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A PROJECT REPORT ON

EXPORT PROCEDURE AND DOCUMENTATION


With reference to
KAKINADA SEA PORTS LIMITED. KAKINADA
A Project Report submitted in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
K.VENKATA SHYAM BABU
(Roll No: Y12IB20045)

UNDER THE GUIDANCE OF


Dr. R. SIVA RAM PRASAD
M.B.A.,M.COM,M.C.A.,P.G.D.C.A., B.L.,PH.D
Department Of INTERNATIONAL BUSINESS STUDIES
ACHARYA NAGARJUNA UNIVERSITY
(A recognized institute and given B++ rank by NACC)

Declaration

I K.VENKATA SHYAM BABU hereby declare that the project report entitled A Study on
export procedure & documentation in KAKINADA SEA PORTS LIMITED. KAKINADA prepared based
on the information collected during 30TH OCT 2013 TO 29TH NOV 2013for partial fulfillment of the award of
INTEGRATED M.B.A(International business studies). III/I SEMESTER,

Acharya Nagarjuna

University, Nagarjuna Nagar.

It is an original work done by me and to the best of my knowledge and belief, it has
not been published earlier elsewhere or presented to any University or Institution for award of any degree.

DATE:

PLACE:

(K.VENKATA SHYAM BABU)

CERTIFICATE
This is to certify that the project Report titled A Study of export procedure
&documentation in KAKINADA SEA PORTS LIMITED. KAKINADA is an original work
carried out by K.VENKATA SHYAM BABU (Enrollment No Y12IB20045), under my guidance
And supervision,in partial fulfillment for the award of the degree of 5 Year integrated M.B.A to the
Department of international Business, Acharya Nagarjuna University, Nagarjuna Nagar, Guntur during
the academic Year 2011-16. This report has not been submitted to any other University or Institution
for the award of Degree.

SIGNATURE OF THE GUIDE

Name and Address of the Guide:


Name of Guide:
Designation:

ACKNOWLEDGEMENT

I wish to acknowledge my sincere gratitude to all persons who whole-heartedly


Contributed their sincere support that helped me for the successful completion of my project work.
I take much pleasure to express my deep sense of gratitude and thankfulness to the
Department of International Business, Acharya Nagarjuna University, and Guntur.
It is indeed my great pleasure to profoundly thank to my project guide
Dr. R. SIVA RAM PRASAD, for his valuable and sincere guidance throughout my Project.
I am duty-bound to sincerely thank SRI.M.MURALI KRISHNA, GENERAL MANAGER
(BUSINESS DEVELOPMENT & LOGISTICS) for his valuable guidance and support for the
successful completion of the project, and also thank to all the employees of KAKINADA
SEA PORTS LIMITED. KAKINADA, for their valuable co-operation, co-ordination and
assistance in my project work.

(K.VENKATA SHYAM BABU)

CONTENTS
PAGE NO.

Chapter -1
1.1
1.2
1.3
1.4

Introduction
Need for exports & imports
Export incentives
International business
International marketing

Chapter-2
2.1
2.2
2.3
2.4

Objectives.
scope
Research methodology
Limitations

Chapter-3

Profile of sea port industry

Chapter-4

Company profile

Chapter-5

Export procedure documentation and procedures and its analysis

Chapter-6

Incoterms

Chapter-7

Glossary international freight terms

Chapter-8

suggestions and conclusion

Chapter-9

Bibliography

1. INTRODUCTION

INTRODUCTION
Imports and Exports of goods dominate the interdependence of countries in the world economy.

Exports are the part of a countrys domestic production that is sold to residents of other countries. Imports
are the part of a countrys domestic consumption and/or investment that is purchased from foreign
producers.

An export and import is very much necessary for a country. Because if a country had no import or
export, they wouldn't be able support themselves. Import is when a country brings things in that they can't
supply. And export is when a country gets paid to give away extra stuff they have. Without import and
export, a country would only have what they could supply on their own.

In order to develop countrys economy, it has to import what it doesnt produce. The payment
for all these imports can be done only through exporting the products and earnings through valuable
foreign exchange.

NEED OF IMPORTS IN INDIA


On the imports side, India has been in a disadvantageous position, advanced countries which are
capable of producing and selling almost every commodity at low prices. This meant that India could
not develop any industry without protecting it from foreign competition.
Imports are essential to protect domestic industries and to promote industrial development.
Since independence, the government of India has broadly restricted foreign competition through
a judicious use of import licensing, import quotas, import duties and in extreme cases, even banning
import of specific goods.

NEED OF EXPORTS IN INDIA


To pay for its imports and to minimize dependence on foreign countries, expansion of exports

was very essential. There are many good reasons for exporting:
The first and the primary reason for exporting are to earn foreign exchange. The foreign exchange
cannot only brings profit for the exporter but also improves the economic condition of the country.
The companies that export their goods are believed to be more reliable than their counterpart
domestic companies assuming that exporting company has survive the test in meeting
international standards.

Free exchange of ideas and cultural knowledge opens up immense business and trade
opportunities for a company.

One starts visiting customers to sell ones goods; he has an opportunity to start exploring
for newer customers, state-of-the-art machines and vendors in foreign lands.

EXPORT INCENTIVES
The government of India has framed several schemes to promote exports and to obtain
foreign exchange. These schemes grants incentive and other benefits. The few important export
incentives, from the point of view of indirect taxes are briefed below:

1. Free Trade Zones (FTZ).


2. Electronic Hardware Technology Park/ software technology parks.
3. Advance License / Duty exception Entitlement scheme(DEFC)
4. Export Promotion Capital Goods Scheme (EPCG).

INDIAN EXPORTS
Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed
faster export growth than others. Some of the main Indians exports are

1.

Software

2.

Tobacco

3.

Cotton

4.

Textiles

5.

Jute good tea

6.

Coffee

7.

Cocoa products

8.

Rice

9.

Wheat

10. Jams
11. Juices & preserved vegetables etc.
India exports its goods to some of the leading countries of the world such
UK
USA
BELGIUM
RUSSIA
CHINA , E.T.C

Exports

: $155 billion f.o.b (2009 est.)

Goods exported

: Software, petroleum products, textile


goods, gems and jewelery, engineering
goods,

chemicals

and

leather

manufactures.

Main export partners

: US 12.3%,

UAE 9.4%,

China 9.3% (2008)

Imports

: $232.3 billion f.o.b (2009 est.)

Import goods

: crude oil, machinery, gems,


fertilizer, chemicals

FDI stock

: $161.3 billion (2009 est.)

Foreign exchange reserve

:$279.4 billion(2010)

RESERVES OF FOREX
The foreign exchange market (FOREX) is a worldwide decentralized financial market for the
trading of currencies. Financial centers around the world function as anchors of trading between a
wide range of different types of buyers and sellers around the clock with the exception of weekends.
The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange market is to assist international trade and investment,
by allowing businesses to convert one currency to another currency. For example, it permits a US business
to import European goods and pay Euros, even though the businesss income is in US dollars.
It also supports speculation, and facilities the carry trade in which investors borrow low-yielding currencies
and lend (invest in) high-yielding currencies and which may lead to loss of competitiveness in some
countries.
INTERNATIONAL TRADE:-

International trade is exchange of capital, goods, and services across international borders or territories.In

most countries, it represents a significant share of gross domestic product (GDP). While international trade

has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and

political importance has been on the rise in recent centuries.

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the

continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

International trade is in principle not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The

main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with

country differences such as language, the legal system or culture.

Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries. Thus international trade is mostly

restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Then trade in goods and services can serve as a substitute for trade in factors of production.

Instead of importing a factor of production, a country can import goods that make intensive use of the factor of production and are thus embodying the respective factor. An example is the import of labor-intensive goods by

the United States from China. Instead of importing Chinese labor the United States is importing goods from China that were produced with Chinese labor.

International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.

New Trade Theory

New Trade Theory tries to explain empirical elements of trade that comparative advantage-based models above have difficulty with. These include the fact that most trade is between countries with similar factor

endowment and productivity levels, and the large amount of multinational production (i.e. foreign direct investment) which exists. New Trade theories are often based on assumptions like monopolistic competition and

increasing returns to scale. One result of these theories is the home-market effect, which asserts that, if an industry tends to cluster in one location because of returns to scale and if that industry has high transportation

costs, the industry will be located in the country with most of its demand to minimize.

Regulation of international trade

Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century,

especially in the United Kingdom, a belief in free trade became paramount. This belief became the dominant thinking among western nations since then. In the years since the Second World War, controversial multilateral

treaties like the General Agreement on Tariffs and Trade (GATT) and World Trade Organization have attempted to promote free trade while creating a globally regulated trade structure. These trade agreements have often

resulted in discontent and protest with claims of unfair trade that is not beneficial to developing countries.

Free trade is usually most strongly supported by the most economically powerful nations, though they often engage in selective protectionism for those industries which are strategically important such as the protective

tariffs applied to agriculture by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the

United Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China and Russia) are increasingly becoming advocates of free trade as they become more economically

powerful themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures, including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost

associated with meeting trade and customs procedures.

Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly

in the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade treaties which allow for more protectionist measures in agriculture than for most other goods and services.

During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression. Many economists have attempted to portray tariffs

as the underlining reason behind the collapse in world trade that many believe seriously deepened the depression.

The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, the North American Free

Trade Agreement (NAFTA) between the United States, Canada and Mexico, and the European Union between 27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of

the Americas (FTAA) failed largely because of opposition from the populations of Latin American nations. Similar agreements such as the Multilateral Agreement on Investment (MAI) have also failed in recent years.

Risk in international trade

Companies doing business across international borders face many of the same risks as would normally be
evident in strictly domestic transactions. For example,

Buyer insolvency (purchaser cannot pay);

Non-acceptance (buyer rejects goods as different from the agreed upon specifications);
Credit risk (allowing the buyer to take possession of goods prior to payment);
Regulatory risk (e.g., a change in rules that prevents the transaction);
Intervention (governmental action to prevent a transaction being completed);
Political risk (change in leadership interfering with transactions or prices); and
War and other uncontrollable events.

In addition, international trade also faces the risk of unfavorable exchange rate movements (and,the potential
benefit of favorable movements)

Top traded commodities (exports)


Rank

Commodity

Value in US$('000)

Date of
information

Mineral fuels, oils, distillation products, etc

$1,658,851,456

2009

Electrical, electronic equipment

$1,605,700,864

2009

Machinery, nuclear reactors, boilers, etc

$1,520,199,680

2009

Vehicles other than railway, tramway

$841,412,992

2009

Pharmaceutical products

$416,039,840

2009

Optical, photo,
apparatus

etc $396,337,696

2009

Plastics and articles there of

$386,628,064

2009

Pearls, precious stones, metals, coins, etc

$320,174,080

2009

Organic chemicals

$310,106,432

2009

10

Iron and steel

$273,024,416

2009

technical,

medical,

Top trading nations


List of countries by exports and List of countries by imports
Rank

Country

Exports + Imports

Date of
information

European Union (Extra-EU27)

$3,197,000,000,000

2009 [26]

United States

$2,439,700,000,000

2009 est.

People's Republic of China

$2,208,000,000,000

2009 est.

Germany

$2,052,000,000,000

2009 est.

Japan

$1,006,900,000,000

2009 est.

France

$989,000,000,000

2009 est.

United Kingdom

$824,900,000,000

2009 est.

Netherlands

$756,500,000,000

2009 est.

Italy

$727,700,000,000

2009 est.

Hong Kong

$672,600,000,000

2009 est.

South Korea

$668,500,000,000

2009 est.

10

Belgium

$611,100,000,000

2009 est.

11

Canada

$603,700,000,000

2009 est.

12

Spain

$508,900,000,000

2009 est.

13

Russia

$492,400,000,000

2009 est.

14

Mexico

$458,200,000,000

2009 est.

15

Singapore

$454,800,000,000

2009 est.

16

India

$387,300,000,000

2009 est.

17

Taiwan (Republic of China)

$371,400,000,000

2009 est.

18

Switzerland

$367,300,000,000

2009 est.

19

Australia

$322,400,000,000

2009 est.

20

United Arab Emirates

$315,000,000,000

2009 est.

International Marketing:International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.

It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. According to

the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create

exchanges that satisfy individual and organizational objectives." In contrast to the definition of marketing only the word multinational has been added. In simple words international marketing is the application of marketing

principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term.

The intersection is the result of the process of internationalization. Many American and European authors see international marketing as a simple extension of exporting, whereby the marketing mix 4P's is simply adapted

in some way to take into account differences in consumers and segments. It then follows that global marketing takes a more standardized approach to world markets and focuses upon sameness, in other words the

similarities in consumers and segments.

According to Kotabe, the following topics cover the micro-context of international marketing.

Organizational and consumer behaviour:

organizational buying behaviour;

international negotiations;

consumer behaviour;

country of origin.

Marketing entry decisions:

initial mode of entry

specific modes of entry

exporting;

Joint ventures.

Local market expansion: marketing mix decisions:

global standardization vs. local responsiveness

Marketing mix:

product policy;

advertising;

pricing;

Distribution.

Global strategy:

Competitive strategy:

conceptual development;

competitive advantage vs. competitive positioning;

Sources of competitive advantage and performance implications.

Strategic alliances:

learning and trust;

recipes for alliance success;

Performance of different types of alliance.

Global sourcing:

global sourcing in a service context;

benefits of global sourcing;

Country of origin issues in global sourcing.

Multinational performance:

determinants of performance;

a different interpretation of performance.

Analytical techniques in cross-national research:

measurement issues;
Reliability and validity issues

Differences between domestic marketing and international


marketing

There are various differences between domestic marketing and international marketing. Due to a language barrier it is more difficult to obtain and interpret research data in international marketing. Promotional messages

need to consider numerous cultural differences between different countries. This includes the differences in languages, expressions, habits, gestures, ideologies and more. For example, in the United States the round O

sign made with thumb and first finger means "okay" while in Mediterranean countries the same gesture means "zero" or "the worst". In Tunisia it is understood as "I'll kill you" meanwhile for a Japan consumer it implies

"money". Even among the 74 English-speaking nations a word with the same meaning can differ greatly from the English which is spoken in the United States as the following example shows:

Police: bobby (Britain), garda (Ireland), Mountie (Canada), police wallah (South Africa)

Porch: stoep (South Africa), gallery (Caribbean)

Bar: pub (Britain), hotel (Australia), boozer (Australia, Britain, New Zealand)

Bathroom: loo (Britain), dunny (Australia)

Ghost or monster: wendigo (Canada), duppy (Caribbean), taniwha (New Zealand)

Barbecue: braai (South Africa), barbie (Australia)

Truck: lorry (Britain and Australia)

Festival: feis (Ireland)

Sweater: jumper (England)

French fries: chips (Britain)

Soccer: football (the rest of the world)

Soccer field: pitch (England)

Three recent international examples of misinterpretation are:

On a sign in a Bucharest hotel lobby: The lift is being fixed for the next day. During that time, we regret that you will
be unbearable.

From a Japanese information booklet about using a hotel air conditioner: Cooles and Heates: If you want just

condition of warm your room, please control yourself.

In an Acapulco hotel: The manager has personally passed all the water served here.

Mode of engagement in foreign markets


After the decision to invest has been made, the exact mode of operation has to be determined. The risks concerning operating in foreign markets is often dependent on the level of control a firm has, coupled with the level
of capital expenditure outlayed. The principal modes of engagement are listed below:

Exporting (which is further divided into direct and indirect exporting).

Joint ventures.

Direct investment (split into assembly and manufacturing).

0.9 million of payment of freight charges, which could otherwise be used for other high priority
imports or for building up indigenous infrastructure.

IMPORTANCE OF GLOBAL TRADE

5. Availability of international shipping services to trade


The shipping services
India are
alsoofpatterned
to the
globalinshipping
A. in
Current
status
maritimesimilar
transport
industry
India services, namely,
tramps and liners. The types of ships engaged in Indias overseas trade include dry cargo liners, cellular
1. ore/oil/bulk
Importance of
maritime
transport(product
in economic
container ships, dry cargo bulk carriers,
carriers,
oil tankers
carriers), passengerdevelopment
andRoRo
in international
trade
cum-cargo vessels, acid carriers, timer carriers,
LPG carriers,
ships, OSVs
and specialized ships.
The shipping industry also caters to the requirements of coastal trade and offshore supply vessels (OSVs)
Ocean transport or shipping plays an important role in the trade and economic development of
for ONGC and GAIL.
nations. In fact, transport, trade and economic development are mutually supportive. The overwhelming
theinlast
years, Indias
tradeinhas
expanded
considerably
both
termsofofthe
composishare ofDuring
shipping
the50carriage
of aboutoverseas
95 per cent
terms
of volume
and almost
twointhirds
total
valueand
tion
of international
direction due trade
to theestablishes
policy of export
its predominance
promotion being
and importance
pursued byasthe
a mode
Government.
of international
At the same
transportation
time,
efforts are
system.
being made
The importance
to provide and
of shipping,
improve over
the trade
the period,
relatedhas
infrastructure,
also increased
especially
due to the
the
technological
transport,
to facilitate
developments
the movement
in transport,
of traffic
especially
more in
efficiently.
terms of containerization
So far as the movement
culminating
of traffic
in multimodal
by ships
to
overseas destinations
is concerned,
both majority
Indian asofwell
the foreign
flagby
ships
conference
transportation
on door-to-door
basis, since
theas
containers
move
this operating
mode of transport.
and non-conference liner shipping services have been providing the services either directly or through
2. Role of shipping in Indias foreign trade
transshipment arrangements for the general cargo in break-bulk or containerized form. Similarly for the
and foreign exchange earnings
bulk cargo moving either as imports or exports, the services of tramp ships both Indian and foreign usually
engagedInon
chartering
are available
to all
destinations.
case
of India,basis
shipping
constitutes
an the
essential
component of the countrys international trade since
about 90 per cent of her overseas trade in terms of volume and about 77 per cent in terms of value moves
6. Port infrastructure for foreign trade
by sea. In view of the vital role played by shipping industry in furthering the growth of overseas trade, as
is served
by twelve
major
ports,
handlingthe
more
than 75 per
centfrom
of the
sea borne
trade, and
also as India
a direct
earner and
saver of
foreign
exchange,
Government
right
thetotal
beginning
of planning
aera
number
of small
ports, located
along
countrys
coastline.
in 1950-51
has and
beenminor
endeavoring
to build
adequate
national
fleet. The development of major ports is
the responsibility of the Central Government, while the operational and administrative responsibility for
Shipping is
valuable
invisible
foreign
forstates
any country.
Over jurisdicthe period,
the development
ofathe
intermediate
andexport
minororports
restsexchange
with the earner
maritime
under whose
Indian
shipping
has improved
its assistance
foreign exchange
flows,
as theisgross
earnings/receipts
increased
from
tion they
fall, although
technical
wherever
necessary
provided
by the Central
Government.
Rs 26.98 billion in 1991-92 to Rs 57.2 billion in 1999-2000 and the net inflows increased from Rs 15.6
7. Port capacity and traffic throughput
billion to Rs 35.3 billion during the same period.
Ever since the beginning of planning era, i.e., 1950-51, expansion of port capacity has been
3. Growth of Indian shipping fleet
an important aspect of development programmes obviously due to increasing volume of traffic. There
Indian
shipping
fleet which towards
possessed
59 ships
with a during
total tonnage
about 0.19
GT at the
has been
progressive
development
capacity
building
the pastofdecade
or so.million
The table
time
(August
gradually
increased
to traffic
0.37 million
GT inand
1951,
the beginning
(tableof1)independence
in the next page
gives1947)
the trends
in ports
capacity,
throughput
the i.e.,
capacity
utilizationof
the
Five Year
Plan. Since then the same registered a remarkable growth till the end of the Sixth
fromFirst
1984-85
onwards:
Five Year Plan, i.e., 31 March 1985. In the subsequent years, there have been fluctuations in the growth
The total capacity at the major ports is expected to be 344 million tons at the end of Ninth Five Year
of the shipping fleet as the achievement in terms of fleet size fell short against the fixed target. The target
Plan (31 March 2002) against the envisaged traffic of about 300 million tons (about 86 per cent capacity
of 9 million GT fixed for Ninth Five Year Plan is unlikely to be achieved since the shipping fleet as on
utilization), thus bringing a great relief to the existing overworked ports. Besides, the port development
1 April 2001 was 546 ships aggregating only 6.84 million GT, which is almost the same level as at the
projects taken up by the state governments in respect of minor ports and also the establishment of captive
beginning of the Plan period.
ports would boost the capacity expansion programmes in the port sector.
4. Growth of Indias overseas trade
8. Privatization/liberalization of port sector
and the shipping capacity
In order to accelerate the pace of privatization, in line with the overall policy of liberalization of the
Over the period, the movement of traffic in terms of export and import cargoes has witnessed a
Government, policy guidelines on private sector participation in port development were issued by the
remarkable growth increasing from 30 million tons in 1960-61 to 224.6 million tons in 1999-2000, but
Ministry
in 1996.
As ashipping
result,has
ahas
substantial
capacity,
particular
container
funded from
the capacity
.through
private
of Indian
sector
funds
been
notcreated
shown
during
the corresponding
the Ninth Five
growth,
Year handling
plans.
since the facilities
same increased

India
Table 1. Total Capacity and Traffic Handled at Major Ports

(In Million Tons)


Year

Capacity

Traffic Handled

(Per cent)

1984-85

132.7

107.8

81

1985-86
1986-87

141.9
141.9

119.5
124.4

84
88

1987-88
1988-89

141.9
141.9

133.7
146.4

94
103

1989-90
1990-91

162.8
162.8

148.4
152.9

91
94

1991-92
1992-93

169.2
170.2

157.6
166.6

93
98

1993-94

170.2

179.3

105

1994-95
1995-96

174.0
181.2

197.2
215.3

113
119

1996-97
1997-98

219.5
239.5

227.3
251.4

104
105

1998-99
1999-00

254.4
254.4

251.7
272

105
107

2000-01

291.0

281

91

B. Existing policies/laws/regulations
1. Market access and restrictions on specific trades
Market access, i.e. access to the carriage of cargo traffic assumes a great significance so far as
shipping services are concerned. The dearth or denial of opportunity to carry cargo, both bulk as well as
break-bulk, even originating in their own countries or belonging to them is one of the most important
factors inhibiting participation of mercantile fleet of developing countries. This is primarily due to the
terms of trade being used by the major trading partners of the developing countries which are more
favourable to them, i.e., buying on FOB/FAS and selling on CIF/CFR basis.
Imposition of restrictions on maritime transport services can adversely affect the price, reliability
and quality of these services. These are in fact barriers that limit maritime service suppliers from
entering or operating in a market. Such restrictions are imposed by some governments through legislation
and regulation. Such restrictions may be discriminatory or non-discriminatory against foreign service
suppliers.
Cargo support in favour of national shipping is nearly universal, since reservation of national cargoes
for national bottoms provides the national fleet with a certain degree of stability in an otherwise violently
cyclical market. This stability has an extremely positive impact on the eventual financial strength of
national shipping companies and their ability to raise capital competitively. In case of Indian shipping as
well, cargo support was made a cardinal principle of national policy which proved to be a great source of
strength in promoting the growth of the national fleet. Since the key to cargo support is provided by
formulated a policy of FOB/FAS imports and CIF exports in 195
the termscargo
of shipment
on shipping,
FOB and sell on CIF basis, the Government of India also
.controlling
I) Providing
support to
to buy
Indian

(ii) Saving outgo of valuable foreign exchange and earning foreign exchange in cross trades,
(iII) Controlling freight level and commodity price in national interest, etc. Under this arrangement,
the government owned/controlled cargo is channeled by the charting wing of the Ministry of
Shipping, called Transchart. As per this policy the first right of refusal for carriage of such
cargo was given to Indian vessels.
However, pursuant to the policy of trade liberalization in mid-1991 resulting in decanalization of
various items, like rock phosphate, sulphur, ammonia, phosphorus acid, DAP, MOP, etc. and entry of
private trade in import of these items, Transcharts role for making shipments arrangements for the
cargoes under reference has been marginalized and the same is likely to further go down in the near
future due to the changing pattern of trade in which private sector will be having a greater role to play.
Moreover, the declining share of national carriers in the total overseas trade of the country and
remaining within a range of 28 per cent to 35 per cent especially in the post liberalization era clearly
reflects that India has not been following strictly any cargo support policy even in respect of cargo being
imported or exported by the Public Sector Undertakings, since lately they have been demanding relaxation
in the policy of going through Transchart for making the shipment arrangements due to the growing
competitive business environment in which now they have to operate.
In the context of market access, it may also be highlighted that the lower share of Indian shipping in
the carriage of countrys overseas trade is due to the terms of trade used by Indias trading partners, who,
by and large, have been buying and selling goods on terms more favourable to them. Thus from Indias
point of view, there is no protection as such for the national carriers and no restrictions for the ships of
other countries to carry cargo from Indian ports.
The carriage of coastal trade is governed under the cabotage principle in many countries, developed
as well as developing. India too, has a scheme of 100 per cent reservation of coastal trade for the national
carriers, since the movement of traffic within a countrys ocean territory has always been considered as
part of the internal transport system. However, any dispensation permitting the foreign flag in the coastal
trade is given on voyage to voyage basis.
2. Bilateral/unilateral cargo reservation schemes
Bilateral shipping arrangements are considered to be an effective tool to ensure cargo support to
the national bottoms and is reportedly used by some of the countries in the world.
Initially, India used to have bilateral trade and shipping agreements with some of the Eastern Bloc
Countries and UAE, according to which there was parity (50:50) in terms of sailings and the carriage of
trade by the carriers of the respective trading partners. This system proved quite effective in ensuring
cargo support for the national carriers and thereby better utilization of ships in the liner trade, especially in
case of India. However, due to the changes that have taken place in the economies of those countries, over
the period, no such agreements or schemes are currently in force.
3. Subsidies
Some of the developed countries arereportedly extending the facilities of operational and construction
subsidies, concessional credits, registration of vessels in open registry countries, tax incentives or assistance for shipbuilding or operation costs aiming at the development of shipping activities or sometimes at

For exampl

(SDFC) was set up in 1958. SDFC disbursed large amounts at very attractive rates of interest varying
from 3 per cent during 1959 to 1971 to 7.5 per cent from 1980 to 1986. However, SDFC was abolished in
1987 and now no one financial institute has been given an exclusive mandate for financing the shipping
sector. Similarly adoption of certain fiscal measures, e.g. additional 1 per cent REP license in case of
utilization of national carrier for the carriage, were also directed towards the development of shipping
fleet. All schemes have been removed during the past one and a half decades, especially after the
introduction of the policy of liberalization. Since the financial support to the shipping industry is almost
non-existent, the same has been left with no option but to take care of its requirement through ECBs or
such other instruments so far as the raising of funds for acquisition of ships is concerned.
Further, there exists no scheme for subsidizing the national carriers in the carriage of cargo and
there is also no cargo preference for them and the trade is thus open for being carried by the ships offering
competitive freight rates. Even in case of shipments of Government controlled cargoes or the cargoes
traded by the Public Sector Undertakings for which the fixation of ships by Transchart is done, Indian
bottoms do not get any price preference, they have to match the lowest price.
4. Access to port facilities/services for overseas vessels
Indian ports, from the very beginning, have been following the principle of non-discrimination in
providing the facilities and services to the ships calling at ports irrespective of their flags. Likewise, there
is uniformity in levying charges for the port related facilities or services for all the ships.
Ports being the lifeline for the economy as a whole and foreign trade in particular, the need for
efficient services has been well recognized universally. To bring about improvement in this sector, the
Government has deviated from its erstwhile socio-economic policy and has accepted privatization concept
of construction, development and operation in ports. The objective of privatization is in terms of technology, better equipment availability, management, funding, marketing, shift of operation and related risks to
the private entrepreneurs who can have better inputs, commercial practice and flexibility required for
ensuring the needed competition.
Private sector is permitted to construct its own cargo handling facilities at the ports, under BuildOperate-Transfer format. There is no distinction between foreign and Indian companies. 100 per cent
Foreign Direct Investment is permitted without specific approvals from the Government authorities. In
order to provide incentives to the projects to enhance their viability/profitability, corporate tax exemption
has been provided for 10 years and the import of project and its component is permitted on concessional
import duty bases. In the maritime auxiliary services, there are no limitations on market access, nor are
there any limitations on national treatment in the commercial presence in the areas of Maritime Cargo
Handling services; Storage and Warehousing services in ports; Container Station and Depot Services;
Maritime Agency services; Maritime Freight Forwarding services and maintenance and repairs of sea
going vessels.
C. National (plan/policy) towards liberalization
1. Policy towards liberalization of maritime
transport services
In case of shipping and port sectors, especially, the policy has been towards encouraging openness.

e, foreign
liberalization
crude
Indian
nies
freedom
trade,
totankers
on
companies
retain
to
case
direct
charter
sale
of
and
to shipping
investment
case
proceeds
OSVs)
within
outbasis.
Indian
India
by
sector
of
(FDI)
private
ships
Indian
orinclude
abroad,
isto
shipping
permissible
ships
foreign
automatic
acquisition
abroad
companies,
shipping
upand
approval
toof100
utilization
companies
replacement
sale
per
forof
cent.
acquisition
ships
offor
the
Various
tonnage,
employment
for
same
further
ofmeasures
for
all
permitting
fresh
categories
trading/scrapping
in international
acquisition
towards
shipping
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and
compacross
to(except

participation
therequirement
4
barring strategic cargo like crudeD.andIndias
petroleum
products,atthe
of which th
is WTO
mostlyMinisterial
met through
imports, majority of the cargo in bulk and break-bulk Conference
trade is being
carried
by the ships belonging either to
held
in Doha
the importing countries or FOC (Flag of Convenience) countries, where again the ownership is with the
participated
at the
Ministerial
Conference
in Dohacompetitive
from 9-13 November
2001. The
t hWTOwith
leadingIndia
maritime
countries.
The4 ships registered
FOC countries
are offering
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Ministerial
Declaration
adopted
at Doha
reaffirms
the Guidelines
and Procedures
for theofNegotiations
charges due to
their inherent
advantage
in terms
of lower
operating costs.
In the interest
providing
adopted
by thefor
Council
for Trade
in services
on issue
28 of market accessMarch
2001 as the basis for continuing the negotiaopportunities
a fair share
in their
trades, the
thas
h to be considered based on
tions,
of achieving would
the objectives
ofdo
theaway
General
on Trade
services
stipulated
GATSwith
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The negotiations
hopefully
withAgreement
the limitation
in thisinregard
andasthe
in
the Preamble,
Article
IV and
Article XIX
of that Agreement.
The benefit
Doha agreement
maritime
transport
services
of developing
countries
like India might
from suchstipulates
a move. that the
participants shall submit their initial requests for specific commitments by 30 June 2002 and initial offers
by 31 March 2003.
India is sensitive to the needs of the developing countries and is in the process of examining the matter
in order to finalize its stand with regard to the forthcoming negotiations on Maritime Transport Services.
E. Preparation for negotiations
1. Expectations from the forthcoming negotiations on Maritime
Transport Services (MTS) through WTO
Mandated Negotiations under the General Agreement on Trade in Services (GATS) commenced at
the WTO on 1

stJanuary 2000. The main objective of GATS is the expansion of trade in services,
progressive liberalization of such trade through negotiations, transparency of rules and regulations and
increasing participation of developing countries. Since MTS is governed by the GATS under the WTO
regime, it is expected that this sector will witness significant liberalization through multilateral trade
negotiations.
In the past, the shipping interests of developing countries like India have been adversely affected
because of the policies and practices of the developed countries and their shipping companies. Therefore,
the burden of making the maritime transport services transparent, non-discriminatory and providing
market access to the shipping industry of the developing countries on a fair and equitable basis lies
squarely on developed countries. The developing countries may hope that with the removal of protectionist
policies and practices followed by the developed maritime countries, the former will be having a better
opportunity of improving their shipping fleet as also the share in the carriage of trade. The participation of
their fleet in cross trade with equal opportunity of carriage of global trade would further result in better
earnings in foreign exchange, besides utilization of increased capacity for carriage of national trade would
give the advantage in terms of savings in the outgo of foreign exchange. The improvement in shipping fleet
as also in the port sector is expected to bring in better results for the countrys economy as a whole.
F. The most important limitation expected to be eliminated
or reduced through such negotiations
Services trade has emerged as an important and growing part of the world economy accounting
for increasing shares of production, employment and international transactions. The share of services
in the world trade as well as the majority of domestic activities in most economies is reportedly around
20 per cent.
covered
the
maritime
Though
carriage
overseas
above
Developing
Currently
the
by
of
buyers,
nations
group
the
GATS.
cargo
same,
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is
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may
and
The
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market
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range
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important
the
buyers
transport
of
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access,
in
services
economies
from
the
limitation
i.e.,
services.
developing
ofdeveloped
currently
cargo
thecan
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for
isexpect
countries,
very
the
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being
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much
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compete
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dependent
Intransport
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national
by
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India,
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even
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itin
terms
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of
countries
has
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been
services
national
of no
trade
developing
observed
claim
falling
used
sectors
trade.
onby
under
that,
thethe

CHAPTER-2
OBJECTIVES
SCOPE
RESEARCH METHODOGY
( DATA ANALYSIS)
LIMITATIONS
SAMPLING

THE present study is a comprehensive study of EXPORT DOCUMENTATION


AND PROCEDURE . The research work is done in collaboration with KAKINDA SEA PORT LTD
To assess the overall export procedure & documentation. On concentrating the
OBJECTIVE Of the project of maximum information is summed up sequentially. The
Executive Summary of the project describes...
Objective

The main objective of the study is to formulate the overall procedure of export orders say how
to export, documentation, modes of payment & incentives from KAINADA SEA PORT LTD.
Research Methodology

Research comprises defining and redefining problems. Research purpose is to discover answer to
question through the procedure of scientific procedure. Interviews and discussion
With thesupervisors and officials to get the root of the pre-determined objective and in order to outline
the a to z steps of processing export order.
Findings & Recommendations

On the execution of the objective of study, it might be conclude that processing of export order
can be a tedious and costly activity. A careful planning and implementation of appropriate
procedure can reduce time and cost drastically. A fair documentation not only reduces the threats
of frauds, bottlenecks and risks but also enhances the business relationship between Exporters,
Importers & Governments in the whole world.

The complexity of business operations greatly accentuate as businessmen cross the

Statement of objectives

formulate the how to export concept finally to contribute to national and in

The focus of the study was the formulation the multifunction procedure of an export unit
nationalKAKINADA
named
boundaries .SEA
A lotPORT
of formalities
LTD. The focus
and modalities
of the studyofwas
several
on identifying
organizations
the activities
have toof be
compileddivisions
different
to and and
as departments
error can of
create
KAKINADA
bottle necks
SEAPORT
in the
LTDhaving
free flowan impact
of good,
ondocuments,
the export p
information and
procedureOf
thispayments.
unit. Focus was to outline the standard modes of payment for export houses.
Research on analyzed
Documentation
the pre-export
is definitely
formalitiesone
andof
necessities
the prime
for exportation.
specialized The
functions
project of
is an
international
attempt to national and
international economy & business contribution
business. The documents safeguard the interests of

Exporter, Importer, Banks, Governments,

Transport Agencies, Insurance Agencies and Inspection Agencies.


Main Objective of the Study

The main objective of the training was to study the systematic export procedure &
documentation of a reputed export house say KAKINADA SEA PORT LTD to overcome any kind of error,
bottleneck, frauds and mistake for the awareness and implementation of standardized ruleregulations & documentation to contribute the integration of International Business up to any
extent.
Sub Objectives of the Study

The sub objectives of the study were:

To study the department wise functions & sequential documentation for various
operations in export orders adopted by KAKINADA SEA PORT LTD.

To study the standard modes of payment in export-import.

To identify the incentives, discounts & duty drawbacks to exporters by the


Government.

FOCUS OF THE STUDY

METHODS OF COLLECTING DATA


THE Data collection has involved in two steps
PRIMARY DATA:The Primary data is collected by interacting with the General manager ,asst.General manager and employees
of kakinada sea port LTD.
S ECONDARY DATA:The secondary data is collected from the internet , journals and books

SCOPE AND LIMITATIONS OF THE PROJECT


SCOPE:This project work is focussed and confined to understanding activities involved in the tobacco export process
and related export documentation.This project work is focussed and confined to understanding activities
involved in the tobacco export process and related export documentation

LIMITATIONS:-

PARTIALinformation of negotiable documents because of securities reasons..

All the findings are based on the information from Seller/Exporter side only.

Export Rules, Regulations & Compliances are too wide to cover thoroughly in short term project.

Primary data is analyzed though interview of executives and they may not be available
and may not be part of research.
Less sufficient response of executives & supervisors in respect to information
and related matters
Due to insufficient time , information about the project is limited because of project time is one

related to securities
month

CHAPTER-3
INDUSTRY PROFILE

INDUSTRY PROFILE
Seaports and sea-borne trade are an important economic asset for the Gulf Coast region, directly an indirectly
supporting significant numbers of jobs. The region is home to four major seaports, those of Houston, Texas City,
Freeport and Galveston.
The Port of Houston is one of the worlds largest cargo ports. In 2007, the port ranked first in Texas,
second in the U.S., and 16th

In the world in to tal cargo volume handled. 32 It is also the states second-

largest cruise port and is expanding those operations

th the opening of a new cruise terminal.

The Port of Houston is a 25-mile-long complex administered by the Port of Houston Authority and hosts
more than 150 private industrial companies along the Houston Ship Channel. More than 225 million tons of
cargo moved through the port in 2007 and 8,053 vessel calls were recorded at the Port of Houston in 2008. 33
International trade partners of the port include Mexico and countries in the Middle East, South America and
Europe. Principal products handled at the Port of Houston include crude fertilizers, petroleum, organic chemicals,
cereal, iron and steel, machinery, plastics and vehicles.
A recent study by the University of Texas at Austins Center for Transportation Research found that the Port of

Houston directly or indirectly accounted for 785,049 jobs, $39.3 billion in personal income and $117.6 billion in
economic impact on the area, while providing $3.7 billion in tax revenue for local, state and federal governments in
2006
The Port of Texas City is the states fourthlargest, 13th in the nation and 87th in the world for total cargo volume. 5 It
is located about 10 miles northwest of Galveston and has the significant advantage of a highly integrated railway
system.
The railway facilitates the movement of liquid cargoes including crude petroleum oil and refined petroleum
products. The Texas City Terminal Railway Company handles more than 25,000 rail car loads annually. Both the
Union Pacific and Burlington Northern Santa Fe rail companies have a significant presence in the area, with 32
miles of connecting rail lines that serve different facilities at the port. The Port of Texas City includes 1,500 acres of
land leased to various industrial entities that operate petrochemical plants and refineries and tank and terminal
facilities, making it a vital national hub for the petroleum industry.36
The Port of Texas City directly or indirectly accounted for 15,050 jobs and $919.5 million in personal income in
2004. In that year, it generated $667.6 million in economic activity in the area and contributed $248.3 million in tax
revenue to local, state and federal governments.
In 2007, the port handled nearly 52 million tons of cargo. Its principal import is crude oil, while its principal exports
are gasoline, diesel, jet fuel, intermediate chemicals and petroleum coke. The port serves customers throughout the
U.S., as well as numerous countries around the world.37
The Port of Freeport, located about 50 miles south of Houston in Brazoria County, is the fifth-largest port in Texas
and the 27th-largest in the nation for total cargo volume.38 Its principal imports include crude petroleum, fruit,
textiles, aggregate, paper goods and plastics. Its primary exported commodities include automobiles, chemicals,
clothing, food, paper goods and plastics.
The port serves customers throughout the U.S. and from Nigeria, Saudi Arabia, South Africa, Brazil, Colombia, the
Dominican Republic, Guatemala, Honduras, Mexico, Venezuela and Costa Rica. The port directly or indirectly
accounted for 25,795 jobs, $1.8 billion in personal income and $1.6 billion in economic activity, while contributing
$169.9 million in tax revenue for local, state and federal governments in 2003. The Port of Freeport handled about
29.6 million tons of cargo in 2007.39
In 2007, the Port of Galveston was the eighth-largest port in the state and 53rd-largest in the nation for total cargo
volume.40 The port, located at the mouth of Galveston Bay along the Upper Texas Coast, handles imports including
containers, agricultural equipment, machinery, vehicles, fertilizer products, lumber products and military-related
cargoes. Its principal exports include bulk grains, containers, machinery, vehicles, linerboard and paper, carbon black
and light fuels. In 2007, the port handled 9.8 million tons of cargo.41
The Port of Galveston is also Texas number-one passenger port. In 2006, nearly 617,000 people embarked from the port on
cruise ships.
The port serves customers throughout the state as well as Texas neighboring states and the Midwestern U.S. Its
international trading partners include Mexico, Guatemala, Panama, Colombia, Venezuela, Brazil, Dominican Republic,
Spain, Italy, Egypt, Israel, Turkey, Bulgaria, Belgium, England, Germany, Saudi Arabia, United Arab Emirates, Kuwait,
Singapore and China.
The Port of Galveston directly or indirectly accounted for 13,367 jobs, $727.5 million in personal income, and $2.2 billion
in economic activity, while contributing $190.4 million in tax revenue to local, state and federal governments in 2006.42

CHAPTER 4
COMPANY PROFILE

KAKINADA SEAPORTS
LIMITED a dynamic gateway port on East Coast of India which is ideally located between Visakhapatnam and Chennai
Ports.Hope Island, a natural formation offers protection as natural breakwater for Kakinada Port and 1.2 Km breakwater of
tetra pods provides tranquil bay conditions round the year for vessels to operate in sheltered waters of Kakinada Deep Water
Port.
The vantagious position of Port gives a unique opportunity to handle a mix of bulk, liquid, break bulk, containers, project
cargoes & service offshore Oil & Gas exploration activities of Krishna Godavari Basin. KSPL team is truly committed to
Customer needs, safe working practices, supply chain management and environment protection.KAKINADA PORT is located
at Kakinada off the east coast of India. It is 170 km (106 mi) south of Visakhapatnam Port.
Kakinada Port is a large complex comprising Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour
and Ship-Breaking Unit. Kakinada Anchorage Port has a century-long tradition.
Kakinada Deep Water Port is an all-weather deep water port, and the channel has a depth of 12 metres (39 ft). The port can
handle vessels up to 50,000 DWT. The port handled 10.81 million tonnes of cargo in 20102011.Recently AP Govt has
developed Kakinada beach and it has 100 acres of land covered from port to uppada area.

KAKINADA ANCHORAGE PORT


Located on the East Coast of A.P, East Godavari District , India and the port is in operation departmentally since long time by A.P.Ports Department, Government of Andhra Pradesh.

Located at:-

o Lat :- 16 .56 N
o Long :- 82 .15 E

Kakinada Port is the main gateway port for the rich agricultural belt of East Godavari, West Godavari and Krishna Districts
of Andhra Pradesh.

Kakinada Port comprises of Kakinada Anchorage Port, Kakinada Deep Water Port, Kakinada Fishing Harbour.

Kakinada Anchorage Port has a hundred years old history managed by the Government of Andhra Pradesh.

Kakinada Anchorage Port handled a cargo of 1.14M.tons during the year 2010-11 and 2.55 M.Tons during the year 2011-2012
(up to 01/2012)

Kakinada Anchorage Port Infrastructure

o Land: 1959.69 Acres


o Wharf: 922 Mts length
o Open Stocking Area: 1,00,000 Tonnes
o Transit sheds for storage of Cargo: 50,000 MT (Govt) 3,00,000 MT (Private)

KAKINADA DEEP WATER PORT

Kakinada Sea Ports Limited is a Special Purpose Company set up in 1999 as a part of its privatization initiatives by the
government.

It is promoted by Kakinada Infrastructure Moldings Pvt. Ltd., group and Konsortium Logistic Berhad of Malaysia with an
objective of developing and operating a truly world class Hub.

This deep-water port is located on the east coast of India with a graphical position of
Located at:-

o North:- Latitude 17 05.8 N and longitude of 82 31.5 E.


o South:- Latitude 16 55.9 N and longitude of 82 30.0 E.
o East :- (A) Latitude 17 05.8 N and longitude of 82 31.5 E.

(B) Latitude 17 00.0 N and longitude of 82 31.5 E.


(C) Latitude 16 55.9 N and longitude of 82 30.0 E.

It is situated 170 km south of Visakhapatnam and 650 km north of Chennai. Kakinada forms the main gateway port for the rich
agricultural belt of East Godavari, West Godavari and Krishna Districts of Andhra Pradesh.

Conservancy powers vested with Kakinada Seaports Company Limited.

The port is developed with the land to an extent of Ac.302

THE KEY FEATURES

All weather, deep water.

It has a channel depth of 12 metres.

The berth waiting time is the minimum in the country of 0.31 hours as against 5.0 hours in major port.

The vessel turnround time is one day as against 3.5 days in major ports.

It has secured warehouses and spacious storage yards.

It is blessed with an efficient evacuation corridor and rail/road linkage.

It is an ISO and ISPS certified port.

PRESENT STAGE:

Commercial operations are commenced from 1-4-1999

Berths availability: 4 Berths are in operation

o Cargo Berth 910 Mts


o Multi cargo berth 635 Mts
o Offshore supply vessels Berth
o Coast Guard Berth
o The 5th and 6th Berths are under construction stage

Draft Depth of the channel availability is 14.00 Mts.

Vessel handling capacity is 50,000 DWT.

Cargo of 10.81 Million Tons was handled during 2010-11.

Ship to ship transport facility is available

COMPANY ORGANISATION STRUCTURE


MANAGING DIRECTOR : kranti venkatESWARA rao
Other direcrtors ; MIRZAN BIN MAHATHIR
NAVATHA KARNATI
VIJAYA SEKHAR VELLANI
SATYANARAYANA MURTHY PYDI
VIBHA JAIN
GENERAL MANAGER (BUSINESS DEVELOPMENT AND LOGISTICS):
KRISHNA
ASSISTANT GENERAL MANAGER(LOGISTICS):
PRABHAKAR

M.MURALI

ROLE OF PORT DEPARTMENT

he export and import of various commodities.

afe Entry and berthing of vessel

Discharging of Cargo

Warning the ships of all imminent dangers such as cyclones depressions, etc.

ssue of instructions and guidelines to mariners for safe passage of ships.

Benefits to the Nation:-

Derive the revenue to the nation such as customs duty, excise duty, etc.

Reduce pressure on road and rail.

aving the consumption of fuel.

Avoid traffic congestion

Reduction of air pollution

Reduction of Environmental problems

ncrease in employment.

:: DUTIES OF OFFICERS OF THE PORT DEPARTMENT


1. Director of State Ports.
Director of State Ports is the Head of the Port Department and the Marine Advisor to the
Government of Andhra Pradesh and exercises administrative control over the conservancy of all
the Minor and Intermediate Ports in the State. The Director of State Ports is the Intermediate
Authority to control the Conservators of Ports appointed in G.O.Ms.No. 132, P.W.D., dated 281-1970. He is also the Agent for Andhra Pradesh Government Consignments and Government
Surveyor. The Development and Improvement works at all the State Ports, consistent with need
and trade at the Ports, is the responsibility of the Director.
2. Port Officers
Port Officers are the Conservators of the Ports as per Section 7 of Indian Ports Act, 1908.
The Main functions and duties attached to the Port Officers are as follows: -

10.
11.
12.
13.
14.
15.

They shall be the registering officers under the Andhra Pradesh State Ports Harbour Craft
Rules, 1980.
They shall be the inspecting officers under sub-section (1) of section 238 and 287 of the
Indian Merchant Shipping Act, 1958.
They shall be the Shipping Masters as per the provisions of the Indian Merchant Shipping
Act, 1958 and the instructions received from time to time from the Merchantile Marine
Department shall be followed.
They shall be the Inspectors under section (6) of the Employment of Children Act, 1938.
They shall be the Agents to the receiver of the Wrecks.
They shall be the drawing, disbursing and Controlling Officers for the Staff working
under them and the Staff of the Ports under their jurisdiction. (Vide G.O.Ms.No. 345,
P.W.D., dated 22-3-1969 and G.O.Ms.No. 679, P.W.D., dated 12-6-1975.
They shall be the Chairman of the Port Advisory Committee originally created in
G.O.Ms.No. 1646, P.W.D. dated 26-9-1970 and extended from time to time.
They are required to frequently examine the light apparatus and navigational aids at the
Ports and be responsible for their efficient up-keep and maintenance. They are also
required to make annual inspection of the Ports under their jurisdiction as well as the light
houses of the Port Department situated therein and be responsible for their efficient upkeep.
They shall inspect the V.H.F/R.T. Stations at the Ports frequently and be responsible for
its maintenance.
They are responsible for looking in to the dredging requirements at the Ports.
The Mechanical Engineer and Dredging Superintendent shall carry out of the
dredging work in close coordination with the Port Officers. A dredging programme
shall be drawn up annually by the Port Officers and Mechanical Engineer and
Dredging Superintendent and implemented as per requirements and availability of
funds.
They shall allot the departmental launches and tugs at the Ports to the Shipping interests
upon their requisition and collect revenues thereon at the prescribed rates.
They shall control and regulate all the boat traffic within the Port limits in accordance
with the Harbour craft rules and ensures safe navigation.
They shall allot the Port lands on annual licence system for Marine Purposes collecting
the prescribed rate of revenues thereon.
They shall allot the Port godowns and transit sheds to the Shipping interests for Marine
purposes upon requisition by them and collects the revenues thereon at the prescribed
rates.
They shall attend to pilotage duties as and when introduced and whenever specially
ordered to do so by the Director of State Ports.
They are responsible to collect revenues, various items of Port Charges, as per the rules
and regulations in force, from time to time and shall ensure that the revenues so collected
are remitted into the Treasury promptly and within the time limits prescribed under rules
to the appropriate heads of account of State Government and also to see the proper
accounts for collection as well as remittances etc., are maintained and proper receipts are
issued to the parties from whom revenues are collected and be responsible for the regular
maintenance of the Cash Book.

3. The Port Officers shall be the subject to the control of the Intermediate
G.O.Ms.No. 82, P.W.D., dated 20-1-1971 made under rule 7 (iv) of

the Indian

Authority, who is the Director of State Ports, Andhra Pradesh Kakinada as per
Ports Act, 1908.

3. Superintending Engineer (Marine)


He is responsible for the administrative control of the Engineering wing of the Andhra Pradesh Port Department and maintaining the Port Infrastructure with the
assistance of 3 Executive Engineers.

4. Executive Engineer (Marine) Kakinada and Machilipatnam


He is responsible for the Administrative Control of the Division and the Sub-Divisions at
Kakinada and Machilipatnam ports. The Executive Engineer (Marine) is responsible for the
execution of all Civil Works both Capital and maintenance at all the Minor and Intermediate
Ports of Andhra Pradesh State unless ordered otherwise by the Director of State Ports.
He is in charge of all the Civil structures of the Andhra Pradesh Port Department.

It is the duty of the Executive Engineer (Marine) to inspect Civil Works in his Division, to
satisfy himself that the system of management is efficient and economical, that the regulations
as regards works stock and accounts are strictly observed and that the executive and
Administrative work of the division is satisfactorily performed.
The Executive Engineer (Marine) is responsible that proper measures are taken to preserve all
the Marine structures and works in his Division. He must keep accurate plans for all Port lands
in his Division and ensure that his subordinates are acquainted with the boundaries. All lands
should be demarcated, wherever it has not been done and this work should be carried-out by the
subordinates of the Divisions in consultation with the Port Officers concerned.
The Executive Engineer (Marine) should immediately report to the S.E. (Marine), any serious
loss of immovable property caused by any accident or unusual occurance.
Executive Engineer (Marine) is prohibited from commencing any work or expending any public
funds, without the sanction of competent authority or from making any other than trifling
deviations from sanction designs in the course of execution, except in case of emergency.
Immediately on a work being finished, it will be the duty of the Executive Engineer (Marine) to
close the accounts of it and to prepare the completion report.
The Executive Engineer (Marine) will submit his accounts punctually to the audit office under
the rules in force and will exercise efficient control over his Divisional Account. The Executive
Engineer (Marine) is responsible for the correctness of the original records of cash and stores,
receipts and expenditure, and for the submission of complete vouchers. The Divisional
Accountant is responsible for the correct compilation of the accounts from the data supplied to
him.
The Executive Engineer (Marine) is responsible that the accounts of his Division are not allowed
to fall into arrears, but if arrears or confusion arises which in his opinion can not be cleared
without the assistance of Accountant General, he should at once apply for such assistance.
The Executive Engineer (Marine) has a right to seek the advices of the Accountant General in all
matters connected with the accounts of his division or the application of financial rules and
orders concerning which there may be any doubt. It is usually be desirable, however, that he
should first obtain the advice of the Divisional Accountant who is specially trained for this duty,
and this should be done in writing in all cases of importance.

. The Executive Engineer (Marine) is responsible that the surveying and mathematical
instruments in his division are properly cared for, and will report on their condition to the
Director of State Ports at the end of each working season. Any injury to the instruments due to
neglect or carelessness should be made good at the expense of the officer or subordinate
responsible for the damage.

. The Executive Engineer (Marine) is the drawing, disbursing and controlling officer for the staff
working under him (G.O.Ms.No. 345, P.W.D., dated 22-3-1969 and G.O.Ms.No. 679, dated 126-1975).

. The Executive Engineer (Marine) shall exercise the powers vested with relevant codal
provisions as may be amended from time to time. He is vested with the same powers as the
Executive Engineers of Public Works Department.
5. Executive Engineer (Mechanical) Kakinada.
He is responsible for administrative control of the Mechanical Division and the Sub-Division at
Kakinada besides the Electrical staff allotted to this division, and the Port Workshops at
Kakinada and Machilipatnam. He is responsible for the execution of all Mechanical works both
capital and maintenance of all the Minor and Intermediate Ports of Andhra Pradesh State unless
ordered otherwise by the Director of State Ports. He is in-charge of all the floating craft and
mechanical installations of the Port Department.
He is vested with the same powers as the Executive Engineers of Public Works Department and
shall exercise the powers vested within the relevant codal provisions as may be amended from
time to time.

He has to maintain the floating crafts of the department in good and seaworthy condition.
He has to arrange dredging programmes in consultation with the respective Port Officers. He has
to ensure that maximum out-put is maintained by the most economical methods.
He has to be in-complete charge of the Departmental Port workshops and ensure their proper
maintenance etc.
He is responsible for purchases and maintenance of the Marine Stores and proper maintenance
of accounts etc. within relevant codal provisions.
He should immediately report to the S.E. (Marine) any serious loss of moveable and immovable
properties caused by any accident or unusual occurrence.
He will submit the accounts punctually to the audit office under the rule in force and will
exercise efficient control over the Divisional Accountant.
He is responsible for the correctness of the original records of cash and stores, receipts and
expenditure and submission of complete vouchers. The Divisional Accountant is responsible for
correct compilation of accounts from the date supplied to him.

. He is responsible that the accounts of his division are not allowed to fall into arrears, but if
arrears or confusion arises which in his opinion can not be cleared without the assistance of the
Accountant General, he should at once apply for such assistance.

. He has a right to seek the advice of the Accountant General in all matters connected with the
accounts of his division or the application of financial rules and orders concerning which there
may be any doubt. It will usually be desirable, however, that he should first obtain the advice of
the Divisional Accountant who is specially trained for this duty, and this should be done in
writing in all cases of importance.

. He is responsible that the surveying and mathematical instruments in his division are properly
cared for, and will report on their condition to the S.E. (Marine) at the end of each working
season. Any injury to the instrument due to the neglect and carelessness should be made god at
the expense of the officer or sub-ordinate responsible for the damage.

. He is the drawing, disbursing and controlling officer for the staff working under him.
(G.O.Ms.No. 345, P.W.D., dt., 22-3-1969 and G.O.Ms.No. 679 dated12-6-1975.).
6. Labour Officer and Personal Assistant to the Director of State Ports.
This Officer is generally deputed from the State Labour Department and of the Cadre of District
Labour Officer. He shall be directly under the control of the Director of State Ports and be
responsible to him for the administration of Port Department, and assist the Director of State
Ports in all matters of administrative nature.
He is responsible for attending to all labour problems arising at any of the Minor and
Intermediate Ports of Andhra Pradesh and deal with such matters for obtaining amicable
settlement, in consultation with the respective Port Officer and if necessary, with the Director of
State Ports

:: CARGO HANDLING
CARGO SPECTRUM
Kakinada Anchorage Port:
Imports:

Murate of Potash
Rock Phosphate
Industrial Salt
Urea
Crude Palm Oil
Exports:

Rice
Wheat
Maize
Soya bean Meal
Soya bean Retraction
Rice bran Extraction
Sand
Cement
Kakinada Deep Water Port
Imports:

Edible Oils
POL (Naphthalene, HSD, SKD, Furnace Oil)
Chemicals (Phosphoric Acid, Sulphuric Acid)
Gases (Ammonia)
Dry Cargo (Wood Pulp, Machineries) Project Cargo
(ODCS and heavy lifts)
Exports:

Cement Clinker
Minerals (Bentonite, Feldspar)
Lighterage:
Crude Oil.

Year

No. Of Ships

Cargo (In Lakh Tonnes)

2000

255

15

2001

318

18

2002

508

18

2003

571

35

2004

555

56

2005

1,176

105

2006

1,343

128

2007

1,398

122

2008

2,142

126

2009

3,755

145

2010

2,876

119

2011

2,174

108

:: REVENUE EARNINGS
REVENUE DERIVED

Kakinada Anchorage Port

Year

Amount (In Crores)

2000

6.34

2001

4.03

2002

3.01

2003

7.04

2004

4.56

2005

5.66

2006

10.96

2007 - 08

20.00

2008 - 09

16.88

2009 - 10

11.31

2010 - 11

16.37

Kakinada Deep Water Port

Year

Amount (In Crores)

2000

11.00

2001

16.00

2002

4.50

2003

7.75.

2004

14.29

2005

17.03

2006

EXPORTS
1. Aluminium Roofing Sheets
2. Bentonite
3. Cement
4. Cement Clinker
5. Cigarettes
6. Construction Material
7. Cotton Seed Extractions
8. Cotton Seed Meal

9. Crude oil (Coastal)

40. Sand

10. Crushe bones, harms, hoofs

41. Sesame Cake Extractions

11.Feldspar

42. Sesame Seed Extractions

12. Fibre

43. Soap Needles

13. Fish Meal

44. Sorghum

14. Fruit Jam

45. Soya bean Extractions

15. Fruit Juice

46. Soya bean Flakes

16. Ground nut Extractions

47. Soya bean Meal

17. Ground nut Kernal

48. Stone Dust

18. Ground nut Meal

49. Steel Pipes (Galvanised)

19. Illepe Extractions

50. Sugar

20. Illuminated Sand

51. Sunflower Extractions

21. Iron Ore

52. Sunflower Seed

22. Machine Tools

53. Sunflower Seed Extractions

23. Maize

54. Tea

24. Mango Kernal Extractions

55. Tipiaca Chips

25. Mango Kernals

56. Tobacco

26. Mica

57. Topiaca dried Chips

27. Onions

58. Turmeric

28. Organic Manure

59. Wheat

29. Palm Kernal Extractions

60. Wheat Bran

30. Palmyrah Fibre

61. Wheat Flour

31. Paper

62. Yellow Corn

32. Rape Seed Extractions

63. Yellow Maize

33. Rape Seed Meal

64. Organic Manure

34. Red Chillies

65. Project Material

35. Rice
36. Ricebran Extractions
37. Salseed Extractions
38. Salseed Extractions (Dollet)
39. Salseed Pellets

IMPORTS

1. Ammonium Sulphate

2. Cement

3. Crude Palm Oil

4. D.A.P

5. Fertilizer of all kinds

6. H.P.K

7. Industrial Salt

8. L.P.G

9. M.O.P

10. N.P.K.

11. Palm Kernals

12. Peas

13. Potassium Chloride

14. Rape Seed

15. Raw Rice Bran

16. RBD Palmolein

17. Rice

18. Rock Phosphate

19. Solar Common Salt

20. S.O.P

21. Soyabean Seed

22. Sugar

23. Sulphate of Potash

24. Sunflower Oil

25. Tea

26. Urea

27. Wheat

:: FUTURE DEVELOPMENTS
PROPOSALS FOR DEVELOPMENT OF KAKINADA ANCHORAGE PORT
The Anchorage Port under control of Government of Andhra Pradesh is handling at present about 2.0 Million Tonnes of Cargo per annum. The Port has requisite backup
infrastructure such as Wharves/Jetties, Transit Sheds Open stack yards and other amenities like Water and Power supply, Road and Rail links.
The revenue earnings of the Port are mainly from Port dues, L&S dues. Registration and Renewal fees from steel barges/fishing boats. Rentals on departmental godowns, T.
Sheds and Port lands. To enhance the revenue of the Port Department, the existing cargo handling capacity of the Port has to be increased. For this, various measures are to be
taken up.
To know the exact measures to be taken up for enhancing the cargo handling capacity of the Port and there by its revenue, it is necessary to critically analyse existing
infrastructure so as to suggest steps to be taken up.

For this a detailed project report on the existing infrastructure and steps to be taken up for
enhancing the cargo handling capacity is to 3.5
Million tones is presented in detail as below :

DEVELOPMENT PROPOSALS FOR ANCHORAGE PORT TO HANDLE 3.5 MILLION TONNES PER ANNUM

I. STATUS OF WHARVES :
(A.) BURMAH SHELL WHARF
1. Length of the Wharf

: 100 Mts.

2. Year of Construction

: Not known (Appx. 50 years back)

3. Type of Construction

: Design particulars not known, R.C.C. piled structures


with hard surfaced backup area.

4. Status of Wharf

: Manual operations

5. Type of cargo handled

: Exports (baggage):- Rice,Wheat, Maize, Rice bran, Cement, Soya beans, Sugar,

6. Present pattern of allotment Wharf to

: Allotment is based on first come first serve.

shippers

7. Problems in Mechanical

: Due to pressure from shippers handling Mechanical


handling was permitted since 1995 by placing steel
plates

underneath

the

proclainers

for

uniform

distribution of load up to safe limits. Inspite of all


precautions, the area adjacent towharf sunk by about
40Cms. Hence, Mechanical operations stopped and at
present manual operations are going on.
8. Extent of availability of stacking area behind

the Wharf

9. No. of barges can be andled on this Wharf

: 3,000 Sq.Mts. of hard surfaced area.


: 3 Barges of 400 T. capacity can
simultaneously.

be handled

10. Rate of handling manual

: 10 Hours/barge of 400 T.

11. How to improve the efficiency

: The wharf is used at present for

export cargo by

manual means. For using the wharf for import cargo,


the wharf is to be

strengthenedand following

measures are to be dopted for

mproving cargo

fficiency.
- By Introducing Mechanical operations.
- By Constructing five loading platforms of size 32 Mts. x 8 Mts. each.
- By Increasing the backup area for stacking the cargo.
If import cargo is permitted the following cargo can be handled :
Urea,DAP
(Diammonium Phosphate), MOP (Murate of Potash),Industrial Salt, Rock Phosphate.

(B). NEW PORT AREA WHARF


1. Length of the Wharf

: 613 Mts.

2. Year of Construction

: The Wharf Constructed in different spells starting from 1970 to 1985 as a part of development
scheme under plan grant.

3. Type of Construction

: The Construction of Wharf

comprised driving of continuous

RCC interlocking sheet piles

driven upto (-) 8.95 Mts. These piles have been anchored by means of anchor piles. The area
behind the Wharf is filled up with the sea sand, gravel and hard surfaced at the top.

4. Status of Wharf

: The Wharf is designed to take a surcharge load of 2 T./M. and thereby its usage is restricted
to the manual operations upto 14 Mts. Behind the Wharf. Rest of

the area in between the

Railway siding and Wharf is to be used for movement of trucks.

5. Type of cargo handled

: (a) Exports (By Manual) Rice,


loading

Maize, Rice bran, Cement,

platform Sand.

(b) Imports - At loading Platforms


Industrial Salt
6. Present pattern of allotment of Wharf to

shippers

WheaT, Soya bean. At

Urea, MOP ( Murate of Potash)

DAP (Diammonium Phosphate)

Rock Phosphate,

Potassium Chloride.

: Based on the availability, on first come first serve


basis, and as per shippers requirement.
: As the 14 M. long backup areabehind the wall could

7. Problems in Mechanical handling

not

take the load beyond 2 T/M.,

the facility is

restricted to manual operations only nd the proclainers


are not permitted because of its limitations to operate
heavy machines on it. To overcome this difficulty and
to increase the rate of handling the argo by mechanical
means, three umber of platforms

were onstructed

during 12/2002 pposite to T-Sheds A, B & C long the


Wharf Wall in New Port rea.
8. Stacking area behind the Wharf

: Stacking of any materials are not allowed behind the Wharf up to 14 Mts. Beyond 14 Mts. the
area available is being used for plying of lorries for loading and unloading of cargo to barges
as well as to railway wagons and Transit sheds.

9. No. of barges can be loading handled on

thisWharf

: In the area available for three platforms. 3 Barges can be handled at a time for imports. In
the rest of the area, 14 Nos. of barges can be handled at a time for Imports /Exports.

10. Rate of handling


11. How to improve the efficiency

: (a) Manual - 10 hours / barge of

400 T.

(b) Mechanical 5 hours / barge

of 400 T.

: - By introducing Mechanical

operations.

- By constructing three additional

loading platforms of size

32 Mts. x 8 Mts. each.

12. Limitations

: At present most of the cargo handled in New Port Area is export cargo. The export cargo are
Rice, Maize, Wheat, Soya Bean, Cement, Rice Bran. These
The baggaged Crgo are handled

cargoes are baggaged cargoes.

by manual. import cargoes such as

Rock Phosphate,

Industrial Salt, Fertilizers are bulk cargoes, and these cargoes cannot be handled in New Port

Area, where already

baggaged cargoes are handled so

to prevent contamination of

ediblecargo.

(C). MATTI POOL WHARF


1. Length of the Wharf

: Two wharves of length 44 M. and 27 Mts.

2. Year of Construction

: Not known (Appx. 50 years back)

3. Type of Construction

: Design particulars not known, R.C.C. piled structures with hard surfaced backup area

4. Status of Wharf

: Manual operations

5. Type of cargo handled


6. Present pattern of allotment of Wharf to

: Mostly Import Cargo - Rock phosphate and Industrial Salt.


shippers

7. Problems in Mechanical handling

: Allotment is based first serve basis


: Wharves were constructed long back, Technical designs are not available. In the absence of
technical details, safety of the structure cannot analysed for allowing mechanical operations.

8. Stacking area behind the Wharf

: 5,000 Sq.Mts. of hard surfaced area.

9. No. of barges can be handled on this Wharf

: 3 Barges of 400 T. capacity

10. Rate of handling

: 10 Hours/barge

11. How to improve the efficiency

: - By introducing Mechanical

can handled simultaneously.

- By constructing three loading

operations.
platforms of size

32 Mts. x 8 Mts.each.

12. Limitations

: The area falls out side ISPS Compound Wall. For developing this Wharf separate Perimeter
Wall is to be constructed.

:: OUR VISION
The minor ports of Andhra Pradesh Port Department handled 15 Million
Tonnes of Cargo during 2005 and is the 2 nd Highest Cargo handling State in
Union India.
The A.P. State has prepared a perspective development plan in its vision
2020 document for development of Ports according to which 50 Million
Tonnes of Cargo by 2009 and 173 Million Tonnes of Cargo by 2020 is
programmed to handle

Granite Blocks
We are query owners' representative in Karimnagar. Karimnagar is world famous for Granite

Blocks- Tan Brown Colour, Maple Red Colour, Black Colour. You are most welcome to visit India along

with your Geologist/ Marker. We offer fresh Granite Blocks infront of you from our mines and friend mines. We also give maximum allowance up to 20 cm in cubic meter. Karimnagar is 150 km from Hyderabad. From
Hongong to Hyderabad it is 6 hours journey on flight, If you are interested to buy our blocks, Our representative will come and escort you from Hyderabad airport till Karimanagar hotel. We can also arrange Chinese
food, Chinese translation and other facilities. We make your Hotel, mine visit, selection of blocks, transportation from mine to Kakinada port, export formalities, loading on the ship and other work for you. Regular
vessels of PUY VASH, GST etc.., are available from Kakinada to Xiamen and Shibu ports. Our rates are cheaper by 10-20% than your local prices of similar Blocks.

The
southern India holds a major market share of granite blocks exports to China, Taiwan, Japan and Italy and out of the total
volume china takes about 80%.
Out of 1.5 million tons per year to the far eastern ports, 1.2 million tons are handled by A.S.SHIPPING as break-bulk cargo.
Customized infrastructure with all mechanical devices have been created by the company at Ongole in Andhra Pradesh to
efficiently handle the orerations.
With regard to Export of Granite Blocks to various destinations, A.S.Shipping AgenciesPrivate Limited, has Stockyards at the
following places viz., Surareddy Palem Railway yard, A.P., Numbal Granite Stockyard, Chennai, Dockyard inside Chennai
Harbour, Granite Stockyard at Visakhapatnam, A.P. & the Granite Stockyard at Kakinada Deep Sea Port, A.P.
Our Customer's can choose their nearest Stockyards, whereby they can cut down on their Transportation, handling and the
most important being the time saved with respect to Transportation of Rough Blocks from Quarries to the Stockyards for
Export.
Movement of Granite Blocks are also carried out through Railway Wagons from Surareddy Palem & Karim Nagar to Chennai
& Kakinada Ports.
Total logistic support is provided to our customers from the mines to the final destination.
Our services include loading and unloading at the mine site, road/rail transportation, loading of cargo into the ship and ocean
freight forwarding to the destination from chennai.
To destinations like Bangkok, Port Kelang, Shangai, Northern Europe and Australia, where break-bulk service is not feasible,
granite blocks are containerised and moved.
To containerise the blocks, equipments with exclusive facilities have been created at our chennai CFS and we handle about 600
teus per mont

Break Bulk Liner

We are the Agents in India for Gen Shipping Pacific Pte


Ltd., based in Singapore.

A Fleet of Seven Multipurpose Ships of 18500 DWT are


operational and they are Fitted with Heavy Gear to
handle up to 120 MT Lifting Capacity.

We can handle any Type / Volume of Cargo ranging


from Rough Granite Blocks, Crates, Skids, Bales,
Bundles, either in Packed or in Unpacked Condition.

All the Vessels are fitted with TWEEN-DECK to facilitate


the handling of Over Dimension Cargo.

Export

We Export Granite
Blocks on behalf of
Shippers in Break
Bulk to Far-East Ports
like XIAMEN,
HONGKONG,
SHIHU, etc., Granite
Blocks are exported
by us through other
line vessels also to
MARINA DI
CARRARA,
ANTWERP,
HUALIEN,
PASAJES, VIGO and
other European Ports.
More than 90% of
Granite Blocks which
are exported to FarEast Countries are
only through us.

Apart from Chennai


we are arranging
shipments of Granite
Blocks from
Kakinada & Vizag

ports also. At Chennai


Port our vessels are
available thorough
out the year for
shipment.

On an average
10,00,000 MT of
granite blocks are
exported as Break
Bulk Cargo through
us.

On an average we
handle 6000
containers of Granite
Blocks in a year.

Apart from the break


bulk services, we are
also providing C&F
agency for shipment
of Granite Blocks and
Granitefinished
Products which are
containerized &
Exported to all
destinations of the
world.

Granite Yard

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Next >>

Product Specification
In order to cater to the varied requirements of our valued patrons, we have constructed a capacious Granite Yard. This yard is constructed in segmented form so as to
ensure a safe and categorical arrangement of granite stone. Furthermore, we have installed various hi-tech machines in our yard to load and transport large blocks of
stone in an efficient and safe manner. Additionally, our Granite Yard is constructed in compliance with all set regulations of this field.

Features:

Highly spacious

Sophisticated machines

Segregated construction

Act Stock Yard

Next >>
Product Specification
We have developed a highly capacious Act Stock Yard. This yard is constructed in segregated form so as to ensure that sourced act stock is stored in an
organized manner. We also make sure that our yard has all required safety guidelines. This is done to make sure that material as well as our working
personnel remain in safe condition. Adding to this, we have installed some highly sophisticated machines in our Act Stock Yard so as to transit the material in
safest possible manner.

Graniet Loading

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Next >>

Product Specification
Founded in the year 1996, we are one of the most reputed organizations engaged in rendering Graniet Loading service. These
services are offered by our professionals in accordance with set regulations of this domain. We have been following all prevailing
safety policies while rendering these services. Other than this, we use optimum grade hi-tech machines to execute these services. In
order to attain utmost satisfaction of our patrons, we have been executing Graniet Loading service at highly competitive price

Exports are key to the economic survival of a nation

. Exports not only help a country earn

foreign exchange, they help create jobs, peace, prosperity, and the power to influence.

To be successful in exporting and importing, it helps to know why so many export and import
businesses do not succeed. Success cannot be rushed by high hopes. Rather, it comes
incrementally.
The success of an export business is often attributed to luck. Work harder and there wilExports
l be more
luck. The export success of Taiwan, China, Japan, South Korea, Germany and other exports countries
not a miracle, it is the result of hard work. The business miracle will not happen
without working hard. However, success cannot be rushed by hard work.
The events in a large number of export offices worldwide are comparable to the events in a
football game. It is not unusual to see colleagues kicking responsibilities back and forth, just like
football players do the ball. It is important that employees' responsibilities are clearly spelled out
and that systems of operation are flexible in order to accommodate the rapidly changing needs of
world markets.

Dangers of Imbalance in International Trade

Trade surplus
deficit

--- favorable balance of trade

--- unfavorable balance of trade

---is an excess of exports over imports.


Trade
---is an excess of imports over exports. In layperson's

parlance, the trade surplus means earn more and spend less, while the trade deficit means spend
more and less.
The trade surplus and deficit is analogous to one person's fortune is another person's misfortune.
The danger is imminent in either situation. A country with a record trade surplus is often
threatened with sanctions and trade barriers from a deficit-ridden importing country. A country
with a record trade deficit is usually faced with the internal social upheaval.
The imposition of trade barriers, such as import quotas and higher duties, is
meeting the international challenge. The trade barrier will be confronted with a trade retaliation.
A trade retaliation will be faced with a counter-retaliation. The conflict will not end if an
agreement is not reached. The remedy to beat the trade imbalance is to understand foreign
cultures and business practices, and to provide competitive products and services.
It is a good practice to diversify export markets. Concentrating exports to only a few markets
poses imminent
usually
imposes
people
can
invites
sanctions,
be devastating.
protectionist
danger
the effect
to an
trade
toexporting
thelaws
economy
from
country.
the
of the
importing
Too
exporting
much
country.
export
country
In
concentration
case
and the
thelivelihood
importing
in a market
of
country
its

a solutionnot
to

PORT CHARGES at KAKINADA ANCHORAGE PORT


LANDING FEES
Sl.No.

Commodity

Unit of Charges

Rates Fixed Rs. Ps.

(1)

(2)

(3)

(4)

Fertilizers all kinds in bags or bulk

M.Tons

29.00

Rock Phosphate in bulk

M.Tons

29.00

Cement in bags/Cement Clinker

M.Tons.

23.00

Rice in bags or bulk + sugar

M.Tons

29.00

Articles or goods not specifically enumerated in the M.Tons

29.00

schedule

(other than

passengers

&

Seamens

baggage, ship provisions and stores)


6

Canal Borne cargo and/or passengers

Boat load

69.00

Timber or Bamboos in rafts (canal borne traffic)

Rft. Of 10 Sq.m or part thereof 69.00

Liquified Petroleum Gas

1 CM

132.00

Steel Pipes

1 CM

35.00

10

Crude Oil

1000 Lts

69.00

SHIPPING FEES
Sl.No.

Commodity

Unit of Charges

Rate Fixed Rs. Ps.

(1)

(2)

(3)

(4)

Iron Ore, Manganese Ore, Ferro Manganese Slag, Barytes M.Tons

23.00

Quartz, Gypsum, Pig Iron and all other ores in bulk


2

Feldspar,

M.Tons

29.00

Granite Stones/Blocks

M.Tons

35.00

Coal

M.Tons

29.00

Coking Coal, Lam Coal, Steam Coal

M.Tons

29.00

Thermal Coal

M.Tons

29.00

Rice Bran, Crushed bines, Horns, Hoofs, Palmyra Fiber

M.Tons

29.00

Groundnut Kernels

M.Tons

29.00

Rice in bags or bulk

M.Tons

29.00

10

Articles or goods not specifically enumerated in the schedule M.Tons

29.00

(other than passengers & Seamens baggage, ship provisions


and stores)
11

Illuminated sand

M.Tons

25.00

12

Tobacco

Advalorem

0.12%

13

Canal Borne cargo and/or passengers

Boat Load

69.00

14

Timber or Bamboos in rafts (canal borne traffic)

Rft. Of 10 Sq.m. or69.00


part thereof

CHAPTER -5
EXPORT DOCUMENTATION AND PROCEDURE and its

analysis

Analysis patttern:
The nature of the project is of the subjective nature so for the analysis of the available data, the
use various statistical and mathematical and graphical techniques was not required. There were
no additional statistical and technical tool were considered for suitability of the procedure &
problem in order to achieve the desire objective. The study was of the qualitative aspect not the
quantitative. All the data was collected through interviews a secondary data so not tool were used

Chapter-6

INTERNATIONAL COMMERCIAL TERMS

EXW

Ex Works

FAS

Free Alongside Ship

FCA

Free Carrier

FOB

Free On Board

CFR

Cost and Freight


(The former acronym of Cost and Freight was

CIF

Cost, Insurance and Freight

CIP

Carriage and Insurance Paid To

CPT

Carriage Paid To

DAF

Delivered At Frontier

DDP

Delivered Duty Paid

DDU

Delivered Duty Unpaid

DEQ

Delivered Ex Quay

DES

Delivered Ex Ship

Incoterms
published by

or

international commercial terms


International Chamber of Commerce

C&F

are a series of international sales terms,

(ICC) and widely used in international

commercial transactions. They are used to divide transaction costs and responsibilities between
buyer and seller and reflect state-of-the-art transportation practices

Group F Main carriage unpaid

FCA Free Carrier (named place)


The seller hands over the goods, cleared for export, into the custody of the first carrier
(named by the buyer) at the named place. This term is suitable for all modes of transport,
including carriage by air, rail, road, and containerized / multi-modal transport.
FAS free alongside Ship (named loading port)
The seller must place the goods alongside the ship at the named port. The seller must
clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for
maritime transport only.
FOB

Free on board

(named loading port)

The seller must load the goods on board the ship nominated by the buyer, cost and risk
being divided at ship's rail. The seller must clear the goods for export. Maritime transport
only. It also includes Air transport when the seller is not able to export the goods on the
schedule time mentioned in the letter of credit. In this case the seller allows a deduction
of sum equivalent to the carriage by ship from the air carriage.
Group C Main carriage paid

CFR or CNF Cost and Freight (named destination port)


Seller must pay the costs and freight to bring the goods to the port of destination.
However, risk is transferred to the buyer once the goods have crossed the ship's rail.
Maritime transport only.
CIF Cost, Insurance and Freight (named destination port)
Exactly the same as CFR except that the seller must in addition procure and pay for
insurance for the buyer. Maritime transport only.
CPT Carriage Paid To (named place of destination)
The general/containerized/multimodal equivalent of CFR. The seller pays for carriage to
the named point of destination, but risk passes when the goods are handed over to the
first carrier.
CIP Carriage and Insurance Paid (To) (named place of destination)
The containerised transport/multimodal equivalent of CIF. Seller pays for carriage and
insurance to the named destination point, but risk passes when the goods are handed over
to the first carrier.
Group D Arrival

DAF Delivered At Frontier (named place)


This term can be used when the goods are transported by rail and road. The seller pays
DES eDelivered
for transportation
customs
passing
Ex
ofclearance
Ship
risk occurs
(named
to and
the
atport)
the
named
pays
frontier.
place
for transportation
of delivery at from
the frontier.
the frontier
The buyer
to his
arranges
factory.
for The

Where goods are delivered ex ship, the passing of risk does not occur until the ship has
arrived at the named port of destination and the goods made available for unloading to
the buyer. The seller pays the same freight and insurance costs as he would under a C IF
arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but
also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading
the goods and any duties, taxes, etc are the Buyer. A commonly used term in shipping
bulk commodities, such as coal, grain, dryfor chemicals - - and where the seller either owns
or has chartered, their own vessel.
DEQ Delivered Ex Quay (named port)
This is similar to DES, but the passing of risk does not occur until the goods have been
unloaded at the port of destination.
DDU Delivered Duty Unpaid (named destination place)
This term means that the seller delivers the goods to the buyer to the named place of
destination in the contract of sale. The goods are not cleared for import or unloaded from
any form of transport at the place of destination. The buyer is responsible for the costs
and risks for the unloading, duty and any subsequent delivery beyond the place of
destination. However, if the buyer wishes the seller to bear cost and risks associated with
the import clearance, duty, unloading and subsequent delivery beyond the place of
destination, then this all needs to be explicitly agreed upon in the contract of sale.
DDP Delivered Duty Paid (named destination place)
This term means that the seller pays for all transportation costs and bears all risk until the
goods have been delivered and pays the duty. Also used interchangeably with the term
"Free Domicile".The most comprehensive term for the buyer. In most of the importing
countries, taxes such as (but not limited to) VAT and excises should not be considered
prepaid being handled as a "refundable" tax. Therefore VAT and excises usually are not
representing a direct cost for the importer since they will be recovered against the sales
on the local (domestic) market.

age

Chapter-7
Suggestions& Conclusion

Suggestions
The management has to look after and assign tasks to its employees from time to time so that things
may move faster
The Organisation may provide training and development programs for the existing employees
to develop professional skills and talents
The Organisation has greater scope for increasing its exports by exporting more quantities.

Conclusion
The Organisation is however successful in carrying on its business operations. It marked improvement
in its performance over the years. There is even greater scope for expanding its trade activities making a
remarkable excellence in its field of business. It has been proved to be successful in achieving its
objectives and fulfilling its functions effectively.

Chapter-8
Bibliography

Bibliography
1. Information taken from the web sites of :
KAKINADA Seaports ( www.kakinadaseaports.in)
ANDHRA PORTS (www.andhraports.com)
2. Manual of Export Documentation by P.Veerareddy & P. Mamatha
[ Commercial Law Publications India Private Limited ]
3. Export Policy, Procedures & Documentation by M.I.Majan
[ Snow White Publications Private Limited ]

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