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Cash Flows for Installation of Captive Port FacilitiesDescription

1 2 3 1 2

1 Initial Investment (Capex) -14000 -28000 -28000

Savings2.1 Savings on account of Outgo to Port 20682 206822.2 Savings on a/c of lesser turnaround 9902 9902

Operating Cost (Opex)3.1 Repairs & Maintenance 2100 21003.2 General Administration 350 3503.3 Establishment 450 4503.4 Insurance 350 3503.5 Revenue Sharing with Port 1034 1034

3 Sub Total 4284 4284

4 Working Capital 813 05 Salvage Value

6 Net Margins (2-3-4) 15585 16398

7 Tax (33%) 4298 4587

8 Net Cash Flows -14000 -28000 -28000 11287 11811

IRR 15%NPV 8,290 275097

Calculation of DepreciationPort Facility - Value 70000 67662Depreciation (as per TAMP) 3.34% 2338 2260Written Down Value 67662 65402

Tax Calculations

Net Margins 15585 16398Depreciation 2338 2260Margins for Tax 13247 14138Tax for Cash Outflows 32% 4298 4587

Tax rate 30 30.0005 1.500

Construction (Years)

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31.5002% 0.6301% 0.315

32.445

Metric Tonne to barrel 7.147512

Savings for 1st 7 years 113973 379997Average Savings 16282 22353

Savings for balance 10 years 266024Average Savings 26602

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3 4 5 6 7 8 9 10 11

20682 20682 20682 20682 20682 24685 24685 24685 246859902 9902 9902 9902 9902 2862 2862 2862 2862

2100 2100 2100 2100 2100 2100 2100 2100 2100350 350 350 350 350 350 350 350 350450 450 450 450 450 450 450 450 450350 350 350 350 350 350 350 350 350

1034 1034 1034 1034 1034 1034 1034 1034 1034

4284 4284 4284 4284 4284 4284 4284 4284 4284

0 0 0 0 0 0 0 0 0

16398 16398 16398 16398 16398 20401 20401 20401 20401

4612 4635 4658 4680 4702 6021 6041 6060 6079

11786 11763 11740 11718 11696 14380 14360 14341 14322

16182

65402 63218 61106 59065 57092 55186 53342 51561 498392184 2111 2041 1973 1907 1843 1782 1722 1665

63218 61106 59065 57092 55186 53342 51561 49839 48174

16398 16398 16398 16398 16398 20401 20401 20401 204012184 2111 2041 1973 1907 1843 1782 1722 1665

14213 14286 14357 14425 14491 18558 18619 18679 187364612 4635 4658 4680 4702 6021 6041 6060 6079

Operation (Years)

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MT Barrels Rs/barrel Avg Rs/bbl Avg USD/bbl

15000000 107212682 15.19 7 106.3051

20000000 142950242 18.61 10 186.095617 292.4007 17.20004 0.312728

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12 13 14 15 16 17 18 19 20

24685 24685 24685 24685 24685 24685 24685 24685 246852862 2862 2862 2862 2862 2862 2862 2862 2862

2100 2100 2100 2100 2100 2100 2100 2100 2100350 350 350 350 350 350 350 350 350450 450 450 450 450 450 450 450 450350 350 350 350 350 350 350 350 350

1034 1034 1034 1034 1034 1034 1034 1034 1034

4284 4284 4284 4284 4284 4284 4284 4284 4284

0 0 0 0 0 0 0 0 -81310645

20401 20401 20401 20401 20401 20401 20401 20401 31859

6097 6114 6131 6148 6163 6179 6193 6208 9939

14304 14286 14270 14253 14238 14222 14208 14193 21920

48174 46565 45010 43506 42053 40649 39291 37979 367101609 1555 1503 1453 1405 1358 1312 1268 1226

46565 45010 43506 42053 40649 39291 37979 36710 35484

20401 20401 20401 20401 20401 20401 20401 20401 318591609 1555 1503 1453 1405 1358 1312 1268 1226

18792 18846 18898 18948 18996 19043 19089 19132 306336097 6114 6131 6148 6163 6179 6193 6208 9939

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Capital Cost (Rs/lacs) 70000

1st year 20% 14000

2nd year 40% 280003rd year 40% 28000Total 70000

Operating CostRepairs & Maintenance (% on Capex) 3.00% 2100General Administration (% on Capex) 0.50% 350Establishment (Rs. 15 lacs pa) 30 450Insurance (% on Capex) 0.50% 350Revenue Sharing with Port (% of Revenue) 5% 1034

Working Capital (25% of Opex) 25% 813

Back up for R & MEnnore Port Assets 6,816,458,534Ennore Port - Operating Expenses 218,285,778% of Operating Expenses on Assets 3.20

Say 3%

Phasing of Expenditure

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Charges incurred during receipt of Crude at receiving PortDescription UOM RateMooring/Berth Charges USD/GRT/hour 0.00060

Pilotage USD/GRT 0.26000Pilot Attendance USD/Hour 45.17000Tug Hire Charges USD/Hour 1500.00000Port Dues USD/GRT 0.24200Wharfage Rs/MT 12.00000

VLCC Hours 36Normal ships Hours 24

Exchange Rate USD to Rs 55Investment Rs/lacs 30000Period of completion Years 3Operation period Years 20

Crude MT 15000000Products (Export) MT 7500000Total MT 22500000

Ship AllocationVLCC (75%) for crude MT 11250000Normal Ships (Balance) MT 11250000Total 22500000

MT to GRT (Factor) 0.592592593GRT for VLCC MT 6666666.667GRT for others MT 6666667Total 13333333

VLCC (no. of visits per annum) 45(11250000/250000)Average hours per visit 36Total Hours per annum 1620

Normal Ships (no. of visits per annum) 152Crude (140000 MT) (3750000/140000) 27Products (40000 MT) (7500000/60000) 125(5625000/65000)

Assumptions and Inputs for Calculation of Savings in Port Charges

Proposed Time in Berth (Average per visit)

Assumptions

Berthing Hours (Annual)

Projected Cargo T'put (Annual)

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Average Hours per visit 24Total Hours per annum 3643

Charges incurred during receipt of Crude at receiving PortDescription UOM RateMooring/Berth Charges USD/GRT/hour 0.00060Pilotage USD/GRT 0.26000Pilot Attendance USD/Hour 45.17000Tug Hire Charges USD/Hour 1500.00000Port Dues USD/GRT 0.24200Wharfage Rs/MT 12.00000

VLCC Hours 36Normal ships Hours 24

Exchange Rate USD to Rs 55Investment Rs/lacs 30000Period of completion Years 3Operation period Years 20

Crude MT 5000000Products (Export) MT 2500000Total MT 7500000

Ship AllocationVLCC (75%) for crude MT 3750000Normal Ships (Balance) MT 3750000Total 7500000

MT to GRT (Factor) 0.592592593GRT for VLCC MT 2222222

GRT for others MT 2222222Total 4444444

VLCC (no. of visits per annum) 15(3750000/250000)Average hours per visit 36Total Hours per annum 540

Assumptions

Projected Cargo T'put (Annual)

Berthing Hours (Annual)

Assumptions and Inputs for Calculation of Savings in Port Charge

Proposed Time in Berth (Average per visit)

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Normal Ships (no. of visits per annum) 51Crude (140000 MT) (1250000/140000) 9Products (40000 MT) (2500000/60000) 42(5625000/65000)Average Hours per visit 24Total Hours per annum 1214

Petroleum has a specific gravity of 0.88 which means 1 liter weighs 0.88 kilograms.

From the volume page we know that:

1 barrel [US, petroleum] = 158.9872972 liter

So 1 barrel weighs:

158.9872972 * 0.88 = 139.908821536 kilograms

1 metric ton is 1000 kilograms:

139.908821536 / 1000 = 7.1475121

So there are a little over 7 barrels of petroleum in a metric ton.

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Description UOM Rate % SavingsMooring/Berth Charges USD/GRT/hour 0.00060 100%

Pilotage USD/GRT 0.26000 100%Pilot Attendance USD/Hour 45.17000 10%Tug Hire Charges USD/Hour 1500.00000 10%Port Dues USD/GRT 0.24200 100%Wharfage Rs/MT 12.00000 100%

VLCC Others TotalGRT 6666666.667 6666667 13333333Mooring/Berthing Charges 3564.00 8014.29 11578Pilotage 953.33 953.33 1907Pilot Attendance 4.02 9.05 13Tug Hire Charges 133.65 300.54 434Port Dues 887.33 887.33 1775Wharfage 1350.00 1350.00 2700Sub Total 6892.34 11514.54 18407Service Tax @ 12.36% 851.89 1423.20 2275Total 7744.23 12937.74 20682

Note: 5% revenues to be shared with the State Maritime Board

Turnaround Time Savings 4630.21 5271.63 9901.84(14 hours for VLCC)(6 hours for Normal ships)

37500007500000

Anticipated Savings

on account of Captive Port facilities (West Coast at 15 mmtpa)

Savings in Value - INR Lacs (Yearly)

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Description UOM Rate % SavingsMooring/Berth Charges USD/GRT/hour 0.00060 100%Pilotage USD/GRT 0.26000 100%Pilot Attendance USD/Hour 45.17000 10%Tug Hire Charges USD/Hour 1500.00000 10%Port Dues USD/GRT 0.24200 100%Wharfage Rs/MT 12.00000 100%

VLCC Others TotalGRT 2222222 2222222 4444444Mooring/Berthing Charges 396.00 890.48 1286Pilotage 317.78 317.78 636Pilot Attendance 1.34 3.02 4Tug Hire Charges 44.55 100.18 145Port Dues 295.78 295.78 592Wharfage 450.00 450.00 900Sub Total 1505.45 2057.23 3563Service Tax @ 12.36% 186.07 254.27 440

Total 1691.52 2311.50 4003

Note: 5% revenues to be shared with the State Maritime Board

Turnaround Time Savings 1388.1 1474.13 2862.23(14 hours for VLCC)(6 hours for Normal ships)

on account of Captive Port facilities (West Coast at 5 mmtpa)

Anticipated Savings

Savings in Value - INR Lacs (Yearly)

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12500002500000