A

SUMMER TRAINING PROJECT ON

“COMPELETE OPERATION IN COSCO SHIPPING LINE

(INDIA) PRIVATE LIMITED”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

MASTERS OF MANAGEMENT STUDIES

OF

UNIVERSITY OF MUMBAI

SUBMITTED BY

MUHAMMAD KAMRAN NALKHANDE

SECOND YEAR OPERATIONS

ROLL NO:171227

UNDER THE GUIDANCE OF

PROF: BIMAL KUMAR EKKA

PILLAI INSTITUTE

OF

MANAGEMENT STUDIES AND RESEARCH.

PANVEL
 DECLARATION

I hereby declare that the Summer Internship Project Report, prepared by me under the guidance
of PROF. BIMAL KUMAR EKKA, is a bona fide work undertaken by me and it is not
submitted any other University or Institution for the award of any degree / diploma / certificate
or published any time before. I also declare that the report is free of any plagiarism.

NAME: MUHAMMAD KAMRAN NALKHANDE

ROLL NO: 171227 SIGNATURE OF THE STUDENT

 CERTIFICATE OF APPROVAL

This is to certify that the summer internship project titled “COMPELETE OPERATION IN
COSCO SHIPPING LINE (INDIA) PRIVATE LIMITED” is successfully completed by
MR. MUHAMMAD KAMRAN NALKHANDE during Semester III, in partial fulfilment of
the Master's Degree in Management Studies recognized by the University of Mumbai for the
academic year 2018-19 and represents the work done at “COSCO SHIPPING LINE (INDIA)
PVT. LTD”.

This project work is original and has not been submitted earlier for the award of any degree /
diploma or associateship of any other University / Institution.

Name: PROF. BIMAL KUMAR EKKA

Date: __________ ____________

(Signature of the Guide)
 ACKNOWLEDGMENT

Successful completion of any work would be incomplete unless we mention the

name of person who made it possible, whose guidance and encouragement served
as a beckon of light and crowned my efforts success.

I own my profound gratitude to professor. BIMAL KUMAR EKKA for helping

me during the project and providing me valuable insights. Their timely help and
encouragement helped me to complete this project successfully.

I thank CAPT.S.K. CHUGH (Chief EXECUTIVE Officer) for giving me

opportunity to work with COSCO SHIPPING (INDIA) PRIVATE LIMITED
as an operations management trainee.

I am thankful to HARISH BANGERA (manager operations) & MR. ADNAN

KHAN (Asst. Manager Operations) for their encouragement and able guidance
at every stage of my training work.

I am also thankful for all those persons who directly or indirectly helped me
during the project report.
 EXECUTIVE SUMMARY

This project is about my internship program with COSCO shipping line (India) private limited.
In this project I have discussed about every major operations activity of shipping line, which I
observed and perceived during my internship program.

In the first part of project, the general information of the company has been collected. In the
first part I have also state industry and company analysis. Information is gathered through from
primary and secondary sources.

In the second part of project, contains the specialized subject study. Objective of this project is
to work with shipping line operations department to learn all shipping line activity.

during my internship program, I mainly work in COSCO operations department located at

Nhava Shava near JNPT. All the shipping operations related activity and procedure have been
discussed in details.

As the main purpose of this internship is to learn by working in practical environment and to
apply the knowledge acquired during the studies in the real-world scenario in order to tackle
the problem using the knowledge and skill learned during the academic process, in this report
details analysis of the activity and procedure has been done and all the documentation required
to submit by shipping line to various port authorities are mentioned.

This project report covers mostly cover all important aspect which are basically related with
the operations aspect of shipping line.

In the end learning and experience section consists of all the feedback and details which I have
learned during my internship programme.

This report also contains my perception about choosing shipping line filed as a career.
 TABLE OF CONTENTS

PAGE
SR.NO TOPIC
NUMBER
PART A
1 INTRODUCTION TO THE PROJECT 1
2 BRIEF COMPANY PROFILE 2
3 INDUSTRY ANALYSIS 8
4 COMPANY ANALYSIS 16

PART B
5 INTRODUCTION 26
6 METHODOLOGY 27
7 OBSERVATION 49
IDENTIFICATION OF CRITICAL ISSUES
8 50
OR PROBLEM AREAS IF ANY
9 CONCLUSION 51
10 REFRENCES 53
11 ANNEXURES 54

PART C
LEARNING AND TAKRAWAY 57
 PART A

1. INTRODUCTION TO THE PROJECT

According to the Ministry of Shipping- government of India around 95 per cent of trade volume
and 70 per cent of trade value is done through water transport.

India has 12 major and 200 notified minor and intermediate ports. Under the National
Perspective Plan for Sagarmala, further six new mega ports will be developed in the country.
Sustaining the growth of trade and commerce, water transports the most important goods
carrier. India is the sixteenth largest maritime country in the world, with a coastline of about
7,517 km. The Indian Government plays an important role in supporting the ports sector. It has
allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for
port and harbour construction and maintenance projects.

There are many shipping companies in the world. Around 212 shipping companies are listed
at JNPT. Among them include Maersk, MSC, COSCO and CMA CGMA.

COSCO is the 3rd largest shipping company in the world based in China. It has around 8%
share in shipping business. Among its 267 destination ports, JNPT is one of them.

This project intends to

 Understand the operations of COSCO from Nava Shava port including import
(berthing) and export (sailing) procedure.
 Understanding the role of Vessel Planner in the port
 Understanding the statutory requirement for the above procedure.

1
 2. BRIEF COMPANY PROFILE
2.1. COSCO SHIPPING LINES (INDIA) PRIVATE LIMITED

COSCO Shipping Lines (India) Pvt. Ltd., are the General Agents of China COSCO Shipping
Corporation Ltd., Shanghai. COSCO Shipping Lines (India) Pvt. Ltd., has been operating in India
for around 25 years. COSCO runs its operations through the Head Office in Mumbai; whereas
regional offices in strategic locations in Kolkata, New Delhi, Tuticorin, Chennai, and Cochin
ensure a continuous follow up with customers.

COSCO India offers a worldwide container service via a network of 18 different services from
main Indian ports which are in turn supported by various ICD’s in different states in India.
COSCO services include: China, Australia/Oceania, Middle East/Gulf, South East Asia, Africa,
Mediterranean and Black Sea, Europe and the Americas totaling to around 300 shipping
routes.

COSCO employ 165 keen and dedicated staff in sales, customer service, operations and
finance as well as in IT development. COSCO management team, headed up by the MD, Capt.
Chen Shao Lin, is very dynamic offering leadership and support to the COSCO teams.

COSCO Shipping Lines (India) Pvt Ltd practices COSCO’s worldwide corporate culture of “one
team, one culture, one target and one dream” which is pivotal to COSCO being “more large-
scale, more globalized, more competitive and more valuable’. This enables COSCO India to
bring into full play the advantages of COSCO global shipping network, resources and
management collaboration as well as insisting on a customer-oriented strategy, constantly
elevating the operation and management ability, thus contributing towards COSCO’s
development into a world’s leading shipping enterprise with international competency.

COSCO mantra is to grow in the maritime industry by providing value added services to
customers thus enhancing competitiveness in their logistics.

2
 COMPANY PROFILE

China COSCO Shipping Corporation Limited, also referred to as the China COSCO
Shipping Group or China COSCO Shipping, is a Chinese business conglomerate and state-
owned enterprise headquartered in Shanghai. The group is engaged in a variety of business
sectors, with a focus on integrated logistics, shipping, finance services, and equipment
manufacturing. The company was formed by the merger of the COSCO Group and the China
Shipping Group in January 2016. The merger was precipitated by an ongoing downturn in the
containerized-ocean-freight and break-bulk shipping industries that stymied the profits of both
groups and motivated them to unite and endure the decline together. The merged entity is
composed of several business clusters each of which is managed by one or more subsidiaries.
Its core business cluster is container, dry-bulk, and petroleum transport services.

After merger COSCO becomes the world’s third-

largest container shipper, with a market share of
roughly 8.1 percent. That would be behind only AP
Moeller-Maersk and Mediterranean shipping
company.

As of 2016, the group's total fleet size ranks first globally, comprising 1114 merchant vessels
and a total capacity of 85.32 million DWT. The dry-bulk shipping division ranks first globally,
self-owning 365 vessels with a total capacity of 33.52 million DWT. The container shipping
division; which is called COSCO Shipping Lines, has a capacity of 1.58 million TEU, making it
fourth in the world. Moreover, COSCO Shipping Lines aims to expand its fleet size to over 2
million TEU by 2018, which would make it the third-largest container line in terms of total
capacity.
3
 HISTORY

On January 2016, the Chinese State Council approved the merger of COSCO Group and China
Shipping Group, effectively forming China COSCO Shipping.

An ongoing downturn in certain sectors of the merchant marine industry which began in 2013
and that was caused by a multitude of factors such as weak global GDP, sluggish trade, vessel
overcapacity, bloated retail inventories in the United States, and reduced demand for container
shipping, eroded ocean-going cargo carriers' profits and triggered a wave of mergers and
acquisitions. The overlapping businesses of both COSCO and China Shipping naturally
fostered degrading competition between the two groups, and with the effect created by
unfavorable market conditions, both companies were left financially anemic. Thus, it was a
logical decision for the two groups to consolidate and endure the downturn as a unified entity.
Furthermore, the Chinese Governments' reorganization of the obsolete structural format of its
state-owned enterprise system is also attributable to this and other Chinese mergers.

According to some sources and analysts familiar with the matter, the merging process and
transitional phase has frustrated many customers, resulting in a temporary dent in profits.

4
 2.3. SIZE OF ORGANIZATION

Company Name: COSCO SHIPPING LINES COMPANY LIMITED

Date of Foundation: November 11, 1997

Legal Representative: Huang Xiaowen

Major business: International and domestic container transport by sea. The operating fleet
has 312 container vessels and the shipping capacity amounts to 1,650,000 TEUs.

Full-owned subsidiaries and joint ventures: The Company has 50 full-owned subsidiaries and
joint ventures (excluding other sub-filiale companies with indirect interest), including 34
domestic subsidiaries and 16 overseas subsidiaries

Location of the headquarters: No. 378, Dongdaming Road, Shanghai, China

Coverage of business: Since the reorganization, the Company has established marketing and
service outlets across the globe. In China, we have 9 port companies and 154 outlets based in
Dalian, Tianjin, Qingdao, Shanghai, Ningbo, Xiamen, South China, Hainan and Wuhan.
Elsewhere in the world, we have set up 69 outlets in North America, Latin America, Europe,
Southeast Asia, Hong Kong, Japan, South Korea, West Asia and Africa to create a globally
operated container transport network of integrated services providing customers with
complete, high-quality “door to door” transport solutions.

Company type: Sole proprietorship

The distribution of shipping routes and capacity: The east-to-west main routes centered on
China, North America and Europe, the secondary routes supported by Japan, Australia,
Persian Gulf / Red Sea, Africa, South America and South East Asia, and the feeder

routes in China, South East Asia, Europe and America. In 2015, the Company recruited no new
container ships. In 2015, 11 19,000-TEU

container ships were ordered. By December 31 of 2015, the Company had an order book of
21 container ships with a total capacity

of 326,960 TEUs.

Total number of staff: 18,222 employees (14,118 in China and 4,104 overseas) and 6,613 all
kinds of labor workers (2,132 on land and 4,481 onboard).

Income from major business: RMB 66,533,172,796.06 Yuan

Total carrying capacity: 16,902,790 (TEUs)

Significant business changes: Since the merger, the number of self-owned ships has increased
from 178 to 312

5
 BUSINESS AREA

Logistics Industrial Business Cluster

 Shipbuilding
 Ship repair
 Offshore equipment manufacturing

Shipping Finance Industrial Cluster

 Ship chartering
 Container leasing

Shipping Services Industrial Cluster

 Freight transport
 Ship fuel supply
 Shipping technology research and development
 Ship management

Internet & Business Cluster

 Information technology

6
 2.4. VISION OF THE COMPANY
COSCO SHIPPING International aims to build world-class, the leading shipping services
industrial cluster in China and oversees and a non-financial business investment platform
that meets the investment needs of COSCO SHIPPING Group in strategic and major
development areas, with the goal of “larger scale, stronger profitability, superior anti-
cyclical capability and globalization”, through well-established businesses in Hong
Kong, to set foothold on the Bay Area, and develop globally.

MISSION OF THE COMPANY

By virtue of the support of the parent company and leveraging on the capital raising platform
of a Hong Kong listed company, and by securing trustworthy and win-win collaboration and
relationship with customers, investors and business partners, COSCO SHIPPING LINE
(INDIA) PVT.LTD. Will accomplish its vision and sustainable development, so as to provide
customers with better services, offer staff with a better career prospects, increase shareholders’
return, and make more contribution to the community.

CORE VALUE OF THE COMPANY

1. Professionalism – Fostering a team of experts with strong dedication and devotion as

direction, so as to win high credibility from customers, investors, shareholders and
business partners.
2. Integrity & Credibility - Upholding integrity as the core value with well-established code
of ethics, to enhance corporate reputation and recognition.
3. Responsibility – Pursuing sustainable development with focus on four areas including
safety, environmental protection, employee engagement and social responsibility, in
order to safeguard and balance the interests of all stakeholders.
4. Learning – Advocating a learning-oriented team and encouraging innovative thinking,
to achieve mutual benefits for both corporate development and employee personal
growth.
7
 3. INDUSTRY ANALYSIS

3.1. PESTEL
POLITICAL FACTORS THAT IMPACT ON COSCO SHIPPING LINE
Political factors play a important role in determining the factors that can impact COSCO
shipping Line’s long-term profitability in a certain country. COSCO shipping line is operating
in Shipping in more than 85 countries and expose itself to different types of political
environment and political system risks. The achieve success in such a large Shipping industry
across various countries is to diversify the systematic risks of political environment. COSCO
shipping lines can analyse the following factors before entering or investing in a certain market-

 Political stability and importance of Shipping sector in the country's economy.

 Bureaucracy and interference in Shipping industry by government.
 Trade regulations & tariffs related to Services.
 Taxation - tax rates and incentives.
 Industrial safety regulations in the Services sector.

ECONOMIC FACTORS THAT IMPACT COSCO SHIPPING LINES

The Macro environment factors such as – savings rate, inflation rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. COSCO shipping line can use country’s economic factor
such as growth rate, inflation & industry’s economic indicators such as Shipping industry
growth rate, consumer spending etc to forecast the growth trajectory of not only --sector name-
- sector but also that of the organization. Economic factors that COSCO shipping line should
consider while conducting PESTEL analysis are –

 Type of economic system in countries of operation – what type of economic system

there is and how stable it is.
 Government intervention in the free market and related Services
 Exchange rates & stability of host country currency.

8
  Efficiency of financial markets – Does COSCO shipping line needs to raise capital in
local market?
 Infrastructure quality in Shipping industry
 Comparative advantages of host country and Services sector in the particular country.
 Skill level of workforce in Shipping industry.
 Education level in the economy
 Labour costs and productivity in the economy

SOCIAL FACTORS THAT IMPACT COSCO SHIPPING LINE

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
at COSCO shipping line will understand the customers of a given market and how they design
the marketing message for Shipping industry consumers. Social factors that leadership of
COSCO shipping line should analyse for PESTEL analysis are -

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the COSCO shipping line industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

TECHNOLOGICAL FACTORS THAT IMPACT COSCO SHIPPING LINE

Technology is fast changes various industries across the board. Transportation industry is a
best case to illustrate this point. Over the last10 years the industry has been transforming really
fast, not even giving chance to the established players to cope with the changes. Shipping
industry is now dominated by players like maersk and MSC.

9
A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts –

 Recent technological developments by COSCO shipping line competitors

 Technology's impact on product offering
 Impact on cost structure in Shipping industry
 Impact on value chain structure in Services sector
 Rate of technological diffusion

ENVIRONMENTAL FACTORS THAT IMPACT COSCO SHIPPING

LINE

Different markets have different environmental standards which can effects the profitability of
an organization in those markets. Even within a country often states can have different
environmental laws and liability laws. For example in United States – Texas and Florida have
different liability clauses in case of mishaps or environmental disaster. Similarly, a lot of
European countries give healthy tax breaks to companies that operate in the renewable sector.

Before entering new markets or starting a new business in existing market the firm should
carefully analyse the environmental standards that are required to operate in those markets.
Some of the environmental factors that a COSCO shipping line should consider beforehand
are-

 Weather of the area

 Climate change and other climate related condition
 Laws regulating environment pollution
 Air and water pollution regulations in Shipping industry
 Recycling
10
  Waste management in Services sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

LEGAL FACTORS THAT IMPACT COSCO SHIPPING LINE

In number of countries, the legal framework and institutions are not robust enough to protect
the intellectual property rights of an organization. A firm should carefully evaluate before
entering new markets as it can lead to theft of organization’s secret sauce thus the overall
competitive edge. Some of the legal factors that COSCO shipping line leadership should
consider while entering a new market are –

 Anti-trust law in Shipping industry and overall in the country.

 Discrimination in law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

11
 3.2. PORTER’S FIVE FORCES ANALYSIS FOR THE
SHIPPING INDUSTRY

1. THREAT OF NEW ENTRY

Shipping industry is quite profitable as cargo has to move across the world but issues involved
in setting up a shipping company are large capital investments in the form of vessels, operating
risk of a vessel and the cargo availability.

Shipping Industry has following characteristics:

 High capital requirement

 Profit margin is high.
 Chance of expansion into new sector is less.
 Government restriction is less as industry is globally driven

Capital requirement of the shipping industry is very large, so the threat from the new entrants
is less. As the capital is very large the profit is also too high in shipping industry. Because all
exporters and importers know the best mode of transport for their goods is the shipping line.
Most of the countries’ main economy evolves from the shipping industry. So the government
will give full support for the new entry.

Overall threat of the new entry is moderate to high.

12
2. THREAT OF SUBSTITUTION
Substitution threat is the result of change in buyer behavior towards competitor or against
company. Substitution may also result due to change in quality of service, increase in freight
rates and increase in transit time. It may affect the company to certain extent as they have to
start new search of customer, establish strong relations and educate them on company policies
and systems. Switching costs increase more at times of downturn due to decrease in supply of
business from customers.

In case due to the delay of service or quality become poor and at the same time the freight rates
are also similar, then the customers will switch on to the new substitutes. If the oil price shoots
up then the company is forced to increase their transportation charges. Due to the increased
rates in shipping and delayed timing to reach the destination on time, customers will go for the
substitutes like airline, or even trucks or goods train[within the country]. If the airline or goods
train or trucks can almost cost the same rates of the shipping companies but can reach on time
then customers will think for such substitutes.

In this present world people won't compromise for anything. If they are not satisfied by the
service they will jump to other substitutes who can give better rates and services.

 Availability of the substitutes is high.

 Price of substitutes is high.
 Quality and performance of the substitutes is high.
 Switching cost is high.

Overall threat of substitutes is moderate to high.

13
3. BARGAINING POWER OF SUPPLIERS
Suppliers barely make any difference to companies involved in shipping line business,
especially to the dominating shipping companies. While it may affect to certain extent to small
players who are struggling to establish within the industry. Suppliers provide fuel oil, lube oil,
fresh water, paints, repair services etc. to the shipping companies. The bargaining power can
be summarized as follows:

 Number of the suppliers is high.

 Price factor of the suppliers is high.
 Profit of the supplier is less.
 Switching cost of the supplier is high.
 Operating cost is high.

Overall bargaining power of suppliers is low.

4. BARGAINING POWER OF BUYER

Buyer is one of the strongest factors in shipping line business. Buyers may be in form of
importer or exporter, clearing agent, freight forwarder or manufacturer of goods.

Shipping business is based on two main core factors price and quality of service. Price refers
to freight rate at which one container is decided by shipping company to transport from one
place to another. Due to much competition in this sector bargaining power of buyer has
increased in relation to freight price. The bargaining power of buyer is summarized as follows:

 Numbers of the customers are high.

 Switching cost is low.
 Customer's information and awareness is less.
 Customer's ability to demand is high.
 Freight forwarders and clearing agents are high.

14
Number of customers is high in this field due to the export and import of goods from different
parts of the world. But the similar price and quality will lessen the attractiveness. Customer's
ability for demand is high, because operators are in threat of losing customers. Switching cost
of customers is low because of more number of operators.

Overall bargaining power of Buyers/customers is high.

5. COMPETITIVE RIVALRY/ COMPETITIVE ENVIRONMENT

Rivalry exists in every field and it is part of the day to day businesses. It is sometimes bad
because companies have to share hard earned profits with competitors and sometimes goods
because it gives opportunities to one company to stand in line with another in terms of quality
of service, business strategy, job satisfaction etc. The competitive rivalry can be summarized
as follows:

 Number of competitors is high.

 Industry growth is high.
 Competitor's move to new customer is low.

Number of competitors is high in shipping industry, because of the thought that the profit
margin very high in this industry. Industry growth is high, so the chance of exit from the
industry is less. Competitor's move to new customers is very low because of the non-awareness
of their profile.

Overall competition in the industry is high.

15
 4.COMPANY ANALYSIS

4.1. SWOT ANALYSIS

STRENGTHS OF COSCO WEAKNESS OF COSCO

 High attrition rate in work force

 Superb Performance in New Markets
 There are gaps in the product range sold
 Reliable suppliers
by the company
 Strong distribution network
 Financial planning is not done properly
 Good Returns on Capital Expenditure
and efficiently.
 Strong Free Cash Flow  Not highly successful at integrating
firms with different work culture.

OPPORTUNITIES FOR COSCO THREATS COSCO FACING

 Intense competition
 Stable free cash flow provides  Rising pay level
opportunities to invest in adjacent  Changing consumer buying behaviour
product segments.  Shortage of skilled workforce

 New technology

 Economic uptick and increase in

customer spending

16
STRENGTH OF COSCO SHIPPING LINE

 Superb Performance in New Markets – COSCO has built expertise at entering new
markets and making success of them. The expansion has helped the organization to
build new revenue stream and diversify the economic cycle risk in the markets it
operates in.
 It has a strong base of reliable supplier of raw material thus enabling the company to
overcome any supply chain bottlenecks.
 Over the years COSCO has built a reliable distribution network that can reach majority
of its potential market.
 Good Returns on Capital Expenditure – COSCO is relatively successful at execution of
new projects and generated good returns on capital expenditure by building new
revenue streams.
 Strong Free Cash Flow – COSCO has strong free cash flows that provide resources in
the hand of the company to expand into new projects.

WEAKNESS OF COSCO SHIPPING LINE

 High attrition rate in work force – compare to other shipping company in the industry
COSCO has a higher attrition rate and have to spend a lot more compare to its
competitors on training and development of its employees.
 There are gaps in the product range sold by the company. This lack of choice can give
a new competitor a foothold in the market.
 Financial planning is not done properly and efficiently. The current asset ratio and
liquid asset ratios suggest that the company can use the cash more efficiently than what
it is doing at present.
 Not highly successful at integrating firms with different work culture. As mentioned
earlier even though Maersk is successful at integrating small companies it has its share
of failure to merge firms that have different work culture.

17
OPPORTUNITIES FOR COSCO SHIPPING LINE

 Stable free cash flow provides opportunities to invest in adjacent product segments.
With more cash in bank the company can invest in new technologies as well as in new
products segments. This should open a window of opportunity for COSCO in other
product categories.
 Stable free cash flow provides opportunities to invest in adjacent product segments.
With more cash in bank the company can invest in new technologies as well as in new
products segments. This should open a window of opportunity for COSCO in other
product categories.

 Economic uptick and increase in customer spending, after years of recession and slow
growth rate in the industry, is an opportunity for COSCO to capture new customers and
increase its market share.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable
credit at lower interest rate to the customers of COSCO.

THREATS COSCO FACING LINE

 Intense competition – Stable profitability has increased the number of players in the
industry over last two years which has put downward pressure on not only profitability
but also on overall sales.

 Rising pay level especially movements such as $15 an hour and increasing prices in the
China can lead to serious pressure on profitability of COSCO.
 Changing consumer buying behaviour from online channel could be a threat to the
existing physical infrastructure driven supply chain model.
 Shortage of skilled workforce in certain global market represents a threat to steady
growth of profits for COSCO in those markets.

18
 4.2. 7S FRAMEWORK

STRATEGY
Focusing on the implementation of four core strategies to enhance the international
competitiveness and improve operating performance.

Optimize the shipping routes and network allocation, to implement the globalization
strategy

 To establish a globalized network layout and an alliance operation system that adapt with
the shipping capacity so as to achieve the OCEAN Alliance’s service advantages in east-
west trunk routes and provide new momentum for global trading.

 To capture strategy opportunities, such as the “One Belt One Road” and “Yangtze River
Economic Belt” to improve performance in emerging market and third-country routes.

19
Enhance service capabilities and improve customer experience
 To insist on being customer-centric, demand-oriented, reliant on global resources in
providing customers with customized services in order to meet their diversified
demands.

 To strengthen the construction of marketing team, improve customer experience.

Accelerate to realize synergies

 To strengthen cost control and explore in depth the potential synergy of the
optimization of shipping route network layout, container management, and supplier
procurement.

20
Further improve the capability to provide one-stop solutions to customers.

 To strengthen the capabilities in one-stop transportation solutions and the seamless

articulation with highways and railways so as to further enrich and improve the service
model and provide customers with more choices and convenience.

 To create more intermodal transportation products, strengthen the status of Piraeus as hub
port.

21
STRUCTURE
All senior managers of the Company have tried to manage the Company in accordance with
provisions of the Appendix 14 General Rules on Corporate Governance of the Stock Listing
Rules of HKEx and the Shanghai Stock Exchange’s Evaluation Methods on Information
Disclosure Work of Listed Companies (revised in 2015). They also tried to improve
governance measures of the company continuously, ensure the establishment and
implementation of proper business supervision and management procedures, and conduct
regular inspection on these procedures, so as to perform the Company’s obligations to the
shareholders.

To ensure fulfillment of the strategic targets, the Company establishes a cautious governance
structure in accordance with the modern enterprise system. The shareholders’ meeting is the
supreme decision-making institution of the Company. The Board of Directors is the decision-
making institution of the company and features the functions for management of strategic
decisions. The Supervisory Board is the supervision institution of the Company and undertakes
dual supervision functions, namely supervision of the board of directors, and supervision of
the management team. The Board of Directors has six special committees under its affiliation,
which play active roles in prevention and control of operation risks and law- compliance risks
in decision-making process of the board. The governance structure of the Company is as
follows:

22
SYSTEMS

COSCO SHIPPING International adopts a people-oriented development strategy, which poses

equal treatment on its staff independent of their genders, religions, races, nationalities or
political stances. In its recruitment policy, it clearly states that the ability, technical skills and
professional knowledge are the principles for employment. This ensures that the applicants and
the employees have same opportunity and fair treatment in recruitment, appointment,
promotion, appraisal and remunerations, etc.

SKILLS

The organisation only works with professional who have made their mark in the industry; as
representatives, they can present company very well. Employees are expected to know the
exact guidelines issued by the Ministry of shipping and how to integrate them into the daily
shipping activity.

STAFF

In addition to skills, it is also important that the staff knows what their responsibilities are and
dare to take it. COSCO shipping lines always higher efficient and skill staff to work in COSCO
professional environment.

STYLE

The organisation lead by passionate pioneer and has a friendly and open atmosphere right from
the beginning. As a leader, he considers it important that work is done according to procedures
and legislation, but everyone can further determine their own goals and are thus self-governing.
This creates a pleasant working environment and a good mutual understanding.

SHARED VALUES

Employs are friendly to one another within the organisation, birthdays are celebrated with cake
and a small gift. The employs are always remaining top priority, both in and outside the office.

23
4.3. VALUE CHAIN FOR COSCO SHIPPING LINE

PRIMARY ACTIVITY

OPERATION
COSCO shipping line operates in more than 100 countries, either in the form of direct
company-owned office or with licensees. COSCO have its operations offices nears ports, to
handle the operations activity smoothly. COSCO handle its own operation(most shipping
company out sources there operation), to provide best service to its customers.

MARKETING AND SALES

COSCO invests more in superior and high level of customer service than in aggressive
marketing. However, need-based marketing activities are carried out by the company during
new service launches. COSCO marketing and sale team have highly professional and talented
manpower.

24
SERVICE

COSCO aims at building customer loyalty through ' customer service. The main objective of
COSCO is, as it says in its annual report, “to be the leading services provider in each of
our target markets by providing the finest quality shipping service and related activity , and by
providing each customer a unique COSCO Experience.”

SUPPORT ACTIVITIES

INFRASTRUCTURE
This includes departments like management, finance, legal, etc., which are required to keep the
company’s offices operational. COSCO well-designed and pleasing offices are complemented
with good customer service provided by the dedicated team of employees in professional
environment.

HUMAN RESOURCE MANAGEMENT

The committed workforce is considered a key attribute in the company’s success and growth
over the years. COSCO employees are motivated through generous benefits and incentives.
The company is known for taking care of its workforce, a key reason for a low turnover of
employees, which indicates great human resource management. There are many training
programs conducted for employees in a setting of a work culture which keeps its staff motivated
and efficient.

TECHNOLOGY DEVELOPMENT

COSCO is very well-known for use of technology, not only for shipping services but to connect
to its customer for any other assistances regarding shipment. COSCO have its own online
software for tracking the container. COSCO Equipment Control Department just put container
number in software and get all information about the particular container.

25
Part B

EXPERIENTIAL LEARNING PROJECT

5. INTRODUCTION

5.1. OBJECTIVE OF STUDY

The main objective of studying this topic

 Obtaining daily export inward from terminal website

 Filing and issuing form 13 entry pass for containers
 Coordinating with chef vessel stowage planner for stowage planning
 Filling import general manifest with costumes authority
 Preparing and submitting import and export advance list to port authority and
terminal
 Submitting documents for vessel birthing with port authorities
 Obtaining port clearances certificate for vessel sailing
 Obtaining rotation number form ice-gate for vessel birthing

5.2 EXPECTED BENEFIT

The primary benefit should be to get to know how shipping line handle its operation in JNPT
port. Then secondary objective and benefit would be to learn and observe how shipping line
coordinate with ports and its terminal for smooth flow of work. Other benefit would be to learn
and observe how shipping company coordinate with off-shore vessel master and chef. For
stowage planning and lastly and it will help me to grow in my particular field.

5.3LIMITATION OF STUDY

The major disadvantage of this project is time, as per the Mumbai university guide line time
allotted is short to learn whole shipping line operation. Shipping line is very big sector, 80%
of transport done with the help of water way. There are many activity handles by operation
department so its not possible to learn everything within two months.

26
 6.METHODOLOGY
IMPORT EXPORT FLOW CHART

UNIT DISH.FM VSL

IN THE TERMINAL

UNIT MOVED FM
TERMINAL TO CFS/
DPD

TUNIT PLACED IN
THE CFS/DPD
CSTMR. PRMSS

KUNIT MOVED FM UNIT D/STUFFED

CFS FOR FACTORY IN CFS
D/STUFG (D/DSTUFFING)

D/STFG

UUUNIT RECIVED NMTY UNITS

BY CNGEE TO MYT MOVING TOWARDS
DEPOT MTY DEPOT

UUNIT PICKED UP UNIT PICKED BY

BY SHPR FOR SHPR. FOR
FACTORY STFFING F/STUFFING

OLDD. UNIT LLDD. UNIT DATED

GATED IN IN TERMINAL FOR
TEMINAL FOR EXPORT
EXPORT CCNTR.
ONBOARD ON
THE VESSEL
27
 6.1. IMPORT/EXPORT PROCEDURE AND LIST PREPARED
DURING OPERATION

EXPORT PROCEDURE

1. Customer approaches shipping line to book a shipment.

2. Shipping line issue DO (Delivery Order) to customer as per booking.
3. Customer pick up container from empty depo.
4. Customer will file VGM (Verified Gross Mass) and apply for from 13 through ODEX
(Online document exchange).
5. On behalf of shipping line surveyor verify the request received from customer and
release form 13.
6. container is gated in by shipper and shipping bill are handover to shipping line
operation office.
7. Container is planned on vessel as per POD (Port Of Delivery).

EXPORT ADVANCES LIST (EAL)

Export advances list contain all information of container which are going to export on particular
vessel. Export advance list prepare as per vessel vices.

Step for preparing export advance list.

1. Operation department prepare excel file with help of form 13.

2. Operation department send export advance list to customer services (CSU) to cross
check POD as per booking release.
3. After verification customer services will send back export advance list to operations
department.
4. Operations department now prepare export advance list in terminal prescribed
format and re-check all information.
5. After verifying EAL is prepared as per terminal format and forwarded to concern
VOA or terminal directly in case of own vessel.

28
IMPORT PROCEDURE

1. Departure EDI received from last port for Nava Shava discharge containers.
2. Import arrival notification to be sent to import department along with partners.
3. EDI received from partners needs to be marge and filed with Indian customs.
4. IAL (Import Advance List) is received from partners which is finally merged all
together and verified with actual discharge list.
5. IAL/ROB EDI is sent to terminal for import finalization. In case of any discrepancy
terminal revert and it need to be resolved before vessel berthing.

29
 6.2 ETHNOGRAPHIC STUDY
6.2.1. COSCO SERVICE ROUTE FOR NAVA SHEVA

Service means trading route of the vessel. Every vessel operates in particular service.

COSCO operate in 10 services from Nava Sheva operation office. Following are the services
which are offer by COSCO and handle by operation department located at Nava Sheva.

IGI INDIAN GULF IRAN SERVICE

GEM 2 GILF-EAST MEDITERRANEAN SERVICES

AIS ASIA INDIAN SUBCONTINENT SERVICES

CI 1 CHINA INDIA SERVICES 1

CI 2 CHINA INDIA SERVICES 2

MINA MEDITERRANEAN-INDIAN SERVICES

EUROPE PAKISTAN INDIAN CONSORTIUM
EPIC 1 SERVICES 1
EUROPE PAKISTAN INDIAN CONSORTIUM
EPIC 2 SERVICES 2

CISC CHINA IN INDIA SUBCONTINENT SERVICES

ASX ARABIAN SEA EXPRESS SERVICES

30
 NHAVA SHEVA TERMINALS
There are 5 terminals in JNPT port. Every terminal has different terminal code. COSCO vessel
berth on terminal as per services vise.

TERMINAL NAMES COSCO TERMINAL CODE

NHAVA SHEVA INTERNATIONAL NVA01

CONTAINER TERMINAL

JAWAHARLAL NEHRU PORT TRUST NVA02

GATEWAY TERMINAL INDIA NVA03

NHAVA SHEVA INTERNATIONAL NVA04

GATEWAY TERMINAL

BHARAT MUMBAI CONTAINER NVA05

TERMINAL

TERMINAL AND COSCO SERVICES

TERMINAL NAME COSCO SERVICES

NSICT/NSIGT EPIC1

JNPT AIS/CI2/CISC/IGI

GTI MINA/CI1/ASX/GEM2

BMCT EPIC2

31
6.2.2. CONTAINERS
Shipping container is a large standardized metal box, designed to build for freight transport.
these containers can be used in different modes of transport-from ship to rail to truck. Shipping
company use container to store and transport consignment efficiently and securely in
international and domestics market. In others words containers designed to be moved one mode
of transport to another without unloading and reloading.

6.2.3. TYPES OF SHIPPING CONTAINERS

STANDARD/DRY STORAGE CONTAINERS
Standard containers are most commonly used containers in the shipping line. Standard
containers are also known as general purpose containers. Standard containers are closed
containers they are closed on all sides and have doors at one or both ends.
Standard/dry containers different size and dimension. Usually standard containers come in 4
sizes.

TYPE OF STANDARD CONTAINER

32
REEFER CONTAINER
Reefer container is short form of refrigerated container. In reefer container consignee or shipper
can control or maintain temperature during transport. Usually in reefer containers the
temperature is mostly lower than outside temperature. Refrigerated units keep temperature
lower in any weather condition.

Reefer container’s come in different size and dimension, usually the come in three different
sizes.
TYPE OF REEFER CONTAINER

33
OPEN TOP CONTAINER
Open top container is similar in all respect to a standard container except that it has no rigid
roof but may have a flexible and moveable cover or sheet on to over the top of the container.
Open top container usually used to carry bulk or heavy bulky finished product, which loading
and handling can only be done with the help of cranes.

TYPE OF OPEN TOP CONTAINER

34
FLAT RACK CONTAINER

Flat rack containers have only two side and has no top. This make more space for heavy loads
to be set on the track from above and from the side. Flat rack containers are especially suitable
for heavy loads and cargo that needs carrying and loading from the top or sides, such as
machinery pipe and automobiles.

Flat rack containers are made from steel for the durability. Flat rack are available in two size
20 ft and 40ft length, flat rack are ideal for carrying over dimension and odd size cargo.

35
6.3. VESSEL OPERATION

6.3.1. VESSEL BERTHING

Vessel berthing required many documentations. Shipping line have to submit many important
documents in various port authority for vessel berthing. Shipping line have to submit
documents before berthing the vessel.

 REGISTRATION OF THE VESSEL WITH PORT COMMUNITY

SYSTEM (PCS)
If vessel berthing first time on Indian port, shipping line/agent have to register vessel
with customs.
Shipping company have to submit 14 important and compulsory document for vessel
registration with port community system (PCS)
Shipping line need to provide following documents to PCS for vessel registration.

1. Certificate of Registry
2. Tonnage Certificate
3. International Ship Security Certificate
4. P & I (Protection and Indemnity)
5. Safety Management Certificate
6. Certificate of Class
7. Documents of Compliance
8. International Oil Pollution Prevention Certificate
9. Load Line Certificate
10. Latest Port State Control
11. Safety Construction Certificate
12. Safety Equipment
13. Safety Radio
14. Ship Sanitation Control Exemption Certificate

36
 ROTATION NUMBER/ VIA NUMBER (VESSEL IDENTIFICATION
ADVICE)
Rotation number is allotted to vessel/ship by customs authority, to indicate the ship turn
to berth for loading and/or discharging. In simple words port authority, especially the
customs issue the unique identification number to a vessel to indicate its turn for
berthing for loading or unloading.

To simplifying the process to generates “rotation number for vessel” a facility has been
developed on online web-portal by customs known as ICE-GATE, for online
application and self-generation of rotation number by shipping line.
For self-generation for rotation number, shipping line must have register with ICE-
GATE using shipping lines digital signature would have an option “rotation number
generation” on the ICE-GATE user menu.
Shipping line need to provide following details in the web-form for generation of
rotation number.

1. Customs Location Code (LOCODE)

2. IMO Code of the vessel

3. Voyage Number

4. Master’s Name

5. Shipping Line Code

6. Shipping Agent Code

7. Next Port of Call

8. Expected Date of Arrival of vessel

After submission of the above details and authentication by the user/shipping line using
a one-time password (OTP), the Rotation Number would be generated by the system.
The user/shipping agent also has option to check the status of Rotation in the system
under secure login. For other visitors, a ‘Rotation Number Inquiry’ option would be
made available on the ICEGATE website.

37
 LIGHT DUES

Light dues are collected from ship/vessel entering or leaving the country’s port by the
customs authority on behalf of the department of lighthouse. Light due collected to
maintain and build light house and it services. Light dues calculated on total tues
capacity of vessel.

Light dues have validity of a month. After paying lights dues vessel

 INCOME TAX

Income tax collected from shipping line before birthing of vessel. Income tax also
calculated on the total tues capacity of the vessel.

38
 6.3.2. MARINE FORMALITIES

The mercantile Marine Department (MMD) function under the directorate general of
shipping, ministry of shipping. Shipping line have to submit few documents in marine
department before birthing of vessel.

Shipping line need to provide following documents to Mercantile Marine Department.

GENERAL DECLARATION
General declaration contains all information regarding vessel. General declaration is most
import documents for vessel berthing. Vessel master email general declaration to shipping line
agent, shipping agent submit general declaration in marine department to harbour master.

PORT OF CALL
Port of call means an intermediate stop for a vessel on its scheduled journey for unloading and
loading of cargo. In other words, a port visited by a ship among others on a voyage. Shipping
agent has to submit port of call details to harbour master.

PRE-ARRIVAL NOTIFICATION OF SECURITY (PANS)

Pre-arrival notification has to be provided by vessel master for security reasons. Pre-arrival
notification is also important documents which has to be full filed by vessel or shipping agent
for birthing of the vessel.

39
 6.4. VESSEL SAILING

Vessel sailing required many documentations. Shipping company have to submit few
documents in custom and marine departments for sailing of vessel.

Shipping line need to provide following documents to custom for vessel sailing.

 PORT HEALTH CERTIFICATE

Port health certificate issued by port health officer, port health certificate also called
certificate of health inspection. This certificate contains health condition of vessel crew
member.
 IMMIGRATION CLEARANCES CERTIFICATE
Immigration clearances certificate is very important document for sailing of vessel.
Immigration clearances certificate issued by the immigration officer. Immigration
certificate contain all detail regarding vessel including master name, its birthing time
and crew list.
 PORT CLEARANCES (PC)
Port clearances is document which shipping agent got after submitting all the pre-
berthing document to customs.
For obtaining port clearance from customs required following documents.
1. Covering letter
2. Port clearance copy (02)
3. Request application
4. Load line certificate
5. Safety radio certificate
6. Ship registry
7. Light dues receipt copy
8. Income tax NOC
9. Port dues copy

40
 6.5. STOWAGE PLANNING
Stowage planning is at the heart of containers vessel operation. The quality of stowage planning
affects the performance of a voyage significantly. Stowage planning is highly complex and
requires a huge deal of manpower, which can be tedious and time consuming.

Today’s most shipping companies have their own stowage planning department that prepare
stowage plan for coming vessel. stowage plans and securing crew and containers is still vessel
master responsibility but companies stowage planner can be great assistance and to vessel
planner.

Stowage planning is to determining where containers should be loaded onto a vessel to allow
for the optimal load and discharge of that vessel. It should take into account considerations for
the ports in the rotation, the number of ports in the rotation, the correct segregation of the cargo,
the number of cranes required, and the overall vessel stability.

41
6.5.1. TO PREPARE A PRE-STOW PLAN THE FOLLOWING
INFORMATION IS ESSENTIAL:
1. The intended load and discharge port rotation.
2. The complete cargo specifications, including all cargo description, weight and overall
dimensions, special handling instructions, hazardous classifications and deck option.
3. Total details of all heavy lifts and out of gauge units, including lifting instructions and
the canter of gravity.

6.5.2. NUMEROUS PARAMETERS MUST BE CONSIDERED WHEN

PREPARING A PRE-STOW PLAN INCLUDING:
VESSEL ROTATION

A ship route is the sequence of consecutive ports called by ships where the ship returns to the
initial port after visiting the last port (port rotation) in the reverse order of the initial route.
Vessel rotation is most important parameter to be consider while preparing pre-stowage plan,
without considering vessel rotation stowage planner cannot plane single container on vessel.

Planner have to planer next ports containers on top and later ports container on below/lower
deck.

For Example

If vessel berth on JNPT port and moving Mundra, Karachi and Jebel Ali respectively than
stowage planner will plane jebel Ali port container at under deck than planner will plane
Karachi container above jebel Ali container and lastly planner will plane Mundra container on
upper deck.

WEIGHT DISTRIBUTION

The weight distribution determines the vessels stability and trim. A good stability help to ensure
the maximum speed and minimum fuel consumption. The vessel must have ideal stability to
ensure safety of the crew and cargo. The cargo weight should plan in a manner that prevent the
vessel from becoming excessively stiff and tender. Those factors help to determine how a
vessel will behave at the time sealing.

42
Vessels each deck has proper weight allocation, for the stability of vessel. stowage planner has
to allocate cargo in allotted manner, planner cannot exceed allotted limit, therefore proper
weight distribution and load spreading measures should be taken to prevent the deck from being
overloaded.

CARGO COMPATIBILITY

Stowage planner have to consider compatibility while preparing stowage plane. Care should
be taken to ensure that incompatible cargoes are not stowed next to one another. There are
international regulation covering the stowage of hazardous cargo but special consideration
should also be taken when loading food, liquids in drums or pails, odorous or dusty
commodities and fragile cargoes.

Pre-stow plan help in ensuring a safe and speedy vessel turnaround with minimum cost and
cargo minimum cargo damage. Final stowage plan includes details of the final cargo
distribution, total weight and containers in each bay and total weight and container for each
discharge port. The final will show all the location on all containers on board.

BAY PLAN
43
 6.5.3. SAFETY MAJORS TAKEN WHILE PREPARING
STOWAGE PLAN.

LASHING ERROR

When containers are loaded over a vessel, its is secured to the ships structure and to the
containers placed below it by means of lashing rods and twist locks. Lashing prevents the
containers from to move from their places or fall of to the during sailing or at time of rough
weather.

Lashing is done with the with the help of lashing bridges which enable the vessel to fix lashing
bars to containers higher up the stack which is not possible on old vessel because they don’t
have lashing bridge facility. If the lashing forces are not 100% or below, the vessel is normally
not allowed to continue its voyage due to safety reasons. Therefore, this information is crucial
for the planner in order to create a workable plan.

LINE OF SIGHT (LOS)

The line of sight means the visibility from the vessels navigation bridge, in other words the
vessel view. As per (International Convention for the Safety of Life at Sea) line of sight rules
state that the view of the sea surface from the bridge shall not be obscured by than two ship
lengths, or 500, whichever is less.

For stowage planner this is a very important factors in order to have as many containers as
possible onboard but planners need to follow the rule as the vessel is not allowed to sail if this
rule not fulfilled.

44
DANGEROUS GOODS CONFLICTS

‘Dangerous goods’ are materials or items with hazardous properties which, if not properly
controlled, present a potential hazard to human health and safety, infrastructure and/ or their
means of transport.

Dangerous goods (DG) also called hazardous containers are not limited to specify type of
containers. All dangerous goods is covered by the IMDG code in terms of what can be loaded
into containers, what class it is and the UN number for each individual commodity.

Classification of dangerous goods is broken down into nine classes according to the type of
danger materials or items present;

1. Explosives
2. Gases
3. Flammable Liquids
4. Flammable Solids
5. Oxidizing Substances
6. Toxic & Infectious Substances
7. Radioactive Material
8. Corrosives
9. Miscellaneous Dangerous Goods

The planner considers the general guideline for the stowage of hazardous container from the
shipping line prospective:

 No hazardous cargo to be stowed in bay 01 and 02.

 No hazardous cargo to be stowed in the outermost row on deck in any bay, except
fumigated units.
 No hazardous cargo to be stowed in stacks outside the hatch cover which are liable to
be damaged by seawater from below.
 No hazardous cargo to be stowed in first tier positions that rest on two different hatch
covers.
 Hazardous cargo may be loaded underdeck as per the vessels document of compliance
and company in-house rules.

45
 6.6. RESTOWS

Restows means the number of containers to be shifted by crane from their original position on
board is called restows. Shifting containers on-board results in both scenarios in extra crane
moves and therefore additional operation time as well as extra cost as the terminal usually
charge.
To shift containers results in both scenarios in extra crane moves and therefore additional
operation time as well as extra costs as the terminal will usually charge each Rostow. Restow
costs will lead to a direct increase of operational costs while on top additional operation time
might delay the vessels departure and therefore indirectly also increase fuel costs as to having
to proceed to the next port at a higher speed causing higher fuel consumption.

There are four main reasons for making restows:

 Change of destination (COD) of a container after it has been already loaded.

 Space issues at present port of loading.
 Stability / lashing force issues.
 Minimize Suez Canal fee related to tiers loaded on deck.

For this test setting restows related to CODs do not apply as no destinations are changed. Space
related restows include for example using temporary positions on top of earlier port of
discharge ports that require the containers on top to be removed at a later port in order to
discharge the cargo below.

46
 6.7. AFTER SAILING REPORT

 Terminal departure report (TDR) to be sent head office along with concern port.
 Operation department has to send on board confirmation report to customer service and
marketing department.
 Export general manifest (EGM) is to be filed with custom in prescribed time. Usually
shipping line have to file EGM within 7 days after sailing of the vessel.

47
 6.9. COMMON ABBREVATION USE IN SHIPPING LINE

SR.NO ABBREVATION EXPLANATION

1 DO DELIVERY ORDER
2 POD PORT OF DISCHARGE
3 FPOD FINAL PORT OF DISCHARGE
4 VIA VESSEL IDENTIFICATION ADVICE
5 VGM VERIFIED GROSS MASS
6 ETA ESTIMATED TIME OF ARRIVAL
7 IAL IMPORT ADVANCE LIST
8 EAL EXPORT ADVANCE LIST
9 IGM IMPORT GENERAL MANIFEST
10 EGM EXPORT GENERAL MANIFEST
11 ADR ARRIVAL DEPARTURE REPORT
12 CBF CONTAINER BOOKING FORCAST
13 BTL BALANCE TO LOAD
14 TEU TWENTY-FOOT EQUIVALENT UNIT
15 LCL LESS THAN CONTAINER LOAD
16 FCL FULL CONTAINER LOAD
17 PCS PORT CONTROL SYSTEM
18 CFS CONTAINER FREIGHT STATION
19 DPD DIRECT PORT OF DELIVERY
20 ROB REMAINING ON BOARD
21 CMC CONTAINER MONITORING CELL
22 SOB SHIPPED ON BOARD
23 BL BILL OF LADING
24 ODC OVER DIMENSIONAL CONTAINER
25 ICD INLAND CONTAINER DEPOT
26 VCN VESSEL CALL NUMBER
27 TDR TERMINAL DEPARTURE REPORT

48
 7.OBSERVATIONS:
7.1. CLASSIFICATION OF OBSERVATION

7.1.1. ABOUT ORGANIZATIONAL TRAINING

COSCO Nava Sheva office located in JNPT port, manager told me to learn and observe each
and every activity properly. In COSCO shipping line they don’t provide me any particular
training. They allow me to learn and observe not only office activity but also allow me to learn
vessel handling and other port related activity.

7.1.2. ABOUT SELF-LEARNING:

The Primary thing I learn during summer internship is how operations department handle its
activity at port, i.e. COSCO and its services, Nava Shava terminals and various documents
required for vessel birthing and vessel sailing. I future learn about day to day operations and
coordination with head office and various other department of COSCO shipping line. I future
observe how operation departments handle day to day problem resolution.

7.2. TRENDS / PATTERNS:

Over 90% of world trade is carried by the international shipping industry. Without shipping
the import and export of goods on the scale necessary for the modern world would not be
possible. There are around 50,000 merchant ships trading internationally, transporting every
kind of cargo. The world fleet is registered in over 150 nations, and manned by over a million
seafarers of virtually every nationality.

Throughout the last century the shipping industry has seen a general trend of increases in total
trade volume. Increasing industrialization and the liberalization of national economies have
fueled free trade and a growing demand for consumer products. Advances in technology have
also made shipping an increasingly efficient and swift method of transportation.

49
8.IDENTIFICATION OF CRITICAL ISSUES OR PROBLEM
AREA
SHUT OUT CONTAINER
“Shut Out Container” means a container that entered the terminal as export for a particular
vessel and is not loaded on the vessel for any reason and is lying in the container yard.

There are many reasons for shut-out containers. some of the reason for shut out are as follows.

SHORT REASON DETAIL DESCRIPTION

Container (arrived at the terminal after gate
Late gate-in cut-off. As a result, the shipment will need to
be replanted to the next vessel.
If the vessel has been forced to leave the port
Vessel cut and run prior to completing operations. Your shipment
had to be replanted to the next available
vessel.
shipment has been replanted based on
Delivery/Discharge Location changed customer request to change the delivery or
discharge location
Since dangerous goods declaration or OOG
documentation for shipment was not
received prior to documentation cut-off, it
Dangerous goods or OOG declaration therefore cannot be loaded on the original
Missing vessel. Customer has to submit the required
documentation so that shipping line replant
loading shipment .

Since shipping instructions for this shipment

Missing shipping instruction was not received prior to documentation cut-
off, it can therefore not be loaded on the
original vessel.
Due to customs restrictions, your shipment
Customs restriction was not loaded as planned.

50
 9.CONCLUSION

 COSCO shipping line India private limited handling its business in India more than 2
decades. COSCO trying to improve its services as per customer requirement and
provide best services to its customer. COSCO shipping line always higher professional
people to handle its operation department.

 COSCO shipping line always provide good technology to each and every department,
for container tracking equipment control department use COSCOs tailor made
software.

 COSCO shipping line provide services in lower cost than its competitor.

 COSCO shipping line use digital platform to handle its day to day activity. For issue
form 13 also COSCO use odex digital plate form.

 Submissions of shipping bills and DG declaration is still time taking and manual
process shipping agencies should come up with digital platform for this process it will
be beneficial for shipping company as well as customers.

9.1 SUMMARY TRENDS IN ORGANISATION:

Operations in shipping line is most important part in shipping company. In shipping industry
Profit solely depends on efficiency of the operations in others words if operations cost of the
company is less than profit will more and if operations cost of the company is more than profit
will be less. COSCO shipping always try to improve its efficiency to handle the operations,
company always try to use its resources optimally. COSCO shipping company also make
maximum effort to use its deck spaces efficiently to load maximum containers on bored.
COSCO shipping inspects its containers more often in empty depo, if any container found
damage than company will repair it immediately. COSCO shipping line use best digital
platform to locate and track its containers.

51
9.2 SUMMARY OF FEEDBACK GIVEN TO ORGANISATION:
In COSCO shipping, manager ask me to observe each and every activity that handle by
operation department, make notes of it and submit the brief report.

During course of my training, I observe and report the following

1. There are 11 shipping services which are handle by cosco shipping operations
department in Nava Sheva port. The shipping bills these services where kept at one
places without any separation. I made a note of this and advise them to keep separators
so that the shipping bills are easily identify.
2. Company has to provide extra safety shoes and jacket to visiting employ on the vessel.
3. The operation department handling huge operations were using Ms excel for various
activities this resulted allocation of huge time and cost. They should use offices traction
processing system and management information system in order to collect and store
their data.

The operation manager was pleased with my feedback given to him.

9.3 SUMMERY OF SELF-LEARNING

During course of my internship, I self-learn the following

1. operation of shipping company work, the follow of activities undertaken and handle
by operations department.
2. How does the vessel planner plans for the incoming and outgoing shipments.

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 REFERENCES

1. http://www.COSCOshippinglinesIndia.com/AboutUs
2. http://lines.COSCOshipping.com/home/
3. http://lines.COSCOshipping.com/lines_resource/pdf/quality2017en.pdf
4. http://lines.COSCOshipping.com/home/Services/containers/1
5. http://www.COSCOintl.com/en_main.asp
6. http://www.COSCOintl.com/en_ab_vm.asp

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 ANNEXURE A
FORM 13 FOR CONTAINER FOR NSGT TERMINAL

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ANNEXURE B

SHIPPING BILL

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 ANNEXURE C

GENRAL BAY PLAN

ANNEXURE D

LOADED BAY PLAN

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PART C
1. APPLICATION OF CONCEPTS, TOOLS, TECHNIQUES AND
SKILLS LEARNT AT PIMSR.

During my stay at PIMSR I learn the following.

CONCEPTS

1. The first concept I learn was general management. I learn the planning process the
organizing activity, and directing & controlling methides. I also learn the concepts of
strategy and levels of strategy.

2. The second concepts that I learn of operations management. Here learn concepts like
process analysis facility location & layout, inventory management, quality control,
quantity control as well as material requirement planning.

3. The third concepts I learn was inventory management. Concepts of Economic Order
Quantity and Reorder levels and Just In Time.

TOOLS, TECHNIQUES AND SKILLS

1. We were required to demonstrate the operation process of any organisation, picked up

Nutella. I applied the concepts learn in operations management from procuring raw
material to manufacturing Nutella.

2. I also undertook a project named information and technology application in logistics

and supply chain management. In this project, I demonstrated how information
technology eases the smooth functioning of logistics and supply chain of the company.

3. I also undertook project on Business Research Method on the topic of iPhone-X. In this
project I explain the marketing strategy, the pricing strategy, unique marketing and
advertising strategy.

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2. MENTION NEW KNOWLEDGE, TOOLS, TECHNIQUES OR
SKILLS THAT YOU MAY HAVE PICKED UP.
My internship was for total 8 weeks I many things which I am explaining as follows.

WEEK 01

1. In first week of my internship, I learned basic work flow of shipping line. I learned how
shipping line move containers from one place to another place.
2. Type of containers (shipping container is a large standardized metal box, designed to
build for freight transport). I learned the different type of containers, its features and
uses.

WEEK 02

1. In second week of internship, I learned Form 13 generation (form 13 is gate entry pass
for container to gate-in terminal). Form 13 is generated online by ODEX (Online Data
Exchange).
2. I also learned to issue Form 11 (Form 11 is gate entry pass for containers transported
by rail).

WEEK 03

1. In third week of internship, I learned about preparing IAL (Import Advance List).
2. I observed how Operation Executive prepare import advance list and export advance
list.
3. Visiting JNPT port in APMT terminal for safety induction (safety induction is
compulsory for those whose visit the vessel for the first time)

WEEK 04

1. Visited APMT terminal, planning department.

2. Visited COSCO HUSTON with the Vessel Planner to meet vessel’s Chief Planner for
final approval of place.

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 WEEK 05

1. In 5th week of internship, I learned IGM (Import General Manifest) filling.

2. In this week with the help of company’s Vessel Planner, I learned pre-berthing
documentation which has to be submitted to customs and terminal.
3. Creating rotation number on ice-gate for incoming vessel.

WEEK 06

1. In 6th week of internship, I visited PSA port. PSA port is the newest port build beside
JNPT port. PSA port is also called Singapore port. Here, I along with COSCO Assistant
Manager met terminal Vessel Planner.
2. I visited COSCO XING HONG KONG with Vessel Planner to meet vessel’s chief
planner for approving the changes in plan which are made by terminal planning
department.

Week 07 and week 08

1. During these two weeks I repeated the activities undertaken from week 01 to week 06.

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3. ANY AUGMENTATION OF SOFT SKILLS SUCH AS BUILDING
INTERPERSONAL RELATIONSHIPS:

1. I learn how to communicate with different level of people in the organisation.

2. I ask various quarries on vessel operations.
3. I also observe the various process being undertaken.
4. I also learn to prepare internship report.
5. Communicate with terminal operation department for berthing and sailing of the vessel.

4. ANY DIRECTIONS FOR FUTURE LEARNING OR CAREER PATH

THAT YOU MAY LIKE TO PURSUE:
I got an opportunity to complete my internship with COSCO, I intend to work with COSCO
or any other major shipping line as a career. The internship thought me the operation of
shipping line and I will make every endeavour to use the knowledge received during my
internship in my future career.

I also intend to pursue Certified in Logistics, Transportation and Distribution form

American Production and Inventory Control Society (APICS).

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