Ship to Ship Transfer at Anchorage Ports
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Setting up of Ship to Ship Transfer at Anchorage Ports Ports, Ports Services and Logistics Government of Gujarat Contents Project Concept 3 Market Potential 5 Growth Drivers 7 Gujarat – Competitive Advantage 8 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Potential collaboration opportunities - Key Considerations - Case Study Project Financials 15 Approvals & Incentives 16 Key Department Contacts 17 Page 2 Project Concept What is ship to ship transfer ? ► A Ship to Ship transfer (STS) is shifting of cargo between two merchant vessels in close proximity to each other. ► The STS operation can be executed either while ship is stationary or underway. ► This operation requires high level of coordination, highly precision equipment's and permissions from authorities. ► In general practice, masters of both the ships are responsible for the entire operation. What are anchoring ports ? ► Anchorage ports are temporary ports where in the ships can lower its anchor and pause their movement for purpose like STS. ► Used for ships to STS of cargo. ► Used for ships to wait for change in weather conditions or change in direction of wind. ► It usually saves the cost incurred by shipping line by saving on fee of docking at ports. ► Its usually situated away from port and may change depending upon weather conditions. ► Very beneficial for places which do not have a permanent port. Methods of Bulk cargo transfer/Grab 1 2 3 Bulk carrier-Sliding hatchcover Transfer through conveyor belt Grab for loose cargo Page 3 Project Concept Various parties involved in STS operation Discharging vessel and its crew Ships’ Cargo owners owners/managers STS operation Charterers of STS operator ship Receiving vessel and its crew Phases of STS operation Pre- Approach Final Cargo approach Unberthing preparation approach Transfer Reporting Planning • STS • Joint plan of • Maneuvering • Pre-transfer • Review • Reporting to management operation alongside, procedure unberthing the coastal • Ship • Control of maneuver • Responsibility plan, State authority information operation control and of cargo unberthing and company, exchange • Establish maneuvering operations procedures record keeping • Ship communications with one ship • Cargo transfer while one ship of STS compatibility • Review and at anchor • Operations is at anchor operations • Cargo agree • Cargo after • Unberthing handling operational transferring completion of after underway compatibility procedures arrangement, cargo transfer transfer • Transfer area • Operational preparation • Unberthing and coastal safety issues and procedure State and considerations requirements emergencies • Weather • STS and considerations equipment, navigational safety signals management • Assign watch and keeping contingency responsibilities planning Page 4 Market Potential Global Global shipping industry overview Global shipping industry 2010-14 ► The world seaborne shipments reached nearly 9.8 billion tons at a growth rate of 10 8.0% 2.5% from 2010 to 2014. 7.1% 10 9.8 ► As of 2015, the seaborne shipments 5.3% 9.6 6.0% 3.9% constitutes 80% of the global trade. 9 9.2 4.0% ► 2/3rd of the cargo shipped was dry cargo, 9 4.3% 2.5% 8.7 an increase of 5% in dry cargo over 2.0% 8 8.4 2013. 8 0.0% ► Annual growth rate has been decreasing, 2010 2011 2012 2013 2014 In 2010 growth was 7.1% y-o-y whereas Billions Tons % growth in 2014 growth was merely 2.5% y-o-y. Source: Review of maritime transport 2015 Composition of seaborne international trade 2014 (%) 26.0 38.0 15.0 6.0 15.0 POL Bulk Cargo Minor Bulk Gas and chemicals Containerized STS helps companies save cost of cargo transportation by saving on docking fees. It also allows carrying out operations regardless of the draft at anchorage location. Global bulk cargo overview ► Global trade grew at a CAGR of 5.4%. Bulk (All figures in billion tons) cargo category traffic grew at 5% in 2014 compared to 2013. 5.4 ► Among top 5 major bulk cargo commodities – 5.1 iron ore, coal, grain, bauxite/alumina and 4.9 phosphate rock, coal has been performing worse with contraction of 2.8% in 2014. 4.6 ► Developing countries are driving growth for iron-ore and grain. ► Growth in China and other emerging 2011 2012 2013 2014 economies like India is driving demand for dry Source: Review of maritime transport 2015 cargo and bulk cargo. ► Iron-ore trade which accounts for 30% of all dry bulk cargo shipment increased at a rate of 12.4% in 2014. ► The slow growth is mainly due to sluggish coal trade and decreasing demand of fossil fuels due to increasing demand of alternative ecofriendly sources of energy. Page 5 Market Potential India Indian shipping industry overview ► All major and non-major ports handled a Cargo traffic at major ports in India (in million tonnes) total 786 million tonnes from April 2015 to December 2015.The growth of traffic was 560.1 545.8 555.5 581.3 1.4% compared to the same period in the previous year. 260.9 253.6 273.1 240.0 ► The Average Turnaround Time of major ports improved from 4.24 days in 2000-01 to 3.63 days in 2015-16. 2011-12 2012-13 2013-14 2014-15 ► Growth of cargo throughput was maximum Total Cargo POL and Bulk Cargo at 35.3% at Mormugao (Goa) followed by Source: Indian shipping statistics 2015 19.3% Chidambaranar (Tamil Nadu). ► In the past decade the composition (coal, Composition of Indian tonnage 2015 iron ore, grain etc.) of dry cargo has remained constant. In 2005-06, it was Other 21% POL 150 million tonnes, and was almost same 32% in 2014-15. ► Other dry cargo has grown from 70 million tonnes in 2005-06 to 120 million tonnes in 2014-15 at a CAGR of 6.17%. Dry Bulk cargo ► Bulk cargo vessels increased y-o-y by Container 26% 21% Source: Indian shipping statistics 2015 9.5% in 2014 to 2,618 vessels in 2015. Total performance of major ports (in million tonnes) Port Cargo Traffic Port Cargo Traffic 2015-16 (P) 2015-16 (P) Kolkata, West Bengal 16.68 Jawaharlal Nehru, 64.02 Maharashtra Haldia, West Bengal 33.50 Mumbai, Maharashtra 61.11 Paradip, Odisha 76.38 Cochin, Kerala 22.09 Visakhapatnam, Andhra 57.03 New Mangalore, 35.58 Pradesh Karnataka Chennai, Tamil Nadu 50.05 Mormugao, Goa 20.77 V.O. Chidambaranar, Tamil 36.84 Kandla, Gujarat 100.05 Nadu Major Ports total - 574.1 All ports – 606.3 Page 6 Growth drivers Gujarat Established in 1982 as India's Systemic planning and Maritime Board first maritime board, It has implementation has enabled helped Gujarat position itself as GMB to almost double its the maritime gateway of India. capacity from 135 MMTPA in 2001 to 467 MMTPA in 2016. The government of Gujarat has GoI* allows 100% FDI in the Policy given special emphasis on port shipping industry. Introduction support development and cargo of tonnage tax for shipping shipping industry development. companies also incentivizes the Since 1982 various policies shipping liners. Further, the have been implemented for the Sagarmala project will attract development. more cargo traffic in India. Geography Some of the bulk cargo and other dry cargo comes from Gujarat is strategically located resource rich African countries. at a point which between Middle Grains which are primarily East, Africa and Europe. imported to European countries can find strategic advantage. Gujarat has more than 44 ports The length of surfaced roads Infrastructure spread across its 1,600 km was 97.45% of the total road coastline. The main governing connectivity in 2015. body of ports is GMB. Has 2.66 kilometre network of rail per 100 kilometre as against the national average of 2.01 kilometre Good The state is one of the least Gujarat leads in project Governance corrupted and among most clearance in coastal areas with investment friendly according to a success rate of 93%. N-SIPI 21 index. Support Gujarat has many coal based Gujarat was the first state to Industries mega power plants and ultra establish a private port in India, mega power plants which along with that it has 2 out of 3 require high quality imported LNG terminal gateways in India. coal. *GoI: Government of India Page 7 Gujarat Competitive Advantage Port locations in Gujarat Jakhau Mundra Navlakhi Bedi Okha Kutchhigarh Bhavnagar Mithivirdi Dahej Porbandar Mahuva Pipavav Magdalla Jafrabad Veraval Hazira Chhara Varsi Borsi Nargol GMB Ports Private sector ports ► Well connected layout of railway and roads, Gujarat has connectivity to all major business hubs of India and is very suitable for multi modal transport. ► Gujarat has a well connected pipeline network with rest of India and all the major refineries. ► Direct connectivity with Mumbai and other non coastal states like Uttar Pradesh, Delhi-NCR etc. ► Establishment of first Chemical Terminal at Dahej by GCPTCL Composition of cargo at GMB ports FY2016 (million metric tonnes): Total 339 MMT 144.0 147.0 48.0 POL Bulk Cargo Containerized Source: GMB traffic highlights 2016 Page 8 Gujarat Competitive Advantage Traffic details at Gujarat ports Total cargo traffic in Gujarat (Billion tonnes) CAGR of traffic growth (2006-2016) 3.36 3.4 GMB Ports 10.9% 2.87 3.09 2.59 Private ports 32.8% Private Jetty 8.9% Captive Jetty 7.8% 2011-12 2012-13 2013-14 2014-15 2015-16 Total traffic 13.2% Source: GMB traffic highlights 2016 Capacity v/s traffic at Gujarat Ports (in MMTPA) ► The capacity has increased from 323 466 422 MMTPA in 2011 to 466 MMTPA (Million 366 387 Metric Tonne Per Annum) in 2015-16, 323 336 340 310 growing at a CAGR of 9.6%. 259 288 ► The net traffic has increased from 259 MMTPA in 2011 to 340 MMTPA in 2015-16, growing at a CAGR of 7%.