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File 1390
File 1390
File 1390
reference to Seapol
Submitted in the partial fulfillment of requirement for the Degree of MASTER OF BUSINESS ADMINISTRATION (2006-08)
Under the Guidance of: Dr. P.K.GUPTA READER HARYANA SCHOOL OF BUSINESS G.J.U.S&T. Hisar
Submitted By: MANOJ KUMAR MBA (INT. BUSINESS) Roll No. 0610313
HARYANA SCHOOL OF BUSINESS GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY HISAR-125001
CERTIFICATE
This is to certify that the research project entitled A study on coal import of Indian port with special reference to Seapol has been completed by Manoj Kumar, student of MBA (International Business) final year, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, under my supervision. This project is completed in the partial fulfillment of the requirement for award of MBA Degree. The matter used in the project is original and authentic to the best of my knowledge. I recommend that the project is fit for evaluation. I wish all success in his future endeavors.
(Dr. P.K.GUPTA)
DECLARATION
I hereby declare that the present work embodied in this project report was carried out by me under the supervision of Dr.P.K.GUPTA, READER, HARYANA SCHOOL OF BUSINESS, HISAR. This work has not been submitted in part or in full in any other university for any degree or diploma.
ACKNOWLEDGEMENT
I take this opportunity to express my warm and heartiest thanks to my project guide and mentor Dr. P.K.Gupta without whose untiring, venerated guidance and support it would not possible for me to complete a project of such an importance and magnitude. I express my profound gratitude to Professor S.C. Kundu, Chairperson of Haryana School of Business for providing the student an opportunity to undertake the research project as a part of curriculum in the fourth semester. I would also place on record my gratitude to all my teachers who have taught me during the course for their constant encouragement. And above all I am thankful to my esteemed Parents and Family Members who stood by me in each and every possible way. I am also thankful to my friends who help me a lot to complete my project.
Manoj Kumar
CONTENTS
Topic
Introduction Emerging Markets Risk and Return Objective of Study Literature Review Research Methodology Data Analysis
Risk Return Trade-off 48-68
Page no.
1.
69 72
Introduction
Indian local focal and seaport points port are of today more than for just Government owned public utilities, they are indeed, coverage business authorities, several from contending shipping logistic competing interest lines, agencies, individual terminal operators to freight forwarders and inland not to leave out the shipper whose cargo is be considered and a (the export represent complex import fraternity) may of be rightly
what is being ultimately being transported. They what mosaic and and contractual business and
relationships, which in turn give rise to maze of regulatory procedures interplay. 1.1 Why ships Shipping transportation place to is of known cargo place as 70 a economical passenger of mode from the of one operational ever changing institutions rules of dynamic
and
another
percent
world
may be considered a relatively slow but inexpensive form of transport because modern ships are capable of carrying hundreds of thousands of tones, the cost per tones/kilometer adds only a small amount to the cost of commodity being carried. 1.2 Derived Demand The demand for ships is derived from the demand for the goods which they carry that is why economic refers to merchant shipping as a derived demand. 1.3 Scope of shipping industry in India Shipping Tonnage growth under Indian flag is
zooming. It has notched a record of 9.07 million gross Tonnages as on 31 August 2007. This figure could well surpass the target 12 million Gross Tonnage by the end of eleventh five year plan. Indian foreign trade continued to remain mostly in the hands of foreign shipping lines with only 13% is being carried by Indian ships. As, World Tonnage is booming and one can see the movement of cargo from India. Huge investment is
also being made mostly in bulk and tanker side, while at the same time many new building are being taken delivery. This trend will definitely continue for another 1 year at least. To achieve a target of 12 million Gross Tonnages (approx. 955 vessels) at the end of the next 5 years would involve a further addition of 404 ships of 6.16 million Gross Tonnage of the Indian fleet over and above the new acquisitions/ replacement of 560 ships of 4.67 million Gross Tonnages. 1.4 Cargo handle by major ports during 2006 2007
Ennore Cochin Tuticorin New Mangalore Marmu gao Paradip JNPT Mumbai Kandla Chennai Kolkata/ Haldia Vishakhapattanam 0 10 20 30 40 50 60 70
Cargo Traffic at the 12 major ports registered a growth of 9.15 % during 2006 2007 as compared to the previous year. 1.5 Future of Indian ports Will Indian port sector really see the
emergence of private sector as a major player in the port sector in the future? Will major port be fully Are computerized and India in and poised being to about in a greater lead over rationalization minor transparency functioning.
take
performance of major port? In there enough room for new green field port project in India port sector? Several of these questions are there but reply for every question is
Research Methodology
2.1 Research design The project undertaken is descriptive in nature as it include on-line survey and fact finding enquires, the major purpose of study is description of the state of affair as it exist at present. The main characteristic here is that there is no control over the variables, it contains only what is happening, hence it is export facto research as it is called. 2.2 Source of data The data involved in this research are of two basic classifications; 1. Primary data the procedure of marketing trade were observed by the researcher during the period of his study so as to help in developing a better understanding of the procedure and negotiation.
10
2. Secondary data this dominant partition of the research has been based on the secondary data that have been accrued material and of constructed Seapol from various research literature period. 2.3 Reliability of study As the data is collected from the Government organization like IPA and EXIM news bulletin and other well known publication, it is implied that the data is reliable. Cross checking of data was also done while study, by taking similar information for more then one source of data so that the reliability can be assured. 2.4 Tools Table format and graphical presentation were during
used to explain various kinds of statement and the format in which they are to be presented.
11
2.5 Research objectives To analysis the shipping service with in the surveillance in seaport shipping and the concept of cargo handling. Primary objective to find the output of the company to handle import of coal.
Secondary objective (1) To find out weather they satisfied with work condition (2) Future trend of dry cargo market. 2.6 Limitation The major limitation of the project is that this data taken is dependent only on the secondary data, and it is considered that the data collected is reliable, as it is collected from national level publishers and printers recognized by Government so it there are any statutory changes they are not considered in this project, this project work only for the academic purpose as, it may not contain the
12
intricacies of one real project is it was out of the purviews of the project.
13
collaboration
Multinational conglomerate having a global network across 35 countries. All commercial and operational tasks will be guided by centralized head office of Chennai coal, million company Port to million provides Seapol. limestone, etc,. of tones Company having food of PPP expertise grains, handling 200 PPP. and rock PPP The 5 equipments to handle various dry bulk cargoes like fertilizer, Enviable cargo 200 phosphate record
Seapol
Port. and
complete
shipping
14
service
solution
for
its
clients
and
principals
under one roof. Seapol heavy equipments owns grabs (mechanical and hydraulic) of different sizes and fleet of 21 pay loaders, fleet of 85 tippers and trucks. Seapol have their own Chief and of marine experts Managers to in to including Senior etc. assist its Master in the the the high high and Mariners, Executives, shipping standards principals. The success of Seapol lies with the dedicated, sincere, efficient staff of 200 people in the field and in the offices. authorities Engineers, field Shipping
achieving
clients
15
Years
1998 -1999 1999 - 2000 2000 - 2001 2001 - 2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006
Tonnage Handled
1,32,353.000 2,64,006.000 5,06,876.000 5,17,539.000 6,18,673.000 8,46,733.000 15,44,774.000 18,07,212.000
% increase
99.47% 91.99% 2.10% 19.54% 36.86% 82.44% 16.99%
Seapol Shipping Seapol entered into ship management operation in 1998, Seapol taking over the coastal research vessels Sagar Purvi and Sagar Pashmi of National Institute of Ocean Technology (NIOT), Government of India .Seapol did a good job in managing (manning& operating) the vessels and got the contract renewed for another three years and again for another three years till today from 2006 june, company is managing tender vessel Sagar Manjusha of NIOT.
16
The company is the scientific support agent for the Antartic research vessel Sagar Kanya of NCAOR from 2003. A.B Petrov Russian research vessel charted by NACOR was also under Seapol care since 2004. In july 2006, Seapol took over AL container that used owned by m/s Bangar Mounier a shipping in their
logistics a division of Kinship, Cochin and after company added Kinship Prosperity fieet list in 2006.
Technical Management Seaport shipping Pvt. Ltd. has the necessary skills and expertise to operate all type of dry cargo, cellular container and feeder vessel including ocean/coastal research vessels. Seapols technical management is providing optimum service to ship owners that their vessels are operational round the clock. The company ship staffs are well trained and motivated to maintain their vessel and its machinery in rough sea conditions.
17
The Superintendents are continuously monitoring the maintenance status of the machinery on-board and enables them to plan optimal and timely procurement of spares and stores. Superintendents keep track of the reports being sent from the vessels goes on, for the smooth running of all shipping activities and make ensure to the clients that every thing is with in budget.
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SEAPOL
SHIP AGENCY
STEVEDORING SERVICES
SHIP MANAGEMENT
HEAVY EQUIPMENTS
TRANSPORT
19
MANAGING DIRECTOR
EXECUTIVE DIRECTOR DIRECTOR MARINE GENERAL MANAGER SHIP MANAGEMENT MANAGER TECHNICAL MANAGER MARINE MANAGER FLEET PEROSSONEL/ OPERATION PERSONNEL EXECUTIVE BRANCH OFFICES: VIZAG, GOA, HALDIA, PARADIP, TUTICORIN, ETC..
ACCOUNTS DEPT.
ASSISTANT MANAGER
MARINE EXECUTIVE
SUPPORT STAFF
SHIP
SHORE
20
MANAGING DIRECTOR
ACCOUNTS DEPT.
GENERAL MANAGER
PAYLOADER MANAGER
TRANSPORT MANAGER
SUPPORT STAFF
21
Review of Literature
Coal has great importance as it is a natural resource and is the cheapest form of raw material for production of power. India is in need of power and that too abundantly. To fulfill its need for power it has no other option than importing coal from countries like china, U.S, South Africa and Indonesia as coal in India is very much in short supply. Moreover coal available in India is of inferior quality and of low calorific value. Coal is mainly use for power generation in industries and manufacturing of steel, Coals main consumers are: Steel factories Cement Factories Paper factories Sugar Factories Aluminums factories
22
4.1 Types of Coal Coal is of two types Soft coal Hard coal
Soft Coal Soft coal is further categorized into two Lignite Sub-bituminous Hard coal Hard coal is categorized into bituminous and anthracite, bituminous coal is classified into Thermal Meturaulligical coal also known as coking coal. Soft coal has a low calorific value with large moisture the content .while hard coal has a greater value and lowest moisture
23
Importance of Coal India, world third largest coal producers, may have to import 76 million tones of fuel by 2011-12 to meet domestic requirement as total demand is estimated to nearly double to 710 million tones. The country may need to import 30-40 million tones of superior grade thermal coal and an additional 36 million tones of coking coal by 2011-12 to meet shortage; the planning commission has projected in its approach paper for the 11th five year plan (2007-12). Coal such as would power, remain cement, the dominant paper, commercial industries
energy source with total demand across all sector steel, estimated to rise to about 710 million tones as against about 370 million tones in 2005-06. Power million electricity present. sector by alone would require total is about 503 to
tones
2011-12,
when
installed
generation
capacity
projected
24
The
approach
paper,
which
was
recently
presented to Prime Minister Dr. Manmohan Singh said that the country would have to upgrade its port handling infrastructure and set up coastal thermal power plants of about 10,000MW generation capacity to utilize imported coal. According to Government estimates, coal import are expected to increase about 11.87% this fiscal to 46.62 million tones as against 41.67 million tones in 2005-06. Of the total coal import about 24.19 million tones of coking coal and 22.43 million tones of non-coking coal are projected to be imported in 2006-07 as against 23.89 million tones and 17.78 million tones in 2005-06 respectively. Power utilities alone imported about 14 million tones of superior tones in coal to meet shortage of 21 by million 2005-06. Coal import
electricity companies are estimated to rise about 20 million tones this fiscal as shortage increased to 30 million tones.
25
26
Thermal Coal 4020 3224 3674 2927 3368 3195 3157 3408
Coking Coal 3051 3284 3982 3977 4298 4493 5105 5371
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5.1.2 Graph
6000
5000
4000
3000
2000
1000
Inference The handling of Thermal Coal at Haldia port decrease but same time the handling of Coking Coal increase so over all performance of Haldia port in handling coal from 1998 till now is increasing.
28
Thermal Coal 3833 4011 5398 3924 3197 2493 2524 2740
Coking coal 4521 4104 4730 5692 6288 6090 6347 6517
5.2.2 Graph
29
7000
6000
5000
2000
1000
Inference The handling of Thermal Coal at Vizag port till 2000 was increasing after that the Coking Coal Handling increased at Vizag port.
30
5.3.1 Table
Thermal Coal 6555 5953 8207 8944 11013 9853 10942 12529
Coking coal 1390 1497 1691 1424 2224 2869 3267 3758
5.3.2 Graph
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14000
12000
10000
4000
2000
Inference The handling of both Thermal Coal and Coking Coal is increasing at Paradip port but Thermal Coal ratio is double than Coking Coal at Paradip Port.
32
5.4.1 Table
5.4.2 Graph
33
250
200
50
Inference At present Cochin Port is not handling Coking Coal the graphical presentation shows that only Thermal Coal is handled by the Cochin Port.
34
5.5.1 Table
Coking coal 152 209 892 2018 1570 1602 2732 2895
5.5.2 Graph
35
3500
3000
2500
1000
500
handling of Thermal Coal crossed the point of 250 million ton. But the handling of Coking Coal is less than 50 million tons overall ratio of handling Coal is increasing at Marmugao Port from 1998 onwards. 5.6 Coal handled by the New Manglore Port
36
5.6.1 Table
Thermal Coal 0 0 0 0 0 0 0 0
(000 tones)
5.6.2 Graph
37
600
500
400
300
200
100
Manglore Port is handling only Coking Coal. But the handling of Coking is increasing.
38
5.7.1 Table
5.7.2 Graph
39
900
800
700
600
300
200
100
handling of Coking Coal decreasing every year but in 2006 the Kandla Port handled both Coking and Thermal Coal.
40
5.8.1 Table
Coking coal 0 0 0 0 0 0 0 0
(000 tones)
5.8.2 Graph
41
10000
9000
8000
7000
5000
4000
3000
2000
1000
Inerence The graphical presentation shows that from 2002 port started the handling Thermal Coal and the output of port is satisfactory.
42
5.9.1 Table
(000 tones)
5.9.2 Graph
43
7000
6000
5000
2000
1000
Tuticorin port is hanling only Thermal Coal from last seven years. Tuticorin port is presenting good show in handling Thermal Coal.
44
5.10.1 Table
Thermal Coal 9558 9230 11859 7193 2754 1838 1997 1976
Coking coal 353 914 631 623 982 992 1318 1304
(000 tones)
5.10.2 Graph
45
14000
12000
10000
4000
2000
performance
Chennai
handling
overall
46
Thermal Coal 24121 26579 39329 31642 32951 33327 33343 37658
Coking Coal 14896 10503 12770 4249 15243 15475 19483 21101
(000 tones)
5.11.2 Graph
47
45000
40000
35000
30000
25000
20000
15000
10000
5000
Thermal Coal
Coking Coal
48
Year
1999 2000 2001 2002 2003 2004 2005 2006
(in tones)
Findings
Fore Cast
49
The company may need to import 30-40 million tones of superior grade coal and additional 36 million tones of coking coal by 2011-12 to meet shortage. Power
sector is
alone to
would
require
about
503
million tones coal by 2011-12. Coal expected increase about 112.42% this fiscal year. Total coal import about 24.19 million tones of coking coal and amount 22.43 million tones of non-coking coal are projected to be import in 2006-07 The graph of coal import going up at all major and minor port. Various private companies like ETA star energy have a plan to enter in thermal power station sector.
Trend
The Indian Port sector is growing rapidly. major and minor ports are under development of public private partnership (PPP).
Various
50
The
steel
and
iron
production
of
India
is
increasing. Various new thermal power plants are under the project of government and private to increase the power generation.
Conclusion The project title A study on coal import of Indian port with special reference to Seapol was descriptive study which has given detailed analysis
51
of coal handled on various major Indian ports and this project also helps the reader to understand the trend of coal import in India, the study done in this project is generic in nature which will help the Hence requirement company the for its has expansion depicted in India. the
project
all
for the
Suggestions
There are few suggestions for all departments of seapol.
52
Agency Company has an ability to handle more than 250 vessels per year. So company should have to follow the good marketing strategy to achieve the target more than 250 vessels. Company should have to charge lower service charges as much as possible top increase up their market share. Ship Management Seapol shipping have a vast experience of 10 years of managing the ships ,so company should have to follow proper strategy to increase up their fleet of handling the ships. Seapol should have to list itself in share market, to acquire new vessels and provide A to Z solution of shipment to their customers.
Stevedoring
53
The
company
has
excellent
background
of
handling coal import at Chennai port, so the company should have to go for conglometric tie up with various other companies at other major Indian Ports to show their presence on large scale. Companies one of principal ETA group has a plan to set thermal power station on the coastal region of Chennai or Andhra Pradesh. Seapol should have tom put efforts to tie up with ETA star energy to handle their coal import. Seapol should have to go BOT operation for handling of coal and try to see opportunity for the set up of mechanical handling of coal(like conveyer belt), it will also increase the productivity of the company.
Dock office Coal is an polluted item and company should have to take necessary steps to provide a
54
healthy environment to their employee like they have to provide mask, boiler suits to the workers working in coal plots area. Medical check up is required especially for the field workers with in every six months.
Bibliography
55
The Exim daily bullets The time Shipping journals MICS study material Algappa university study material Indian Port Association The Economic time daily paper www.google.co.in
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