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Presentation - Business Development Port
Presentation - Business Development Port
Presentation - Business Development Port
Introduction Characteristics of a Port SWOT Analysis Market Analysis Environment Analysis Customer Analysis Competitor Analysis Performance aspects of Business Development Financial aspects of Business Development Port Promotion
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Port is a place for ships to load and unload freight and passengers. Globally 80% of trade is done through sea route. Sea route provides the cheapest mode of transportation. In India we have 12 major and approx 200 plus minor ports. There is a very high competition and the emergence of new port players is totally changing the dynamics of the Indian port sector.
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Geographical Position Nautical Characteristic Hinter Land Connection Type of the Port Services Provided Social Conditions Fiscal Environment Price
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Location of port Type of Harbor Draft /Capacity of the Port Land Value Added Logistics Concession agreement Service, Tool or Landlord Piloting, Mooring, Stevedoring, Warehousing etc. Labour Macro Payment terms, Competition Market competition
Strengths Strategic location. High growth. High market share. Financial means available for expansion. Proximity of Power plants.
Opportunities Gateway port. Huge Indian market & landlocked states. Port reforms more autonomy. Investment in port infrastructure, lower cost for port users Development of LNG terminal.
Weaknesses High tariffs. Away from liner route. Lack of trained manpower. Industrial region away from port.
The ultimate objective in this step is to identify customers and their interests.
Port owner contacts ship owners (ship owners are the customers). Port owner contacts freight forwarders who charter ships on behalf of their customers ( freight forwarders are the customers). Port owner contacts cargo owners. (cargo owners are the customers).
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BD manager of a port needs to understand the legal and regulatory environment of a country.
Port Laws
Indian Ports Act 1908 Major Port Trusts Act 1963
Shipping Laws
Merchant Shipping Act 1958
Environment-related laws
Environment Protection Act 1986 (CRZ) All other environment related laws (i.e. Wildlife Protection Act 1972 etc) 7
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MPSEZ s hinterland consists of among the most industrialized states in India, with GDP having grown around 10% consistently over past few years and accounting for nearly 70% of India s container traffic.
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MPSEZ is indeed attractive to high potential industries like auto, chemicals, light and heavy industries and textiles and apparels
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Long term contracts with the various customers/ industries with high growth potential.
Single Point Mooring Facility 1 has been contracted to IOC under a take or pay agreement. The company is developing a second single point mooring terminal (SPM2), which has a capacity to handle 25 mtpa of liquid cargo.
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Intrastate
Based on geographical location, ports in Gujarat can be divided into two categories i.e. located on Mainland i.e. Port of Dahej and Hazira and ports located in peninsular region i.e. Kandla, Pipavav, and Mundra etc.
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S. No Port 1. Bhavnagar
2.
Pipavav
Draft Remarks Lighterage y Cargo handling is port with 4m carried out at draft. anchorage point. y Multiple handling of Cargo. Connected to Connected to 12.5 m NH. BG line. Connected by Connected to Lighterage road to NH. BG line. port. Movement restricted to high tide and daylight hours only, causes delay. Movement restricted to daylight & high tide, only causes delay. Beam (width) of vessel restriction of 12 30m.
3.
Navlakhi
4.
Okha
Connected by Connected to 7.5-8m y road to BG line. Lighterage. Jamnagar/ Porbander and from y there on to NH.
S. No Port 5. Porbandar
Road Link Rail Link Connected by Connected to road to Rajkot BG line. and from there on to NH.
6.
Bedi/ Jamnagar
7.
Kandla
Remarks y Beam (width) of vessel restriction of 30m. y Pilotage during daylight hours only. y Only medium size ships can be handled. y Cargo handling is carried out at anchorage point 11kms from port. y Multiple handling of Cargo. y Mainly handles POL at SBM for refineries. y Movement restricted to high tide, causes delay. Large ships have to unload part of cargo at 13 anchorage.
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One of the fastest growing ports in India with cargo volumes growing across all segments. Cargo handing YOY growth of 12.79%. Mundra Port accounted for 78% of all container traffic handled by all the minor ports in the country (1.23 million TEUs).
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Well connected (within state & with upcoming dedicated freight corridor).
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Mundra is also India s largest port for car exports - Maruti Suzuki exported a total 1,25,157 cars exported in the financial year 2009-10. Availability of experienced master mariners and powerful tugboats to navigate and maneuver large vessels in shipping channel. Availability of adequate storage space (open and closed) in backyard for temporary storage.
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These parameters have direct implications on the opportunity costs of a ship. The more the turnaround time and the grade of waiting, the higher the standing costs (fixed costs that a ship incurs when it is not sailing) and staff expenses will be that a ship has to bear.
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Frequently used financial performance metrics to evaluate various aspects of ports are:
Activity
Operating ratio = Revenues Operating expenses/Operating
Capital Structure
Gearing ratio = Debt / Equity
Solvency / Liquidity
Current ratio = Current Assets / Current Liabilities
Profitability
Return on Equity = Net Profit / Equity Return on Assets = Net Income / Total Value of assets
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While analyzing the social costs and benefits, the impact of ports should be considered from three aspects
Direct Impact: Includes impacts on organizations and activities that are directly linked to port project. Indirect Impact: Includes the impact on industries and institutions that have decided to locate their activities near or around the port because of their dependence on port. Some of the examples could be trade industries and finance institutes serving ports. Induced Impact: The aggregation of the direct and indirect impacts on other sectors of economy is referred as induced impact. One such example could be the increased real estate activity.
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A BD manager must also bear in mind the risks involved with the investments. Primarily, the risks can be classified in :
Cost Risk: Risks associated with cost overruns. This may emanate from technical, economical and financial changes. Revenue Risk: Risks associated with fluctuations in forecasts of volume or price. Country Risk: Risks such as political, social, legal 7/1/2011 and currency risks. 22
Different types of promotion tools for ports in order to communicate to various target groups, inform them and influence their perception towards the port.
Advertising
Direct mailing
Representatives
Domestic fairs
School visits
Source: UN manual on port business
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Organizing conferences
Speaker at a conference
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When a direct mailing is used as a tool, very important to verify following points:
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Name of person being written to. His/her function. Gender. References . Faultless and carefully drawn up letter. Enclosures are enclosed. Names of the people available for further information.
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Objectives of advertising are : Enlarging the general renown of the port. Paving the way for sales. Improving ports image. Increasing ports recognition. Highlighting the ports quality elements.
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Presence of the port at a professional shipping exhibition shows that the port is a recognized player in the market. Two types of professional fairs which can be of interest to a seaport as shown in the below: Shipping fairs: Focus on meeting the shipping industry, such as ship owners, agents and brokers etc. Commodity fairs: Focus on meeting the owners of the commodities, who will anyway also have interest in the best manner to transport their commodities to the final destination.
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One of the most effective communication tools in the port marketing Advantages of organizing the port days:
People come only to meet the delegation, i.e. a serious business affair. Mere presence of the business people shows that they have an interest at the first instant. Every possibility for the port authority to give a broader view about their port when compared to the exhibition. By organizing a port day in certain region means that the port wants to do the business with the people of that region.
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There are three different types of direct selling, and they are listed below
Direct Selling: Through delegations or representatives. Indirect Selling: Through chambers of commerce, embassies or banks. For International market: Understand the Social, Cultural & Economic context.
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Above shown boat is the security boat, which shows the world class security system, On the right are the pictures of various specialized cargo handling docks that speaks about the service that would be provided. (Source: LA port promotion brochure)
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This is because Mundra port is better placed (than its peers) to capitalize on the strong cargo growth that India is likely to witness in the mid-term. Mundra port is undergoing a huge capacity expansion, which would place it ahead of some of the major ports. Moreover, Mundra port would continue to attract incremental cargo on the west coast due to its strategic advantages and operational efficiencies.
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