Trans-shipment Hub & Feeder ports – Indian story

A Reality check

“The contents & views incorporated in this presentation are the individual views of the presenter & do not reflect views of Adani Ports & SEZ. The Summary issues, challenges & recommendations presented are for discussion purposes, hopefully leading to a recommendation consensus.”

The Indian Story

Hazira

• Majority of Indian Containerised volumes gateway through Foreign Hubs –

• Singapore / Port Kelang• Jebel Ali / Khorfakkan• Salalah / Djibouti• Colombo

• These Hubs are enroute on major East-West trading routes, causing minimal deviation

• Cost is a key consideration• Additionally, these Hubs have

significant Operational capabilities available to Main Liner operators

• Deep Water• Adequate Terminal

Infrastructure• High Terminal productivity

Key Components of a Trans-shipment Hub

• Geographic proximity to Trading route

• High Operational performance– Crane Productivity– Berth Access– Customs friendly

• Competitive Tariffs– Stevedoring– Port dues

• Good Terminal Infrastructure that is scalable

• Preferably Local cargo to complement Trans-shipment

• Dense Network of Shipping Liner services

Comparative summary : Operational Envelope

PortQuay

Length (Meters)

Water Depth

(Meters)

Crane outreach (Rows)

# Cranes

INTERNATIONAL

Singapore 11,500 13 ~16 18 ~22 142

Port Kelang 4,500 11 ~15 22 60

Colombo 2,600 11 ~14 16 ~22 25

Jebel Ali 7,500 11 ~ 16 16 ~22 78

Salalah 2,100 16 22 ~ 24 25

INDIA

Cochin 600 13 ~14 22 6

JNPT 2,000 13 ~14 22 24

Mundra 2,100 14 ~17 22 ~24 18

Chennai 1,700 13 ~ 15 16 ~ 20 10

Key Challenges for Indian Hub Ports

• Expand Operational capabilities at each Hub port– Water depth / Berths / Productivity

• Develop a Network of services that can facilitate Trans-shipment volume flow– Increased frequency leading to more cargo accumulation

• Secure uniform relaxation of “Cabotage” laws that would enable coastal movement of cargo to Hub ports – All Indian ports should have uniform application of law

• Government Incentivising Hub port development• Co-opt Shipping Lines with Hub development

– Competitive cost package for Shipping Lines to use Indian Hubs– Associated benefits for local cargo

• Encourage Sea-borne transportation for first leg to Hub port– Develop Regulatory mechanism supported by Environmental initiatives