JAWAHARLAL NEHRU PORT TRUST Detailed Project Report for Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) DETAILED PROJECT REPORT ‐ EXECUTIVE SUMMARY (FINAL) March 2016 HOWE INDIA HOUSE, 81 NEHRU PLACE, NEW DELHI – 110 019, INDIA Phone : +91(011) 49508000 ; Fax : +91(011) 26467557 ; E-Mail : [email protected] Web : www.howeindia.com Table of Contents 1.0 EXECUTIVE SUMMARY 5 1.1 Introduction 5 1.2 Data Collection 5 1.3 Feasibility of Deepening Approach Channel for 18 m Draft Vessels and Setting up a Deep Water Terminal 6 1.3.1 Deepening of the Channel to Cater to 18 m Draft Vessels 6 1.3.2 Setting up a Deep Water Terminal in Mumbai Offshore Region 6 1.4 Project Environment 7 1.4.1 Temperature 7 1.4.2 Wind Speed and Direction 7 1.4.3 Rainfall 7 1.4.4 Wave Height 7 1.4.5 Currents 7 1.4.6 Tides 7 1.4.7 Bathymetry 8 1.4.8 Sub‐soil profile 8 1.4.9 Siltation in the Existing Channel 8 1.5 Traffic Forecast 9 1.5.1 Container Traffic Forecast 9 1.5.2 Liquid Cargo Forecast 11 1.6 Design Vessel Size 11 1.7 Vessel Traffic 12 1.8 Channel Design and Alternatives 13 1.8.1 Channel Depth 13 1.8.2 Channel Width 13 1.8.3 Anchorage 14 1.8.4 Emergency Anchorage near Karanja 14 1.8.5 JNP Anchorage near Uran Patch 15 1.8.6 Shifting of MbP Anchorage 15 1.8.7 Preferred Alternative 15 1.9 Dredging Volume 16 1.9.1 Capital Dredging 16 Capital Dredging for Alternative I 16 Capital Dredging for Alternative II 17 1.9.2 Maintenance Dredging 17 Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) 2 Final Detailed Project Report – Executive Summary March 2016 1.9.3 Dredged Material Management 18 1.9.4 Disposal of Dredged Material 18 1.9.5 Environmental Aspects 18 1.10 VTMS and Navigational Aids 19 1.10.1 Navigational Aids 19 1.10.2 VTMS 19 1.11 Fenders and Bollards 19 1.11.1 Fenders 19 1.11.2 Bollards 19 1.12 Capital Costs 19 1.13 Project Implementation Schedule 20 1.14 Financial Analysis 20 1.14.1 PPP Model 20 1.14.2 Annuity Model 21 1.14.3 Development by JNPT 21 1.15 Economic Analysis 22 1.16 Conclusion 22 LIST OF TABLES Table 3: Bathymetry Details of JNP Navigational Areas Table 4: Design Vessel Size Table 5: Year‐wise Total Vessel Traffic in Approach Channel Table 6: Alternatives for Channel Depths Table 7: Channel Depth for Various Alternatives Table 8: Width of Approach Channel for Various Design Vessels Table 9: Design of Bends for Alternative I to Alternative IV Table 10: Diameter and Depth of the Emergency Anchorage near Karanja Table 11: Multi‐Criteria Analysis of the Channel Design Alternatives Table 12: Estimated Quantity of Capital Dredging: Alternative – I (12500 TEU Vessel and Tidal Window of 2.2 m) Table 13: Estimated Quantity of Capital Dredging: Alternative ‐ II (16000 TEU Vessel and Tidal Window of 2.2 m) Table 14: Capital Cost Estimates for Alternatives I & II Table 14: Summary of Financial Results for PPP Model Table 16: Summary of Financial Results for Annuity Model Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) 3 Final Detailed Project Report – Executive Summary March 2016 Table 17: Summary of Financial Results for Development by JNPT Table 18: Results of Sensitivity Analysis Table 19: Total Economic Benefits LIST OF FIGURES Figure 1: Container Traffic Forecast (million TEU) Figure 2: Constrained and Unconstrained Traffic Forecast Figure 3: Liquid Cargo Traffic Forecast at JNP Existing BPCL Traffic LIST OF DRAWINGS I‐514/JNPT/115 Proposed Dimensions and layout of the approach channel Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) 4 Final Detailed Project Report – Executive Summary March 2016 1.0 Executive Summary 1.1 Introduction Jawaharlal Nehru Port (JNP) is one of the twelve major ports of India and has a cargo handling capacity of about 64 MTPA. JNP is located adjacent to Mumbai Port and shares a common navigation channel with Mumbai Port for a substantial part of its length. Till 2012, the depth of the channel was (‐) 11 m CD and the depth alongside berth at JNP was (‐) 13.50 m CD. With increasing cargo handling requirements, consequent expansion in its capabilities and competition from neighbouring ports, JNP has been called upon to handle new generation container vessels with wider beam and deeper drafts. JNPT conceptualized the capital dredging of channel in two phases to enable the movement of these new generation vessels. In Phase I, the channel depth was increased from (‐) 11 m CD to (‐)13.1 in JNP area and (‐) 14.20 m CD in outer channel to facilitate handling vessels of 14 m draft (about 6000 TEU) with utilization of tidal window. The channel length was increased from 29.5 km to 33.5 km. JNPT is contemplating to undertake the Phase II dredging of the approach channel to facilitate handling vessels with larger drafts. JNPT has entrusted M/s Howe Engineering Project (India) Private Limited (HOWE) to provide consultancy services for preparation of DPR for “Deepening and Widening of Mumbai Harbour and Jawaharlal Nehru Port Channel (Phase II)”. 1.2 Data Collection HOWE collected earlier Detailed Project and Feasibility Reports prepared for channel widening and deepening from JNPT during kickoff meeting. Apart from these various model study reports prepared by CWPRS, bathymetric survey and geotechnical survey reports prepared by various agencies were also collected. HOWE has observed data gaps in the field survey data provided by JNPT during kickoff meeting and suggested carrying out the following surveys: Bathymetric survey at dredge disposal grounds (DS3 and DS4) and in certain sections of outer approach channel (Section A‐B) & emergency anchorage area Sub‐bottom profile survey and borehole investigations in Section B‐C of the approach channel and emergency anchorage area Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) 5 Final Detailed Project Report – Executive Summary March 2016 JNPT have appointed M/s Ocean Science and Surveying (OSAS) for carrying out the above surveys during April 2015. M/s OSAS submitted their survey reports during the third week of June 2015 and the survey results were used in preparation of the Detailed Project Report. 1.3 Feasibility of Deepening Approach Channel for 18 m Draft Vessels and Setting up a Deep Water Terminal JNP desired to quickly explore the feasibility of deepening the approach channel to cater to vessels of 18 m draft and also for setting up a deep water terminal in Mumbai offshore region. Details of the same are presented below. 1.3.1 Deepening of the Channel to Cater to 18 m Draft Vessels Deepening the approach channel to cater to 18 m draft ships is not feasible due to the following aspects: The existing container berths at JNP are designed to cater to ships of 15 m draft only. A review of the biggest container ships in order book or even at planning stage reveals that the draft is of the order of 15 to 16 m. Deepening for 18 m draft ships would result in a cost of Rs. 14650 crores as against Rs. 2,029 crore for 15 m draft ships, but generation of any additional revenue is unlikely. 1.3.2 Setting up a Deep Water Terminal in Mumbai Offshore Region Development of deep water terminal in Mumbai offshore Region is not suitable due to the following: At JNP and nearby coastal areas, deep water is quite far from shore i.e. 10 m contour and 20 m contour are at a distance of 4 to 8 km and 16 to 24 km from the shore, respectively. Creation of offshore facility would require creation of breakwaters, berthing structure and approach trestle, having technical and cost implications. The entire cost of creating an offshore terminal with approach is likely to be much higher than dredging (including rock) for deeper depths at JNP or any other satellite port, which could be planned nearby the JNP. Deepening and Widening of Mumbai Harbour Channel and JN Port Channel (Phase II) 6 Final Detailed Project Report – Executive Summary March 2016 1.4 Project Environment 1.4.1 Temperature The temperatures range between 11oC to above 40oC. April and May are the hottest months and January is generally the coolest month in a year. 1.4.2 Wind Speed and Direction The nearshore wind blows from SW to W for 37% of the time and W to N for 55% of the time. The wind speed is less than 15 m/s (54 km/hr) for 87% of the time and 20 m/s (72 km/hr) for 95% of the time. 1.4.3 Rainfall Annual rainfall is about 1800 mm. 94% of the annual rainfall occurs in the south‐ west monsoon season (June to September). On an average, there are 73 rainy days in a year, out of which about 67 days occur during the southwest monsoon season. 1.4.4 Wave Height The predominant directions of waves in the nearshore zone are from the WSW, W, WNW, NW. The wave height is less than 2 m for 83% of the time and the predominant wave period is 10 seconds. 1.4.5 Currents Prevailing current velocity is of the order of 1.5 knots peaking to 2.5 knots occasionally during the monsoon.