Final Project.docx

PROJECT REPORT ON “COMPARISION BETWEEN JNPT AND ADANI” 2018 SUBMITTED BY: SHARMISTA MHATRE SONALI GHARAT VIKRANT KOLI DIKSHA KOTKAR SAYALI THAUR PRANEET KOLI SAURABH JAGTAP

PREFACE As a part of the MBA curriculum and in order to gain practical knowledge in the field of management.We are required to make a report on “COMPARISION BETWEEN JNPT AND ADANI”. The basic objective behind doing this project report is to get knowledge tools of marketing. In this project report we have included various concept effects and implication of JNPT and ADANI Port. Doing this project report helped us to enhance our knowledge regarding the work in the CSR activities of marketing department and port operations. We have gain experience related with our topic concept. Through this report we come to know about importance of team work and role of devotions toward the work.

ACKNOWLEDGEMENT

This project is an outcome of the support and encouragement provided by a number of people at ______________________that embodies of the best aspect of Indian corporate world.

I would like to express my sense of gratitude to the company for giving me this valuable learning opportunity and allowing me to conduct this project.

I sincerely thanks my project guide AMBIKA SINGH (Marketing Head), J.N.P.T COMPANY for guiding me throughout the project and helpful in furnishing the required information.

Yours faithfully, ____________________

DECLARATION We hereby declare that project entitled “Comaprision Between JNPT and ADANI PORT” submitted to JNPT is our original work and the project has not formed on the basis for any degree, associateship, fellowship or any other similar titles.The information submitted by us is true and original to the best of our knowledge.

Company Profile Sector: Industrials Industry: Transportation & Logistics Sub-Industry: Transport Support Services Jawaharlal Nehru Port Trust provides marine and shipping services. The Company offers container terminals, general cargo, liquid cargo terminals, and more. Jawaharlal Nehru Port Trust serves customers and clients internationally.

INTRODUCTION

Jawaharlal Nehru Port, also known as Nhava Sheva, is the largest container port in India.Located east of Mumbai (previously known as 'Bombay') in Maharashtra, the port on the Arabian Sea is accessed via Thane Creek. Its common name derives from the names of Nhava and Sheva villages that were situated here. This port is also the terminal of Western Dedicated Freight Corridor (in construction). Jawaharlal Nehru Port is also commonly referred as JNPT (short for Jawaharlal Nehru Port Trust).

HISTORY Ever since its inception on 26 May 1989, Jawaharlal Nehru Port (JNP) has blazed a new path for itself in the port sector – aiming to set the benchmark for the heights India could reach in technological innovation and administrative skill. Envisioned in a remote location about 10 km across the Bombay Harbour, JN Port rose up from paddy fields, salt-pans and marshlands, in a Herculean effort at construction – the first large-scale industrial development in independent India. The Port is as much a representation of what is best about India's capabilities, from project conceptualization to completion, as it is an example of human endeavor against all odds. It has charted India’s international trade to a glorious course of success and achievements, breaking records and creating new benchmarks. JN Port is the biggest container handling port in India, handling around 44% of the country’s containerized cargo, crossing the historic landmark of 4 million TEUs in container throughput consecutively for the last five years. In its coveted role as the Hub Port on the West Coast of India, JNP is ranked 31st among the top 100 Container Ports in the world. Having set for itself a long-term goal of achieving 10 million TEUs by the year 2020-21, through addition of two more Terminals, viz. the 330M Stand-alone Container Terminals (DP World) and the 4th Container Terminal (Port of Singapore Authority) and a Satellite Port at Vadhvan Point, JNP throws open an array of worthwhile opportunities for the maritime trade, including the shipping lines and shippers, to ferry their cargo to various sectors across the globe. Supported by a top of the order, world-class infrastructure with high technological standards, facilities at JNP consist of a full-fledged Custom House, 30 Container Freight Stations and connectivity to 52 Inland Container Depots across the country. The excellent hinterland connectivity both by rail and road is being further strengthened by ongoing projects like the Dedicated Freight Corridor (DFC), which will increase the existing train capacity of 27 to 100 trains per day; MultiModal Logistics Park (MMLP) and widening of the Port road connectivity. lts proximity to the Cities of Mumbai, Navi Mumbai and Pune; airports; hotels, exhibition centres, etc. gives the Port an extra edge to address the shippers’ needs, efficiently and promptly. With a strong commitment to provide seamless service to the customers as India’s prime facilitator of international trade and logistics, Jawaharlal Nehru Port strives to be the undisputed leader in the South Asia Region in the years to come.

FACILITIES The JNPT Container Terminal is operated by JNPT. It has a quay length of 680 metres (2,230 ft) with 3 berths. The Nhava Sheva International Container Terminal (NSICT) is leased to a consortium led by P & O, now a part of DP World. Commissioned in July 2000, it has a 600 metres (2,000 ft) quay length with two berths. It can handle up to 15.6 million tons of cargo.[6] NSICT was India’s first privately managed container terminal. In the year 2006, GTI (Gateway Terminals India Pvt Ltd), a third container terminal operated by APM Terminals, with the capacity to handle 1.3 Million TEUs was commissioned. A new standalone container terminal by the name of NSIGT having a quay length of 330 m and a capacity of 12.5 Million Tonnes will be fully operational by July, 2016. Work has commenced for commissioning of fourth container terminal with a quay length of 2,000 m. This terminal will be operated by PSA and will have a capacity of 4.8 Million TEUs (60 MTPA). Phase-I of the project with a quay length of 1 km will be commissioned by Dec., 2017. Jawaharlal Nehru Port has become the first port in the country to implement logistics data tagging of containers. The port implemented the logistics data bank tagging of containers, first of its kind facility, which will help importers and exporters track their goods in transit through logistics data bank service. An RFID (Radio Frequency Identification Tag) tag would be attached to each container which would be tracked through RIFD readers installed at different locations.

TRAFFIC

JNPT View From Seaside

JNP accounts for more than half of total container volumes handled at India's 12 public ports and around 40 percent of the nation's overall containerized ocean trade.[3] Major exports from Jawaharlal Nehru Port are textiles, sporting goods, carpets, textile machinery, boneless meat, chemicals and pharmaceuticals. The main imports are chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminium and other non-ferrous metals. The port handles cargo traffic mostly originating from or destined for Maharashtra, Madhya Pradesh, Gujarat, Karnataka, as well as most of North India.

Capacity Addition: 

Development of fourth container terminal On December 2014, JNPT awarded the prestigious 4th container terminal to M/s. Bharat Mumbai Container subsidiary of PSA, Singapore on DBFOT basis with a capacity of 4.8 million tones with Quay length of 2kms. The project is taken up in 2 phases. The construction of Phase-1 is completed on 22nd Dec’2017 and put up for the vessel operations. Estimate cost - Phase I - Rs.4719 Cr / Phase II - Rs.3196 Cr. Total Rs.7915 Cr.

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Development of Coastal Birth The construction work of coastal birth along with two approaches bridges in backup of reclamation area is 11 hectare has been taken up. The work was awarded on 31 st March,2017. Estimated cost is 143.32 Cr, and will be completed within 24 months.

Road Connectivity:  i. ii.

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Development of Fly over in port area at Y junction The port has awarded the work of two fly overs in JN port area. The work of construction of fly over at North gate complex is awarded in March 2017. The work is commenced at site. Estimated cost is 127 crores The work of construction of fly over near Y junction is awarded in March 2017.The work is commenced at site. Estimated cost is 82.95 crores Widening of NH 4B,SH-54 and Amra Marg to 6/8 lanes The project of “widening of NH- 4B,SH -54 and Amra Marg to 6/8 lanes on the boundaries of the proposed Navi Mumbai international level at total project cost of Rs.2935.91 crores for a total length of 43.91 KMs is in progress. The work is taken up in 4 phases. The funding is being done by JNPT by obtaining ECB loan from SBI Hongkong & DBS Singapore, for loan amount of 400 million USD i.e. Rs.2600 crores, The work is in progress and will be completed during the year 2018.

Modernization: 

Development of infrastructure in Port based Multi product SEZ at JNPT

JN Port has planned SEZ in 277 hectares area. The work of land development is completed and construction of boundary wall work is substantially completed. The engineering, procurement & construction work is awarded in the month of oct 2016, Rs 476 crores. The EPC work will be compilted by 2018.

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Restructuring of container Yard for optimal yard utilization This project will help in optimum utilization of yards and will improve the performance parameters. The work is phase I is awarded in March, 2017. The work is commenced at site.

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Development of integrated centralized parking plaza The work of development of further infrastructure work in 45 hectare area such as top pavement buildings, RCC drains, firefighting , gates boundary wall etc.is taken up. This work was awarded in March 2017. The work is commenced at site and is in progress . Estimate cost is 149.31 crores.

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Development of common Rail yard inside Port The work is taken up through Indian Port Road Company Ltd. (IPRCL). The work is awarded in March 2017. Estimate cost is 91.91 crores. The work is commenced at site.

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Modernization of cargo handling equipments RTGCs JNPT has awarded the work of supply of 15 nos E-RTGCs to M/s Sany Group of companies, with an estimated cost of Rs.160 crores by March 2017, 15 nos. of E-RTGCs received in the port and 9 nos. and commissioned in November -2017

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Development of Dry Port at Wardha The Wardha Dry Port is being developed in a bid to cater effective logistics services to the industries in Vidarbha region and improve cargo throughput at the port. The land acquisition of Dry Port is completed. The dry port is proposed to be constructed over an area of 140 Ha in phased development, of which around 21 Ha is being developed in the phase-I. An investors meeting will be conducted at a convenient date as per approval from authorities for tender process for selection of ICD. The construction work for the boundary wall of the dry port is in process.

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Solar Power projects (25MW) At present solar power projects of 0.8 MW on roof tops of Port building taken by JNPT. For development f additional solar power projects of 25 MW, JNPT has decided to assess the viability of the project or else to purchase the solar power through power purchase agreement (PPA) Development of Dry Port at Jalna JNPT is developing a Dry Port at Jalna to cater to the traffic from the Marathwada region. The land acquisition (190 hectares) for the project has already completed. Planning and estimates for Phase-I is in process. The Area levelling work for Phase-1 (60Ha) has also commenced. The construction of boundary wall is in process. The Detailed Project Report for development of Dry Port is in process.

OUR VISION To be recognized as India’s premier container port providing integrated to the best interest and customers.

OUR MISSION The port is committed to meeting the needs and expectations of its customers through: Equipping itself with state-of-the-art equipment and technology and efficient, professional and computer integrated terminal operation system. Conforming to international standards and offering competitive rates. Ensuring security and safety of life, equipment and cargo. Perceiving the principles of sustainable development. Courtesy to customers.

Environmental Management at Jawaharlal Nehru Port Trust Jawaharlal Nehru port is committed to sustainable development and adequate measures are being taken to maintain ecological balance. The total land available with JNPT is around 3402 hectares out of this, 1147 hectares area (34%) of the port is under green cover including mangroves. The port’s ecosystem consists of rich and diversified flora and fauna. To address the Global climate change problem at port level, the Port has taken up various initiatives to achieve “Green Port Status” and has received many commendation/awards in this endeavour.

JNPT SEZ UTILITY Road: ►Main road is of 45 meters width and the internal roads are of 45 and 30 meters width Length of Internal Roads – 11.73 km ►All the roads are of Pavement Quality Concrete (PQC) ►Storm water drain and street lights will be erected in either side of the road Design standards – IRC and MoRTH ►Design Speed – 50 Kmph ►Pavement design – Rigid – IRC 58-2011 (Design life - 30 yr.)

Power ►1 MVA for construction activities to be available at site within 3-4 months ►45 MVA power capacity planned ►Distribution license and power purchase agreement procurement is in progress ►Power connection will be given up to the site layout entrance. ►Incoming power by MSEDCL up to 220/23KV SS ►Supply power through three 33/11 kV switching stations – 2 in processing area and 1 in non-processing area ►Solar powered street lighting with facility to change over to MSEDCL power in case of inadequate solar energy Flexibility in case of addition/subtraction of user/plots Single type of cables used (Ease in material management during O&M) Individual can further step down as per their requirements Water ►1 MLD: To be available at site within 3-4 months ►13 MLD of total water capacity planned ►Three OHTs (Two for processing & one -Non processing area) Source: Gawan Reservoir (MJP) MJP will be supplying the treated water. Chlorination facility will be available Rain Water Harvesting ►Along road side to cater water from the road surface and adjoining land area. ►Grid type arrangement based on the site grading plan.

►Discharged into natural steam located west-north. ►Maximum level at south-east side near SH-54 is 6.8m. ►Designed as per IRC SP: 42 and 50. ►A minimum longitudinal gradient is maintained to attain the minimum self-cleaning velocity. Longitudinal pipe with inlet chamber at selected interval of storm water drain is proposed for ease and eco-friendly construction at site. Sewage Treatment Plants ►STP proposed for a capacity of 6.5 MLD with SBR technology. 3.8 MLD from PA 2.64 MLD from NPA ►Treated water to be recycled through a dedicated distribution system for all the plots for various purposes such as gardening and other industrial uses after tertiary treatment Greenery Ratio ►The Greenery ratio is at 20 % of the total land area Access to the site ►The SEZ site has 1 gate and 1 emergency exit. ►The SEZ site is 5 Kms away from the Container landing area ►Railway connectivity to other industrial areas

SWOT Analysis Strengths, Weaknesses, Opportunities and Threats: Strength: Frequency/regular services

Infrastructure

Focus on providing appropriate services and infrastructure and increase marketing functions role and strength to maintain frequency of traffic. The marketing function could develop strategies to retain shipping lines based o customers management initiatives. Upgrade Infrastructure in sea side and cargo handling to improve throughout from current facilities. Equipment such as RMQC, Tugs etc may need up gradation to maintain world class performance levels.

Connected to major locations in India

These investments need to be made ensure JNPT’s competitive strength in port infrastructure.. JNPT should endeavor to maintain its well connected status by ensuring connectivity to planned major corridors such as GOLDEN Quadrilateral etc.

Financial Position

Leverage financial position to invest in future development plans. Opportunities for investment should be actively sought and followed, based on prudent financial reasoning.

Availability of Land

Identify and implement opportunities for land usage which are complementary to the ports strengths. Areas such s logistics are possible value-added opportunities which JNPT could exploit.

Weakness: Distance from major shipping routes

JNPT should carefully evaluate the trans-shipment

Infrastructural limitation for liquid cargo

Revamping of pipelines network to ensure optimum flow rates from the ships to the tanks.

Restriction arising from limited draft

This would also lead to reduction in the time consumed in pigging etc and therefore increase the liquid cargo capacity. Dredging to permit larger vessels in lines with the requirement of future ship sizes.

Opportunity before choosing the same focus.

JNPT should endeavor to be able to handle a majority (over 84%) of the ship sizes that sail in the region (Europe Asia Route)

Limited space of expansion

IT Connectivity

JNPT needs to undertake measures to optimize current utilization of space both on sea side and land side , This would entail up gradation of equipment and automation. Implement mechanism to IT enable activities at the port to largest extent.

Threats: Increase in Competition

Increasing complexity of multiple terminals

JNPT will face increasing competition in the future from private terminals operators The new ports will attract traffic from Northern regions in the future Complexity would arise due to increase in number of terminals operators in areas where shared resources are

involved. An ex. Would be mixed train (train carrying cargo for one terminal) handling as it would require various terminals operators loading/unloading on the same train.

Increasing bargaining power of shipping lines

Similarly other processes where common infrastructure is used such as port roads etc will face increasing pressures. Globally a few shipping lines control majority of the traffic. Currently the top 20 shipping lines comprise over 90% of the global maritime traffic.

JNPT MARKETING Functions of Port Marketing: As such port is not directly involved for direct marketing although it is carrying indirect activities like advertising, publicity, promotion and public relations . ADVERTISING: JNPT do release advertisement in news papers, magazines, hoarding, banners , sponsorships, (in print as well as electronic media) under which it undertakes release of interviews features cover story editorial (of chairman , deputy chairman etc). PUBLICITY: JNPT carry various publicity campaign at places like airports, road shows, prints publicity materials like brochures, leaflets, imposing JNPT logo on t-shirts, caps at sports venue, banners, trade meets, preconference participation in exhibitions, seminars, tradeshows, trade fairs etc. JNPT also publishes brochures calendars, diaries, industrial photography, documentary frame etc. PROMOTION: To promote JNPT, JNPT offers operational concessions, fix window and single window clearance etc. PUBLIC RELATION: JNPT conducts meetings with customers, stakeholders, port customers meetings daily worthy meetings, trade meets for better interactions and in order to maintain good public relations. JNPT marketing organize port visits for students of engineering, management, officers, delegation and foreign delegations.

MARKETING STRATEGY JNPT’s marketing strategy would revolve around the levers of price, customers, geographies, services and communication and would delineate JNPT’S target within each of the levers.  Cost- how would JNPT ensure competitive prices for its services and how would it provide better value to its customers?  Customers- what customers would JNPT focus on?  Geographies- what geographies would be serviced by JNPT?  Communication- what would be JNPT’S marketing strategy to attract and retain customers?  Services- what service would JNPT offer?

ELEMENT

DETAILS

COST

JNPT would endeavor to reduce its cost of operations through undertaking various initiatives that aid in improving efficiency. This would include development of automation infrastructure to reduce process times, improvement and up gradation of infrastructure to increase efficiency and regular training of employees to improve turnaround times.

CUSTOMERS

JNPT would also focus on improving service level of current processes through improvement in processes and introduction of marketing team which would undertake customer management practices to ensure service levels and customer satisfaction. JNPT would focus on customers in the western and northern region. It would aim at attracting and retaining these customers through various customers driven as well as service driven initiatives. The customers would ne large shipping lines for cargo and marine related services. To retain and attract these customers JNPT would develop customers’ centric marketing team which would ensure customer satisfaction within the users. JNPT would also endeavor to capture a larger part of the value chain and get direct contact with the end customers. This would be done through extension of services.

GEOGRAPHIES

JNPT would service Maharashtra and the northern geographies. To ensure smooth flow of traffic from these regions JNPT would ensure that all elements in the part are developed (connectivity, RMGCs, RMQCSs etc) Apart from this JNPT would also endeavor to attract traffic from northern regions by providing additional value through services such as warehousing, EPZ etc. Over the long term JNPT would also explore entering the transport logistics (Rail freight containerization) between northern geographies and the port to ensure smooth flow of traffic.

COMMUNICATION

SERVICES

JNPT would also develop a marketing team to ensure that the users are aware of its capacities and services offering. The marketing team would also ensure effective customers management and satisfaction through account management and feedback.(These have been detailed within the commercial strategy) JNPT would primarily be a landlord port facilitating port services executed by services providers. It would as a port offer the following services in the following areas   

Containers (Marine and Cargo Handling) Liquids (Marine and Cargo Handling) Logistics (CFS, Empty Yards and FTZ)

The services provided by JNPT would help in retaining and attracting customers. Apart from this services such as logistics would also enable JNPT to generate additional revenues from resources available at JNPT. The additional services would also help industrial growth in the region and would help industries in:  

Reducing transits losses, Reduce time to market;

Thereby, aiding the industries in reducing costs. JNPT would also evaluate entering into new service segments such as Ro-Ro if they are found to be an attractive proposition in the future. This service would also act as a sustainable competitive advantage of JNPT over other ports in India.

JNPT’s marketing team will strive toward efficient customer’s management and developing the same as a competitive advantage of JNPT over other ports. The role of the marketing team will be centered on the following four aspects    

Customers Price Promotion Competition

Customers: The marketing team would be divided into key account managers. Each account manager would be responsible for 2-3 customers and would aim at maximizing Revenues from the customers as well as for resolving any customer related queries.

Price: The marketing team would constantly study the competitors and would play a role in developing pricing strategies for the port. These strategies would revolve around volume discounts, growth discounts as well as route discounts.

Competition: The team would regularly study the environment to develop reports on competitor plans as well as future scenarios. These would be provided to various departments of the port for appropriate action. The team would also be responsible for identifying future opportunities. These can arise from specific routes, specific industries or specific customers. The marketing team would then develop strategies to exploit the opportunity for the port. These would be passed to the senior management of review.

Promotion: The marketing team would regularly showcase capabilities of JNPT in port and logistics to customers to attract new customers and retain strategic customers.

Findings: Delay in the functioning is caused due to:  Adverse environmental conditions and also no berth availability.  JNPCT uses the old technology whereas GTIPL terminal uses latest technology and works faster. For e.g. obtaining permission for berth ring of vessel. The shipping agent has to physically meet the port officer and ask for written permission, because the permission asked through emails are left unanswered.  Fixed window are given for each vessel as a result, pervious vessel misses window then the next one too. In such cases the vessel has to wait outside the port and so, the average waiting time for three terminals varies. If the previous vessel takes more time for unloading and loading, or has broken down or is performing poorly then naturally, the vessel gets delayed.  In JNPT, the container positions in yard are sometimes not updated so the shipping agent needs to send surveyors for physically visiting the container yards for updating container positions.  Express database is so vast that it is difficult for the staff to access the data and analyze it quickly.  Quality of service provided by the GTICT and NSICT are superior as compared to JNPCT.  If any changes are required to be made in facilities so, in other to implement those changes lot of delay is caused.

Recommendation: As per the analysis of the project following are the recommendations and Suggestion for shipping lines / Agents and Port:  To retain its position in comparison with other ports, JNPT should use updated technology, improve infrastructure and optimize the export /import procedure in various ways.  Shipping agents should make entries for the containers in advance, so that it becomes easy for the port planning g departments to plan the container in yard and vessels.  The documents required should be kept ready for any transaction from port as well as from shipping agents side to avoid delay because of documentations.  JNPCT should adopt newer technology for the smooth functioning.  JNPCT should, like other terminals provide their users with a unique username and password so that they can keep the track of the containers online and should not send surveyors.  JNPCT however sends a codec which provides detail of container positions, but the file is in different format and has to be changed and viewed and also not is updated .So, it is advisable to keep a single format.  The cargo to be transported by road should be compulsory Insured.  System should be updated regularly and also integrated software should be developed, especially for communicating between marine, PPD dept, and other depts., so that updates about arrival and berthing can be updated.  Cranes should be well maintained for better performance.  Charge heavy penalties to make employees work more efficiently.