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%.
► The available net capacity of the ports has been increasing y-o-y to handle the 2011-12 2012-13 2013-14 2014-15 2015-16 increasing potential traffic in ports of Capacity Traffic Gujarat. Source: GMB traffic highlights 2016
Proposed port led Special economic zones Port led SEZ and size (in hectare) Kandla port SEZ 400
Mundra port SEZ 2730 Kandla port SEZ Mundra port SEZ Dahej SEZ 1718
Reliance port SEZ Sterling SEZ 1263 Sterling port SEZ Dahej port SEZ Essar Hazira SEZ 1263 Sur port SEZ Essar Hazira SEZ Reliance SEZ 1764 Sur SEZ 50
Page 9 Project Information Suggested Location
Potential locations
The project mainly requires a ship to ship transferring arrangement at an anchorage ports. Anchorage ports are usually temporary in nature and may change depending upon weather conditions or as suitable for STS transfer operation.
Bedi Port/New Rozi Site Reliance port SEZ Sterling port SEZ Dahej port SEZ Dahej port Sur port SEZ Magdalla port
Essar Hazira SEZ
Potential Anchorage Ports Proposed SEZ near ports GMB owned ports
It will be beneficial for shipping lines to anchor their ships near SEZ so that they can avail the benefits of availing logistical support from the same ports. It is usually observed that the interconnected transport facilities are fully developed at special economic zones (SEZ). Suggested Locations
Bedi is located near Jamnagar. The anchorage is 6 nautical miles (NM) away from Bedi port, about 4 NM from New Bedi port and 2.5 NM from New Rozi Pier Bedi Port/New Rozi site. Site
Magdalla Magdalla is located near to Surat, which is a major industrial city of Gujarat. The Deep Water Anchorage is 15 nautical miles southwest from Magdalla Port.
Page 10 Project Information Suggested Location
About Bedi port Bedi Port has 4 lane road connectivity with state highway at a distance of 12 kms. It is also well connected with the Jamnagar railway station having wide gauge railway line at a distance of 7 kms. Facilities at shore
Transit Sheds/Godowns: ► 1 transit shed with total area of 930 sq. meter at Bedi port and 4,870 sq. meter at New Port are available. ► 6 covered storage godowns of about 6,455 sq. meter area at Bedi Port and 28 godowns with approximately 15,120 sq.m. area are available at New Bedi Port. Mobile crane unit ► The import cargo is handled mechanically with the port's mobile crane and private excavator cranes of New Rozi port-with 4 mobile cranes each of 12.5 tonnes capacity provided at the wharf. Traffic at GMB operated Jetties (in million metric tonnes) ► Commodities Handled 3.6 Fertilizer, Rock Phosphate, Coal, Corn, Soya Meal, Crude Soyabean Oil, Bulgar 3.9 Wheat, Green Peas, Dates, Rock Salt and 2016 2015 Pig Iron
About Magdalla port Magdalla Port has 4 lane road connectivity with state highway at a distance of 2 kms. The nearest railway is Surat and is 16 kms away.
Facilities at shore
Transit Sheds/Godowns: ► 1 transit Open Plots: 6 nos. (Area - 29644 sq. meter) ► Godown - 1 no. (Used for departmental stores/workshop etc.) Other Facilities ► Crawler crane (Tata - 320) with capacity of 16 MT and boom length 40 feet ► Navigation Systems-Radar System, A.I.S, Weather Station
Traffic at GMB operated Jetties (in million metric tonnes) ► Commodities Handled 3.8 Iron Ore, Scrap, Lime Stone, Pig Iron, Steel Slabs etc. and exports. H.R.Coils, Sheets, 4.7 Iron ore fines, Cement, Chemicals etc. 2016 2015
Page 11 Project Information Specifications of proposed Vessels
S. no. Built Specifications Estimated Price
1 1986 Sakskobing-Denmark DWT – 1,718 2 crores – 6 crores Length – 66.8 m. Draught – 4.5 m Ship type – Dry cargo
2 12/1998 Niestern Sander- DWT – 3,480 15 crores Holland Length – 92.75 m. Draught – 4.88 m. Ship type – Dry cargo
3 MV SINAR JAMBI - 4.353 DWT DWT – 4,353 17 crores - 2006 INDONESIA Length – 96 m. Draught – 3.98 m. Ship type – Dry cargo
4 MV SVS VEGA - 3.200 DWT - DWT – 3,200 16 crores 1996 HOLAND Length – 90.23 m. Draught – 4.63 m. Ship type – Dry cargo
Page 12 Project Information Tariff and charges
S. Component Magdalla Bedi No. Rate/GRT Rate/GRT
1 Port Dues • Ships arriving to INR 25 INR 25 load/unload cargo from/to daughter vessels • Vessels arriving to INR 7.50 INR 7.50 load/unload cargo 2 Pilotage charges • Minimum charge when INR 30,000 INR 30,000 inward and outward pilotage is provided by GMB • Minimum charge when INR 16,500 INR 16,500 inward or outward pilotage is provided by GMB • No inward/outward INR 3,000 INR 3,000 facility being provided by GMB, mandatory tariff
3 Anchorage charges • Foreign Vessels USD 0.019/day USD 0.019/day • Coastal vessels INR 0.45/day INR 0.45/day • Other INR 0.54/day INR 0.54/day 4 Rent for • Open space INR 600 INR 600 • Tin shed space INR 300 INR 300 • Pakka-Shed INR 1500 INR 1500 5 Landing and shipping fees (GMB jetty) • Solid chemicals (salt, INR 31/T INR 31/T soda ash etc.) • Food grains and pulses INR 28/T INR 28/T • Iron and steel and other INR 60/T INR 60/T metals • Minerals INR 40/T INR 40/T • Other Dry cargo INR 33/T INR 33/T
Page 13 Project Information Infrastructure Availability Logistics & Connectivity
Gujarat has an extensive outlay of robust physical, social and industrial infrastructure, which makes it an excellent investment destination.
Rail Road
Gujarat has a total railway length of 5,257 • Gujarat has a wide road network of around km (8.25% of India) 77,030 km. Of these, 95% roads are Mumbai-Ahmedabad bullet train project surfaced, all-weather roads. planned with investment of US$16.58b • In 2015-16 budget, the state government further plans to invest US$8.3m in a four- Ahmedabad metro rail project construction to lane road joining Vadodara- begin in 2015-2016 with US$101.3m budget Ankleshwar,US$2.7m in construction of Govt of Gujarat further plans to invest expressways and US$81.4m in resurfacing US$1.65m in regional rail projects roads
Air Port
• The state has 18 domestic airports (the highest • The state has one of the strongest port in any state) and one international airport. infrastructures in India, with 45 ports(21% of • During 2015-16, the Ahmedabad airport handled India’s ports are in Gujarat), including one 67,774 tonnes of freight. Freight traffic at major port at Kandla and 44 minor ports, along Vadodara and Rajkot measured 966 tonnes and 1,600 km coastline. 79 tonnes respectively during April-September, • It is the first state in India to take up port 2015. privatisation. Gujarat Maritime Board, has developed port privatisation models such as private/joint sector ports, private/captive jetties. Utility
Water Power
• Gujarat has a state-wide “water supply grid” Gujarat has 24-hour 3-phase uninterrupted spread across 1,20,769 km that aims to serve power supply throughout the state, with 75% of Gujarat’s population. installed power capacity of 29,293 • In the state budget for 2015-16, US$83m was MW(10.38% of India’s overall power capacity) allocated for bulk water supply schemes and The state has surplus power to the tune of US$574m was allocated for improving the 2000 MW. infrastructure of existing water supply systems.
Page 14 Potential Collaborations and Opportunities
► Some Global STS operation companies
Grapen - http://www.graypen.com/ Teekay Marine Solutions - http://www.teekaymarinesolutions.com/ Lavar Sipping - http://www.lavarshipping.com/sts-operations/ SafeSTS - http://www.safests.com/ SPT Inc. - http://www.sptmts.com Shipload Marine Pvt. Ltd. - http://www.shiploadmaritime.com/
► Some Indian STS operation companies
The Shipping corporation of India Ltd. (Lighterage cell) - http://www.shipindia.com/services/lighterage/sts-lighterage.aspx Ocean Sparkle Ltd. - http://www.oceansparkle.com/services-ship-to-ship- operations.html
► For collaboration of maritime training
U. V. Patel College of Engineering, Kharva (North Gujarat) Anglo Eastern Maritime Training Centre, Mumbai Arya Marine Academy, Mumbai BP Marine Academy, (Two Campus) - Navi Mumbai (Belapur & Panvel) Baba Marine Institute, Thane (Maharashtra) Bonzer Academy of Maritime Studies, Mumbai Columbus Maritime Training Institute, Thane (Maharashtra) Indian Maritime University,Chennai
Page 15 Key Considerations
Some key considerations related to ship to ship (STS) operation Responsibility of cargo ship and vessel owner
The vessel owner/operator has responsibility to make available safe ship gear and equipment, training for safe procedures and maintenance activities. It is the responsibility of the vessel operator to ensure periodical inspection and maintenance of the vessel. It is the responsibility of vessel operator and owner to make available life saving equipment and medical assistance on board. If the vessel is carrying any hazardous goods/cargo then operator should inform workers on board about its storage location, potential hazards and other safety measures.
Responsibility of stevedoring company/operator
• To provide necessary personal protective clothing and gears like safety helmet, safety shoes etc. • To provide training of safe working procedures on cargo handling operation to workers employed. • To appoint experienced supervisors with adequate knowledge of safety to charge and supervise cargo handling works on board vessels. • To provide proper lifting gear that has been tested and examined for use by workers employed. Some key considerations related to site selection for anchorage ports are Site selection of anchorage ports
• The site selection for anchorage ports should be temporary and latest technology and weather prediction techniques must be used to pin point the locations where ships can anchor. In case a huge bulk cargo ship with much bigger hulk enters port of anchorage proper safety procedures should be taken into consideration. If required the location of anchorage port can be shifted to much deeper level.
Operating environment for workforce
• Only trained and experienced workforce should be employed keeping in mind the chances of error and disastrous effect it can have on the marine life as well as on the life of workers onboard. • Proper safety equipment's and medical attention should be provided to workforce keeping in mind exposure to the hazardous cargo and chances of accidents. • In most of the companies STS operation may happen anytime depending upon the arrival of the ship, the workforce should be engaged in shifts so that they work in full consciousness.
Page 16 Project Financials
The cost of project here describes the total cost which the private player needs to incur in order to have a efficient STS operation at any of the suggested ports. In order to have efficient STS operation we assume the private player should have min. 1 vessels, 1 will be operational at a time. Capital cost of project Project components & specifications Cost (INR crore) Cost of a new vessel (1 no.’s) 40 (Type-Geared General Cargo) (Length: 78.3 m, Width: 11.58 m, Draught: 4.6 m) (Capacity: 2100 tonnes) Pre-operative expenses 6.75 Contingencies 2.2 Cost of machinery (pumps, cables, hooks etc.) 0.8 Margin money for working capital 5 Total project cost (a) 58.75 Wages and other expenses Project components & specifications Cost (INR crore) Upfront fees GMB/annum 0.40 Salary and Wages 4 Other expenses 4 Total project cost (b) 8.40
Estimated man-power requirement:50 Operational Head-1 Other operational staff-15 Managers-4 Laborers and others-30
The total cost of project is estimated at (a) + (b) = INR 67.15 crores
The cost of project comes down by 27% to INR 49.15 crores, if we use a refurbished 2nd hand vessels.
Page 17 Approvals & Incentives
Approvals required
Industrial approval
► Registration with Director General of Shipping
► Registration at Gujarat Maritime Board (GMB) for operating in ports Environment clearance
► ‘No Objection Certificate’ from the Gujarat Pollution Control Board
► Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF) Arrangement of power
► Power - Discounts Incentives by Indian Government and Govt. of Gujarat
Key incentives by Govt. of India -
► In the Maritime agenda (2010-2020) an investment of INR742 billion for capacity development in Gujarat till 2020.
► In Sagarmala project an investment of INR4 lakh crore has been allocated for areas like port modernization, upgrading road connectivity etc.
► Central government has allowed 100% FDI in sectors related to shipping industry. Key Incentives by Govt. of Gujarat -
► Many projects under single point mooring and LNG terminal development has been planned as greenfield projects.
► Plans of port city development and SEZ development nearby ports.
► IPMS compliance at port locations
► Port mechanization and increased port to port communication.
► Availabilities of private as well as GMB port jetties.
Page 18 Gujarat Maritime Board www.gmbports.org
Ports & Transportation Department, Government of Gujarat
www.pnt.gujarat.gov.in Industries & Mines Department
www.imd-gujarat.gov.in
Industrial Extension Bureau
www.indextb.com
Directorate General of Shipping (DGS)
www.dgshipping.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
‘SAGAR BHAVAN’ Sector 10-A, Gandhinagar - 382010. Gujarat (India) Phone: +91 79 23238346 +91 79 23238347 Fax: +91 79 23234703 Email: [email protected] www.gmbports.org