Sea-Ports

Indian Ports - Overview• 13 Major Ports• 140 intermediate & minor ports• Major Ports – under the aegis of Govt. of India• Minor Ports – development, Operations & controlled by

State Governments• Major Ports – 75% of the cargo• Minor Ports, include captive ports

• Private Sector Participation : Major Ports – enhance efficiency of existing assets; Minor Ports – develop new facilities

Major Ports - Cargo

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Kolkata

Haldia

Paradip

Vishaka

patnam

Ennore

Chenna

iTuti

corin

Cochin

New Mang

alore

Mormug

aoMum

bai

JNPT

Kandla

(in million tons)

Cargo handled by the major ports – about 390 million tons

Mumbai Port Trust

29995Overall6599Gen.Cargo2816Containers

519Dry Bulk20061Liquid Bulk

3.02Overall4.35Gen. Cargo1.95Containers7.51Dry Bulk1.87Liquid Bulk

Average Turn-around time (days)Cargo Handled (‘000 tons)

31.0637.7141.43Aggregate GRT of ships (In million tons)

326748585859Number of Ships entered26.4326.8029.99Traffic (In million tons)

2001-022002-032003-04

Mumbai Port Trust

-31.9-11.7-29.6Net Surplus (Million Euros)

969491.79Operating Ratio (Percentage)

76.578.476.8Operating Expenditure (Million Euros)

79.783.483.7Operating Income (Million Euros)

557.3632.7621.6

Replacement and Development Funds (Million Euros)

Private Sector Participation allowed, including 100% FDI

Tax holiday – Infrastructure Status

Corporatisation of Major Ports

Tariff Authority for Major Port (TAMP) established

Private Sector participation - well established mechanism

Policy Initiatives

Areas of Private Sector Participation

• Leasing out existing assets of the port

• Construction/creation of additional assets, such as:(a) Construction and operation of container terminals

(b) Construction and operation of bulk break bulk, multipurpose and specialized cargo berths

(c) Warehousing, Container Freight Stations, storage facilities and tank farms

(d) Cranage/handling equipment

(e) Setting up of captive power plants

(f) Dry docking and ship repair facilities

• Pilotage

• Captive facilities for port based industries

Private Sector Participation – Major Ports

• Berths leased out for 10 years to SAH and TISCO at Haldia - import of coking coal and export of iron & steel material

• A consortium led by P&O Australia - a 170 million Euros Container terminal on BOT basis at Jawaharlal Nehru Port

• Maersk – Concor consortium – Third Container Terminal on BOT basis at JNPT

• Captive Coal Jetty at Mumbai Port by Tata Electric

• Mormugao Port - two berths by M/s ABG on BOOT basis for handling Coal.

• Mormugao Port - One berth and waterfront leased out Western India Group for a floating Dry Dock and ship repairing complex

Private Sector Participation – Major Ports

• Construction and management of two coal berths at New Mangalore Port (BOT) - 100 Million Euros

• Kandla - a captive jetty for fertilizer raw materials

• Two oil jetties by IOC & HPCL at Kandla

• Captive facilities for handing coal & liquid bulk, at Ennore

• Cochin Port, LNG Terminal - 125 Million Euros by UNOCOL, USA

• Provision of equipment, operation and maintenance of container terminal at Tuticorin Port by Singapore Port Authority on BOT basis

Private Sector Projects –Under Consideration

803.00Container TerminalChennai

201.50Coal JettyTuticorin

6060

5.005.00

Captive Coal JettyBOT Coal berth

New Mangalore

605.00Multi Purpose berthMormugao

503.00Second Liquid Chemical berth Mumbai

Project Cost(Million Euros)

Capacity (Million Tons)ProjectPort

Private Sector Projects –Under Consideration

90

90

1.90

4.00

POL Jetty by BPCL

Container Handling Facilities

Kandla

45019.00Integrated 5 berth chemical terminalJNPT

1205.00Container TranshipmentTerminal

Cochin

202.00Two multi-purpose berthsVisakhapatnam

Project Cost(Million Euros)

Capacity (Million Tons)ProjectPort

Sea-Ports : Niche Opportunities

Tug Ownership in India in 2004

Major Ports100

Minor Ports43 Captive &

Others90

Harbour Towage – An interesting Opportunity

Total = 233 Tugs

Major Ports – Tug Ownership

Major Ports – Policy decision to not acquire any further Towage Tugs

Port 84

OSL4

GE12

Minor Ports – Tug Ownership

OSL TM – Under Technical Management by OSL

Port 26

OSL8

OSL - TM9

Dredging Operations - Types

Capital Dredging - increasing depths

Maintenance Dredging - Maintaining depths

Inland Dredging - Dredging in rivers, canals, lakes etc.

Associated Activity - Land reclamation & beach nourishment

During the last eight years, the annual dredging, undertaken in India, is estimated at approx. 125 million Euros

Indian Market - Key DriversGreater thrust and emphasis has been laid on deepening of draft at various ports – atleast 14m draft – larger vessels; larger parcel loads

Dredging sector has been opened for participation by private & foreign parties

150Handymax130Panamax100Cape VesselsCost per ton (Index)Type of Vessel

Dredging – Market Size

Capital Dredging

20 Kandla80 Kochi50 Mangalore50 Mumbai Port

25 Paradip15 Mormugoa125 JNPT

150 Mandva Port

150 Dhamra Port450 Sethusamudaram

Total Capital Dredging opportunity, over the next 3-5 years : 1 bn Euros

(in million Euros)

Indian Market – Key Players

Foreign companies corner the lion’s share of capital dredging in India –Technical superiority (35-40,000 cu m / day; > 5 Mn cu m contracts)

InternationalJapanM/s Penta Ocean

InternationalU.S.AM/s Great Lakes Dredge & Dock Company

InternationalBelgiumM/s Jan De Nul

InternationalBelgiumM/s Dredging International

InternationalNetherlandsM/s Van Oord Acz

InternationalNetherlandsM/s Royal Boskalis

InternationalNetherlandsM/s Ballast Ham Dredging

Area of OperationCountryName of the Company

Dredging – Market SizeMaintenance Dredging

15Hazira & Dahej3 (each)Pipavav, Mundra, Sikka1 (each)Chennai, Ennore, Kakinada3 (each)Mormugao & Vishakatnam

5JNPT7Kochi Port7Kandla

7New Mangalore

10Paradip Port75Hoogly River

Total Annual Maintenance Dredging opportunity:

150 Mn Euros

(in million Euros)

Dhamra Port – Development• Concession for the creation of a new Port, awarded to

Indian Seaports on a MoU basis

• India Seaports – an SPV created by L&T, Stevedoring Services (of USA) and Precious Shipping (of Thailand)

• Port – focussed on Iron Ore, Steel, Coal, etc.- Bulk Cargo

• Conceived to be developed in phases

• Interesting concept on Rail connectivity

Dhamra Port - Engineering

• International Engineering company – Port Layout Design– Model studies– Design of channel– Design of breakwater

• Indian engineering company– Berth design– Design of backup facilities– Design of railway & road linkages, etc.– Initial surveys

• Typical engineering costs– Detailed Project Report : 200,000 – 250,000 Euros– Port Layout Design (International): 800,000 – 1 mn

Euros– Other Design (Indian) & engineering : 450,000 –

500,000 Euros

Total estimated Construction Cost : 215 mn EurosTotal Project cost : 250 mn Euros

Dhamra Port - Engineering

Construction Contracts

• Typical Port Construction Contracts– Breakwater : 55 mn Euros– Dredging : 55 mn Euros– Berth : 20 mn Euros– Back up Terminals : 20 mn Euros

• Some Indian Port Contractors : L&T, Navyug, Afcons, HCC, Gammon, etc.

• Indian Port Contracts : typically 25-30 buyers of bid documents 5 pre-qualify; others are looking for pre-qualification