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Table of Contents
1. Indian Port & Shipbuilding Industry at Glance
2. Gujarat Ports: Current State Assessment
3. Gujarat Ports: Traffic and Capacity
4. Shipbuilding & Ship-repair Industry of Gujarat
5. Potential Opportunities in Gujarat Port Sector
4
Indian Ports - Traffic Growth & Highlights
• The port & maritime industry plays a vital role in growth of
economic activity & trade.
• India has an extensive coastline of 7,517 km with around
13 major ports and over 200 non-major ports are
strategically located on the world maritime route.
• Presently, the Indian Ports are handling around 95% of the
country’s external trade by volume & 70% by value of
India’s Global merchandise trade.
• All the major ports are governed by the Major Port Trusts
Act of 1963, except the Ennore port, which is under the
provisions of the Companies Act, 1956. However, non
major-ports are the under the jurisdiction of the state
governments & governed by respective State
Governments
• All the Indian ports together handled about 976 MMT of
traffic in 2013-14 of which Major Ports together have
handled 556 MMT. Source: Indian Port Association, Ministry of Shipping
Major Ports, India
Major Ports
Kandla
MumbaiJawaharlal Nehru Port
Marmagoa
New Mangalore
CochinTuticorin
Chennai
Vishakhapatnam
Paradip
Ennore
Kolkata
Port Blair
5
Indian Port Sector - A Glance
1066
1559 1624 1635 1635
0
500
1000
1500
2000
2008 2009 2010 2011 2012
FDI I
nfl
ow
(U
SD M
illio
n)
FDI Inflow in Indian Port Industry
Source: http://shipping.nic.in, Planning Commission; Aranca Research, 12th Five Year Plan of India
Due to favorable federal & state policies the Sector has
witnessed considerable FDI inflows since April 2000
Major Ports
57%
Non- Major Ports
43%
In the year 2013-14, the total traffic handled by the Ports
of India was 976 MMT.
In the year 2013-14, the total traffic handled by all the
Major ports was around 556 MMT, while the non-major
ports together handled 421 MMT.
Gujarat has 41 non-major ports while Maharashtra has
about 53 Non-major ports. Gujarat has the highest number
of operational non-major ports
With 309.9 MMT, Gujarat accounts for 74.1% of traffic for
non-major ports of India in 2013-14.
6
Indian Port sector - Poised for High Growth
• The Maritime Agenda (2010-2020) proposes an
investment of INR 1,280 billion in 424 projects in
major ports and INR 1,680 billion in non-major
ports by 2020.
• It was estimated in the Maritime Agenda that
Gujarat alone would build capacity of 620 MMTPA
at estimated INR 742 bn. The capacity addition of
620 MMTPA represents 48% share of total capacity
addition envisaged by the Non-Major ports.
• Many green-field ports are planned in Gujarat. The
projects are also envisaged in the areas of coal
terminal , Single Buoy Mooring (“SBM”), Container
terminals and LNG terminals.
Source: Maritime Agenda 2020, 12th Five year Plan
Maritime Agenda 2010-2020 12th FIVE YEAR PLAN (2012-2017)
The 12th Five Year Plan proposes to give thrust to coastal
shipping. The plan emphasises the need for setting up
coastal terminals at major ports and improving the
connectivity with the non-major coastal ports. Gujarat is
expected to benefit hugely with the promotion of coastal
shipping as it is the nearest outlet to the northern land
locked states.
The total capacity of the port sector is envisaged at
2,289.04 MMTPA. Out of this the capacity of the Non-Major
ports are expected to be 1059.8 MMTPA. The estimated
traffic at the Non-Major ports is envisaged at 815.2
MMTPA. Ports of GMB are expected to have a lion’s share in
the traffic and capacity of the Non-major ports.
POL, Coal and Containers are likely to be the major
commodities that would be handled at the ports.
8
Gujarat - The Gateway of India
• Gujarat is strategically located with India’slongest coastline of 1600 km and is the nearestmaritime outlet to Middle East, Africa andEurope
• The state has 42 ports which includes 1 majorport and 41 non-major ports
• The state has the highest number of operationalports and commercial cargo ports
• The first state in India to invite Private SectorParticipation through competitive bidding
• The first state in India to have a dedicatedChemical Terminal
• The first private port of India – Pipavav is inGujarat
• The state also has the world’s one of the largestship recycling yards at Alang
• Gateway of India’s two LNG Terminals amongstthree in India
Gujarat : Port Locations
Nargol
Vansi Borsi
Hazira
Magdalla
DahejBhavnagar
Mithivirdi
Pipavav
Chhara
Porbandar
OkhaSikka
Bedi
Navlakhi
Jakhau
Positra
Mahuva
Jafrabad
Mundra
Kutchhigarh
Veraval
GMB Ports
Private Sector Ports
9
Pipeline NetworkExcellent rail-road connectivity and ideal for multi-
modal transportation
Hinterland covers Delhi national capital region,
Gujarat, Rajasthan, Haryana, Punjab and
western Uttar Pradesh.
Well-connected by crude pipelines with other
states/ refineries
Vast Hinterland of Gujarat
10
Major Ports
(come under the purview of the Central Government
Non-major Ports
(come under the purview of the State Government)
Ports run by Gujarat
Maritime Board
(GMB)
GMB JettiesCaptive Jetties
(private)
Private Jetties
Private Ports
Source : Indian Port Association
Gujarat Ports: Port Structure & Privatization Model
Types of Ports in Gujarat
Captive Jetties (BOMT)
Private Ports (BOOT)
Private Jetties(BOT)
Development in private terminals
Rail Linkages (Private investment)
Shipbuilding/repairing yard
Coastal area development/Ro-Ro ferry
• GMB has successfully developed private ports at Dahej, Pipavav, Hazira and Mundra.
• Ports under development are Nargol, Dahej & Chharra.
Privatization Model
11
Formation of Gujarat Maritime Board, the first maritime board
Announcement of the first Port Policy of the country
Commencement of first BOOT Policy, new model of port
development
1982
1995
1997
Commencement of first Double-stack container train at Pipavav
Announcement of first Shipbuilding Policy in the
Country
2003
2010
Establishment of Alang Ship Recycling Yard, the largest in the
world
Port of Pipavav became the first private port of India
Establishment of first Chemical Terminal at Dahej by GCPTCL
1983
1996
2001
Establishment of first LNG Terminal at Dahej by PLL
India’s most advanced VTMS unveiled in the Gulf of Cambay
2004
2010
Gujarat Ports Sector : Important milestones
Solid Cargo Port Terminal, Dahej2012 Coal Terminal at Mundra2013
12
GMB
4%
GMB
15%
GMB
26%
GMB
28%
GMB
32%
GMB
3%
India
96%
India
85%
India
74%
India
72%
India
68%India
97%
GMB Traffic grew at CAGR of 13.3% between 2003-4 and 2013-14
Gujarat non-major Ports handled 32% share of total national cargo in 2013-14, up from a meager 3% in 1982.
1982 1990 2000 2011 2012 2014
Gujarat Ports –Growth Story & Traffic Handled
• Gujarat is one of the States that have played a proactive role in the development of minor ports onits coastline. Gujarat Ports took the lead in privatizing its ports since 1994
• Three-fourth of the cargo handled in Non-Major Ports are from Gujarat ports.
14
• The total traffic volumes of non-major
ports continued their upward trajectory
with 43% share in traffic handled at Indian
ports in 2013-14.
• Traffic at GMB ports have increased at
CAGR of 13.3% from 2003-04, while for
Major ports, the traffic has increased at a
CAGR of only 4.9%.
• Contrary to the sluggish pace of economic
development during 2013-14 in India and
around the world, GMB has achieved a fair
increase of 7.7% in the traffic, while the
traffic at Major Ports has grown by just 1.8
% during the year 2013-14.
Gujarat accounts for a Lion’s share in the Traffic Handling in Indian Ports
Major & Non- Major Ports – Traffic Handled
345 384 424 464 519 531 561 570 560 546 555
8997
108132
147 153206 231 259 288 310
0
200
400
600
800
1000
1200
Traffic in MMTPA
Traffic at other State Non-Major Ports Traffic at GMB ports
Traffic at Major Ports
Note: Above analysis is based on the estimated data published by Ministry of Shipping and IPA
15
Gujarat Ports: Traffic Analysis
• Gujarat ports account for 40.7% of traffic in the total national port traffic – more than any otherState. Out of this, the Non-Major ports of Gujarat constitutes 32% share.
• With 309.9 MMT, Gujarat accounts for 74.1 % of traffic for non-major ports of India in 2013-14.
74%
26%
Share of GMB in Total Traffic at Non-Major Ports
Traffic at GMB Ports 309.9 Traffic at Non-Major Ports 110.6
32%
68%
Share of GMB in Total Maritime Traffic of India
Traffic at GMB Ports
National Maritime Traffic excluding GMB
16
Gujarat Ports: Traffic Analysis in the last decade
Traffic/Capacity
• The capacity utilization rate at Gujaratnon-major ports has increased from61% in 2003-04 to 80% in 2013-14.
• The Capacity has increased from 146MMTPA in 2003-04 MMTPA to 387million tonnes in 2013-14 at a CAGRof 11.44%
• Since 2003-04 the traffic has grownat a CAGR of 13.3%
Capacity Utilisation
Capacity v/s Traffic (MMTPA)
Capacity Utilization
146 151 164 182 198235 244
284323
366 387
89 97 108132 147 153
206231
259288
310
0
50
100
150
200
250
300
350
400
050
100150200250300350400450
Tra
ffic
Cap
acit
y
Capacity (MMTPA) Traffic (MMT)
61% 64% 66%73% 74%
65%
84% 81% 80% 79% 80%
0%10%20%30%40%50%60%70%80%90%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Cap
acit
y U
tili
zati
on
(%
)
Gujarat non major ports capacity will reach approx. 864 MT by 2020
17
Gujarat Ports: Commodity wise Traffic at Gujarat Non-Major Ports (2013-14)
Import of Major Commodity Export of Major Commodity
Major Commodities Import from
LNG and LPG UAE, Qatar, Panama
Coal South Africa, Indonesia, Australia, China
Crude Oil and Petroleum
Products
UAE, Brazil, Mexico
General Cargo USA, Europe, Gulf
Major Commodities Export to
Petroleum and Chemical UAE, Europe, Singapore and
Indonesia
Minerals UAE, China, Georgia and Japan
Food grain and Agricultural
Products
USA, China, Indonesia, UAE and
Japan
General Cargo Europe, Sri Lanka and UAE
Crude Oil32%
Coal29%
LNG6%
Container Cargo
8%
Iron Ore2%
Other23%
H.S.D.28%
Container 20%
M.S.Petrol12%
Naphta6%
Cement Clinker
4%
Aviation Turbine Fuel
4%
Other26%
19
Gujarat : Ship building Industries
• Gujarat boasts of 60% share of the Indian shipbuilding order book.
• 10 Shipbuilding yards are already operational with a cappacity of 1.11
million DWT and 9 Shipbuilding yards have been approved by GoG/ GMB
and are at various stages of implementation.
• Gujarat is targeting a capacity of 3 million DWT – thus maintaining its
existing share of expected national market in shipbuilding / repair market.
• Favorable parameters for development of ship building industry:
1. Rise in overseas trade resulting in demand of new ship /ship
conversion and ship repair
2. Indian Peninsular coastline faces international sea route
3. Availability of favorable locations for setting up of shipyards
4. Availability of resources in terms of steel, machineries, wood, non-
ferrous metals etc.
5. Availability of skilled labour at comparatively lower wages
6. Business friendly atmosphere
• Supportive role of the Government to promote and facilitate the
shipbuilding industry
Source :Gujarat Maritime Board
Existing Shipyard location in Gujarat
Gujarat
Pipavav
GhoghaBhavnagar Dahej
Magdalla
BillimoraHazira
68
57 8
10 10
15
25
15 15
0
5
10
15
20
25
30
Number of ships built in Gujarat in last decade (124)
20
Ship Recycling Industry of Gujarat
294
196
101
136 136
264
348 357
415394
298
19.8
9.4
4.87.6 6.4
19.4
29.4 28.2
38.638.3
30.7
0
5
10
15
20
25
30
35
40
45
0
50
100
150
200
250
300
350
400
450
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Lakh
To
nn
es
Nu
mb
er o
f Sh
ips
Alang-Sosiya Ship Recycling Yard is one of the largest Ship Recycling Yards in World. (2013)
► Alang ship breaking and recycling yard possesses more than 50% of global share.
► In 130 operational plots, 40,000 labourers are working in the yard. So far, more than 5,924 vessels having
over 43 million LDT are recycled
► Provides indirect employment to 1-1.5 lakh people.
► The major benefit from Alang ship breaking industry is it saves mineral reserves by producing more than 4.5
million tonnes of re-roll able steel which contributes about 1-2% of the country’s demand.
22
Contoso
1. GMB was established for
the purpose of
commercialization of Gujarat
Ports
2. GMB built and operated its
own ports
3. Captive jetty concept was
introduced for port based
industries
1. Short term – Private JettyLong Term - Joint Sector &Private Ports development
3. Revival of Old Ports
4. Expansion of GreenfieldPorts
5. Developing Ship BuildingYards
6. VTMS Application
7. Disaster and EnvironmentManagement Plan
1. Port City Development
2. Port-based SEZ/ SIR
3. Coastal Shipping/ Ro- Pax
4. Bunkering facilities
5. Port mechanization
6. Port connectivity
7. IPMS Compliance
8. Cleaning and greening of
ports
9. Maritime Cluster Development
10. Maritime Education
Past Strategy Present Strategy Future Strategy
Gujarat– Strategy for Development
23
Gujarat Port: Policy Framework
GoI initiatives in the Port Sector Implication for Investor
100% FDI Makes way for international investment
Introduction of tonnage tax for shipping companies Reduces the tax burden on shipping companies
Plans for the establishment of 2 international ship building yards on the east and west coast through public-private partnership
Investors can bid for structured Projects
GoG initiatives applicable in the Port Sector
Implication for Investor
1982 Formation of Gujarat Maritime Board (GMB)
All ports in Gujarat (except the Major Port) come under the purview of GMB
1987 Captive Jetty Allows private companies to operate their own jetties in GMB Ports
1995 Port Policy Allows public private participation in Gujarat Ports
1997 BOOT Policy Provides operational flexibility with tariff freedom, low water-front royalty
1999 GID Law Gives legal framework & roadmap for PPP
2004 SEZ Act (Gujarat) Paves way for provision of minor ports and related services in Special Economic Zones in Gujarat – developer to fix and collect Tariff
2008 Captive Jetty Expansion Paves way for expansion of existing captive jetties
2010 Shipbuilding Policy Allows private companies to develop shipbuilding parks
2012 LNG Terminal Policy Facilitate setting up of new Greenfield LNG Terminals and Floating Storage and Re-gasification Units (FSRUs) in Gujarat
24
Gujarat: Leader in Bringing Private Investments in the Port Sector
The private investments in port sector grew at CAGR
of 10.23 % from 2003-2004 to 2013-
2014
12758
30672
0
5000
10000
15000
20000
25000
30000
35000
2003-04 2013-14
Cu
mm
ula
tive
Inve
stm
en
t in
IN
R C
rore
s
Vibrant Gujarat Summit (VG)
► A total of 63 MoU were signed with a substantial amount of investments in the port sectorduring VGGIS – 2013.
► VGGIS-2013 saw massive interest in development of port facilities which envision total capacitycreation of 660 million tons by 2015-16.
► Investments have been planned for new Greenfield ports, along with the expansion of existingports; Shipyard projects, expansion of captive facilities and others.
25
Gujarat Ports :Stake Holders
26
Gujarat : Ro-Pax Ferry Services
► A Ro-Pax project is proposed in the Gulf of Khambhat (Cambay) between Gogha &
Dahej, which would greatly improve transport links between Saurashtra & South
Gujarat.
► Proposed project would save travel distance (350 km by road to 30 km by sea)
► Would also result in reduction of road congestion, road accidents & pollution
► Terminals under construction at Gogha & Dahej at the cost of Rs. 399 crore
► By the year 2014-15, it is aimed to complete the work of Terminal construction and
the Capital Dredging.
GoG has embarked on a strategic & pioneering initiative, first of its kind in subcontinent of commissioning Ro-Pax Project along Gujarat
coast.
Proposed Dahej Terminal
Proposed Gogha Terminal
Responsibilities of Integrated Ferry-cum-Terminal Operator of Ro-Pax
Operate ferry service Operation, maintenance and management of the Project
Financing, procurement/ leasing and modification of vessel
Operation and Maintenance of the Terminal
27
Ship technology
centres
Specialist sub
contractors
Shipbuilding skill
development centre
Specialist service
providers
Engineering
college/ Polytechnic
Jetty to cater need of
MSP
Shipyards to built
ships of different sizes
Ship machinery
suppliers
Marine
Shipbuilding
ParksReduction in overall production cost
Use of common infrastructures in economical manner
Faster turnaround and reduction in production cycle
Reduction in inventory & logistic costsIm
pro
ved p
rofitab
ility
Benefits of MSPIdentified location for MSP : North of Narmada in Dahej, Old
Bhavnagar port area, Bhavnagar Coastline in Gulf of Cambay,
between Navlakhi to Jodiya and Coastline near Mandvi in
Gulf of Kutch
The Shipbuilding Policy 2010 of Gujarat intends to
maintain share of 60% i.e. 3 million DWT of National
target (5 million DWT) in Shipbuilding/repair market
Gujarat is strongly emerging as a new shipbuilding
destination in South Asia
Gujarat: Ship-building Policy 2010 and Marine Shipbuilding Parks
Marine Shipbuilding Parks (MSPs) cluster based shipyards proposed within a stretch of 5 to 8 km along the waterfronts of Gujarat coasts
28
There are Multi product Special Economic Zones proposed near the
Gujarat ports. The details of SEZ are given below:
• Kandla Port SEZ- 400 Hectare Multi-product
• Mundra Port SEZ – 2733 Hectare Multi-product
• Dahej SEZ : 1718 Hectare Multi-product SEZ
• Sterling SEZ – 1263 Hectare Multi-product SEZ
• Essar Hazira SEZ – 1263 Multi-product SEZ
• Reliance SEZ – 1764 Hectare Multi-product SEZ
• Sur SEZ-- 50 Hectare Multi-Product SEZ
Gujarat: Port Led Special Economic Zone (SEZ)
Source: Industries Commissionerate, Gujarat Maritime Board
Mundra Port SEZ
Dahej Port SEZSterling SEZ
Essar Hazira SEZ
Reliance Port SEZ
Kandla Port SEZ
Key Industries for development are Light & Heavy Engineering,
Textiles, Chemicals and Pharmaceuticals, Logistics, Petroleum
Refinery, Downstream Processing Industries, Gems and
Jewellery, Glass and ceramic, Agro and Food Processing, Flat
Steel products, Wide steel plates, EPC & Fabrication, Saw pipes,
Polypropylene plant
Sur SEZ
29
Gujarat State: Large Investment expected in Ports
Brownfield port development
Green field port development
Ro-Ro Facility
GMB Ports
Private Ports
Major Port
Ship Building DHOLERA SIR
PCPIR
30
Gujarat - Maritime Clusters Development
• Gujarat’s rapidly growing shipping industry consists of several players including Government ports, private ports, shipping companies, charterers, surveyors, manning agents, ship managers, maritime lawyers, shipping consultants, and so on.
• Gujarat has seen a substantial influx of shipping and marine related projects in order to create a geographic concentration of interconnected companies, specialised suppliers, service providers, firms in related industries and associated institutions that not only competes but also co – operates for clients needs & boost the Defence Offsets development in Gujarat by developing Naval equipment and naval ship manufacturing in the maritime clusters.
A probable Maritime Cluster could include:
• Shipping lines: Container lines, tramp shipping companies based out of the State
• Shipping agents: Including freight forwarders
• Shipbrokers, ship operators, trading houses: With chartering and shipping requirements and ship commercial managers, chemical traders, importers
• Ship Breaking Companies
• Banks with exposure to shipping lines; commodity trades, financial advisors, consultants
• Surveyors, Stevedores
• Port companies, marine infrastructure providers
• Maritime Law firms
• Port Consulting firms
• Marine Outsourcing agencies (commercial and technical)
31
Maritime University in Gujarat
The idea of setting up of Maritime University is to serve the
maritime community as the institution for high-level maritime
education & research in Gujarat.
Present Status
Appointment of the consultant shall be carried out soon for
preparation of the project report for establishing Maritime
University in Gujarat.
GMB is in discussions with reputed universities of the
Netherlands for the possible tie-up for the Maritime
University
The University shall promote highest practicable standards in
maritime transportation, policy & administration, management,
safety, security, environment protection, and provide a
mechanism for the transfer of knowledge & its applications.
32
LNG Terminals in Gujarat
Dahej LNG Terminal
• India's first LNG receiving, storage and regasification terminal was set up at Dahej by PETRONET LNG Ltd.
• First phase with a capacity of 5 MMTPA commissioned in April 2005.
• Additional capacity of 5 MMTPA was added in a phased manner.
Hazira LNG Terminal
• The Hazira Terminal, built at a cost of Rs 3,000 crore in Surat, is regarded as a key foreign direct investment (FDI) project and represents one of the largest international investments in India in the energy sector.
Mundra and Pipavav LNG Terminals
• A 5 MMTPA LNG Terminal being developed by GSPC LNG Ltd at Mundra in Kachchh. Terminal expected to be commissioned by 2016
• Gujarat’s fourth LNG terminal planned at Pipavav. The terminal to have a capacity of around 2.5 – 5 MMTPA.
Gujarat has been one of the pioneer states in setting up of theLNG terminals. Gujarat has undertaken various proactiveinitiatives to promote LNG terminals in the state.
With a view to attract private sector investment in import ofnatural gas and it's trading in Gujarat, the state government hasintroduced LNG terminal policy in the year 2012.
LNG Terminals in India Capacity in MMTPA By 2013 Operated By
Operating Terminals
Dahej, Gujarat 10.0 Petronet LNG
Hazira, Gujarat 5.0 Shell
Dabhol, Maharashtra 5.0 GAIL
Kochi, Kerala 5.0 Petronet LNG
Total 25.0
33
LNG Terminals in Gujarat
India’s first Floating LNG Terminal coming up at Amreli in Gujarat
• The Government of Gujarat has also initiated steps to set up Gujarat’s fourth LNG terminal at Jafrabad, near Amreli.
• Apart from the above two projects, Dahej LNG terminal also has plans to expand its capacity over the years and a terminal is also proposed in Kandla.
• GMB has adopted Public Private Partnership (PPP) – Swiss Challenge Route to develop the green-field terminal with Floating Storage and Regasification Unit (FSRU)
• The project is envisaged as an all – weather direct berthing port terminal facility with 2 breakwaters and an estimated cost of around INR 4150 crore
• Planned to have a combined capacity of 10 MMTPA
• Swan Energy Ltd (SEL) is the Original Project Proponent and had submitted a proposal for development of the project to the Government of Gujarat
• The Energy and Petrochemicals Department, Government of Gujarat has granted In-Principle approval to the project proposed by SEL in May, 2013
LNG Floating Storage and Regasification Unit (FSRU) is
a floating system which receives LNG offshore, and the
onboard regasification system sends out the gas
through flexible risers and pipeline to shore
A FSRU provides the advantages of lower cost, location
flexibility, shorter decommissioning time and a
potential reduction in Carbon Dioxide emissions
34
Gujarat Ports : Opportunities for Investors
Ro-Pax Ferry Service
Marine Shipbuilding park & Shipyards
Greenfield Ports
Port Cities and Port-Based SEZ
Maritime Education
Dedicated Facilities for Specialized Cargo
Handling
LNG Terminals, SPMs for specialized cargo
handling
Integrated industrial yard for ship building purpose
To increase coastal shipping and for faster eco-friendly
movement
Developing the nation’s human potential
Various Greenfield ports in pipeline for
rapid capacity expansion
Mundra and Pipavavport cities
35
Industries Department, Govt. of Gujarat
iNDEXTb -Industrial Extension Bureau
Gujarat Industrial Development Corporation
Gujarat Infrastructure Development Board
http://www.gujaratindustry.gov.in
http://www.indextb.com
http://www.gidc.gov.in
http://www.gidb.org
Gujarat Maritime Board http://www.gmbports.org
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36
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