indian port sector-1

8/8/2019 Indian Port Sector-1

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Indian Port Sector

By Hans Ole Madsen CEO, South Asia for A.P. Moller-Maersk

Port Pipavav


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About A.P. Moller-Maersk

> Established in Svendborg, Denmark in 1904

> More than 110,000 employees in over 125 countries

> Global group turnover of USD 40 Billion


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Main Business Activities

Other Shipping related activities

> Transport of crude oil, refined productsand gas by Maersk Tankers

> Maersk Supply provides supply vessels

for anchor-handling, cable laying etc

> Maersk Contractors is involved inmobile production units and drillingrigs

> Over 260 vessels and rigs operated


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Energy

> Production and exploration of oiland gas

> Production Activities in Denmark,United Kingdom, Qatar, Algeria andKazakhstan

> Exploration activities in the NorthSea (Denmark, United Kingdom,Norway and Germany), Algeria,

Morocco, Angola, Oman, Brazil,Surinam, Colombia andTurkmenistan


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Retail and other industry

> Supermarkets and hypermarkets inEurope and UK

> Brands include the Ftex stores, theNetto stores and the Bilka hypermarkets

> Shipyards in Denmark, Germany and theBaltic countries

> Industrial production of plastic products

> Star Air engaged in contract parcel flyingin Europe

> 50% ownership of Martinair Hollandengaged in air freights and charterservice for passenger


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Our Presence in India

> Maersk Line operating in India since 1952

> The leading container shipping line in India

> Nationwide presence through 33 offices

> Employs over 5,500 people in India

> Established the 1st Private CFS in Nhava Shevain 1994

> Pioneered the back-office (BPO) concept in themaritime industry

> Established the 1st Maritime Training Academyby a foreign shipping line in India

> Among the 1st participants in the privatisation

of rail freight in India


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> The 3rd Container Terminal at NhavaSheva harbour within JNPT

> Converted existing bulk terminal onBOT for 30 years

> Joint Venture with CONCOR

> Handling capacity to be 1.4 mio TEU

> Total quay length 712 metres

> Draft limited to channel draft of 12.5metres

> Located in Gujarat on the west coast ofIndia to handle containers, bulk andliquid cargo

> Container volumes handled to exceed250,000 in 2006

> Projected Container terminal capacityof 1.3 mio TEU

> Bulk cargo in 2006 apx 2.5 mio tons

> Total quay length of725 metres

APM Terminals in India


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Current Scenario

> Growth projections indicate continued demand for capacity

> Encouraging response from both local & international companies for Portdevelopment projects in India

> Major international container port operators have a presence in India and are eyeingnew projects

Demand Projection

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4000

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12000

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2006 2007 2008 2009 2010 2011 2012

Year

Teus

in


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Regulatory Environment

> Model Concession Agreement

> Major v/s Minor Ports

> Tariff Regulation

> Major Port Trusts Act


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Financing

> Need for long term financing/debt options

> Current interest rates high thus increasing the overall cost and risk

> Viability gap funding scope to be broadened


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Public Private Partnership in Ports

> Private investment attracted towards port projects with reasonable returnsand payback period

> Support infrastructure to be developed by the Government to ensure successof the PPP model

> Government to undertake infrastructural development where payback iscommercially unviable but essential for overall development such as capitalchannel dredging, breakwater, rail/road linkages etc

> PPP to be used as a tool to speed up infrastructure development and not as areplacement of Government spending


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Productivity and Efficiency

> Berth productivity has improved at some Indian ports from 20 moves perhour in the 90s to 70-80 moves per hour

> The benchmark is now higher

> Emma Maersk, the worlds largest container vessel, had berth productivity of540 moves per hour at Yantian

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