0821- City of Palaces!
Gujarat has the longest coastline in India with buzzing seaport activities,post here updates of New Seaports U/C and infra upgradation news of existing seaports.
BSRutam Vora / Ahmedabad July 14, 2011, 0:08 IST
In stark contrast to the Ministry of Shipping's proposal to bring all non-major ports under a single central regulatory framework, Gujarat is taking the initiative amongst its peers in bringing port-led development to the state.
Impressed by this Western state’s success story in ports, many coastal states have also started looking to Gujarat to help them chalk-out a road map for port-led growth.
For instance, coastal states including Orissa, Kerala and Karnataka have initiated talks with the Gujarat government to formulate a maritime authority for their respective states.
Officials at the Gujarat Maritime Board (GMB), the state maritime authority, have reported that senior officials from other state governments have already started visiting Gujarat. "Officials from Orissa, Kerala and Karnataka have visited Gujarat and seen the port development here. They are excited about the growth and have sought our assistance to formulate maritime authorities in their respective states,” says Capt S C Mathur, chief nautical officer, GMB. “Most likely, Orissa may replicate the model of Gujarat Maritime Board in its entirety," he adds.
Gujarat was the first Indian state to have a dedicated maritime authority in 1981 and a port policy formulated in 1995. Besides Gujarat, only two other states Maharashtra and Tamil Nadu have maritime boards. The central government has directed all the maritime states to set up a maritime board on an urgent basis.
More than the maritime authority, it was a port policy that opened the doors for a port-led development in Gujarat. The port policy calls for public-private partnership (PPP) in port development and management. Unlike the Tariff Authority for Major Ports (TAMP) that determines tariffs for the major ports in the country, Gujarat's port policy safeguards the interests of port operators and the state exchequer as well.
According to government officials, the policy enabled private partnership and tariff freedom that led to port-led development in the state. "We have adopted BOOT (Build Own Operate Transfer) policy for development of greenfield ports with tariff and operational freedom to the private port operator. The legal regulation remains the subject of GMB for such ports. The port facilities come back to GMB after the completion of the BOOT period," said Mathur.
Tariff freedom has attracted large private investors to Gujarat’s ports. "The tariff mechanism, which is there for the major ports in India, does not seem to be conducive, nor is it giving any incentive to the private port operator. Rather, a public-private partnership model with tariff freedom seems more attractive. In Gujarat, we were the first to develop a port under PPP model," said Prakash Tulsiani, managing director, APM Terminals Pipavav.
As a part of the A P Moller-Maersk Group, APM Terminals operates an all weather multi-commodity port at Pipavav. with a capacity up to 5 MTPA for bulk cargo, 2 million tonnes per annnum (MTPA) for liquid cargo and 1.3 million TEU (twenty-foot equivalent units) for container cargos.
Gujarat currently has four greenfield private sector ports operational with a combined installed capacity of all four at around 100 MTPA. These private sector ports include Mundra Port, Hazira Port, Pipavav Port and Dahej Port. The commodities handled at these ports include coal, fertilisers, agri-commodities, salt, LNG and LPG besides others.
The industry insiders feel that the Gujarat's business-friendly policy and governance attracts industries to make investments in the port sector. "Almost all of our investments of Rs 6,000 crores currently in ports are in the state of Gujarat located at Vadinar and Hazira. Further, we would be investing another Rs 2,000 crores in Gujarat to add 40 MTPA of capacity as a part of our total planned investment of Rs 9,300 crore to take our capacity to 158 MTPA by 2013," said Rajiv Agarwal, MD, Essar Ports Limited.
Essar group currently operates a combined capacity of 88 MTPA at the two locations, while the upcoming is at Salaya on the west coast near Jamnagar. However, the company is also adding 30 MTPA of capacity at Paradip in the eastern state of Orissa at a cost of around Rs 1,100 crore.
The port development in the state has also provided a boost to export-oriented industries coming up in Gujarat. India's largest car maker by sales, Maruti Suzuki India Limited is reported to be planning a plant in Gujarat with an estimated investment of Rs 4000 crore. The industry insiders believe that a plant in Gujarat would help Maruti to export its car easily in the overseas markets.
The special economic zones (SEZs) coming up in Gujarat are also promising assured business for the port operators in Gujarat. "From the operations point of view, Gujarat is very well connected to the hinterland and gives access to land-locked northern India. Also, the longest coast-line and development of SEZs, investment regions and industrial clusters makes the state a key location for maritime trade," says Tulsiani.
The existing installed capacity of the 41 non-major ports in Gujarat stands at 273 MTPA, which is expected to rise to 508 MTPA by 2014-15. So far, the cargo handling at these non-major ports was recorded at 231 MTPA for 2010-11 up 12.34 per cent over previous year.
Cargo handling at the non-major ports in Gujarat has grown by a compounded annual growth rate (CAGR) of 12.2 per cent in the last decade easily outstripping the national CAGR of 9.3 per cent (from 368 MTPA in 2000-01 to 821 MTPA in 2010-11.)
India's 7500 kms long coastline covers states including Gujarat, Maharashtra, Goa, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and West Bengal with 12 major ports and close to 200 non-major ports, all of which could be ardent emulators of Gujarat’s successful ports gameplan.
LivemintSoumitra Trivedi, [email protected]
The Adani Group’s Mundra Port and Special Economic Zone Ltd (MPSEZ) is planning a 200-acre plastic processing park that will seek to attract investment of about Rs.4,000 crore, said senior officials of the Gujarat industries ministry and the Adani Group.
“We have recently received a copy of a proposal to set up a plastic processing park from Adani Group’s MPSEZ. The plastic park will come up in Mundra and will be spread across around 200 acres inside the SEZ,” said a government official who didn’t want to be identified.
The park will house injection moulding, blow moulding, extrusion and other units to manufacture plastic furniture, PVC (polyvinyl chloride) pipes and packaging material among other plastic products.
MPSEZ chief operating officer Pankaj Modi confirmed the submission of a proposal to the Union and state governments for the plastic processing park but refused to give any details “as the project is at a concept stage”.
A senior Adani Group official who did not want to be identified said: “The proposed park is mainly aimed at attracting plastic manufacturers to create a cluster. At present, there are over 30,000 small, medium- and large-sized plastic processing units scattered across the country.”
The official said MPSEZ offers the advantage of proximity to a functioning port that can be used to import raw materials and also export finished products.
“Units can source raw materials like polyvinyl chloride, polyethylene, polystyrene and polypropylene via the sea route from either domestic manufacturers like Reliance Industries Ltd (RIL) or it can be imported,” the official said.
While refusing to divulge names, the official said many plastic manufacturers had expressed interest in setting up units.
Units can choose to cater to the overseas markets and avail SEZ benefits or serve the domestic market, which has a large untapped potential, by paying duties, the official said.
“Such a project can be of great interest to players as the demand for plastic is growing rapidly in the country,” said P.D. Trivedi, chairman of the Indian Plastic Institute, which carries out research and runs skill development courses. “The potential in the country is huge. Currently, the Indian consumption of plastic products is around 6kg per capita while the world average consumption of plastic is over 20kg.”
India’s plastic consumption, around seven 7 tonnes (mt) per year, is likely to double in the next three to five years.
“Of the total consumption, we are importing over a million tonnes of plastic. In the coming years, we will certainly need more manufacturing within the country to meet the rising demand. Apart from Reliance Industries, which produces 1 mt (per year) of polypropylene (one of the resins used to make plastic products), many more players like IOC (Indian Oil Corp. Ltd) are also expanding their polypropylene capacities,” Trivedi said.
The country’s plastic industry generates around Rs.85,000 crore revenue per year, which is growing at around 15%, said S.K. Ray, senior executive vice president, polymers business, RIL.
RIL’s polypropylene units are located at the Hazira and Jamnagar petrochemical complexes in Gujarat.
State-owned IOC has a polypropylene capacity of 600,000 tonnes at Panipat in Haryana. The company is planning to set up a 1.2 mt per annum polypropylene project at its Paradip refinery in Orissa, with an estimated investment of Rs.4,500 crore.
In an effort to provide a major boost to the future of industrialization along the Gulf of Khambhat, the Gujarat government has decided to allocate alternative sites near Bhavnagar and Dahej to the Adani Group and the Infrastructure Lease and Financial Services (IL&FS), respectively, for developing new ports. Well-placed Sachivalaya sources said, the state government's decision came after a final nod to drop development of ports at Dholera and Khambhat, for which letters of intent (LoIs) were earlier issued to the Adanis and the IL&FS.
An internal official note of the state ports and transport department, prepared late last month said the two developers "have extended the Bank Guarantee towards LoIs to confirm their interest in development of ports at alternate locations." The note added, the Narmada, Water Resources, Water Supply and Kalpasar department has "approved modification in Kalpasar dam alignment", leading to the need to relocate from Dholera and Khambhat ports "on the downstream of the proposed dam."
A senior Sachivalaya official said, "The two developers have asked us formally to tell them an alternative site near Bhavnagar and Dahej, where the two ports can be constructed." The Adanis are learnt to have particularly stressed that they are keen to develop a "deep water port at a suitable location near Bhavnagar port", replicating their "expertise gained at the Mundra port." As the two developers are keen to shift to alternative sites, the state government decided to speed up the process of carrying out techno-economic feasibility studies in order to exactly pinpoint the spots where the ports can come up, the official added.
The tenders for techno-feasibility study to locate alternate sites will be out by November. "Already, the National Institute of Oceanography (NIO) has, in its preliminary study, pointed out that, once Kalpasar dam is built up by damming the Gulf of Khambhat, the two ports would have considerably less current. Tide, on the other hand, will experience a rise, leading to big ships reaching up to the ports", the official said, adding, "The NIO has suggested that the dam will also ensure a sharp decrease in sedimentation in the Gulf of Khambhat from major rivers, making the two spots ideal."
The Japanese have decided to come to Alang, offering to the Gujarat government a major plan to modernize Asia's biggest ship-recycling yard.
A high-level 15-member Japanese delegation, led by Kenji Tomoda, chairman, Ship Recycle sub-committee of the Japanese Ship-owners' Association, met chief minister Narendra Modi and officials of the state ports department on Monday, telling the state government about the need to make Alang's 170 recycling plots, spread over a 10 kilometres stretch, environmentally friendly, such that foreign ships can reach there without any hassle for recycling.
"The cost for modernizing the yard has been estimated at $ 22.5 million. We have asked the Japanese to fund the project. The delegation seemed keen," a senior government official, who was in the meeting with the delegation, told TOI.
Among those who were part of the delegation included top shipping companies like Nippon Yusen Kaisha and Mitsubishi," the official said, adding, "Other representatives included members of the Japanese International Cooperation Agency, which provides technical and other forms of aid promoting economic and social development, and Japanese Ministry of Economy, Trade and Industry ( METI)."
During their talks with the CM, the Japanese insisted about the need to ensure that Alang complies with the Hong Kong Protocol for Safe and Environmentally-Friendly Recycling, formulated by the International Maritime Organization in 2009.
"This alone with ensure that Japanese ships, which form 15 per cent of the world's total, reach Alang for recycling and do not go anywhere else," the official quoted the Japanese. The official added, "This was the second Japanese visit to India. Immediately after the first visit, we asked Wapcos, the Government of India consultants, to prepare a complete project report on what all is needed in order to implement the Hong Kong protocol, to which India is a signatory."
On their part, the state government assured the Japanese delegation that it will do everything to enforce the Hong Kong protocol, including constructing a safer hazardous waste disposal site and platforms for cutting ships.
The delegation was also assured that better facilities will be created for safer reception of oil from the tankers that come with the ships.
:cheers:The Adani Port and Special Economic Zone (APSEZ) has won the bid to construct a Rs 1,060 crore dry bulk terminal at Tuna which is being developed as a satellite port of Kandla in the Gulf of Kutch in Gujarat.
The terminal having a cargo handling capacity of 14.11 million tonnes per annum (MTPA) was decided to be awarded to APSEZ after the board of trustees of the Kandla port — the country’s biggest port — “decided unanimously to award the PPP (public-private-partnership) project to the highest bidder — APSEZ.” The decision was taken in the meeting of Kandla Port Trust (KPT) board held on Tuesday.
“They (the board) have also taken note of the assurance given by the promoter, Gautam Adani to complete the project in time,” stated an official statement from KPT. The board has also imposed certain conditions to monitor the project with six monthly milestones. Ironically, over the years APSEZ, which operates a private port in Mundra in the same Gulf, has been targeting to overtake Kandla as the top cargo handler of the country by handling 100 million tonne of cargo by 2013. On the other hand, KPT itself is in the process of building four multi-purpose cargo berths to help it cross 100 million tonne of cargo by 2012-13.
“The concession agreement will be as part of the model documents followed by all major ports for similar projects with stringent conditions to take care of any delays by the concessionaire,” KPT official said in the statement.
Apart from the dry bulk terminal at Tuna, KPT is also setting up a single point mooring (SPM) and allied facilities off Veera in Gulf of Kutch (project cost Rs 621 crore).
Gujarat plans to set up its fourth liquefied natural gas (LNG) terminal at the Pipavav port soon besides commissioning the 5-MT capacity greenfield LNG terminal at Mundra by 2015-16, the state's principal secretary for energy, DJ Pandian, said.
"We want one more LNG terminal at Pipavav port, which will have 2.5 MT to 5 MT capacity. Many companies have expressed interest in the project," Pandian told ET. The state already has terminals at Dahej and Hazira and a third one is coming up in Mundra.
"Companies like Torrent, BPCL and HPCL are interested in Pipavav project. The project would be launched soon," Pandian said.
He said many companies were interested in picking up 25% equity stake in Rs 3,500 crore Mundra LNG terminal project. "A strategic partner would be inducted by 2013," he said.
GSPC, owned by Gujarat government, wants to develop the project before inducting a new partner, a company official said. "We will invest Rs 60-100 crore in next 6-12 months before inducting a new partner," said the official who did not wish to be named. GSPC has 50% equity stake in the terminal and Adani group holds 25%. Essar group, which initially held 25% stake in the project, exited the venture.
The company plans to source gas from Australia and Egypt for the Mundra terminal. Pandian said Gujarat had emerged as LNG hub of the country and has appetite for new capacities.
Hazira and Dahej terminals have combine capacity of over 13 MT and there is a scope for two more terminals, he said.
The Saumitra Chaudhuri committee report estimates that the domestic gas output would reach to 199 million metric standard cubic meters per day (mmscmd) by 2016-17, but demand would outstrip supply.
Dna epaperKandla, the only major port in the state, has topped the list of traffic handlers for the financial year of 2011-12 with its total cargo throughput being at 82.50 million tonne. This is the fourth consecutive year it has clinched the top spot among the central-government owned major ports across India. To achieve this record, the port utilized 96% of its set capacity of 85.88 MMT. However, its annual growth has been only 1% as it handled 6.21 lakh tonne more cargo over last year's 81.88 MMT.
According to official information, Kandla's off-shore oil terminal at Vadinar in Jamnagar district recorded oil traffic of 440.58 lakh tonne, which is lesser than the last year's handling of 448.92 lakh tonne. The less handling this year is attributed to Essar refinery remaining shut for maintenance in Sept-Oct 2011.
The main port Kandla handles both dry and liquid cargo. With 287.82 lakh tonne dry cargo handling, it registered 8% growth over the last year's capacity. The individual commodities that showed marked upward trend mainly included coal (21% increase), rice (63%), salt (10%), oil extractions (19%) and ores (70%). While, liquid cargo stood at 96.61 lakh tonne, the port has privately-run container terminal by ABG company and total TEUs handled stands at 1.66 lakh TEUs (20 equal units).
A total number of 2319 ships called at Kandla port while 393 oil tankers docked at Vadinar.
Gujarat Maritime Board (GMB) today said non-major ports in the state have registered a 12.9 per cent growth in cargo handling at 259 million tonnes (MT) in FY 2011-12. The non-major ports of the state had handled cargo traffic of 231 MT in 2010-11.
The traffic has increased considerably at most of the non-major ports like Bhavnagar, Okha, Bedi, Navlakhi, Mundra, Magdalla/Hazira, Pipavav, Dahej, Porbandar and Sikka, the State port regulator said in a statement here. The non-major ports in Gujarat are projected to have traffic handling capacity of more than 500 MT per annum by 2015-16, and of over 1,000 million tonnes by 2020, it said. "GMB has bagged many achievements and it will continue to strive for the betterment of ports in Gujarat," GMB Chief Executive Officer Pankaj Kumar said.
The creation of new capacities in last fiscal has increased the ports' cargo traffic handling capacity to 323 MT, a rise of 13.7 per cent. The total cargo handling capacity of the non-major ports in Gujarat stood at 284 MT in 2010-11. The capacities were created through development works undertaken in the coastal regions of Gujarat like Mundra, Jamnagar and Bharuch, the statement said. According to GMB, Asia's largest ship breaking yard at Alang in Bhavnagar district dismantled a record number of 415 ships in the last fiscal.
At current growth rates, it will be a matter of months before the two Kutchi ports are the top 2 in India for overall cargo..
Mundra Port 4th Largest Port - Up from 7th among Indian Commercial Ports.
Operational Highlight 2011-2012
Handled 64.01 MMT Cargo 24% Growth (Yoy) & Its MARKET SHARE Improved TO
10.3% From 8.3% (YoY).
Handled Highest Container Volume 1.52 (Million TEUs) 24% Growth (YoY) & Market
Share In Container Improved To 16.4% From 14.0% (YoY).
Handled Highest Coal Volume (18.75 MMT) In FY¡¦11-12.
from the link Naresh posted.
Gujarat government has given a go-ahead to construction of the proposed port at Nargol, 120 km south of Surat. A consortium of Cargo Motors Limited and Israel Ports Company (IPC) will develop the port at an investment of Rs 4,000 crore, a state government official said.
"The Gujarat government has recently okayed the GMB bid given to the consortium. Now the work of this greenfield port will take off," said a senior official of the department of Road, Ports and Transport.
Nargol is amongst eight greenfield ports being developed by Gujarat Maritime Board (GMB), the maritime regulator in Gujarat. Other ports Mundra, Pipavav, Dahej and Hazira have been made operational by private players, while Chhara, Kacchigadh and Mahuva are under various stages of development.
Nargol falls in the upcoming Delhi-Mumbai Industrial Corridor ( DMIC), about 120 km south of Surat and 140 km north of Mumbai is perceived as a multi-purpose port capable of handling solid, liquid and container cargo. The place is well connected with road and rail network. Plans are underway to expand the two-lane state highway into an eight-lane divided carriageway.
It has a draft (depth) of 11-12 metres. The developers expect to reclaim 75-150 hectares of land for developing the port, whose first phase is likely to be commissioned by 2015-2016, said a GMB official. The proposed port is estimated to have an initial cargo handling capacity of 1.2 million twenty-feet equivalent units (TEU).
When operational, it is expected to ease the burden on the Jawaharlal Nehru Port Trust ( JNPT) in Mumbai. The developers are also looking at the possibility of offering Roll-On-Roll-Off (RO-RO) service, where passenger and cargo vehicles can be ferried in giant ships.
Mumbai-based Shapoorji Pallonji has undertaken work for the Chhara port in Junagadh and Larsen and Tubro is developing Kachchigadh port in Jamnagar. The consortium had won a bid in January earlier this year and was awaiting a final approval for the go ahead from the state government.
The bidding witnessed participation of at least twenty companies of which Essar, Sterlite-Vedanta consortium, Gammon India and consortium of Israel Port Company -Cargo Motors were shortlisted for the final selection. Cargo Motors runs car dealerships and is akso involved in the hospitality, logistics, construction and power industries while IPC has over 50 years of experience in maritime infrastructure.
Gujarat Maritime Board handles 41 minor ports, which have a share of 25% of the nation's total cargo and account for 80% of the total traffic handled by other non-major ports of India. Traffic at Gujarat's non-major ports grew 11.31% quarter-on-quarter to reach 63.20 million tonnes during the first quarter of the current fiscal.
610,243 TEUs for Pipavav puts it 4th position for container handling behind JNPT, Chennai and Mundra for 2011.Port Pipavav, situated in the Amreli district of Gujarat, on Thursday said that it set a new national record on July 17, 2012 by handling 14 container trains in a day. This is by far the largest number of container trains handled in a day by any container terminal in India, according to a company statement here.
From three to five trains per day in 2009, the port has steadily increased the rail frequency to 14 trains in a day in 2012. In June 2012, the port created a new benchmark for itself by handling 197 container trains in the month. Increasing volumes and operational efficiencies made it possible for the port to enhance rail volumes and frequency.
Mr C.K. Rajan, Head of Container Business at APM Terminals Pipavav, said that with the new rail-mounted gantry cranes scheduled to become operational in the fourth quarter this year, its efficiencies will improve further, attracting more cargo volumes at the port.
In 2011, the port handled 610,243 TEUs, an increase of 31% over 2010. In 2010, volumes grew by 45% and in 2009 it had grown by 65%.
Port Pipavav launched double stack container trains in India for the first time in 2006.
The port is now working towards making it a double stack high cube compatible corridor by the end of 2012. The port currently has eight railway sidings and will be adding three more as volumes grow further.
Simultaneously, the port has improved efficiencies in handling bulk cargo. A new Gottwald crane and new storage yards are already operational. So far, the port has predominantly handled coal and fertilizers and is planning to increase the number of commodities handled at the port. The new bagging plant will soon be commissioned.
It will surely expand industrialization in Hazira as well as around Surat too... :cheers:^^ That will provide the major boost to the Industrially most vibrant Vadodara-Vapi Industrial belt. I am sure that Hazira's container terminal will achieve 1 million TEU mark very soon and it will have to undergo expansion. Thanks to hazira's richest hinterland and the best connectivity than other ports. The upcoming DMIC and freight corridor are in the offense to provide maximum connectivity. This will prove to be the 2nd Mundra in Guj.:banana:
Shapoorji Pallonji to set up LNG terminal in GujaratEngineering and construction firm Shapoorji Pallonji Co Ltd is planning to set up an integrated deepwater port comprising an LNG import terminal and a power plant in Gujarat, a senior company official said today.
"It will be a deepwater port, along with a major liquefied natural gas importing terminal and a 2,000-MW power generating plant," Jimmy Parakh, the company's finance chief, said at a function in Singapore.
The LNG terminal would be a joint venture with Hindustan Petroleum, he said.
Mumbai-based infrastructure major Shapoorji Pallonji has decided to set up an LNG import terminal in a joint venture with Hindustan Petroleum Corporation Ltd in Gujarat. The LNG terminal is a fresh addition to the company's plans to set up an integrated deepwater port and a power plant at Kodinar taluka of Junagadh.
"It will be a deepwater port, along with a major liquefied natural gas importing terminal and a 2,000-MW power generating plant," said company officials.
Senior government officials said that with increasing demand for gas in the country companies are firming up plans to enable LNG import terminals. The state currently has two operational LNG terminals at Hazira and Dahej. A third one is being implemented at Mundra and talks are on between Larsen and Toubro (L&T) and state-owned Gujarat State Petroleum Corporation (GSPC) to set a fourth terminal on a 50:50 partnership near Okha.
The company also announced setting up of an Rs 5,000 crore greenfield port on a 500-hectare land, which has been allocated to the company.
For overall Cargo, some clear distance developing between Mundra and JNPT. Kandla still comfortably leads.Overall Cargo