SUPPLY CHAIN AND LOGISTICS FOR PORTS

Submitted to: Prof. Jyoti Trivedi By: HIMANSHU BAROCHIA(CP0212) MEGHA SINGH(CP1912)

DEFINITION
Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements.
Council of Logistics Management

THE LOGISTICS/SC MISSION

Getting the right goods or services to the right place, at the right time, and in the desired condition at the lowest cost and highest return on investment.

CONCEPTS OF LOGISTICS

1.

Physical Distribution

The broad range of activities associated with efficient movement of finished products from the end of the production line to the consumers.

2. 3.

Internally Integrated Logistics

Physical distribution function should be integrated with preproduction activities such as material sourcing and work-inprocess inventory to form a total material flow management

Externally Integrated Logistics

It has extended the concept beyond one firm to all firms involved in the whole supply chain.

ROLE OF LOGISTICS

PHYSICAL DISTRIBUTION COSTS

SIGNIFICANCE OF LOGISTICS
Costs are high Customers are more demanding of the supply chain An integral part of company strategy Logistical lines are lengthening Logistics is a key to trade and an increased standard of living Logistics adds value

STRUCTURE OF PORT SUPPLY CHAIN MODEL

The port SC-Model treats the port as a core, effectively integrates the various service suppliers and customer into a whole, then delivers the correct number of goods to the right place at the right time. Its goal is to achieve the lowest cost throughout the supply chain.

EFFECT ON LOGISTICS FOREIGN OUTSOURCING

THE LOGISTICS STRATEGY TRIANGLE

RELATIONSHIP OF LOGISTICS TO MARKETING AND PRODUCTION

ACTIVITIES OF LOGISTICS
Procurement or purchasing

Inward transport or traffic

Receiving Warehousing or stores Stock control Material handling Order picking Packaging Outward transport

IMPORTANCE OF LOGISTICS
It has strategic importance with decisions affecting long-term performance and even survival It is expensive, with costs often forming a large part of turnover It directly affects profits, lead time, reliability and other measures of organisational performance It forms links with upstream suppliers, developing mutually beneficial, long-term trading relationships It forms links with downstream customers, contributing to customer satisfaction and added value It determines the best locations and sizes of facilities

CASE STUDY

Gujarat Pipavav Port Ltd (GPPL) is the first private sector port and the 3rd largest on the western coast of India for handling container cargo.

PIPAVAV PORT LAYOUT

LOCATION
Port Pipavav is located in Saurashtra in the state of Gujarat, 152 nautical miles northwest of Mumbai (less than ten hours steaming time) on the west coast of India. Approximately 140 kilometres southwest of Bhavnagar. Port Pipavav is directly across from two islands Shial Bet and Savai Bet which act as a natural breakwater, making the port safe in all weather conditions.

STRENGTHS
Part of the APM Terminals network Port Pipavav leverages the shipping experience, strengths and network of its parent, APM Terminals, which operates 60 ports and terminals and 132 inland services in 63 countries. Strategically located all weather port Port Pipavav is an all-weather port located just 152 nautical miles from Nhava Sheva in Mumbai. The port's location in the state of Gujarat provides immediate access to a rich hinterland and key markets in northwest India. Large land bank available for growth With a total land area of 631 hectares, there is plenty of land available for expansion of port-related services and businesses. The port has leased out land for a variety of services including liquid cargo facilities.

CONNECTIVITY
Rail Distances(Kms) Sabarmati - 298 Jaipur - 980 Jodhpur - 810 Amritsar - 1,726 Ludhiana - 1,590 Indore - 910 Road Distances(Kms) New Delhi - 1,115 Jaipur - 873 Jodhpur - 775 Udaipur - 506 Rajkot - 225 Ahmedabad - 300 Vadodara - 318 Amritsar - 1432 The port handles a variety of bulk cargo that includes coal, clinker, cement, steel, soda ash, iron ore, fertilizers salts etc.

Performance - 2007-08 ( in lakh tonnes) Import Export Total 23.19 1.23 24.42

BULK FACILITIES
Gottwald Cranes 2

BM Titan 1
ZPMC Cranes 3 Coal & Mineral Static Capacity 700,000 MT Fertilizer Static Capacity 100,000 MT Conveyor system for coal 1.2 km Rail Sidings with in-motion weighbridge 5

CONTAINER FACILITIES
Panamax Quay Cranes 3, 13 across

Post Panamax Quay Cranes 5, 18 across

RTGs 8 Eco-RTGs 10 Container Yard 104,000 sq.m Yard for empty containers 2 Capacity (TEUs) 850,000 (to be expanded to 1.3 million) Rail Sidings

STORAGE FACILITIES
CFS 7, 600 sq.m each

Warehouses 2, 3657 sq.m, 3252 sq.m

CWC 4, 6690 sq.m each Private CFS 2 Sheds 100,000 sq.m

LOGISTIC MODEL FOR STEEL PLATES

China, Ukraine, Belgium

APM Terminals

Aegis Logistics, Gulf Petrochem and IMC Ltd

Pipavav Port Pvt. Ltd.

INTERNAL HANDLING OF STEEL PLATES

Storage in Warehouses

Blasting & cutting of plates

Mega blocks (Subassembly)

Reblasting & reprimming

Outfitting of block

Shifting to EOU

LOGISTICS COSTING FOR PIPAVAV PORT

Sr. No 1. 2. Description (Upto 40,000 GRT) Port Dues Berth Hire Cost (INR) 2.16/ Ton of GWT 0.20/ Ton of GWT

3.
4. 5. 6. 7. 8.

Pilotage and Towage

Wharfage Handling Charges Crane hire charges Rail infrastructure facility charges Truck Transportation Charges

16.80/ Ton
70/Ton 5000 1,400/ hour 25 / MT 2,000 per shift (8 hours)

LOGISTICS STORAGE COSTING FOR PIPAVAV PORT

Sr. No
1.

Description
Import Container Seal Verification

Cost (INR)
1300

2.
3.

Import Container Customs Examination

Import De-Stuff & Direct Delivery for loose Cargo

1300
6000

4.
5. 6. 8. 9. 10.

Import De-Stuff -> Scrap

Cargo storage charges Import/Export Charges for container storage in the CFS (Rate are per day basis) Lift On / Off at CFS-Loaded Transportation of Cont from CY to CFS Rental Space at CFS:

5450
Free for 5 days Free for 2 days 400 300 25 per (sq.m) per week 50/day/ton 108/day

CURRENT SCENARIO

RESEARCH PAPER
Research on Port Logistics Development Model Based on Supply Chain Management 2006 (School of Logistics Engineering, Wuhan University of Technology, Wuhan, P.R.China, 430063) Abstract With the deepening of the Supply Chain Management (SCM) thinking, the port is gradually applied the relevant theory to develop its logistics model. This paper uses the theoretical and empirical analysis method, summarizes and compares the existing development models of port logistics, and then proposes that the Supply Chain Model (SC-Model) is an important trend in the development of port logistics, especially researches the structure and characteristics of SC-Model. Finally, this paper analyzes the current problem of SC-Model in Chinas ports, proposes the solutions accordingly, and obtains the conclusion that the establishment of coordination and information mechanisms is very important for the development of port supply chain.