Group Shipping in Tata Steel Logistics
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Group Shipping in Tata Steel Logistics

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Questions and Answers

What is the primary purpose of Group Shipping for Tata Steel?

  • Increasing the number of loading points
  • Streamlining outbound logistics exclusively
  • Reducing the overall import volume
  • Creating a customer-centric supply chain (correct)

    • Which of the following challenges is NOT mentioned regarding coastal shipment?

  • Regulatory compliance
  • Cost inefficiency
  • Infrastructure limitations
  • Environmental impact (correct)

    • Which ports are specified for discharging materials for Tata Steel's coastal logistics?

  • Haldia, Dhamra, and Paradip (correct)
  • Kolkata, Chennai, and Visakhapatnam
  • Mumbai, Chennai, and Kolkata
  • Tuticorin, Vishakhapatnam, and Cochin

    • What was established in FY11 to enhance Tata Steel's logistics capabilities?

    <p>Group Shipping, the global logistics arm</p> Signup and view all the answers

    In FY24, which percentage of the mode distribution is allocated to road logistics?

    <p>36%</p> Signup and view all the answers

    What does the inbound supply chain primarily involve for Tata Steel?

    <p>Raw material procurement and transit</p> Signup and view all the answers

    What type of shipment is highlighted as a key driver in Tata Steel's supply chain?

    <p>Coastal shipment</p> Signup and view all the answers

    Which material is NOT listed as being imported through coastal logistics?

    <p>Iron ore</p> Signup and view all the answers

    Which of the following is NOT a section mentioned within the organizational structure of Group Shipping?

    <p>Warehousing logistics</p> Signup and view all the answers

    What is one of the key deliverables of Group Shipping as described?

    <p>Strategic creation of value across supply chains</p> Signup and view all the answers

    What is the primary purpose of BPR in the context of TMILL operations?

    <p>To enhance the efficiency of cargo handling and transportation</p> Signup and view all the answers

    What does Laycan refer to in cargo operations?

    <p>The agreed-upon time period for vessel loading at ports</p> Signup and view all the answers

    Which of the following best represents the 1st leg transportation in TMILL's operations?

    <p>Transport of finished goods from the plant to the loading port</p> Signup and view all the answers

    Which teams are primarily involved in the direct sales’ cargo operations?

    <p>Ports and their operation teams including stevedores</p> Signup and view all the answers

    What does the term 'stevedores' refer to in cargo operations?

    <p>Workers responsible for loading and unloading ships</p> Signup and view all the answers

    What distinguishes 2nd leg transportation in the TMILL process?

    <p>It involves rail or road transport from the loading port to discharge ports.</p> Signup and view all the answers

    Which statement accurately describes the role of coastal movement in the TMILL process?

    <p>It represents the transition period between loading and inland transportation.</p> Signup and view all the answers

    Which ports are mentioned as possible loading ports?

    <p>Dhamra and Paradeep</p> Signup and view all the answers

    Which type of vessels can Dhamra Port primarily handle?

    <p>Capesize vessels</p> Signup and view all the answers

    What is a disadvantage of Haldia Port?

    <p>Limited handling capabilities for larger vessels</p> Signup and view all the answers

    Which port is closest to TSK while also having infrastructure for larger vessels?

    <p>Gopalpur Port</p> Signup and view all the answers

    What factor impacts the availability of rail services to Haldia Port?

    <p>Rake availability</p> Signup and view all the answers

    Which port should be considered as an alternative during rail shortages at Dhamra?

    <p>Gangavaram Port</p> Signup and view all the answers

    What is a primary challenge faced by Paradip Port?

    <p>Inability to unload Capesize Iron Ore</p> Signup and view all the answers

    Which cargo handling equipment is not categorized under the port infrastructure mentioned?

    <p>Bulk carrier</p> Signup and view all the answers

    What is a common benefit of using Haldia Port over others?

    <p>Lowest rail freight to TSJ and HMC</p> Signup and view all the answers

    What type of ships can be accommodated at KICT?

    <p>Under-loaded capes at 16M draft</p> Signup and view all the answers

    Which factor is NOT mentioned as a positive aspect of Noamundi?

    <p>Low operational costs</p> Signup and view all the answers

    What financial saving did TSL incur in FY’24 through coastal shipments?

    <p>Rs. 16.9 Cr.</p> Signup and view all the answers

    Which facility is specifically mentioned as part of the challenges in enhancing coastal shipping?

    <p>Limited bunkering facilities</p> Signup and view all the answers

    What is a key digital improvement suggested for document management in coastal shipping?

    <p>Adopting RPA based documentation processes</p> Signup and view all the answers

    What is the purpose of enhancing hinterland transport infrastructure in the context of coastal shipping?

    <p>To improve access to coastal ports for long products</p> Signup and view all the answers

    What does 'coastal movement for long products' specifically refer to in this context?

    <p>Movement of bulky or long materials</p> Signup and view all the answers

    What was the projected savings per ton regarding coastal shipment compared to traditional routes?

    <p>$2000</p> Signup and view all the answers

    Which of the following is NOT a benefit of coastal shipment as outlined?

    <p>Reduction in shipping time</p> Signup and view all the answers

    Which of the following challenges relates to the availability of small vessels in coastal shipping?

    <p>Insufficient number of small cargo transports</p> Signup and view all the answers

    What is the forecasted increase in coastal steel movement by FY30?

    <p>Increase by 4X</p> Signup and view all the answers

    What condition is expected to arise due to the surge in steel volumes from ECI?

    <p>Rail/road insufficiency</p> Signup and view all the answers

    By FY30, what aspects need to be considered according to the operational parameters?

    <p>Increased coastal co-efficient and parcel sizes</p> Signup and view all the answers

    How has the coastal co-efficient changed over the forecast period?

    <p>Increased gradually from FY28</p> Signup and view all the answers

    Which two cargo types are being considered for coastal movement until FY30?

    <p>TSK and TSM</p> Signup and view all the answers

    What necessitates the increase in dedicated coastal berths at Paradip and Mumbai?

    <p>Increase in coastal steel movement</p> Signup and view all the answers

    What is the implication of a 10% coastal co-efficient noted in the operational parameters?

    <p>A significant increase of steel volume is anticipated</p> Signup and view all the answers

    What means of transport may become insufficient due to the increased movement of steel?

    <p>Rail and road networks</p> Signup and view all the answers

    What role do the coastal berths play in relation to the steel movement?

    <p>They facilitate the efficient loading of cargo for coastal transport</p> Signup and view all the answers

    What are the projected annual capacities for crude steel from TSM and TSK combined?

    <p>19.5 million tons</p> Signup and view all the answers

    Study Notes

    Group Shipping in Tata Steel

    • Group Shipping is the global shipping and logistics arm of Tata Steel Group
    • Group Shipping delivers a strategic, value creating and customer centric inbound and outbound supply chain for Tata Steel group across all its geographies
    • Total import volume - 22 MnT
    • Total export volume - 1 MnT
    • Group Shipping operates across the entire supply chain from mines to end customers
    • Group Shipping leverages rail, road and coastal shipping
    • Inbound logistics sourcing from mines in India and abroad, specifically limestone and coal
    • Outbound logistics - steel to customers and stockyards across India
    • Key Deliverables:
      • The sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew, in shipping

    Discharge Ports used by TSL

    • Dhamra Port:
      • Located near TSK (Tata Steel Kalinganagar)
      • Can handle Capesize vessels and mechanised handling
      • Limited rake availability is a challenge
    • Haldia Port:
      • Located near TSJ (Tata Steel Jamshedpur) and HMC (Tata Steel Kalinganagar)
      • Lowest rail freight to TSJ & HMC
      • Can handle partly unloaded Kamsarmax/Supramax vessels
    • Paradip Port:
      • Located near TSK (Tata Steel Kalinganagar) and TSA (Tata Steel Long Products)
      • Can handle ships up to Babycapes, under loaded capes at 16M draft can be handled at KICT (Kalinganagar Iron Ore Complex)
      • Rake availability to SER zones and higher rail freight to HMC and TSJ are challenges
    • Gopalpur Port:
      • Used during crisis handling
    • Gangavaram Port:
      • Used during crisis handling
    • Krishnapatnam Port:
      • Used during crisis handling
    • Vizag Port:
      • Used during crisis handling

    Port Infrastructure

    • The ports are equipped with
      • Ship Unloader
      • Grab Unloader
      • Harbour Mobile Crane

    Coastal Shipment Needs

    • Coastal movement of flat steel products expected to increase 4X by FY30
    • This will necessitate dedicated coastal berth at Paradip and Mumbai
    • Operational parameters for coastal movement:
      • Buy-in of BPR (Business Process Re-engineering) and IPPE (Integrated Procurement and Production Engineering)M&S teams for direct sales cargo destined for West and South
      • Loading of finished goods in different holds of vessels as per stowage plan
      • Cargo starts arriving at designated load port before Laycan
      • Vessel arrives as per pre-decided Laycan
      • 1st Leg Transportation (Rail/Road) from plants to load port (Dhamra/Paradeep,…)
      • 2nd Leg Transportation (Seaway) from load port to discharge ports (Katupalli/Mumbai/Kandla)
      • 3rd Leg Transportation (Rail/Road) from discharge ports to end customer
    • Challenges:
      • Limited availability of small vessels
      • Lack of backhaul cargoes
      • Infrastructure preparedness:
        • Haldia to be opened up for coastal movement for long products
        • Dedicated coastal berth
        • Bunkering and covered cargo storage facilities at Dhamra, Paradip and Haldia
        • Enhancing hinterland transport infrastructure
      • Digital preparedness:
        • Smart warehouse
        • ISOP for data management systems
        • Migrate to RPA based documentation processes

    Coastal Shipment Benefits

    • Financial:
      • Savings /ton vis a vis Ocean Freight
      • Cost Savings of 16.9 Cr in FY’24 and 3.5 Cr in Q1,FY’25

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    Related Documents

    Coastal Shipment PDF

    Description

    Explore the logistics operations of Group Shipping, the global shipping arm of Tata Steel. This quiz covers inbound and outbound logistics, discharge ports used, and key deliverables in the supply chain ecosystem. Test your knowledge on Tata Steel's shipping processes and infrastructure.

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