace and guidance.

My study in LOM LOGISTICS PRIVATE LIMITED has been a wonderful learning

experience. It has instilled in me a sense of professionalism, endurance, dedication and sincerity in
analyzing, understanding and working with new ideas in work environment. Anything that I have
learned and accomplished fully and completely, depend upon the help support and cooperation of
many people. I sincerely thank all those people who guided, helped and directed me in learning and
giving a much broader view about the department.

I would like to express my sincere thanks to MJF Ln Leo Muthu chairman, Sri Sairam group of
institution, Our CEO Sri Sai Prakash and Our Principal Dr. K. Palanikumar, for providing the
college facilities for the completion of this project.

I owe my achievement to the inspiration and kind guidance to my respected Professor

Dr.K.MARAN, Sri Sairam Department of Management Studies, for giving this opportunity and I
am thankful for his sincere guidance as my Internal Guide to successfully complete my project.

I also thank Dr. K. Maran, H.O.D, Department of Management studies, for his valuable suggestion
and assistance throughout the project.

I very specially express my gratitude towards, Mr. Lim Han Sung, Founder of the company, who
guided me for valuable opinions and suggestions, which have helped tremendously in making this
study, a fruitful one.

I also thank all my faculties of SAIRAM Institute of Management Studies-MBA Department for
their valuable support and time. I also thank all those who took contribution though have been
significant but are not named. I shall ever remain thankful to them and express my sincere gratitude.

SOWMIYANIVASINI R.R
 TABLE OF CONTENTS iii

Abstract i

Acknowledgement ii

Table of content iii

List of tables iv

List of figures v

CHAPTER TITLE PAGE NO

NO.
1. INTRODUCTION
1.1 Introduction to the study 1
1.2 Industry profile 11
1.3 Company profile 21
1.4 Review of Literature 27
1.5 Need for the study 34
I
1.6 Objectives of the study 35
1.7 Scope of the study 36
1.8 Research Methodology 37
1.9 Limitations of the study 39
2. DATA ANALYSIS AND 40
II INTERPETATION

3. SUMMARY OF FINDINGS,
SUGGESTIONS AND CONCLUSION
III
3.1 Findings 57
3.2 Suggestions 58
3.3 Conclusion 59
REFERENCES
APPENDIX
 LIST OF TABLES iv

TABLE NO TITLE PAGE NO.

2.1.1 Random index (RI) table (Satty table) 40
2.1.2 Rating scale for pair-wise comparison 43
2.1.3 Pair-wise comparison values of main criteria 43
2.1.4 Relative weights of main criteria 44
2.1.5 Normalized weights of criteria and sub-criteria 45
2.1.6 𝝀max of comparison matrix of the main criteria and sub- 47
criteria
2.1.7 Values of CR for criteria and sub-criteria 48
2.1.8 Global normalized weights of the main criteria 48
2.1.9 Global normalized weights of the sub-criteria 50
2.1.0 AHP scale and its Description 51
2.2.1 Job Shop Scheduling for single machine 53
2.2.2 Delay calculation 53
2.2.3 Job Order Sequence 54
 LIST OF FIGURES v
FIGURE NO TITLE PAGE NO.
1.1.1 Visual Representation of AHP 09
2.1.1 Model Development on studying delay factors 42
of cargo operation
2.2.1 Branch and Bound method(Tree Diagram) 55
 1

CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
In the age of globalization, ports are involved in a critical part in the economic growth of
the nation and region. Import and export companies situated close to a port are benefited from
the convenience and efficiency of logistics services. In the port industry, productivity is one of
the vital factors for ports to develop competitiveness and market potential. Nowadays, the
influence of transportation on sustainable development is pretty vivid and undeniable This
sector includes economic activities, which are widely effective in all categories of production,
distribution, consumption and services. Through the advantages such as low cost for high
volume of cargo shipment, marine transportation as one of the important bases of this industry
plays an essential role in development of nations’ foreign trade. Since time and cost are
considered as the important factors of competition in the present world, service complexes,
which are considered by economists, traders and producers as the infrastructures of global
trade, undertake a significant role in optimization of transportation costs and distribution of
goods.
Efficiency of ports can have a remarkable influence on decreasing the period of ships stay
in ports, goods sedimentation period and reduction of the freight taken by shipping companies.
Therefore, ports efficiency can result in satisfaction of customers, increase of demand level and
more profitability. Therefore, optimization of ports loading/unloading operation is considered
as an important approach to decrease the period of transmission of goods from producer to
consumer.
The considering necessity of ports Loading and unloading(L/U) operation optimization,
The present research has been conducted to measure the halt and lag in operation by identifying
the delay factors by use of Analytical Hierarchical Process (AHP) which is one of the most
appropriate and updated methods of measuring the effectiveness of the system and also helps
to identify the delay factors.
The Analytical Hierarchical Process(AHP) is the method for organising and analysing
complex decisions,using math and psychology. It was developed by Thomas L. Saaty in the
1970s and has been refined since then. It contains three parts: the ultimate goal or problem
which we are trying to solve, all of the possible solutions, called alternatives, and the criteria
 2

you will judge the alternatives on. AHP provides a rational framework for a needed decision
by quantifying its criteria and alternative options, and for relating those elements to the
overall goal.
APPLICATION OF AHP IN PORT INDUSTRY
This study aims to evaluate the most significant delay factors that causing delays in halt
and lag in container handling operation by using the analytical hierarchy process (AHP)
method. This study utilizes the quantitative research method, in which secondary data is used
as a source in order to produce a solid outcome. Meanwhile , for the secondary data source, it
is basically the information that extracted from books, official websites. AHP method is one of
the multi-criteria decision making approaches which use a hierarchizing process system to
carry out a wide-ranging evaluation and final decision on one of the causes of particular
problem.
OVERVIEW OF DELAY FACTORS IN CARGO WHILE HALT AND
LAG OCCURS IN CONTAINER HANDLING OPERATIONS
PORT
Seaport is one of the important actors in the maritime transport system.It has been
recognized as an entry point where seaborne goods coming into a country from other countries
and vice-versa. A port acts as an enterprise which required to provide quality services to its
customers in order to survive economically. This is because the port customers (i.e. shippers,
ship owners, etc.) continues to demand an efficient service from port operators for continued
patronage. The ability of a ship to serve and operate economically largely dependent on the
availability of a good functional port, among other factors. In the same manner, the service
facility like port need to be properly equipped from the organizational aspect until to the
infrastructure and equipment installations in order to serve the customers if its usefulness and
performance level is desired to be recognized.
However, a port can be a significant influencing factor to the competitive supply chain
system. This because delay in port operation can create a remarkable effect on the period of
ship stays in port, period of sedimentation of goods and freight payable to shipping
companies.In addition, it will not only affect the port efficiency alone, but it may also affect
the efficiency and effectiveness of the port customers operational activity. From the port
operation perspective, there are several circumstances that often impede the cargo handling
 3

operation. The circumstances that had been noted include deficiency of loading and unloading
(L/U)equipment. These circumstances can create a huge impact on port operation through the
delay creation as they are apart of the main components in cargo handling operation at a port.
For example, if there is deficiency of (L/U) equipment at the port, then the transferring process
of cargo would be slow down because the equipment involved may unable to be running at the
normal rate as it should be. Hence, it adds more time to a particular cargo handling operation
and indirectly, cause delays to the subsequent cargo handling operations.
SHIPS
Apart from port, the element of ships that carrying the cargoes also play a huge influence
in creating delay of dry bulk cargo operation. This because the loading and unloading process
of cargo in ships are quite complicated. Ship is a specialized vessel that designed to carry a
specific type of cargo, a number of considerations and crucial measures should be performed
in order to ensure the condition of the ship is suitable and safe, as well as keep the condition of
cargo stay as it should be. Otherwise, either the ship condition will be affected, or the cargo
will be contaminated or likely damaged. This might cause a halt and lag in container and thus
results in reaching of cargo later. If such conditions happened, it will make things worse.
Cargoes need to be in proper state, or else if any moisture that finds its way into the cargo could
ruin the entire load, at considerable cost to the ship owner. Some cargoes are classified
as‘Dangerous Goods’ where it requires special attention during loading, transportation and
discharge, as they could shift during shipment, causing ship instability. Carrying cargo
operations in bulk can be time consuming as the captain and terminal operators need to have
mutual agreement on a detailed planning of loading and unloading process as per international
regulations and design of the ship. It is crucial that the ship’s characteristics are written
precisely to the charter party so that any misunderstanding between the two parties can be
avoided. Any deviation on the agreed-upon ship characteristics (i.e. deficiency or inefficiency
of ship’s equipment) may result in the cancellation of the charter party or delay of cargo
handling operation. As for example, after each unloading process done, the holds of the ship
must be well-cleaned before the loading process of next cargo is performed. If the ship is having
temporary deficiency with her equipment(e.g. ballasting or hydraulic machinery problem), then
it might slow down or even stop, the loading and unloading operation immediately. This
situation will create delay in cargo handling operation as the operation cannot be performed as
 4

according to the plan and schedule until the respective fault of ship's equipment is backed up
or operate like normal. If not, it will affect the seaworthiness of ship and risks the cargo
worthiness. Seaworthiness of a ship is a very important to the charterers and cargo owners
especially, because it can have a huge impact on cargo worthiness. The deficiency of ship’s
equipment is one of the common situations that often causing the delays in cargo operation,
from the perspective of ship’s side. This is supported by several literature which also
highlighted the influence of situation in causing delay in cargo operation such Jafari (2013) ,
Saied (2013) et al. (2013), and Yousef (2018), to name a few.
Other than that, a late ship arrival at a port is another situation that sometime cannot be
avoided. However, such situation does affect the commencement of the cargo operation in
which has been planned and scheduled. The original plan of cargo operation may need to be
cancelled and rearranged for another transfer window in order to give a way for other ship that
also waiting for their turns. Otherwise, if the operation still be commenced, then the delays of
other subsequent cargo operations might be absolute. The influence of this situation in causing
delays of cargo operation has also been acknowledged by several literatures such as Adi
Budipriyanto (2015), Ning Zhao (2015).
CARGO OWNERS
Cargo owners are one of the important actors that should plays effective role in ensuring
the delays of cargo operation can be avoided from their sides. Although there is no control of
cargo owner to prevent the delays they however should avoid from creating it. To avoid
creating delays on the cargo owners’ side, the cargo owner must be fit in any condition either
to receive or deliver cargoes from or to vessels throughout the port, after completing all the
port and custom formalities. However, unpreparedness of cargo owners to receive or deliver
cargoes from or to vessels throughout the port is one of often situations that keep pausing the
effective completion of cargo handling operation (Jafari, 2013a; Jafari etal, 2013; Sayareh and
Ahouei, 2013). This situation basically happened when the relevant documents that should be
prepared by the cargo owners for the purpose of delivering or receiving the cargoes are either
incomplete or unacceptable by the local authority or port operator.Sayareh and Ahouei (2013)
in their study on dry bulk terminals also shared similar opinions as they found that unfitness of
cargo owner had created more than 69% of total pauses in cargo handling operation and it was
considered a significant contribution.
 5

Not just that, according to Sayareh and Ahouei (2013), the cargo owners did have a large
influence on the cargo operation as they are the ones who in charge on the preparation of the
cargoes before the loading and unloading operation at the port take places. Another common
situation that often contribute to the delay creation in cargo operation that contributed by cargo
owners’ side is the administrative and financial issue(Jafari, 2013a; Jafari et al, 2013; Sayareh
and Ahouei, 2013). This is because the cargo owners sometime can oversee this situation as
improper handling of the cargo and its documentations can cause extra costs to be charged and
problem to get the clearances for the cargo and ship.
Apart from that, the number of trucks supplied by the cargo owners to handle the cargoes
also has effect on the overall cargo operation as shortage of trucks can slow down the
movement of cargo to and from the loading and unloading sites. Unplanned slowdown will
cause delays in overall handling operations. Jafari (2013), Jafari (2013); Sayareh and Ahouei
(2013) and Saeidi (2013), to name a few.
MISCELLANEOUS
Despite of the situations that raise from the aspects of port, ships and cargo owners, there
are a number of other situations that also can have a huge impact on delay creation in the cargo
handling operation which might result in halt and lag in container. This because the situations
that been grouped under ‘Miscellaneous’ are likely the situations that port, ships and cargo
owners have no direct control of them and sometimes, they can be unpredictably threatened
the operation although the crucial measures have been performed. Generally, they are
contributed by outside elements or forces, other than port, ships and cargo owners. Jafari
(2013a)highlighted the situations were included foul weather and tide prediction,
Incompetence of transporting equipment and problem with safety issue. Similar opinions have
been shared in several other literatures ,which also pointed out similar situations and their
influences in delay creation of dry bulk cargo operation. The literatures include Jafari (2013b),
Jafari et al,(2013), Sayareh and Ahouei (2013) and Saeidi et al. (2013).
Taking the potential impact of weather and tide condition as the example, one of the
hazards that can be induced is the structural damage on the ship’s body. All available weather
forecasting should be utilized to determine that the weather condition is appropriate within the
'weather window' of the ballast water exchange operation. This is because 'weather window'
should be determined accordingly to the ballast water exchange sequence and the achievable
 6

ballasting/de-ballasting rates. A sufficient time margin should always be considered in case of

any interruption of unexpected circumstances such as the breakdown of ballast pumps. If there
is foul in weather and tide prediction, then it will affect the commencement of operation as
according to the original plan and schedule. In order to engage with the effective and safe
execution of ballast water exchange operation as well as reduce the risk of ship’s structural
damage, then the particular operation might be delayed until the appropriate ‘weather window'
is determined. Therefore, the weather and tide condition can be one of the important elements
in delay creation because it would affect the original plan of cargo operation (i.e. L/U operation,
ballast operation, etc.) if unfavourable condition takes place.
We consider the problem of optimizing the time for loading and unloading containers to
and from a ship at a container terminal, where containers are required to be transported by
trucks between the ship and their designated locations in the container yard. Generally a
container terminal consists of the quayside, where containers are unloaded from and loaded
onto ships, and the container storage yard, where containers are stored. External trucks are
responsible for taking containers in and out of a container terminal. Internal trucks are
responsible for transporting containers within the terminal, mainly between the container yard
and the quayside. When a ship arrives at the terminal, containers are first unloaded from the
ship onto the internal trucks by quay cranes. Next, the internal trucks transport the containers
to their prespecified locations in the container yard. Upon arrival at the container block, a
container is unloaded from the truck by a yard crane. After most of the containers have been
unloaded from the ship, the outbound containers are transported from the storage yard to the
quayside by those internal trucks and are loaded onto the ship by the quay cranes. Typically,
several quay cranes can work in parallel to serve a ship, where each crane is designated to
handle one section of the ship. To maximize the efficiency of this operation, it is important to
have the turnaround time of the ship minimized. The speed of this loading/unloading operation
is limited by the availability of the quay cranes and trucks. A quay crane can handle only one
container at a time, and a truck can normally transport one container at a time as well. The yard
cranes, on the other hand, have more capacity, and they usually spend their spare time shuffling
the containers within a container block so as to reduce the loading/unloading time of the future
tasks. Research related to the effectiveness of halt and lag incontainer terminal operations has
appeared.
 7

This includes the studies of operational issues such as berth allocation and storage
allocation. containers are first unloaded from a ship by quay cranes following a prespecified
sequence (known as “job sequence”). The unloaded containers are transported to their
destinations in the container yard by a fleet of identical vehicles, each of which can carry one
container at a time. Another set of containers are then transported from the yard by the same
set of vehicles and are loaded onto the ship, also following a prespecified sequence. It is
assumed that the travel times of vehicles satisfy the triangle inequality. The time that a quay
crane needs to load/unload a container is assumed to be the same for all the jobs. The objective
is to determine to minimize the makespan, i.e., the time it takes to complete the entire
loading/unloading operation for the ship. If loading and unloading operation is not done in
proper manner then the halt and lag occurs in the container handling operation and the whole
operation gets disturbed.
In this paper, the job shop scheduling in which Branch and Bound method is used to
minimise the transit delay occurring in the operation. The present research paper has undergone
the following theoretical framework and method. They are AHP and Branch and Bound
method.
ANALYTICAL HIERARCHICAL PROCESS(AHP)
The Analytic Hierarchy Process (AHP) is a theory of measurement through pairwise
comparisons and relies on the judgements of experts to derive priority scales. It is these scales
that measure intangibles in relative terms. The comparisons are made using a scale of absolute
judgements that represents, how much more, one element dominates another with respect to a
given attribute. The judgements may be inconsistent, and how to measure inconsistency and
improve the judgements, when possible to obtain better consistency is a concern of the AHP.
The AHP is most useful when finding decisions to complex problems with high stakes. It
stands out from other decision-making techniques as it quantifies criteria and options that
traditionally are difficult to measure with hard numbers. Rather than prescribing a "correct"
decision, AHP helps decision makers find one that best suits their values and their
understanding of the problem.
The derived priority scales are synthesised by multiplying them by the priority of their
parent nodes and adding for all such nodes. The information we gather is to help us understand
occurrences, in order to develop good judgements to make decisions about these occurrences.
 8

Not all information is useful for improving our understanding and judgements. If we only make
decisions intuitively, we are inclined to believe that all kinds of information are useful and the
larger the quantity, the better.
To make a decision we need to know the problem, the need and purpose of the decision,
the criteria of the decision, their subcriteria, stakeholders and groups affected and the
alternative actions to take. We then try to determine the best alternative, or in the case of
resource allocation, we need priorities for the alternatives to allocate their appropriate share of
the resources.
Decision making involves many criteria and subcriteria used to rank the alternatives of a
decision. Not only does one need to create priorities for the alternatives with respect to the
criteria or subcriteria in terms of which they need to be evaluated, but also for the criteria in
terms of a higher goal, or if they depend on the alternatives, then in terms of the alternatives
themselves. The criteria may be intangible, and have no measurements to serve as a guide to
rank the alternatives, and creating priorities for the criteria themselves in order to weigh the
priorities of the alternatives and add over all the criteria to obtain the desired overall ranks of
the alternatives is a challenging task. This approach basically points out a set of elements which
are mutually related in the problem investigated. The elements will form a particular hierarchy,
which is crucial for considering the possible contributors to the system. This structural
hierarchy method helps to indicate the relationships between the component parts of complex
systems, where the relationships are an arrangement of structural properties used to organise
and analyse complex decision using the mathematical structure of consistent matrices for
determining the weightage values.
The following diagram explains the visual representation of AHP in steps for easy
understanding. Using these following steps the delay factors are evaluated based on their
importance.
 9

FIG 1.1.1 VISUAL REPRESENTATION OF AHP

JOB SHOP SCHEDULING
Job shop scheduling or the job-shop problem (JSP) is an optimization problem in computer
science and operations research in which jobs are assigned to resources at particular times. The
We are given n jobs J1, J2, ..., Jn of varying processing times, which need to be scheduled
on m machines with varying processing power, while trying to minimize the makespan. The
makespan is the total length of the schedule (that is, when all the jobs have finished processing).
The standard version of the problem is where you have n jobs J1, J2, ..., Jn. Within each job
there is a set of operations O1, O2, ..., On which need to be processed in a specific order (known
as Precedence constraints). Each operation has a specific machine that it needs to be processed
on and only one operation in a job can be processed at a given time. A common relaxation is
the flexible job shop where each operation can be processed on any machine of a given set (the
machines in the set are identical).This problem is one of the best known combinatorial
optimization problems, and was the first problem for which competitive analysis was
presented, by Graham in 1966. The name originally came from the scheduling of jobs in a job
shop. Scheduling is the allocation of shared resources over time to competing activities. It has
 10

been the subject of a significant amount of literature in the operations research field. Emphasis
has been on investigating machine scheduling problems where jobs represent activities and
machines represent resources; each machine can process at most one job at a time.
BRANCH AND BOUND METHOD:
The branch and bound approach is based on the principle that the total set of feasible
solutions can be partitioned into smaller subsets of solutions. These smaller subsets can then
be evaluated systematically until the best solution is found. Branch and bound is an algorithm
design paradigm which is generally used for solving combinatorial optimization problems.
These problems are typically exponential in terms of time complexity and may require
exploring all possible permutations in worst case. The Branch and Bound Algorithm technique
solves these problems relatively quickly. Branch and bound (BB, B&B, or BnB) is
an algorithm design paradigm for discrete and combinatorial optimization problems, as well
as mathematical optimization. A branch-and-bound algorithm consists of a systematic
enumeration of candidate solutions by means of state space search. The Branch and Bound
method explores th branches of this tree, which represent subsets of the solution set. The
Branch and Bound method is represented in the form of tree diagram.
The Backtracking Solution can be optimized if we know a bound on best possible solution
subtree rooted with every node. If the best in subtree is worse than current best, we can simply
ignore this node and its subtrees. So we compute bound (best solution) for every node and
compare the bound with current best solution before exploring the node.
 11

1.2 INDUSTRY PROFILE:

Logistics involve managing the transfer of products from the place of their origin to the
place of their consumption. It includes activities such as material handling, warehousing,
packaging, transportation, shipping security, inventory management, supply chain
management, procurement, and customs service. Logistics and shipping is a part of the supply
chain and value chain in most industries. It is an essential component of the supply chain and
value chain for any successful business. All manufacturing companies need logistics and
shipping activities for the distribution of their products. Infrastructure development plays a
vital role in the economic growth and development of any countries. Transportation networks
such as Railroad, road transport, water transport, and air transport networks form the backbone
for any country to move ahead toward development. These transportation networks also play a
vital role in the Logistics and Shipping industry; and are the segments of the logistics and
shipping industry infrastructure.
Logistics sector comprises establishments primarily engaged in transporting and
warehousing goods as well as providing logistics services. It includes the four transportation
modes (trucking, rail, air and marine) as well as postal services, couriers, messengers,
warehousing and storage. The growth prospects of the logistics sector are closely linked to
economic growth and foreign trade. Booming retail trade was expected to provide a fillip to
the growth of the logistics industry. While growth of organized retail trade has slowed down,
the sector has not lost steam. India has a vast territory and hence, implementing a smooth supply
chain model poses a challenge.
Consider the case of food products in India. The Indian supply chain for food products is
characterised by extensive wastage and poor handling. The wastage occurs because of multiple
points of manual handling, inadequate packaging and cold storage facilities. The physical
wastage is one component of the inefficiency in the supply chain. There are other problems as
well, in terms of the deterioration in quality and the cost of intermediation in the food chain.
To avoid all this, there is need to have appropriate infrastructure for storage and transportation.
Thus, logistics plays an important role in any economy. As per the CII 2007 report, the
US$ 90 bn (2007) industry is expected to reach a size of US$ 125 bn by 2010 on account of
expanding domestic economy. This translates into a growth of nearly 12% per annum. The
 12

logistics segment can be broadly categorized into three segments– transportation, warehousing
and value add services.
LOGISTICS INFRASTRUCTURE IN INDIA:
Transportation is a key element in a logistics infrastructure. Adequate capacity and
reliability of transport infrastructure and services are important factors which contribute
towards the ability of the country to compete in the field of international trade and attract
foreign direct investment. It is necessary for the country of the size of India to create a policy
that encourages competitive pricing and coordination between alternative modes in order to
provide an integrated transport system that assures the mobility of goods at maximum
efficiency and minimum cost.
As for India, its infrastructure can be viewed as a major hindrance to the logistics business.
Despite being a large country with a landmass of 3.29 million square km, the Indian
infrastructure comprising roads, railways, seaports and airports is considered very poor as
compared with other developed and developing countries. The poor infrastructure and
inefficient transport services result in inefficient movement of freight and delays resulting in
enormous amount of time, and therefore money. Such inefficient and unreliable transport and
logistics systems make the country’s export less competitive. The overall Indian infrastructure
is rated 54th among the 59 countries in comparison to other developing countries.
The poor infrastructure and transportation performance in India is essentially due to some
underlying institutional problems. Firstly, the fragmentation and overlapping of responsibilities
among various government agencies confuse and limit accountability, and as a result, affect
the pressure on various agencies to perform. For example, in urban transport, many agencies
have a role but none assumes overall responsibility leading to poor policy and unclear
accountability. Secondly, resource mobilization is inadequate in India. Public investments in
transport have been stagnant and declining relative to GDP, and the input from private finance
continues to be very limited. The weak asset or system management in the country is the third
problem that affects the Indian’s transportation infrastructure sector. An efficient logistics
system reduces this cost , providing a competitive edge and propelling economic activity.
Infrastructure development plays a vital role in the economic growth and development of any
countries. Transportation networks such as Railroad, road transport, water transport, and air
transport networks form the backbone for any country to move ahead toward development.
 13

These transportation networks also play a vital role in the Logistics and Shipping industry; and
are the segments of the logistics and shipping industry infrastructure.
GENERAL CHARACTERISTICS OF INDIA LOGISTICS MARKET:
Generally, India’s logistics market is huge but unexploited. With the increasing
globalisation, logistics players in India have to face the challenges since worldwide sourcing
and deliveries requires global logistics support. According to a survey on the practices in
logistics industry in India, it was revealed that warehousing, inbound and outbound
transportation, custom clearing and forwarding are the most frequently outsourced activities in
India, activities such as packaging, fleet management and consolidation are gaining attention
and growing in popularity in the country and more and more companies are planning to use
3PL services in the future as an integrated set of services rather than for just movement of
material.
MOVING THE GOODS:
Whether the forwarder is acting for an importer or an exporter, the main service provided
is the movement of goods. The forwarder’s experience will enable the provision of advice on
the best routing (cheapest, quickest, safest), the best mode of transport (air, sea, road, rail),
Customs requirements, packing, insurance, security issues, and the myriad of regulations that
apply in both the country of origin and the country of destination.

TRANSPORTATION:
Freight forwarders are the link between the seller and the buyer. They may be contracted
to work for either party, and their key function will be to arrange for the movement of the goods
between the two. They will book space on the ship, aircraft or other transport mode, call
forward the goods at the appropriate time and collect them. They will liaise with their
agent/office overseas to co-ordinate delivery to the buyer. These actions may be influenced by
the method of transportation chosen.
By providing transport facilities one earns freight as revenues. Transportation can take
place through surface that is by road and rail, or one can use air or water transport depending
upon urgency and cost feasibility. Transportation accounts for almost 40% of the logistics cost.
 14

• Road freight industry is highly fragmented with single truck owners accounting for over
75% of trucking companies.
• Rails are operated by Indian Railways, a government undertaking. Till 2007,
Container Corporation was the only player who operated container trains. But in
2007, container rail freight services were privatized but still Concor, a government
undertaking, is the dominant player.
• Ocean or Sea freight has recently been witnessing robust growth with increase in
foreign trade. Olympics and booming emerging economies like China and India
supported growth of this segment with increase in transportation of iron ore, coking
coal, steel etc.
• Air freight segment accounts for a small pie of India's freight market but is growing at
a fast pace. Liberalisation and globalization has given a fillip to the growth of this
segment. Sophisticated machinery components, pharmaceutical dyes, fruits, vegetables,
flowers, fish and meat form part of air cargo.
DOCUMENTATION:
In all international trade there are documents to be prepared. A freight forwarder is
involved in either preparing most of these, or giving advice to the exporter/importer on those
documents which they must prepare. The current trend is, however, to reduce the number of
documents required. In particular, with the development of a ‘frontier free’ Europe, trade
within the EU States has become much easier with the abolition of Customs borders. In
addition, the growth of e-commerce and internet technology further reduces the need for paper
documents.
CUSTOMS:
Importers and exporters have a legal responsibility to declare and record all goods
which enter and depart the European Union. The preparation of import and export declarations
represents an important part of the forwarder’s service. Since 1993 Customs clearance has not
been required for goods moving within the EU, although there are procedures which may
require the forwarder’s involvement: for example, the collection, preparation and submission
of statistical information (Intrastat) or security declarations. Goods exported to third countries
(all countries outside the EU) are still subject to customs control, although systems are
constantly being simplified.
 15

PAYMENT OF CHARGES:
When a normal trading relationship has been established between the forwarder and the
customer, the forwarder will accept and pay all related charges on behalf of the customer. Thus
a trader requiring the services of airlines, shipping lines and numerous other transportation and
handling organisations will only receive one invoice from the forwarder. The forwarder can
sometimes arrange to collect the amount of the seller’s invoice, collecting cash on delivery
through overseas agents, or the carrier.
PACKING AND WAREHOUSING:
The packing of the goods for export is a complex task to ensure goods are protected
against the risks involved in their handling and the modes of transportation being used.
Consideration needs to be given to the climates and terrain of the countries through which the
consignments will be travelling. Too much heavy packing could prove costly for goods
travelling by air, for example. On the other hand, too little packing might prove a false
economy. Many forwarders provide a packing service for their customers, and the forwarder’s
expertise can save a customer a great deal of money. Warehousing and allied functions, such
as inventory control, can often be of value to the trader who may have limited space of their
own. Whether temporary or longer term storage, the forwarder will normally be able to arrange
this facility for his customer.
INSURANCE:
Insurance plays an important part in international trade. Goods in transit are exposed to
many risks and hazards. The prudent trader will always make sure that consignments are
insured against these risks. Professional risk takers, known as underwriters, accept possible
financial losses involved on payment of a premium, subject to terms and conditions. Freight
forwarders, not being the owner of the goods, do not have an insurable risk in the cargo and
therefore cannot cover the risks to cargo themselves. Exporters and importers should check
with their freight forwarder at the time of booking the cargo for shipment about insurance
cover. Freight forwarders who offer insurance can provide cover for their customer’s goods
providing the customer formally instructs the forwarder to do so in writing.
 16

FREIGHT FORWARDERS WORKING WITH INDUSTRY:

For those new to importing and exporting there is no substitute for planning a strategy
and obtaining advice. Most companies who begin to trade internationally will wish to use the
services of a third party, such as a freight forwarder, to advise on the movement of goods. There
are thousands of companies who promote themselves as international freight service providers,
and it is very important to select the right one. Freight forwarders have become more
sophisticated and aware of their customers’ needs. They have recognised that international
transport solutions are achieved not in isolation but in partnership with the customer. Against
a background of global trade and electronic communications, the forwarding industry operates
at all levels in the transport chain, providing a valuable service to companies large and small.
The different types of freight forwarding companies can be broadly divided into three
categories:
Local companies - These are generally small single office companies which tend to deal
with customers in the local area, or operate at a seaport or concentrating on particular types of
traffic.
National companies - Many forwarders have offices in the major ports and airports
throughout the country as well as in the largest industrial towns. They may also have
warehousing or handling depots from where they operate their own services. Such companies
will often have agents or correspondents overseas in the markets with which they operate.
International companies - The truly international company will have its own offices
overseas and offer a wide range of worldwide services. You should note that these divisions
are identified for ease of understanding.
TERMS OF SALE:
When goods are imported or exported they are normally subject to a contract between
a seller and a buyer. Part of that contract will determine what the price covers in relation to the
goods and the costs involved in transporting them between the parties to the contract.
INCOTERMS:
The purpose of Incoterms is to provide a set of international rules for the most
commonly-used terms in foreign trade. Thus, the uncertainties of various interpretations of
such terms in different countries may be avoided or reduced. Frequently parties to a contract
 17

are unaware of the different trading practices in their respective countries. This can give rise to
misunderstandings, dispute and possible legal action, with all the waste of time and money that
this entails. In order to remedy these problems the International Chamber of Commerce (ICC)
first published in 1936 a set of international rules for the interpretation of trade terms. These
rules were known as Incoterms 1936. Amendments and additions were later made, leading to
Incoterms.
TRENDS
Globalization and outsourcing are important trends that are currently witnessed in the
Logistics and Shipping industry. Both these approaches help logistics and shipping players
reduce their operational costs. Globalization and outsourcing are driven by the rapid growth in
international trade. Globalization helps the industry players in global expansion through global
distribution and marketing activities. This also provides players the competitive advantage in
the global level and exposure to the global competition. It also offers worldwide long and
complex supply chain to the logistics and shipping companies.
Outsourcing allows companies to involve more players in the supply chain, and this is
giving rise to third-party logistics (3PL) players and fourth-party logistics (4PL) players. It also
allows logistics and shipping companies to collaborate with other manufacturing companies
from different industries to provide logistics to the manufacturing companies. 3PL and 4PL
players are specialized in incorporated transportation and warehousing services. These
integrated services can be customized to meet the needs of companies from different industries.
The need to control logistics costs and the increasing need to focus on core competencies are
driving the companies to search for such 3PL and 4PL players and providers, which is another
trend witnessed in this industry.
VALUE CHAIN

The value chain of any industry lists all the activities from the procurement of a product to its
distribution to the customers. Thus logistics and shipping plays an important role in the value
chain of any industry. Service asset providers constitute the first link in the value chain of the
Logistics and Shipping industry. The players in this link are transporters, fleet
 18

owners/operators, communication providers, IT providers and warehousing and packaging

providers. This step includes activities such as identifying suppliers, material handling,
inventory control, and warehousing. Sometimes, 3PL and 4PL players handle material handling
and warehousing.
The next step in the chain includes infrastructure providers. It includes companies that
provide the infrastructure required for logistics and shipping. These companies provide ports,
airports, terminals, transport equipment, information and communication technology, IT
software and tracking solutions, automation services, etc. They also provide air transport, rail
transport, road transport, and water transport facilities and infrastructure for logistics and
shipping. Service providers form the next link in the value chain. This link includes logistics
companies, shipping companies, courier companies, cargo handlers, and automation
companies, and the services provided by these companies. Service users constitute the final
link in the value chain. These include all companies where logistics and shipping is a part of
the value chain.
INNOVATIVE EXPERIENCES OF LOGISTICS SECTOR:
There have been several instances of firms undertaking innovative re-design of their
logistics systems or deployment of interesting business models to enhance the effectiveness of
their networks in order to deliver value to their customers. Sometimes it was done to overcome
an inherent disadvantage that may exist in the supply chain. In this section, we present a few
such experiences both at the firm level and at the industry level, through brief caselets
highlighting their innovative contribution. They also represent the renewal process that is
transforming the logistics sector and the distribution strategy of firms.
Established at a time (in 1989) when firms in India hardly outsourced their logistics
requirements, Gati has transformed itself from a cargo movement company to become one of
the leading end-to-end logistics and supply chain solutions provider in India. Continuous
innovation and high end technological investments to improve service quality, speed and
efficiency can be ascribed as the reasons behind their success. It is staring to connect with mass
retail market in several cities through 1500 Customer Convenient Centres. It is also the first
Indian company to operate in the far-east market with its own subsidiary in Hong Kong. On
the service front, there have been several firsts in India by Gati – a money back guarantee on
cargo services, cash-on-delivery and a tollfree number for convenience of customers. Gati
 19

operates one of the largest road networks linking 594 districts out of a total of 602 districts in
India at a turnover of $104mn in 2005-2006. It covers 3.2 lakh4 -km every day with a fleet size
of 2000 trucks. Its automated shipment tracking ability has brought it closer to the customers -
for example, the SMS based tracking system has allowed the customers to continuously get an
update on the status of their consignment. Another feature also enables customers to get email
based conformation of any delivery.
Gati has also transformed the warehouse management practices in India with its modern
system, WMS - a web based warehouse management system that provides both functionality
and flexibility to customers in managing their warehouse operations. WMS enables Gati and
its customers to track inventory status in real time. Along with its transportation related
capabilities, this has allowed Gati to manage the entire outbound logistics (i.e., warehousing,
transport and dealer/retailer replenishment) of Blue Star for his home air-conditioning division.
Order processing times and shipping errors have decreased and customer service levels have
improved, as a consequence. Currently, Gati operates with 10 warehouses and plans to setup
another 25 over the next three years at an investment of $100mn. It is designing these new
warehouses with mechatronic systems that could lead to a paradigm shift in warehouse
management in India. It has implemented CRM and ERP systems, using IT to full advantage
delivering value to the customers.
The Kaira District Milk Cooperative Union or better known as AMUL was established
in 1946 in Anand in the western State of Gujarat with an aim to remove the intermediaries in
the milk procurement and distribution process and thereby increase return to milk farmers. The
milk farmers were mostly marginalized members of the society. They barely poured a few litres
of milk each day. They, however, depended on this for their livelihood and any money lost to
the middleman or to uncertainty in the environment meant a threat to their existence. Thus was
born AMUL (which means invaluable in Hindi).
The Story of AMUL is an extraordinary story of vision, effort and power of networks
for the benefit of the poor. From being a net importer of milk in 1947 when India became
independent, India has now emerged as the largest milk producer in the world. This remarkable
story has been scripted by a network of cooperatives called AMUL. The AMUL network is
coordinated by the Gujarat Cooperative Milk Marketing Federation (or GCMMF) which
markets milk and milk products that are produced by 12 Milk Unions (each having several
 20

factories) one of which is AMUL at Anand. The Unions are spread in twelve districts of
Gujarat. Each Union collects milk from farmers through cooperative Village Societies.
FREIGHT FORWARDING MARKET IN INDIA
Freight forwarding market in India is poised to grow at enormous rate at 2018. This
considerable growth in freight provided companies diversify their business to other logistics
segments. The main drivers of Indian Freight forwarding market are growth in International
Trade, Rapid Economic growth and FDI in Logistics, Improved Warehousing Infrastructure,
Diversification into Logistics Business, Growth in Containerized Cargo, rising
Competitiveness among domestic companies. The Challenges involved are Stiff Competition
from International Counterparts, Rising freight Costs, Complex Operation, Lack of lack skilled
manpower, Poor Infrastructure.
 21

1.3COMPANY PROFILE:
LOM Logistics India Pvt Ltd., takes great pleasure in offering its services in the area of
logistics thus contributing towards the growth of the nation. Started in the year 2004, LOM
logistics India Private Limited has today created made a mark for itself by offering cost-
effective logistic handling solutions. LOM is one stop source for all worldwide moving
services. Whether it’s project cargo’s, household goods, family pets, professional equipment
or personal vehicles, we have the resources, expertise and global coverage, to plan and co-
ordinate all the aspects of moving requirements. As the preferred supplier for various Fortune
100 companies and the first point of contact to increase supply chain efficiency in India, we
are very proud of our reputation and always strive to maintain it. With over 14 years in the
market with huge cumulative experience has enabled us to earn the trust of our clients. We act
as your extension and handle all the red tape and administrative work quickly and efficiently.
We offer a bouquet of services tailor made to match your needs both in terms of cost as well
as timely delivery with efficiency. It will be our pleasure to serve you.
LOM is renowed as one of India’s leading international logistics company. We believe
in simplifying the entire process of shifting and logistics handling internationally. We
understand the significance of supply chain, and that is why we provide customized solutions
and service plans to our clients based on their requirement and priorities. We hold pride in
delivering quality service and thorough monitoring across the market.
We are the service experts in the logistics industry. We deliver extreme satisfaction in
mobility for various industries. Here, we assure you a safe and speedy delivery. We have
derived an exclusive multimodal transportation route that defines the international reach of
cargo within the given timeframe. With our personalized plans and efficient supply chain in
India, we have been chosen as the preferred logistic service provider by Fortune 200
companies. Until today ,we have been consistent in our service delivery and strive to make this,
a peripheral process. At LOM, we do not stop at logistic handling by sea or air, we also
undertake the complete process of documentation, customs clearance ,volumetric cargo ,and
warehousing.
 22

LOGISTICS FREIGHT SERVICES AND CAPABILITIES:

Air Freight services:
LOM logistics India is known for offering reliable and efficient air-freight forwarding
service throughout the world, with an excellent network of operators who are available 24/7,
we promise a timely and cost effective delivery of goods to the desired destination.
Our team of air freight professional’s provide regular follow up for each and every
shipment that we carryout. Moreover ,our customers can be assured of real-time status reports
on all import and export air freight shipments at all times.
LOM will suggest the appropriate air services that is cost effective with timely
delivery, according to your delivery schedule through support of LOM air freight experts,
whether across the region or around the world.
Advantage LOM – competitive rates for your desired capacities and needs from the
specific leading freight services. LOM provides value added services , Viz., packing, crating
etc.
Ocean Freight Services:
LOM reliably move your Ocean Shipments on an average of around 600 containers
per month, from many destination across the globe, from and to India. LOM with strong
relationship with ocean carriers can obtain reliable space allocation at competitive rates,
o FCL / [Full Container Load]
o LCL [Less than Container Load]
o Consolidation and Break Bulk Booking
Road Transport
LOM Logistics India Pvt ltd integrated transportation and logistics service includes
Road Transportation Services that connects all major states in India in to a single network. As
most transport chains include trucking at either the beginning or the end.
We accomplish regular and scheduled product delivery to all cities across the nation.
Our dedicated team members follow specific methodologies in transporting fragile and
dangerous goods.
Having our own fleet of multipurpose trucks and trailers, Lom logistics India Pvt
ltd offers competitive pricing coupled with a reliable and world class quality road transportation
and distribution services within the India.
 23

Customs Clearance:
LOM experts will handle your customs clearance process - quick and effective to
reduce compliance risk and minimize cycle time. Our clearing team will ensure to pay
appropriate duties on tariffs. One of the major issues one faces today during the cargo clearance
at the customs desk. At LOM logistics, we have an aid for this too. We ensure quick and
accurate delivery of cargo goods forwarded through us. We are associated with custom
brokerage professionals that help us clear the customs process smoothly. Lom experts will
handle your customs clearance process with their quick and effectiveness to reduce compliance
risk, minimize cycle time. Our clearing team will ensure the customer will pay proper duty
according to tariffs.
Warehousing:
LOM sources right kind of warehouse space for your business needs. Control your
inventory and maximise your distribution potential. Get your preferred and flexible locations
and services as your desired needs.
o FTWZ
o ICD
o General warehouse
o Customs Bonded warehouse
LOM with a strong local presence in India can extend support to expand your supply chain
around the globe, now you are with one of the best Logistic service provider in the country.
LOM provides you comprehensive Logistics services within India.
Project Cargo:
LOM Logistics India can be a key to your successful project delivery. Cargo that
needs to move from one site, to another place, whether it's locally or globally, is often oversized
and out-of-gauge. Transportation of construction equipment, machinery, and other materials
are now at your timely reach. Yet to stay competitive by taking LOM advantage of its Service
and their expertise with their delivery options for your large industrial equipment. Whether you
need heavy haul trucking LOM Logistics India Services has the quality solutions to meet your
needs.
 24

The Opportunities for Foreign Entities through FTWZ

It’s a deemed foreign territory, FTWZ is also dry port in the country
• IEC (Import Export Code) is not required for registration to operate from FTWZ
• Foreign Entities, not holding any office / establishments in India. Foreign entities need
not posses registered documents from Regulatory Authority of Government of India,
Company affairs.
Big Opportunity to create Market in India
• International customers’ in specific, can have their direct stock point in India, for Indian
market as well as to focus on neighbouring countries, viz., Bangladesh / Sri Lanka /
Myanmar / Nepal.
• Customized warehouse to suit various kinds of Products
• Foreign entities have their opportunity to start their Exim Business in India within a
day or two by Just registering with us at LOM FTWZ.
• One stop customs clearance resource for Import and Export of Goods
• Deferred duty payment – up to desired period of importer/ consignee!!!
• Temporary removal of Cargo for Exhibitions/ Demonstrations can be availed without
paying Customs Duty and replace the Cargo back to the Zone with in a period of 120
days
• LOM – FTWZ offers timely and cost – effective delivery of shipments to customers.
Free trade warehousing zone
• The Free Trade and Warehousing Zones (FTWZ) is a special category of Special
Economic Zone and is governed by the provisions of the SEZ Act and the
Rules. FTWZ is designated as a deemed foreign territory and are envisaged to be
integrated zones.
• The Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special
Economic Zones with a focus on trading and warehousing. The Objective of Such a
Zone to create trade related infrastructure to facilitate import & Export .
• FTWZ offer services such as speedy delivery of cargo, one-stop for Customs clearance
capability; integrated solutions, such as packing management, sorting, inspection, re-
 25

invoicing, strapping and kitting, assembly of complete and semi-knocked down kits,
and taxation benefits.
Free trade warehousing zone (FTWZ) Overview
OBJECTIVE
The objective of FTWZ is to create trade-related infrastructure to facilitate the import
and export of goods and services with freedom to carry out trade transactions.
CONCEPT
FTWZ would be a key link in Logistic and Global Supply Chain-servicing both India
and the Globe as international trading hubs.
ACTIVITY
• Warehousing for various kinds of products
• Handling and Transportation, Machine Handling Equipment,
• All related utilities-telecom, power, water, etc.,
• One stop clearance of Import and Export of goods
Permissible value added services
• Package management
• QualityCheck
• Reverse logistics, Re-invoicing
• Kitting of CKD and SKD kits
• Pick & pack, Kitting
• Bar-coding
• Labeling & Re-labeling, MRP
• Bottling
• Polishing
• Display
RELOCATION
With LOM logistics India Private Limited relocating to a new place is an easy task. We
have the right resource, worldwide coverage and well-designed plans to make our client’s
shifting smooth process. Be it household items, personal vehicle or professional equipment, we
 26

create a plan that suits your requirement and proceed with the execution. LOM India holds 12
years experience in relocating internationally.
CARGO INSURANCE
LOM Logistics India believes in a safe and secure delivery of cargo goods .But we also
need to acknowledge the risks involved in transportation. LOM has derived a comprehensive
cargo insurance cover on onshore and offshore exposed property and it also covers loss or
destruction of cargo goods on any mode of transportation used to deliver the shipment. All
damages can be insured except for the listed cases that don’t fall under the policy. The client
should specifically opt for risk-related insurance such as fire, transport accident or ship
drowning.
FUMIGATION
To deliver the shipment safe and secure, all the goods require special care during the
process of packing and transportation. At LOM logistics India, we do not process any shipment
without undergoing the fumigation process. The goods can be affected by vermin, which can
cause infection during the mobility of cargo goods. This process is essential because this
infection through vermin on goods made up of wood and cloth can cause detrimental effects to
the consumers.
There are different techniques of conducting a fumigation process. They are
• Empty Container Fumigation
• Antifungal Treatment
• Vessel Fumigation
• Heat Treatment
• Vessel Treatment and much more.
 27

1.4 REVIEW OF LITERATURE

Thin-Yin Leong , David Simchi-Levi (2001),The study reveals that the container has
number of locations in the yard where it can be stored. The problem is that the time taken to
allocate the container to yard location and to dispatch vehicles should be minimal. To find out
the minimal time and also to analyse the worst case the algorithm used in this research is
heuristic algorithm. This algorithm is used to analyse the worst case and the computational
time. Identifying routes for each vehicle helps to avoid port congestion.
Dirk Steenken ,Robert Stahlbock (2004),The study focuses on the container terminal
operations.As there is increasing in containerization the number of sea port container terminals
and competition among them have become quite remarkable.Also this paper classifies the
logistics process and operations. Integrated optimization is becoming more and more
relevant.Simulation is used in this research to improve the performance and terminal operation.
Chung-Lun Li (2004),The study explores that there is problem in time while loading and
unloading operation is done in container terminal. While placing number of containers in
vehicle it takes more time .To avoid time issues the author used optimal algorithm which makes
the operation efficient and time saving. Loading and Unloading operations is crucial because
there is chances of occuring damage to the container if proper lashing is not done.
W.C.Ng, K.L.Mak (2005),The study states that if there is problem in loading and
unloading operation there is the possibility of halt and lag in container occurs. Yard cranes is
one of the important container handling equipment for loading and unloading containers. So
the schedules to be set up in a better manner. The large queues to be avoided. The equipment
should be tested frequently and maintenance should be followed according to the standard.The
mixed integrated program is used to solve the problem like handling jobs with different ready
time.
Barry l. Nelson, Jonathan Wing Cheong Ng (2005),The study examines that within
minimum period of time the uploading and discharging of containers to and from the ship to
be done. For this research the researcher has developed the heuristic algorithm. This algorithm
helps to identify the absolute and worst – case performance. Thus the researcher in this research
finds out the simple and easily implemented policies for vehicle dispatching.
 28

Soner Esmer(2008) ,The main aim of the study is to measure the performance of the
container terminal operation to avoid delays factors which results in halt and lag. Port
efficiency is an important operation to avoid delays like vehicles standing in queue. The loading
and unloading operation should be done effectively to reach container in time. Also the study
includes `performance indicators like productivity measures,utilization and service measures
should be done effectively.
Tavakkoli – Moghaddam , Makui (2009),The study states that to solve the quay crane
problems in container port the researcher use efficient algorithm in this research. The main
reason for focusing on quay crane problem is to minimise the make span of vessels. To sort out
the quay crane scheduling problem the sequence of loading and unloading operations should
be determined in such a way that the completion time of a ship operation is minimised.
Niels lang,Albert Veenstra(2010),The study examines that halt and lag in container
occurs due to delay in arrival of vessel and resource underutilization. Arrival planning
strategies is used in this research to manage the undesirable effects. Arrival Planning strategy
is used to speed up the vehicle and to utilize the resource in a proper manner. By using arrival
planning strategy the system cost gets reduced.
Ilaria Vacca, Matteo Salani(2010),The study focuses on the container terminal
operation. Particularly this research focuses on the traffic congestion in the yard and the tactical
planning of operations. The hierarchical vs integrated approaches is used on decision problems
like Tactical Berth Allocation Problem and Quay crane Problem. Computational results
concludes that which approach provides more efficient results.
Amir Saeed Nooramin(2011),The study explores that by using six sigma methodology
the trucks congestions has been minimized. Also by using this methodology the average
number of trucks in queues has been reduced and also reduces the average time. The model is
used to find problems, defects and barriers and also proposes the operational solutions for
reducing the weighting time.
Hassan jafari(2013),The study founds that the certain factors are identified by the daily
census of operation in halt and lag in container. The datas are collected by the continuous
monitoring of the operation to improve the effectiveness and reduces the delay that occurs in
operation. By using FMEA model in this research some suggestions like repair and
maintenance should be done according to the manufacturer’s standard ,old equipments should
 29

be avoided. The main aim of the study is to prioritize the causes and reduces the halt and lag
in container.
Sayareh and Ahouei(2013),The study states that the delays of cargo handling in
marine is crucial. As cargos are concerned varities of cargos are moved and handled in marine.
The major problem faced by the marine shipment is the loading and unloading operation. Also
the delay occurs due to overloading of cargo or wrong cargo storage. Some multi criterion
decision making technique is used to solve these kind of issues. According to this research the
delays can be reduced by using FMEA(Failure Mode and Effect Analysis)in conjunction with
cause and effect diagram.
Nasser Saeidi, Hassan jafari(2013),The study focuses on the identification and
prioritization of causes of halt and lag in container handling operation. There are many causes
which leads to lag in container handling operation. They are improper storage of goods,
improper packing of goods etc. Empty container survey is important to avoid the fraudulent
activity. Also the research identifies that the technical deficieny and malfunction of vertical
and horizontal equipments possess the highest number of risk priority while other factors has
the least number.
Amerkaabi,Ebrahim (2013),The study states that the comparative analysis is done in
this research to reduce the defectiveness in container handling operation. Defectiveness of
improper lashing,defectiveness of horizontal L/U equipment,Incompleteness of documents all
these causes delay in container handling operation.To avoid these kind of delays ANP and
TOPSIS method is used in this study to do comparative analysis.
Hassan jafari(2013),The main of the research is that the study is conducted to increase
the efficiency rate of container loading and unloading operation.Using six sigma methodology
the performance measurement can be analysed and also six sigma enables to reduces error and
waste saving also increases the competitiveness.
Hassan Jafari , Hamid Reza Hallafi (2013),The study states that the Multi criterion
decision making technique is used to resolve the delay in container handling operation . To
manage and reduce the delay the certain factors are evaluated and according to the importance
of the factor the rating is given. The MCDM used in this research is TOPSIS GREY METHOD.
By using this method the researcher concludes that lack of modern technology ,lack of adequate
 30

and specialized equipment are the one of the reasons for halt and lag in container handling
operation.
Hassan jafari , Nasser Saeidi (2013),The study states that the factors causing
reduction of performance in container handling operation should be prioritized by the TOPSIS
method. Crucial importance is given to L/U operation since such operations through
appropriate modern method is necessary. Measuring port efficiency is important because it
cause customer satisfaction, demand increase and profitability rise.
Samuel Monday Nyema(2014),The study reveals that there are certain factors which
influence the conterminal terminals. Those factors also cause delay in halt and lag in container
handling operation.The factors includes reducing berth times and delay of container ships,
dwell time,container cargo,truk turnaround time. The main aim of the study is to evaluate the
factors which influence the efficiency of container terminal. The efficiency is evaluated using
Data Envelopment Analysis and likert scale is used to evaluate the performance of the
operation.
Wang,Felix T.S. Chan(2014),The study examines that Storage Allocation
Problem(STP) and yard truck scheduling are two important problems which causes delay in
container terminals. This study focuses on integrating YTP and STP as a whole and tries to
reduces the travelling time. The Genetic Algorithm is used to minimize the travelling time and
delay of yard trucks in container.
Ebrahim Sharaf Alma Wsheki, Muhammad Zaly Shah(2015),The aim of the study
is to measure the technical efficien,cy of container terminals. The method used to identify the
technical efficiency is Data Envelopment Analysis (DEA) and the slack variable is used to
identify the inefficacies in the terminal. This paper states that for steady development in
operational efficiency the information used should be valuable for better efficiency.
Jinghui Tao, Yuzhuo Qiu(2015),The study states that the are many different factors
that affect the service efficiency in container terminals. This study focus on the vehicle
dispatching problem which finds a loading or unloading task in container terminals. If vehicle
instability occurs the delay happens in halt and lag in container. The simulation optimization
method is incorporated to improve the effectiveness and saves ship serving time.
Ning Zhao,Mengjue Xia(2015),The study examines that storage allocation is an
important factor of container handling operation.Improper storage creates delay in container
 31

handling operation and also the more vessels standing in queue.Thus this makes the vessel
handling time lengthened. To identify the storage allocation problem simulation model is used.
Adi Budipriyanto, Budisantoso Wirjodirdjo (2015),The study states that the berth
allocation is one of the important activities in the container terminal. Change in berth plan may
affect the other operational activities and leads to delay in the completion of activities. The
conceptual model along with collaborative strategy is used in this research so that the total
handling time can be reduced .Due to some uncertainties the changes may happens in the arrival
time of vessel. Planning should done accordingly so that the uncertain factors should not results
in major cause.
Arbia Hlali(2018),The study states that the technical efficiency of container port has
been evaluated using DAE method and stochastic frontier analysis. Using this method
comparison can be done between ports to identify which port is efficient and which is
inefficient. Container halt and lag occurs frequently if port is inefficient. To avoid inefficiencies
the DAE method gives best result.
Homayon Yousefi ,Hassan jafari(2018),The research paper explores to identify the
causes of halt and lag in container handling operation. The identified factors in this study is
that the halt and lag arises due to improper storage of goods, improper packing, vehicle
breakdown. To minimize these kind of issues the proper planning should be done in advance.
The neck of the moment planning is not advisable. The data gathering is used has the main
resource.
Ya Xu,Kelei Xue(2018),The study reveals that due to unsustainable environment the
berthing problems occurs. The main aim of the research is to improve the operational
performance of container and should be cost efficient. Some inefficiencies causes traffic
limitations which is due to channel width or due to bad weather. This may leads to container
halt and extra charges are claimed during halting period.
Miguel Hervas-Peralta, Sara poveda-Reyes (2019),The main aim of the study is to
improve the performance of the operation and to improve the functionalities of terminal
operating system. If the terminal operating system performance is better ,then the overall
operation goes in the smooth manner. Thus terminal operating system functionalities should be
improved frequently. The main aim of the study is to reduce the port congestion.
 32

Noorul Shaiful Fitri Abdul Rahman, Mohammad khairuddin Othman(2019),The

study examines that the delay factors could affect the effectiveness of the cargo operartio due
to some uncertainities. Miscellaneous factor is the one of the most significant factor in causing
the delay operation. To avoid these delays the major contribution is towards the practical
technique and valuable findings which is used to measure the factors that affect the operational
performance.
Peter Shobayo and Edwin van Hassel (2019),The study reveals that the coordination
problem in inland barging exist in different ways like , the first one being the long stay that
exist at the port and the second one deals with the inadequate optimum terminal planning of
sea vessels and barges. This study contributes the effective measures to reduce the barge
congestion problem in large sea ports.
T. Jonker , M.B. Duinkerken (2019), The study focus on the determination of
performance of container terminal. Hybrid flow shop model is used in this research since it
provides the coordinated schedule to achieve productivity. Simulation Annealing algorithm is
used to balances the solution quality and computational time.

Mohammad Khairuddin Othman, Noorul Shaiful (2020), The study aims to identify
the main factors that are contributing to the imbalance to the cargo. Imbalance in cargo flows
whether it is deficit or surplus it might cause severe impact in the operation and port
performance. According to the result ,researchers says economic factors are the main
contributors to these imbalances,followed by other factors.

Kuo-Cheng Kuo,Wen-Min Lu (2020),The study reveals that the productivity is the

one of the vital factor for port to develop competitiveness and market potential. To measure
the performance the Data Envelopment Analysis technique is used to measure the inefficiencies
caused due to some sudden instabilities.

Qi Zhang, Adjei Courage Kwabla (2020), The study focus on minimising the working
time of loading and unloading equipment and the stay time.To solve these kind of issue the
genetic algorithm with chromosome feasibility is designed to obtain the optimal schedule time
for trucks. And also this thesis states the types of container and solves the complexity of
connection problem occurring in the container terminal.
 33

Xiaohuan Lv, Jian Gang Jin (2020),The study states that some unforeseen incidents
like delay, equipment breakdown may affect the berth allocation probably. To avoid these kind
of issues mixed integer programming model is developed to adjust these problems in container
terminal. Also Optimization heuristic method is implemented in this thesis to find near-optimal
solutions under large problem.
 34

1.5 NEED FOR THE STUDY

Due to uncertainties like weather condition at the time of loading, no space at berth,
vehicle instability ,improper storage of goods and improper packing results in transit delay
and makes the operation quite complex. Depending on the severity of the detected violation
the time delay may occurs due to damage of vehicles, sudden instabilities like breakdown
requires long time to get back to the normal conditions The all the above factors should be
evaluated and ranked accordingly using AHP method so that it help us to find the most
significant delay factor that cause the delay creation in the container handling operation.
To provide the cost effective solution the proper planning and continuous tracking should
be done to improve the operational performance of the container. To address berth
scheduling problems like no space at berth and late arrival of ship may also results in halt
and lag in container which might cause delay problem and lack the effectiveness in the
container handling operation. The Berthing problems are rectified by using job shop
scheduling in which Branch and Bound method yields optimal solution. AHP is used to
assess the factors like port, ship, cargo owners and miscellaneous which causes the
reduction in cargo handling operation and provides the decision to overcome these issues.
 35

1.6 OBJECTIVES OF THE STUDY

• To measure the effectiveness of halt and lag in container handling operation.
• To improve the effectiveness in this study the delays in cargo handling operations
should be reduced
• To minimise the transit delay in container handling operation.
• To measure the factors that affects the operational performance.
• To identify and assess the factors causing reduction of performance in container
handling operation.
• To provide cost efficient solution to improve the operational performance of container
terminals.
 36

1.7SCOPE OF THE STUDY

The study summarizes to measure the effectiveness of halt and lag in container
handling operation. By applying AHP in this study, Port was determined to be the most
significant factors causing the delays in container handling operation. This paper also
highlights the delay factors that causes halt and lag in container. The deficiency of loading
and unloading is the most significant delay factor which takes the place of rank 1in the
evaluation of Analytical Hierarchical Process (AHP) method results in halt and lag in the
container .The findings of this study helps to strengthen the shipping and port system
through scientific analysis. It contributes an insight to reduce the burden of extra cost of
shippers and shipping companies as well as to maximize the profit by taking proper
decision with consideration of the core factors. This study contributes the practical
technique and valuable findings to the port where it may alert the port to measure the factors
that affects their operational performance. This technique is also useful to assist the port
decision – makers in their decision-making process. Hence port can prepare the potential
solution to control the influence of the contributors. Job shop scheduling using branch and
bound method is used so that the transit delay can be reduced by selecting the best
sequencing order.
 37

1.8RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may be
understand as a science of studying how research is done scientifically. In this we study the
various step that generally adopted by the researcher in study.
RESEARCH DESIGN
A research design means the arrangement of conditions for collection and analysis of
data in a fashion which aspires to combine relevance to the research purpose. As such the
design consists of an overview of what the researcher will do from writing the hypothesis and
its operational significance to the final analysis of data. A research design is utilized to structure
the research, to indicate that all the major elements of the research have been designed to work
together.
ANALYTICAL RESEARCH
Analytical research analyse relationship and explains how it occurs. It not only describes
characteristics but also analyse and explain how it is happening. The past data is used in this
research. It is a type of research that utilizes critical thinking to find out facts and from obtained
solution it helps us to develop solutions in further more ways.
SOURCES OF DATA COLLECTION
The data will be collected by the following method.
SECONDARY DATA
Data that has previously been collected (primary data) that is utilized by a person other
than the one who collected the data. Secondary data is often used in social and economic
analysis, especially when access to primary data is unavailable .It is time saving and it helps to
improve the understanding of the problem.
THEORETICAL FRAMEWORK
• Analytical hierarchy process
METHOD
• Branch and Bound method
 38

ANALYTICAL HIERARCHY PROCESS (AHP)

This study incorporates with an Analytical Hierarchy Process (AHP) method for the
analysis of the data collected. This method is used to rank factors in the order of preference
order from the most significant to the less significant factors. AHP method is one of the multi-
criteria decision-making approaches which use a hierarchizing process system to carry out a
wide-ranging evaluation and final decision on one of the causes of a particular problem. It is a
method that can be used to analyse qualitative data. This approach basically points out a set of
elements which are mutually related in the problem investigated.
BRANCH AND BOUND METHOD:
In this paper a new branch and bound method for the job-shop scheduling problem is
presented. A generalization of a branching scheme which has successfully been applied to one-
machine problems with release-dates and due-dates. In this paper a new branch and bound
algorithm for the job-shop scheduling is presented. The problem of scheduling jobs in a general
job-shop to minimize the maximum completion time a Branch and Bound method is proposed.
 39

1.9 LIMITATIONS OF THE STUDY

• The restricted timings becomes difficult for planning the operational process.
• Cost is an important factor to improve the efficiency in operation.
• The overloading of cargo in container results in container damage and time lag in the
operation.
• The study may lack generalisation.
• Controlling the incompetency in operation will reduce halt and lag in container
handling operation.
• Miscellaneous Problems in this study can be controlled only through periodic
inspection.
 40

CHAPTER -2
DATA ANALYSIS AND INTERPRETATION
ANALYTICAL HIERARCHY PROCESS
For data collection process, AHP method is incorporated with the pairwise comparison
method to produce a rating scale format with the aim of getting qualified judgments on the
particular elements evaluated. The qualified judgments are analysed using matrix mathematical
structure where the judgments on pairs of attribute Ai and Aj are represented by a n x n matrix
A as shown in Equation 1
1 𝑎𝑎12 𝑎𝑎1𝑛𝑛
A=aij= � 1/𝑎𝑎12 1 𝑎𝑎2𝑛𝑛 � (1)
1/𝑎𝑎1𝑛𝑛 1/𝑎𝑎2𝑛𝑛 1

where i, j = 1,2, 3…, n and each aij is the relative importance of attribute Ai to attribute Aj.
The weight vector indicates the priority of each element in the pair-wise comparison matrix in
terms of its overall contribution to the decision-making process. Such a weight value can be
calculated using the following Equation 2.
𝑛𝑛
wk = 1/n � �𝑎𝑎𝑘𝑘𝑘𝑘 / ∑𝑛𝑛1=1 𝑎𝑎𝑖𝑖𝑖𝑖 � (k=1,2,3,…,n) (2)
𝑗𝑗=1

where aij stands for the entry of row i and column j in a comparison matrix of order n. Then,
the consistency ratio (CR) can be calculated using Equation 3 for determining the consistency
of the pair-wise comparison matrix. While, RI is the random index for the matrix size, A., and
the RI value has shown in Table 1

CR = CI/RI (3)

Table 1
Random index (RI) table (Satty table)
Table 2.1.1

n 1 2 3 4 5 6 7 8 9
RI 0 0 0.58 0.9 1.12 1.24 1.32 1.41 1.45

Next, the Consistency Index (CI) will be computed using Equation 4 as follows
 41

CI=𝜆𝜆max-n/n-1 (n=1,2,3…k,matrix size) (4)

Then, the 𝜆𝜆max is a maximum eigen value of n x n comparison matrix A that is calculated as
follows.
𝑛𝑛
𝜆𝜆max = � �∑𝑛𝑛𝑘𝑘=1 𝑤𝑤𝑘𝑘 𝑎𝑎𝑗𝑗𝑗𝑗/ 𝑤𝑤𝑗𝑗 � (5)
𝑗𝑗=1

where, wk = the weight value of specific criterion, ajk= the pair-wise criterion base on specific
row and column, wj. = the weight value of criterion. Then, the consistency of the pair-wise
comparison needs to be evaluated. A consistency process can be performed by using a
consistency ratio (CR). CR is designed in a way that a value greater than 0.10 will indicates an
inconsistency in pair-wise comparison. However, if CR is determined 0.10 or less, the
consistency of the pair-wise comparisons is considered reasonable. Meanwhile, if the
consistency check fails to reach the required level, then the judgements to the comparison
matrix need to be re-examined.
Basically, the preferences ranking order are the results from the AHP method which
is ranked based on the weightage values calculated from the pairwise comparison scale in
respect to the consistent judgements. Any inconsistent judgements can be detected using the
AHP by calculating the consistency ratio of the pairwise comparison before the weightage is
determined in order to ensure that the preference is consistent and valid. It is the reason why
this method enables comparison of criteria with respect to a criterion in the nature of the pair-
wise comparison mode. The reason of using AHP method in this study is that it is a clear,
straightforward and well-documented method. Besides, AHP helps to capture both subjective
and objective evaluation measures. AHP help to reduce bias in decision making by providing
a useful mechanism for checking the consistency of the evaluation measures and alternatives.
In addition, it supports group decision-making through consensus by calculating the geometric
mean of the individual pairwise comparisons, which is the approach of this study. This study
can be considered has a strong information that can reduce the level of uncertainty or errors in
the analysis process. Despite of that, the study only incorporated a simple hierarchical model
in which not contribute to any significant inconsistency of the evaluations.
 42

STEP 1: DEVELOP A HIERARCHY MODEL OF THE STUDY

A test was conducted to evaluate the delay factors. Firstly, the factors of this study
were structured by forming a hierarchical model for the analysis process. The model was
basically consisting of three levels, named as goal (first level), the main factors (secondary
level) and sub-factors (tertiary level). Based on the hierarchical structured model, each main
factor was grouped with a number of sub-factors as the underlying elements that can influence
the contribution of the main factor. The hierarchical model of this study is shown in Figure
1.Figure 1 generally indicates the links between the elements of upper level and those in lower
levels. The links of the elements highlighted was basically identified by using the literature
survey.

FIG 2.1.1: MODEL DEVELOPMENT ON STUDYING DELAY FACTORS OF CARGO

OPERATION.
 43

STEP 2: DATA COLLECTION USING PAIRWISE COMPARISON

By considering the critical success factors pair wise comparison is made and the
priorities among the hierarchy is established. A pairwise comparison matrix for each criteria is
developed. The criteria are evaluated using the rating scale as shown in the table 2.
Table 2
RATING SCALE FOR PAIRWISE COMPARISON
Table 2.1.2
SCALE NUMERIC VALUE
Equally important 1
Fairly important 3
Moderately important 5
Strongly important 7
Extremely important 9
Values for inverse comparison 2,4,6,8

STEP 3 : TABULATE THE PAIRWISE COMPARISON VALUES OF

CRITERIA INTO THE PAIRWISE COMPARISON MATRIX.
The pairwise comparison values of criteria evaluated in Step 2 were then determined. In this
step, the values were averaged and tabulated into the pairwise comparison matrix as
according to Equation 1.
Table 3
PAIRWISE COMPARISON VALUES OF MAIN CRITERIA
Table 2.1.3

CRITERIAS PORT SHIP CARGO OWNERS MISCELLANEOUS

PORT 1 9 9 9
SHIP 0.11 1 7 5
CARGO OWNERS 0.11 0.14 1 3
MISCELLANEOUS 0.11 0.2 0.33 1
TOTAL 1.33 10.34 17.33 18
 44

Meanwhile in case of sub-criteria, the similar calculation was also applied to calculate their
pairwise comparison values.
STEP-4 CALCULATE THE RELATIVE WEIGHTS OF THE CRITERIA
AND SUB-CRITERIA
In this step, the relative weight (eigenvalue) of each criterion and sub criterion was calculated
from the pairwise comparison matrix values (in Step 3) using Equation 2. The sample
calculation of the relative weights of the criteria and sub-criteria is shown as follows, by taking
main criterion ‘Port’ as the example.
Main criterion of Port =1/1.33=0.75
The relative weight values calculated for all criteria are summarized in Table 4.
Table 4
RELATIVE WEIGHTS OF MAIN CRITERIA
Table 2.1.4

CRITERIAS PORT SHIP CARGO OWNERS MISCELLANEOUS

PORT 0.75 0.87 0.51 0.5

SHIP 0.08 0.96 0.40 0.35
CARGO OWNERS 0.08 0.01 0.06 0.15
MISCELLANEOUS 0.08 0.01 0.02 0.05

In accordance to the calculation applied for the main criteria, similar calculation was also
applied to calculate the relative weights of the sub criteria involved.
STEP 5: DETERMINE THE NORMALIZED WEIGHTS OF THE
CRITERIA AND SUB CRITERIA
The normalized weight (eigenvector) of the criteria and sub-criteria basically indicates the
relative importance of the criterion being evaluated. In that case, to determine the importance
level of the criterion or sub criterion involved, the normalized weights of each criterion or sub
criterion can be obtained by using Equation 2. Taking the main criterion ‘Port’ as the example,
the normalized weight of criteria can be determined as follows.
 45

Main criterion of ‘Port’

=0.75+0.87+0.52+0.5/4=0.66
Similar calculation was applied to determine the normalized weights of all criteria and sub-
criteria that involved in this study. The normalized weight values of all the criteria and sub-
criteria calculated in this step are summarized in Table 5.
Table 5
NORMALIZED WEIGHTS OF CRITERIA AND SUB CRITERIA
Table 2.1.5
MAIN CRITERIA NORMALIZED SUB-CRITERIA NORMALIZED
WEIGTH WEIGHT
PORT 0.66 Deficiency of 0.58
loading and
unloading
equipment(L/U)
Problems with 0.16
customs and
formalities
Improper storage 0.18
for cargo allocation
Labour issues 0.08
SHIP 0.21
Deficiency of ship’s 0.9
equipment
Late ship arrival at 0.1
port
 46

CARGO OWNERS 0.08

Administrative and 0.76
financial issue
Unpreparedness of 0.19
cargo owners
Shortage of trucks 0.06

MISCELLANEOUS 0.05
Foul weather and 0.73
tide prediction
Incompetence of 0.17
transport equipment
Safety issue 0.10

STEP 6 : CHECK THE CONSISTENCY OF COMPARISON MATRIX

In this step, the consistency of the comparison matrix is checked to measure the level
of reliability of the results. This is because comparisons made using AHP method are subjective
and the acceptability of judgements is basically determined by checking the consistency value
of the judgements received. The checking of the consistency value is referred to the consistency
ratio (CR) value. According to Satty, the CR value is recommended to be below 0.1 in order to
be acceptable as it is nearly consistent. If it is more than 0.1, then the inconsistency of the
judgements is too large, and it could lead to error of the results. Before the CR value can be
determined using Equation 3, the value of consistency index, CI, should be known in the first
place. However, to get the CI value, the 𝜆𝜆max also need to be determined. Using Equation 5,𝜆𝜆max
of comparison matrix of the main criteria and sub-criteria calculated are shown in Table 6 .
 47

Table 6
𝝀𝝀max OF COMPARISON MATRIX OF THE MAIN CRITERIA AND SUB
CRITERIA
Table 2.1.6
COMPARISON MATRIX 𝝀𝝀max VALUE
Main criteria 0.99
Sub criterion for criterion ‘Port’ 1.02
Sub criterion for criterion ‘Ship’ 1
Sub criterion for criterion ‘Cargo Owners’ 1.01
Sub criterion for criterion ‘Miscellaneous’ 0.99

After obtaining the 𝜆𝜆max value, then the CI value can be computed using Equation 4 as follows,
by taking the λmax value of main criteria as the example.
Consistency Index (CI) of main criteria
CI = 𝝀𝝀max - n/ n-1
= (0.99-4)/ (4-1) = -3.01/3 = - 1.00
Since the CI value has been known, then the CR value can be calculated using Equation 3, to
check the level of consistency of the comparison matrix. The value of RI can be referred to
Table 1.
Consistency ratio (CR) of main criteria = -1.00/0.9 = -1.11
The consistency ratio (CR) of main criteria calculated was -1.11, which is less than 0.1. Based
on such value, the judgements provided by the experts was considered as reasonably consistent
and acceptable. The CR values of all the sub-criteria were also recorded to have an acceptable
consistency level, which is less than 0.1. The values of CR for all the sub criteria are
summarised in Table 7.
 48

Table 7
THE VALUES OF CR FOR CRITERIA AND SUB CRITERIA
Table 2.1.7
COMPARISON MATRIX CR VALUE
Main criteria -1.11
Sub-criteria for criterion ‘Port’ -1.11
Sub criteria for criterion ‘Ships’ -1
Sub criteria for criterion ‘Cargo owners’ -1.72
Sub criteria for criterion ‘Miscellaneous’ -1.73

Similar calculation steps applied to the main criteria have also been applied to check the CR
values of sub-criteria’ comparison matrixes.
STEP 7 : FINALISE THE GLOBAL NORMALIZED WEIGHT AND
RANK OF THE MAIN CRITERIA AND SUB – CRITERIA
The global normalized weight values of the main criteria and sub criteria can be finalised once
the CR values of criteria and sub-criteria have been considered consistent and at the acceptable
level. In this step, the global normalized weights of the main criteria were similar to the local
normalized weights determined in Step 5, as shown in Table 8.
Table 8
GLOBAL NORMALIZED WEIGHTS OF THE MAIN CRITERIA
Table 2.1.8
MAIN CRITERIA GLOBAL WEIGHT PERCENTAGE (%) RANK
Port 0.66 66% 1
Ships 0.21 21% 2
Cargo owners 0.08 8% 3
Miscellaneous 0.05 5% 4
 49

Despite of that, the global normalized weight values of the sub-criteria need to be finalised by
multiplying the local normalized weights of main criteria and the local normalised weight of
sub-criteria of each respective group. The example of the calculation is shown as follows:

Global normalized weight of sub-criteria ‘Deficiency of L/U Equipment’

= local normalised weights of main criterion ‘Port’ x local normalised weight of sub-criterion
‘Deficiency of L/U Equipment’

= 0.66 X 0.58

= 0.38

Similar calculation was done to all the sub-criteria and the weight values of the sub-criteria are
summarized as in Table 9.
 50

Table 9
GLOBAL NORMALIZED WEIGHTS OF THE SUB CRITERIA
Table2.1.9
MAIN CRITERIA SUB CRITERIA GLOBAL PERCENTAGE RANK
WEIGHT (%)
PORT Deficiency of 0.38 38% 1
loading and
unloading
(L/U)
equipment
Problems with 0.11 11% 4
customs and
formalities
Improper
storage of 0.12 12% 3
Cargo
allocation
Labour issues 0.05 5% 6
SHIP Deficiency of 0.19 19% 2
ship’s
equipment
Late ship 0.02 2% 8
arrival at port
CARGO OWNERS Administrative 0.06 6% 5
and financial
issues
Unpreparedness 0.02 2% 9
of cargo owners
Shortage of 0.01 1% 11
trucks
 51

MISCELLANEOUS Foul weather 0.04 4% 7

and tide
prediction
Incompetence 0.01 1% 12
of transport
equipment
Safety issue 0.02 2% 10

INTERPRETATION OF AHP:
Table 10
AHP SCALE AND ITS DESCRIPTION
Table 2.1.0
INTENSITY OF DEFINITION EXPLANATION
IMPORTANCE
1 Equal Importance Two activities contribute
equally to the objective
3 Weak importance of one over another Experience and judgement
slightly favour one activity
over another
5 Essential or strong importance Experience and Judgement
strongly favour one activity
over another
7 Demonstrated importance An activity is strongly
favoured and its dominance
is demonstrated in practice
9 Absolute importance The evidence favouring one
activity over another is of the
highest possible order of
affirmation
2,4,6,8 Intermediate values between the two When compromise is needed
 52

Applying AHP method ,the present research studied the main causes of halt and lag in
measuring the effectiveness of the container.The research has accomplished in seven steps
during which the halt and lag creation in Loading and Unloading operation is studied.Based on
the Port, ship, cargo owners and miscellaneous criterias the deficiency of loading and unloading
equipment,Deficiency of ship’s equipment,Improper storage of allocation,Deficiencyof ship’s
,Unpreparedeness of cargo owners,Financial and administrative matters have been identified
as important factors in creation of delay in container handling operation which leads to halt and
lag in the operation.The factors are ranked accordingly with the consideration of above
table2.1.0
Based on the preferences vector in table 08 and table 09 , the above 4 criterias and 12
sub-criterias are ranked and more preference is given for ‘Port’ and least importance for
“Miscellaneous” in criteria and more importance is given for“Deficiency of Loading and
Unloading equipment” and least importance is for “Incompetence of transport equipment” in
sub-criteria.
According to this study,most of the events that causes delay were happened
unpredictably in which it forces the container in halt and lag due to delay in cargos at port and
accordingly to ensure the safety and cargo value aspects. Although standard measures have
been taken out by using all available weather forecasted data. As it is a forecasted data,then the
information can be true and also,can be untrue in all round .
Considering the current operational trend ,the followings are suggested to reduce the
delays in Cargo operation.They are
• Deficiency of loading and Unloading equipment Should undergo the fulfilment of
periodic inspections,repair and maintenance according to manufacturer’s
standards,purchasing new equipments,making the depreciated and old equipments out
of service and providing spare equipments for emergency to a large extent can remove
the existing problems.
• Unpreparedness of factors outside the port including owners of goods and agents of
shipping lines are not directly under the control of port their control is very difficult
and complicated.Owners have to take all required measures to make their agents
prepared for implementation of loading and unloading operation without causing halt
and lag in the container.
 53

JOB SHOP SCHEDULING

Using job shop scheduling berth scheduling issues occurring in the container handling
operations can be reduced. Berth scheduling consisting of berthing times and berthing positions
of container ship in port container terminal.
Feasible solution refers to the set of values applicable for the decision variable.
MINIMISING TRANSIT DELAY BY SELECTING BEST SEQUENCE
ORDER:
Considering an operation is performed on a single machine.
JOB SHOP SCHEDULING FOR SINGLE MACHINE
Table 2.2.1
JOB DURATION(DAYS) DUE DATE
A 6 DAY 8
B 4 DAY 4
C 5 DAY 12

For the sequence (A, B, C)

DELAY CALCULATION
Table 2.2.2
JOB COMPLETION DAY DELAY
A 6 𝑑𝑑1 = 6 − 8 = −2 = 0
B 6+4=10 𝑑𝑑2 = 10-4 = 6
C 6+4+5=15 𝑑𝑑3 =15-12 = 3
A - Job has been completed on time
A, B - Job is delayed for 6 days
A, B, C - Job is delayed for 3 days
Total delay for sequence A , B , C is
T = 𝑑𝑑1 + 𝑑𝑑2 + 𝑑𝑑3
T= 0+6+3 = 9
Total delay for sequence A,B,C is 9.
 54

Best sequence has to be found to reduce the delay in jobs. The Branch and Bound method is
used to find best sequence in job with reduced delay.
BRANCH AND BOUND METHOD :
Branch and Bound is an algorithm design paradigm for discrete and combinatorial
optimization problems, as well as mathematical optimization. A branch-and-bound algorithm
consists of a systematic enumeration of candidate solutions by means of state space search:
the set of candidate solutions is thought of as forming a rooted tree with the full set at the
root. The algorithm explores branches of this tree, which represent subsets of the solution set.
Before enumerating the candidate solutions of a branch, the branch is checked against upper
and lower estimated bounds on the optimal solution, and is discarded if it cannot produce a
better solution than the best one found so far by the algorithm.
The algorithm depends on efficient estimation of the lower and upper bounds of
regions/branches of the search space. If no bounds are available, the algorithm degenerates to
an exhaustive search.
The algorithm depends on efficient estimation of the lower and upper bounds of
regions/branches of the search space. If no bounds are available, the algorithm degenerates to
an exhaustive search.
The method was first proposed by Ailsa Land and Alison Doig whilst carrying out
research at the London School of Economics sponsored by British Petroleum in 1960
for discrete programming, and has become the most commonly used tool for solving NP-
hard optimization problems. The name "branch and bound" first occurred in the work of
Little et al. on the traveling salesman problem.
Assuming
𝑋𝑋𝑖𝑖𝑖𝑖 = 1 if job j is put in the ith position
Xij = 0 otherwise i =1, 2 , 3 ; j = A ,B , C
JOB ORDER SEQUENCE
Table 2.2.3
JOB DURATION(DAYS) DUE DATE
A 6 DAY 8
B 4 DAY 4
C 5 DAY 12
 55

The best sequence order is B A C

FIG. 2.2.1 BRANCH AND BOUND METHOD( TREE DIAGRAM)

INTERPRETATION OF JOB SHOP SCHEDULING IN BRANCH AND

BOUND METHOD:

The present research has been done to reduce the time delay that occurs due to
bething issues.To address these kind of issue the Job shop scheduling is used in which total
delay of the operation is known.When Job is performed on a single machine it able to meet
the given due date without resulting in delays.But, by further combining the jobs the length of
the job period that is ., its duration gets increased and within the given due date the job
doesn’t get completed such that it results in delay.

Though the delay occur the best way to reduce transit time is selecting the best
ordering sequence of job is much important.Branch and Bound is used to select the best
sequence order.It is shown in tree form and gives idea of placing delay in selected areas helps
us to reduce the overall time taken to complete the job.

According to this research before the allocation of job ,the proper planning should be
done meanwhile considering the durtaion of job,how efficient the worker’s are and due date
should be assigned accordingly.If proper planning is not done regarding the works that going
 56

to take up, then the huge loss occurs and the owner is the one who is to be answerable to the
customers.So involving experts in planning job and scientific analysis towards the work helps
to achieve greater results and there is no delays occuring in jobs which helps to complete the
work in time.
 57

CHAPTER-3
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION
3.1 FINDINGS
The results of the study are summarized as in Tables 2.1.8 and 2.1.9.Based on the both
tables, the weight values were also presented in form of percentage values in order to give a
clear indication of the weight differences. Based on the results in Table 2.1.8, the main criterion
of ‘Port’ was determined to be the most significant factor that contributes the delay in container
handling operation with the percentage weight of 66%. The dominant influence of the ‘Port’
factor was followed by the factors of ‘Ships’ with 21%,’Cargo owners’ with 8%, and the
‘Miscellaneous’ with 5%,which took the last place.
The percentage weight values of sub-criteria is calculated ,on the other hand ,were
shown as in Table2.1.9. According to the results in Table 2.1.9, the sub-criterion of ‘Deficiency
of loading and loading equipment’ was ranked to be the most significant sub-criterion that
contributes the delay in container handling operation with the percentage weight of 38%. The
leading position of the sub-criterion was then followed by the sub-criteria of ‘Deficiency of
ship’s equipment (19%)’, ‘Improper storage of cargo allocation (12%)’, ‘Problems with
customs and formalities(11%), ‘Administrative and financial issues(6%) ‘, ‘Foul weather and
tide prediction(4%)’, ‘late ship arrival at port(2%)’, ‘Unpreparedness of cargo owners(2%)’,
‘safety issue(2%)’, ‘Shortage of trucks(1%)’, and ‘Incompetence of transport(1%)’,
respectively, according to their percentage weights. As it is a forecasted data ,the information
can be true and untrue in all round. Berth Scheduling issues is minimized by job shop
scheduling in which Branch and Bound method helps to reduce the delay in jobs and also helps
to calculate the best order sequence.
 58

3.2 SUGGESTIONS
• The findings of this study may help to strengthen the container handling operation
through a scientific analysis approach by evaluating a factors to reduce the occurring
of halt and lag in the container operation which leads to increased effectiveness.
• Job Scheduling which includes Branch and Bound method contributes an insight to
reduce the burden of extra cost of the shippers and shipping companies, as well as it
helps to maximize the profit.
• Training has to be given in EXIM Shipment process to enhance the knowledge of
CHA’s which helps to reduce the problems occurring in customs and formalities.
• Shipper on time delivery can be adhered by official cooperation between Shipper and
Officers to reduce the late ship arrival at port.
• Responsibilities has to be re-emphasised to increase the service efficiency.
• Team spirit and cooperation can be enhanced through managerial activities.
• Practical and systematic analysis technique is useful for decision-makers in decision
making process.
• Document incompleteness factor has caused halts and lag in a lot of cases. Application
of electronic services for implementing administrative procedures to some extent
remove this deficiency.
• The best sequence has found from the Branch and Bound method which helps to reduce
delay in jobs.
• To optimally utilize the berth and improve the service quality for customers the Branch
and Bound method is proposed to solve the berth scheduling issues.
 59

3.3 CONCLUSION

The present research study has been successfully conducted to achieve its objective.
This paper also has highlighted the delay factors that affect the operation. The overall aim was
to improve the effectiveness of halt and lag in container by reducing the delays in the container
handling operation. Applying Analytical Hierarchical Process (AHP) the main factors and sub-
factors and sub-factors have been analyzed and ranked accordingly from the most
significant/influential to the least significant/influential. Deficiency of loading and unloading
equipment was ranked as the most significant factor causing delay in container handling
operation. This study is relevant to be conducted extendedly to assess the operation of halt and
lag in container to improve their productivity. It also contributes positive impact in halt and lag
in container handling operation and enhance the economies of scale of its operation. To solve
the berth scheduling problem in container handling operation, the job shop scheduling in which
Branch and Bound method is used to select the best sequence order and further reduces the
delay in jobs. Thus Branch and Bound method is presented here to minimize the makespan in
job shop scheduling. From the forecasted data the makespan are tested in number of jobs and
machines.
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