Gujarat Seaports Updates & Developments

[GJ10]

From the same Adani presentation, some updates on the Hazira Port which should soon start operations.

[GJ10]

Some news that was missed in July:

MSC to partner Adani in new Mundra container terminal

Mediterranean Shipping Company (MSC) and Adani Ports and Special Economic Zone Ltd (APSEZ) will form a joint partnership to construct a new container facility in the Port of Mundra, Gujarat.

According to the Wall Street Journal, the world’s second largest ocean carrier and Adani International Container Terminal Ltd, a wholly-owned subsidiary of APSEZ formed as part of the project, will co-operate in the development and operation of the new terminal.

MSC and APSEZ have “signed an agreement to develop and operate the new terminal jointly,” a port industry executive told the Wall Street Journal.

The deal, which has not yet been publicly announced, will be MSC’s first investment in India.

Earlier this week, APSEZ said in its annual report that the company had “entered into (an) arrangement for a proposed joint venture with a strategic investor for the development and operation of container terminal (CT-3) at South Zone in Mundra.”

The report added that APSEZ and the investor, without mentioning MSC, will both hold a 50 percent stake in the Adani International Container Terminal.

As part of the agreement MSC will be given berthing priority at the new facility.

The first phase of the project, scheduled for completion in December this year, will see the terminal boast an initial capacity of 1.5 million TEU. The capacity of the terminal, Mundra’s third, will be enhanced by up to 5 million TEU in line with demand at the Indian port.

According to the Adani presentation, it seems like the construction which started in 2010 actually completed ahead of schedule, with the first ship received soon after this announcement in August.

With this new 1.5mn teu container terminal, Mundra finally has the capicity to really compete with JNPT.

[GJ10]

Some of this hi-tech stuff sounds pretty awesome, hopefully environmental clearance is awarded quickly and we get to see this in action as soon as possible.

Greenfield Nargol port heralds international expansion of Israeli port technology

It may be a relatively lesser known project, but if all plans flow as well as they currently are, Nargol port in India near Mumbai, will soon become one of the world’s largest greenfield high-tech automated ports. In an initial construction phase, two container quays and two general cargo quays will be built for import export traffic to feed demand in the massive, growing populous of India,- a country sized more like a continent.

Nargol port will be located north of Mumbai close to the planned new rail corridor between New Delhi and Mumbai.

Behind the greenfield port plan is an intriguing and novel joint venture partnership between India’s transport logistics company, Cargo Motors, a subsidiary of the Cargo Group, and Amarillis, the new high-tech international arm of Israel Ports Company (IPC). Both companies quietly established the joint venture which officially won a $700m tender to build and operate the new port of Nargol in March.

Since then, Guarajat regional government has stamped its seal approval on the project. Although the Nargol port is subject to environmental impact clearance from the government of India, its developers say the project remains on course for opening in 2015.

While Cargo Motors (74% owner of the joint-venture) is currently securing project finance for the green-field project – finance deals which are now scheduled to close in the 1st quarter of 2013 for - Amarillis will provide key technological know-how and engineering solutions for the new port.

“Cargo Motors is interested in Israeli knowhow and collaboration with additional Israeli companies, primarily in the areas of renewable energy, water desalination and logistics, and I imagine that additional Israeli companies will be integrated into the Nargol Port effort." Jayant Nanda, the head of Cargo Motors and its owner, said during a recent visit to Israel.

For Amarillis, the Nargol port project heralds the first opening port construction deal on the international market since the country’s creation in February 2011. Under Israeli law, Israel Ports Company, the state-run ports operator is prohibited from operating outside of Israel. Speaking to Port Finance International, Amarillis CEO, Richard Ben Hamin explained Israel created IPC subsidiary, Amarillis, to enable the global expansion of its bespoke port technology equipment and solutions and to generate revenue for continued investment in new technology. “We are very confident about the progress of the Nargol project,” Mr Ben Hamin said.

While the extent of automation planned for Nargol port remains a closely guarded secret, all of Amarillis products currently on the market will be deployed in the new facility. “All our technology solutions will be used at the new port,” he said.

Among recent automated port technology created in Israel, a country renowned for prowess in technological investment and development, is the electronic Maritime Trade Community System, a technology platform that facilitates trade processes, reduces administrative costs, data errors and time to release cargo by linking all of the community partners though a single electronic window application.

According to Mr Ben Hamin, Israel is the only country in the world in which 100% of seaborne trade is moved using the electronic single window system.

A fully automated smart and safe gate system in use at the port of Ashdod, has proven to increase security levels as well as efficiency and transparency with the identity and destination of the container and driver of truck all fully computerised says Mr Ben Hamin.

Interestingly he says the system also avoids any unforeseen costs at port when clients go to get pick up their containers. It also monitors the location of containers in terminals, allowing owner of the goods to know where and when any damage may have occurred and it reduces congestion at ports.

“Using our technology systems means you can truck deliver or pick up a container and leave a port within 20 minutes,” Mr Ben Hamin says. Ships to shore security solutions include a mobile security suitcase filled with a passport scanner to detect the veracity of seafarer identity and a printer to print off identity cards.

[GJ10]

Gulf Petrochem commences construction of Pipavav Oil Terminal

Gulf Petrochem Group, a leading player in the global oil industry, has announced that it has started construction on the Pipavav Oil Terminal, a state-of-the-art Liquid Cargo Storage Terminal for the handling and storage of liquid cargoes in bulk.

Strategically located in Pipavav in the Indian state of Gujarat, Gulf Petrochem’s new oil terminal adds momentum to the company’s long-term expansion strategy because of its proximity to key rail and road networks, which offer direct access to critical markets in the hinterland, the northwest and central India.

The construction of Gulf Petrochem’s Pipavav Oil Terminal also underlines the company’s growing presence in India, which is one of the company’s most lucrative international markets. The new terminal will cover an area in excess of 90,500 sqm.

“Gulf Petrochem’s Pipavav Oil Terminal is strategically located in southern Gujarat, giving us a logistical advantage and strongly positioning the company to take advantage of India’s abundant northwest markets. This project will accelerate our expansion drive in key Asian markets, while strengthening Gulf Petrochem’s position as a leading player in the global oil space. We will continue to invest in major projects that will enhance our ability to provide reliable, tailor-made solutions at competitive prices, which will ultimately benefit our clients,” said Sanjeev Sisaudia, Group Chief Executive, Gulf Petrochem.

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GSPC invites bids to select EPC contractor for LNG Terminal

Gujarat State Petroleum Corporation (GSPC) today invited global bids to select a Engineering Procurement and Construction (EPC) contractor for its 5 million tonne per annum (MMTPA) LNG regasification terminal proposed at Mundra in Gujarat. The proposed terminal to be set up by GSPC LNG Limited (GLL), a joint venture of GSPC and Adani group, will be set up with an estimated investment of Rs 4,000 crore.

"The terminal capacity would be expandable upto 10 MMTPA," official sources said. "GSPC has 50 per cent stake holding in the JV, while Adani group holds 25 per cent, remaining 25 per cent will come from a strategic investor," a GSPC official told PTI. GSPC has been scouting for a strategic investor for its LNG project, after Essar group — the third partner with a 25 per cent stake in the venture — exited from the proposed LNG (liquefied natural gas) terminal. In September last year, GLL had invited global bids to select a EPC contractor for the LNG storage tanks, to be set up at its proposed LNG regasification terminal at Mundra. The LNG terminal is designed to have two LNG storage tanks. It will have LNG receiving, re-gasification and gas evacuation facilities.

The company has awarded the front-end engineering and design (FEED) contract to Tractebel of Belgium, the company portal said. The LNG terminal proposed to come up at Mundra will be the third one in Gujarat, after Petronet LNG's (10 MMTPA capacity) in Dahej and Shell's Hazira LNG terminal (3.6 MMTPA). The terminal is expected to go on stream by first quarter of 2016, sources in GSPC said. Earlier, it was slated to be commissioned by 2014. The state is also contemplating another LNG terminal at Pipavav of 2.5 to 5—MMTPA capacity, official sources said.

[Meeeet]

Chhara Port in coastal Junagadh may get LNG terminal..!

Mumbai based infrastructure major Shapoorji Pallonji and state-owned Hindustan Petroleum Corp Ltd (HPCL) plan to set up a Rs. 5,000 crore liquefied natural gas import and regasification terminal of 5 million tonnes per annum capacity at Chhara in Gujarat’s Junagadh district for the import of liquified natural gas (LNG) through a 50:50 joint venture. As per a news report SP Ports is already developing a greenfield, all weather, direct berthing port in Junagadh district and detailed feasibility study is on to check technical and commercial viability of LNG terminal. The port is connected to a gas pipeline grid and evacuation of the fuel is not an issue.

http://DeshGujarat.Com/2013/03/07/ch...-lng-terminal/

[Meeeet]

Five new berths for General Cargo at Hazira LNG port.!!

Construction of four new berths at Hazira port has been completed by the end of last year and transportation of goods also has started, Minister Bhupendrasinh Chudasama said today in the Gujarat Assembly in reply to a question.

He said the state government planned construction of five new berths to create facility for transportation of general cargo at Hazira port which primarily handles liquified natural gas(LNG) transportation.

The minister said, “new berths will be capable to handle general cargo such as containers, coal, fertilizer, automobile etc. Out of five new berths, two are built for containers, two others for multipurpose cargo and one more for other cargo transportation. Total capacity of five berths is 20 MT”.

He further said that in year 2007 Hazira port handled 2.01 MMT LNG, in 2008 1.56 MMT, 2009 1.41 MMT, 2010 1.03 MMT and in 2011 2.53 MMT. Thus in five years, total 8.54 MMT LNG was transported at Hazira LNG terminal.

http://DeshGujarat.Com/2013/03/06/fi...zira-lng-port/

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Petronet bids for 25% stake in GSPCs Mundra LNG Terminal

Petronet LNG Ltd, India's biggest liquid gas importer, today reported almost flat net profit at Rs 245.14 crore in the March quarter and said it is interested in buying a 25 per cent stake in a planned LNG terminal in Gujarat.

Net profit in January-March quarter at Rs 225.14 crore compared with Rs 245.12 crore in the same period last fiscal. The profits were down because of lower volumes of LNG imported and regassified at its Dahej terminal in Gujarat, Petronet Managing Director & CEO A K Balyan told reporters.

Dahej terminal sendout at 122 trillion British thermal units was lower than 135 Trillion BTUs in in the last quarter as state-owned GAIL India Ltd and Gujarat State Petroleum Corp (GSPC) imported lesser gas because of international prices shooting up to USD 18-19 per million British thermal units, Petronet Director (Finance) R K Garg said.

For the full 2012-13 fiscal, Petronet reported highest ever net profit of Rs 1,149.28 crore, up 8.67 per cent over Rs 1,057.54 crore in the previous fiscal. The profit was up as the 10 million tons per annum liquefied natural gas or gas super-cooled to turn it into liquid, Dahej terminal was operated at 103 per cent of its capacity, he said.

Balyan said Petronet has put in an expression of interest to buy a 25 per cent stake in a 5 million tons capacity LNG terminal GSPC is planning to build at Mundra in Gujarat. GSPC would hold 50 per cent stake in the project while Adani Group would take 25 per cent.

"As leading LNG player in the country, we find synergies in taking stake in the planned LNG terminal," Balyan said adding the final investment decision would depend on detailed due diliegence.

Petronet, he said, has mechanically completed construction on a 5 million tons LNG import terminal at Kochi in Kerala and plans to commission it "sometime in July." The Kochi terminal, however, will operate at just 12 per cent of its capacity in the current fiscal as pipelines taking gas to customers are not ready, he said adding the company plans to import 4-5 shiploads of LNG at the terminal in 2013-14.

Next fiscal, the terminal is expected to operate at 75 per cent capacity when pipeline connecting Kochi to Mangalore and Bangalore are built, he said adding GAIL is planning to connect this pipeline to Chennai.

Also, Petronet plans to expand the Dahej terminal to 15 million tons for which contracts are expected to be awarded by September, he added.

"The company has completed various pre-project activities and is working towards short-listing of potential contractors for construction of another 5 million tons LNG terminal at Gangavaram in Andhra Pradesh," he added.

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Kandla, Mundra race to reach 100mt mark

By the time the fiscal year that began a little over two weeks ago ends next March, India will likely have at least one port and potentially two that handled 100 million tonnes (mt) or more of cargo.

The union government-controlled Kandla port and billionaire Gautam Adani-owned Mundra port, located 60km apart on the Gulf of Kutch in India’s north-western state of Gujarat, are within striking distance of reaching the coveted 100 mt mark and join an elite club of global ports that loads this amount of cargo.

In the year to March 2013, Kandla loaded 93.6 mt of cargo, up from 82.5 mt a year ago. Mundra port was second, handling 82 mt of cargo, up from 64 mt a year earlier. Mundra is also the country’s biggest private port.

This apart, the difference between Mundra, India’s show-piece private port, and Kandla is striking.

Kandla earned about Rs.738 crore from handling cargo while Mundra earned about Rs.3,000 crore from the smaller amount of goods. Kandla handled 54.3 mt of crude oil and petroleum products, accounting for more than half of its total cargo. At Mundra, coal, containers and liquid cargo each accounted for one-third of the total loaded.

Being a union government port, Kandla operates under a regulated regime where its rates are set by the Tariff Authority for Major Ports (TAMP), the regulator for the dozen ports controlled by the union government. Mundra does not come under the purview of TAMP and has the freedom to set its own rates. This is because it is a port owned by the Gujarat government but given to Adani Ports and Special Economic Zone Ltd (APSEZ) for development and operation on a 30-year contract. Mumbai-listed APSEZ is 77.5% owned by Adani Enterprises Ltd, the flagship company of the Adani Group.

It took Kandla 56 years, having started operations in 1957, to reach the current level of cargo handling whereas Mundra started operations only in 2001.

In the year to March 2013, Mundra overtook Chennai port as India’s second biggest container gateway. Mundra loaded 1.57 million standard containers in fiscal 2013. The number one spot in this cargo category has been held for a long time by union government-controlled Jawaharlal Nehru port near Mumbai that handled 4.26 million standard containers in the same period.

Mundra is one of the two Indian ports that’s listed, the other being Pipavav port, also in Gujarat. Port experts attribute the success of Mundra and Kandla partly to their strategic location.

About 70% of India’s trade in commodities such as crude oil, coal, fertilizers, food grains and container cargo is accounted for by cargo originating and destined for centres in north and north-western India including the Delhi national capital region apart from Gujarat, Rajasthan, Haryana, Punjab and western Uttar Pradesh.

The location is also a gateway to Europe, the US, Africa and West Asia. “Location is one factor,” said Rajeeva Ranjan Sinha, a director on the board of APSEZ, the entity that runs Mundra port. “Many ports have good locations, but the overall logistics cost to the customer is the main driver for the growth of Mundra.” Sinha, a fomer Indian Administrative Service (IAS) official, ran Mumbai port, controlled by the union government, as chairman between 1997 and 2003.

Apart from the flexibility to set its own rates, among Mundra’s biggest strength is its deep draft of 17m , enabling it to handle capesize ships, the biggest vessels that can carry dry bulk commodities such
as coal, iron ore, steel and grains. It also has good rail and road connectivity to evacuate cargo.

Kandla has a depth of just 12.5m but is also well connected by rail and road. Its biggest advantage is having among the lowest cargo-handling rates among ports operating in India. “Our handling rates are low because we are an old port with old investments and less labour,” a Kandla port official said.

But, the turnaround time for ships is as high as 5.05 days, including a waiting period of 2.54 days to get a berth to dock at. “We always have ships waiting for berths because the arrival of vessels is in excess of berthing capacity,” the official added. Kandla is operating at 102.87% of its capacity of 91.22 mt, according to the shipping ministry.

While ships may have to spend five days at Kandla to berth, unload, load cargo and sail off, the extra time and costs arising from this is offset by the low cargo-handling rate at the port, said a Mumbai-based port expert. The turnaround time for ships at Mundra is 18-20 hours and vessels don’t need to wait for a berth. Kandla has 23 berths compared with Mundra’s 24.

[gandhi.rushabh1992]