Development of Business Plan For New Mangalore Port Trust Panambur, Mangalore Business Plan (Final Report) Prepared By RMG/TCS March 2007 BUSINESS PLAN NMPT TABLE OF CONTENTS 0. EXECUTIVE SUMMARY ...................................................................................................................i Vision Statement:...............................................................................................................................i Mission Statement: ............................................................................................................................i SWOT ............................................................................................................................................ iii Port capacity ....................................................................................................................................vi Investment Plans ............................................................................................................................ vii Organizational improvements ..........................................................................................................xi Environmental protection .................................................................................................................xi Port’s connectivity........................................................................................................................... xii Financial Plan ................................................................................................................................. xii Proposed investments ................................................................................................................... xiii Action Plan....................................................................................................................................xviii 1. INTRODUCTION ..............................................................................................................................1 1.1 Background..........................................................................................................................1 1.2 Aim of the present report .....................................................................................................2 1.3 Team of consultants.............................................................................................................3 1.4 Set-up of the report ..............................................................................................................4 2. SWOT, VISION, MISSION AND STRATEGY ..................................................................................5 2.1 NMPT SWOT analysis .........................................................................................................5 2.1.1 Strength................................................................................................................................5 2.1.2 Weaknesses.........................................................................................................................5 2.1.3 Opportunities........................................................................................................................6 2.1.4 Threats .................................................................................................................................6 2.2 Vision and Mission of NMPT................................................................................................7 2.3 Port development strategy...................................................................................................8 2.4 Commercial Strategy ...........................................................................................................9 2.4.1 Captive cargoes ...................................................................................................................9 2.4.2 Competitive cargoes ..........................................................................................................10 2.4.3 Marketing strategy .............................................................................................................10 2.5 Pricing strategy ..................................................................................................................11 NMPT Business Plan, March 2007 BUSINESS PLAN NMPT 2.5.1 Tariff structure....................................................................................................................11 2.5.2 Tariff Setting.......................................................................................................................12 2.6 Land use strategy ..............................................................................................................14 2.7 Role strategy......................................................................................................................14 2.8 Investment strategy............................................................................................................15 2.9 Public Private Partnership..................................................................................................15 2.9.1 Policy of the Government of India......................................................................................15 2.9.2 PPP Strategy for NMPT .....................................................................................................16 2.9.3 Present leased land ...........................................................................................................17 2.9.4 Privatisation guidelines ......................................................................................................17 3. MARKET ORIENTATION ...............................................................................................................20 3.1 Relevant Government policies and sector development ...................................................20 3.1.1 Agriculture..........................................................................................................................20 3.1.2 Manufacturing ....................................................................................................................20 3.1.3 Heavy industry policy .........................................................................................................21 3.1.4 Iron and Steel policies........................................................................................................22 3.1.5 Oil and Gas ........................................................................................................................24 3.1.6 Fertiliser .............................................................................................................................26 3.2 Industrial developments in Karnataka state.......................................................................29 3.2.1 New Mangalore Port’s Market............................................................................................29 3.2.2 Karnataka State economy..................................................................................................31 3.2.3 Industries significant to New Mangalore Port ....................................................................32 3.2.4 Competing Ports ................................................................................................................37 4. TRAFFIC FORECASTS..................................................................................................................40 4.1 The Position of New Mangalore.........................................................................................40 4.2 Origin-Destination (OD) Analysis.......................................................................................41 4.2.1 Iron ore...............................................................................................................................43 4.2.2 POL Products.....................................................................................................................46 4.2.3 Iron & Steel ........................................................................................................................46 4.2.4 Liquid Bulk - Crude Oil, POL products, LPG......................................................................46 4.3 Projected Cargo Throughput 2006-2013 ...........................................................................49 NMPT Business Plan, March 2007 BUSINESS PLAN NMPT 4.3.1 Approach & Methodology...................................................................................................49 4.3.2 Liquid products: crude, POL, chemicals, vegetable oils ....................................................49 4.3.3 Dry bulk cargoes ................................................................................................................51 4.3.4 General cargo/break bulk cargo.........................................................................................57 4.3.5 Containers..........................................................................................................................58 4.4 Summary of Cargo Traffic Forecast...................................................................................63 4.5 High and Low forecast scenarios.......................................................................................63 4.6 Long Term Forecast (20 years) .........................................................................................67