Ports & Ship Building Industry of Gujarat
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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 10 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.