Inevitability in the Growth and Development of Green Port Operations in the Seaports of Chennai Cluster

Home , Kamarajar Port Limited

International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 9, September 2018, pp. 489–496, Article ID: IJMET_09_09_053 Available online at http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=9 ISSN Print: 0976-6340 and ISSN Online: 0976-6359

INEVITABILITY IN THE GROWTH AND DEVELOPMENT OF GREEN PORT OPERATIONS IN THE SEAPORTS OF CHENNAI CLUSTER

Muralidharan Balasubramaniam Research Scholar, AMET Business School, AMET University, India

Dr. J. Rengamani Professor, AMET Business School, AMET University, Chennai

ABSTRACT Today the trade across the world has established a competitive landmark with regards to the global market. Thus an improvement in the maritime transportation is witnessed to the furthest extent, as compared to the transportation on other modes. Such a competitive environment has paved a way for ports in the country to develop at par with the global logistics centres across the world. The term Green port will contribute to a steady sustenance of the maritime transport in the country. The purpose of this study is to thoroughly review the inevitability in the growth and development of green port operations in the seaports of Chennai cluster. To do this, articles which have been included bear keywords with notions specified as Green Port have been focused and taken into consideration, also references from the articles relating to the existing green port operations in relation to Chennai cluster have been taken into consideration and scrutinized for the study. Content analysis will be carried out on the articles chosen and eventually the findings relating to concepts involving further growth and development of green port operations will be discussed. Keywords: Competitive environment, Green Port, Content analysis, Sustainability, growth and development Cite this Article: Muralidharan Balasubramaniam and Dr.J.Rengamani, Inevitability in the Growth and Development of Green Port Operations in the Seaports of Chennai Cluster, International Journal of Mechanical Engineering and Technology, 9(9), 2018, pp. 489–496. http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=9

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1. INTRODUCTION The Indian Ministry of Shipping is taking major leaps towards green efficiency and sustainability by highlighting the benefits of major ports using renewable energies. The ministry plans to set up 91.50 MW of solar energy capacity at the twelve Major Ports of the country. These Major ports have already initiated the setting up process by pledging USD $104 million into the projects. In a statement, the ministry said “When completed, these renewable energy projects will help in the reduction of carbon dioxide emission by 136,500 MT annually. These projects will also help to reduce cost of power purchased by utilization of renewable energy for power generation, resulting in estimated saving of USD 11.1 million annually, when fully commissioned”. The Ministry of Shipping (MoS) has undertaken an initiative to implement utility-scale Solar Photovoltaic Power Plant projects at various major ports across the country. The Solar Energy Corporation of India (SECI) has been appointed as the overall project management consultant for these projects. AnMoU has been signed in this regard between SECI and the Indian Ports Association (IPA), on behalf of the individual port trusts, to implement the solar energy projects. As part of this activity, installation of grid connected solar power plants in the following ports is underway. In addition, installation of rooftop solar power projects at various ports is also undertaken and the related processes has been started. The Projects are started with three ports in Tamilnadu:  Port of Chennai  Kamarajar Port Ltd., Chennai, Tamil Nadu  APSEZL, Kattupalli port, Kattupalli

1.1. Port of Chennai Chennai Port is the third largest container port of India. The port is the largest one in the Bay of Bengal. Chennai port has taken green initiatives with a 500 kW solar energy project and a wind farm capable of generating 14.5 MW power. Chennai Port Trust in India's Tamil Nadu state intends to install wind turbines through a public-private partnership to cover part of its electricity demand. Chennai Port Trust in India's Tamil Nadu state intends to install wind turbines through a public-private partnership to cover part of its electricity demand. Chennai Port Trust has also taken steps to make the port a „Green Port‟ by meeting its major portion of its energy requirement through renewable energy. Since the Chennai Port has committed itself to generating 500 KW solar energy, out of which 100 KW (Phase-I) was awarded to Alectrona Energy Pvt. Ltd.

1.2. Ennore: (Kamarajar Port Limited) Ennore Port was recently renamed as Kamarajar Port. It is located on the Coromandel Coast, about 24 km north of Chennai Port, Chennai, and is the 12th major port of India. The port was declared as a major port under the Indian Ports Act, 1908 in March 1999 and incorporated as Ennore Port Ltd under the Companies Act, 1956 in October 1999. Kamarajar Port is the only corporatized major port and is registered as a company. This port is designed as Asia's energy port and seen as a satellite port to decongest and improve the environmental quality at the bustling Chennai Port.

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1.3. Kattupalli Port Adani‟skattupalli port is committed to promote a culture seeking continual improvement in Environment performance of the organization. It emphasizes on implementing environment management system to optimize its resource consumption, improve efficiencies, reduce wastes by adopting 5R (Reduce, Reprocess, Reuse, Recycle and Recover) principles and enhance operational safety to minimize environmental risks. The environmental concerns are considered and addressed adequately during planning, project development and operations. It is continuously working on strategic assessment of various environmental attributes & reporting as well as devising various programmes& policies. Company‟s programs and policies ensure timely and effective compliance of all applicable environment regulations.

2. LITERATURE REVIEW In this article, the marketing of urban regeneration and green washing literatures have been linked via case study of the Port Adelaide revitalization. (Szili, Rofe, 2007). In this article, the marketing of urban regeneration and green washing literatures have been linked via case study of the Port Adelaide revitalization, Szili, Rofe, 2007. Profit Analysis Program has been used in order to determine toxicity of sediments received as sample from 7 Spanish city ports, Morales-Caselles, Rico, Abbondanzi, Campisi, Iacondini, Riba, DelValls, 2008. A simulation model has been used to determine the optimum number of container handling equipment to increase the lean capabilities of a Turkish port. Arena 12.0 Simulation Software has been used,Esmer, Çetin, Tuna, 2010. Literature discussion on Green Port Construction of Tianjin Port, Ying, Yijun, 2011.This study is based on a bibliography survey, examining two Greek ports as case studies and investigating the integration and adaptation of the environmental legislation, national, international and European, Anastasopoulos, Kolios, Stylios, 2011. In this study, Integer Linear Programming (ILP) model and heuristics has been proposed to determine optimum port-cost and power-consumption,Hou, Guo, Wang, Wei,2011. Green Port Fees and Marginal Costs have been evaluated in one table, Bergqvist, Egels- Zanden, 2012. Calculation related to ship emissions by using equation model of Corbettt et al., Chang, Wang, 2012. This paper describes the method which is composed of ﬁnancial accounts (MC3) used to estimate the Carbon Footprint of a port, Carballo-Penela, Mateo- Mantecon, Domenech, Coto-Millan, 2012. This paper adopted the static game model under the asymmetric circumstance to research cooperative relations of low-carbon green oil port between the oil port enterprises, Fan, Dong, Zhang, Li, Liang, 2012. This paper offers a dynamic green portfolio analysis of a range of European inland ports, based on an adapted model of the BCG-matrix and traffic volumes generated in the period 1999–2010. Strategic Positioning Analysis (SPA) has been used while evaluating., Dooms, Haezendonck, Valaert, 2013. This study uses the questionnaire survey procedure for scholars, shipping companies, and port operators. This paper extracted five key factors by principle component analysis. Then, indicating the characteristic of the successful green ports and the gap between four ports in Taiwan and the successful green ports based on five key factors. (Cronbachalfa), Sheu, Hu, Lin, 2013. The purpose of this paper is to measure a port‟s green performance. Analytic Hierarchy Process was used for this article, Lirn, Wu, Chen, 2013. This study compared RTGs and E- RTGs from the perspective of energy savings and CO2 reduction. Kaohsiung Port has been selected for being Case Study scope., Yang Chang 2013. This paper presents a methodological approach for the implementation of the green port concept. Presented research work provides a methodological approach for finding realistic solutions to the problem of the future development challenges of seaports. This study has involved case study, Kavakeb,

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Nguyen, McGinley, Yang, Jenkinson, Murray, 2014. A Fuzzy AHP Analysis has been used to be forged a greener port operation, Chiu, Lin, Ting, 2014. In this paper, to identify the most economical fleet size for each type vehicle in order to satisfy the port's performance target, and to compare their impact on the performance of container terminals, a discrete-event simulation model has been developed, Kavakeb, Nguyen, McGinley, Yang, Jenkinson, Murray, 2015. This research applied Green Flag Program to investigate benefits of reducing speed and fuel transfer for large vessels entering Kaohsiung Port. For this purpose fuel consumption has been calculated, Chang Jhang, 2016.

3. RESEARCH OBJECTIVES The research objectives of the study are given below:  To study the factors responsible for the growth and development of green port operations in the seaports of Chennai Cluster  To study the factors concerning the green port operations in the seaports of Chennai Cluster.

4. RESEARCH HYPOTHESIS In order to achieve the objectives, this article is organized around the following working hypotheses:

H1: There is a significant difference in the factors concerning the green port operations

H2: There is a significant difference in the mean values of the factors of growth and development of green port operations in the seaports of Chennai Cluster

5. METHODOLOGY The conceptual model of the study concerning the growth and development of green port operations in the seaports of Chennai Cluster is given in Fig-1

Figure 1 Conceptual Model of Green Port Operations The conceptual model portrays the factors that are influencing the green port operations. In the today‟s scenario, if a seaport has to become a world class seaport then the seaport has to follow the factors related to green port operations overcoming the challenges based on PEST factors such as Political factors, Economical / Ecological factors, Socio-cultural factors and Technological factors.

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The target population of the study was the port users and the people related to port operations such as the shipping companies, Main Line Operators, Freight Forwarders, Multimodal Transport Operators, Port Agents. The sampling method used in the study is the stratified random sampling method. The sample size of the research study is 150. The data was collected based on a structured questionnaire. The questionnaire was administered to the port users to elicit information regarding the green port operations. The sample responses was obtained on a five-point Likert Scale from 1 (strongly disagree) to 5 (strongly agree). In order to test the reliability and validity of the data collected, the Cronbach‟s alpha measure was used. The hypothesis was tested by using one-way Analysis of Variance (ANOVA).

6. DATA ANALYSIS The demographic details of the users of seaports such as Chennai port, Kamarajar port &Kattupalli port in the Chennai Cluster are given in Table-1. It can be inferred that more percentage of port users of all the three ports falls under 30-40 age category. Moreover the majority of the type of port users is NVOCCs. As per the opinion results of the port users, the majority of the port users who have got experience in the port operations fall under the middle age category.

Table 1 Demographic Factors Kattupalli Port Demographic Factors Chennai Port (%) Kamarajar Port (%) (%) Age of the Port Users 20 - 30 20 11 9 30 - 40 52 48 47 40 - 50 16 30 20 50 - 60 10 7 14 > 60 2 4 10 Different Categories of Port Users Port Agent s 15 9 5 Freight Forwarders 24 11 14 NVOCCs 22 37 32 LSPs 19 16 19 Exporter / Importer 15 15 21 Others 5 12 9 Years of Experience in Port Operations Below 2 years 9 11 8 2-5 years 19 38 35 5-10 years 32 42 22 10-15 years 34 5 26 Above 15 years 6 4 9 The factors that are included in the questionnaire were tested for reliability and consistency by calculating cronbach‟s alpha for Environmental aspects, Promotional aspects, Innovation and Technology, Renewable Energy Source and Port facilities have satisfactory values of 0.91, 0.88, 0.82, 0.85& 0.91 respectively. This shows that the factors are consistent and reliable. In order to test the hypotheses, one-way Analysis of Variance (ANOVA) was applied. The F-values and the corresponding p-values are given in Table-2.

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Table 2 One way ANOVA of the Green Port Factors Chennai Kamarajar Kattupalli Port Port Port Green Port Factors F-Value F-Value F-Value (p-Value) (p-Value) (p-Value) 1. Focus of Green Port environmental aspects of Sea ports and terminal Port should self-commit to environmental issues for 3.16 3.69 3.22 initiating the green port (0.002) (0.008) (0.002) Initiatives toward reduction of carbon emission and 4.42 4.15 3.12 carbon foot prints on measures by which green ports are (0.016) (0.007) (0.028) promoted. The fuel consumption per TEU transported is lower by 4.12 3.21 4.25 Green Ships (0.002) (0.006) (0.018) Creation of new green-field ports for the purpose of tax 3.13 3.17 2.02 concessions (0.001) (0.002) (0.012) 2. Concept of Green port in relation to promotional aspects of Seaports and terminal Safe and green governance over the maritime domain 2.21 3.12 3.15 which willaccommodate overabundance of maritime (0.003) (0.027) (0.021) activities. Ports can promote clean shipping by providing incentives 4.11 3.35 4.85 to enable green tariff. (0.012) (0.234) (0.015) 3.36 4.18 3.32 “green port” concept should be incorporated in ISO (0.002) (0.005) (0.002) 3. Innovation and Technologies that will green the logistics chain The green ships visiting ports can be given priority 4.12 3.53 3.54 berthing which will act as a catalyst to call more and (0.004) (0.010) (0.011) more green ships at the ports. port site should provide mass storage place for the non- 4.23 3.21 4.15 hazardous and green cargo (0.021) (0.022) (0.024) Power and automation technologies will deliver Green 3.56 3.12 4.23 Port (0.012) (0.015) (0.041) 4. Initiatives on Green Seaports and Terminal in relation to Renewable sources of Energy Additives in fuel (Diesel) will be a Green initiative for 3.25 4.25 3.54 improving the air quality in the port (0.001) (0.021) (0.033) Optimizing hinterland connections will be initiative for a 3.54 4.25 4.59 green port (0.003) (0.015) (0.015) Waste management will be a effect of Green initiative for 3.78 2.51 3.55 improving green port cruise (0.011) (0.007) (0.03) 5. Contribution of Port facility systems in development of Green Seaports and Terminal Port facilities have sufficient resources to cope for the 3.28 3.75 3.85 logistical development of Green port (0.009) (0.007) (0.015) Indian Ports Association (IPA) regulations will impact 4.25 4.38 3.95 ports in South India to initiating the green port (0.023) (0.018) (0.029) 3.22 3.44 3.56 Port authority can contribute to reduction of emissions. (0.009) (0.008) (0.001) *: the values in the brackets represent p-values By carefully analyzing the p-values, it can be inferred that the p-values are less than 0.05 and the hypotheses can be accepted at 5% level of significance as given in Table-2. It can further be explained as follows: Port should be self-committed to the environmental issues for initiating to the development of green port. Sustainable development depends on know how related to a range of different areas. It is challenging to maintain a broad knowledge base and utilization of renewable wellsprings of energy to power Significant Ports the country over. Initiatives toward reduction of carbon emission and carbon foot prints on measures by which green ports are promoted across the country. Next important aspect would be the fuel consumption per TEU transported is lower by Green Ships. Reducing fuel consumption and carbon emissions

http://iaeme.com/Home/journal/IJMET 494 [email protected] Muralidharan Balasubramaniam and Dr.J.Rengamani are two of the main concerns of shipping industry today. The green ships visiting ports can be given priority berthing which will act as a catalyst to call more and more green ships at the ports. Globalization has led worldwide organizations to balance their economic and environmental performances in order to achieve a concrete sustainable development. In an environmental centered world, logistics is called to put into action advanced programs based on technological and organizational improvement, in order to gain or maintain a concrete competitive advantage. The purpose of this paper is to investigate how logistics organizations try to face the recent ecological challenges and the role that the emergent green technologies play in making them finally “green” and competitive. Port site should provide mass storage place for the non-hazardous and green cargo.Mandatory measures on Green belts and for Environmental & Pollution Control within port perimeters will help promote further growth in the attainment of sustainability.Power and automation technologies will deliver an additional advantage to the Green Port to grow technologically. Despite all the above efforts, it is necessary to opt for a new lighting policy and DC power technology ahead of the construction of green port. Thus by means of abundant innovative research measure growth and innovation in the green port sector in inevitable.

7. CONCLUSION During the recent years, green port concept has been a trend for ports especially located in Chennai cluster ports. Although green port concept has seemed as based on voluntariness, it is also a cost efficient approach and it has contributed to urban development. Increasing environmental care to use scarce resources effectively and regulative applications for maritime transport to ensure environmental awareness in recent years can be seen. Articles viewed in this study initially dwelled on use of renewable sources of energy and management of various polluting factors as recent reports published by IMO (International Maritime Organization) and IPA (Indian Port Association). Articles also had been studied on some other related topics such as: Environmental Economy, Green Performance Criteria, Noise Pollution Management and Marine Biology Prevention. In this study, articles studied on green port concept have been investigated, and deficiencies have been established in the fields of concepts, model construction and developing methods. A number of case studies were helpful in order to overcome these deficiencies.

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