Page 1 of 45 INTERNSHIP REPORT ON OVERALL ACTIVITIES OF A Multi-Modal Transportation & Logistics (Shipping and C&F Agents, Transportation and Equipments Supplier). A WORK STUDY IN I.B.S ASSOCIATES Aziz Chamber(3 rd Floor), 6 Jubilee Road,Chittagong. e-mail: [email protected], ibsa@bbts. net
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Page 1 of 33
INTERNSHIP REPORT ON
OVERALL ACTIVITIES OF
A Multi-Modal Transportation & Logistics
(Shipping and C&F Agents, Transportation and Equipments
The world today is fast changing as new businesses are emerging replacing
the old. In the new millennium, there is growing unease amongst the people
about their future. Many countries are experiencing chronic unemployment, a
persistent deficit balance of payment and deteriorating purchasing power.
Like other businesses, we must enrich our knowledge and the dynamics of
international Shipping and the shipping tycoons. No country is self-sufficient
with her requirements of like; food, medicine, technology etc. She is to import
those she does not produce and export those she produces in abundance.
These imports and exports normally are carried by Ships, Tankers and Barges
approximately 90% of the world trade. The rest 10% of the merchandize are
carried by Airfreight and Roadways. Various countries have been trying to
increase the transportation facilities by global multimodal transport system
and also enlarging their road links with neighboring countries. But the
necessity of Sea-born Trade will never decline, rather it is bound to expand
leaps and bounds.
At present there are around 50,000 various types of Merchant Ships, Tankers and
Barges engaged in trading worldwide, transporting every kind of cargos. These
Vessels are registered in over 150 nations, and manned by over one million
seafarers belonging to almost every country of the world.
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ACKNOWLEDGEMENT
Internship program is an integral part of BBA/MBA course. Every
BBA/MBA student is deputed to different organizations to learn
something within the pre-stipulated time by observing these
organizations' daily practices. In this regard, my internship was
arranged at Chittagong Office: I.B.S Associates, Aziz Chamber
(3rd Floor), 6 Jubilee Road, Chittagong and their Head
Office,Dhaka. In accordance with the Counseling and active
guidance of the Lecturer Engineer -------------, University Name.
My heartiest thanks and gratitude to him for his enthusiastic
guidance and sympathetic considerations during the entire phase
of the study made enabled me to prepare this report.
It would have been almost impossible to bring out this report
without the help of the members and officers of IBSA who always
rendered enthusiasm to assist and cooperate.
First and foremost, my heartiest felicitations and thanks to the
gentlemen who had been very keen at exposing me to the precise
ways to prepare this compact report. It would be unwise on my part if I
do not acknowledge the superb support of all the officers, especially of
those whom I worked with. In this connection, I place on Record Mr. Mr.
Salahuddin Y Jamal (SEO - Head of Correspondence) Mr. A.T.M Tofiq Ahmed
(Management Representative).
My thanks also to; Mr. Mohammed Musa (GM-Shipping), Mr.
Mohammed Jaglul Islam (Executive-Shipping & Transport), Mr.
Anwer Hossain (Manager-HS&E) for their spontaneous assistance.
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I shall be failing in my duties for not mentioning the excellent
working environment and the positive group behavior of this
Sterling organization, which tremendously extended their
cooperation, even allowing me to observe the banking activities,
and also exposures with the staff and allowing my stay for long
two months without any hesitation whatsoever.
In fine I tried my level best, and worked diligently with utmost
sincerity. My apologies to the readers for any printing mistakes, if
found any.
Name: ----------------------
ID-----------------------------
Program: ---------------
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LETTER OF SUBMISSION {
DATE:------------------
Engineer --------------------------Lecturer, University Name-------------Chittagong.
Subject: Solicitation for acceptance of the internship report.
Honj’ble Sir,
I respectfully avail the pleasure to submit my Internship Report on "Overall activities of Shipping Agent of integrated maritime logistics support Contractors including Customs Clearing, Forwarding services and Mega Heavy Duty Equipment suppliers in Bangladesh"-----a work study in Messrs I.B.S. Associates, Aziz Chamber (3rd Floor), 6 Jubilee Road, Chittagong-4000. I was assigned to the above-mentioned company for a period of 02 (Two) months. During my industrial tour in the organization I have enriched myself and also gained exposures regarding practical aspects of Shipping & Logistics Services Business.
In fine, I am willing to physically attend for explaining to any queries relating to my captioned Internship Report.
Nevertheless I shall, remain ever grateful if your honor will oblige me by kindly accepting my enclosed report and pardon me for any short comings, which may have occurred despite my utmost endeavor.
Chapter 1: Introduction Page No.Executive summary 1Introduction of the study 2Objective of the study 3Scope of the study 3Methodology of the study 4Limitations of the study 4Chapter 2: Company ProfileHistory and background of I.B.S Associates 5Mission of IBSA 6Vision of IBSA 7Values of IBSA 7Objectives of IBSA 7Business Functions of IBSA 8Business philosophy of IBSA 8Management structure of IBSA 9Branch network of IBSA 11List of high officials 11Marketing aspects of IBSA 13International aspects of IBSA 15Chapter 3: Various Activities of I.B.S AssociatesVarious services rendered by IBSA 16Divisions of IBSA 19Chapter 4: Performance AnalysisFinancial Aspects of IBSA 52Growth in different business of IBSA from 1988 to 2003 53I.B.S Associates at a Glance from 1988 to 2003 58Chapter 5: Financial Position of I.B.S AssociatesInvestment of IBSA for the year 2003 59Balance Sheet of IBSA 60Income Statement of IBSA 62Chapter 6 : Profitability AnalysisProfitability Ratios 63Chapter 7 : Productivity AnalysisProductivity Ratios 65Chapter 8: Problems & RecommendationsProblems 67Major Findings 68Recommendations 69Conclusion 70Bibliography 71
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EXECUTIVE SUMMARY
It is a great pleasure enabling me for completing my internship
job with a well reported private organization (Shipping Agent of
integrated maritime logistics support Contractors including
Customs Clearing, Forwarding services and Mega Heavy Duty
Equipment suppliers) like in I.B.S. Associates, Aziz Chamber, 6
Jubilee Road, Chittagong. Through my practical exposure with
this organization was only two months. It has provided me a wide
range of scope and facilities to observe the procedures of
shipping functions especially focusing on foreign Shipping
Agencies’ operation systems.
After successful completion of the practical orientation in IBS
Associates, I have come to know a lot of things such as how a
Shipping and C&F Agents deals with their customers; how they
achieve foreign Contract specially Bangladesh Oil & Gas
Exploration & Development under the Ministry of oil, Gas and
Mineral Resources Corporation (Petrobangla) and how they work
with International Energy Conglomerates like; Cairn Energy
12,13 &14 Limited, Tullow Bangladesh Limited, Total E & P
Bangladesh, currently operating in Bangladesh under
Bangladesh Petroleum Act 1974 opens the opportunities for
international petroleum industry to explore develop and produce
oil and gas under Production Sharing Contract (PSC). Mode of
fund mobilization for their various investment projects, banking
operations, mode of communications with both their Principals
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and local High Command, dedication of their High Command to
their organizational goals under Corporate Culture due to,
Corporate Social Responsibility rendered by their employers.
The study covers different aspects of Project Handled and
practical mode of operations both; Offshore and Onshore
operations by IBS Associates (IBSA) including introduction, history
of the organization, divisions of IBSA, management hierarchy of
these divisions, marketing aspects of IBSA, international aspects
of IBSA, financial aspects of IBSA, HSE and ISO 9001:2000
compatible aspects etc.,
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INTRODUCTION OF THE STUDY
The concluding project of the MBA course is to prepare a
dissertation or internship report. For this purpose I opted IBSA
for4 preparation of internship report. The world today has
become a rapidly dynamic and robust entity. None in this
competitive arena will be successful unless he or she is linked
with practical orientation. In this respect internship program
provides a ray of hope in connecting the theoretical knowledge to
the practical knowledge we had earlier acquired.
Transportation investments in developing countries and regions
are made mainly on the basis of their impact on the development
of the area or country. Given that governments normally provide
and maintain the basic facilities such as Roads and Highways,
Seaports and Airports, the Taxpayers rather than the Users pay
the cost of transportation. The question is why should these
facilities be paid for by the Society? or how should these be
financially sustained?
Economic development is not a deterministic process, and the
singling out of a single component of capital formation as a
causal agent is an oversimplification. The process of development
is a complex interaction between human and material resources
with investment in transportation providing a possibility for
developing other resources. It has also been pointed out that
transportation improvements may release working capital which
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can be used more productivity elsewhere, given that there are
suitable productive out-lets.
OBJECTIVE OF THE INTERNSHIP PROGRAM:
The main objective of the Internship program under MBA courses provided by
University of Science & Technology Chittagong (USTC) is to obtain practical
knowledge and related jobs to make the students prepared for their bright career. In
addition to that the objectives of internship program in reputed Shipping, Logistics,
Clearing & Forwarding Agencies provides a major practical knowledge of the
Bangladesh energy sector i.e. Oil & Gas Exploration, Development and Distribution in
the Offshore and Onshore in the various Petrobangla Blocks. I.B.S Associates
dealings are as follows:
1. To familiarize with different functional areas of foreign Ship Handling (Marine
& Logistics Support).
2. To acquire knowledge on Shipping, Clearing & Forwarding Agency.
3. To acquire the organizational behavior patterns in discharging responsibility
as an executive.
4. To gather practical knowledge on the systems, procedures and techniques
used in Multi-Module transport industries.
5. For exposures the interaction between various stakeholders namely;
marketing, finance, other functional departments in the organization, also
with various interest groups including the customers, suppliers, middle-men,
financial bodies and various Statutory Agencies.
6. To learn the process of formulating objectives, policies, programs and their
implementation day to day in the organization.
7. To learn Project Materials procurement and Handling specially Oil and Gas
field related aspects.
8. To gather knowledge of Project Works Accounting Mode and Banking
procedure including Ship’s disbursement and foreign remittance issues.
9. To familiarize with merchandising other related jobs in mini and mega
Projects.
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10. To gather knowledge about HS&E hazardous materials handling in explosives
and dangerous goods in the Oil and Gas Projects.
11. To find out the entire organizational structure.
12. To understand the services offered and to understand the mechanism of the
services available.
13. Another objective was to get exposure of the real life work and idea of how is
like working for an organization in gaining experience which will help me in
my future practical life.
SCOPE OF THE STUDY.This Report covers position in a reputed Shipping, Logistics, Clearing & Forwarding Agency providing a major practical knowledge of the Bangladesh energy sector i.e. Oil & Gas Exploration, Development and Distribution in the Offshore and Onshore in the various Petrobangla Blocks. I.B.S Associates, Aziz chamber, 6 Jubilee road, Chittagong focuses on the overview of background, management and organizational structure, functions, foreign trade business, Ship handling and Chandelling, Ship’s disbursement, clearing and forwarding formalities & Heavy equipment services in local and multinational project, general service organizational activities, Project estimation, Accounting Mode, local & foreign Banking procedures and foreign remittances issues.
While preparing the internship report I discussed with the shipping and C&F
executives, HS&E expert, vendors and clients of IBSA and then I came to know
how they do their job. This report helped me to practical knowledge about
Shipping, Transportation and Logistics sector.
METHODOLOGY OF THE STUDY
The present study is based on theoretical analysis. Collected data and
information were tabulated, processed and analyzed critically in order to
make the program more informative, fruitful and purposeful one. For
preparing this report data have been collected from both Primary and
Secondary sources.
(1) Primary Data:
Primary data were collected through conversation; direct question and
observation were formed in this connection. I am grateful to the following
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Executive of the I.B.S Associates, Aziz Chamber 6 Jubilee Road, Chittagong,
for their nice cooperation in getting primary data:
Mr. Sal Y Jamal (Head of Correspondence).
Mr. A.T.M Tofiq Ahmeb (Management Representative).
Mr. Syed Mohammed Musa (S.M & Head of Shipping).
Mr. Mr. Gopal Das (Manager HR).
Mr. Mohammed Jaglul Islam (Finance & Accounts).
Mr. MD. Anower Hossain (Manager HS&E).
Mr. MD. Abu Taher (Team Leader, Rigger).
Mr. Mr. Babul Gosh (Foreman, Equipment).
(2) Secondary Data:
I have collected my secondary Data from I.B.S Associates’s Web Site,
2nd Drilling Campaign under Cairn Energy at Block 16 (Hatiya & Magnama)
Shipping Services
Serving as owner's agent
10. PREMIUM DRILLING (CAYMAN) LTD.
Singapore
Still Jack-up Drilling RIG at Hatiya & Magnama 2007 -
2008
Shipping Services
Serving as owner's agent
11. PACIFIC RICHFIELD MARINE PTE. LTD.
Singapore 1st & 2nd Drilling Campaign under Cairn Energy at Block 16 (Kutubdia, Sangu Alpha, Hatiya & Magnama) -2006, 2007 & 2008 and 3D Seismic Survey under TOTAL E&P at Teknaf, St. Martin & Cox's Bazzar Blocks 17 & 18.
Shipping Services
Serving as owner's agent
12. SWIRE PACIFIC OFFSHORE OPERATIONS PTE LTD.
Singapore
Supply/Support Vessel under Cairn Energy at Block 16 (Sangu Alpha Platform) 2005,2006,2007,
2008
Shipping Services
Serving as owner's agent
13. AL MUBARAK OVERSEAS LLC
Dubai , U.A.E.
Supply/Support Vessel for 1st & 2nd Drilling Campaign under Cairn Energy at Block 16 (Kutubdia, Sangu Alpha, Hatiya & Magnama) 2006,
2007, 2008
Shipping Services
Serving as owner's agent
14. SEADRILL MANAGEMENT(S) PVT. LTD.
Singapore
Mobile Offshore Drilling Unit at Kutubdia -Sangu Alpha 2007
Shipping Services
Serving as owner's agent
15. MOMENTUM ENGINEERING, UAE
Dubai , U.A.E.
Warebarge for 1st Drilling Campaign for Oil & Gas Exploration at Sangu Alpha- Kutubdia, Block 16, under Carin Energy
Shipping Services
Serving as owner's agent
16. TIDE WATER MARINE INTERNATIONAL PTE LTD.
Singapore
Support Vessel for Cairn Energy at Block 16 at Sagnu Alph 2005-2006
Shipping Services
Serving as owner's agent
17. HALLIBURTON INTERNATIONAL INC.
Dhaka-1212.
Sangu Operations Clearing, Forwarding and Transportation
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Cairn Energy Sangu Field Limited (Sangu Operations) : Our long term
Association with Cairn Energy Sangu Field Limited dates back to 1995, till to-
day covering Shipping, Clearing & Forwarding of their entire Oil & Gas Well
Imports & Exports equipments. In Shipping, this covers their Off-shore vessels