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Article
Publication date: 6 April 2020

Deepankar Sinha and Shuvo Roy Chowdhury

Ports are a significant link in a global supply chain and an economic entity that contributes to the country's economy. India has around 200 ports along its coastline of about…

Abstract

Purpose

Ports are a significant link in a global supply chain and an economic entity that contributes to the country's economy. India has around 200 ports along its coastline of about 8,000 Km, yet none of them perform at par with many Asian ports. In the Indian port system, cargo throughput and the turnaround time (TAT) of ships calling at ports constitute the most significant performance measures. These performance metrics do not integrate sustainability measures such as emission levels and energy consumed. The draft is a constraint in many ports and ships visit with less than full shipload cargo. The TAT for such vessels may be lower, but the emission per ton of cargo carried is higher compared to a ship with full shipload cargo. Many ports have old or poorly maintained equipment. This state of equipment increases pollution and consumption of energy. In this paper, an attempt has been made to address the issue of undesirable and right outputs simultaneously in an Indian port system. This paper proposes a framework to ensure zero defects in Indian port operations and a port-sustainability-index to measure sustainable services in Indian ports.

Design/methodology/approach

The authors used data envelopment analysis (DEA) to show that all private terminals did not perform efficiently and contradicted the notion of Indian policymakers that privatization will lead to an increase in performance levels. A literature review was carried out to identify the dimensions and factors that affect ports' performance. A case study of a major port in India and expert group discussion was done to ascertain the views of stakeholders on deficiencies in the system. The authors complemented this approach with sentiment analysis of opinions expressed by stakeholders over a while, using SentiStrength analysis software (Thelwell, 2010, 2012). The authors used the combined findings to develop the port-sustainability-index (PSI), identify the research question, and develop an ontology of the port system. The authors use the concepts of ontology-design-pattern (ODP) and logistics-service-map (Glöckner et al., 2014; Glöckner and Ludwig, 2016, 2017), opinion mining (Pang and Lee, 2008) and competency questions (Glöckner and Ludwig, 2017) to develop a port system map followed by the identification of critical elements; and the flows (physical and information flow) that gets disrupted due to defects in the system. The ontology led to the identification of competencies and capabilities a port needs to possess. Based on these identification process competency questions were drawn, and the authors identified the plausible defects that port may encounter. The authors suggested the sustainability metrics for monitoring port performance and policy changes based on the competency questions, defects, and mitigation plans.

Findings

The authors introduced four KPIs, namely, port-sustainability-index (PSI), load factor (lx and ly), draft ratio (dr), and turnaround-time ratio (TATR). The authors suggested significant policy changes for Indian ports. These included –(1) Introduction of virtual arrival (VA) policy, reducing randomness in the system by pre-scheduling arrivals and activities. (2) Redefining economic life of equipment and machinery in terms of expenditure, income and desired levels of output. (3) Pricing port charges based on stakeholders’ ability and willingness to pay. The port needs to declare its productivity levels and frame their charges accordingly. (4) The ports need to frame an output-oriented privatization policy where it specifies the growth of the port. (5) Framing vessel pricing policy where a vessel may pay tax for the use of non-clean fuel or a get discount for bringing higher parcel load. (6) Levy lower port charges for the shipper for transporting cargo by rail and barges. (7) Introduce a differential pricing system where port levies lower charges for export cargo compared to import load.

Research limitations/implications

The research work can be extended to develop a simulation model to carry out policy experimentations concerning the improvement of performance and carry out sustainable operations. Alternatively, researchers may develop a multi-criteria optimization model to determine the best course of action, keeping the objective function as minimization of PSI value.

Practical implications

This paper provides the means to the Indian ports to remain competitive, lower emission levels and energy consumption, and optimize emission per ton of cargo handled in the port.

Social implications

Society significantly benefits from this study as it recommends ways to minimize pollution that has a significant impact on human lives. Besides, the measures suggested in the paper will lower the cost of exports and imports, enhancing the real income of consumers.

Originality/value

The area of sustainable port operations has previously been under-researched in the Indian context. Authors contribute to the sustainable port operation literature by suggesting a port-sustainability-index, a framework to assess the defects in port operation and development of a port-ontology for further research in the area of a port system.

Details

International Journal of Quality & Reliability Management, vol. 39 no. 8
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 25 October 2018

Deepankar Sinha and Shuvo Roy Chowdhury

The Government of India announced its liberalization policy in the year 1991. Since then, the major ports in India introduced privatization in various forms into their operations…

Abstract

Purpose

The Government of India announced its liberalization policy in the year 1991. Since then, the major ports in India introduced privatization in various forms into their operations. However, the share of total traffic (cargo) handled by major ports fell from 90 per cent in 1991 to around 70 per cent in 2015, losing share to minor ports. These major ports, except for the port of Kamarajar, are governed by the Major Port Trust Act, 1961. None of the Indian ports feature amongst the top 20 ports of the world. Interestingly, several ports in Asia, namely, seven ports from China, Singapore, Hong Kong and Malaysia are on that list. Several studies and reports have shown that privatization in India did not yield the desired results. Ports in India have adopted a hybrid mode of governance, aligned between a landlord port model and a service port model. This paper aims to address the question – What is the optimal way to mix privatisation and government control in the operations of major ports of India.

Design/methodology/approach

In this paper, the authors attempt to develop an optimization model for port planners to decide on the optimum mix of privatized and self-managed operations so as to maintain efficiency and maximize revenue.

Findings

The model tested on a major port in the country shows that the present privatization policy followed by the port needs revision. A similar plan to revise their policies can be carried out for other major ports in the country.

Originality/value

The model is generic and can be used by any port in the world operating under conditions similar to those in India.

Details

Indian Growth and Development Review, vol. 12 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 3 February 2022

Bishal Dey Sarkar, Ravi Shankar and Arpan Kumar Kar

In Industry 4.0 era, many existing port logistics systems are inconsistent, old and ineffective and it restricts the effective operations of port logistics. The study aims to…

1384

Abstract

Purpose

In Industry 4.0 era, many existing port logistics systems are inconsistent, old and ineffective and it restricts the effective operations of port logistics. The study aims to understand the issues faced by the players/actors of port logistics in the Industry 4.0 era for emerging economies and to develop a conceptual framework for managing the port logistics issues associated with it and by providing their possible solutions.

Design/methodology/approach

The study is divided into two parts, first part deals with identifying the major port logistics issues in Industry 4.0 era for emerging economies. It is achieved by conducting a semi-structured interview during the field visit to one of the major container handling ports in India. Second, the study adopts Soft System Methodology (SSM) to understand the issues and challenges faced by various actors of port logistics in the Industry 4.0 era and uses CATWOE analysis to identify the root causes.

Findings

Issues related to loading/unloading, transit, storage (warehouse), customs clearance, regulatory authorities, port management unit and inland transport connection providers are considered in the study and using SSM a final implementable model has been developed. This study focuses on analyzing and understanding the complete communication and organization structure of the port logistics system. The study identifies the major issues, various inefficiencies and root causes faced by various actors of port logistics during information sharing, cargo movement, the arrangement of the cargo shipments, etc. Further, the study develops a final implementable model by combining the delivery system, criteria system and Industry 4.0-enabled system.

Research limitations/implications

The study enables concerned authorities like state government, central government and policymakers to have a profound understanding of the issues faced by the actors of the port logistics system. The study brings out valuable insights that help managers and stakeholders to make informed decisions for managing the port logistics issues and develop necessary policies aimed to deliver the cargoes in right place at right time. The current study also has some limitations because of sensitivity associated with concerned areas, due to its confidentiality, lack of availability of complete data and the nonsharing attitude of respondents. Further, the study was conducted only for private container shipping terminals and public container terminals were not included.

Originality/value

This research analyzes the port logistics sector as a whole system through SSM to identify issues and challenges faced by various actors of port logistics for emerging economies in the Industry 4.0 era. The study develops a comprehensive and integrated framework for reducing the unpredictability of costs and time for key processes. Further, the framework creates a transparent platform and helps in bringing standardization to ports.

Details

Benchmarking: An International Journal, vol. 30 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Book part
Publication date: 25 May 2022

Suparna Banerjee and Aparna Banerjee

Ports have played an important role in the history of Indian trade as they had always been the poles of international trade and commerce since colonial times. They had also acted…

Abstract

Ports have played an important role in the history of Indian trade as they had always been the poles of international trade and commerce since colonial times. They had also acted as a catalyst for the economic development of the nations from historic times till now. Despite the tremendous growth of various other major modes of transport systems such as railways, roadways in case of land routes for internal trade and airways for external trade, ports still continue to coexist with them mainly in sea-borne exchange of goods both in internal as well as in external trade of India. This chapter studies the impact of globalization on economic development of India through the maritime trade growth at Major ports, being the sustainable transport mode, during the period (1980–2020). Using econometric and statistical tools it observes that Major ports have played a significant role in growth of sustainable transport and trade development within India, since the colonial times till date. Not only that, positive impact of globalization, (in terms of growth of trade globalization index) also have resulted both in increased volume of total and overseas trade performance in overall growth of international trade at Major ports of India, thus, reflecting higher economic development.

Details

Globalization, Income Distribution and Sustainable Development
Type: Book
ISBN: 978-1-80117-870-9

Keywords

Article
Publication date: 9 December 2019

Sajeev Abraham George and Anurag C. Tumma

The purpose of this paper is to benchmark the operational and financial performances of the major Indian seaports to help derive useful insights to improve their performance.

Abstract

Purpose

The purpose of this paper is to benchmark the operational and financial performances of the major Indian seaports to help derive useful insights to improve their performance.

Design/methodology/approach

A two-stage data envelopment analysis (DEA) methodology has been used with the help of data collected on the 13 major seaports of India. The first stage of the DEA captured the operational efficiencies, while the second stage the financial performance.

Findings

A window analysis over a period of three years revealed that no port was able to score an overall average efficiency of 100 per cent. The study identified the better performing units among their peers in both the stages. The contrasting results of the study with the traditional operational and financial performance measures used by the ports helped to derive useful insights.

Research limitations/implications

The data used in the study were majorly limited to the available sources in the public domain. Also, the study was limited to the major seaports which are under the Government of India and no comparisons were carried out with other local or international ports.

Practical implications

There is a need to prioritize investments and improvement efforts where they are most needed, instead of following a generalized approach. Once the benchmark ports are identified, the port authorities and other relevant stakeholders should work in detail on the factors causing inefficiencies, for possible improvements in performance.

Originality/value

This paper carried out a two-stage DEA that helped to derive useful insights on operational efficiency and financial performance of the India seaports. A combination of the financial and operational parameters, along with a comparison of the DEA results with the traditional measures, provided a different perspective on the Indian seaport performance. Considering the scarcity of research papers reported in the literature on DEA-based benchmarking studies of seaports in the Indian context, it has the potential to attract future research in this field.

Details

Journal of Global Operations and Strategic Sourcing, vol. 13 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 12 July 2021

C. Gayathri, V. Kamala, M.S. Gajanand and S. Yamini

Ports handle a significant portion of international cargo, so the performance of ports plays a major role in the economic development of a country. This paper aims to study how…

Abstract

Purpose

Ports handle a significant portion of international cargo, so the performance of ports plays a major role in the economic development of a country. This paper aims to study how port performance depends on various interdependent factors and how it requires a holistic approach, which accounts for all the necessary criteria that contribute to the overall efficiency and performance.

Design/methodology/approach

An integrated fuzzy DEMATEL-TOPSIS approach with an objective to evaluate the operational capability and financial performance of the ports is proposed. A case study is presented with an analysis of the major South Indian ports to assess port operational performance and evaluate various financial ratios to assess financial performance.

Findings

Through a review of the literature and based on the inputs from experts, six criteria affecting the operational performance and six financial criteria were identified. The debt coverage ratios turned out to be the most important, while the liquidity ratios were the least important. The six operational criteria have almost similar importance. The final results indicate a consistent overall performance by the Ennore Port, except during one financial year.

Practical implications

The proposed solution approach helps to identify and concentrate on the criteria that affect port performance. It will also help to evaluate and understand the dynamics involved in the performance of ports.

Originality/value

This work highlights the key measurable operational and financial criteria that affect the efficiency of ports. The integrated fuzzy DEMATEL-TOPSIS approach provides a better way to evaluate and benchmark port performance.

Details

Benchmarking: An International Journal, vol. 29 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

Case study
Publication date: 18 November 2009

Tathagata Bandyopadhyay, G. Raghuram, Yashoverman Sharma and Niraja Shukla

Kolkata Port (KoPT) had achieved a turnaround from having made a loss of Rs 7.5 crores (cr) in the year 2000–01 to a net surplus of Rs 465.1 cr in the year 2006–07. A variety of…

Abstract

Kolkata Port (KoPT) had achieved a turnaround from having made a loss of Rs 7.5 crores (cr) in the year 2000–01 to a net surplus of Rs 465.1 cr in the year 2006–07. A variety of initiatives had been taken during the intervening years with a focus on tariff rationalization, revenues from alternate sources, infrastructure development and productivity improvements. While these had yielded results, there was a fundamental issue of operational complexity and inability to compete due to the locational disadvantage. KoPT was a riverine port with two locations, 232 kms and 115 kms upstream on the Hooghly with draft limitations.

Two significant studies having implications for future strategies of KoPT had recently been submitted in March and November 2007. The top management of the port, including the Chairman who was responsible for driving many of the initiatives, was concerned that it may not be possible to achieve long term sustainable growth continuing with the strategies used so far. A well thought out future roadmap, breaking away from the present thinking, was essential sustained growth.

Details

Indian Institute of Management Ahmedabad, vol. no.
Type: Case Study
ISSN: 2633-3260
Published by: Indian Institute of Management Ahmedabad

Keywords

Article
Publication date: 9 September 2013

Samsul Islam, Tava Olsen and M. Daud Ahmed

Empty container trucks may cause a deficit in transport capacity and contribute to congestion and emissions in the port territory. Reengineering of the container truck hauling…

2859

Abstract

Purpose

Empty container trucks may cause a deficit in transport capacity and contribute to congestion and emissions in the port territory. Reengineering of the container truck hauling process to introduce truck-sharing arrangements using the truck appointment system has the potential of reducing the number of empty-truck trips. The paper aims to discuss these issues.

Design/methodology/approach

This research evaluates the results from an investigation of the truck appointment system using a case study approach. The data collection phase involved primary and secondary sources along with using publicly available data on port operations.

Findings

The study explores a dynamic truck-sharing facility for a computer-based matching system to assign probable export containers to available empty slots of a container truck. The proposed model reengineers the truck appointment system with a potential to reduce the number of empty-truck trips to increase container transport capacity around seaport gates.

Research limitations/implications

Due to continuous increases in container-freight traffic, leading seaports of the world are experiencing a capacity shortage resulting in traffic congestion. The research findings are useful in practice as the proposed truck-sharing model can be introduced to enhance capacity in the container transport chain of the port territory.

Originality/value

The empty-trucks problem has not been addressed much in studies from a decentralized perspective where all truck operators have an equal chance to contribute to optimize the supply chain in contrast with the typical one-company-based optimization. The solution addressed here uses the shared-transportation concept to cover the research gap.

Details

Business Process Management Journal, vol. 19 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 19 October 2012

Vanumamalai Kannan, S.K. Bose and N.G. Kannan

The purpose of this paper is to assist ocean container carriers in their service quality improvement strategies to ensure breakthrough performance in India.

1307

Abstract

Purpose

The purpose of this paper is to assist ocean container carriers in their service quality improvement strategies to ensure breakthrough performance in India.

Design/methodology/approach

A total of seven container carriers have been involved in this study. To explore the list of service criteria, reviews of transportation literature, customer satisfaction survey questionnaires of container carriers, SERVQUAL battery, telephonic interviews and focus groups were conducted. For data collection, a shipper satisfaction questionnaire was administered. After data collection, a mean score analysis using SPSS 15 was taken up to assess the present service performance levels of the select container carriers. Then a performance gap analysis was carried out using the gap analysis formula found in the benchmarking literature.

Findings

Out of the 48 service criteria which decide the service quality of ocean container carriers, Maersk is the top performer in respect of 23 criteria, both Hanjin and MSC are top in eight criteria each, Evergreen is top in five criteria, APL is top in four criteria and CMA CGM is top in two criteria. Hapag has not scored top in any of the criteria. The gap analysis shows that APL needs to improve 44 areas in which it has shown negative gaps, CMA CGM needs to improve 47 criteria, Evergreen 45 criteria, Hanjin 47 criteria, Hapag 48 criteria, Maersk 40 criteria and MSC 43 criteria to become excellent.

Practical implications

This paper has enabled container carriers to understand the list of criteria that decide their service quality in the Indian container carrier industry. It has also informed them of their present service performance levels, and their areas of strengths and weakness. This will help them in efficient resource allocation. Understanding the areas and sizes of negative gaps, they can take appropriate steps to close them and become excellent.

Originality/value

This is the first service quality improvement study undertaken in the Indian container carrier industry and it has opened up enormous scope for future research.

Details

Benchmarking: An International Journal, vol. 19 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 28 March 2024

Nikesh Nayak, Pushpesh Pant, Sarada Prasad Sarmah and Raj Tulshan

Logistics sector is recognized as one of the core enablers of the economic development of a nation. However, inefficiency in logistics operations impedes the achievement of…

Abstract

Purpose

Logistics sector is recognized as one of the core enablers of the economic development of a nation. However, inefficiency in logistics operations impedes the achievement of intended targets by increasing the cost of doing business. Also, it is difficult to improve the efficiency of a country’s logistics operations without a metric for evaluating and understanding logistics capabilities and efficiency. Therefore, the present study has developed In-country Logistics Performance Index (ILP Index) to propose a benchmarking tool to measure the in-country logistics competitiveness, particularly in the setting of emerging economies, i.e. India.

Design/methodology/approach

This study has developed a unified index using principal component analysis and quintile approach. In addition, the proposed index relies on several dimensions that are developed and illustrated using quantitative secondary panel data.

Findings

The findings of this study reveal that the quality of infrastructure, economy, and telecommunications are the three most important dimensions that may significantly support the growth of the transportation and logistics sector. The results reveal that Gujarat, Tamil Nadu, and Maharashtra are the top performers whereas, Bihar, Jharkhand, and Jammu and Kashmir scores the least due to the insufficient logistics infrastructure as compared to other Indian states.

Originality/value

Given the extensive focus on international-level logistics index (like World Bank’s LPI) in the existing literature, this study intends to develop in-country logistics index to evaluate the logistics capabilities at the regional and state level. In addition, unlike prior studies, this study utilizes quantitative secondary data to eliminate cognitive and opinion bias. Moreover, this benchmarking tool would assist decision-makers in idealizing standard practices toward sustainable logistics operations. Additionally, the ILP index could serve the international investors in crucial decision-making, as it provides valuable insights into a country’s logistics readiness, influencing their investment choices and trade preferences. Finally, the proposed approach is adaptable to measuring the overall performance of any other industry/economy.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

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