Tata Steel Group Shipping Overview
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Questions and Answers

What is the range of savings per ton depending on the product shipped?

  • Rs. 300-700
  • Rs. 200-900 (correct)
  • Rs. 100-800
  • Rs. 400-1000

    • Which factor is NOT mentioned as impacting savings in ocean freight?

  • Choice of shipping company (correct)
  • Ocean freight rates
  • Lead time of trans-shipment
  • Delays in loading

    • What is the estimated reduction in CO2 emissions per ton of coastal multi-modal movement compared to rail-road movement?

  • 20 kg
  • 15 kg
  • 5 kg
  • 10 kg (correct)

    • What is the net reduction in CO2 emissions reported for FY23?

    <p>~3433 tons</p> Signup and view all the answers

    What is one of the advantages mentioned for coastal multi-modal movement?

    <p>Rake shortage mitigation</p> Signup and view all the answers

    What is the role of coastal movement in the transportation process?

    <p>It is part of the transportation phases between load ports and discharge ports.</p> Signup and view all the answers

    Which transportation modes are specifically mentioned in the content?

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

    What is the significance of the Laycan in the transportation framework?

    <p>It is the schedule for when the vessel should arrive at the load port.</p> Signup and view all the answers

    What does the loading of FG in different holds of the vessel depend on?

    <p>The pre-decided stowage plan.</p> Signup and view all the answers

    Which entities are primarily involved in the direct sales cargo process?

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

    What sequence of transportation is represented as 1st, 2nd, and 3rd leg in the content?

    <p>Rail/Road, Seaway, and discharge ports</p> Signup and view all the answers

    Where does the first leg of transportation originate?

    <p>The loading points such as Dhamra/Paradeep</p> Signup and view all the answers

    Who are the end customers mentioned in the context of the transportation process?

    <p>Final recipients of the cargo at discharge ports</p> Signup and view all the answers

    What is the primary focus of coastal shipment in the context of Tata Steel's supply chain?

    <p>To serve as a key driver of the outbound supply chain</p> Signup and view all the answers

    Which of the following best describes the organizational structure of Group Shipping?

    <p>A strategic global arm with centralized processes</p> Signup and view all the answers

    What challenges are associated with coastal shipment in Tata Steel's operations?

    <p>Inadequate key driver identification and operational hurdles</p> Signup and view all the answers

    In the context of Tata Steel's logistics, what is one of the key deliverables of Group Shipping?

    <p>Creation of a customer-centric supply chain</p> Signup and view all the answers

    Which process is categorized under inbound supply chain operations for Tata Steel?

    <p>Discharging imports from global sources</p> Signup and view all the answers

    What is the total import volume handled by Tata Steel through Group Shipping as indicated in the operations?

    <p>22 MnT</p> Signup and view all the answers

    Which of the following represents a segment of the outbound shipping chain for Tata Steel?

    <p>Steel products to coastal stockyards</p> Signup and view all the answers

    What is one of the purposes of coastal shipment in Tata Steel's logistics?

    <p>To enhance operational efficiency through coastal routes</p> Signup and view all the answers

    What percentage of total shipping is attributed to road logistics in Tata Steel’s supply chain?

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

    Which characteristic distinguishes Group Shipping as a strategic arm for Tata Steel?

    <p>Global reach combined with localized service delivery</p> Signup and view all the answers

    What factor is expected to necessitate a dedicated coastal berth at Paradip and Mumbai by FY30?

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

    What is the expected coastal steel capacity from TSM/TSK by FY30 in million tons?

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

    Which year is projected to start seeing an increase in the coastal coefficient?

    <p>FY28</p> Signup and view all the answers

    What operational parameter reflects the considerations for coastal movement till FY30?

    <p>Exclusively TSM cargoes considered</p> Signup and view all the answers

    What is the primary assumption regarding cargoes for coastal movement until FY30?

    <p>Cargoes will remain the same as current planning</p> Signup and view all the answers

    What percentage of coastal movement capacity is expected at 0.5 million tons during FY24?

    <p>6%</p> Signup and view all the answers

    Which of the following years has the highest projected cargo size at 10% of coastal movements?

    <p>FY28</p> Signup and view all the answers

    What key change is assumed for rail/road capacity concerning increased steel volumes?

    <p>Insufficiency arises from competition</p> Signup and view all the answers

    What indicates a predicted increase of steel volumes from ECI in relation to coastal movement?

    <p>Insufficient rail and road infrastructure</p> Signup and view all the answers

    In what way is the port infrastructure expected to support demand up to FY30?

    <p>Need for dedicated berths due to demand</p> Signup and view all the answers

    What type of shipping management involves the coordination and negotiation with banks for export documentation?

    <p>Export Planning &amp; Documentation</p> Signup and view all the answers

    Which vessel type is classified as having a deadweight tonnage of 130-200 KT?

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

    In logistics strategy, what is the primary focus when constructing large size shipping contracts?

    <p>Value Creation and Lowest Cost to Serve</p> Signup and view all the answers

    Which activity is specifically associated with outbound shipping within group shipping?

    <p>Chartering Vessels</p> Signup and view all the answers

    What is the anticipated CO2 emission reduction per ton of raw material imports targeted for 2030?

    <p>0.010 t CO2</p> Signup and view all the answers

    Which role is primarily responsible for managing Hafen operations and logistics strategy?

    <p>Chief Port Services and Container Management</p> Signup and view all the answers

    What is the carrying capacity range of a Supramax vessel?

    <p>50-60 KT</p> Signup and view all the answers

    Which aspect of shipping logistics focuses on the management of post fixture activities?

    <p>Inbound Shipping</p> Signup and view all the answers

    What primary design is involved in the planning and scheduling of import cargo?

    <p>Network Design</p> Signup and view all the answers

    Which activity is included in the Export Planning & Documentation area?

    <p>Documentation Coordination</p> Signup and view all the answers

    What is the primary function of the Head of Inbound Shipping?

    <p>Supply Chain Management</p> Signup and view all the answers

    Which of the following is NOT a type of vessel in the fleet sector definition?

    <p>Ultramax</p> Signup and view all the answers

    What key principle does securing current and future logistics capacity adhere to?

    <p>Operational Efficiency</p> Signup and view all the answers

    What is the total number of vessels projected for FY28 across both Paradip and Dhamra?

    <p>~93</p> Signup and view all the answers

    Which of the following years shows the highest total number of vessels projected?

    <p>FY29</p> Signup and view all the answers

    What assumption is made regarding the coastal volumes for the South in the projections?

    <p>15% of total coastal volumes</p> Signup and view all the answers

    In FY30, what is the expected carrying capacity from the West?

    <p>20kt</p> Signup and view all the answers

    How are FG volumes transported to customers from the ports?

    <p>Through road/rail</p> Signup and view all the answers

    What is the main focus when planning for current month coastal shipments?

    <p>Meeting customer demands</p> Signup and view all the answers

    What is projected as a total number of vessels at Dhamra in FY29?

    <p>~36 per annum</p> Signup and view all the answers

    What percentage of total shipping is assumed for coastal movement based on available data?

    <p>15%</p> Signup and view all the answers

    What is the significance of the stowage plan in the loading of FG?

    <p>It outlines the arrangement of cargo in different holds.</p> Signup and view all the answers

    Which transportation modes are utilized in the 1st and 3rd legs of the movement?

    <p>Road and Rail</p> Signup and view all the answers

    Where does the 2nd leg of transportation take place?

    <p>Across waterways.</p> Signup and view all the answers

    What does the term 'Laycan' refer to in the logistics process?

    <p>The period for loading cargo.</p> Signup and view all the answers

    Which of the following best describes the role of coastal movement in Tata Steel's logistics?

    <p>To serve as an alternative to traditional rail transport.</p> Signup and view all the answers

    Which ports are identified as load ports in this transportation context?

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

    What factor influences the scheduling of vessel arrivals at ports?

    <p>Pre-decided Laycan.</p> Signup and view all the answers

    What is the primary outcome of effective load planning in shipping?

    <p>Enhanced ship turnaround time.</p> Signup and view all the answers

    What is one of the financial benefits mentioned for coastal shipments compared to traditional routes?

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

    What is one of the limitations mentioned regarding coastal shipment infrastructure?

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

    How has Tata Steel measured its savings from coastal shipment in FY’24?

    <p>By calculating savings of Rs.16.9 Cr.</p> Signup and view all the answers

    What type of facility is Haldia being opened up to support?

    <p>Coastal movement for long products</p> Signup and view all the answers

    What does digital preparedness involve in the context of coastal shipments?

    <p>Advanced Robotics Process Automation (RPA)</p> Signup and view all the answers

    Which of the following is a challenge for coastal shipment related to transportation infrastructure?

    <p>Inadequate hinterland transport infrastructure</p> Signup and view all the answers

    What aspect of coastal shipment can contribute to logistics improvements for Tata Steel?

    <p>Smart warehouse implementations</p> Signup and view all the answers

    What anticipated cargo characteristic does coastal shipment consider until FY30?

    <p>A steady increase in steel volumes</p> Signup and view all the answers

    What is the primary focus of Group Shipping within Tata Steel's supply chain?

    <p>Creating a strategic and customer-centric supply chain</p> Signup and view all the answers

    Which of the following represents a key element associated with coastal shipment?

    <p>Outbound shipping operations</p> Signup and view all the answers

    What is considered a benefit of incorporating coastal shipment into Tata Steel's operations?

    <p>Reduced transportation costs and emissions</p> Signup and view all the answers

    What type of operations are highlighted under the scope of outbound shipping in Group Shipping?

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

    Which geographic locations are primarily involved in the coastal shipping logistics for Tata Steel?

    <p>Dhamra, Haldia, and Paradip</p> Signup and view all the answers

    In the context of Group Shipping, which aspect is underlined as a critical challenge?

    <p>Coordination of outbound shipment logistics</p> Signup and view all the answers

    What is a critical component that is needed for effective coastal shipment operations?

    <p>Efficient loading and discharging processes</p> Signup and view all the answers

    How does Group Shipping contribute to Tata Steel's supply chain efficiency?

    <p>Through improved intermodal transfer times</p> Signup and view all the answers

    Which of the following accurately reflects the distribution percentage of shipping modes for FY 24?

    <p>36% Rail, 62% Road, 2% Coastal</p> Signup and view all the answers

    What aspect of coastal shipment is considered a significant enabler in the context of Tata Steel's supply chain?

    <p>Availability of shipping infrastructure</p> Signup and view all the answers

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

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

    Which ports are specifically mentioned as needing dedicated coastal berths by FY30?

    <p>Paradip and Mumbai</p> Signup and view all the answers

    What is the coastal coefficient expected to progressively increase from FY28?

    <p>10%</p> Signup and view all the answers

    What is the assumed capacity of coastal steel from TSM/TSK by FY30?

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

    Which of the following years is projected to start seeing cargo movement capacities of 0.5 million tons?

    <p>FY24</p> Signup and view all the answers

    What percentage increase in coastal co-efficient is indicative of expected rail/road insufficiencies?

    <p>8%</p> Signup and view all the answers

    Which of the following years has the highest projected cargo size at 10% of coastal movements?

    <p>FY28</p> Signup and view all the answers

    What assumption is made regarding cargoes for coastal movement until FY30?

    <p>Only TSK and TSM cargoes will be considered</p> Signup and view all the answers

    What operational parameter is crucial for coastal movement logistics until FY30?

    <p>Parcel size limitations</p> Signup and view all the answers

    Which projection follows from the expected increase in steel volumes from ECI?

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

    What is the purpose of a stowage plan in maritime shipping?

    <p>To provide a detailed loading plan based on various factors</p> Signup and view all the answers

    What does Laycan refer to in the context of shipping?

    <p>The window of time for vessel arrival and loading processes</p> Signup and view all the answers

    Which strategy is exemplified by the partnership with Tata Steel Group for coastal shipping?

    <p>Securing consistent back-haul cargo availability</p> Signup and view all the answers

    Which of the following accurately describes a dedicated coaster vessel?

    <p>A small vessel designed for shallow coastal navigation</p> Signup and view all the answers

    What is a key consideration for the choice of vessels for coastal shipments?

    <p>Vessel draft and tide constraints at discharge ports</p> Signup and view all the answers

    What is a primary function of Group Shipping within Tata Steel's supply chain?

    <p>Operating a customer-centric inbound and outbound supply chain</p> Signup and view all the answers

    Which challenge is associated with coastal shipment operations?

    <p>Infrastructure limitations</p> Signup and view all the answers

    Identify a key deliverable of Group Shipping for Tata Steel.

    <p>Creating a cost-effective shipping network</p> Signup and view all the answers

    What does coastal shipment primarily facilitate in Tata Steel's operations?

    <p>Improved supply chain performance</p> Signup and view all the answers

    Which of the following represents the 1st leg in Tata Steel's Group Shipping operations?

    <p>Rail transport to the discharge port</p> Signup and view all the answers

    What type of resources does the Group Shipping strategy enable importation of?

    <p>Raw materials like limestone and coal</p> Signup and view all the answers

    What percentage of Tata Steel's shipping is accounted for by rail logistics according to the Mode Distribution for FY 24?

    <p>62%</p> Signup and view all the answers

    What is one of the benefits of coastal shipment mentioned in Tata Steel's operations?

    <p>Reduction of transportation costs</p> Signup and view all the answers

    How does Group Shipping support the outbound logistics of Tata Steel?

    <p>By facilitating seamless transportation to customers</p> Signup and view all the answers

    Which aspect is closely monitored to ensure effective coastal shipment operations?

    <p>Shipping schedule adherence</p> Signup and view all the answers

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

    <p>4 times</p> Signup and view all the answers

    What is the expected coastal steel capacity from TSM/TSK by FY30 in million tons?

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

    Which year is projected to see an increase in the coastal coefficient?

    <p>FY28</p> Signup and view all the answers

    What assumption is made regarding cargoes for coastal movement until FY30?

    <p>Only TSM and TSK cargoes will be used</p> Signup and view all the answers

    During which fiscal year is the expected coastal movement capacity at 0.5 million tons?

    <p>FY24</p> Signup and view all the answers

    What key operational parameter affects coastal movement through FY30?

    <p>Parcel size</p> Signup and view all the answers

    What change is expected for rail/road capacity concerning increased steel volumes?

    <p>Insufficiency may arise</p> Signup and view all the answers

    Which factor necessitates a dedicated coastal berth at Paradip and Mumbai by FY30?

    <p>Higher coastal movement demand</p> Signup and view all the answers

    How is the parcel size for coastal movement characterized?

    <p>Based on operational requirements</p> Signup and view all the answers

    What type of transportation volumes are considered for coastal movement until FY30?

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

    What significant growth percentage is expected in coastal shipment volumes by FY30?

    <p>Over 300%</p> Signup and view all the answers

    Which innovative solution is deployed for Kandla discharge?

    <p>Deployment of mini-bulk carriers</p> Signup and view all the answers

    What is a key feature of the contracts for handling and port charges with Adanis?

    <p>Omnibus contract</p> Signup and view all the answers

    Which region does BPR-South serve in the context of coastal shipments?

    <p>Tamil Nadu region</p> Signup and view all the answers

    What is the expected coastal steel capacity from TSM/TSK by FY30?

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

    Which method is mentioned for reducing travel time for coastal shipments?

    <p>Continuous voyage charter</p> Signup and view all the answers

    What approximate volume is anticipated for coastal movement capacity during FY24?

    <p>0.5 million tons</p> Signup and view all the answers

    Which business unit is associated with the Gujarat region until 2020?

    <p>IPPE</p> Signup and view all the answers

    What type of contracts are utilized for West coastal operations?

    <p>Medium term contracts</p> Signup and view all the answers

    What is the expected volume for coastal shipment in FY30?

    <p>480 KT</p> Signup and view all the answers

    What is the estimated savings per ton for coastal shipment compared to traditional routes of transportation?

    <p>Rs. 2000</p> Signup and view all the answers

    Which factor is a challenge associated with coastal shipment?

    <p>Lack of small vessels</p> Signup and view all the answers

    What infrastructure development is planned for enhanced coastal movement?

    <p>Dedicated coastal berth</p> Signup and view all the answers

    What digital advance is planned to improve documentation processes in coastal shipments?

    <p>Migration to RPA based documentation</p> Signup and view all the answers

    How much was TSL's saving in Rs. reported in FY'24 due to coastal shipments?

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

    What enhancement is needed for hinterland transport related to coastal shipments?

    <p>Enhanced hinterland transport infrastructure</p> Signup and view all the answers

    Which location is being developed for coastal movement of long products?

    <p>Haldia</p> Signup and view all the answers

    What is one of the primary benefits of coastal shipping mentioned?

    <p>Savings compared to ocean freight</p> Signup and view all the answers

    Study Notes

    Group Shipping

    • Group Shipping is Tata Steel's global shipping and logistics arm
    • Founded in FY11
    • Provides strategic value creation and customer centric inbound and outbound supply chain across geographies

    Group Shipping - Inbound

    • Total import volume: 22 Mt
    • RM locations: Mines, discharge port, ocean logistics, load port
    • Load port locations: Oman, UAE, Australia, Indonesia, Canada, USA, South Africa
    • Discharge ports: Dhamra, Haldia, Paradip

    Group Shipping – Outbound

    • Total export volume: 1 Mt
    • Plant: Tata Steel plant (not specified)
    • Outbound locations: Stockyard, 2nd leg, loading point, 1st leg
    • Mode of transportation: Road, Rail, Coastal
    • Destinations: Steel customers, IBMD (not specified)

    Group Shipping – Key Deliverables

    • Strategy development and deployment in the following verticals:
      • Inbound and Outbound ocean transportation
      • Planning and Scheduling of import cargo
      • Coastal shipping
      • Ports and related land side logistics
      • Containers
      • Exports Planning & Documentation
    • Securing current and future logistics and infrastructure capacity
    • Construct and management of large size shipping & logistics contracts
    • Serve businesses on 'value creation and lowest cost to serve' principles

    Group Shipping - Organizational Structure

    • Vice President, TQM, GSP & Supply Chain
    • Chief Procurement Officer
    • Group Head, Chartering and Operations
    • Chief Chartering Operations and Maritime Sustainability
    • Chief Port Services and Container Management
    • Head, Planning and Scheduling
    • Head, Ports and Logistics Services
    • Head, Outbound Shipping and Logistics
    • Head, Inbound Shipping
    • Head, Export Planning and Documentation

    Group Shipping - Activity Details

    • Inbound Shipping: Shipping strategy and portfolio allocation, chartering, vessel planning, ship operations, vessel inspection, safety and environment, post fixture activities
    • Outbound & Operation: Supply chain design, exports and coastal management, logistics tariff management, safety and environment, post fixture activities
    • Planning and Scheduling: Network design, flow planning, shipping and logistics operations, vessel planning and scheduling
    • Export Planning and Documentation: Exports planning and coordination, pre and post shipment documentation, negotiation, coordination with banks
    • Container Management: Logistics strategy development, commercial deal structuring, container planning and scheduling, container operations, safety and environment
    • Port Strategy: Supply chain design, long term port strategy, port buffer management, safety and environment

    Group Shipping – Seaborne Flows - Spread across Atlantic and Pacific basins

    • Bulk carriers
      • Capesize: 130-200 KT
      • Baby Cape: 100-130 KT
      • Kamsarmax: 79-84 KT
      • Supramax: 50-60 KT

    Group Shipping – Timelines

    • ~22 mtpa of RM imports (3x)
    • ~6 mtpa of RM imports
    • ~40 mtpa of RM imports (2x)
    • 0.016 t CO2 emission per ton of RM imports
    • 0.010 t CO2 emission per ton of RM imports (40% reduction)

    Coastal Shipment

    • Need for Coastal: Flat products coastal steel movement to increase 4X by FY30
    • Necessity: Dedicated coastal berth at Paradip and Mumbai
    • Assumptions:
      • Only TSK and TSM cargoes considered for coastal movement till FY30
      • Coastal co-efficient progressively increased from FY28 as rail/road insufficiency may arise due to surge in steel volumes from ECI (Competition and Tata Steel)

    Bulk Carrier Classification Basis Size of Vessel

    • Less than 10 K DWT vessels are generally called mini bulkers
    • Max steel cargo that can be loaded on a vessel depends on:
      • DWT of vessel
      • Tank top strength
      • Cargo loading guideline advised by class

    Deadweight Tonnage (DWT)

    • A measure of how much weight a ship can carry.

    TMILL Direct Sales Cargo Movement

    • Direct sales cargo destined for West and South are shipped from TMILL plants (TSM/TSK)
    • Cargo starts arriving at the designated load port before the Laycan (latest acceptable date for loading)
    • Vessel arrives as per the pre-decided Laycan
    • Cargo is loaded in different holds of the vessel based on a stowage plan
    • Transportation occurs in three legs:
      • First leg: Rail/Road transport from the plant to the load port (Dhamra/Paradeep, etc.)
      • Second leg: Seaway transport from the load port to the discharge port (Katupalli/Mumbai/Kandla)
      • Third leg: Rail/Road transport from the discharge port to the end customer

    Cost Savings

    • Per ton savings range from Rs. 200-900 depending on the product shipped (BPRS/IPPE)
    • Key factors impacting savings:
      • Ocean freight (COA/Spot rate)
      • Type of marketing product shipped (BPRS/IPPE)
      • Choice of port (port DA charges, availability of berthing, distance from plants, road conditions, etc.)
      • Delays (loading/discharging/berthing)
      • Lead time of transshipment
    • A snapshot of savings in June 2024 shows a saving of Rs. 544 per ton, compared to Rs. 571 in May 2024

    Sustainability

    • Coastal multi-modal movement reduces CO2 emissions by ~10kg (~30%) per ton compared to rail-road movement to the West
    • Net CO2 emission reduction in FY23: ~3433 tons
    • Savings at US$40 per ton of CO2 - INR 1 Cr

    Other Advantages

    • Coils up to 34 tons can be handled with ease
    • Provides an alternative supply chain
    • Mitigates rake shortage crises effectively
    • Enables large-volume transfer of finished goods in one go

    Group Shipping Introduction

    • Group Shipping is the global shipping and logistics arm of the Tata Steel Group.
    • Established in FY11, it provides inbound and outbound supply chain services across Tata Steel's global operations.
    • Group Shipping focuses on strategic, value-creating, and customer-centric logistics solutions.
    • Key deliverables include: (details are not provided)

    Coastal Shipment: Key Drivers of Tata Steel's Supply Chain

    • Coastal shipment is crucial for Tata Steel's supply chain, especially for flat products.
    • Forecasts show a fourfold increase in coastal steel movement by FY30, leading to a demand for dedicated berths at Paradip and Mumbai.
    • This will involve:
      • Increased use of coastal shipments to move steel from TSM and TSK plants
      • A gradual increase in coastal shipments from FY28
      • Expected competition from other companies in the steel industry
    • The operational parameters for coastal shipments include:
      • Different parcel sizes depending on region (West: 15kt, South: 7kt)
      • A larger number of vessels at Paradip compared to Dhamra ports
      • Increasing vessel numbers from FY25 to FY30

    Coastal Shipment: The Process Explained

    • The process involves:
      • Planning and reviewing previous shipments
      • Receiving goods at designated load ports before laycan
      • Loading goods onto vessels based on stowage plans
      • Transportation by sea
      • Third-leg transportation to end customers using rail or road
    • Key support functions:
      • Ports and their teams (including stevedores)
      • Customers
    • Challenges include:
      • Limited availability of small vessels
      • Lack of backhaul cargoes
    • Solutions include:
      • Opening up the Haldia port for long products
      • Dedicated coastal berth
      • Bunkering and covered cargo storage facilities
      • Enhancing hinterland transport infrastructure
      • Digital preparedness: smart warehouses, ISO-compliant data management systems, and RPA-based document processes

    Coastal Shipment: Benefits

    • Significant financial savings when compared to ocean freight
    • An estimated saving of Rs. 16.9 Cr. in FY’24 and Rs. 3.5 Cr. in Q1, FY’25.

    Group Shipping

    • Tata Steel's global shipping and logistics arm, established in FY11
    • Operates both inbound and outbound supply chains
    • Key deliverables:
      • Inbound: RM (Raw Material) procurement, inbound transit, discharge at port, and plant loading
      • Outbound: Plant to stockyards, stockyards to customers, steel exports, and coastal shipments
    • Total import volume: 22 Million Tons
    • Total export volume: 1 Million Tons
    • RM Locations: Mines, discharge port, and ocean logistics

    Coastal Shipment

    • Key driver of Tata Steel's supply chain
    • Defined as the movement of goods by sea along the coast of a country
    • Enables optimal transportation of flat products, especially steel
    • Need:
      • Increased flat product coastal steel movement projected to be 4x by FY30
      • Will require dedicated coastal berths at Paradip and Mumbai
    • Challenges:
      • Vessel availability
      • Cabotage laws
      • Vessel age restrictions
      • Back-haul cargo availability
    • Strategic Enablers:
      • Tie-ups with Tata Group companies for back-haul cargoes (e.g., Tata Chemicals scrap)
      • Infrastructure preparedness:
        • Haldia port opening for coastal movement of long products
        • Dedicated coastal berth
        • Bunkering and covered cargo storage facilities
      • Digital preparedness:
        • Smart warehouses
        • ISOP for data management systems
        • RPA-based documentation processes
    • Benefits:
      • Financial savings compared to traditional transportation routes
      • Savings of Rs. 16.9 Cr. in FY'24 and Rs. 3.5 Cr. in Q1 FY'25
    • Future plans:
      • Extensive COAs (Contracts of Affreightment) for optimal freight rates
      • Business Units served: CRC-West, Khopoli, BPR-West, BPR-South, IPPE, IPPE-South
      • Innovative solutions:
        • Deployment of mini-bulk carriers (under 10,000 tons) for Kandla discharge
        • Continuous voyage charters for South India coastal routes
        • Omnibus contracts for handling and port charges with Adanis for Dhamra and Kattupalli ports
        • Medium-term contracts for West coast
        • Co-loading in cellular container vessels
    • Volume growth: Over 300% volume growth projected by FY30

    Operational Parameters

    • Laycan: The window in days for vessel arrival, loading, documentation, and sailing.
    • Stowage plan: Detailed loading plan inside the vessel, considering coil weight, discharge ports, and vessel design.

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    Coastal Shipment PDF

    Description

    Explore the logistics and shipping strategy of Tata Steel's Group Shipping, focusing on both inbound and outbound operations. This quiz covers key deliverables, import and export volumes, and various transportation modes utilized across global locations. Test your knowledge about the strategic value creation and customer-centric supply chain management implemented by Tata Steel.

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