INTERNSHIP PROJECT REPORT FINAL Saransh

OPTIMIZATON OF PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL Page i

PROJECT REPORT

ON

OPTIMIZATON OF PORT CAPACITY – A STUDY OF

VADINAR OIL TERMINAL

Submitted to the University of Petroleum & Energy Studies in partial fulfillment

of the requirements leading to the award of the Degree of

MBA in Port & Shipping Management

By

Mr. Saransh Tewari

(Reg. No. R310212018)

2012-2014

COLLEGE OF MANAGEMENT & ECONOMIC STUDIES

UNIVERSITY OF PETROLEUM & ENERGY STUDIES Energy Acres, P.O. Bidholi

Dehradun – 248007

OPTIMIZATON OF PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL Page ii

CERTIFICATE

This is to certify that the dissertation, entitled “OPTIMIZATION OF

PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL”, submitted

to the University of Petroleum & Energy studies, in partial fulfillment of the

requirements for the award of the Degree of MBA in Port & Shipping

Management is a record of study done by Mr. Ashish Sharma and Mr. Saransh

Tewari, during the period of their study (2012-2014) in the Department of

Transportation under College of Management & Economic Studies at University of

Petroleum and Energy Studies, Dehradun, under my supervision and guidance and

has not formed the basis for the award of any Degree / Diploma / Associateship /

Fellowship or other similar title to any candidate of any university.

______________________

Guide and Supervisor

_______________ _________________________

Dean Course Coordinator/

Head of the Department

OPTIMIZATON OF PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL Page iii

DECLARATION

I hereby declare that the dissertation, entitled “OPTIMIZATION OF PORT

CAPACITY – A STUDY OF VADINAR OIL TERMINAL”, submitted to the University

of Petroleum & Energy Studies, in partial fulfillment of the requirements for the

award of the Degree of MBA in Port and Shipping Management is a record of

original research work done by me during the period of 2012-2014 under the

supervision and guidance , and it has not formed the basis for the award of any

Degree / Diploma / Associateship / Fellowship or other similar title to any

candidate in any university.

Place:

Date: Signature of the Candidate

Signature of the Candidate

OPTIMIZATON OF PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL Page iv

ACKNOWLEDGEMENT

I take this opportunity to thank Captain Deepak Sachdeva who has

mentored me on this project. He believed in me and gave me a free hand to work

independently, thereby, helping me improve my decision making and problem

solving skills.

I would like to mention that Captain Deepak not only approved my

recommendations but gave us an opportunity to implement the same successfully,

which was definitely a different experience for me as I had to face practical

problems during implementation.

I gratefully acknowledge the regular support from Captain Alok Kumar

(Head of Marine Operations), Captain Banshiva Ladva (Port Captain), Mr.

Saurabh Darshan (Sr. Manager, Marine Operations), Mr. Ajay Pokiya

(Marine Maintenance Incharge), Mr. Rajil Nagrecha (Marine Operations),

Mr. Deep Sompura (Marine Operations), Mr. Sanjay Barpatre (HSEF), Mr.

Shankar Roy (Administration).

I gratefully acknowledge the regular support from Dr. T. B. Raju who

continuously took feeds from us regarding the project and motivated us

thoroughly.

OPTIMIZATON OF PORT CAPACITY – A STUDY OF VADINAR OIL TERMINAL Page 1

ABSTRACT

This study provides a methodological framework which uses and evaluates internally

generated information in order to find the relation between various factors and the throughput of

an oil terminal and how it can be optimized. Global ports are operating in an extremely complex

and competitive environment, wherein measuring, monitoring, and improving, port performance

are key elements of port competitiveness. Assessing port performance is a multileveled task. Port

practice is not different, as port planning, modernisation and capacity expansion are processes

commonly based on the outcome of these measurements of port efficiency. This study focuses

mainly on the operations of an oil terminal and compares berth throughput with berth capacity in

order to find out whether the terminal is operating at an optimum level or not.

Here the researcher is trying to study the effect of factors such as loading rate, parcel size,

loading time and number of vessels handled per year on the total throughput of the terminal. The

study examines and reveals that there are various discrepancies and factors involved in

calculating the port capacity of dedicated terminal and tells how it can be fully optimized.

Keywords:- Port Capacity, Optimization, Port efficiency, Berth throughput, Loading rate,

Loading time, Number of ships.


TABLE OF CONTENTS

ABBREVIATIONS ....................................................................................................................... 4

CHAPTER 1 – INTRODUCTION OF TOPIC .......................................................................... 6

1.1 PORT CAPACITY ................................................................................................................... 6

1.2 PLANNING AND SCHEDULING .......................................................................................... 6

1.3 PORT THROUGHPUT ............................................................................................................ 8

1.4 PORT EFFICIENCY ................................................................................................................ 8

1.5 OBJECTIVE OF THE STUDY ................................................................................................ 9

CHAPTER 2- INTRODUCTION OF ORGANISATION ...................................................... 11

2.1 ESSAR PORTS ....................................................................................................................... 11

2.2 ESSAR PORT LIMITED - PERFORMANCE FOR YEAR ENDED ON 31st MARCH, 2013.

....................................................................................................................................................... 12

2.2.1 SECTOR OVERVIEW ........................................................................................................ 12

2.2.2 COMPANY OVERVIEW ................................................................................................... 13

2.2.3 KEY HIGHLIGHTS ............................................................................................................ 14

2.3 VADINAR OIL TERMINAL LIMITED (VOTL) ................................................................. 14

2.3.1 FACELITIES ....................................................................................................................... 15

2.3.2 CROSS-COUNTRY PIPELINES ........................................................................................ 15

2.3.3 SERVICES ........................................................................................................................... 16

2.3.4 SAFETY AND SECURITY ................................................................................................ 17

2.3.5 STATISTICS AND TARIFFS ............................................................................................. 18

2.3.6 VADINAR HIGHLIGHTS .................................................................................................. 18

CHAPTER 3- LITERATURE REVIEW AND REFERENCES ............................................ 25

3.1 LITERATURE REVIEW ....................................................................................................... 25

3.2 REFERENCES ....................................................................................................................... 26

CHAPTER 4- METHODOLOGY ............................................................................................ 28

4.1 RESEARCH METHODOLOGY............................................................................................ 28

4.2 RESEARCH DESIGN ............................................................................................................ 28

4.3 AREA OF THE STUDY ........................................................................................................ 29

4.4 SOURCES OF DATA ............................................................................................................ 29


4.5 STATISTICAL TOOL USED ................................................................................................ 29

4.6 DATA ANALYSIS ................................................................................................................. 29

4.7 CORRELATION AND REGRESSION ................................................................................. 30

4.8 LIMITATIONS OF THE STUDY.......................................................................................... 30

CHAPTER 5- ANALYSIS AND INTERPRETATION .......................................................... 32

5.1 DETERMINING FACTORS WHICH AFFECT PORT CAPCITY, EFFICIEENCY AND

THROUGHPUT ........................................................................................................................... 32

5.1.1 SHORE ELEMENTS........................................................................................................... 33

5.1.2 SHIP ELEMENTS. .............................................................................................................. 34

5.2 TO CHECK THE ACCURACY OF THE DATA PROVIDED BY THE COMPANY BY

CALCULTING TERMINAL THROUGHPUT AND BERTH OCCUPANCY. ......................... 35

5.3 TO KNOW THE EFFECT OF CHANGE IN EACH FACTOR ON TERMINAL

THROUGHPUT WHEN OTHER FACTORS REMAINS CONSTANT AND DETERMINING

THE PERCENTAGE CONTRIBUTION OF EACH FACTOR ON THROUGHPUT. .............. 40

5.3.1 EFFECT OF LOADING RATE ON THE THROUGHPUT. .............................................. 40

5.3.2 EFFECT OF LOADING TIME ON THE THROUGHPUT. .............................................. 42

5.3.3 EFFECT OF BERTH OCCUPANCY ON THE THROUGHPUT. .................................... 44

ASSUMPTIONS: .......................................................................................................................... 46

5.4.1 WHEN PUMPING CAPACITY FROM PIT IS 100% ACHIEVED WITH BERTH

OCCUPANCY OF 80.57% [AS PER FY – 13] ........................................................................... 46


OCCUPANCY OF 70% [AS PER FY - 13] ................................................................................. 48

5.5 FINDINGS .............................................................................................................................. 51

5.6 SUGGESTIONS ..................................................................................................................... 52

5.7 CONCLUSION ....................................................................................................................... 53

BIBLIOGRAPHY ....................................................................................................................... 55


ABBREVIATIONS

ABS American Bureau of Shipping

ATF Aviation Turbine Fuel

Avg. Average

BS Bharat Stage

COT Crude Oil Tanks

DNV Det Norske Veritas

EBITDA Earnings before Interest, Tax, Depreciation and Amortization

EOL Essar Oil Limited

EPL Essar Ports Limited

FO Fuel Oil

FY Fiscal Year

GDP Gross Domestic Product

Hrs. Hours

HSD High Speed Diesel

HSE Health, Safety and Environment

ISO International Organisation for Standardization

ISO/TS ISO Technical Specification

KL Kilo Litres

LPG Liquidified Petroleum Gas

MARPOL International Convention for the Prevention of Pollution from Ships

MMTPA Million Metric Tons Per Annum

MS Motor Spirit

MT Metric Tons

No. Number

OHSAS International Occupational Health and Safety Management System

PAT Profit After Tax

PHA Petroleum Handling Agreement

PIT Product Intermediate Tanks

POL Petroleum, Oil and Lubricants


PSU Public Sector Unit

RoSPA Royal Society for the Prevention of Accidents

SKO Superior Kerosene Oil

Tph Tons Per Hour

SPM Single Point Mooring

VGO Vacuum Gas Oil

VOTL Vadinar Oil Terminal Limited

W/O White Oil


CHAPTER 1 – INTRODUCTION OF TOPIC

1.1 PORT CAPACITY

PORT CAPACITY is the estimated capacity of a port to clear cargo in 24 hours usually

expressed in metric tons. It is the important factor to stimulate port competitiveness and boost

regional development. With the growing international sea traffic and change in technology in the

maritime transportation industry seaports are coping with mounting pressure to upgrade and

provide cutting edge technology. They are also being forced to improve their efficiency to

provide comparative advantages that will attract more traffic.

Capacity utilization of the port is considered to be very important factor in calculating the

efficiency of the port. No port can utilize 100% of its capacity. There will always be discrepancy

in the capacity of the port it is handling and actual capacity it is utilizing. What should be the

capacity of the port? Is the most important question which every company has to deal with.

There are different methods of calculating the capacity of the port. The companies adopt those

method(s) which suits them considering different aspect of it.

Measures of port capacity indicators use a diverse range of techniques for assessment and

analysis, but although many analytical tools and instrument exist, a problem arises when one

tries to apply them across ports and terminals.

If the capacity of berth is 100% utilized, the cost of handling per ship would reduce but

will increase the waiting time of ship outside the port leading to increase in cost to ship owner. If

number of berths are exceeded, the capacity will reduce at that period of time and will add to the

cost of the company due to developing of a new berth as well as handling cost per ship will also

increase in that period. But the contradiction to this method is rather increasing the number of

berth, cargo can be transshipped which will neither increase the cost of port nor the cost of ship

owner and waiting time of ships will also be reduced.

1.2 PLANNING AND SCHEDULING

Managing a modern dedicated oil berth, with its complex and varied activities, demands a

systematic and comprehensive approach to operations planning. Detailed planning is essential to


ensure the proper allocation of the resources and the effective co-ordination of the activities,

particularly those involving individuals and organisations outside the port. No matter how well

day-to-day control and supervisory functions are, it is impossible to achieve the cargo throughput

of which the berth is capable unless operations are planned effectively, to produce a smooth,

cost-effective and balanced flow of cargo through the berth. Planning is an essential management

task for all activities on the berth.

Scheduling and planning are essential for keeping a company organized and focused on

long-term goals. Planning and scheduling go together in any business. Planning involves

determining what goals, company will accomplish and what path will it take to reach and attract

customers. Scheduling is determining when these plans will materialize.

Effective Communication is the key to build and manage a successful business. Effective

communication between various departments and between different employees with in that

department acts as oil that keeps engine of the vehicles working effectively.

Economic Planning and Scheduling department (EPS) is responsible for planning and

scheduling for Essar Oil Ltd. (EOL) and act as a linkage between Refinery, Product Intermediate

Tank and Crude Oil Tank. It develops schedule and plans on monthly and daily basis and is also

responsible for re-scheduling in case of any changes that might occur. It also keeps a check on its

implementation. There are Sales and Distribution Departments which deals with Domestic

vessels and International Supply and Trading Department which deals with export vessels.

Vadinar Oil Terminal Ltd. (VOTL) acts as facilitator. Quality, quantity and dates on

which crude oil is required are decided by EPS which communicates to IST, Mumbai for

arranging it. Once it is arranged Vessel unloads crude oil at VOTL and through SPM it goes to

COT. Then Schedules and Plans regarding quality and quantity of products required are directed

to refinery. As per the target set by EPS, refinery refines and extracts the products from crude oil

and sends it to PIT. Then S & D dept. and IST dept. communicates with the domestic and

international customers and develops a schedule for loading the product to their vessels. The

schedule is forwarded to EPS which further develops daily and monthly plans for VOTL


regarding number of vessels, quality and quantity of product, etc. PIT pumps out the product as

per the directions and VOTL loads it on the vessel of customers.

1.3 PORT THROUGHPUT

The average quantity of cargo and passengers that can pass through a port/terminal on a

daily basis from arrival at the port to loading onto a ship, or from the discharge from a ship to the

exit (clearance) from the port complex. Throughput is usually expressed in measurement tons, or

passengers. Reception and storage limitation may affect final throughput.

The method adopted in this study in calculating throughput of port is depending upon

four factors: -Turnaround time, loading rate, berth occupancy, handling time and number of ships

handled in the year.

Loading rate is given in m3/Hr., which has to be converted into metric tons as per the

specific gravity of the respective products port is handling.

Berth Throughput = Average Parcel Size* Total No. of Vessels.

Average Parcel Size = Average Loading Rate (effective)*Loading Time

No. of Vessel = Total Port Time (each product) / Turnaround Time

Adding the throughput of each product will give the Total Throughput of the port/terminal

which can further be compared with Total Capacity and delta can be assessed.

1.4 PORT EFFICIENCY

The comparison of what is actually produced or performed with what can be achieved

with the same consumption of resources (e.g. money, time, labor etc.). It is an important factor in

determination of Productivity.

In general, efficiency is a measurable concept, quantitatively determined by the ratio of

output to input. In several of these cases, efficiency can be expressed as a result as percentage of

what ideally could be expected, hence with 100% as ideal case.


Here the researcher has defined efficiency as the capacity utilization factor of the

terminal i.e. how much of the capacity it is utilizing of the total available capacity. The utilized

capacity is the total throughput of the berth and the total capacity available is the designed

capacity of the terminal.

The measure of efficiency is a concept directly related to the measure of productivity i.e.

total throughput. However, they are not analogous notions, even though they are treated as

synonymous, especially when the interest of the research/study is concentrated on comparing the

performance of the firms.

The idea behind the use of both concepts analogously is that a firm‟s performance

improves the more efficient and productive it is. Meanwhile, the fact that changes in productivity

are due to changes in efficiency, among other factors, may have had an influence in considering

both terms as equivalent.

1.5 OBJECTIVE OF THE STUDY

To get familiar with industry work ethics and connect theoretical learning to day to day

work carried out on an oil terminal.

To study and analyze the operations being carried out at Vadinar Oil Terminal.

To understand how berth capacity can be fully utilized.

To study how berth throughput is calculated at Vadinar Oil Terminal.

To ensure berth efficiency is maintained even if the capacity is increased.

To understand various factors which are affecting the capacity utilization of the terminal.

To study the relation between the factors affecting the berth capacity with the berth

throughput.


To identify and study elements required in deciding the efficiency of the port.

To identify constraints involved in optimizing berth capacity.

To identify the constraints faced by VOTL pertaining to satisfaction of its customers.


CHAPTER 2- INTRODUCTION OF ORGANISATION

2.1 ESSAR PORTS

Essar Ports develops, owns and operates ports and terminals, and is India's second-largest

private sector port and terminal company by capacity and throughput. The company's ports

business is held by Essar Ports Limited (EPL), which is listed on the Bombay Stock Exchange

and National Stock Exchange of India.

Essar Ports provides port and terminal services for liquid, dry bulk, break bulk and

general cargo, with an existing aggregate capacity of 104 MMTPA across two facilities located

at Vadinar (58 MMTPA) and Hazira (30 MMTPA) in the state of Gujarat, on the west coast of

India.

The Vadinar facility provides handling, storage and terminalling services for crude oil

and petroleum products to refineries and traders. The Hazira facility is an all-weather deep draft

bulk terminal for import of iron ore, pellets, coal, limestone and export of finished steel products.

The company is in the process of increasing its aggregate ports capacity to 158 MMTPA

with expansion projects at Vadinar and Hazira, a new port at Salaya in Gujarat and two terminals

at Paradip in the state of Orissa on the east coast of India.

The company's sites at Vadinar, Hazira and Salaya are strategically located on the

western coast of India in the state of Gujarat to service the growing demand from the land-locked

northern, north-western and central regions of India and are well connected to the state highways

and have, or will in the future have, connectivity to the railway network. Its sites at Paradip are

located on the eastern coast of the state of Orissa to service mineral and metal-rich eastern India

and are well positioned to service cargo for the steel and power industries.


2.2 ESSAR PORT LIMITED - PERFORMANCE FOR YEAR ENDED ON 31st MARCH,

2013.

2.2.1 SECTOR OVERVIEW

Indian port traffic is expected to grow at 8% over the next 5 years, as per Crisil research.

GDP growth is estimated to revive to the range of 6.1 to 6.7% in FY14 from approx. 5%

in FY13 as per budget for FY14.


Private investment is the key for revival of India‟s GDP growth.

The shipping ministry has released draft guidelines linking traffic to market forces, which

will be applicable to all future projects and will give big boost to investment in this

sector.

2.2.2 COMPANY OVERVIEW


Current capacity of 104 MMTPA being scaled up to 158 MMTPA by 2015

3 stand-alone ports on west coast and 2 terminals on east coast of India.

2.2.3 KEY HIGHLIGHTS

2.3 VADINAR OIL TERMINAL LIMITED (VOTL)

It is located within the conservancy of Kandla Port Trust, in the Jamnagar district of

Gujarat. It has Petroleum Handling Agreement (PHA) with Essar Oil Limited for handling POL,

crude from its onshore and offshore facilities. It started handling vessels from December, 2006.

It serves oil refinery and traders. The marine facilities consist of two product berths, one single-

point mooring (SPM) and cross-country pipelines.


The berths are located at Pathfinder Inlet creek, which lies between the two islands of

Kalubhar Tapu and Narara Bet. The pathfinder inlet is well sheltered from monsoon waves and

thereby permits uninterrupted navigation for ships approaching the berths. The jetty is capable of

handling vessels from 10,000 to 100,000DWT, and the SPM can accommodate 87,000 to

350,000DWT vessels.

2.3.1 FACILITIES

MARINE FACILITIES

FACILITIES JETTY LENGTH DRAFT DESIGN CAPACITY*

Jetty A 305m 20m 7 MMTPA

Jetty B 295m 16m 7 MMTPA

SPM NA 32m 27 MMTPA

*Basis Assumed Parcel Size

Tugs facility for towage and pilotage are provided by the Kandla Port.

The company operates tug and supporting crafts for marine support such as live diving, oil spill

detection and security.

SHORE FACILITIES

FACILITIES NUMBER OF UNITS CAPACITY

Crude storage tanks 13 and 3 slop tanks 1,136,800 KL

Product storage tanks

(liquid and gaseous products)

56 1,103,670 KL

Intermediate tanks 37 618,500 KL

2.3.2 CROSS-COUNTRY PIPELINES

Product pipelines: Products are transferred from the product intermediate tank (PIT) area

to the ships through pipelines and rigid loading arms. At Vadinar, three cross-country pipelines


of 24" diameter and 21.5 km long have been laid through the pipeline corridor between the PIT

and marine terminal for the transfer and ship loading of various products.

Crude pipeline: The crude that is unloaded from the tanker at the SPM is directly

transferred to the crude oil tanker (COT) via the facility's 48" subsea and 48" onshore pipeline

laid through its piping corridor.

Completed construction of 3 HSD tankages of 1,80,000 KL capacity during the FY13.

2.3.3 SERVICES

Petroleum product handling at the two product jetties.

Crude handling is carried out at the SPM.

Pilotage: The Kandla Port Trust provides pilotage and tugs for the terminal's berthing /

unberthing operations.

SLOP RECEPTION

In compliance with MARPOL, a slop reception facility is available at both jetties.

SHORE LEAVE AND TRANSPORTATION

Crew change and shore leave facility is available with prior permission from the

concerned authorities.

PRODUCTS HANDLING

VOTL handles following products for EOL which flow through cross country pipelines

connected to refinery.

Refinery

(MMT)

VOTL

Marine

(MMT)

Furnace oil 1.09 0.75

HSD BS II (Export) 1.1 1.1


HSD BS III 6.09 3.96

HSD Euro IV 1.72 1.56

MS BS II (Export) 2.01 2.01

MS BS III 0.86 0.42

MS Euro IV 0.07 0.03

Naphtha 0.78 0.78

SKO 0.57 0.37

VGO 1.62 1.62

ATF 0.01 0

Bitumen 0.2 0

LPG 0.82 0

TOTAL 16.95 12.6

2.3.4 SAFETY AND SECURITY

5 Star rating by the British Safety Council for health and safety.

Winner of the Sword of Honour from British Safety Council for health and safety.

The following safety standards have been implemented and the terminal certified by

ABS/DNV:

ISO 9001:2008 for Quality Management.

ISO 14001:2004 for Environment Management.

OHSAS 18001:2007 for Occupational Health.

ISO/TS 29001:2010 for Quality Management – Petroleum Sector.

ISO 28000:2007 for Security Management.

5 Star rating in the Environmental Management System. It is the first facility to get a

double five star in its very first audit.

Winner of the Greentech Award for Safety Management.


Vadinar continued to be award winning asset in the FY13 for the world class HSE

practices. Awards won during the year at India Shipping Summit, Gujarat Star Awards

and from the Royal Society for the Prevention of Accidents (RoSPA).

2.3.5 STATISTICS AND TARIFFS

The details of cargo handled in FY 2011-12 are as below (figures are in million metric

tonnes):

PARTICULARS FY 11 FY12 FY 13

Crude handling 13.20 12.18 16.49

Product handling

Jetty 8.70 8.29 12.60

Road 2.49 2.46 1.50

Rail 2.14 1.88 2.38

Gail pipeline 0.38 -- 0.46

Intermediate 3.14 6.40 6.40

TOTAL (MMT) 30.05 31.21 39.83

TARIFF

Wharfage for the handling of products at the marine terminal is as per the agreement

between Kandla Port Trust - Essar Oil Limited and Vadinar.

Pilotage and associated charges are as per the published scales of rates of the Kandla Port

Trust.

Port dues are as per the published scale of rates of the Kandla Port Trust.

2.3.6 VADINAR HIGHLIGHTS


CARGO HANDLED (MMTPA)

STATISTICS FOR THE VOLUMES OF PRODUCTS HANDLED BY VOTL

FY2012 FY2103 YOY

Growth

(%)

Cargo Handled (MMT) 8.29 12.6 51.99%

No. of Ships 204 300 47.05%

Refinery capacity (MMTPA) 16 20 25%

FY 2012

Overall

Berth A B Total


Volume Handled (MMT) 4.33 3.96 8.29

Volume Handled (MKL) 5.02 5.16 10.17

No. of Vessels 85 119 204

Export W/O Vessels

Berth A B Total

Turnaround Time 43.2 40.6 41.9

Days 1.8 1.69 1.75

Avg. Loading Rate (cubic metres/ Hour) 2118 2208 2163

Occupancy (Hours) 932.06 1124.05 2056.1

Total Hours Available 8160 8160 8160

Avg. Parcel Size 38790 39074 38392


PSU Vessels

Overall

Berth A B Total


Days 1.7 1.6 1.65

Occupancy (Hours) 697 3217.36 3914.36



Combined Grade

Berth A B Total



Days 1.7 1.6 1.65


Occupancy (Hours) 346.32 1818.5 2164.82


Avg. Parcel Size 6929 25863 16396


Single Grade

Berth A B Total


Days 1.7 1.6 1.65


Occupancy (Hours) 350.28 1398.46 1748.7


Avg. Parcel Size 27653 30027 28840


F.O Vessels

Berth A B Total

Turnaround Time 71.14 - 71.14

Days 2.96 - 2.96

Avg. Loading Rate (cubic metres/ Hour) 1344 - 1344

Occupancy (Hours) 3001.25 - 3001.25

Total Hours Available 8160 - 8160

Avg. Parcel Size 67975 - 67975


No. of Vessels 43 - 43

V.G.O Vessels

Berth A B Total

Turnaround Time - - -

Days - - -

Avg. Loading Rate (cubic metres/ Hour) - - -

Occupancy (Hours) - - -

Total Hours Available - - -

Avg. Parcel Size - - -

No. of Vessels - - -

FY 2013

Overall

Berth A B Total

Volume Handled (MMT) 6.13 6.48 12.6

Volume Handled (MKL) 7.69 8.19 15.88


Export W/O Vessels

Berth A B Total


Days 1.89 1.81 1.85


Occupancy (Hours) 1792.59 1083.58 2876.2



Avg. Parcel Size 46500 43884 45192


PSU Vessels

Overall

Berth A B Total


Days 1.7 1.8 1.75

Occupancy (Hours) 1900.32 4983.5 6883.82



Combined Grade

Berth A B Total


Days 1.8 1.9 1.85


Occupancy (Hours) 1700.47 3969.34 5669.81


Avg. Parcel Size 34554 39582 37068


Single Grade

Berth A B Total


Days 1.1 1.5 1.3



Occupancy (Hours) 199.45 1014.16 1213.6


Avg. Parcel Size 20793 31819 26306


F.O Vessels

Berth A B Total


Days 3 - 3






V.G.O Vessels

Berth A B Total


Days 2.92 - 2.92







CHAPTER 3- LITERATURE REVIEW AND REFERENCES

3.1 LITERATURE REVIEW

According to Osaretin, (2006)1, Sea-port operation is defined as cargo handling (or

moving) activity, performed by a designed company (gang or team), consisting of labor and

machines. It is also defined as the operation of a wharf and other port facilities, operation of port

passenger transport service, operation of cargo loading/unloading, haulage and warehousing

services within a port area and so on.

Presently, there is difficulty in defining port efficiency due to non-universal definition of

what indicates an efficient port or what port efficiency entails [3], an efficient sea-port should be

one that is competent in operations [3]. Based on this definition, efficiency of sea-port operations

is determined by duration (time) of ship's stay in a port, quality of cargo handling and quality of

service to inland transport vehicle during passage through the port [4]. Quality of cargo handling

is in the form of berth throughput and quality of service to inland vehicle is dependent on port

infrastructure. According to Tongzon and Heng (2005)2, Productivity has been identified as a

measure of sea-port operational efficiency.

TRUGILLO and NOMBELA (1999)5 stated that, there are various ways of measuring

port efficiency or productivity, although reducible to three categories: physical indicators, factor

productivity indicators and economical and financial indicators. Here in this study only physical

indicator has been discussed. Physical indicator generally refer to the time measures and are

mainly concerned with the ship (e.g. ship turnaround time, ship waiting time, berth occupancy

time, working time at berth).

Performance is the result of activities, strategic choices, allocation of resources and

ultimately operations deployed by an organisation over a given period of time. Measuring a

business performance provides a clear–cut image on how well this business functions comparing

to its predefined targets and/or comparing with its competitors. Following Bititci et al (2002)6,

businesses tend to measure performance in order to monitor and control; drive improvement;


maximize the effectiveness of the improvement effort; achieve alignment with organizational

goals and objectives; and reward and discipline users/customers.

The most complicated and intricate problem existing in the transport field today is the

turnaround time of the ships in the ports. An excellent indicator to maintain of port effectiveness

is the quantity of cargo worked per ship hour in ports with a high figure being desirable [7].

The few studies that have examined the main determinant factors have particularly

stressed the importance of the cargo handled and the type of the ship in which they were carried.

Contrary to the belief that a subdivision into liquid bulk, solid bulk and general cargo may well

be sufficient, a far more detailed analysis of the cargo mix is required to grasp the essential

differences in productivity [8].

3.2 REFERENCES

1. P. A. Osaretin, "Efficient Port Operations and Benefits of Actors--A Case Study of Tin

Can Island Port, Nigeria," Masters Dissertation, Goteborg University, Gothenburg, 2006.

2. J. Tongzon and W. Heng, "Port Privatization, Efficiency and Competitiveness: Some

Empirical Evidence from Container Ports (Terminal)," Transportation Research, Part A,

Vol. 39, No. 5, 2005, pp. 405-424.

3. G. De Monie, "Measuring and Evaluating Port Performance and Productivity," CEPAL

Review, No. 99, 2009, p. 173.

4. B. A. Blonigen and W. W. Wilson, "New Measures of Port Efficiency Using

International Trade Data," NBER Working Paper No. 12052, 2006.

5. TRUGILLO, L and NOMBELA, G., 1999, Privatisation and Regulation of the Seaport

Industry. Policy Research Working Paper 2181. Washington, DC: The World Bank.

6. Bititci, U., Carrie, A. and Turner, T. (2002) „Integrated performance measurement

systems: Structure and dynamics‟, in Neely, A. (ed.) Business Performance

Measurement: Theory and Practice, Cambridge University Press, Cambridge.


7. United Nations. United Nations Conference on Trade and Development. Port

Performance Indicators. 1976. (TD/B/C.4.131.Supp. 1/Rev.1).

8. Suykens, F. A Few Observations on Productivity in Seaport. Maritime Policy and

Management (Cardiff). Vol.10, No. 1, 17-40.


CHAPTER 4- METHODOLOGY

4.1 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It deals

with the various steps that are generally adopted by a researcher in studying the research problem

along with the logic behind them.

A broad definition of research is given by Martyn Shuttleworth - "In the broadest sense of

the word, the definition of research includes any gathering of data, information and facts for the

advancement of knowledge."

Another definition of research is given by Creswell who states - "Research is a process of

steps used to collect and analyze information to increase our understanding of a topic or issue". It

consists of three steps: Pose a question, collect data to answer the question, and present an

answer to the question.

The process used to collect information and data for the purpose of making business

decision. The methodology may include publication research, interviews, surveys and other

research techniques, and could include both present and historical information.

4.2 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

The type of research design selected for this study is Descriptive in nature. A descriptive

research uses a set of scientific methods and procedure to collect raw data structures that

describe the existing characteristics of a defined target population of a market structure. The data

and information generated through this descriptive design can provide the decision makers with

evidence that can leave to course of action.

Three main purposes of descriptive research are to describe, explain, and validate

findings. Description emerges following creative exploration, and serves to organize the findings

in order to fit them with explanations, and then test or validate those explanations (Krathwohl,

1993). The overall research design for the study is descriptive and analytical type.


4.3 AREA OF THE STUDY

The area of the study selected is factors and elements involved in calculating and

optimizing port capacity in Vadinar Oil Terminal Ltd., located in Gujarat.

4.4 SOURCES OF DATA

Data collection is the process of obtaining information from the respondents. It can be

obtained from primary or secondary sources. Primary data are the data obtained first hand by the

researcher.

The sources of data in this study are primary in nature.

Here in this study the data is collected through primary sources. The data used here by

the researcher is taken from company record files and master data sheet prepared by the

company for its own internal uses which basically constitute the base for the planning and

managing the whole operations for optimizing its functioning. Small interviews were also

conducted under the permission of the related authority for the questions which arises while

analyzing the data and for the proper understanding of the operations carried out at VOTL.

Observation method was also used to gather the data and analyze the operations.

4.5 STATISTICAL TOOL USED

The following statistical tools are used in the study for the analysis and interpretation of

data.

Correlation and Regression.

4.6 DATA ANALYSIS

Data analysis plays an important role in any research because ultimately it is an apt

analysis that would be of great use to the organization. However the entered data has to be

prepared for the analysis and this was done by calculation the Throughput of the terminal for the

FY12 and FY13 and comparing it with actual Throughput. The following tool has been taken for

analyzing the data collected and interpreting them.


4.7 CORRELATION AND REGRESSION

Correlation is the statistical tool which studies the relation between the two variables

and correlation analysis involves various methods and techniques used for studying and

measuring the extent of the relationship between the two variables.

“The two variables are said to be in correlation if the change in one of the variable results

in the change in other variable.’’

Regression analysis is used to predict the value of one variable (the dependent variable)

on the basis of other variables (the independent variables).

Dependent variable: denoted Y

Independent variables: denoted X1, X2, …, Xk

If we have only one independent variable then the model is

Y = a + bX

This is referred to as simple linear regression. The researchers would be interested in estimating

a and b from the data collected.

4.8 LIMITATIONS OF THE STUDY

The researcher may be biased on the part of respondents.

With the change in one factor, other factors also changes. But the researcher has

considered them constant.

While calculating berth occupancy VGO & FO are considered to be handled in both the

berth A & B whereas in actual it is handled only in berth A.


There are other factors also which affect the capacity of the port like berth occupancy,

demand for the cargo, waiting time of the ships, etc., but the researcher has not directly

included them in the report.

The results and findings are confined to a specific time period.

The volumes of the cargo dispatched from VOTL depend upon the capacity of refinery

and the marketing strategy of EOL. So the future projection recommended through the

study might deviate from the actual performance.


CHAPTER 5- ANALYSIS AND INTERPRETATION

The term analysis refers to the computation of certain measure along with searching for

patterns of relationship that exist among data – groups. In the process of analysis, relationships

or differences supporting or conflicting with original with what validity data can be said to

indicate any conclusions. Analysis of data in general way involves a number of closely related

operations which are performed with the purpose of summarizing the collected data and

organizing there in such a manner that they answer the research questions.

The objectives of the study on the basic of which analysis and interpretation are done are

as follows:

5.1 To determine the factors which affect capacity, efficiency and throughput of an oil terminal.

5.2 To check the accuracy of the data provided by the company by calculating terminal

throughput and berth occupancy.

5.3 To know the effect of change in each factor on terminal throughput when other factors

remains constant and determining the percentage contribution of each factor on throughput.

5.4 To project how much VOTL can handle effectively when pumping capacity from PIT is

100% utilized.

5.1 DETERMINING FACTORS WHICH AFFECT PORT CAPCITY, EFFICIEENCY

AND THROUGHPUT

Every port/ terminal want to determine its efficiency and throughput in order to take

decisions regarding its operations and management and to make it capable of taking on the

competition it face from other ports/terminals.

Here question arises on what factors the capacity, efficiency and throughput of a

port/terminal depend?

The answer is a number of factors which may vary port to port or terminal to terminal.


The factors are divided into two categories which are:-

5.1.1 Shore Elements.

5.1.2 Ship Elements.

Although these factors are divided into these two categories but they are interlinked and

depend on each other in one or other way.

5.1.1 SHORE ELEMENTS.

The factors on the shore side which play important part in deciding port/terminal

capacity, efficiency and throughput are: -

Number of Berths.

Berth Occupancy.

Turnaround Time

Navigational Restrictions and Facilities.

Tide Restrictions.

Waiting Time.

Loading Rate.

Loading Time.

Parcel Size.

Parcel Type.

Single Grade.

Multi Grade.

Product Type

Light/ White Products.


Heavy/ Black Products.

Shore Infrastructure.

Numbers & Configuration of Loading Arms.

Storage Capacity.

Pumping Capacity & Rate.

Compliance with various Regulations and Guidelines.

Communication between the stakeholders.

5.1.2 SHIP ELEMENTS.

Only shore elements cannot decide the port/terminal capacity, efficiency and throughput,

there are various factors on the ship side which play a significant role in deciding these.

Following are the Factors:-

Ship Operator.

Age of Ship.

Ship Size.

Tank Size.

Type of Ship.

Number of Tanks.

Concurrent De-Ballasting Capability.

Ship Venting Capability.

Number of Manifolds.

Capacity of Each Manifold.


5.2 TO CHECK THE ACCURACY OF THE DATA PROVIDED BY THE COMPANY

BY CALCULTING TERMINAL THROUGHPUT AND BERTH OCCUPANCY.

ASSUMPTIONS

Calculations based to sustain maximum annually evacuation projection by EOL through

Vadinar Oil Terminal in mmtpa.

Calculations are based on number of vessels handled in a year and loading rate achieved

by VOTL.

Ships are available at 1st day of Laycan.

Certified cargo is available as per shipping schedule.

No delays on account of unforeseen incidents i.e. product contamination, additional time

incurred on pigging/flushing.

Efficiency Factor is been calculated by dividing actual loading rate achieved with the

maximum pumping capacity of PIT.


FY 2011 – 12 TOTAL

Annual

Throughput

[mmtpa] 0.38 0.49 0.05 2.92 - 1.64 0.25 - 1.73 0.82 8.29

Annual

Throughput

[mmtpa] 384484.

3

488842.2 54917.8 2922940.

7

- 1635868.

6

252062.

0

- 1731681.

6

815044.

3 8285841.

5

Product

details

SKO Naphtha HSD

(Export)

FO VGO MS

(Export)

MS BS

III

MS Euro

IV

HSD BS

III

HSD

Euro IV

-

Specific

Gravity

0.78 0.6838 0.8285 0.9292 0.852

8

0.709 0.7205 0.719

8

0.8152 0.8184 -

Parcel Size [tonne] 24030.3 28755.4 54917.8 67975.4 - 44212.7 25206.2 - 33954.5 28105.0

No. of VSL 16 17 1 43 - 37 10 - 51 29 204

Turnaround Time at Oil Terminal

Rated Loading

Rate

[m3/hr] 1700 4000 4000 2000 - 4000 1700 - 4000 4000

Rated Loading

Rate

[tph] 1326.0 2735.2 3314.0 1858.4 - 2836.0 1224.9 - 3260.8 3273.6

Efficiency

Factor

0.819 0.550 0.552 0.680 - 0.547 0.836 - 0.450 0.386

Max Loading

Rate

[m3/hr] 1700 4000 4000 2000 2000 4000 1700 4000 4000 4000

Effective

Loading Rate

[m3/hr] 1392.9 2201.0

8

2207.2

5

1359.47 - 2189.68 1421.93 - 1798.51 1543.4

Effective

Loading Rate

[tph] 1086.46 1505.1

0

1828.7

1

1263.22 - 1552.48 1024.50 - 1466.15 1263.12

Loading Time [hrs] 22.12 19.11 30.03 53.81 - 28.48 24.60 - 23.16 22.25 223.557

POB to Loading [hrs] 4 4 4 4 - 4 4 - 4 4

Connecting

Loading Arm

[hrs] 1 1 1 1 - 1 1 - 1 1

Disconnecting

Loading Arm

[hrs] 1 1 1 1 - 1 1 - 1 1


Post Loading [hrs] 3 3 3 3 - 3 3 - 3 3

Awaiting Tide [hrs] 5 5 5 5 - 5 5 - 5 5

VGO Diesel

plug Load/

Discharge

[hrs] 0 0 0 16 - 0 0 - 0 0

Turn-around

Time

[hrs] 36.1 33.1 44.0 83.8 0.0 42.5 38.6 0.0 37.2 36.3 351.6

Total in Port

Time (in a year)

[hrs] 577.9 562.8 44.0 3603.9 - 1571.7 386.0 - 1895.1 1051.3 9692.7

Operation Time at Oil Terminal

Available

Time

[days] 365 365 365 365 - 365 365 - 365 365

Maintenance [days] 10 10 10 10 - 10 10 - 10 10

Total

Downtime

[days] 15 15 15 15 - 15 15 - 15 15

Operation

Time

[days] 340 340 340 340 - 340 340 - 340 340

Berth

Occupancy

[each

product]

[%] 3.54 3.45 0.27 22.08 - 9.63 2.37 - 11.61 6.44 59.39

Total Berth Occupancy at Oil Terminal

Total in Port Time [hrs] 9693

Operational Time [2 berths] [hrs] 16320

Berth Occupancy Factor [%] 59.39


FY 2012 - 13 TOTAL

Annual

Throughput

[mmtpa] 0.37 0.78 1.10 0.75 1.62 2.01 0.42 0.03 3.96 1.56 12.60

Annual

Throughput

[mmtpa] 367024 780501 1095528 753658 1619119 2014925 418503 34504 395990

1

1560091 1260375

9

Product Type

SKO Naphtha HSD

(Export)

FO VGO MS

(Export)

MS BS

III

MS

Euro

IV

HSD

BS III

HSD

Euro IV

Specific

Gravity

0.78 0.6838 0.8285 0.9292 0.8528 0.709 0.7205 0.7198 0.8152 0.8184

Parcel

Size

[tonne] 30585.4 31220.1 52168.0 47103.7 55831.7 54457.4 14946.6 17252.

1

43998.9 39002.3

No. of

VSL

12 25 21 16 29 37 28 2 90 40 300

Turnaround Time At Oil Terminal

Rated

Loading Rate

[m3/hr] 1700 4000 4000 2000 2000 4000 1700 4000 4000 4000

Rated

Loading Rate

[tph] 1326 2735 3314 1858 1706 2836 1225 2879 3261 3274

Efficiency

Factor

0.976 0.553 0.558 0.702 0.835 0.580 0.901 0.452 0.489 0.472

Max

Pumping

Rate [PIT]

[m3/hr] 1700 4000 4000 2000 2000 4000 1700 4000 4000 4000

Effective

Loading Rate

[m3/hr] 1660 2210.

1

2233.8

1

1404 1670 2320 1532.36 1807.1 1957 1886.11

Effective

Loading Rate

[tph] 1294.8 1511.

3

1850.7 1304.6 1424.2 1644.9 1104.1 1300.8 1595.3 1543.6

Loading

Time

[hrs] 23.6 20.7 28.2 36.1 39.2 33.1 13.5 13.3 27.6 25.3 260.5

POB to [hrs]


Loading 4 4 4 4 4 4 4 4 4 4

Connecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Disconnecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Post Loading [hrs] 3 3 3 3 3 3 3 3 3 3

Awaiting Tide [hrs] 5 5 5 5 5 5 5 5 5 5

VGO Diesel

plug Load/

Discharge

[hrs] 0 0 0 16 16 0 0 0 0 0

Turn-around

Time

[hrs] 37.6 34.7 42.2 66.1 69.2 47.1 27.5 27.3 41.6 39.3 432.5

Total in Port

Time (in a

year)

[hrs] 451.5 866.5 885.9 1057.7 2006.9 1743.0 771.1 54.5 3742.2 1570.7 13149.8

Operation Time At Oil Terminal

Available Time [days] 365 365 365 365 365 365 365 365 365 365

Maintenance [days] 10 10 10 10 10 10 10 10 10 10

Total

Downtime

[days] 15 15 15 15 15 15 15 15 15 15

Operation

Time

[days] 340 340 340 340 340 340 340 340 340 340

Berth

Occupancy

[each product]

[%] 2.77 5.31 5.43 6.48 12.30 10.68 4.72 0.33 22.93 9.62 80.57

Total Berth Occupancy At Oil Terminal

Total In Port Time [hrs] 13150




5.3 TO KNOW THE EFFECT OF CHANGE IN EACH FACTOR ON TERMINAL

THROUGHPUT WHEN OTHER FACTORS REMAINS CONSTANT AND

DETERMINING THE PERCENTAGE CONTRIBUTION OF EACH FACTOR ON

THROUGHPUT.

TABLE - 1

5.3.1 EFFECT OF LOADING RATE ON THE THROUGHPUT.

Loading Rate [X] Throughput [Y] X2 XY

1295 0.367 1677025 475.265

1511 0.78 2283121 1178.58

1851 1.095 3426201 2026.845

1305 0.753 1703025 982.665

1424 1.619 2027776 2305.456

1645 2.015 2706025 3314.675

1104 0.418 1218816 461.472

1300 0.034 1690000 44.2

1595 3.959 2544025 6314.605

1544 1.56 2383936 2408.64

14574 12.6 21659950 19512.403


From the above table the value of R = 0.5208 indicates that the loading rate and the throughput

are positively related and the relation is strong. The value of R2 = 0.2712 states that 27.12% of

the total variation in the throughput is explained by the loading rate. Thus it indicates that there

are some other factors which also have some effect on the throughput alongwith loading rate.

CHART - 1

Correlation

Equation

b a Coefficient of

Correlation (R)

R2

Y = a + bX .00273739 -2.729472562 0.52080339 0.27123617


When loading rate will increase throughput will also increase, other factors

remaining constant.

With the rise in loading rate efficiency of the berth will also increase.

TABLE - 2

5.3.2 EFFECT OF LOADING TIME ON THE THROUGHPUT.

Loading Time [X] Throughput [Y] X2

XY

23.62 0.367 557.9044 8.66854

20.66 0.78 426.8356 16.1148

28.19 1.095 794.6761 30.86805

36.11 0.753 1303.9321 27.19083

30.2 1.619 912.04 48.8938

33.11 2.015 1096.2721 66.71665

13.54 0.418 183.3316 5.65972

13.26 0.034 175.8276 0.45084

27.58 3.959 760.6564 109.18922

25.27 1.56 638.5729 39.4212

251.54 12.6 6850.0488 353.17365


From the above table the value of R = 0.4653 indicates that the loading time and throughput are

positively related and the relation is weak. The value of R2 = 0.2165 states that 21.65% of the

total variation in the throughput is explained by the loading time. This indicates that there are

some other factors which have some effect on the throughput alongwith loading time.

CHART - 2

When loading time will increase throughput will increase but the change in

throughput will be less, other factors remaining constant.

When loading time will increase the efficiency of the berth will fall.

Correlation

Equation

b a Coefficient of

Correlation (R)

R2

Y = a + bX 0.069304597 -0.483287832 0.4653174 0.216520283


TABLE - 3

5.3.3 EFFECT OF BERTH OCCUPANCY ON THE THROUGHPUT.

Berth Occupancy [X] Throughput [Y] X2

XY

2.76 0.367 7.6176 1.01292

5.3 0.78 28.09 4.134

5.4 1.095 29.16 5.913

6.48 0.753 41.9904 4.87944

12.29 1.619 151.0441 19.89751

10.68 2.015 114.0624 21.5202

4.72 0.418 22.2784 1.97296

0.33 0.034 0.1089 0.01122

22.93 3.959 525.7849 90.77987

9.62 1.56 92.5444 15.0072

80.51 12.6 1012.6811 165.12832

Correlation

Equation

b A Coefficient of

Correlation (R)

R2

Y = a + bX 0.174723122 -0.146695853 0.979514452 0.959448563


From the above table the value of R = 0.9795 indicates that the berth occupancy and throughput

are positively related and the relation is very strong. The value of R2 = 0.9594 states that 95.94%

of the total variation in the throughput is explained by berth occupancy when other factors are

kept constant.

CHART - 3

When Berth Occupancy will increase throughput will increase, other factors

remaining constant.

With the increase in Berth Occupancy, the efficiency of the berth will increase.


5.4 TO PROJECT HOW MUCH VOTL CAN HANDLE EFFECTIVELY WHEN

PUMPING CAPACITY FROM PIT IS 100% UTILIZED.

ASSUMPTIONS:

In the table 5.4.1 loading time is assumed to be same as in Financial year 2013 for each

product.

In the table 5.4.2 loading time is calculated through unitary method by converting loading

time at 80% berth occupancy to loading time at 70% berth occupancy

80 % -------- 261 Days

Therefore 70 % ------- (261*70)/80 = 228.37 Days

In both the tables Total Port time of each product is calculated through the ratio of

effective loading rate.


OCCUPANCY OF 80.57% [AS PER FY – 13]


Total

Annual

Throughput

[mmtpa] 1.0 1.5 2.2 1.8 1.9 2.8 0.4 0.7 2.3 1.9 16.6

Annual

Throughput

[mmtpa] 101266

9

147592

3

2181738 183859

3

189427

3

2814106 43198

3

68099

1

233838

5

188326

4 1655192

4

Product Type

SKO Naphtha HSD

(Export)

FO VGO MS

(Export)

MS BS

III

MS

Euro

IV

HSD

BS III

HSD

Euro

IV

Specific Gravity 0.78 0.6838 0.8285 0.9292 0.8528 0.709 0.7205 0.7198 0.8152 0.8184

Parcel Size [tonne] 31824 48823 64954 66902 66518 79550 17148 28072 69618 58311

No. of VSL 32 30 34 27 28 35 25 24 34 32 302


Max Pumping

Rate [PIT]

[m3/hr] 1700 4000 4000 2000 2000 4000 1700 4000 4000 4000

Effective

Loading Rate

(assumed)

[m3/hr] 1700 3400 2800 2000 2000 3400 1700 3000 3050 2850

Effective

Loading Rate

[tph] 1326 2325 2320 1858 1706 2411 1225 2159 2486 2332

Loading Time [hrs] 24 21 28 36 39 33 14 13 28 25

POB to Loading [hrs] 4 4 4 4 4 4 4 4 4 4

Connecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Disconnecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Post Loading [hrs] 3 3 3 3 3 3 3 3 3 3


VGO Diesel

plug

Load/Discharge

[hrs] 0 0 0 16 16 0 0 0 0 0


Turn-around

Time

[hrs] 38 35 42 66 69 47 28 27 42 39

Total in Port

Time (in a year)

[hrs] 1209 1058 1411 1814 1965 1663 705 655 1411 1260 13150


Available Time [days] 365 365 365 365 365 365 365 365 365 365


Total Downtime [days] 15 15 15 15 15 15 15 15 15 15

Operation Time [days] 340 340 340 340 340 340 340 340 340 340





5.4.2 WHEN PUMPING CAPACITY FROM PIT IS 100% ACHIEVED WITH BERTH OCCUPANCY OF 70% [AS PER FY - 13]

Total

Annual

Throughput

[mmtpa] 0.52 2.00 1.99 0.81 0.65 2.18 0.42 1.68 2.34 2.02 14.6

Annual

Throughput

[mmtpa] 515738 2000304 1989978 80698

8

645731 2177333 42318

8

168087

5

234053

0

201552

2 14596192.

4

Product Type

SKO Naphtha HSD

(Export)

FO VGO MS

(Export)

MS

BS III

MS

Euro

IV

HSD

BS III

HSD

Euro

IV

Specific

Gravity

0.78 0.6838 0.8285 0.929

2

0.8528 0.709 0.720

5

0.7198 0.8152 0.8184

Parcel Size [tonne] 19896.

7

61166.1 60897.0 39081

.7

32919.

2

65757.5 16977

.0

52766.8 69955.7 61562.4


No. of VSL 26 33 33 21 20 33 25 32 33 33 288


Max Pumping

Rate [PIT]

[m3/hr] 1700 400

0

4000 2000 2000 4000 1700 4000 4000 4000

Effective

Loading Rate

[m3/hr] 1700 340

0

2800 2000 2000 3400 1700 3000 3050 2850

Effective

Loading Rate

[tph] 1326 232

5

2320 1858 1706 2411 1225 2159 2486 2332

Loading Time [hrs] 15 26 26 21 19 27 14 24 28 26

POB to

Loading

[hrs] 4 4 4 4 4 4 4 4 4 4

Connecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Disconnecting

Loading Arm

[hrs] 1 1 1 1 1 1 1 1 1 1

Post Loading [hrs] 3 3 3 3 3 3 3 3 3 3


VGO Diesel

plug Load/

Discharge

[hrs] 0 0 0 16 16 0 0 0 0 0

Turn-around

Time

[hrs] 29 40 40 51 49 41 28 38 42 40 400


Available

Time

[days] 365 365 365 365 365 365 365 365 365 365


Total

Downtime

[days] 15 15 15 15 15 15 15 15 15 15

Operation

Time

[days] 340 340 340 340 340 340 340 340 340 340





Berth Occupancy Factor [%] 70

Through table 5.4.1 researcher has suggested the maximum throughput that can be achieved by the terminal when PIT capacity is 100%

utilized at berth occupancy of 80% which was the overall berth occupancy of the terminal in the financial year 2013. But as per guidelines of

UNCTAD and IPA berth occupancy for dedicated terminal having 2 berth should be 70%, so the researcher has reduced the berth occupancy factor to

70% in the table 5.4.2 and has shown the maximum throughput that can be achieved by the terminal, when 100% of PIT capacity is utilized.

This concluded that terminal throughput can be increased upto 14.6 MMTPA at 70% berth occupancy and 100% capacity utilization of PIT,

when the refining capacity of refinery will be at approximately 23.17 MMTPA. If refinery will increase its capacity above 23.17 MMTPA, then

VOTL will need to consider the suggestions given by the researchers.


5.5 FINDINGS

Determining Port/ Terminal throughput is a complex task and involves a number of

factors.

All the factors are not of same significance but their contribution towards Terminal

throughput cannot be neglected.

Loading rates are dependent on the specific gravity of each product. So loading rate of

each product should be defined separately as per its specific gravity.

At present the terminal is operating at overall berth occupancy of 80% and efficiency of

more than 90%.

Terminal efficiency is directly linked with the total Terminal throughput.

Efficiency of a Terminal will decrease if loading time and Ship turnaround time

increases.

Terminal efficiency will increase with increase in loading rate.

Terminal efficiency is strongly explained by the berth occupancy when other factors are

kept constant but in reality every factor changes and thus the relation between the berth

occupancy and throughput loses its characteristics.

One connection for installing loading arms for black and white product each is available

at Berth A and one connection for installing loading arm for white product is available at

Berth B.

Communication between terminal and PIT area is one of the most significant factors for

efficient operations.

Use of latest technologies is one another factor for increasing the efficiency of operations

at a dedicated terminal.


Although loading rates of terminal up to 2500 m3/Hr./Line are available but cannot be

fully utilized due to restrictions like less ship loading rate, multigrade consignment,

pipeline restrictions and pumping capacity of PIT area.

All the safety and security measures are followed strictly helping VOTL to avoid

accidents and loss of working hours (both machine and men) and thus saving the cost

implications. Till 30th

June, 2013 there were 2472 accident free days.

Capacity of loading arm is greater than pumping capacity of PIT area.

In order to increase throughput of the terminal, pumping capacity of PIT area should be

increased by increasing the size of the product tanks.

Delay in operations due to mixing of grades resulted due to human error, interruption in

loading for changing product line, pigging and draining of loading arm in case of

multigrade consignment.

There is loss of time in operations and money in the form of deadfreight due to diesel

plugging of VGO pipeline. This operation requires at least 14 hours which increases berth

occupancy but decreases the efficiency and throughput. The deadfreight paid depend

upon the freight rates which vary with each consignment.

5.6 SUGGESTIONS

In order to increase the efficiency of Terminal, Effective loading rate should be increased

which can be done if ships with high loading intake rate are berthed on Berth B instead of

Berth A and vice versa.

Pumping capacity of Loading arm is greater than the pumping capacity of the PIT area,

so in order to increase the port throughput pumping capacity has to be increased from the

PIT by increasing the sizes of product tanks.


There should be a dedicated cross-country pipeline for Diesel as it is the one product with

maximum production at refinery and transportation through the jetty. In FY 13, 6.62

MMT of diesel was dispatched through jetty.

There is space and connections available on berths for installing new loading arms which

should be utilized to increase overall loading rate.

The loss of time and money can be avoided if the FO/VGO pipeline is insulated which

will save the time of operations and dead freight payment to ships. This time then can be

utilized to serve other ships or other useful work on the berth like maintenance of loading

arms which will increase efficiency and thus throughput of the terminal

As terminal is having 80% berth occupancy and 90% efficiency, so in order to increase

the capacity of the terminal and maintain its efficiency, to cope up with the increasing

capacity of the refinery, either VOTL can install more loading arms as connections are

available or has to develop the new berth for white products as the demand is more than

black products.

5.7 CONCLUSION

This study has provided an insight to the functioning of a dedicated oil terminal and

various operations which are carried out there for safe and efficient functioning of the terminal.

This study also provided an insight on the various elements which are important part of day to

day functions alongwith the operations part.

Through this study it is concluded that parcel size, loading rate, no. of vessels & average

loading time are the four main pillars on which berth throughput stands and in order to bring it

equivalent to actual capacity, those four pillars should be kept in focus. Researcher has

determined the effect of each factor on throughput by using correlation. This will help Vadinar

oil Terminal to focus on those factors and maintain its present terminal efficiency which is 90%

even if capacity of refinery is increased in future. As per the study Essar refinery had capacity of

10 MMTPA in FY 10, 14MMTPA in FY 11, 16MMTPA in FY 12 & 20MMTPA in FY 13, this

shows consistent increase in the capacity of the refinery each year and it has also been proposed


by the refinery to increase up to 34MMTPA in near future. This study will help VOTL in

identifying the barriers it will face in order to increase its berth throughput and will show the

way to achieve optimum capacity in order to cope up with the capacity of the refinery. This study

also bring forward the cost incurred in the form of dead freight payment to ships and time lost in

the diesel plugging operation. VOTL can also focus on these problems to save cost and time and

thus helping it in optimizing operations and costs and thus being more efficient.


BIBLIOGRAPHY

“Essar Ports.” Essarports.com. Web. 27 May 2013.

<http://www.essarports.com/vadinaroilterminal/facelities.>

“Essar Ports.” Essarnet.com. Web. 27 May, 2013.

<http://www.essarnet.com/ports/vadinaroilterminal/statistics.>

“Vadinar Oil Terminal.” Essarports.com. Web. 27 May 2013.

<http://www.essarports.com/vadinaroilterminal>.

“Port capacity.” Definitions.net. STANDS4 LLC, 2013. Web. 2 Jun 2013.

<http://www.definitions.net/definition/port capacity>.

“Throughput.” Definitions.net. STANDS4 LLC, 2013. Web. 2 Jun 2013.

<http://www.definitions.net/definition/throughput>.

“Port capacity.” Unctad.org. Web. 28 May, 2013.

<http:www.unctad.org/publications/portperformanceindicators>.

“Efficiency.” Businessdictionary.com Web. 29 May, 2013.

<http://www.businessdictionary.com/definition/efficiency.html>

Wikipedia.org.

UNCTAD.org

UNCTAD Monographs on Port Management.

UNCTAD Monograph on Operations Planning in Ports.

UNCTAD Monograph on Measuring and Evaluating Port Performance and Productivity.

UNCTAD Manual on a Uniform System of Port Statistics and Performance Indicators.

http://www.essarports.com/

http://www.definitions.net/definition/throughput

http://www.businessdictionary.com/definition/efficiency.html

INTERNSHIP PROJECT REPORT FINAL Saransh

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