International Conference on “DMIC, SIRs, SEZs and Multi-modal logistics parks in the State of Gujarat” Gujarat’s Ports to become major drivers of Economy 16 April 2010 B. K. Sinha, IAS Additional Chief Secretary Ports & Transport Dept., Government of Gujarat Agenda of the Presentation Gujarat Ports : April 2010 1 Infrastructure Snapshot 2 Greenfield Ports 3 Road & Rail Connectivity 4 Other Port Sector Initiatives 5 Strategic Advantage of Ports to SIRs/ SEZs Page 2 Gujarat’s Ports to become major drivers of economy Gujarat Port Sector ► Location of Gujarat Ports Strategically located with a coastline of 1600 km ► Nearest maritime outlet to Middle Kandla Jakhau Mundra Navlakhi East, Africa and Europe Jamnagar Okha ► Highest number of operational Positra Khambhat Dholera Sikka Bhavnagar ports and commercial cargo ports ► Dahej Mithivirdi Porbandar Magdalla Mahuva Pipavav Sutrapada The first state in India to invite Hazira Jafrabad Simar Private Sector Participation Vansi Borsi Major Port Private Sector Ports through competitive bidding Maroli GMB* Ports Ports Structure of Gujarat - 41 Minor + 1 Major Port 4South Gujarat Saurashtra Kutch Major Port Kandla 23 ports 14 ports 4 ports 1 port April 2010 Page 3 Gujarat’s Ports to become major drivers of economy Advantage Gujarat ► State ranks first in terms of cargo throughput handling 206 MMT cargo in 2009-10, achieved 35% annual growth rate April 2010 Page 4 Gujarat’s Ports to become major drivers of economy Advantage Gujarat ► Nearest gateway to landlocked states ► Vast and fertile hinterland, constituting 40% of the total Indian trade ► Gulf of Cambay and Gulf of Kutch provide natural navigational safety and logistical advantage ► Ease of port privatisation due to progressive and liberal policies ► Excellent rail-road connectivity and ideal for multi-modal transportation ► Large industrial base, thereby having high demand and potential for freight growth. ► About 6800 ships and 700 sailing vessels visit the ports of Gujarat every year April 2010 Page 5 Gujarat’s Ports to become major drivers of economy GMB Port Privatization: Incentives Gujarat Port Policy, 1995 & BOOT Policy, 1997 ► Concession in waterfront royalty payable during ‘Royalty Holiday Period’, Balance royalty will be permitted as set off against approved capital cost ► Concessional rate of wharfage for captive Single Point Mooring (SPM) ► Port locations will be given on BOMT (Build, Operate, Maintain and Transfer) basis ► GMB will charge wharfage/ waterfront charges, Developers free to charge any other service charges with prior approval of GMB ► Priority to maritime related industries in the field of ship building, ship repairing, dredgers and other flotilla units ► Land acquisition by GMB, Land will be allotted on lease for a period concurrent to concession period April 2010 Page 6 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Traffic Traffic increased to 206 MMT, growing by CAGR of 17.4% in last 5 years The total port capacity of Gujarat grew by 80%, from 135 MMT in 2001 to 244 MMT in 2009-10. 06-07 07-08 08-09 09-10 Major Ports 463.84 519.24 530.35 558.3 GMB Ports 132.44 147.60 153 206 Other Non – Major ports 52.56 53.55 54.78 52 Total National Cargo 648.84 720.39 738.13 816.5 Share of GMB ports from total non-major ports (%) 71.6% 73.4% 73.6% 79.8% ► GMB Ports handled 80% of traffic in India’s minor ports in 2009-2010 ► GMB Ports handled 25% of total national cargo in 2009-20010 Source: Indian Port Association, Gujarat Maritime Board April 2010 Page 7 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Commodity-wise Traffic in 2009-10 Export of Major Commodity Aviation Turbine Fuel 7% Import of Major Commodity Others 5% Naphtha LDT 2% 2% HSD 3% Others 14% HSD 38% Iron Ore 4% LNG 7% Cement Clinker 14% Naphtha 12% Crude & petroleum oil 50% Container 11% Motor Spirit Petrol 15% Coal 16% High growth achieved by import of Iron Ore, Crude Petroleum oil & motor spirit April 2010 Page 8 Gujarat’s Ports to become major drivers of economy Vibrant Gujarat Global Investors’ Summit (VGGIS) MoU Status – VGGIS – 2003,2005,2007,2009 Year 2003 2005 2007 2009 Total ► Commission Under Preliminary ed Implementati stage on Dropped Total Nos. 1 0 0 1 2 Amt. (Rs. Cr) 1000 0 0 1200 2200 Nos. 9 3 0 23 35 Amt. (Rs. Cr) 1930 1862 0 11793 15585 Nos. 5 9 0 8 22 Amt. (Rs. Cr) 7380 3145 0 2993 13518 Nos. 4 21 25 0 50 Amt. (Rs. Cr) 4860 37235 43625 0 85720 Nos. 18 35 26 30 109 Amt. (Rs. Cr) 15170 42292 43625 15936 117023 Investments have been planned for new Greenfield ports, such as, Simar, Mahuva and Positra, along with the expansion of existing ports, such as, Mundra, Pipavav, Hazira, Okha, Porbandar, etc. April 2010 Page 9 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Investment Trends Investment (Rs. Crore) Private Ports Captive Jetties Private Jetties Ship building yard Total 13374 7943 269 527 22113 An investment of Rs. 22,113 crores has been realised by GMB from 2002 - 2010 April 2010 Page 10 Gujarat’s Ports to become major drivers of economy GMB Port Privatization models Gujarat Maritime Board has multiple port privatization models to promote private player participation in Gujarat ports and to enhance its holistic development 1 Captive Jetties 2 Private Ports 3 Private Jetties 4 Development in existing terminals 5 Rail Linkages ( Pvt. Investment) 6 Shipbuilding/ repairing yard 7 Coastal area development/ Ro-Ro ferry ► GMB has successfully 2010 Captive Jetty/ SBM 2015 23 32 Private Ports 4 11 Private Jetty 12 19 1 12 Private Terminal developed private ports like: Pipavav, Hazira, Mundra, Dahej etc. ► Capacity to double to 508 MMTPA by 2015 Existing: 244 MMTPA, Total by 2015: 508 MMTPA April 2010 Page 11 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Greenfield Ports ► Gujarat formulated the Port Policy in 1995 to Proposed Greenfield Ports promote private sector investment in development of Greenfield Port. ► Capital incentives port projects are being developed under BOOT policy (Build Own Operate Transfer) and will be transferred back to GMB after completion of 30 years BOOT period. ► Mundra Modhawa Sikka Positra Major Ports developed: Mundra, Pipavav, Dahej & Sutrapada Hazira ► Khambhat Dholera Mithivirdi Dahej Mahuva Pipavav Simar Other Ports under development: Chhara: Shapoorji Paloonji ► Dahej: Sterling Biotech ► Sutrapada: L & T ► Bedi: Gammon Infrastructure ► Bhogat & Bhavnagar: Universal Success Enterprises Ltd. (USEL) Page 12 Vansi Borsi Maroli ► April 2010 Hazira Gujarat’s Ports to become major drivers of economy Gujarat Ports: Port at Mundra ► Developed by Gujarat Adani Port Ltd. (now Mundra Port & SEZ Ltd) ► Commenced cargo operation from September 1998 ► 8 multi-purpose berths, container berths, bulk cargo berth ► Container handling capacity: 2.5 Mn. TEUs ► Phase II development: covers West Port, South Port, North Port and SBMs: 26 Mundra berths and 3 SBMs, which will augment capacity by about 160 MMTPA ► Coal terminal for 8640 MW Ultra Mega Power Plants – Rs. 4500 crore ► South port covers basin development for Container, LNG and Liquid cargo – Rs. 12,000 crore ► North Port will have container, bulk and RoRo cargo handling facilities – Rs. 5500 crore ► SBM and COT (Crude Oil Terminal) – Rs. 3700 crore ►Total Investment: >INR 30,000 crore ►Traffic: general 39.4 Mn tons, container 0.93 Mn. TEU April 2010 Page 13 Gujarat’s Ports to become major drivers of economy Mundra Gujarat Ports: Port at Pipavav ► Developed by Gujarat Pipavav Port Ltd. (GPPL) (now acquired by AP Moller Mearsk) in joint sector, 26% equity stake of GMB ► Commenced cargo operation from 1996 ► Solid bulk, container and liquid cargo terminal ► Container handling capacity: 1.1 Mn. TEUs ► Broad gauge railway port connectivity in PPP mode (253 km), Pipavav operational from 2003 ► Pipavav is the first in India to receive double-stacked container trains ► Expansion plan ► Development of 385 mt container berths ► Planned LNG terminal for a power plant ► Planned capacity of 9 MMTPA by 2010 Pipavav Pipavav Shipyard spread over an area of ~200 hectares ►Total Investment: Rs.13000 crore ►Traffic: general 6.7 Mn. Tons, container 0.27 Mn. TEUs April 2010 Page 14 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Port at Dahej Petronet LNG: LNG Terminal ► 1st LNG terminal in India, operational from 2004 ► Capacity of 5 MMTPA, with an investment of INR 28 bn. Dahej ► Planned: Second LNG berth (Standby) with an investment of INR 6 bn., total capacity will be 12.5 MMTPA then Adani Petronet (Dahej) Port: Solid Cargo Port Terminal (SCPT) ► Phase 1: Solid cargo berth of 3 MMTPA capacity at an investment of INR 5.5 bn. ► Construction of SCPT is expected to be completed by June 2010. ► Planned capacity of 12 MMTPA after Phase 2, with additional investment of INR 6 bn. Gujarat Chemical Port Terminal Co. (GCPTCL): Chemical Port Terminal ► Operational since 2001, with capacity of 1.8 MMTPA ► Total investment of INR 9 bn. ►Total Investment: Rs. 5400 crore | Traffic: 12.5 MMTPA April 2010 Page 15 Gujarat’s Ports to become major drivers of economy Dahej Gujarat Ports: Port at Hazira ► Developed by Hazira Port Pvt. Ltd. (HPPL), promoted by Shell Gas ► LNG terminal with capacity of 5 MMTPA ► commenced cargo operation from 2005 ► Total investment of INR 37.8 bn. (Phase 1A & 1B) ► Expansion Plan ► Total capacity after Phase 1B; 16.5 MMTPA ► Phase-II (Container and general cargo) – Rs. 2400 crore ► Company has selected Mundra Port & SEZ Ltd for development of Bulk/ General Cargo Port Terminal at Hazira through sub concession ► Initial terminal capacity of 1.24 million TEUs ►Total Investment: Rs. 6200 crore April 2010 Page 16 Gujarat’s Ports to become major drivers of economy Hazira Hazira Port Connectivity: Railway Pipavav Railway Corporation Ltd. ► ► ► Bharuch Dahej Railway Co. Ltd. Completed in 2003 270 km railway from Surendranagar to Pipavav Total Project Cost: Rs. 370 crore contribution by: ► Gujarat Pipavav Port (GMB JV): 26.6% ► Ministry of Railways: 26.6% ► Financial Institutions: 46.9% (Debt) Kutch Railway Company Ltd. ► ► ► Completed in 2007 301 km railway from Palanpur to Gandhidham Total Project Cost: Rs.500 crore,contribution by: ► RVNL: 20% ► Govt. of Gujarat: 1.6% ► Kandla Port Trust: 10.4% ► Gujarat Adani port (MPSEZL): 8% ► Financial Institutions: 60% (Debt) ► ► ► Expected to be completed by Dec. 2010 68 km railway from Bharuch to Dahej Total Project Cost: Rs. 285 crore, equity contribution (Rs. 85 crore) by: ► RVNL: 26.5% ► Dahej SEZ: 10.5% ► GMB: 10.5% ► Adani Petronet (Dahej) Port: 10.5% ► GNFC: 10.5% ► Hindalco: 10.5% ► Jindal Rail Infrastructure: 10.5% ► GMB conducted a study by Rites to provide railway connectivity to Sutrapada, Mahuva, Chhara, Maroli & Modhwa port April 2010 Page 17 Gujarat’s Ports to become major drivers of economy Gujarat Ports: Marine Shipbuilding Park ► Existing share of 47% in Indian shipbuilding order book ► Intention to grab 50% to 60% share i.e 3 million DWT of Proposed Marine Shipbuilding Parks (MSP) National target in Shipbuilding/ repair market ► Gujarat Cluster form of Shipyards or Marine Shipbuilding Parks (MSP) at multiple locations with private player Ghogha participation. The prominent Shipbuilding cluster being developed is ‘Dahej Shipbuilding cluster’. Dahej Jafrabad Mahua Pipavav Incentives under Shipbuilding Policy: GMB will ► Acquire Government land and allot to the company on lease basis for the license period ► Develop basic infrastructure & facilities ► Ensure key aspects like national security, defense, environment and economic development ► Permit the Shipyard Company to construct outfitting jetty ► Provide complete operational autonomy to the Shipyard company (within the framework of relevant legislations) in respect of the operation of the Shipyard ► Recommend notifying Marine Shipbuilding Park (MSP) as SEZ April 2010 Page 18 Gujarat’s Ports to become major drivers of economy Logistics, Small Industries Housing, Commercial Gujarat Ports: Marine Shipbuilding Park Bharuch- Samni-Dahej B.G. Rail line Galenda Proposed Logistics hub 1 Dahej Koliyad Proposed Ship building Cluster 2 Bhavnagar Existing Shipyard GNFC Jolva Adani Power Vaddala Proposed Shipyard of Jindal Shipyard Proposed Shipyard of Bombay Marine Eng. Works Proposed Shipyard of Dahej Shipyard Ltd. Dahej Old Port GIDC Estate Boundary ABG Shipyard Sterling Port SEZ Area GMB land for RO RO Existing jetty ► ► ► Waterfront Reserved for Shipbuilding Dahej Port Terminal Location of Yards at Dahej Dahej as a global maritime destination, with perspective on skills, expertise and know-how as an Gulf of Khambhat ideal location for maritime research and development High tidal range (8.5 & 9 mtr) and no need for breakwater Development of ancillary industries & Dahej PCPIR slide 12 April 2010 Page 19 12 April 2010 Cluster Gujarat’s Ports to become major drivers of economy Gujarat Ports: Ro-Ro Ferry (Passenger & Vehicles) ► With two gulfs dividing the State in three parts, Ro-Ro ferry service in Gujarat Gujarat is an ideal location for Ro-Ro ferry service operation. ► GMB has decided to develop the Ro-Ro ferry terminal at (Gogha and Dahej) the cost of approximately Rs 171.00 crores (USD 32 million) in Phase-I and will extend upto Mumbai in Phase - II Concept and Development Model of Ro-Ro Ferry April 2010 Page 20 Gujarat’s Ports to become major drivers of economy Ports connectivity to Industrial Clusters Palanpur To Delhi Mehsana Apparel & Textile Ahmedabad Kandla Mundra Pharmaceutical & Biotech Petrochemical Ceramics Bharuch Engineering Dahej Ceramic Pharmaceutical Surat Hazira Apparel & Textile Pipavav Engineering Sector Biotech Sector Apparel & Textile Chemical & petrochemical April 2010 Chemical & Petrochemical Page 21 To Mumbai Gujarat’s Ports to become major drivers of economy Port Connectivity to Dedicated Freight Corridor To Delhi Palanpur Existing Rail Line DFC Zone 1 Mehsana Ahmedabad Kandla Mundra Zone 2 Bharuch Dahej Zone 3 Surat Hazira Pipavav Well connected to Ports through Rail and Road linkages April 2010 Page 22 Zone 4 To Mumbai Gujarat’s Ports to become major drivers of economy New SIRs proposed in Gujarat 1. Dahej PCPIR 2. Aliya Bet Entertainment and Eco Development Special Investment Region 3. Santalpur Special Investment Region 4. Halol-Savli Special Investment Region 5. Sanand Industrial Area 6. Changodar Special Investment Region 7. Hazira Special Investment Region 3 11 8 5 6 12 8. Navlakhi Special Investment Region 9. Simar Special Investment Region 10. Pipavav Special Investment Region 11. Anjar Special Investment Region 12. Okha Special Investment Region 13. Dholera Special Investment Region 4 13 10 9 1 2 7 Out of these 13 SIRs, 9 SIRs are based on ports located along the coast April 2010 Page 23 Gujarat’s Ports to become major drivers of economy SEZs in Gujarat - Out of 60 SEZs, 38 SEZs are present under the influence of DMIC corridor DMIC Influence Area DLF Ltd. Gandhinagar Jindal Worldwide Ltd. Gaurinandan Realty. GIFT City. Gandhinagar TATA Sez Aqualine Properties, Gandhinagar Shivganga Real Estate Ganesh Infrastructure Ltd. CPL Infra. Ltd, Ahmedabad Electronics SEZ Gandhinagar Mexus Corporation, Ahmedabad Ahmedabad Apparel Park City Gold Realtors, Ahmedabad Adani Township , Ahmedabad Myron Realtors, Ahmedabad Pharma SEZ, Ahmedabad N.G. Realty Ltd. SGV infrs. Pvt. Ltd. Nipiam Infotech Pvt. Ltd. Calica Constn Pvt. Ltd. Kandla Port SEZ Dishman Pharma SEZ Strength Real Estate Ltd. Suzlon Infra. Vadodara Reliance Port SEZ Ceramic, SEZ Jayant Oil & Derivatives Eng. & Oil Real Estate SEZ Infrastructure SEZ Textile/ Apparel park Gems & Jewellery Pharmaceutical Sterling SEZ., Bharuch Dahej Port SEZ Jubilant Infra., Bharuch J.B. Chemicals & Pharma Ltd. Suzlon Infra. Vadodara SUR SEZ Gujarat Hira Bourse, Surat Essar Hazira SEZ Out of these SEZs, 29 SEZs are port-based, with total area of 26,338 Ha (~90%) April 2010 Page 24 Gujarat’s Ports to become major drivers of economy Thank You Gujarat Ports: Investment Trends Investment in Captive Jetties Investment in Private Ports Company Port Investment Dholera Port Ltd. Dholera Petronet LNG Dahej 3400.12 Petronet LNG - SCPT Dahej 533.00 Mundra SEZ & Port Mundra 4910.00 GPPL Pipavav 1645.00 Shell Gas Hazira 2507.89 GCPTCL Dahej 905.75 TOTAL(1) Amount in Rs. Crore 21.59 13923.35 Company Port IPCL Dahej Guj. Sidhee Cement Prashnavada Metdist Pipavav 10.00 DMCC Navlakhi 15.94 DHIL Dahej Sanghi Jakhau 63.92 Ultra Tech Cement Pipavav 167.00 Gujarat Ambuja Cement Muldwarka/ Magdalla 0.76 246.40 315.68 Sikka 86.89 ESSAR Hazira 924.44 Reliance Sikka 5416.00 GSFC Sikka 13.90 L&T Hazira 37.00 254.00 TOTAL(2) Page 26 42.00 Digvijay Cement Others April 2010 Investment Gujarat’s Ports to become major drivers of economy 7593.93 Gujarat Ports: Investment Trends Amount in Rs. Crore Investment in Private Jetties Company Port Company Investment JM Baxi Rozi, Bedi 30.48 Goodearth Maritime Jakhau 17.79 Shantilal Multiport Infra. Rozi, Bedi 13.15 Saurashtra Cement Porbandar 29.24 United shippers Navlakhi 15.74 Shakti Clearing Agency Nayabunder, Bedi 8.00 Ruchi Infrastructure Rozi, Bedi Ashapura Minechem Mundra Energy Infrastructure Okha Jaydeep Associates Navlakhi 3.53 VK Industries Okha 4.01 Binani Navlakhi 2.15 Welspun Dahej 8.00 IMS Petrogas Porbandar Sanghi Navlakhi 4.00 Shreeji Shippin Navlakhi 1.42 April 2010 Page 27 14.70 Port CWC Investment Rozi, Bedi 5.00 Other 2.00 TOTAL (3) 269.41 Investment in Ship Building Yards Company Port ABG Shipyard Dahej Modest Infrastructure Ghogha TOTAL (4) Investment 477.00 50.00 527.00 3.00 60.20 47.00 An investment of Rs. 22,113 crores has been realised by GMB from 2002 - 2010 Gujarat’s Ports to become major drivers of economy