Handing containerized barges at the anchorage ports in Gujarat
Ports, Port Services and Logistics Government of Gujarat
Contents Project Concept
3
Market Potential
5
Growth Drivers
7
Gujarat – Competitive Advantage
8
Project Information
10
- Location/ Size - Infrastructure Availability/ Connectivity - Potential collaboration opportunities - Key Considerations
Project Financials
16
Approvals & Incentives
17
Key Department Contacts
18
Page 2
Project Concept What are containerized barges ? A containerized barge is a kind of vessel which is primarily utilized for the purpose of loading cargo and transporting it from one location to another. In contrast to a cargo ship, containerized barges are not independent carriers or vessels. In order to be moved from one location to another it has to be towed by another navel carrier or vessel. In common practice barges are mostly used in inland transportation mediums like river, lakes or canals. In recent times there uses have also increased in sea borne transportation. In structure, a barge is flat-shaped in the base, same as a raft. The main rationale behind this structure is to enhance the cargo carrying capacity of the barge and maximum amount of cargo can be hauled and transferred.
Types of barges 1
2
3
Page 3
Dry Bulk Cargo Barges – These barges are made to carry dry bulk cargo like food grains, sand and other construction materials. These type of barges carry this cargo from one area to another, sometimes it involves more than one barge to complete the single operation.
Liquid Cargo Barges – These are barges which are specifically designed to carry liquid cargo, such as chemicals and fuels. These barges are designed as per specified criteria keeping in mind the safety parameters. These barges are considered more safe and spill proof than rail or road networks.
Car-float Barges – These barges are not used as frequently. It is fitted with rails so that rail coaches can be easily transported through them. It is mostly use to transport old coaches or new coaches in need of maintenance across various water bodies.
Project Concept 4
5
Power Barges – These barges are essentially power plants that are installed on a deck of the barge. They were developed during WWII in order to provide power generation on a temporary basis. While still used today, they can have single or multiple turbines, engines, boilers. They can be gas, coal or nuclear powered. Deck and Construction Barges - These barges are built specifically to transport large machinery like material handlers and other construction equipment. They are also often used to work on construction projects in congested areas that are located directly on bodies of water (think cities, dams, bridges, etc.).
What are anchoring ports ? ►
Anchorage ports are temporary ports where in the ships can lower its anchor and pause their movement for purpose like STS. ► Used for ships to have transfer of cargo to barges etc. ► Used for ships to wait for change in weather conditions or change in direction of wind. ► It usually saves the cost incurred by shipping line by saving on fee of docking at ports. ► Its usually situated away from port and may change depending upon weather conditions. ► Very beneficial for places which do not have a permanent port.
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Market Potential Global
Global shipping industry overview Global shipping industry 2010-14 10
8.0%
7.1%
10
5.3%
9
3.9%
9
8.7
8
►
9.8
9.6
6.0%
9.2 4.3%
►
4.0%
2.5%
►
2.0%
8.4
8
0.0% 2010
2011 2012 Billions Tons
►
2013 2014 % growth
The world seaborne shipments reached nearly 9.8 billion tons at a growth rate of 2.5% from 2010 to 2014. As of 2015, the seaborne shipments constitutes 80% of the global trade. World container throughput increased marginally to 71.9% in 2014, owing to increasing south-south trade. Annual growth rate has been decreasing, in 2010 growth was 7.1% y-o-y whereas in 2014 growth was merely 2.5% y-o-y.
Source: Review of maritime transport 2015
Composition of seaborne international trade 2014 (%) 26.0
POL
38.0
Bulk Cargo
15.0
Minor Bulk
Gas and chemicals
6.0
15.0
Containerized
Global containerized trade overview ►
Cargo in million tonnes
Total containerized trade
►
8409
8784
9197
9514
9842 ►
3302
3505
3614
3762
3903
2010
2011
2012
2013
2014
Total cargo
Containerized Cargo
Source: Review of maritime transport 2015, UNCTAD
►
The global containerized trade was 171 million TEU’s in 2014, an increase of 5.3% compared to 2013. The growth in containerized cargo has been rising at a comparatively stable pace of 4% y-o-y basis from 2010 to 2014. Steady growth in dry cargo transportation fueled by increasing imports by China, the demand for container shipping has been increasing. The prices for container shipping in 2014 remained volatile amid growing speculation of change in market fundamentals.
Performance of top 3 container cargo trading countries, 2015 South Korea
5.93 5.2
CAGR : 6.7% 11.9 11.2
US
CAGR : 3.0% 36
China
31.3 2014
Page 5
2013
2012
CAGR : 7.2%
Market Potential India
Indian shipping industry overview Containerized cargo traffic at major ports in India (in million tonnes) 581.34 570.03 560.14 555.50 545.79
179.1
2010
187.3
186.0
2011 Total Cargo
188.8
►
►
121.2 ►
2012 2013 2014 Containerized cargo Source: Indian shipping statistics 2015
Composition of Indian tonnage 2014
►
The composition of dry cargo liner carrying container ships was approximately 17% in 2014.
►
In India, 55.2% of total traffic was handled by Major Ports and the remaining 44.7% of total traffic was handled by Non-Major Ports.
►
In the past decade, the composition of dry cargo has grown to 25% in 2015.
►
Some of the major ports handling container traffic are Jawaharlal Nehru Port, Chennai Port etc.
Other 5% Dry cargo liner 17%
Oil Tanker 53%
Dry Cargo bulk carrier 25%
Jawaharlal Nehru Port Trust (JNPT) continues to be the largest handler of container cargo in India, with 48% of total container cargo followed by Chennai (25%) and the remaining share of 27% handled by other major ports. The Average Turnaround Time at major ports improved from 4.24 days in 2000-01 to 2.13 days in 2014-15. Growth of cargo throughput was maximum at 35.3% at Mormugao, Goa, followed by Chidambaranar, Tamil Nadu (19.3%).
Container traffic loaded/unloaded Port
Cargo Traffic 2015-16 (P)
Port
Cargo Traffic 2015-16 (P)
Kolkata, West Bengal
16.68
Jawaharlal Nehru, Maharashtra
64.02
Haldia, West Bengal
33.50
Mumbai, Maharashtra
61.11
Paradip, Odisha
76.38
Cochin, Kerala
22.09
Visakhapatnam, Andhra Pradesh
57.03
New Mangalore, Karnataka
35.58
Chennai, Tamil Nadu
50.05
Mormugao, Goa
20.77
V.O. Chidambaranar, Tamil Nadu
36.84
Kandla, Gujarat
100.05
Page 6
Growth drivers
Gujarat Maritime Board
Policy support
Established in 1982 as India's first maritime board, It has helped Gujarat position itself as the maritime gateway of India.
Systemic planning and implementation has enabled GMB to almost double its capacity from 135 MMTPA in 2001 to 467 MMTPA (P)in 2016.
The government of Gujarat has given special emphasis on port development and cargo shipping industry development. GoI* provides an incentive of INR 3,000/TEU for Full container load (FCL).
GoI* allows 100% FDI in the shipping industry. Introduction of tonnage tax for shipping companies also incentivizes the shipping liners. Further, the Sagarmala project will attract more cargo traffic in India.
Gujarat is strategically located at a point which between Middle East, Africa and Europe.
Majority of the container traffic is from African countries and European regions, ports of Gujarat can be of strategic importance in such routes.
Gujarat has more than 44 ports spread across its 1,600 km coastline. The main governing body of ports is GMB.
The length of surfaced roads was 97.45% of the total road connectivity in 2015.
Geography
Infrastructure
In terms of railway network per 100 km of area, Gujarat has 2.66 km network against 2.01 km for the nation.
Good Governance
Support Industries
The state is one of the least corrupted in the country with an anti-corruption index of 0.69
Gujarat leads in project clearance in coastal areas with a success rate of 93%.
Gujarat has a number of export houses and container cargo importing industries which may also gain from similar project.
Gujarat was the first state to establish a private port in India, along with that it has 2 out of 3 LNG terminal gateways in India.
*GoI – Government of India
Page 7
Gujarat competitive advantage Port locations in Gujarat
Jakhau Mundra Okha
Navlakhi Bedi
Kutchhigarh
Bhavnagar
Dahej
Mithivirdi Porbandar Veraval
Mahuva Pipavav Jafrabad Chhara
Magdalla Hazira
Varsi Borsi Nargol
GMB Ports
Private sector ports
►
Well connected layout of railway and roads, Gujarat has connectivity to all major business hubs of India and is very suitable for multi modal transport.
►
Gujarat has a well connected pipeline network with rest of India and all the major refineries.
►
Direct connectivity with Mumbai and other non coastal states like Uttar Pradesh, Delhi-NCR etc.
►
Gateway to 2 out of 3 LNG terminals in India are from Gujarat.
►
Establishment of first Chemical Terminal at Dahej by GCPTCL Traffic at GMB ports (in million tonnes), 2016: Total 339.8 Million Tonnes 144.0
POL
Coal
66.0
Container
Fertilizer
48.0
6.0 6.0
Iron-Ore Source: GMB traffic highlights 2016
Page 8
Gujarat competitive advantage Traffic details at Gujarat ports Cargo traffic in Gujarat (Million tonnes)
2590.3
2878.2
3099.5
3360.9
CAGR of traffic growth
3397.8
2011-12 2012-13 2013-14 2014-15 2015-16 Source: GMB traffic highlights 2016
Capacity v/s traffic at Gujarat Ports (in MMTPA)
323 259
387 310
366 288
422 336
Traffic
Private ports
32.8%
Private Jetty
8.9%
Captive Jetty
7.8%
Total traffic
13.2%
The capacity has increased from 323 MMTPA in 2011-12 to 466 MMTPA in 2015-16, growth with a CAGR of 9.6%.
►
The net traffic has increased from 259 MMTPA in 2011-12 to 340 MMTPA in 2015-16, growth with a CAGR of 7.0%.
►
The exports and imports at GMB ports has remained same, total container cargo traffic at GMB ports was 48 Million metric tonnes.
►
Container cargo traffic at all the major ports of Gujarat totaled 123 million metric tonnes in FY16.
2011-12 2012-13 2013-14 2014-15 2015-16 Capacity
10.9%
►
466 340
GMB Ports
Proposed port led Special economic zones Port led SEZ and size (in hectare)
Kandla port SEZ Mundra port SEZ
Kandla port SEZ
400
Mundra port SEZ
2730
Dahej SEZ
1718
Sterling SEZ
1263
Essar Hazira SEZ
1263
Reliance SEZ
1764
Sur SEZ
50
Sur SEZ Reliance port SEZ
Sterling port SEZ Dahej port SEZ
Essar Hazira SEZ Page 9
Project Information Suggested Location Potential locations The project mainly requires an anchorage location which has to be nearby a GMB owned port and should have anchorage facility which could handle average sized container ships.
Okha port
Porbandar port
Potential Anchorage Ports Location
GMB owned ports
The suggested locations of Okha port and Porbandar port lies in the Jamnagar and Porbandar regions of Gujarat respectively. The location of Okha is near to the proposed Reliance port SEZ and can provide cost effective alternative to container ship liners.
Suggested Locations Port of Okha lies in Jamnagar city, it’s a fair weather port. This port has a strategic advantage of being near to Porbandar and Jamnagar. Okha Port Porbandar Port
Page 10
Porbandar port is located in the Porbandar city and it is also an all weather port. It has berthing capacity up to 50,000 DWT.
Project Information Suggested Location About Okha port Okha is a well connected port by broad gauge railway system. It is connected by road to both Jamnagar/Porbandar by state highway and then by National Highway. National Highway-8E is 30 km away at Dwarka.
Facilities at shore Anchorage point: ►
Anchorage is 2.4 km off shore. Vessel upto 7.5 m draught can be berth at this port.
Other Facilities ►
Barges: Private barges are available (No port barges)
►
Cranes : 1 no. of mobile crane with capacity of 12.5 tonnes.
►
Fresh Water : Limited supply by private barges
►
Fuel Oil : Available
Traffic at GMB operated Jetties (in lakh metric tonnes)
►
Coke, Coal, Wheat, Sulphur and Fertilizer, Calcium Bauxite, Onion, Clinker, Raw Bauxite, Chemicals and Soda Ash
50 45 2016
Commodities Handled
2015
About Porbandar port Porbandar Port has multiple-lane road connectivity with national highway 8B (6 kms. away) and state highway no. 6. The nearest railway station is Porbandar which is 5 kms. from from the port..
Facilities at shore Anchorage point:: ►
Anchorage is located at about 2 km offshore, south-West of break water, with good holding ground and a depth of 9.5 meters. Approach to the anchorage of break water is 1.1 Nautical miles. Anchorage operations remain closed during monsoon period due to heavy swell and winds.
Other facilities ►
Cranes : TIL models 1,610 with 16MT capacity
►
Dry dock : 45.72m x 16.76m
►
Godown : 34 nos. with total area of 2,41,73.53 Sq. m
Traffic at GMB operated Jetties (in lakh metric tonnes)
►
25 18 2016
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2015
Commodities Handled
Coal, LPG, Wet dates, Salt, Cement/Clinker, Clay Bauxite, Onion, Raw cotton, Soda Ash, Marin product etc.
Project Information Tariff and charges S. No.
Component
1
Port Dues • Ships arriving to load/unload cargo from/to daughter vessels • Vessels arriving to load/unload cargo
2
3
4
5
Page 12
Okha Rate/GRT
Porbandar Rate/GRT
INR 25
INR 25
INR 7.50
INR 7.50
INR 30,000
INR 30,000
INR 16,500
INR 16,500
INR 3,000
INR 3,000
Anchorage charges • Foreign Vessels • Coastal vessels • Other
USD 0.019/day INR 0.45/day INR 0.54/day
USD 0.019/day INR 0.45/day INR 0.54/day
Rent for • Open space • Tin shed space • Pakka-Shed
INR 600 INR 300 INR 1,500
INR 600 INR 300 INR 1,500
INR 900 INR 400 INR 480 INR120
INR 900 INR 400 INR 480 INR120
INR 720 INR 180 INR 390 INR 100
INR 720 INR 180 INR 390 INR 100
Pilotage charges • Minimum charge when inward and outward pilotage is provided by GMB • Minimum charge when inward or outward pilotage is provided by GMB • No inward/outward facility being provided by GMB, mandatory tariff
Landing and shipping fees (GMB jetty) • Reefer Containers • 40 feet loaded • 40 feet empty • 20 feet loaded • 20 feet empty • Other conatiners • 40 feet loaded • 40 feet empty • 20 feet loaded • 20 feet empty
Project Information Specifications of proposed barges S. no.
Built
1
Hooper Barge NK-2006Malaysia
2
1998 Korea
3
4
Page 13
Specifications
Estimated Price (INR)
DWT – 10,000 Length – 100.6 m. Draught – 4.88 m
15 crore
DWT – 3,000 Length – 90 m. Draught – 5 m.
5 crores
DECK BARGE 1988 LOUSIANA USA
DWT – 5,600 Length – 72.17 m. Draught – 5.26 m.
7 crores
2008 PANAMA NEW HOOPER
DWT – 35,000 Length – 171 m. Draught – 7.86 m.
35 crores
Project Information Infrastructure Availability Logistics & Connectivity Gujarat has an extensive outlay of robust physical, social and industrial infrastructure, which makes it an excellent investment destination.
Rail
Road
Gujarat has a total railway length of 5,257 km (8.25% of India) Mumbai-Ahmedabad bullet train project planned with investment of US$16.58b Ahmedabad metro rail project construction to begin in 2015-2016 with US$101.3m budget Govt of Gujarat further plans to invest US$1.65m in regional rail projects
• Gujarat has a wide road network of around 77,030 km. Of these, 95% roads are surfaced, all-weather roads. • In 2015-16 budget, the state government further plans to invest US$8.3m in a fourlane road joining VadodaraAnkleshwar,US$2.7m in construction of expressways and US$81.4m in resurfacing roads
Air
Port
• The state has 18 domestic airports (the highest in any state) and one international airport. • During 2015-16, the Ahmedabad airport handled 67,774 tonnes of freight. Freight traffic at Vadodara and Rajkot measured 966 tonnes and 79 tonnes respectively during April-September, 2015.
• The state has one of the strongest port infrastructures in India, with 42 ports(21% of India’s ports are in Gujarat), including one major port at Kandla and 41 minor ports, along a 1,600 km coastline. • It is the first state in India to take up port privatisation. Gujarat Maritime Board, has developed port privatisation models such as private/joint sector ports, private/captive jetties
Utility Water
Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that aims to serve 75% of Gujarat’s population. • In the state budget for 2015-16, US$83m was allocated for bulk water supply schemes and US$574m was allocated for improving the infrastructure of existing water supply systems •
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Power
Gujarat has 24-hour 3-phase uninterrupted power supply throughout the state, with installed power capacity of 29,293 MW(10.38% of India’s overall power capacity) The state has surplus power to the tune of 2000 MW
Potential collaborations opportunities ►
Key companies offering barging services globally TECLOGISTICS Ltd., PA,USA CIGCO – Camover International Group, Florida, USA SB Marine Pvt. Ltd., Singapore
►
Key companies offering barging services in India ABC India Ltd., Kolkata Agarwal Carriers Corporation of India, Mumbai Parekh Group, Mumbai Lots shipping Ltd., Kochi Shahi shipping Ltd.,Mumbai Sitara shipping Ltd.,Mumbai
►
For collaboration of maritime training U. V. Patel College of Engineering, Kharva (North Gujarat) Anglo Eastern Maritime Training Centre, Mumbai Arya Marine Academy, Mumbai BP Marine Academy, (Two Campus) - Navi Mumbai (Belapur & Panvel) Baba Marine Institute, Thane (Maharashtra)
Bonzer Academy of Maritime Studies, Mumbai Columbus Maritime Training Institute, Thane (Maharashtra) Indian Maritime University, Chennai ►
For training in container handling and related activities OERC Academy, Mumbai
CONCOR Training center, Gurgaon Anglo-Eastern Maritime Training Centre, Mumbai and Delhi Lloyds Maritime Academy, London, UK
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Key Considerations Some key considerations related to container handling and barge operation which should be kept in mind while initiating any such activity are
Precautions in container handling • •
•
Container specification: All containers must clearly and visibly list the minimum basic information about the contents in the container, as prescribed by CCIL. RTG or Crane safety procedures: Cranes and operation of RTG posses a potent threat of safety in the container unloading and storage areas. Safety precautions and procedures by shipping corporation of India and CCIL should be followed. Some International agencies like PEMA (Port Equipment's Manufactures Association) also issues guidelines related to it. Storage of containers: Containers should be unloaded and stored in a place where there is no scope of fire and place is relatively free from corrosive conditions.
Coordination between ships and barges •
•
In the due course of operation, the bigger ship carrying containers can collide with other smaller vessel and can receive severe structural damage and may result in damage to containers onboard and cargo in it. Regulatory risk and chances of human error: The regulatory framework may not address all the ships (of various sizes and capacities), along with that chances of human error is always present, it can be eliminated by setting higher standards of operation.
Some key considerations related to site selection for anchorage ports are
Site selection of anchorage ports •
The site selection for anchorage ports should be temporary. Also, the latest technology and weather prediction techniques must be used to pin point the locations where ships can anchor. In case a huge tanker ship with much bigger hulk enters port of anchorage proper safety procedures should be taken into consideration. If required the location of anchorage port can be shifted to much deeper level.
Operating environment for workforce • •
•
Only trained and experienced workforce should be employed keeping in mind the chances of error and disastrous effect it can have on the marine life. Proper safety equipment's and medical attention should be provided to workforce keeping in mind exposure to the dangerous fumes and possibility of explosion. In most of the companies container handling operation may happen anytime depending upon the arrival of the ship, the workforce should be engaged in shifts so that they work in full consciousness.
Page 16
Project Financials The cost of project here describes the total cost which the private player needs to invest in order to have a efficient service of barge for containers. In this projections the location is near Okha (Kutch).
In order to have efficient operation we assume the operator will have 2 barges with loading capacity of 35,000 DWT and a backup land area for loading and unloading containers.
Capital cost of project Project components & specifications
Cost (INR crore)
Cost of a new crane barge (2 no.’s) (Length – 171 m, Width – 24 m, Draft – 7.86m) Cost of land (for unloading containers) Total land required (4,00,000 + 7,700) sq. mtr Cost of land – INR 500 per sq. mtr
70
20.38
Pre-operative expenses
20
Contingencies
2.2
Cost of machinery (pumps, cables, hooks etc.)
1
Margin money for working capital
2
Total project cost (a)
115.58
Wages and other expenses Project components & specifications
Cost (INR crore)
Upfront fees GMB/annum (includes charges for using the port services)
0.40
Salary and Wages
4
Other expenses
4
Total project cost (b)
Page 17
8.4
►
The total cost of project is estimated at (a) + (b) = 123.98 crores
►
The cost of project comes down by 14% to 106.62 crores, if we use a refurbished 2nd hand jetty.
Approvals & Incentives Approvals Required Industrial approval ►
Registration with Director General of Shipping
►
Registration at Gujarat Maritime Board(GMB) for operating in ports.
Land for project ►
Allotment of plot/shed in Industrial Estate from GIDC
Environment clearance ►
‘No Objection Certificate’ from the Gujarat Pollution Control Board
►
Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Arrangement of power ►
GIDC estates - Zonal office
►
Captive power - Gujarat Energy Transmission Corporation Limited (GETCO)
Incentives by Indian Government and Govt. of Gujarat Key incentives by Govt. of India ►
In the Maritime agenda (2010-2020) an investment of INR 742 billion for capacity development in Gujarat till 2020.
►
Central government has allowed 100% FDI in sectors related to shipping Industry.
►
Government has exempted custom duties and central excise duty levied on bunker fuels, namely IFO 180 CST and IFO 380 CST, used in Indian flag vessels carrying empty and domestic containers between two ports in India.
►
Provision of payment of light dues online makes process easy and reduce detention time of ships.
Key Incentives by Govt. of Gujarat ►
Many projects under single point mooring and LNG terminal development has been planned as greenfield projects.
►
Plans of port city development and SEZ development nearby ports.
►
IPMS compliance at port locations
►
Port mechanization and increased port to port communication.
►
Availabilities of private as well as GMB port jetties.
►
Proposed Ro-pax project which would provide more convenient ways to transfer cargo between Saurashtra and South Gujarat.
Page 18
Gujarat Maritime Board www.gmbports.org
Gujarat Infrastructure Development Board www.gidb.org Industries & Mines Department www.imd-gujarat.gov.in Gujarat Industrial Development Corporation www.gidc.gov.in Office of Industries Commissioner www.ic.gujarat.gov.in Industrial Extension Bureau www.indextb.com
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
‘SAGAR BHAVAN’ Sector 10-A, Gandhinagar - 382010. Gujarat (India) Phone: +91 79 23238346 +91 79 23238347 Fax: +91 79 23234703 Email:
[email protected] www.gmbports.org
