Tata Steel Logistics Webinar

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Questions and Answers

What is the purpose of the Laycan in the cargo loading process?

  • It establishes the price for shipping the cargo.
  • It indicates the maximum load capacity of the vessel.
  • It schedules the arrival of the vessel at the load port. (correct)
  • It determines the sequence for unloading cargo.

Which transportation method is used for the 1st leg of the journey?

  • Pipeline transportation
  • Air freight only
  • Rail or Road (correct)
  • Maritime only

What type of cargo teams are involved in direct sales for loading?

  • Only custom agents
  • Port operation teams including stevedores (correct)
  • Only port authorities
  • Warehouse staff exclusively

Where do discharge ports in the transportation plan typically occur?

<p>Katupalli, Mumbai, and Kandla (B)</p> Signup and view all the answers

What does FG refer to in the context of loading?

<p>Finished Goods (C)</p> Signup and view all the answers

What is the role of the Coastal Movement in cargo transportation?

<p>It connects different load ports to discharge ports via sea transport. (C)</p> Signup and view all the answers

What does the 'stowage plan' dictate during the loading process?

<p>The layout and arrangement of different cargo types in the vessel. (B)</p> Signup and view all the answers

Which locations are specifically noted as potential load ports?

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

What percentage of volume growth is mentioned for the period leading to FY30?

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

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

<p>IPPE (B)</p> Signup and view all the answers

What innovative solution was deployed for the Kandla discharge?

<p>Mini-bulk carriers (B)</p> Signup and view all the answers

What type of contract was mentioned for handling and port charges with Adanis?

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

Which region is specifically mentioned in conjunction with BPR-West?

<p>Maharashtra and Gujarat (D)</p> Signup and view all the answers

What is the expected material evacuation availability by FY30?

<p>2000 kt (C)</p> Signup and view all the answers

Which type of charter is indicated for South India coastal operations?

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

What is the capacity of vessels mentioned for mini-bulk carriers?

<p>Sub 10k (B)</p> Signup and view all the answers

What new product or route does the content suggest is part of the strategic development?

<p>New plants and routes (D)</p> Signup and view all the answers

How many KT were handled in FY23 according to the provided data?

<p>342KT (D)</p> Signup and view all the answers

What is the primary definition of coastal shipping in India?

<p>Transportation of products up to 12 nautical miles from the baseline. (A)</p> Signup and view all the answers

What major challenge has increased the need for coastal shipments since 2022?

<p>Shortage of rail rakes due to post-pandemic recovery. (D)</p> Signup and view all the answers

Which mode of transport is described as an effective and greener alternative for finished goods movement?

<p>Coastal multi-modal shipping. (C)</p> Signup and view all the answers

Which vessel had the highest total load in June '24?

<p>MV Evanthia (C)</p> Signup and view all the answers

What was the total savings (in INR/ton) for MV Infinity in August '24?

<p>-1.35 (B)</p> Signup and view all the answers

What significant surcharge was reinstated by Indian Railways after a 3-year hiatus?

<p>Busy season surcharge of 15%. (A)</p> Signup and view all the answers

Which month recorded the highest savings per ton across all vessels?

<p>May '24 (C)</p> Signup and view all the answers

What is a key benefit of coastal shipment for Tata Steel's operationalization?

<p>Ensures reliable supply while maintaining product quality. (C)</p> Signup and view all the answers

How many total tons were loaded by the MV Vantage during April '24?

<p>25464 (D)</p> Signup and view all the answers

Which statement best describes the type of vessels commonly used in coastal shipping?

<p>Smaller vessels such as barges and ferries. (D)</p> Signup and view all the answers

During which month did MV Delphinus have the highest total tonnage?

<p>July '24 (C)</p> Signup and view all the answers

Which geographical areas are primarily targeted for steel shipments through coastal shipping?

<p>Southern and western regions of India. (D)</p> Signup and view all the answers

What environmental concern is lessened by using coastal shipping instead of land transport?

<p>High greenhouse gas emissions. (A)</p> Signup and view all the answers

What was the total load port type for MV Caravel in May '24?

<p>HRC (D)</p> Signup and view all the answers

What was the cumulative total loads (in tons) for FY'25 till date?

<p>117143 (A)</p> Signup and view all the answers

Which vessel had the lowest total savings in the data?

<p>MV Infinity (B)</p> Signup and view all the answers

What is one of the main topics covered in the webinar on Group Shipping?

<p>Introduction to Group Shipping (B)</p> Signup and view all the answers

Which of these locations is NOT mentioned as a discharge port in the Group Shipping framework?

<p>Mumbai (B)</p> Signup and view all the answers

What role does coastal shipment play in the supply chain of Tata Steel?

<p>Serving as a key driver of the supply chain (D)</p> Signup and view all the answers

Which of these is a key deliverable of Group Shipping?

<p>Customer-Centric Inbound and Outbound Supply Chain (B)</p> Signup and view all the answers

What is a characteristic of the coastal shipment operations discussed?

<p>Includes outbound shipping operations (D)</p> Signup and view all the answers

What does the Group Shipping model emphasize in its operations?

<p>Global Shipping and Logistics (A)</p> Signup and view all the answers

Which materials are listed as inbound resources in the Group Shipping diagram?

<p>Limestone and Coal (A)</p> Signup and view all the answers

What is the total import volume mentioned for Group Shipping?

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

Which of the following is a challenge mentioned in the Group Shipping operations?

<p>Inadequate coastal infrastructure (B)</p> Signup and view all the answers

What does the term '2nd leg' refer to in the shipping context?

<p>Transport from stockyard to customers (A)</p> Signup and view all the answers

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

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

What is the key reason for the necessity of dedicated coastal berths at Paradip and Mumbai?

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

What is the coastal co-efficient for FY28 according to the operational parameters?

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

What are TSM and TSK cargoes considered for until FY30?

<p>Coastal movement (C)</p> Signup and view all the answers

Which fiscal year will see the coastal co-efficient start to increase progressively?

<p>FY28 (C)</p> Signup and view all the answers

What is the primary operational difficulty anticipated that may trigger the increase in coastal co-efficient?

<p>Insufficient rail/road capacity (B)</p> Signup and view all the answers

Which of the following figures represents TSM crude steel capacity for FY30?

<p>13.0 million tons (A)</p> Signup and view all the answers

What does the increase in coastal steel movement necessitate regarding infrastructure?

<p>Dedicated coastal berths (B)</p> Signup and view all the answers

Which fiscal year is forecasted to have the largest crude steel capacity based on the given data?

<p>FY30 (C)</p> Signup and view all the answers

How is the forecasted increase in coastal steel movement expected to impact the operational parameters?

<p>Increased coastal co-efficient (C)</p> Signup and view all the answers

Flashcards

Group Shipping

The global shipping & logistics arm of Tata Steel Group, handling strategic, value-creating, and customer-centric inbound and outbound supply chains for Tata Steel.

Coastal Shipment

Shipping goods within a country's coastal waters, a key driver for Tata Steel's supply chain.

Inbound Shipping

Transportation of raw materials (like iron ore, coal etc.) to Tata Steel facilities.

Outbound Shipping

Shipping finished steel products from Tata Steel facilities to customers.

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Port Operations

Activities involved in loading, unloading, and managing cargo at ports.

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Raw Material Procurement

Process of acquiring raw materials from external sources for Tata Steel production.

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Supply Chain

The complete process from procurement of raw materials to delivery of finished products to customers.

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Key Deliverables of Group Shipping

The important aims and outcomes of the Group Shipping operation such as creating a strategic, value-creating and customer-centric inbound and outbound supply chain for Tata Steel Group.

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Ocean Logistics

Process of moving goods via sea transport (ships) part of a bigger Global supply chain

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Group Shipping Footprint

All the locations and areas where the Group Shipping operation of Tata Steel takes place for their inbound and outbound logistics

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Coastal Shipment

Movement of goods between Indian ports along the coastline, within 12 nautical miles of the baseline.

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Tata Steel Coastal shipment

Trans-shipment of steel from East coast to South/West India for customers.

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Coastal Multimodal

Combined transportation using coastal shipping and other modes like rail or road.

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Rail/Road Issues

Shortage of railway rakes and high railway surcharges negatively impacting steel transport.

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FG Movement Issues

Problems with reliability and sustainability of steel transport using rail/road

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GHG Emissions

Greenhouse gases released during transport, in this context, referring to rail and road transport.

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Inland Waterways

Transportation of steel through waterways (rivers) from South India to East India.

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Operationalisation of Affreightment

Improving transport of cargoes using new methodologies and partnerships for ease of international trade documents and LC discounting.

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Coastal Steel Movement (FY30)

Projected 4X increase in coastal steel transportation across India's coasts by fiscal year 2030.

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Paradip & Mumbai Ports

Essential coastal berths required to accommodate the projected increase in steel transportation.

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TSM/TSK Coastal Coefficients

Projected percentage of steel shipments moved along India's coasts by TSM and TSK steel plants (e.g. 2.0 to 19.5 million tons by FY30)

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FY24-FY30 Steel Growth

Incremental growth plan for steel production between fiscal years 2024 and 2030, by TSM and TSK plants (in millions of tons).

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Coastal Transportation Constraints

Anticipated rail/road transport limitations could hinder coastal steel shipment growth as steel production volume increases in the future.

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ECl Competition Effect

Predicted impact of steel plant ECI competition (and other steel plants like Tata Steel) on total steel volumes shipped and its subsequent effect on coastal logistics.

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Dedicated Coastal Berth

Specifically designated locations at ports like Paradip and Mumbai for loading of steel product into coastal shipping vessels.

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Coastal Co-efficient Increase

The steadily increasing proportion of the cargo shipment that will be moved via coastal routes as opposed to rail or road.

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Parcel Size

Quantity or volume of shipments being transported in single delivery units. Note: This data point is mentioned on the operational parameters.

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Number of Deliveries

Number of units transported within a specific timeframe. Note: This data point is mentioned on the operational parameters.

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TMILL Cargo Flow

The process of transporting steel products from the plant to customers across different stages (loading, sea travel, unloading).

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Laycan

The scheduled time a vessel is available for loading or unloading cargo.

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Load Port

The port where steel is loaded onto a vessel for transportation.

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Discharge Port

The port where steel is unloaded from a vessel.

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Coastal Movement (3 Legs)

The transportation of steel cargo between ports along the Indian coast.

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Stowage Plan

A detailed arrangement for storing cargo in different holds of a vessel.

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FG Loading

Final Goods are loaded into designated ship sections.

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Vessel Arrival

The time the ship arrives at the pre-determined port.

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Coastal Shipment FY'25

Tata Steel's projected coastal shipment volumes and savings for fiscal year 2025.

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FY24-FY30 Steel Growth

Estimates of steel production from TSM and TSK plants increased between 2024–2030.

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Coastal Transportation Volume

Expected growth of coastal shipment for steel (over 300%),

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Mini-bulk carriers

Small ships used for coastal shipments, especially for Kandla discharges

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Coastal Co-loading

Loading steel products with other goods in container ships.

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Continuous Voyage Charter (South India)

Long-term contracts for transporting goods in South India by ship.

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Omnibus Contract (Dhamra+Kattupalli)

Comprehensive agreement for handling and port fees at specific ports for business needs.

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Business Unit Locations

Different areas where steel shipment operations are focused (CRC-West, Khopoli, etc.).

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Shipment Volumes (FY19-FY25)

Amount of goods shipped for various years, highlighted in the data chart.

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Innovative Solutions (for Steel)

Implementations of new strategies and methods for transporting steel.

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Discharge Port

The port where cargo is unloaded from a vessel.

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Load Port

The port where cargo is loaded onto a vessel.

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Vessel Arrival

The time a ship reaches a designated port.

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TSK

A Tata Steel facility or division related to shipping.

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TSM

Another Tata Steel facility or division related to shipping.

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Total Savings (INR/ton)

The overall cost reduction in Indian Rupees per tonne of cargo, from shipping.

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Discharge Savings

Amount saved from the discharge process(unloading cargo) at a certain port, in INR/ton.

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Load Port

The port where a vessel loads goods.

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Study Notes

Tata Steel Webinar on Logistics

  • Webinar Topic: SAKSHAM: IL6 Webinar for Logistics, focusing on Group Shipping and Coastal Shipment
  • Session Structure: The webinar's structure includes an introduction to group shipping, covering relevance to Tata Steel's supply chain and key deliverables; details of the organizational structure, sections, and port operations; and a dedicated section on the importance of coastal shipment. Coastal shipping is further evaluated as a key driver for Tata Steel's supply chain, with breakdowns on the need and enablers, as well as challenges, solutions, and benefits.

Key Deliverables of Group Shipping

  • Strategic Focus: Group Shipping aims to develop and deploy strategies focused on inbound and outbound ocean transportation, planning, and scheduling import cargo, coastal shipping, ports and related landside logistics, and container operations.
  • Capacity Securing: Group Shipping actively secures existing and future logistics, and infrastructure capacity.
  • Large-Scale Contracts: Building and managing large-scale shipping and logistics contracts is a key objective.
  • Cost-Effectiveness: The main objective is to serve businesses on the principle of value creation and lowest cost to serve.

Group Shipping - Organizational Structure

  • Hierarchical: The structure is hierarchical, headed by a Chief Procurement Officer, with a Vice President overseeing TQM, GSP & Supply Chain.
  • Chief Port Services and Container Management: This unit, is responsible for port services and container management.
  • Other Roles: Group Head Chartering & Operations; Chief Chartering Operations and Maritime Sustainability; Heads under these roles include Heads for Planning & Scheduling, Inbound Shipping, Outbound Shipping, Export Planning & Documentation, Port & Logistics, etc.
  • Reporting structure: The inbound and outbound team report to the Group Head.

Group Shipping - Activity Details

  • Inbound Focus: Activities cover shipping strategy, portfolio allocation, chartering, vessel planning, ship operations, vessel inspection, monitoring safety and environmental post-fixture activities.
  • Outbound Focus: Outbound activities encompass supply chain design, network design and flow, exports and planning, coastal logistics strategy, commercial deal development, port and rail planning and scheduling, sourcing, tender management, and contracting.
  • Key responsibilities: Container Management focuses on supply chain design, container management strategy, planning and scheduling, operations, safety and environmental aspects, commercial deal structuring, and more.

Group Shipping - Timelines

  • 2010: Import volumes from Haldia and Paradip utilizing Panama and Supramax vessels.
  • 2024: Expanded import volumes (3x), increased vessel types such as Capesizes, and a new port (Dhamra)
  • 2030: Projected significant growth in import volumes (4x), along with the addition of increased vessel capacity.

Freight Classification

  • Vessel Classification: Bulk carrier classification is based on the vessel size (DWT), with Handysize, Handymax, Supramax, Panamax, Post-Panamax, Capesize, and VLCC being major categories.
  • Cargo Loading: Cargo loading capacity is a function of vessel DWT, tank top capacity and cargo loading guidelines.

Port Infrastructure and Operations

  • Port Infrastructure: The webinar detailed various types of port infrastructure (ship unloaders, grab unloaders, and harbour mobile cranes) and provided visual examples (aerial view of Dhamra Port).
  • Steel Cargo Operations: Images and descriptions illustrated steel cargo loading operations.
  • Port Overview: Different regional discharge ports are highlighted. Including, but not limited to, locations such as Haldia, Dhamra, Paradip and other ports. Specific data regarding rail freight, vessel handling capabilities, and availability are included, along with details on operations challenges and how they are addressed.

Coastal Shipment - Benefits

  • Cost Savings: Coastal shipment provides substantial savings compared to traditional transport, based on data illustrated for 2024-2025.
  • Sustainability: Coastal shipment can reduce CO2 emissions substantially, as shown in the projected savings figures.
  • Increased Efficiency: Coastal shipments are designed to enhance operational efficiency, especially given current and historical issues involving rail.

Coastal Shipment - Challenges and Enablers

  • Cabotage Laws: These laws represent a challenge, as do limitations in vessel size and availability in many cases.
  • Infrastructure is required so that coastal voyages can be efficient and are adequately equipped.
  • Cargo Availability can affect logistics.

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