Tech, manpower, containerisation boost efficiency

Experts say that while it may be unfair to compare one port’s efficiency level with another’s, internal factors like the level of investment in mechanisation, and others including containerisation and availability of skilled labour are impacting port operations.

Among a) trained manpower, b) technology, c) hinterland connectivity, d) other (specify), which is the biggest factor for relatively low efficiency in turnaround times among ports?
Pinto
There are different ports with different cargo handling capacities. To take one example, if you consider containers, JNPT and Mumbai can hardly be compared. Mumbai is a locked port where there is no draft available, so it does not have the latest equipment, so in the case of Mumbai, the factor is lack of equipment. In the case of JNPT that will not be so, but if you look at JNPT’s performance, it is comparable with most ports anywhere in the world; turnaround is at par with what you see elsewhere. So, we need to disaggregate.

Kumar
Basically, it is technology and trained people. Technology means having good handling infrastructure. For example, high-capacity trains, conveyor belts with high efficiency and speed. Trained manpower is also responsible to some extent. So for a port developer, the planning of cargo movement is very important.

Tulsiani
All the four factors are equally important and interdependent. Turnaround time can be looked at in two ways: turnaround from the time a vessel arrives at anchorage, is allowed to berth and complete operations; and turnaround time with respect to quay-side operations. In the case of the former, berth availability, draft and tidal window play a very important role. Development of minor ports has brought in additional capacities that bridge this divide. In the case of actual quay-side operations, trained manpower, technology and hinterland connectivity make all the difference.

Turnaround times should also be viewed with respect to the different trades. Containerised trade is a great leveller efficiencies at ports in India with mainline vessel calls are almost at par with the rest of the world. Schedule reliability is critical to container movement. In the bulk trades, port/terminal efficiency is extremely important. The load or discharge rates determine port stay, with a direct bearing on the freight rate per mt. In this case mechanisation, technology, trained manpower and hinterland connectivity at ports like APM Terminals Pipavav presents a value proposition that is hard to ignore. Trained manpower and technology are in a port’s control and are subject to constant evaluation and improvement, while hinterland connectivity and the policy regime are external factors on which we can exert limited control. These factors are important while setting up the project and although improvements are possible, it is a slow and tedious process. Cabotage relaxation and coastal shipping can increase throughputs at ports manifold without stressing the road or rail networkthe insistence on non-existent Indian flagged vessels to carry coastal trades is hindering the development of ports in India.

How modern are our major and minor (non-private) ports in comparison with private and international ports?
Pinto
It depends on which port we are talking about. For example, Kolkata Port isn’t necessarily well-equipped as compared to JNPT or Chennai because there is a much smaller channel. The newer ports are extremely well equipped. Ports like JNPT and Chennai, which are in the race for handling containers, are also well equipped, as are Tuticorin, Cochin and Vallarpadam.

Kumar
Major ports are definitely as modern as private ports, as whatever their terminals operations runs its through renowned global private players who come with very good infrastructure. All major ports with container terminals operated by private parties are famous for their productivity, safety and security standards. Private ports don’t find it necessary to offer port operations to internationally renowned parties, as they usually like to cut down on the costs and try to run the port at a minimum cost. So we cannot say that all private ports are modern or have the best of the safety and security systems while state-run ones do not.

Tulsiani
In the 1990s, allowances were made for the entry of private operators, but the real capacity creation and capital investment only happened post-2000; they continue. Gujarat Maritime Board (GMB) was the pioneer in India for promoting public-private partnership (PPP) for development, and APM Terminals Pipavav is the first PPP port to be set up in India.

Private ports which have with foresight invested in mechanisation, technology, manpower, processes and safety are equipped to cater to the trade.

Is it safe to assume that one of the factors contributing to Mundra’s overtaking Kandla as the biggest port in India is operational efficiency? How so?
Pinto
Mundra is handling more cargo because the port is right at the mouth of the channel that comes in. It has the advantages of deep draft and it is closer to the international shipping line.

Besides, Mundra has done excellent work in connectivity. They have ensured to get good in and out. They have even established their own railway track. That is a great achievement and for that they have to be given the full credit. Another factor is their investment in the latest equipment, hence the efficiency.

Kumar
No. Mundra has not yet reached anywhere close to Kandla’s total tonnage. There are definitely lots of operational efficiency hurdles [in a state port]: Being a government organisation, we cannot implement projects in short time as decisions and approvals take a lot of time. Private ports have all the freedom to take a decision, so they can do it much faster.

Tulsiani
Operational efficiency is one of the factors that have played a part in this development. The composition of their cargos is another factor. Operational efficiency is related to the kind of equipment deployed, the load and discharge rates they are able to offer, efficiency of mechanised or non-mechanised transport to the storage yards, and quick load and discharge of rail rakes for evacuation.

The adoption or change of which technology has improved efficiency levels of our ports?
Pinto
Most of our ports have the equipment that is necessary. Paradip Port has one of the most modern automatic handling systems. The same thing is true of Mormugao for their handling plan. I do not think our ports lack modern equipment, nor that they lack technology or trained staff because most people who worked in major ports are now working elsewhere in the non-major ports and in ports outside India.

Kumar
Technology does improve a lot of things. Now, the non-productive period of the berth is reduced, facilitating much more cargo handling in the same berth, which has increased through adoption of technology. Major ports will never cut down on costs, provided some ports come with a proper projection and proper ideas what they want to do. I do not think the ministry will ever turn it down and say no to [those ideas].

What would be the most crucial operational element that can bring better efficiency?
Pinto
There is a need for a system that reacts better to the market. Major ports tend not to react to the market because typically they have been government owned and efficiency is never the criteria and the wage is fixed out of proportion to what they have.

Kumar
Just having manpower is not enough. Manpower training is very important to increase a port’s efficiency. The training part was not so much earlier in the Indian ports but of late thing have improved. Recently, we have set up a pilot stimulator at JNPT which was never done anywhere in the country in India. So, skill development along with technology adoption will really bring some positive change in efficiency of ports.

Tulsiani
As of now, we have implemented a majority of technological solutions needed for better efficiency. Importantly, as newer technology keeps emerging, it should be available for ports to implement. Also, technological solutions, as good as they are, cost a premium, the cost-benefit ratio is vital here.

Can PPP be the solution for better efficiency?
Pinto Sure. It is not lack of funds because major ports are sitting on huge amounts of money. It is the idea that can bring in better work culture, latest technology, and best management practices. The greatest thing that’s result ed from PPP is the realisation that there is competition.

Kumar
Yes. Especially, in an older or existing port, if one wants to do some new projects, on PPP, the biggest advantage is through partnership. These partners can help in the business other than just running day-to-day operations of the port, to ensure that getting cargo, and ensure that the throughput is enhanced.

Tulsiani
The answer is yes, and this is already at work. APM Terminals Pipavav is one such PPP and the modus operandi I’d suggest is the one our sister terminal APM Terminals Mumbai operates under. JNPT is the port authority and one of the three container terminals is developed and operated by APM Terminals Mumbai. All indications from the ministry of shipping are this is the direction in which future policy will continue.