India: Seaports and Shipping

[WillyWick]

India plans transhipment port at Great Nicobar

PORT BLAIR (Reuters) - India has shortlisted 10 firms to study the feasibility for a transhipment port in the Great Nicobar Island that will help cut down time and distance for cargo traffic headed for ports on the mainland, an official said.

Such a port would obviate the need for ships to unload at Sri Lanka's Colombo port for onward shipment and offer an alternative on Indian territory itself, Chief Engineer K. Shekar at Andaman Lakshadweep Harbour Works (ALHW) told Reuters.

It would also contribute to the rebuilding of the Andaman Archipelago hit by the Dec. 2004 tsunami, he said.

"Once it is finalised, the selected firm will conduct a techno-economic feasibility study, which is estimated to take one year," Shekar said. ALHW is the supervising authority for the project.

http://www.ndtvprofit.com/homepage/news.asp?id=271812

[kronik]

L&T pens blueprint for Rs 2,000-cr AP facility

Larsen & Toubro (L&T) is close to finalising Kakinada in Andhra Pradesh as the location for its Rs 2,000-crore shipyard and a fabrication facility to support its existing engineering projects.

The company has submitted investment details to central and state governments, said sources. L&T is likely to announce the location before December and the project will be wrapped up by ’10. The company had earlier zoomed in on three sites, but Kakinada on the east coast is now being preferred, sources in the know said.

As the company is looking for building fabrication facility, it needs over 400 acres of land for the project. L&T plans to build liquefied natural gas and oil carriers, survey ships, offshore and multi-support vessels weighing as much as 25,000 tonnes at this shipyard,” said industry sources.

L&T already owns a shipyard at Hazira near Surat. But it’s not equipped with deep-water facilities for constructing large craft. Here, the company is setting up a facility for building commercial vessels and warships for the Navy as well as the Coast Guard. The first vessel would set sail from this shipyard in ’08.

Meanwhile, the government is planning to build two international shipyards on the west and east coasts. Ennore and Mumbai ports have been selected as the nodal agencies in executing the projects.

[kronik]

Kolkata Port drafts third port plan

The Kolkata Port Trust (KoPT) is now looking for a third port facility near Sagar Island, which would have a deeper draft than Haldia port.

The chairman of KoPT, A K Chandra, told reporters here that the port was examining the feasibility of the facility for some time and that nothing had been firmed up as yet.

He also indicated that if the state government finally decided to back the building of a deep sea port near Sagar, then KoPT might merge its project with that plan.

Chanda claimed KoPT was planning a joint venture with Central Inland Water Transport Corporation (CIWTC) for development of inland water transport (IWT).

"A high level team of CIWTC will come later this week to discuss the issue with KoPT," he said.

Chandra pointed out that river transport channels were being neglected and hardly used.

"Banaras and Patna used to be big riverine ports, but as the Ganges moved southwards, these ports became inactive. But we should have continued using these riverine ports because the draft needed for inland water transport is not very high. In fact, we should have used Brahmaputra river channel too," he said.

According to Chandra, Kolkata and Haldia port could be two terminals for any future inland water transport system.

The KoPT chairman also pointed out that the main problem in inland transport was lack of handling facilities in riverine ports.

"We have to discuss the issue of how to develop good riverine port infrastructure here for inland transport mechanism," he added.

Chanda said KoPT was looking for a formal written offer from the Pawan Ruia group for its proposed ship building project in Jellingham near Haldia.

The Ruia group has already initiated discussion with the state government for the project.

Ruia had earlier identified close to 1,500 acre land in Jellingham now held by the central government company Burn Standard Ltd for the project.

[WillyWick]

India is port of call for global shipping lines

Foreign shipping lines are cashing in on the boom in the Indian container market. All global container carriers are either starting new services or enhancing their services connecting India, China and the Far East.

Going by preliminary estimates, foreign shipping lines are expected to start at least 10 new container services by the end of the year. The Shipping Corporation of India (SCI) is also in the process of tying up with overseas partners.

Sources said Gateway Terminals India, the third container terminal at JN Port, operated by Container Corporation of India and Danish shipping line Maersk, has received over 40 applications from overseas shipping companies for berths.

“With the availability of cheap labour and value-added services, India and China are becoming hubs for semi-manufactured and manufactured goods. This has led to a huge increase in container shipping services,” said SCI Director Sudhir S Rangnekar.

However, Indian container companies are not part of the scramble. “Container shipping services operate on wafer-thin margins. Container ships cost around $60-70 million. You need to have a strong international marketing network, along with an expensive infotech backbone, to operate a box shipping service,” said Rangnekar.

SCI has joined Dubai-based Emirates Shipping Line (ESL) and Taiwan’s TS Line to launch Hyper Galex, a service connecting China, South East Asia, India, and West Asia. Hyper Galex will be served by six vessels of 3,100 twenty-foot equivalent units. ESL will provide four vessels, while SCI and TS Line will provide one each for the service, which starts on November 11.

“Hyper Galex will provide comprehensive container shipping links involving three of the world’s fastest growing economic regions. With this in mind, we have focused on providing a very wide port coverage to our customers,” said Vikas Khan, chairman and CEO of Emirates Shipping Line. The service will call on Kochi, JN Port, and Mundra.

SCI, along with Israeli company ZIM Integrated Shipping Services, had started an India-US East Coast weekly service in May. Japanese carrier Mitsui OSK Lines launched China-Singapore Service Loop 1 on October 19, connecting Chennai Port and JN Port to Shanghai and Singapore.

Mitsui OSK Lines and Singapore-based Sea Consortium have also started a new container service, Singapore Chennai Express (SMX), linking Chennai and ports in the Singapore straits.

October saw the launch of another service, PIX or Pakistan India Express, by Thai company Regional Container Lines, German Hapag-Lloyd, and TSK Line, a unit of Japanese line NYK

http://www.business-standard.com/com...Left=0&chkFlg=

[Ajaypp]

- Good news there! Now, what we need is a set of world-class, deep water port. Mundra has started it off. Hope, with Vizhinjam, Kakinada and others, India will be truely upto speed in terms of handling larger vessels. With the expansion of the Suez and Panama Canals, the ship sizes are bound to keep increasing.

Btw folks, there is a programme on JNPT on Discovery sometime this week. Don't miss it.

[harsh1802]

Source: The Hindu

Roads & Buildings Minister J. Rammohan Rao later told reporters that a draft memorandum of understanding (MoU) had been sent to the AAI on developing Rajahmundry and Vijayawada airports and additional land allotted for them. The meeting also considered proposals to develop small airports at Tadepalligudem, Nellore and Kadapa. Night landing facility would be made available at Tirupati airport soon[/COLOR].[/B]

The Minister said work was in full swing on the Rs. 1,800-crore Gangavaram Port near Visakhapatnam being set up as world class multi-purpose facility to handle ships of up to 2,30,000 DWT capacity

[WillyWick]

Subhash group to build Puducherry port

Subhash Projects and Marketing Ltd, a Bangalore-based leading engineering, construction and project management group, has bagged a Rs.21-billion order to develop Puducherry port in collaboration with Delhi-based Om Metals Infraprojects Ltd.

According to a company statement here Friday, the project envisages converting the present shallow port on the Puducherry coast into a deepwater port to handle large ships carrying general, bulk and liquid cargo.

'We have floated a special purpose vehicle (SPV) -- Pondicherry Port Ltd -- as a 50:50 joint venture with Om Metals to execute the ambitious project in four phases. When completed by 2014, it will have three container berths for general, bulk and liquid cargo and a cruise terminal, providing employment to about 10,000 people,' Subhash group chairman Anil Sethi said.

Located strategically between Chennai and Tuticorin in Tamil Nadu, the Puducherry port will boost trade and travel from the east coast. When the proposed Sethusamudram canal through the Palk Strait becomes operational, the distance between the west coast, Middle East and Europe will not only reduce by 780km, but also bring down passage time by nearly 30 hours

Currently, it takes about 30 hours to load one ship with 2,000 tonnes of cargo using three barges. Loading and unloading of large ships is being carried out by anchoring them a few kilometres offshore and using barges, which ply between boats and quay. On completion, large ships will be berthed at the port itself

http://www.indiaenews.com/business/20061103/27414.htm

[kronik]

SCI to ink contract with Korean shipbuilding firm

National flag carrier Shipping Corporation of India (SCI) is planning to place $502.90 million contract with Korean shipbuilding yards.

Out of this, SCI has already signed contracts with South Korean yard STX Shipbuilding Co for building six new Long Range-I size product tankers for $371 million.

This is the largest shipbuilding contract in terms of value, signed by SCI since its inception. This is also the largest contract ever signed by STX Shipyard.

The last mega acquisition deal was of $258.2 million for acquiring two very large crude carriers (VLCCs) from Daewoo Shipbuilding & Marine Engineering (DSME).

“Shipping Corporation is likely to place orders with Korean shipbuilding yard Hyudai Heavy Industries for two container vessels of about 4,300 twenty foot equivalent units (TEU) capacity each at a price of $65.95 million per vessel,” Umesh Grover, director, SCI, said.

“The contract for container vessels is expected to be signed within two weeks. The vessels will be delivered by the end of 2008. These vessels will be deployed on SCI’s India-UK service,” Grover added.

Grover also said that SCI is planning to conclude acquisitions of more tanker vessels by the next quarter and the corporation is also exploring opportunities at shipyards other than Korea.

The six tankers, ordered at STX, would join SCI’s fleet from first half of 2010. The product tankers would have a design deadweight of about 60,000 tonne at the design draft of 12.50 metre.

The tankers would be built to the latest and most stringent international regulations and would be classed with the LR and IRS Classification Societies.

The SCI’s present fleet stands at 80 vessels aggregating about 2.75 million gross tonne (GT) comprising cellular container vessels, crude oil tankers (including combination carrier), product tankers, bulk carriers, LPG/Ammonia carriers, acid carriers, passenger vessels and offshore supply vessels.

[pding]

i have a question: does SCI build it's own ships? if yes, how many has it built yet? and what about the prospects of private indian players in this area like L&T, which recently stated it was gonna start constructing a ship building plant at Kakinada, AP.

[Naresh]

.

Originally Posted by pding

i have a question: does SCI build it's own ships? if yes, how many has it built yet? and what about the prospects of private indian players in this area like L&T, which recently stated it was gonna start constructing a ship building plant at Kakinada, AP.

No Sir. Just like Air India and nearly all the Air Lines of the World buy Air Crafts built by Aircraft Builders similarly SCI and other Shipping Companies World-Wide (With the exception of Conglomerates having both Shipping and Ship Building companies – Japanese and South Koreans come to mind) buy Ships built by Ship Building Yards.

Cheers

[pding]

so, domestic companies like L&T could get a good pie in the expansion program of SCI. other than L&T are there any Indian companies building or thinking of building ships?

[kronik]

L&T is going to be a great shipbuilder once it settles in. In fact, it is already busy with many top projects for the Indian Navy.

Some of India's biggest shipyards are:

Public Sector:
Cochin Shipyard
Goa Shipyard
Mazagaon Docks
Hindustan Shipyard, Vizag
Garden Reach Shipbuilders & Engineers, Kolkata
Alcock Ashdown Gujarat Limited

Private Sector:
ABG Shipyard, Gujarat
Bharati Shipyards, Ratnagiri & Thane
Chowgule & Sons, Goa
Soon - L&T Shipyard, Surat


Heres a good PDF file on current Indian maritime trends.

Indian Shipbuilding Whether Bound

[kronik]

India to get hi-tech ship building yards

With India becoming a leading maritime power, the government has embarked upon an ambitious plan to set up two state-of-the-art ship building yards in the country at a cost of Rs 5,000 crore each.

These would be greenfield ship building yards with one each in the east and the west coast. The yards would have the capacity to build large container ships and tankers up to a capacity of three lakh tonne, shipping minister T R Baalu said on Friday.

Chennai-based Ennore Port Ltd has been made the nodal agency for appointing consultants and identifying investors for the ship building yards at the east coast. Similarly, Mumbai Port Trust has been appointed as nodal agency for the ship yard in west coast, he said.

India already has four major ship building yards at Mazagon in Mumbai, Kochi in Kerala, Hindustan Shipyard at Visakhapatnam and Hooghly Dock at Kolkata. There are 28 shipyards in the country, seven under Central public sector, two under state government and nine under private sector. The two new shipyards will require 1,000 acres of land each, and the location will be determined on the basis of availability of land.

[kronik]

New Mangalore Port to invest Rs 7,100cr

The New Mangalore Port Trust (NMPT), the seventh largest major port in the country, is embarking on a massive expansion of infrastructure involving an investment of Rs 7,100 crore in two phases over the next seven years.

According to the National Maritime Development Programme (NMDP), the NMPT aims to undertake new infrastructure projects jointly with private participation and the port users. The port, located at Panambur near Mangalore on the west coast, aims to build four new berths, an LNG terminal, container terminal and automation of an existing multi-purpose berth, said P Tamilvanan, chairman, NMPT. The expansion of the port would enhance the cargo handling capacity of the port from the existing 38 million tonne per annum to 52 million tonnes per annum.

The new LNG terminal is being built by Mangalore Refinery and Petrochemicals Ltd (MRPL) at an investment of Rs 2,600 crore, while the new container terminal will be built by NMPT at an estimated cost of Rs 700 crore. The firm plans to build a captive jetty to import coal at an investment of Rs 180 crore.

Apart from these, the NMPT proposes to build four new berths at a combined investment of Rs 200 crore.

At present, there are 14 berths at the port. It has recently floated tender for setting up a mechanised iron ore handling facility on Build-Own-Transfer basis at berth No. 14. NMPT is also developing a modern cruise lounge to attract cruise vessels, bunkering facility, dry dock to repair ocean going vessels.

The port, which is expected to handle 15,000 containers (TEUs) during the current fiscal, plans to increase the capacity to 20,000 containers next year.

NMPT is also participating in the development of port-based special economic zone to attract cargo in coordination with Infrastructure Leasing and Financial Service Ltd (IL&FS), Oil and Natural Gas Commission and Kanara Chamber of Commerce.

[sudheeshnairs]

Will Chinese President bail out this project?

Monday November 20 2006 12:32 IST

T’PURAM: It might appear a paradox. It now seems that the fate of the proposed deepwater container transhipment hub at Vizhinjam could be in the hands of Chinese President Hu Jintao. Hu, slated to arrive in New Delhi on Monday, is expected to discuss Chinese FDI with the Indian Government.

The Rs 4,350-crore Vizhinjam project had met with snags after the Centre denied security clearance to the two Chinese firms that are participating in it.

Addressing a news conference on Sunday, Law and Ports Minister M Vijayakumar expressed hopes that the Indian and Chinese Governments would discuss Chinese participation in Indian projects during Hu’s crucial visit. ‘‘Vizhinjam terminal is no doubt the most important of the projects,’’ Vijayakumar said.

Similar projects awarded to Hong Kong-based Hutchison Port Holdings (HPH) at Chennai and Mumbai ports had also met with the security hurdle.

Meanwhile, the State Government is yet to hear from the Prime Minister’s Office as to the fate of the Vizhinjam project.

After he assured all support to the project to an all-party delegation led by Chief Minister V S Achuthanandan and Opposition leader Oommen Chandy which met him on August 31, Prime Minister Manmohan Singh had repeated his promise during his Kerala visit on November 1. As Vijayakumar told reporters on Sunday, the ‘‘state is still waiting.’’

If the Centre persists with the denial, the state would have no option but to call fresh tenders. With the stalemate situation prevailing, a number of private operators, notably Jupiter Constructions, had evinced keen interest in taking up the project.

When asked about this, Vijayakumar said that a number of players had approached the government, and the state would call fresh tenders if the clearance fails to come through. As per the current schedule, the first phase of the Vizhinjam project, costing Rs 1,850 crore, is slated to be completed in 2009.

The State Cabinet had in December last cleared the consortium consisting of China Harbour Engineering Company (CHEC), Kaidi Electric Power Company - both Chinese firms - and Mumbai-based Zoom Developers Pvt Ltd for the project.

http://www.newindpress.com/NewsItems...puram&Topic=0&

[pding]

no question of bailing anything out if there is credible info from intelligence agencies that there is a genuine threat. IB, RAW, CBI, and the intelligence community feels so, then nobody has the right to question it. it is our internal affairs decision.

[Anniyan]

L&T to set up Rs 2,000-cr shipyard

Larsen & Toubro Ltd, which recently forayed into the shipbuilding sector, will be setting up a Rs 2,000-crore shipyard in India with the capacity to build high-value ships.

The company is looking for a suitable piece of land, measuring 800 acres to 1,200 acres, to set up the shipyard. The company, which has narrowed down the search to the three States - Tamil Nadu, Andhra Pradesh and Gujarat - expects to finalise the location by end of January 2006.

"There is a huge demand for shipbuilding in India, which has not yet developed the capacity to build big-sized carriers to the desired level. The country needs at least three to four more efficient shipyards," Mr A.M. Naik, L&T's Chairman and Managing Director, told presspersons here on Wednesday. The company is still examining whether to hive off its shipbuilding unit into a subsidiary or a separate company, he added.

Joint Venture

Asked whether L&T was mulling the option of taking over existing shipyards, Mr Naik said the company had proposed a joint venture with the state-owned Hindustan Shipyard Ltd in Visakhapatnam about three years ago. "The proposal has been pending with the Ministry of Shipping since then. We are still open to the proposal, but we do not know when it will take off," he said. He, however, added that a joint venture with Hindustan Shipyard Ltd would not take care of the requirement of its proposed Rs 2,000-crore shipyard, as the Visakhapatnam yard had a land measuring only 170 acres.

http://www.thehindubusinessline.com/...2306740300.htm

[Anniyan]

Pvt sector likely to invest $7.7 b in ports

The private sector is likely to invest $7.67 billion in Indian ports in the next six years. This is part of the Government's National Maritime Development Programme (NMDP) that has identified 276 projects involving an investment of $12.40 billion covering a range of port-related projects such as construction and operation of berths and terminals.

Wherever necessary, public funds would be used for provision of common user infrastructure facilities, according to a report of the Ministry of Shipping.

Foreign direct investment up to 100 per cent under automatic route is permitted for construction and maintenance of ports and harbours. Fifteen private sector projects are operational in various major ports. Four more projects are under implementation. The preferred route for private sector participation is through open competitive bidding.

Exercise is also underway to identify more projects under the NMDP, the report says.

The report on Emerging Investment Opportunities in Port Development says that the projects would be taken up till 2011-12. These are projects such as construction of berths, deepening of channels, modernisation of cargo handling operations and connectivity to ports.

India's 12 major ports - six each on the West and East coast of the 7,515-km coastline - handled 456.20 million tonnes of cargo for fiscal ending March 2006 compared with 423.42 million tonnes during 2005-06.

The ports are likely to handle 700 million tonnes by 2011-12, and it is planned to augment the capacities in ports to around 1,000 million tonnes per annum in the next six years. This would involve capacity addition of 545 million tonnes per annum in ports during the six years commencing 2006-07, says the report.

http://www.thehindubusinessline.com/...2300420700.htm

[kronik]

Major plans for minor ports

The role of minor ports run by State governments is going to be crucial for the country in the next five years. Recognising this, the maritime States have drawn up plans for a number of projects to expand their port capacities considerably. Under the National Maritime Development Programme (NMDP) of the Shipping Ministry, projects worth Rs 5,163 crore are to be taken up in the minor ports.

Besides the country's 12 major ports, there are 185 minor ports dotting India's 7,517-km coastline. However, only some of them provide round-the-year berthing facilities.

The major ports handle around 75 per cent of India's sea-borne traffic and the minor ports account for the remaining 25 per cent. The aggregate capacity in the 12 major ports as on March 31, 2006 was 456.20 million tones per annum (MTPA). The non-major ports handled around 150 mt last fiscal.

Port traffic is estimated to reach 960 mt by 2013-14. Cargo handling at all major ports is projected to grow at 7.7 per cent per annum till 2013-14, with minor ports growing at a faster rate of 8.5 per cent compared to 7.4 per cent for the major ports.

Of the country's 185 minor ports, only 61 are functional, according to a report. The number of non-functional minor ports is the maximum in Maharashtra, at 46, while the corresponding numbers for the other States are Gujarat (23), Andamans (17), Kerala (10), Tamil Nadu (9), Andhra Pradesh (9), Goa (4) and Karnataka (4).

Minor ports fall in the Concurrent List of the Constitution and the primary responsibility for their development and management rests with the State concerned.

The current Five-Year Plan envisages a significant change in the role of coastal shipping and provides for the establishment of a Coastal Vessel Traffic Service by the Director General of Lightships and Lighthouses.

Some of the major projects for additional capacity at minor ports include 115.50 MTPA in Gujarat, 83.20 MTPA in Maharashtra, 30 MTPA in Tamil Nadu, 27.50 MTPA in Kerala, 25.20 MTPA in Orissa and 17 MTPA in Karnataka.

The projects include greenfield projects, captive facilities and upgrading of existing ports.

Gujarat has greenfield projects at Simar, Mithivirdi, Vansi Borsi and Maroli, and Bedi is in the pipeline. Andhra Pradesh, has many projects including those under development in Machillipatnam, Nizampatna and Bhimunipatnam ports.

Tamil Nadu plans to develop Cuddalore, Colachel (a major container transhipment port is planned here) and Rameshwaram ports. Maharashtra plans to develop Rewas-Aware, Dighi, Jalga and Vijaydurg, and Redi is on the anvil.

Orissa is concentrating on Gopalpur, Dhamra and Jatadhari. Karnataka is expanding Karwar, Tadri and Belekri ports. Similarly, Kerala is focussing on Azhikal and Vizhinjam ports.

Puducherry plans to develop the Puducherry and Karaikal ports.Domestic and international private investors are also developing minor ports — such as Pipavav Port by Maersk and Mundra Port by the Adani group.

Further, a feasibility study is being taken up for development of a transhipment port at Great Nicobar Islands, the Shipping Ministry report says.

[Anniyan]

Chennai makes it to top 100 container ports list

Once the second terminal comes up, the port can handle an additional 1 lakh TEUs in the first year and 6 lakh TEUs within five years of operation.

The Chennai port has made it to the world's top 100 container ports list. It joins the Jawaharlal Nehru port, which entered the list long ago.

Chennai was ranked 99th in 2005 by World Port Development's International Journal for Port Management, an annual report on global ports published by the UK-based MCI Media Ltd.

The Jawaharlal Nehru port was ranked 33rd — down from 32nd in 2004.

At the 100th position was the Cabello port in Venezuela, according to the report.

Chennai Container Terminal, which is part of the Dubai-based DP World, operates the private container terminal at Chennai.

CCT took over the terminal in November 2001 and has so far invested around Rs 500 crore in the facility.

"It was a big surprise for us. This will be a major boost to Chennai to become a major container hub port on the east coast," said the Chennai Port Trust Chairman, Mr K. Suresh.

In 2005, container traffic through Chennai Container Terminal increased to 7.34 lakh TEUs (20-foot equivalent units), an increase of 19.18 per cent over 2004.

A second private container terminal to be run by a consortium of PSA Singapore and Sical Logistics is coming up at the port at a cost of Rs 492 crore. The consortium that operates the Tuticorin Container Terminal will develop the new terminal on build, operate and transfer model.

It would take two years to fully develop the greenfield project, but the company would be able to handle containers in a year's time.

Once the second terminal comes up, the port can handle an additional 1 lakh TEUs in the first year and 6 lakh TEUs within five years of operation.

China dominates

Singapore overtook Hong Kong as the world's top container port with a handling of 232 lakh TEUs (213 lakh TEUs).

However, China dominated the list not only taking the next three slots but also having 12 of its ports in the list.

Hong Kong was second with a handling of 226.02 lakh TEUs (219 lakh TEUs). Shanghai was third with a handling of 180 lakh TEUs (145 lakh TEUs) and Shenzhen was fourth with a handling of 161 lakh TEUs (136 lakh TEUs). Other Chinese ports in the list include Dalian, Xiamen and Lianyungan, according to the report.

Highest growth

The Romanian port of Constanza recorded the highest growth in container handling with a 103.5 per cent increase to 7.68 lakh TEUs (3.86 lakh TEUs). The Chinese port of Lianyungang was next with a 101.5 per cent increase to 10.07 lakh TEUs (5 lakh TEUs). Port Said port of Egypt recorded a 72.5 per cent increase to 15.20 lakh TEUs (8.81 lakh TEUs), the report said.

http://www.thehindubusinessline.com/...0502400700.htm