ADMINISTRATION REPORT 2012-13 Visakhapatnam Port Trust ISO 9001 ISO 14001 & OHSAS 18001 OUR VISION To be the most preferred port in South Asia offering services of global standards OUR MISSION To be a major partner in meeting the logistics requirements of the Importers and Exporters of the region Board of Trustees . i Principal Officers of the Port . iii Year at a glance . iv Balance Sheet at a glance . vi Trustees’ Report . vii Vital port statistics . 1 Operational performance . 2 Financial performance . 14 Capital expenditure . 18 Human Resource Development . 21 Safety measures . 23 Environment management . 24 Other events . 27 CONTENTS Annexures . 31 Annual Accounts . 143 Note on Accounts . 164 Major Port of the year award at EXIM India's 4th South East CEO Conclave & Awards - 2012 Board of Trustees VISAKHAPATNAM PORT TRUST BOARD OF TRUSTEES 2012-13 1. Shri Ajeya Kallam, I.A.S Chairman 2. Shri G.V.L.Satya Kumar, IRTS Deputy Chairman 3. Shri P.V.R.Reddy Commissioner of Customs, (Upto 08.06.2012) Visakhapatnam Shri M. Ponnuswamy (from 09.06.2012 to 25.09.2012) Shri P.K. Mohanty (from 26.09.2012 to 21.10.2012) Shri M. Ponnuswamy (from 22.10.2012) 4. Shri Sunil Sharma, I.A.S. Principal Secretary to Government, (upto 16.01.2013) Infrastructure & Investment Dept., Shri Rajiv Ranjan Mishra, I.A.S. Andhra Pradesh Secretariat, Hyderabad (from 17.01.2013) 5. Shri Sunil Mishra Joint SecretaryMinistry of Shipping, (from 23.12.2011) Government of India, New Delhi 6. Shri M.A.Thalha Commander, Coast Guard, District Head Quarters (6), Visakhapatnam 7. Cmde. Ajay Saxena Naval officer in charge (AP), Eastern Naval (from 01.04.2012) Command, Visakhapatnam 8. Shri G.D.Brahma, IRTS Chief Freight Transportation Manager, (upto 26.07.2012) East Coast Railway, Bhubaneswar Shri Debaraj Panda, IRTS (from 27.07.2012) 9. Shri M.Chandra Sekhar Rao Engineer & Ship Surveyor, Mercantile (upto 31.07.2012) Marine DepartmentVisakhapatnam Shri S.V. Durga Prasad (from01.08.2012) Administration Report 2012 - 13 i Board of Trustees VISAKHAPATNAM PORT TRUST BOARD OF TRUSTEES 2012-13 10. Shri V. V. Rama Rao Hony. President, Visakhapatnam Harbour & Port Workers Union, Visakhapatnam 11. Shri D. K. Sarma General Secretary, Visakhapatnam Port Employees UnionVisakhapatnam 12. Shri P.A.B.Raju General Manager i/c (upto 31.10.2012) Hindustan Petroleum Corporation Shri V.V.R. Narasimham Ltd.Visakhapatnam (from 01.11.2012) 13. Shri K.V.Krishna Kumar President Visakhapatnam Stevedores Association K.S. Dutt Memorial Building Port Area, Viskhapatnam 14. Shri C.V.Atchut Rao Member of the Managing Committee, Federation of Andhra Pradesh Chambers of Commerce & IndustryHyderabad 15. Shri Charan Kumar Kavuru 43-5-43/12, Surya Apartments, Railway New ColonyVisakhapatnam 16. Shri Tippala Chinna Appa Rao Door No.12-60-10(3), Aruna Complex, B.C.Road, Gajuwaka,Visakhapatnam 17. Shri League M.Mohan No.12 AB, Taramani 100 Ft Road, Velachery, Chennai 18. Shri A.Mahesh Reddy Sai Krupa, D.No.8-3-833, Plot Nos. 37 & 38, Phase 1, Kamalapuri Colony,Hyderabad 19. Shri D.V.A.Prasada Raju Majjivalasa Village, Bheeminipatnam Mandal, Visakhapatnam ii Administration Report 2012 - 13 Principal Officers PRINCIPAL OFFICERS OF THE PORT TRUST (as on 31.03.2013) 1 Shri Ajeya Kallam, IAS Chairman 2 Shri G.V.L.Satya Kumar, IRTS Dy.Chairman 3 Shri Mujib Pasha Shaik ITS Chief Vigilance Officer 4 Shri K.Ramachandra Rao Chief Engineer 5 Shri D.Naresh Kumar Secretary 6 Shri Satish Honnakkatte Chief Mechanical Engineer 7 Capt. S.Mathur Dy. Conservator 8 Shri S.Gopalakrishna Traffic Manager 9 Shri D.Ramana Murty Financial Adviser & Chief Accounts Officer i/c 10 Dr.G.Balaparameswara Rao Chief Medical Officer i/c 11 Shri K.K.Chaturvedi Commandant, CISF Administration Report 2012 - 13 iii Year at a Glance YEAR AT A GLANCE 2012-13 PHYSICAL INDICATORS Description Unit 2012-13 2011-12 Overseas Traffic million tonnes 41.21 44.75 Coastal Traffic million tonnes 17.83 22.67 Total Traffic million tonnes 59.04 67.42 Container Traffic TEUs 247,311 234,345 Ships entered – Inner Harbour nos. 1,108 1,383 Ships entered – Outer Harbour nos. 954 1,086 Ships entered – Total nos. 2,062 2,469 Average Pre-berthing detention (Port a/c) Hours 1.41 2.22 Average Turn Round Time (Port a/c) days 2.33 2.33 Output per Ship Berth Day tonnes 10,645 10,701 Average parcel size Tonnes 28,938 27,719 Cargo moved by Port Railways million tonnes 34.90 34.75 Cargo loaded at OHC million tonnes 9.58 10.02 Quantity Tippled at OHC million tonnes 8.88 8.29 Output per Gang Shift tonnes 626 667 Persons employed as on 31st March (including Cargo Handling Division – erstwhile VDLB) nos. 4,941 5,063 iv Administration Report 2012 - 13 Year at a Glance YEAR AT A GLANCE 2012-13 FINANCIAL INDICATORS Description Unit 2012-13 2011-12 Operating Income (` in Lakhs) 70287.71 72642.25 Finance & Miscellaneous Income (` in Lakhs) 18664.41 45091.17 Total Income (` in Lakhs) 88952.12 117733.42 Operating Expenditure (` in Lakhs) 34707.33 32093.04 Management & General Admn. Expenditure (` in Lakhs) 14234.70 11543.25 Finance & Miscellaneous Expenditure (` in Lakhs) 36306.00 84036.02 Total Expenditure (`in Lakhs) 85248.03 127672.32 Operating Surplus (` in Lakhs) 21345.68 29005.95 Net Surplus (` in Lakhs) 3704.09 -9938.90 Provision for Taxation (` in Lakhs) -2667.00 -15620.41 Transfer to Reserve (` in Lakhs) 6347.26 5382.11 Surplus after Appropriation (` in Lakhs) 23.82 299.39 Total Wage Bill (` in Lakhs) 24068.41 21649.26 Capital Expenditure (` in Lakhs) 6804.67 12336.56 Net Capital Block (` in Lakhs) 89897.58 83130.03 Total Reserves (` in Lakhs) 184384.14 178016.37 Borrowings (` in Lakhs) — — Net worth (` in Lakhs) 184384.14 178016.37 Total Capital employed (` in Lakhs) 104797.15 89477.71 Operating Ratio (Percent) 69.63 60.07 Return on Capital employed (Percent) 3.53 -11.11* * Negative return on capital employed is due to additional contributions made to Pension Fund Trust (` 500 crores), Gratuity Fund Trust (` 30.17 crores) and charging of VR Ex-gratia to P&L Account (` 34.19 crores) Administration Report 2012 - 13 v Balance Sheet at a Glance BALANCE SHEET AT A GLANCE (` in Lakhs) Description As at 31st March 2013 2012 ASSETS CAPITAL ASSETS AT ORIGINAL COST 143115.80 132854.65 LESS: Depreciation Reserve 53218.22 49724.62 Net Capital Block 89897.58 83130.03 Capital Work in Progress 9829.15 13845.99 INVESTMENTS 55645.59 64747.42 CURRENT ASSETS 156981.10 145911.36 Less: Current Liabilities 142081.54 139563.68 Net Current Assets 14899.57 6347.68 DEFERRED REVENUE EXPENDITURE 14112.25 9945.25 TOTAL 184384.14 178016.37 LIABILITIES RESERVES AND SURPLUSES 184384.14 178016.37 CAPITAL DEBTS 0.00 0.00 DEFERRED TAX LIABILITY 0.00 0.00 TOTAL 184384.14 178016.37 vi Administration Report 2012 - 13 Trustees' Report TRUSTEES' REPORT The Board of Trustees take the privilege in presenting the 80th Administration Report of the Port of PRINCIPAL COMMODITIES 2012-13 Visakhapatnam for 2012-13. During the year, the Port handled a quantity of 59.04 million tonnes of cargo. The Port Railways handled traffic of 34.90 million tonnes during 2012-13. Some of the notable achievements in cargo handling during 2012-13 include: • Handled the highest quantity of 12.31 million tonnes of Iron ore & pellets among major ports(45% of the total volume handled by all Major ports) • Handled highest quantity of 6.78 million tonnes of coking coal among Major Ports (nearly 1/4th of the total volume handled by all Major ports) • Handled 27% of the total volume of fertilizers (3.72 million tonnes) handled by all Major Ports • Record quantity of 4.55 million tonnes of container cargo (2.47 lakh TEUs) was handled registering a growth of 8% over 2011-12 Important projects completed: • The mechanised coal handling facility developed on PPP mode at General Cargo Berth is operational w.e.f. 8.4.2013 • Procurement of 50 T B.P. tug Col.H.Cart Wright Reid as replacement Visit of Hon’ble MoS for Shipping Shri Milind Deora • Procurement of FRP launch for pilot operations • Revamping of Route Relay Interlocking system (RRI system) Administration Report 2012 - 13 vii Trustees' Report • Development of new roads and strengthening and widening existing roads to facilitate faster clearance of cargo • Development of small jetties • Fixing of fenders at the central unloading platform of the berth face of OSTT for optimal utilisation of berth enabling operation of small draft vessels upto 180 meters LOA also. Visit of Committee on Government Assurances • Letter of Award was issued for Up-gradation of (Rajya Sabha) existing facility at outer harbour and creation of new facility at inner harbour for handling iron ore on DBFOT basis • The integrated Web based Port Operations System (POS) with PCS and EDI as part of ERP is operationalized • Port of Visakhapatnam was awarded 2012 Greentech Safety Award – Gold for outstanding achievement in implementing best safety practices at port operations • Port of Visakhapatnam was presented “Major Port of the year” award at the EXIM India’s 4th South East CEO Conclave & Awards – 2012 Major projects progressing: • Development of WQ-6 berth for handling dry bulk cargoes (2.09 MTPA capacity) on PPP mode • Development of EQ-10 berth for handling liquid cargoes (1.84 MTPA capacity) on PPP mode • Development of EQ-1 berth by replacing the existing EQ-1 and part of EQ-2 berth to facilitate handling of PANAMAX class steam coal vessels Visit of Parliamentary Standing Committee on on PPP mode Food, Consumer Affairs and Public Distribution viii Administration Report 2012 - 13 Trustees' Report • Development of EQ-1A berth on south side of EQ-1 berth to facilitate handling of PANAMAX class steam coal and thermal coal vessels on PPP mode • Installation of mechanised handling facilities at EQ-7 berth on PPP mode • Deepening of inner harbour entrance channel and turning circle to facilitate navigation of vessels of Visit of Mr.Matthew B Standard draft upto 14 mtrs.