VIBRANT GUJARAT
PORTS & SHIP BUILDING INDUSTRY OF GUJARAT - GATEWAY TO INDIA
1 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
2 1. Indian Port & Shipbuilding Industry at Glance
3 Indian Ports - Traffic Growth & Highlights
The port & maritime industry plays a vital role in growth of • Major Ports, India economic activity & trade. Major Ports • 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. Kandla • All the major ports are governed by the Major Port Trusts Kolkata
Act of 1963, except the Ennore port, which is under the Mumbai Paradip Jawaharlal Nehru provisions of the Companies Act, 1956. However, non Port Vishakhapatnam
major-ports are the under the jurisdiction of the state Marmagoa Ennore governments & governed by respective State New Mangalore Chennai Governments Cochin • All the Indian ports together handled about 976 MMT of Tuticorin Port Blair traffic in 2013-14 of which Major Ports together have
handled 556 MMT. Source: Indian Port Association, Ministry of Shipping
4 Indian Port Sector - A Glance
. 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 Non- Major Major ports was around 556 MMT, while the non-major Ports Major Ports ports together handled 421 MMT. 43% 57% . 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. 2000
1500 1624 1635 1635 FDI Inflow in Indian Port Industry 1559 1000 1066 . Due to favorable federal & state policies the Sector has 500 FDI Inflow (USD Million) witnessed considerable FDI inflows since April 2000 0 2008 2009 2010 2011 2012
Source: http://shipping.nic.in, Planning Commission; Aranca Research, 12th Five Year 5 Plan of India Indian Port sector - Poised for High Growth
Maritime Agenda 2010-2020 12th FIVE YEAR PLAN (2012-2017)
• The Maritime Agenda (2010-2020) proposes an . The 12th Five Year Plan proposes to give thrust to coastal investment of INR 1,280 billion in 424 projects in shipping. The plan emphasises the need for setting up major ports and INR 1,680 billion in non-major coastal terminals at major ports and improving the ports by 2020. connectivity with the non-major coastal ports. Gujarat is expected to benefit hugely with the promotion of coastal • It was estimated in the Maritime Agenda that shipping as it is the nearest outlet to the northern land Gujarat alone would build capacity of 620 MMTPA locked states. at estimated INR 742 bn. The capacity addition of 620 MMTPA represents 48% share of total capacity . The total capacity of the port sector is envisaged at addition envisaged by the Non-Major ports. 2,289.04 MMTPA. Out of this the capacity of the Non-Major ports are expected to be 1059.8 MMTPA. The estimated • Many green-field ports are planned in Gujarat. The traffic at the Non-Major ports is envisaged at 815.2 projects are also envisaged in the areas of coal MMTPA. Ports of GMB are expected to have a lion’s share in terminal , Single Buoy Mooring (“SBM”), Container the traffic and capacity of the Non-major ports. terminals and LNG terminals. . POL, Coal and Containers are likely to be the major commodities that would be handled at the ports.
Source: Maritime Agenda 2020, 12th Five year Plan6 2. Gujarat Ports : Current State Assessment
7 Gujarat - The Gateway of India
• Gujarat is strategically located with India’s longest coastline of 1600 km and is the nearest Gujarat : Port Locations maritime outlet to Middle East, Africa and Europe • The state has 42 ports which includes 1 major port and 41 non-major ports • The state has the highest number of operational ports and commercial cargo ports Jakhau Mundra • The first state in India to invite Private Sector Navlakhi Participation through competitive bidding Bedi • The first state in India to have a dedicated Sikka OkhaPositra Chemical Terminal Bhavnagar Kutchhigarh Dahej • The first private port of India – Pipavav is in Mithivirdi Gujarat Porbandar Mahuva Magdalla Pipavav Hazira Jafrabad • The state also has the world’s one of the largest Chhara Vansi Borsi ship recycling yards at Alang Veraval Nargol • Gateway of India’s two LNG Terminals amongst three in India Private Sector Ports
GMB Ports
8 Vast Hinterland of Gujarat
Excellent rail-road connectivity and ideal for multi- Pipeline Network modal transportation
Well-connected by crude pipelines with other states/ refineries
Hinterland covers Delhi national capital region, Gujarat, Rajasthan, Haryana, Punjab and western Uttar Pradesh.
9 Gujarat Ports: Port Structure & Privatization Model
• GMB has successfully developed private ports at Dahej, Pipavav, Hazira and Mundra. • Ports under development are Nargol, Dahej & Chharra.
Types of Ports in Gujarat Privatization Model
Captive Jetties (BOMT) Major Ports Non-major Ports (come under the purview of the Central (come under the purview of the Private Ports (BOOT) Government State Government) Private Jetties(BOT) Ports run by Gujarat Private Ports Maritime Board Development in private terminals (GMB)
Rail Linkages (Private investment) Captive Private GMB Jetties Jetties Jetties (private) Shipbuilding/repairing yard
Coastal area development/Ro-Ro ferry
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Source : Indian Port Association Gujarat Ports Sector : Important milestones
Establishment of Alang Ship Formation of Gujarat Maritime 1982 Recycling Yard, the largest in the Board, the first maritime board 1983 world
Announcement of the first Port Port of Pipavav became the first 1995 1996 Policy of the country private port of India
Commencement of first BOOT Establishment of first Chemical 1997 Policy, new model of port 2001 Terminal at Dahej by GCPTCL development
Commencement of first Double- Establishment of first LNG 2003 2004 stack container train at Pipavav Terminal at Dahej by PLL
Announcement of first India’s most advanced VTMS 2010 Shipbuilding Policy in the 2010 unveiled in the Gulf of Cambay Country
2012 Solid Cargo Port Terminal, Dahej 2013 Coal Terminal at Mundra
11 Gujarat Ports –Growth Story & Traffic Handled
• Gujarat is one of the States that have played a proactive role in the development of minor ports on its 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.
GMB Traffic grew at CAGR of 13.3% between 2003-4 and 2013-14
India India India India India India 97% 96% 85% 74% 72% 68%
GMB GMB GMB GMB GMB GMB 3% 4% 15% 26% 28% 32%
1982 1990 2000 2011 2012 2014
Gujarat non-major Ports handled 32% share of total national cargo in 2013-14, up from a meager 3% in 1982.
12 3. Gujarat Ports : Traffic and Capacity
13 Gujarat accounts for a Lion’s share in the Traffic Handling in Indian Ports
• The total traffic volumes of non-major
ports continued their upward trajectory Major & Non- Major Ports – Traffic Handled with 43% share in traffic handled at Indian 1200 ports in 2013-14. Traffic in MMTPA 1000
• Traffic at GMB ports have increased at 800 310 206 231 259 288 CAGR of 13.3% from 2003-04, while for 600 147 153 132 108 97 Major ports, the traffic has increased at a 400 89
519 531 561 570 560 546 555 CAGR of only 4.9%. 424 464 200 345 384
• Contrary to the sluggish pace of economic 0 development during 2013-14 in India and
around the world, GMB has achieved a fair Traffic at other State Non-Major Ports Traffic at GMB ports increase of 7.7% in the traffic, while the Traffic at Major Ports traffic at Major Ports has grown by just 1.8 % during the year 2013-14.
Note: Above analysis is based on the estimated data published by Ministry of Shipping and IPA 14 Gujarat Ports: Traffic Analysis
• Gujarat ports account for 40.7% of traffic in the total national port traffic – more than any other State. 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.
Share of GMB in Total Maritime Traffic of India Share of GMB in Total Traffic at Non-Major Ports
32% 26%
68% 74%
Traffic at GMB Ports National Maritime Traffic excluding GMB Traffic at GMB Ports 309.9 Traffic at Non-Major Ports 110.6
15 Gujarat Ports: Traffic Analysis in the last decade
Capacity v/s Traffic (MMTPA)
Traffic/Capacity 450 400 387 400 366 350 323 • The Capacity has increased from 146 350 300 284 310 300 288 MMTPA in 2003-04 MMTPA to 387 235 244 250 250 259 million tonnes in 2013-14 at a CAGR 182 198 231 200 200 151 164 206 Traffic 146 150 150 of 11.44% Capacity 147 153 132 100 100 108 89 97 • Since 2003-04 the traffic has grown 50 50 0 0 at a CAGR of 13.3%
Capacity (MMTPA) Traffic (MMT)
Capacity Utilization Capacity Utilisation
90% 84% 81% 80% 79% 80% • The capacity utilization rate at Gujarat 80% 73% 74% 64% 66% 65% non-major ports has increased from 70% 61% 60% 61% in 2003-04 to 80% in 2013-14. 50% 40% 30% 20% 10% Capacity (%) Utilization Capacity 0% 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Gujarat non major ports capacity will reach approx. 864 MT by 2020
16 Gujarat Ports: Commodity wise Traffic at Gujarat Non-Major Ports (2013-14)
Import of Major Commodity Export of Major Commodity
Other Other H.S.D. 23% 26% 28% Crude Oil Iron Ore 32% 2% Aviation Turbine Fuel 4% Cement Container Container Clinker 20% Cargo 4% 8% LNG Coal Naphta M.S.Petrol 6% 29% 6% 12%
Major Commodities Import from Major Commodities Export to
LNG and LPG UAE, Qatar, Panama Petroleum and Chemical UAE, Europe, Singapore and Indonesia South Africa, Indonesia, Coal Australia, China Minerals UAE, China, Georgia and Japan Crude Oil and Petroleum UAE, Brazil, Mexico Food grain and Agricultural USA, China, Indonesia, UAE and Products Products Japan General Cargo USA, Europe, Gulf General Cargo Europe, Sri Lanka and UAE
17 4. Shipbuilding & Ship-repair Industry of Gujarat
18 Gujarat : Ship building Industries
• Gujarat boasts of 60% share of the Indian shipbuilding order book. Existing Shipyard location in Gujarat • 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 • Gujarat is targeting a capacity of 3 million DWT – thus maintaining its existing share of expected national market in shipbuilding / repair market. Bhavnagar Dahej • Favorable parameters for development of ship building industry: Ghogha
1. Rise in overseas trade resulting in demand of new ship /ship Magdalla Pipavav Hazira conversion and ship repair Billimora 2. Indian Peninsular coastline faces international sea route
3. Availability of favorable locations for setting up of shipyards Number of ships built in Gujarat in last 30 decade (124) 4. Availability of resources in terms of steel, machineries, wood, non- 25 25 ferrous metals etc. 20 15 15 15 15 5. Availability of skilled labour at comparatively lower wages 10 10 10 8 7 8 6 5 6. Business friendly atmosphere 5 0 • Supportive role of the Government to promote and facilitate the shipbuilding industry
19 Source :Gujarat Maritime Board Ship Recycling Industry of Gujarat
Alang-Sosiya Ship Recycling Yard is one of the largest Ship Recycling Yards in World. (2013)
450 415 45 394 400 40 348 357 350 38.6 35 38.3 298 294 300 264 30 30.7 250 29.4 28.2 25 196 200 20 136 136 150 19.4 15 19.8 101
100 10 Tonnes Lakh
Number of Ships of Number 9.4 50 7.6 6.4 5 4.8 0 0 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 04 05 06 07 08 09 10 11 12 13 14
► 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.
20 5. Potential Opportunities in Gujarat Port Sector
21 Gujarat– Strategy for Development
Past Strategy PresentContoso Strategy Future Strategy
1. Port City Development 1. GMB was established for 1. Short term – Private Jetty 2. Port-based SEZ/ SIR the purpose of Long Term - Joint Sector & 3. Coastal Shipping/ Ro- Pax Private Ports development commercialization of Gujarat 4. Bunkering facilities 3. Revival of Old Ports Ports 5. Port mechanization 4. Expansion of Greenfield 6. Port connectivity 2. GMB built and operated its Ports 5. Developing Ship Building 7. IPMS Compliance own ports Yards 8. Cleaning and greening of 3. Captive jetty concept was 6. VTMS Application ports 7. Disaster and Environment 9. Maritime Cluster introduced for port based Management Plan Development industries 10. Maritime Education
22 Gujarat Port: Policy Framework
GoG initiatives applicable in the Implication for Investor Port Sector 1982 Formation of Gujarat Maritime All ports in Gujarat (except the Major Port) come under the purview of GMB Board (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
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 Investors can bid for structured Projects yards on the east and west coast through public-private partnership
23 Gujarat: Leader in Bringing Private Investments in the Port Sector
35000 30672 30000 The private 25000 investments in port sector grew at CAGR 20000 12758 of 10.23 % from 15000 10000 2003-2004 to 2013- Crores INR 2014 5000 0 Cummulative Investment in Investment Cummulative 2003-04 2013-14
Vibrant Gujarat Summit (VG)
► A total of 63 MoU were signed with a substantial amount of investments in the port sector during VGGIS – 2013.
► VGGIS-2013 saw massive interest in development of port facilities which envision total capacity creation of 660 million tons by 2015-16.
► Investments have been planned for new Greenfield ports, along with the expansion of existing ports; Shipyard projects, expansion of captive facilities and others.
24 Gujarat Ports :Stake Holders
25 Gujarat : Ro-Pax Ferry Services
GoG has embarked on a strategic & pioneering initiative, first of its kind in subcontinent of commissioning Ro-Pax Project along Gujarat coast.
► 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 Proposed Dahej Terminal ► By the year 2014-15, it is aimed to complete the work of Terminal construction and the Capital Dredging. Responsibilities of Integrated Ferry-cum-Terminal Operator of Ro-Pax
Financing, procurement/ leasing Operation and Maintenance and modification of vessel of the Terminal Proposed Gogha Terminal
Operation, maintenance and Operate ferry service management of the Project
26 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
Gujarat is strongly emerging as a new shipbuilding destination in South Asia Shipbuilding skill Ship technology development centre centres The Shipbuilding Policy 2010 of Gujarat intends to Specialist service Specialist sub maintain share of 60% i.e. 3 million DWT of National providers Marine contractors target (5 million DWT) in Shipbuilding/repair market Shipbuilding Engineering Parks Reduction in overall production cost Shipyards to built college/ Polytechnic ships of different sizes
Faster turnaround and reduction in profitability Improved production cycle Jetty to cater need of Ship machinery MSP suppliers Benefits of MSP Identified location for MSP : North of Narmada in Dahej, Old Reduction in inventory & logistic costs Bhavnagar port area, Bhavnagar Coastline in Gulf of Cambay, between Navlakhi to Jodiya and Coastline near Mandvi in Use of common infrastructures in economical manner Gulf of Kutch
27 Gujarat: Port Led Special Economic Zone (SEZ)
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
Mundra Port SEZ Kandla Port SEZ
Key Industries for development are Light & Heavy Engineering, Reliance Port SEZ Sur SEZ Textiles, Chemicals and Pharmaceuticals, Logistics, Petroleum Sterling SEZ Dahej Port SEZ Refinery, Downstream Processing Industries, Gems and Jewellery, Glass and ceramic, Agro and Food Processing, Flat
Essar Hazira SEZ Steel products, Wide steel plates, EPC & Fabrication, Saw pipes, Polypropylene plant
Source: Industries Commissionerate, Gujarat Maritime28 Board Gujarat State: Large Investment expected in Ports
Brownfield port development
Ship Building DHOLERA SIR
Green field port development
PCPIR
GMB Private Major Ports Ports Port Ro-Ro Facility
29 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)
30 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.
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.
. 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
31 LNG Terminals in Gujarat
LNG Terminals in India Capacity in MMTPA By 2013 Operated By Gujarat has been one of the pioneer states in setting up of the LNG terminals. Gujarat has undertaken various proactive Operating Terminals initiatives to promote LNG terminals in the state. Dahej, Gujarat 10.0 Petronet LNG Hazira, Gujarat 5.0 Shell With a view to attract private sector investment in import of Dabhol, Maharashtra 5.0 GAIL natural gas and it's trading in Gujarat, the state government has Kochi, Kerala introduced LNG terminal policy in the year 2012. 5.0 Petronet LNG Total 25.0
Dahej LNG Terminal Hazira LNG Terminal Mundra and Pipavav LNG Terminals
• India's first LNG receiving, storage • The Hazira Terminal, built at a cost of • A 5 MMTPA LNG Terminal being and regasification terminal was set Rs 3,000 crore in Surat, is regarded as developed by GSPC LNG Ltd at Mundra up at Dahej by PETRONET LNG Ltd. a key foreign direct investment (FDI) in Kachchh. Terminal expected to be • First phase with a capacity of 5 project and represents one of the commissioned by 2016 MMTPA commissioned in April 2005. largest international investments in • Gujarat’s fourth LNG terminal planned • Additional capacity of 5 MMTPA was India in the energy sector. at Pipavav. The terminal to have a added in a phased manner. capacity of around 2.5 – 5 MMTPA.
32 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 LNG Floating Storage and Regasification Unit (FSRU) is • Planned to have a combined capacity of 10 MMTPA a floating system which receives LNG offshore, and the
• Swan Energy Ltd (SEL) is the Original Project Proponent and onboard regasification system sends out the gas had submitted a proposal for development of the project to through flexible risers and pipeline to shore the Government of Gujarat A FSRU provides the advantages of lower cost, location • The Energy and Petrochemicals Department, Government of Gujarat has granted In-Principle approval to the project flexibility, shorter decommissioning time and a proposed by SEL in May, 2013 potential reduction in Carbon Dioxide emissions
33 Gujarat Ports : Opportunities for Investors
To increase coastal shipping LNG Terminals, SPMs for Ro-Pax Ferry Service and for faster eco-friendly specialized cargo movement handling
Dedicated Facilities for Marine Shipbuilding Specialized Cargo park & Shipyards Handling
Integrated industrial yard Developing the nation’s for ship building purpose human potential
Maritime Education Greenfield Ports
Various Greenfield ports in pipeline for Mundra and Pipavav Port Cities and Port- rapid capacity port cities Based SEZ expansion
34 FOR ADDITIONAL INFORMATION CONNECT US @
Gujarat Maritime Board http://www.gmbports.org
Industries Department, Govt. of Gujarat http://www.gujaratindustry.gov.in iNDEXTb -Industrial Extension Bureau http://www.indextb.com
Gujarat Industrial Development Corporation http://www.gidc.gov.in
Gujarat Infrastructure Development Board http://www.gidb.org
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