Mechanization of Okha Port Port, Port Services and Logistics Government of Gujarat Contents Project Concept 3 Market Potential 5 Growth Drivers 9 Gujarat – Competitive Advantage 10 Project Information 12 - Location/ Size - Infrastructure Availability/ Connectivity - Manpower - Potential Collaboration / Key Maritime Clusters - Key Players/Stakeholders - Key Considerations Project Financials 18 Approvals & Incentives 19 Key Department Contacts 20 Page 2 Project Concept Mechanization Imperative to meet Demand Gujarat with its favourable location and availability of a long coastline is a prime destination for executing maritime economic activities. The increasing importance attached to maritime economic activities has further led to the development of many container terminals. Constantly increasing volume of global trade and the inflow of economic activities towards India and the State have reinforced the need for advanced and efficient infrastructure facilities at the State’s ports. The traffic at Gujarat ports have increased at a brisk rate as compared to the national port traffic in the last decade. Okha Port: Brief Overview ► Okha port is an all-weather, non-major intermediate port handling dry-bulk cargo, owned and managed by the Gujarat Maritime Board (GMB). ► It is located in the North-West coast of Saurashtra Peninsula, at the mouth of Gulf of Kutch, Devbhumi Dwarka District, Gujarat. Okha Latitude: 22o 27’ 59” N Longitude: 60o 04’ 10” E ► The port primarily imports: coal, coke, wheat, sulphur, fertilizers, lime stone and exports: calcium bauxite, onion, clinker, raw bauxite, chemicals, soda ash. What is Mechanized Handling? Efficient handling of dry-bulk cargo through the use of mechanized equipment’s such as ship un- loaders/ loaders, conveyor belts, stackers, reclaimers, wagon loaders & tipplers, which effectively eliminates the conventional and less efficient method of unloading of dry bulk cargo at jetty and from jetty to stacking yard or wagon transported via dumpers. Impact of Non Mechanization ► Deployment of conventional equipment like Excavator for handling bulk cargo adversely affects efficiency parameters like: Average Ship Turnaround Time Berth Occupancy and Output Cargo Contamination Environmental Issues Page 3 Project Concept Mechanization at Okha Port ► Mechanization of the existing facility at Okha Port to improve productivity, take environmental friendly measure and safe cargo handling. ► Till now majority of the cargo is being handled through conventional equipment, which adversely affect efficiency parameters such as average ship turnaround time, berth occupancy and output, and resulted in cargo contamination, pollution and fire hazards. ► Mechanized handling at Okha Port will require the installation of the following equipment at various stages of the cargo handling value chain. Ship To Barge Stacking Dust Jetty To Truck Barge To Jetty Area Suppression Floating Mobile Mobile Pipe/ Belt Stacker- Fog Crane Crane Hopper Conveyor Reclaimer Canon ► Apart from this a storage shed, truck and wagon loading systems would also required to be installed at the port. Page 4 Note: Extent of mechanisation will be dependent on land availability on the backside of jetty Market Potential Port Scenario Ports in India ► The port sector of India is one of the important and prominent sector as it has coastline spanning about ~7,516.6 km, forming one of the biggest peninsulas in the world. ► Around 70% of India’s trading by value and 95% by volume is done through maritime transport. ► By FY17, cargo capacity of India is expected to increase to 2,493.1 MMT from 1,806.8 MMT in FY15. ► By FY17, cargo traffic at major ports is expected to rise to 943.1 MMT from 581.3 MMT in FY15. By FY17 cargo traffic at non-major ports in India is expected to grow to 815.2 MMT from 471.2 MMT in FY15. ► India is strategically in prime location well connected and benefited by more than 200 ports across the coastline as most cargo ships sails between East Asia, America, Europe, Australia and Africa. Classification of Ports Major ports: India has about 12 major ports in the country, 6 on the Eastern coast and 6 on Western coast. Major ports are under jurisdiction of the Government of India. Ports in India Non-major ports: India has about 200 non-major ports of which one-third are operational. Non-major ports come under the jurisdiction of the respective states. a) Government’s Maritime Boards (GMB) ports, b) Private ports. Ports in Gujarat ► Gujarat has coastline of 1,615 km, Cargo handled at major and non-major ports th of Gujarat (MMT) about 1/6 of total Indian coastline. 428 440 ► The state has 45 ports of which 44 382 397 are non-major and 1 major port 342 340 313 336 (Kandla). 286 310 288 ► During the FY 07-16, cargo traffic in 259 231 Gujarat increased at CAGR of 206 10.17% to reach 440 MMT in FY 16. 100 94 92 83 87 82 ► The cargo traffic at non-major port 80 of Gujarat is envisaged to reach 864 MMT by FY20. FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 ► Share of GMB ports in the national traffic is 32%. Major ports Non-major ports Total Source: IBEF, GMB, Shipping ministry. *MMT- million metric tonne, FY- financial year, km- kilo meter, Page 5 Market Potential Demand – Supply Traffic Handled at Non-Major Ports in Gujarat Cargo handled at non major port of Gujarat (MMT) CAGR: 11.2 % 336.0 339.7 310.0 288.0 259.0 231.0 206.0 151.0 153.0 131.0 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Source: GMB ► The state has 1 major port and 44 non major ports, totalling to 45 ports. The state has the highest number of operational ports and commercial cargo ports. ► Gujarat is the first state in India to invite Private sector participation through competitive bidding. Gujarat ports account for 40.7% of traffic in the total national port traffic which is more than any other state. The non-major ports of Gujarat constitutes 32% share. ► Gujarat accounts for 74.1% of traffic for non-major ports of India in 2014-15. The traffic handled at non-major port in Gujarat has increased by CAGR 11.2% from FY 07 to FY 16 to reach 339.7 MMT. Traffic handled at Okha Port (MMT) 5.0 CAGR: 32.7 % 4.5 2.5 1.6 1.7 FY12 FY13 FY14 FY15 FY16 Source: GMB ► Bauxite, Coal and Lime stone comprised large amount of the total import cargo volume handled at Okha port. ► Bauxite comprises large amount of total export cargo handled at Okha port. ► The current cargo handling at Okha port is 5.0 million metric ton per annum. ► The estimated traffic at Okha port in FY 20 is about 9 MMT which can be achieved by mechanization of handling the bulk cargo. Page 6 Source: IBEF, GMB, Shipping ministry. * MMT- million metric tonne, FY- financial year, km- kilo meter Market Potential Demand – Supply ► The coal imports in India registered more than two fold Coal Imports by India (MMT) rise in last four years 212.1 ► Coal consumption and imports by India are expected to 166.9 witness robust growth rates owing to greater demand 145.8 from thermal power plants and industrial setups. 102.9 ► Numerous proposed and under construction power plants in Gujarat and other adjoining states rely on imported coal to suffice their fuel requirement. ► GMB operated ports handle ~20% of India’s coal imports. FY12 FY13 FY14 FY15 ► Bauxite production in India registered 21666 thousand Source: Ministry of Coal tonnes in FY 13-14, which registered 30% increase as compared to FY 12-13. ► Bauxite mineral from Gujarat has 32% share in total production of Bauxite in India. Rapid growth in imported coal volumes present an attractive business potential of mechanized handling systems at Indian Ports Okha Port primarily handles Coal and Bauxite Port Traffic (%) – Commodity wise FY 16 ► At Okha port the major cargo commodity handled are Bauxite 58.17%, Limestone 4.9 20.35%, Coal 16.5% of the total cargo Coal 16.5 traffic handled at port. Lime stone ► The demand of Bauxite is going to increase at the CAGR of 7.63% from 20.4 Coke FY15-20E and coal will increase at 58.2 Others CAGR of 14.71% from FY 15-20E. Coal Handled at Okha port (MMT) Bauxite Handled at Okha port (MMT) 1.4 3.9 0.8 0.7 2.7 2.9 FY 15 FY 16 FY 20E FY 15 FY 16 FY 20E Source: IBEF, GMB, Shipping ministry. *MMT- million metric tonne, FY- financial year, km- kilo meter, FY 20E- Estimated Page 7 Market Potential The Okha port imports coke, coal, wheat, sulphur, fertilizers, lime 1 stone and exports calcium bauxite, onion, clinker, raw bauxite, Okha port current chemical and soda ash. The port is not mechanized in terms of trends handling the cargo which has adverse effect on the total cargo handling around the year. To meet the future market scenario for import and export of bulk cargo in Gujarat, the ports should be mechanized for better 2 efficiency in terms of million metric Tonnes of cargo handling in the Need for year, quicker turnaround time of the vessels and with improved mechanization safety and healthy environment. The location of Okha port is strategically at the mouth of Gulf of 3 Kutch in district Devbhumi Dwarka in Gujarat. It is well connected by Proximity to road and rail network. The port is closer to bauxite mining area Mining Area (~135 km) and in proximity of coal based Thermal power plants in Gujarat. The mechanization may include but not limited to mobile crane up gradation with high capacity, mobile hopper, conveyor belt, stacker- 4 reclaimer, electrical MCC & control system, dust suppression Installation of Mechanization system, and fire fighting system.