Krishnapatnam Port :

Case for a Cashew Ecosystem

Vinita Venkatesh, DirectorKrishnapatnam Port Container Terminal

Dubai, 19th Feb 2016

KPCT Heritage

KPCT

Krishnapatnam was a bustling port in the rule of King Krishnadevaraya in the 1500s

180 kms north of Chennai

Mr. C.V. RaoChairman, CVR Navayuga Group

Navayuga Engineering CompanyKrishnapatnam Port CompanyNavayuga Power CorporationNavayuga Info TechNavayuga Spatial TechnologiesKrishnapatnam Infratech

KPCL Master Plan

Deepest

Draft 18.5 m

1.2 m TEU Terminal

Future development4.8 m TEU TerminalPort : 6800 acres

External Land : 12000 acresIndia’s largest Port facility !

Connectivity & Infrastructure•Krishnapatnam Rail Co Ltd (KRCL) Special Purpose Vehicle to provide rail connectivity to the Port• Stakeholders: The Govt of Andhra Pradesh Krishnapatnam Port Company Ltd Rail Vikas Nigam Limited

Dedicated 4-lane road

NH-5: Chennai to Kolkata

NH-5 Junction

Export Inspection Agency, PQ , Pest

Residue Inspection Lab etc

Certified as Authorised Economic Operator by the Central Board of Excise and Customs

Cashew Imports at KPCT vs. other Ports: Cost Comparison

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Cost comparison of KPCT and other Ports for Cashew Import / 20’

Sr. No. Activity Cochin Tuticorin Vizag KPCT

1 CFS / Handling Charges 9,175 8,606 7,200 6,000

2 Customs Examination 9,000 4,600 3,800 3,500

3 PQ Charges 3,250 3,250 3,250 3,250

4 THC 6,050 4,450 4,900 4,620

5 CHA Charges 750 2,000 2,000 1,500

Total charges 28,225 22,906 21,150 18,870

Savings at KPCT (INR) 9,355(USD 142)

4,036(USD 61)

2,280(USD 35)

KPCTTraditional Ports

Fixed Tariff

Congested Roads

Huge Land Space

Excellent Road and Rail Connectivity

Flexible and Competitive Tariff

Savings in “Transportation Cost”; Imports @ KPCT vs. Tuticorin

Vetapalem Rajahmundry TuniTuticorin KPCT Tuticorin KPCT Tuticorin KPCT

Distance 948 206 1,240 497 1,294 553Transportation Charge 34,400 14,280 38,400 18,700 40,800 23,200

Savings at KPCT / TEU

INR 20,120 (USD 305)

INR 19,700( USD 298 )

INR 17,600(USD 267 )

Competitive and Efficient Supply Chain

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Cashew Imports @ KPCT

Liner Coverage : Maersk, MSC, SAF, CMA, PIL , HanjinTranshipment at ColomboTransit time to KPCT : 35- 40 daysLowest end –to –end transit time to AP, Telangana and Bangalore

KPCT: Cashew Import Advantage

Other Advantages• Plant Quarantine (PQ) office available near port• Certification of Food Safety & Standards Authority of India (FSSAI) at the earliest• Quicker clearance at terminal•High Seas Sales: Manifest amendment within 1 month• Zero CFS Cost• No multiple handling• Competitive handling charges• Distance advantage from Port to cashew processing

Advantages for routing Cashew through KPCT• Importer can save additional cost through truck movement from Krishnapatnam Port to the final place of delivery in Andhra Pradesh.• As a special case, Krishnapatnam Port is ready to consider additional free DM time (up to 14 days) on a case-to-case basis through respective lines.• Stuffing/de-stuffing inside the closed warehouses. Therefore, 24/7 storage and handling of cargo.• Cargo storage of 15 days free time available at KPCT.• Bonded warehousing can be provided

Cashew Processing Unit: Why KPCT!?!

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Ease of doing Business: World Bank ranks Andhra Pradesh No. 2

in doing business in India!

N

S

Port

SEZ

Land Availability: 12,000 acres available for port-based industry. Both Purchase as well as Leasing option available.

Climate at KPCT: Ideally suited for drying cashew.Vessel Calls: 3 Vessel calls per week to ColomboSingle Desk Clearance: Single Desk Portal for approvals within 21 days in AP.Electricity: 17000 MW of power plants. INR 1 / unit power cost reimbursement for 5 yearsStamp Duty: 100 % Re-ImbursementVAT, Central Excise and Income Tax: 100% Re-imbursement for 5 yearsLabour: 3000 strong women-force available through CSR,

almost 40-50% cheaper than Kollam in KeralaRoad & Rail Connectivity: Excellent road and rail connectivity within 25 KMsPort facility within 10 KMs for import / exportWarehousing: Available inside the port itself

Land Cost 1 acre INR 40 lakhs (Discounted) USD 60,000

Trained Labour

500 lady worker pool INR 250 - 300 / day / worker USD 4.00

Water 5000 litres / trip INR 2000 / trip USD 30.00

Electricity 132 KV supply INR 5.19 / unit USD 0.07

Bangalore – KPCT – Chennai Corridor

Vizag – KPCT – Chennai Corridor

Recognitions

CSR Award for KPCL at Seatrade Maritime Awards 2014

Dubai, October 27, 2014

Krishnapatnam Port Company Ltd

Golden Peacock Environment

Management Award

At the17th World Congress on

Environment, New Delhi 11th July 2015

Indian Maritime Businessman of the Year 2015

Private Port of the Year Award2015

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Thank you