Shardha Final Report

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A Project report on

COMPARITVE STUDY OF FINANCIAL

PERFORMANACE OF JAWAHARLAL NEHRU

PORT & VISHAKAPATNAM PORT

UNDER SUPERVISION OF SUBMITTED BY

Mr.RISHIRAMAN SHRADHA SINGH

Sr. Lecturer, SMS PGRM/02/44

School of Management Sciences, Varanasi

2008-09


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DECLARATION

SHRADHA SINGH student of PGDM-RM( 1st sem) at School Of Management Sciences,

Varanasi hereby declare that the Industrial Analysis entitle Comparative study of

financial performance of Jawaharlal Nehru Port & Vishakhapatnam Port is the

result of my own effort and is raised on information collected and guidance given by my

mentor & faculty members.

The industrial analysis is correct to the best of my knowledge & this report so far has not

been published anywhere else.

SHRADHA SINGH

PGDRM/02/44

SMS, VARANASI


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This report has been conducted to get an overview ofComparative study of financial

performance of Jawaharlal Nehru Port and Vishakhapatnam Port.

The basic objectivity of this report is to touch the most of the important

aspects of comparison between JAWAHARLAL NEHRU PORT AND

VISHAKAPATNAM PORT .This report comprises of Comparison in operating income

, operating expenditure, operating ratio, salaries & wages expenses, maintenance

Expenses, dredging expenses and operating surplus.

Finally conclusions have been made.

With my best efforts, I have incorporated all the necessary details which are required for

the report.

I hope that the report will be appreciated by all.

TABLE OF CONTENTS

INTRODUCTION


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OBJECTIVES

METHODOLOGY

FINDINGS

ANALYSIS

CONCLUSION

SUGGESTIONS

LIMITATIONS OF STUDY

BIBLIOGRAPHY


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INTRODUCTION

INTRODUCTION

The role of foreign trade in day to day to life of common man has increased so much that,

now its next to impossible to end a day without consuming a commodity, which is not

produced internationally. This has induced me to work on the topic Analytical Study of

Financial Performance of Shipping Industry allotted by Mentor. The motive of this

inclination was to understand the financial performance of Shipping Industry when

foreign trade is increasing therefore the opportunity and prospect of shipping industry is

growing simultaneously. Shipping, transportation of passengers and goods on waterways.

From prehistoric times shipping has had a major influence on human social development.Water routes, unlike roads, did not need building, and the difficulties and dangers were


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less than those offered by mountains, marshes, and enemy tribes. Therefore many early

civilizations developed on navigable rivers or .on the coasts of warm seas. Ancient

peoples famous for their shipping enterprises include the Phoenicians, the Cretans, the

Egyptians, the Greeks, and the Romans. The shipping routes of those highly civilized

peoples were chiefly in the Mediterranean, but their voyages extended to India, along theAtlantic coast of Africa, and to Britain, where n was secured. The goods shipped

consisted largely of luxuries, including spices, perfumes, and such fine pottery as the

famous Athenian ware; but shipments of grain became important as cities grew in size.

The great modern merchant marines (national fleets of commercial ships) first appeared

in the commercial revolution. Leaders in shipping included the Spanish, the Portuguese,

and the Venetians. The activities of mariners of SW Europe included discovery and

conquest in the New World. In the 13th and 14th cent. The Hanseatic League mercantile

league of medieval German towns built up a great trading and fishing fleet, while the

Italian city-republics developed marine insurance on modern lines. England's shipping

industry was associated with colonization, with the development of manufacturing, and

especially with leadership in the Industrial Revolution. The greatest competitors of the

British were the French and the Dutch. Both were vanquished in war and strangled in

peace by the British Navigation Acts, in English history, name given to certain

parliamentary legislation, more properly called the British Acts of Trade. The acts were

an outgrowth of mercantilism, and followed principles laid down by Tudor and early

Stuart trade regulations

The introduction of slave labour into the American colonies made the slave trade one of

the most profitable branches of shipping for two centuries. America's vast resources in

timber provided an advantage in building wooden ships, and swift sailing vessels of

American design, such as the schooner and the clipper, dominated shipping until the mid-

19th cent. The introduction of steel steamships enabled Great Britain to reassume the

chief place in shipbuilding and shipping.

Shipping in the Twentieth Century

From about 1900 until World War I, Germany held second place in the world in both

navy and merchant marine, and its challenge to Great Britain's domination of the sea was

an important cause of the war. In the period between the two world wars the principal

maritime nations were Great Britain and its dominions, the United States, Japan, Norway,

Germany, Italy, the Netherlands, and France. The United States merchant marine steadily

declined, and in order to stimulate shipbuilding the Merchant Marine Act of 1936 created

the U.S. Maritime Commission. At the beginning of World War II in Europe, U.S.

shipping, handicapped by the Neutrality Act, law passed by the U.S. Congress and signedby President Franklin Delano Roosevelt in Aug.1935.


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After the entry of the United States into the war (Dec., 1941), a huge shipbuilding

program rapidly got under way, and standardized vessels were turned out by assembly-

line methods. A brief period of United States dominance in world shipping followed the

war. Subsequently, however, the U.S. merchant marine again declined steadily; as the

expense of American labour and ship construction increased, the cost of operation went beyond competitive levels, despite the fact that the American shipping industry was

receiving a large subsidy from the federal government.

Since the 1960s, U.S. ports have modernized their facilities by automating operations,

installing computerized tracking systems, and handling containers ("intermodal

shipping") that can be transferred directly to truck trailers or rail cars. Older facilities that

do not have the room to handle containerized shipping have declined. These changes

have greatly reduced the number of jobs in the shipping industry.

Much of the cargo formerly carried in American vessels and in those of other major

nations is now carried by so-called flag of convenience fleets. Such lines arose with the

tendency of large shippers, especially those of Greece and the United States, to avoid the

high taxes of their home countries by registering their ships in low-tax nations such as

Panama and Liberia. In 1998 about 1.08 trillion tons of goods were imported to or

exported from the United States by ship, but vessels flying the U.S. flag handled only 3%

of that shipping.

Shipping Industry in India

The Shipping Corporation of India Ltd., (SCI) was incorporated on 02.10.1961 by

amalgamation of Eastern Shipping Corporation and Western Shipping Corporation, with

an authorised capital of Rs.35.00 Crore and paid-up capital of Rs.23.45 Crore. On the dayof amalgamation, the SCI s fleet stood at 19 vessels of 1.39 Lakh GT and 1.92 Lakh


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DWT. Subsequently two more Shipping Companies viz. Jayanti Shipping Company and

Mogul Line Ltd. were merged with the SCI in 1973 and 1986 respectively.

Fortify and grow is a character with which SCI is very conversant. This defined its earlier

growth path and catapulted SCI into a specialist category; the 1960 s recognized SCI as acomplete liner services company. In fact, as much as 90% of its entire tonnage was a

consequence of liner ships regularly plying coastlines. This proved to be a source of

power and a point of contemplation; the goals and achievements only marked a progress

route and were actually, just a brighter future in waiting.

Diversification was the future eluding SCI, at that time. Quick expansions to its fleet

were subsequently undertaken, in sync with its progress plans. The fleet structure thus

adopted distinguished it as the most diversified fleet-owner in India. Chance caused it to

make it to the top-most league in the international arena. Even by international standards,SCI employed a remarkably diversified ship line-up; liner, bulk carriers and tankers,

technical and offshore services that transport everything, from iron-ore to fertilisers,

crude oil to petroleum products and critical materials used in offshore installations, and

even tow rigs. Representing India to the extent of 40% of its entire tonnage! Other critical

points too, like a presence in almost every major sea route in the world, have been

instrumental in classifying it as a global player, slotting it in the world s top 15 league.

India has a long coastline spanning 7600 kilometres forming one of the biggest

peninsulas in the world. It is serviced by 12 major ports and 185 notified minor and

intermediate ports Major ports handled over 80% of all cargo traffic in 2007. However,

the words "major", "intermediate" and "minor do not have a strict association with the

traffic volumes served by these ports. As an example, Mundra Port, a newly developed

minor port in the state ofGujaratregistered a cargo traffic of around 28.8 million tonnes

per annum during the financial yearof 2008, which is higher than that of many major

ports.

The classification of Indian ports into major, minor and intermediate has an

administrative significance. Indian government has a federal structure, and according to

itsconstitution,maritime transport falls under the "concurrent list", to be administered by

both the Central and the State governments. While the Central Shipping Ministry

administer the major ports, the minor and intermediate ports are administered by the

relevant departments or ministries in the nine coastal states of West Bengal, Orissa,

Andhra Pradesh, Tamil Nadu,Kerala, Karnataka,Goa, Maharashtra and Gujarat. Several

of these 185 minor and intermediate ports are merely "notified", with little or no cargo

handling actually taking place. These ports have been identified by the respective

governments to be developed, in a phased manner, a good proportion of them involvingPublic-private partnership.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Coastlinehttp://en.wikipedia.org/wiki/Peninsulahttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Mundra_Porthttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Federal_governmenthttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Ministry_of_Shipping,_Road_Transport_and_Highways_(India)http://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Public-private_partnershiphttp://en.wikipedia.org/wiki/Coastlinehttp://en.wikipedia.org/wiki/Peninsulahttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Mundra_Porthttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Federal_governmenthttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Ministry_of_Shipping,_Road_Transport_and_Highways_(India)http://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Public-private_partnershiphttp://en.wikipedia.org/wiki/India


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There are also 7 shipyards under the control of the central government of India, 2

shipyards controlled by state governments, and 19 privately owned shipyards. The major

ports handled 423.4 million tons of cargo for the financial year 2005-2006, with

Vishakhapatnam, Cochin ,Kolkata Port, Chennai Port and Kandla carrying the greatest

tonnage. Major ports can collectively handle 400+ million tons of cargo annually, andport operations have improved since the mid-1990s. All major ports, except one (Ennore

Port), are government administered, but private-sector participation in ports has

increased.

Despite positive steps taken by the government and large size of its commercial fleet,

India is a small player in the international shipping market and its export possibilities in

this sector are, at present, quite limited. This is because India does not have adequate

numbers of large modern tankers and high-speed containership. As a consequence, Indian

fleet has been slow to enter the emerging shipping sector, particularly the high value,

high volume container trade. This is evident from the fact that in July 2000, India had

only 10 cellular container vessels which accounted for around 0.14 grt (0.18 million dwt)

of Indian tonnage.26

Liberalisation and reforms of the 1990s have made the environment of shipping more

competitive both in terms of cargo and resource mobilisation markets. In this

environment, only those industries that have developed a comparative advantage can

thrive. Indian shipping lags far behind its international competitors with respect to

resource mobilisation, technological modernisation and expansion. As a consequence,

although the volume of Indias overseas trade has more than doubled in the 1990s, the

share of Indian ships in the trade has declined. In the post-independence period the share

of Indian ships in the overseas trade increased steadily to over 40 per cent in 198788 but

thereafter declined to around 30.8 per cent in 199899 and their share in liner cargo is

only around 14 per cent. Currently, the Indian economy is paying around Rs 15,000

18,000 crores per annum to foreign flagships which carries as much as 69 per cent of our

overseas trade.27 the amount of outgo will increase progressively with the growth of

Indian trade if the share of Indian shipping does not improve.

Indian shipping industry has pointed out that despite its vital role in the growth and

development of the countrys economy and trade, shipping is not recognised as an

infrastructure industry and, therefore, does not enjoy the developmental benefits that are

available to other infrastructure sectors. Nor is shipping recognised as an export industry

in spite of its substantial foreign exchange earnings.30 at present, Indian shipping is

being taxed at the highest level in the world. In the 1990s the government withdrew theexemptions that were available under Section 33AC and 80I of the Income Tax Act and
http://en.wikipedia.org/wiki/Shipyardshttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Cochinhttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Chennai_Porthttp://en.wikipedia.org/wiki/Chennai_Porthttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Ennore_Porthttp://en.wikipedia.org/wiki/Ennore_Porthttp://en.wikipedia.org/wiki/Shipyardshttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Cochinhttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Chennai_Porthttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Ennore_Porthttp://en.wikipedia.org/wiki/Ennore_Port


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introduced a Minimum Alternative Tax. This has resulted in an effective tax rate of 22

per cent31 which may seem low compared to other domestic industries and services, but

is higher than what is paid by any of Indias international competitors.

Thus, the major challenges before the Indian shipping industry today are the steepcompetition from large and sophisticated international shipping lines, constraints on

fiscal and financial front and the declining share of national shipping in the carriage of

the country's overseas trade.

Although India has the largest merchant shipping fleet among the developing countries

and ranks seventeenth in the world in terms of gross registered tonnage (grt) and fifteenth

in terms of deadweight tonnes (dwt), the country has not been successful in exporting its

maritime services or emerging as a forerunner in the arena of international trade. Given

the locational advantage, strong maritime tradition and rich hinterland, India has thepotential for expanding trade in this sector. It is therefore important to identify the

country's opportunities and constraints to trade in maritime transport services for the

current round of GATS 2000 negotiations

Role of Shipping Industry in Foreign Trade

India plays an important role in the world economy. It noticed with admiration the

economic development in India within the last decade. India has experienced an almost

twenty percent (20%) growth in foreign trade. That is the second largest development in

economic growth worldwide.

Trade is essential for the economy. And transportation is a significant facilitator of trade.

It is well known, that maritime transport carry around eighty percent (80 %) of world

trade. Maritime transport is a strong precondition for growth in trade!


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The shipping industry has shown an impressive ability to adopt rapidly to the new global

structures and innovations.

It noted with satisfaction the large extent of openness of the Indian market to

international maritime transport.

Several shipping companies are servicing the Indian market in international trades.

India is a vast country with a long coastline and many ports. Twelve of these are major

ports.

Traffic in Indian ports has risen over the last ten years. It is told, that this is due to a

liberalisation process started by the Indian Government. Indian ports were opened for

participation or investment by the private sector - in the area of cargo handling capacity.

It is told, that the construction of the terminal has started and is running according to

plan. The facility should be in operation in the first quarter of 2004.

The Indian shipping industry is governed by the Merchant Shipping Act (MSA), 1958,

and the Director General of Shipping is the regulatory authority for all activities of

shipping, such as shipping administration, maritime safety, maritime training,

examination and certification, shipping development, etc. The Director also ensures

implementation of various international conventions relating to safety requirements, prevention of oil pollution and other mandatory requirements of the International

Maritime Organisation (IMO).

Recognising the role of the shipping industry in the context of overall growth strategy, in

general, and the promotion of trade and foreign exchange earnings, in particular, the

Indian government has made several amendments to the MSA to encourage the

modernisation and diversification of this industry. Since the 1990s, the government has

simplified the regulatory procedures for raising resources from commercial markets and

external borrowing in order to facilitate the acquisition of new and second hand vessels atcompetitive prices. The shipping companies are now allowed to retain sales proceeds of

their ships abroad and utilise them for fresh acquisition. Government approval is no

longer required for raising foreign exchange loans from abroad by mortgaging the vessels

with the lender. The government has also granted automatic approval for foreign direct

investment up to a limit of 74 per cent and non-resident Indians (NRIs) are permitted to

invest up to 100 per cent with full repatriation benefits.

Apart from cabotage, the government also provides cargo support for Indian lines by

implementing the policy of buying (importing) on FOB basis and selling (exporting) onCIF basis. The government owned/controlled cargo is channelled by the chartering wing


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of the Ministry of Surface Transport, Tran chart. As per this policy, the first right of

refusal for carriage of such cargoes is given to Indian vessels. However, in case of non-

availability of suitable Indian vessels, foreign flag vessels can be used for transportation

of these cargoes.

Government Policies for Shipping Industry

Maritime transport services have played a crucial role in the development of Indias

economy since over 90 per cent of the countrys trade volume (77 per cent in terms of

value) is moved by sea. The Indian peninsula is strategically located between the Atlantic

Ocean in the west and Pacific Ocean in the east, with a 6,000 km long coastline, and 12

major20 and 139 operable minor and intermediate ports. At present, India has the largest

merchant shipping fleet among the developing countries and ranks seventeenth in the

world in shipping tonnage. There is also an urgent need to beef up the fiscal plicis to

ensure that the shipping industry gets the right support to sustain its growth. The only

fiscal benefit enjoyed currently by the shipping industry pertains to Section 33AC of the

income tax Act, 1961, which enables shipping companies to claim tax deduction up to

50% of the funds generated from internal accruals and deployed in equisition or repairs of

ships.

The salient features of Indias shipping policy are the promotion of national shipping to

increase self-reliance in the carriage of countrys overseas trade and protection of the

interest of exporters and importers.21 Indias national flagships provide an essential

means of transport for the import of crude oil, petroleum products, coal and fertilisers,

export of iron ore and exports and imports of various general (liner) cargoes. National

shipping also provides for a second line of defence in times of emergency merchant

ships help in transporting supplies, men and material for the navy. Indian shipping makes

significant contributions to the foreign exchange earnings of the country. The foreign

exchange earnings/savings of Indian shipping companies increased by over 50 per cent in

the 1990s.

The eve of independence, India had only 60 vessels and the Indian shipping tonnage was

1.92 lakhs grt. In July 2000, Indian fleet comprised of 517 vessels and the shipping

tonnage is 7.02 million grt. The Ninth five-year plan has proposed a growth target of 2

million grt over the Eighth five-year plan taking the total shipping tonnage to 9 million

grt.

The Indian shipping industry is governed by the Merchant Shipping Act (MSA), 1958,

and the Director General of Shipping is the regulatory authority for all activities of

shipping, such as shipping administration, maritime safety, maritime training,examination and certification, shipping development, etc. The Director also ensures


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implementation of various international conventions relating to safety requirements,

prevention of oil pollution and other mandatory requirements of the International

Maritime Organisation (IMO).24

In the past, Indian ships had to be repaired at Indian yards, which were not competitiveeither in terms of costs or time. This restriction has been removed and shipping

companies can now get their ships repaired in any shipyard without seeking prior

approval of the government. The Reserve Bank of India authorises foreign exchange for

imported capital goods for ship repair/dry docking and spares without any value limits.

Previously, shipping companies required a license from the Director General of shipping

to operate a liner service. The government has now delicensed many liner routes.

Moreover, foreign ships calling at Indian ports do not require a license for overseas trade.

For coastal trade, licenses are given to foreign flag vessels on a case-by-case basis as perthe cabotage regulations. The government has also set up the National Shipping Policy

Committee (NSPC) under the Chairmanship of Director General of Shipping to provide

fiscal, financial, administrative and legislative measures for growth and development of

shipping in India.

At present, Indian shipping is being taxed at the highest level in the world. In the 1990s

the government withdrew the exemptions that were available under Section 33AC and

80I of the Income Tax Act and introduced a Minimum Alternative Tax. This has resulted

in an effective tax rate of 22 per cent31 which may seem low compared to other domestic

industries and services, but is higher than what is paid by any of Indias international

competitors.32

Thus, the major challenges before the Indian shipping industry today are the steep

competition from large and sophisticated international shipping lines, constraints on

fiscal and financial front and the declining share of national shipping in the carriage of

the country's overseas trade.

The major ports are under the purview of the Ministry of Shipping (previously they were

under the Ministry of Surface Transport MOST) and are governed by the Major Port

Trusts Act, 1963 which enables them to conduct regulatory and commercial functions.

The intermediate and minor ports are administratively under the state governments and

are governed by the Indian Ports Act 1908, which delineates the regulatory power of the

Port Authority. Other acts applicable to the port sector includes The Dock Workers

(Regulation and Employment) Act 1948 and Dock Workers (Safety, Health and Welfare)

Act of 1986 which regulates the conditions of employment, service and other matters

relating to dock workers.


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To increase the productivity and efficiency of the ports, the government has announced

the following measures:

The powers of the Port Trust Boards to sanction projects have been increased to Rs 50

crores in case of additional/new investments and to Rs 100 crores in case ofreplacement/renewal of assets.

The Major Port Trust Act, 1963 was amended by Port Laws (Amendment) Act, 1997 to

provide an independent Tariff Authority for Major Ports (TAMP) for fixing and revising

the port tariff.

To provide greater freedom and flexibility to the major ports, the government in the

Union Budget 20002001 has recommended corporatisation of major ports.

In May 2000 the Major Port Trusts Act 1963 has been amended to enable the major ports

to enter into joint ventures with minor ports. The joint venture between major and minor

ports can enhance the traffic handling capacity by diverting the traffic to the minor ports

since the major ports have already reached a saturation level.

The major ports are allowed to enter into joint ventures with foreign ports and foreign

companies. Foreign direct investment in port projects is now allowed up to 100 per cent

equity.

An Empowered Committee on Environment Clearances (ECEC) has been constituted in

the MOST to provide simplified and transparent guidelines for environment clearance for

the expansion of existing port limits.

Ports in Indian Shipping Industry

India has a long coastline spanning 7600 kilometres forming one of the biggest

peninsulas in the world. It is serviced by 12 major ports and 185 notified minor and

intermediate ports [citation needed].

Major ports handled over 80% of all cargo traffic in 2007. However, the words "major",

"intermediate" and "minor do not have a strict association with the traffic volumes

served by these ports. As an example,Mundra Port, a newly developed minor port in the

state ofGujarat registered a cargo traffic of around 28.8 million tonnes per annum duringthe financial yearof2008, which is higher than that of many major ports.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Coastlinehttp://en.wikipedia.org/wiki/Peninsulahttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Mundra_Porthttp://en.wikipedia.org/wiki/Mundra_Porthttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Coastlinehttp://en.wikipedia.org/wiki/Peninsulahttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Mundra_Porthttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/2008


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The classification of Indian ports into major, minor and intermediate has an

administrative significance. Indian government has a federal structure, and according to

itsconstitution,maritime transport falls under the "concurrent list", to be administered by

both the Central and the State governments. While the Central Shipping Ministry

administer the major ports, the minor and intermediate ports are administered by therelevant departments or ministries in the nine coastal states of West Bengal, Orissa,

Andhra Pradesh, Tamil Nadu,Kerala, Karnataka,Goa, Maharashtra and Gujarat. Several

of these 185 minor and intermediate ports are merely "notified", with little or no cargo

handling actually taking place. These ports have been identified by the respective

governments to be developed, in a phased manner, a good proportion of them involving

partnership there are also 7 shipyards under the control of the central government of

India, 2 shipyards controlled by state governments, and 19 privately owned shipyards.

The major ports handled 423.4 million tons of cargo for the financial year 2005-2006,

with Vishakhapatnam, Cochin ,Kolkata Port, Chennai Port and Kandla carrying the

greatest tonnage. Major ports can collectively handle 400+ million tons of cargo

annually, and port operations have improved since the mid-1990s. All major ports, except

one (Ennore Port), are government administered, but private-sector participation in ports

has increased.

LOCATION OF PORTS IN INDIA
http://en.wikipedia.org/wiki/Federal_governmenthttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Ministry_of_Shipping,_Road_Transport_and_Highways_(India)http://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Shipyardshttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Cochinhttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Chennai_Porthttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Ennore_Porthttp://en.wikipedia.org/wiki/Federal_governmenthttp://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Maritime_transporthttp://en.wikipedia.org/wiki/Ministry_of_Shipping,_Road_Transport_and_Highways_(India)http://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Shipyardshttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Central_government_of_Indiahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Cargohttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Cochinhttp://en.wikipedia.org/wiki/Kolkata_Port_Trusthttp://en.wikipedia.org/wiki/Chennai_Porthttp://en.wikipedia.org/wiki/Kandlahttp://en.wikipedia.org/wiki/Tonshttp://en.wikipedia.org/wiki/Ennore_Port


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Introduction of Jawaharlal Nehru Port


18/66

Pandit Jawaharlal Nehru laid the foundation stone of the Port on January 3, 1962.

Construction work commenced in November 19, 1962 and dredging operations from

March 15, 1964. During this period the Port was in the control of the government of

Orissa. The management was formally handed over to the Government of India on June

1, 1965. The Port was declared eight major ports on April 18, 1966 making it the firstMajor Port in the East Coast commissioned in Independent India.

The Port was opened to traffic in 1966. The main cargo handled was Iron Ore. Paradip

Port has come a long way since then and its cargo profile has greatly increased. The Port

started handling containers and transhipment of petroleum products in 1991.The Port is

connected with Board Gauge Railway System of the South Eastern Railway. The Port is

served by National highway No. 5-A.

Pandit Jawaharlal Nehru laid the foundation stone of the Port on January 3, 1962.Construction work commenced in November 19, 1962 and dredging operations from

March 15, 1964. During this period the Port was in the control of the government of

Orissa. The management was formally handed over to the Government of India on June

1, 1965. The Port was declared eight major ports on April 18, 1966 making it the first

Major Port in the East Coast commissioned in Independent India.

The Port was opened to traffic in 1966. The main cargo handled was Iron Ore. Paradip

Port has come a long way since then and its cargo profile has greatly increased. The Port

started handling containers and transhipment of petroleum products in 1991.The Port is

connected with Board Gauge Railway System of the South Eastern Railway. The Port is

served by National highway No. 5-A.

Introduction of Visakhapatnam Port


19/66

The need for a port in this part of the country was emphasised as early as in 1858 in a

report of a British Survey Party. This was underlined in the report titled Vizag, the Port

of Central Provinces (1877). Mr. E.S. Thomas, while submitting the proposals for

creation of the port in 1872 described it as the most natural and most easily formed port

on the east coast of India. The daughter of Sir Arthur Cotton described the Harbour as anatural outlet for northern India by a direct railway to Allahabad and observed the

location as a strategic point on the eastern coast where incomparably the `best harbour

can be made by a single break-water run out from the bold promontory of the Dolphins

Nose.

It was only in 1914 that the proposal for construction of a harbour at Visakhapatnam was

initiated by the then Bengal Nagpur Railway and in 1922 a proposal of Col. H.

Cartwright Reid of British Admiralty for the construction of a harbour at the mouth of

river Meghadrigedda was adopted.

The construction work which started in 1927 continued up to 1933 and the first

commercial vessel S.S. JALADURGA of M/s. Scindia Steam Navigation Co. entered the

Port on the 7th October, 1933 providing initially a sea outlet for Manganese Ore.

The Saga of the construction of the harbour particularly forming of entrance channel,

sinking of two old ships `JANUS and `WELLESDONE to form break-water instead of

building a wall in the sea were all feats in engineering and are subjects of discussion even

today. Mr. Ash and Mr. D.B. Ratternberry were the Engineers who played prominent

role in constructing this beautiful harbour. The port was formally inaugurated by His

Excellency Lord Willingdon, the then Viceroy and Governor General of India on 19 th

Dec. 1933.

Nestling among a chain of hills, the Vizag harbour is really one of the wonders of the

nature, as if it has been intended by God that a man in this area must benefit by a very

safe anchorage to ships. The entrance channel is protected by, two massive rock hills,

namely Dolphins Nose on the Southern side and Ross Hill on the Northern side and

these two hills shelter a bay which possessed sufficient depth for the ships which were

engaged in sea trade up to 1950s. The high promontory of the Dolphins Nose hill into

the sea provides protection from cyclones which strike the East Coast. The low tidal

range of a maximum of 1.82 mtrs is also advantageous for the location of the Port. The

existence of this natural harbour has transformed the sleepy fisherman village once called

as `Vizag into one of the fastest growing industrial cities of the world.

The Port has striking similarities with Durban Port of Africa in the sense that the later is

also surrounded by a hill on the South Side. It is due to this reason that Engineer Mr.

W.C. Ash studied Durban Port before developing this Port. Mr. Chalapathi Rao, one of


20/66

the famour writers described the Docks and Harbour works of this Port as `PICASSOs

cubist pictures.

STATICAL DATA OF PORTS

RESEARCH OBJECTIVE:-

To compare the financial performance of Jawaharlal Nehru Port with

Vishakhapatnam Port.

Name

Cargo Handled

(06-07) '000

tonnes

Vessel

Traffic (05-

06)

Container Traffic

(05-06) '000

TEUs

Visakhapatnam 56,386 2,109 47

J.N.P.T. 44,818 2,395 2,267
http://en.wikipedia.org/wiki/Visakhapatnamhttp://en.wikipedia.org/wiki/Jawaharlal_Nehru_Porthttp://en.wikipedia.org/wiki/Ports_in_Indihttp://en.wikipedia.org/wiki/Ports_in_Indihttp://en.wikipedia.org/wiki/Ports_in_Indihttp://en.wikipedia.org/wiki/Ports_in_Indihttp://en.wikipedia.org/wiki/Visakhapatnamhttp://en.wikipedia.org/wiki/Jawaharlal_Nehru_Port


21/66

To compare the operating income of Jawaharlal Nehru Port with Vishakhapatnam

Port.

To compare the operating expenditure of Jawaharlal Nehru Port with

Vishakhapatnam Port.

To compare the operating ratio of Jawaharlal Nehru Port with Vishakhapatnam

Port.

To compare the total income of Jawaharlal Nehru port with Vishakhapatnam Port.

METHODOLOGY

The present research work is analytical study to have the knowledge of concern

industry, with the help of secondary source; therefore following methodology will

be applied to complete the project.


22/66

Type of Research: - Descriptive and Analytical

Data Collection Method: - Secondary Source

Source of Secondary Data: - CMIE Data Base i.e. Prowess and Industry

Analysis Service

Statistical Tools: - Bar Graph, Pie Chart apart from these during the studies other

tools like mean, regression etc. could be applied if required.


23/66

FINDINGS

FINDINGS

Table 1


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GRAPH 1

OPERATING INCOME OF JAWAHARLAL NEHRU PORT & VISAKHAPATNAM PORT

Port(value in crore rupees) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Visakhapatnam port 427.56 454.29 501.87 528.46 533.75

Jawaharlal Nehru port 459.81 579.61 630.09 670.32 802.79


25/66

OPERATING INCOME OF PORT'S

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007

YEAR

Rs(In

cror

es)

Visakhapatnam port

Jawaharlal Nehru port

INTERPRETATION:-

From the above graph it is clear that Operating Income of Visakhapatnam Port is

Increasing continuously from Mar 03 to Mar 07. The Operating Income of Jawaharlal

Nehru Port is also increasing successively from Mar 03 to Mar 07 and its value is very

high in comparison to Visakhapatnam Port.


26/66

Table 2

OPERATING EXPENDITURE OF JAWAHARLAL NEHRU PORT & VISAKHAPATNAM

PORT

Port(Value in crores) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07



GRAPH 2


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OPERATING EXPENDITURE OF PORT'S

0

50

100

150

200

250

300

350

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

YEAR

Rs(In

cror

es)

Visakhapatnam port


INTERPRETATION:-

From the above Graph it is clear that the Operating Expenditure of Jawaharlal Nehru

Port is more in comparison to Visakhapatnam Port .From Mar 03 the operating

Expenditure of Jawaharlal Nehru Port is increasing continuously but between Mar 06 to

Mar 07 the growth is more. Visakhapatnam Port expenditure is more as compared to

Jawaharlal Nehru Port in Mar 03 but in Mar 04 Jawaharlal Nehru Ports expenditure is

More. In Mar 05 its expenditure decreases but increases in Mar 06 to Mar 07

Successively.


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Table 3

SALRIES & WAGES OF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT

Port(Value in crores) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Visakhapatnam port 88.35 91.33 80.54 86 96.76



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GRAPH 3

SALARIES & WAGES OF PORT'S

0

50

100

150

200

250

300

350


YEAR

Rs(In

crores)

Visakhapatnam port


INTERPRETATION:-

From the above graph it is clear that the salaries and wages expense of Visakhapatnam

Port is more and very large in comparison to Jawaharlal Nehru Port. In Mar 03 the


30/66

Salaries and wages expense of Jawaharlal Nehru Port is Rs.33.74 Crore and then it

Increases successively

Table 4

DEPRECIATION EXPENSES OF JAWAHARLAL NEHRU PORT & VISAKHAPATNAM

PORT


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Port(value in crores) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Visakhapatnam port 25.72 26.86 28.38 31.25 31


GRAPH 4

DEPRECIATION EXPENSES OF PORT'S

0

5

10

1520

25

30

35

40


YEAR

Rs(In

crores)

Visakhapatnam port


INTERPRETATION:-

From the above graph it is clear that the depreciation expense of Jawaharlal Nehru port is

Rs. 36.77 Crore in Mar 04 and then it decreases upto Mar 07 the depreciation expense of


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Visakhapatnam Port is Rs. 25.72 Crore in Mar 03 and then it increases upto Mar 07 .The

Depreciation expenses of Visakhapatnam Port are more than that of Jawaharlal Nehru

Port.

Table 5

OPERATING & MAINTENANCE EXPENSES OF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT


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Port(valu in crores) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07



GRAPH 5

OPERATING & MAINTENANCE EXPENSES OF

PORT'S

0

20

40

60

80

100

120140

160

180


YEAR

Rs(Incrores)

Visakhapatnam port


INTERPRETATION:-


34/66

From the above graph it is clear that the operation and Maintenance of Jawaharlal Nehru

Port more than the Visakhapatnam port and the difference is very large. The operation

And maintenance expense of Jawaharlal Nehru Port is Rs. 119.9 crore in Mar 03 and it

Increase successively up to Mar07 and its value is Rs. 166.44 Crore.The operation and

Maintenance expense of Visakhapatnam Port is Rs. 36.19 Crore in Mar 03 and then it

Increases up to Mar 06 and it suddenly decreases In Mar 07 its value is Rs. 45.91 Crore.

Table 6


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SECURITY & MEDICAL EXPENSES OF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT




GRAPH 6

SECURITY & MEDICAL EXPENSES OF PORT'S

0

5

10

15

20

25


YEAR

Rs(In

crores)

Visakhapatnam port


INTERPRETATION:-


36/66


37/66

GRAPH 7

DREDGING EXPENSES OF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT





38/66

DREDGING EXPENSES OF PORT'S

0

5

10

15

2025

30

35

40


YEAR

Rs(In

cror

es)

Visakhapatnam port


INTERPRETATION:-

From the above graph it that the expenditure on dredging in Mar 03 is Rs.7.11crore and

Then it goes on increasing up to Mar06 and its value is Rs. 12.85 Crore and then it

Decreases in Mar 07 .The expenditure on dredging of Visakhapatnam port is Rs. 33.58

Crore in Mar 03 and then it decreases up to Mar 06 and then it increases in Mar 07. The

Expenditure on dredging in Mar 07 of Visakhapatnam Port is high in mar 07 and it is

Large as compared to Jawaharlal Nehru Port


39/66

Table 8

OPEARTING SURPLUS OF JAWAHARLAL NEHRU PORT &VISAKHAPATNAM PORT





40/66

GRAPH 8

OPERATING SURPLUS OF PORT'S

0

100

200

300

400

500

600


YEAR

Rs(In

crores)

Visakhapatnam port


INTERPRETATION:-


41/66

From the above graph it is clear that the operating surplus of Jawaharlal Nehru Port

Increasing successively from Mar 03 to Mar 07 but there is remarkable increase from

Mar 06 to mar 07.In comparison to Jawaharlal Nehru Port the Operating Surplus Of

Visakhapatnam Port is increasing successively from Mar 03 to Mar s07. Overall the

Operating Surplus Jawaharlal Nehru Port is more.

Table 9


42/66

GRAPH 9

OPEARTING RATIO OF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT

Port (value in %)

Mar-

03

Mar-

04

Mar-

05

Mar-

06

Mar-

07

Visakhapatnam port 51.75 49.45 44.54 46 46.24



43/66

OPERATING RATIO OF PORT'S

0

10

20

30

40

50

60


YEAR

PERCENTA

GE

Visakhapatnam port


INTERPRETATION:-

From the above Graph it is clear that the operating ratio of Jawaharlal Nehru Port in Mar-

03 is less than that of Visakhapatnam Port. The operating ratio of Jawaharlal Nehru then

Decreases in Mar 04 and suddenly increases in Mar -05 and then decreases from Mar -06

To Mar- 07. In comparison to Jawaharlal Nehru Port the Operating Ratio of

Visakhapatnam Port decreases From Mar- 03 to Mar- 07 .Overall the Operating Ratio of

Visakhapatnam Port is more than that of Jawaharlal Nehru Port.


44/66

Table 10

GRAPH 10

FINANCIAL & MISCELLANEOUS INCOMEOF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT

Port(value in crores)) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07




45/66

FINANCIAL & MISCELLANEOUS INCOME OF

PORT'S

0

20

40

60

80

100

120


YEAR

Rs(in

crores

)

Visakhapatnam port


INTERPRETATION:-

From above graph it is clear that the financial and miscellaneous income of Jawaharlal

Nehru port increases successively from march- 03 to march-07 in comparison Jawaharlal

Nehru port the financial and miscellaneous income of Visakhapatnam port decreases in

March- 04and then slightly increases from march-05 to march-07 .overall financial and

Miscellaneous income of Jawaharlal Nehru port is very large as compare to

Visakhapatnam

Port.


46/66

Table 11

FINANCIAL & MISCELLANEOUS EXPENDITURE OF JAWAHARLAL

NEHRU PORT

& VISAKHAPATNAM

PORT

PORT(value in crores) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07




47/66

GRAPH 11

FINANCIAL & MISCELLANEOUS EXPENDITURE OF PORT'S

0

50

100

150

200

250

300


YEAR

Rs(In

crores)

Visakhapatnam port


INTERPRETATION:-

From the above graph it is clear that the financial and miscellaneous expenditure of


48/66

Jawaharlal Nehru Port is more than that of Visakhapatnam Port .In Mar 03 the financial

And miscellaneous expenditure Jawaharlal Nehru Port decreases from Mar 03 to Mar 07.

In comparison to this the financial and miscellaneous expenditure Jawaharlal Nehru Port

Also decreases from Mar 03 to Mar 04 then it slightly increases in Mar 05 then it

Decreases in Mar 06 and then increases in Mar 07

Table 12


49/66

GRAPH 12

TOTAL INCOMEOF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT

Port(value in crores))

Mar-

03

Mar-

04

Mar-

05

Mar-

06

Mar-

07




50/66

TOTAL INCOME OF PORT'S

0

100

200

300

400

500600

700

800

900

1000


YEAR

Rs(in

cror

es)

Visakhapatnam port


INTERPRETATION:-

From the above graph it is clear that the total income of Jawaharlal Nehru Port increases

Successively from Mar 03 to Mar 07 .In comparison to Jawaharlal Nehru l Nehru port

The total income of Visakhapatnam Port also increases from Mar 03 to Mar 07 .Overall

The total income of Jawaharlal Nehru Port is more than the Visakhapatnam Port.


51/66

Table 13

TOTAL EXPENDITUREOF JAWAHARLAL NEHRU PORT &

VISAKHAPATNAM PORT



Jawaharlal Nehru port 425.29 445.17 467 342.37 450.52

GRAPH 13

TOTAL EXPENDITURE OF PORT'S

0

100

200

300

400

500

600


YEAR

Rs(in

cro

res)

Visakhapatnam port



52/66

INTERPRETATION:-

From the above graph it is clear that the total expenditure of Jawaharlal Nehru port in

Mar03 is Rs. 425.29 Croce it increases successively uptoMar05 and then it decreases in

Mar 06 and then increases in Mar07.VIshskhapatnam total expenditure is increasing

From Mar 03 to Mar 05. There is remarkable increase from Mar 04 to Mar 05 Then it

Decreases in Mar 06 and then increases slightly in Mar 07.


53/66

Table 14

GRAPH 14

NET SURPLUS OF JAWAHARLAL NEHRU PORT & VISAKHAPATNAM

PORT





54/66

NET SURPLUS OF PORT'S

0

50

100

150

200

250300

350

400

450

500


YEAR

Rs(in

cror

es)

Visakhapatnam port


INTERPRETATION:-

Form the above graph it is clear that Net Surplus of Jawaharlal Nehru Port is increasing

From Mar 03 to Mar 07 .The net surplus of Visakhapatnam Port is very less as compared

To Jawaharlal Nehru Port the Net Surplus of Visakhapatnam Port increases from Mar

03 to Mar 04 it decreases in Mar 05 and then increases in Mar 07 .Overall the Net

Surplus of Jawaharlal Nehru Port is more.


55/66

ANALYSIS


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ANALYSIS

1. Total Income Performance :-

The total income of Jawaharlal Nehru Port increases successively from Mar 03 to Mar

07 .In comparison to Jawaharlal Nehru l Nehru port the total income of Visakhapatnam

Port also increases from Mar 03 to Mar 07 .Overall the total income of Jawaharlal Nehru

Port is more than the Visakhapatnam Port.

2. Total Expenditure Performance :-

3. Financial & Miscellaneous Income Performance :-

The financial and miscellaneous income of Jawaharlal Nehru port increases successively


57/66

From march- 03 to march-07 in comparison Jawaharlal Nehru port the financial and

Miscellaneous income of Visakhapatnam port decreases in March- 04and then slightly

Increases from march-05 to march-07 .overall financial and miscellaneous income of

Jawaharlal Nehru port is very large as compare to Visakhapatnam port.

4. Financial & Miscellaneous Expenditure Performance :-

The financial and miscellaneous expenditure of Jawaharlal Nehru Port is more than that

Of Visakhapatnam Port .In Mar 03 the financial and miscellaneous expenditure

Jawaharlal Nehru Port decreases from Mar 03 to Mar 07. In comparison to this the

Financial and miscellaneous expenditure Jawaharlal Nehru Port also decreases from Mar

03 to Mar 04 then it slightly increases in Mar 05 then it decreases in Mar 06 and then

Increases in Mar 07

5. Operating Ratio Performance :-

From the above Graph it is clear that the operating ratio of Jawaharlal Nehru Port in Mar-

03 is less than that of Visakhapatnam Port. The operating ratio of Jawaharlal Nehru then

Decreases in Mar 04 and suddenly increases in Mar -05 and then decreases from Mar -06

To Mar- 07. In comparison to Jawaharlal Nehru Port the Operating Ratio of

Visakhapatnam Port decreases From Mar- 03 to Mar- 07 .Overall the Operating Ratio of

Visakhapatnam Port is more than that of Jawaharlal Nehru Port.


58/66

6. Dredging Expenditure Performance:-

The expenditure on dredging in Mar 03 is Rs.7.11 crore and then it goes on increasing

Up to Mar06 and its value is Rs. 12.85 Crore and then it decreases in Mar 07 .The

Expenditure on dredging of Visakhapatnam port is Rs. 33.58 Crore in Mar 03 and then it

Decreases up to Mar 06 and then it increases in Mar 07. The expenditure on dredging in

Mar 07 of Visakhapatnam Port is high in mar 07 and it is large as compared to

Jawaharlal Nehru Port.

7. Performance In Operation & Maintenance:-

The operation and Maintenance of Jawaharlal Nehru port more than the Visakhapatnam

Port and the difference are very large. The operation and maintenance expense of

Jawaharlal Nehru Port is Rs. 119.9 crore in Mar 03 and it increase successively up to

Mar07 and its value is Rs. 166.44 Crore. The operation and maintenance expense of

Visakhapatnam Port is Rs. 36.19 Crore in Mar 03 and then it increases up to Mar 06

And it suddenly decreases In Mar 07 its value is Rs. 45.91 Crore.


59/66

CONCLUSION


60/66

CONCLUSION

After analysing the whole data we can conclude that JAWAHARLAL NEHRU PORT is

performing better than VISAKHAPATNAM PORT in respect of total income, total

operating surplus, & even in the respect of operations & maintenance.

Now when we talk about the operating ratio performance, we can conclude that

VISAKHAPATNAM PORT has performed better than JNPT.

Now when we talk about the Dredging Expenses performance, we can conclude that

VISAKHAPATNAM PORT expenses more than JNPT.


61/66

SUGGESTION


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SUGGESTION & RECOMMENDATION

In respect of the suggestion should be given regarding the both of the ports there is no

such point to be pointed out because both the ports are performing better according to

there strength. But the only point is that of the operating ratio, in this case JNPT has to

improve little bit more as comparing it with the VISAKHAPATNAM PORT. Because in

this case VISAKHAPATNAM PORT has shown there best performance rather than in

any other case.

So I would like to recommend that JNPT has to take some specific steps or to implement

some strategies regarding the enhancing of there Operating Ratio so that the ultimate

results should come in front of us.


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LIMITATIONS


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LIMITATIONS

Though this study provides better knowledge about this field but still it has some

Limitations:

1. Due to short span time, study could not be so deep.

2. Due to data collected much earlier of submission of project report, the most current

Data could not be well presented.

3. Only CMIE has been used as a source of data. Other source has been ignored.


65/66

Bibliography:-

CMIE DATA BASE (PROWESS)


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Shardha Final Report

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