Handing containerized barges at the anchorage ports in Gujarat
Ports, Port 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 Project Financials 16 Approvals & Incentives 17 Key Department Contacts 18
Page 2 Project Concept
What are containerized barges ?
A containerized barge is a kind of vessel which is primarily utilized for the purpose of loading cargo and transporting it from one location to another. In contrast to a cargo ship, containerized barges are not independent carriers or vessels. In order to be moved from one location to another it has to be towed by another navel carrier or vessel. In common practice barges are mostly used in inland transportation mediums like river, lakes or canals. In recent times there uses have also increased in sea borne transportation.
In structure, a barge is flat-shaped in the base, same as a raft. The main rationale behind this structure is to enhance the cargo carrying capacity of the barge and maximum amount of cargo can be hauled and transferred. Types of barges
Dry Bulk Cargo Barges – These barges are made to carry dry bulk cargo like food 1 grains, sand and other construction materials. These type of barges carry this cargo from one area to another, sometimes it involves more than one barge to complete the single operation.
Liquid Cargo Barges – These are barges which are specifically designed to carry 2 liquid cargo, such as chemicals and fuels. These barges are designed as per specified criteria keeping in mind the safety parameters. These barges are considered more safe and spill proof than rail or road networks.
Car-float Barges – These barges are not 3 used as frequently. It is fitted with rails so that rail coaches can be easily transported through them. It is mostly use to transport old coaches or new coaches in need of maintenance across various water bodies.
Page 3 Project Concept
Power Barges – These barges are essentially 4 power plants that are installed on a deck of the barge. They were developed during WWII in order to provide power generation on a temporary basis. While still used today, they can have single or multiple turbines, engines, boilers. They can be gas, coal or nuclear powered.
Deck and Construction Barges - These 5 barges are built specifically to transport large machinery like material handlers and other construction equipment. They are also often used to work on construction projects in congested areas that are located directly on bodies of water (think cities, dams, bridges, etc.).
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 have transfer of cargo to barges etc. ► 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.
Page 4 Market Potential Global
Global shipping industry overview
Global shipping industry 2010-14 ► The world seaborne shipments reached 10 8.0% nearly 9.8 billion tons at a growth rate of 7.1% 2.5% from 2010 to 2014. 10 9.8 5.3% 9.6 6.0% ► As of 2015, the seaborne shipments 9 3.9% 9.2 constitutes 80% of the global trade. 4.0% 9 8.7 4.3% 2.5% ► World container throughput increased 8.4 2.0% marginally to 71.9% in 2014, owing to 8 increasing south-south trade. 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
Global containerized trade overview
Total containerized trade ► The global containerized trade was 171 million TEU’s in 2014, an increase of 5.3% compared to 2013. ►
onnes The growth in containerized cargo has been rising at a comparatively stable pace of 4% 9514 9842 8409 8784 9197 y-o-y basis from 2010 to 2014. ► Steady growth in dry cargo transportation fueled by increasing imports by China, the demand for container shipping has been
Cargo in t in Cargo million 3302 3505 3614 3762 3903 increasing. 2010 2011 2012 2013 2014 ► The prices for container shipping in 2014 Total cargo Containerized Cargo remained volatile amid growing speculation Source: Review of maritime transport 2015, UNCTAD of change in market fundamentals. Performance of top 3 container cargo trading countries, 2015 5.93 South Korea CAGR : 6.7% 5.2 11.9 US CAGR : 3.0% 11.2 36 China 31.3 CAGR : 7.2% 2014 2013 2012
Page 5 Market Potential India
Indian shipping industry overview
Containerized cargo traffic at major ► Jawaharlal Nehru Port Trust (JNPT) ports in India continues to be the largest handler of (in million tonnes) container cargo in India, with 48% of total 570.03 560.14 545.79 555.50 581.34 container cargo followed by Chennai (25%) and the remaining share of 27% handled by other major ports. 179.1 186.0 187.3 188.8 ► The Average Turnaround Time at major 121.2 ports improved from 4.24 days in 2000-01 to 2.13 days in 2014-15. 2010 2011 2012 2013 2014 ► Growth of cargo throughput was maximum Total Cargo Containerized cargo at 35.3% at Mormugao, Goa, followed by Source: Indian shipping statistics 2015 Chidambaranar, Tamil Nadu (19.3%). Composition of Indian tonnage 2014 ► The composition of dry cargo liner carrying container ships was approximately 17% in Other 2014. 5% ► In India, 55.2% of total traffic was handled by Dry cargo liner Major Ports and the remaining 44.7% of total 17% Oil Tanker traffic was handled by Non-Major Ports. 53% ► In the past decade, the composition of dry cargo has grown to 25% in 2015.
Dry Cargo bulk ► Some of the major ports handling container carrier traffic are Jawaharlal Nehru Port, Chennai 25% Port etc.
Container traffic loaded/unloaded 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
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 (P)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 GoI* provides an incentive of shipping liners. Further, the INR 3,000/TEU for Full Sagarmala project will attract container load (FCL). more cargo traffic in India.
Geography Majority of the container traffic Gujarat is strategically located is from African countries and at a point which between Middle European regions, ports of East, Africa and Europe. Gujarat can be of strategic importance in such routes.
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.
In terms of railway network per 100 km of area, Gujarat has 2.66 km network against 2.01 km for the nation.
Good Governance The state is one of the least Gujarat leads in project corrupted in the country with an clearance in coastal areas with anti-corruption index of 0.69 a success rate of 93%.
Support Gujarat has a number of export Gujarat was the first state to Industries houses and container cargo establish a private port in India, importing industries which may along with that it has 2 out of 3 also gain from similar project. LNG terminal gateways in India.
*GoI – Government of India
Page 7 Gujarat competitive advantage
Port locations in Gujarat
Jakhau Mundra Navlakhi Bedi Okha
Kutchhigarh Bhavnagar Dahej Mithivirdi Magdalla Mahuva Porbandar Hazira Pipavav Jafrabad Veraval 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.
► Gateway to 2 out of 3 LNG terminals in India are from Gujarat.
► Establishment of first Chemical Terminal at Dahej by GCPTCL Traffic at GMB ports (in million tonnes), 2016: Total 339.8 Million Tonnes
144.0 66.0 48.0 6.06.0
POL Coal Container Fertilizer Iron-Ore Source: GMB traffic highlights 2016
Page 8 Gujarat competitive advantage
Traffic details at Gujarat ports Cargo traffic in Gujarat (Million tonnes) CAGR of traffic growth 3360.9 3397.8 2878.2 3099.5 GMB Ports 10.9% 2590.3 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 MMTPA in 2011-12 to 466 MMTPA in 466 422 2015-16, growth with a CAGR of 9.6%. 366 387 323 336 340 ► The net traffic has increased from 259 288 310 259 MMTPA in 2011-12 to 340 MMTPA in 2015-16, growth with a CAGR of 7.0%.
► The exports and imports at GMB ports has remained same, total container cargo traffic at GMB ports was 48 Million metric tonnes. 2011-12 2012-13 2013-14 2014-15 2015-16 ► Container cargo traffic at all the major Capacity Traffic ports of Gujarat totaled 123 million metric tonnes in FY16. 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 Sur SEZ Reliance port SEZ Sterling SEZ 1263 Sterling port SEZ Dahej port SEZ Essar Hazira SEZ 1263
Reliance SEZ 1764
Essar Hazira SEZ Sur SEZ 50
Page 9 Project Information Suggested Location
Potential locations
The project mainly requires an anchorage location which has to be nearby a GMB owned port and should have anchorage facility which could handle average sized container ships.
Okha port
Porbandar port
Potential Anchorage Ports Location GMB owned ports
The suggested locations of Okha port and Porbandar port lies in the Jamnagar and Porbandar regions of Gujarat respectively. The location of Okha is near to the proposed Reliance port SEZ and can provide cost effective alternative to container ship liners. Suggested Locations
Port of Okha lies in Jamnagar city, it’s a fair weather port. This port has a strategic advantage of being near to Porbandar and Jamnagar. Okha Port
Porbandar Port Porbandar port is located in the Porbandar city and it is also an all weather port. It has berthing capacity up to 50,000 DWT.
Page 10 Project Information
Suggested Location
About Okha port Okha is a well connected port by broad gauge railway system. It is connected by road to both Jamnagar/Porbandar by state highway and then by National Highway. National Highway-8E is 30 km away at Dwarka. Facilities at shore
Anchorage point: ► Anchorage is 2.4 km off shore. Vessel upto 7.5 m draught can be berth at this port. Other Facilities ► Barges: Private barges are available (No port barges) ► Cranes : 1 no. of mobile crane with capacity of 12.5 tonnes. ► Fresh Water : Limited supply by private barges ► Fuel Oil : Available
Traffic at GMB operated Jetties ► Commodities Handled (in lakh metric tonnes) Coke, Coal, Wheat, Sulphur and Fertilizer, 50 Calcium Bauxite, Onion, Clinker, Raw 45 Bauxite, Chemicals and Soda Ash 2016 2015 About Porbandar port Porbandar Port has multiple-lane road connectivity with national highway 8B (6 kms. away) and state highway no. 6. The nearest railway station is Porbandar which is 5 kms. from from the port.. Facilities at shore
Anchorage point:: ► Anchorage is located at about 2 km offshore, south-West of break water, with good holding ground and a depth of 9.5 meters. Approach to the anchorage of break water is 1.1 Nautical miles. Anchorage operations remain closed during monsoon period due to heavy swell and winds. Other facilities ► Cranes : TIL models 1,610 with 16MT capacity ► Dry dock : 45.72m x 16.76m ► Godown : 34 nos. with total area of 2,41,73.53 Sq. m
Traffic at GMB operated Jetties ► Commodities Handled (in lakh metric tonnes) Coal, LPG, Wet dates, Salt, Cement/Clinker, 25 Clay Bauxite, Onion, Raw cotton, Soda Ash, Marin product etc. 18 2016 2015
Page 11 Project Information
Tariff and charges S. Component Okha Porbandar 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 1,500 INR 1,500 5 Landing and shipping fees (GMB jetty) • Reefer Containers • 40 feet loaded INR 900 INR 900 • 40 feet empty INR 400 INR 400 • 20 feet loaded INR 480 INR 480 • 20 feet empty INR120 INR120 • Other conatiners • 40 feet loaded INR 720 INR 720 • 40 feet empty INR 180 INR 180 • 20 feet loaded INR 390 INR 390 • 20 feet empty INR 100 INR 100
Page 12 Project Information
Specifications of proposed barges
S. no. Built Specifications Estimated Price (INR) 1 Hooper Barge NK-2006- DWT – 10,000 15 crore Malaysia Length – 100.6 m. Draught – 4.88 m
2 1998 Korea DWT – 3,000 5 crores Length – 90 m. Draught – 5 m.
3 DECK BARGE 1988 LOUSIANA DWT – 5,600 7 crores USA Length – 72.17 m. Draught – 5.26 m.
4 2008 PANAMA NEW HOOPER DWT – 35,000 35 crores Length – 171 m. Draught – 7.86 m.
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 wide road network of around Gujarat has a total railway length of 5,257 77,030 km. Of these, 95% roads are km (8.25% of India) surfaced, all-weather roads. Mumbai-Ahmedabad bullet train project • In 2015-16 budget, the state government planned with investment of US$16.58b 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 42 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 41 minor ports, along Vadodara and Rajkot measured 966 tonnes and a 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 opportunities
► Key companies offering barging services globally
TECLOGISTICS Ltd., PA,USA CIGCO – Camover International Group, Florida, USA SB Marine Pvt. Ltd., Singapore
► Key companies offering barging services in India
ABC India Ltd., Kolkata Agarwal Carriers Corporation of India, Mumbai Parekh Group, Mumbai Lots shipping Ltd., Kochi Shahi shipping Ltd.,Mumbai Sitara shipping Ltd.,Mumbai
► 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
► For training in container handling and related activities
OERC Academy, Mumbai CONCOR Training center, Gurgaon Anglo-Eastern Maritime Training Centre, Mumbai and Delhi Lloyds Maritime Academy, London, UK
Page 15 Key Considerations
Some key considerations related to container handling and barge operation which should be kept in mind while initiating any such activity are Precautions in container handling
• Container specification: All containers must clearly and visibly list the minimum basic information about the contents in the container, as prescribed by CCIL. • RTG or Crane safety procedures: Cranes and operation of RTG posses a potent threat of safety in the container unloading and storage areas. Safety precautions and procedures by shipping corporation of India and CCIL should be followed. Some International agencies like PEMA (Port Equipment's Manufactures Association) also issues guidelines related to it. • Storage of containers: Containers should be unloaded and stored in a place where there is no scope of fire and place is relatively free from corrosive conditions.
Coordination between ships and barges
• In the due course of operation, the bigger ship carrying containers can collide with other smaller vessel and can receive severe structural damage and may result in damage to containers onboard and cargo in it. • Regulatory risk and chances of human error: The regulatory framework may not address all the ships (of various sizes and capacities), along with that chances of human error is always present, it can be eliminated by setting higher standards of operation.
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. Also, the latest technology and weather prediction techniques must be used to pin point the locations where ships can anchor. In case a huge tanker 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. • Proper safety equipment's and medical attention should be provided to workforce keeping in mind exposure to the dangerous fumes and possibility of explosion. • In most of the companies container handling 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 invest in order to have a efficient service of barge for containers. In this projections the location is near Okha (Kutch). In order to have efficient operation we assume the operator will have 2 barges with loading capacity of 35,000 DWT and a backup land area for loading and unloading containers. Capital cost of project
Project components & specifications Cost (INR crore)
Cost of a new crane barge (2 no.’s) 70 (Length – 171 m, Width – 24 m, Draft – 7.86m)
Cost of land (for unloading containers) 20.38 Total land required (4,00,000 + 7,700) sq. mtr Cost of land – INR 500 per sq. mtr
Pre-operative expenses 20
Contingencies 2.2
Cost of machinery (pumps, cables, hooks etc.) 1
Margin money for working capital 2
Total project cost (a) 115.58
Wages and other expenses
Project components & specifications Cost (INR crore) Upfront fees GMB/annum 0.40 (includes charges for using the port services)
Salary and Wages 4
Other expenses 4
Total project cost (b) 8.4
► The total cost of project is estimated at (a) + (b) = 123.98 crores
► The cost of project comes down by 14% to 106.62 crores, if we use a refurbished 2nd hand jetty.
Page 17 Approvals & Incentives
Approvals Required
Industrial approval
► Registration with Director General of Shipping
► Registration at Gujarat Maritime Board(GMB) for operating in ports. Land for project
► Allotment of plot/shed in Industrial Estate from GIDC Environment clearance
► ‘No Objection Certificate’ from the Gujarat Pollution Control Board
► Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF) Arrangement of power
► GIDC estates - Zonal office
► Captive power - Gujarat Energy Transmission Corporation Limited (GETCO) Incentives by Indian Government and Govt. of Gujarat
Key incentives by Govt. of India -
► In the Maritime agenda (2010-2020) an investment of INR 742 billion for capacity development in Gujarat till 2020.
► Central government has allowed 100% FDI in sectors related to shipping Industry.
► Government has exempted custom duties and central excise duty levied on bunker fuels, namely IFO 180 CST and IFO 380 CST, used in Indian flag vessels carrying empty and domestic containers between two ports in India.
► Provision of payment of light dues online makes process easy and reduce detention time of ships. 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.
► Proposed Ro-pax project which would provide more convenient ways to transfer cargo between Saurashtra and South Gujarat.
Page 18 Gujarat Maritime Board www.gmbports.org
Gujarat Infrastructure Development Board www.gidb.org
Industries & Mines Department www.imd-gujarat.gov.in
Gujarat Industrial Development Corporation www.gidc.gov.in
Office of Industries Commissioner
www.ic.gujarat.gov.in
Industrial Extension Bureau www.indextb.com
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