Saturday, March 19, 2016

Make in India - Ports and Shipping





                                                 Picture Source: http://www.maritimeinvest.in/

Updated Information on Various Manufacturing Industries - Opportunities in India

Air Crafts and Airports - Automobiles - Automobile components - Biotechnology
Chemicals  - Construction
Electrical Machinery - Electronic items
Renewable Energy Equipment and Power Projects
Steel


Make in India - Ports and Shipping

Port Building and Capacity Augmentation


Long coastline of 7,517 km and navigable inland waterways of 14,500 km offering immense potential
 for maritime sector development.
150 + projects for investment  identified in Indian maritime sector
Opportunities for investment of USD 19 Billion in Inland Waterway development and USD 50 Billion in Port-led Development under ‘Sagarmala’.

‘Sagarmala’ - New Port Development and Port Modernization
Greenfield major ports at Vadhavan (Maharashtra), Sagar Island (West Bengal),  Paradip Outer Harbour and Potential locations in Andhra Pradesh and Tamil Nadu

Trans-shipment Hubs at Enayam (Tamil Nadu) and Vizhinjam (Kerala)

Port Mordernization:
Increasing draft at Kamarajar (Ennore), Paradip and Mormugao Ports to 18m
500 MMTPA port capacity augmentation in Major Ports by 2025
‘Jal Marg Vikas’ project for capacity augmentation for navigation and shipping in River Ganga: NW-1 (1620 km)
Development of 111 National Waterways
Development of cruise terminals at Mormugao, Chennai, Mumbai, Chennai and Kochi

Ship Building


Market size of shipbuilding expected in 2025 – US$ 25 billion

Market size of shipbuilding at present – US$ 5 billion
http://www.mapsofindia.com/my-india/government/indias-fleet-of-flying-dutchman


March 2016

More Specific Investment Opportunities

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http://www.maritimeinvest.in/   14 to 16 April, 2016 in Mumbai
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PORT MODERNIZATION


India has 12 Major Ports, administered by the Central Government, and around 200 notified Non-Major Ports, administered by the State Governments. In 2014-15, out of the 200 Non-Major Ports, 69 ports were reported to have handled cargo traffic.
(Source: Transport Research Wing, 2015)
The infrastructure sector, particularly the Maritime Sector, is expected to grow significantly with the increase in international and domestic trade volumes. Since about 95% of India's trade by volume is via the maritime route (Source : NTDPC), there is a continuous need to develop India's ports and trade related infrastructure to accelerate growth in the manufacturing industry and to aid the 'Make in India' initiative.

Traffic scenario at Indian ports
The total volume of traffic handled by Indian ports in FY2014–15 was 1052.1 million tons per annum (MTPA), of which 55.25% (581.3 MTPA) of total Traffic, was handled by Major Ports and the remaining 44.75% (470.9 MTPA) of total traffic by Non-Major Ports.

The overall compound annual growth rate (CAGR) of traffic at Indian Ports between FY2005–06 and FY2014–15 was 7.07%, with traffic at Major and Non-Major Ports growing at a CAGR of 3.58% and 13.94%, respectively.

Port Mechanization and Modernization
It is expected that by 2025, the ports will be required to handle a cargo of 2500 MTPA while the current capacity in India is 1500 MTPA. ~100 MTPA of new capacity can come from the modernization of existing ports. Recognizing the same, Indian ports have already embarked on a massive Port Mechanization and Modernization programme in order to become more efficient and remain at par with international benchmarks. Towards this endeavor, there are various investment opportunities to undertake mechanization projects on PPP basis.

Under Sagarmala, three themes have been identified for port modernization:

Mechanisation – Productivity at several berths is held back by the low capacity equipment used. These are mostly old and were designed for the target productivity levels needed at the time of purchase. Most of the old equipment are grossly insufficient to meet the current productivity requirements. In addition, several of these equipment are heavily derated due to lack of proper maintenance. Critical need of higher capacity equipment to replace existing old ones have been identified at several ports including Kandla, Haldia and Tuticorin. Twenty new mobile harbour cranes have been recommended across major ports. Detailed financial analysis reveals that these investments could be beneficial both for the port as well as the stakeholders. Different issues have been identified across the ports for evacuation issues and the solutions have been unique to each port.
Draft enhancement (Dredging) – The drafts at major ports have been historically low in comparison to required draft to match with advancements in size and shapes of the ships. Average draft ranges between 12 and 14 meters, peaking to 18 - 19 meters in some places. Globally, most ports have increased their drafts upto 23 meters to handle new generation container vessels with capacity of more than 15,000 TEUs and super tankers. In order to keep pace with accelerating growth in cargo and container traffic, Indian ports would also increase their drafts to handle supermax vessels.
New Terminal Development – Existing ports are limited by their current infrastructure to handle increased traffic expected to come to Indian shores (Both coastal and EXIM) in the next 10 years. There is a potential to increase the capacity at existing ports by building new terminals and berths. Coastal berth to handle food grains and fertilizers in Kandla is one such example.
Potential Projects
Mechanization

Improvement of gate processing (at Chennai, JNPT)
Improvement of rake turnaround time (in KDS)
Multiple advanced technology based solutions like RFID and OCR based gate processing, etc. have been recommended across the ports. Of these, implementation of several of initiatives is underway.
Draft enhancement (Dredging)

Increasing the draft at Ennore and Paradip from 16 to 18 m
New Terminal Development

Edible oil terminal in Kochi
Uran multipurpose cargo terminal
Nhava creek coastal cargo terminal
Ro Ro berths for handling automobile exports at Kandla

http://www.maritimeinvest.in/port-modernization

New Port Development


It is expected that by 2025, the ports will be required to handle a cargo of 2500 MTPA while the current port capacity in India is 1500 MTPA. According to estimates, significant capacity expansion will have to come from new ports.

There are broadly three main levers that propel the need for building new ports:

Capacity Saturation – Ports such as JNPT, Paradip have limited capacity to expand and are saturated with traffic. Hence it makes sense to build new ports in the vicinity to cater to the increased traffic
Non-availability of Ports – There are few specific stretches along the coastline which do not have an operational port. In absence of the port at such locations, the cargo is forced to travel longer distances to use alternate ports. This adds both to the cost and time required for cargo handling. New ports built at these locations can significantly optimize cargo movement.
Strategic Locations – The southern tip of India is optimally located as it falls under the East-West trade route. However most of transshipment cargo from India is dependent on ports of Colombo and Singapore. There exists a potential for development of an International transshipment hub at the southern tip.
Potential Project
New port locations have been identified based on the cargo flow for key commodities and the projected traffic:

Greenfield major ports to be developed at Vadhavan (Maharashtra), Sagar Island (West Bengal), Paradip Satellite Port (Odhisha), Cuddalore/Sirkazhi (Tamil Nadu) and Machilipatnam/Vodarevu
International Container Transhipment hub at Enayam (Tamil Nadu) and Vizhinjam (Kerala)
http://www.maritimeinvest.in/new-port-development


Inland Waterways


Economic viability of a waterway to carry traffic as an alternative to rail and road depends on its length which should be a minimum 500 km and 250 km for both cases respectively. Apart from this, it should have a large hinterland coverage area and potential in order to generate enough traffic on routes.

National highways 1, 2, 4 and 5 can be developed to play an important role in transportation.

Key Initiatives
Development of NW5 - The significance of NW5 lies in its location close to Talcher-Paradip region which is abundant in resources and industries and therefore provide opportunities for evacuation of different commodities including thermal coal, coking coal and iron-ore. Financial considerations in terms of revenue and expenditure for both the barge owners and IWAI present a strong case for moving cargo on NW5 after relevant infrastructural improvements. A number of steps in terms of infrastructural projects are required to be undertaken to make the project feasible. These include dredging to ensure minimum draft of 2.5-3 m and ensuring channel width of 55-60 m. Other steps include building atleast 5 barrages or navigational locks and a barge jetty/terminal at Paradip, Talcher and Kalinganagar.
Development of NW4 - This waterway which connects the upcoming capital of Amaravati to the coastal parts of the state is extremely important for the development of new industrial hinterlands proposed under the various nodes of Visakhapatnam Chennai Industrial Corridor. The stretch will have a potential to transport 3-5 MTPA of bulk commodities by 2020.
Development of NW2 - This waterway, stretching for a distance of 891 km from Dhubri to Sadiya, has immense potential to cater to the traffic in the north eastern region of the country. Basic commodities like foodgrains, fertilizers, etc. can be transported through the route.
Development of NW1 - With a length of 1620 km, NW1 is the longest waterway in India. It is a stretch of the Ganga-Bhagirathi-Hoogly river system from Allahabad to Haldia. Key opportunities lie in 11 major power plants being located on the banks of NW1 with a cumulative capacity of 12,000 MW as well as multiple chemical and food exporters in UP and West Bengal.
http://www.maritimeinvest.in/inland-waterways

January 2016

A Success Story in Indian Shipping - Vision 2020 - Story
http://yourstory.com/2015/10/international-shipping/



Dec 2015

India’s Union Minister for Road Transport and Highways and Shipping, Mr Nitin Gadkari unveiled plans worth Rs 10 trillion (US$ 150 billion) in the highway and shipping sectors by 2019.
http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/361/2


Septeamber 2015
Government wants to promote coastal shipping
http://indianexpress.com/article/india/india-others/coastal-shipping-a-much-needed-boost/

April 2015
http://www.thehindubusinessline.com/news/national/make-in-india-initiative-will-open-up-many-opportunities-in-shipping-sector/article7113811.ece


2014
Insights in India's Maritime Trade
KPMG Report
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPMG_All_Aboard_Insights_into_India_maritime_community.pdf

2013
Planning Commission Report on Ports and Shipping
http://planningcommission.nic.in/sectors/NTDPC/voulme3_p2/ports_v3_p2.pdf

2010
Investing in Indian Transportation and Logistics Industry
https://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/Final_with_CII.pdf


Transport and Logistics 2030
Delphi Study
https://www.pwc.ch/user_content/editor/files/publ_trans/pwc_transportation_logistics_2030_vol3.pdf


2007
The Indian Shipbuilding Industry has demonstrated aspirations to acquire a 7.5 percent share in global ship building by 2017, which is expected to have a size of above 500 mn DWT. Analysis suggest that this would require Indian shipbuilders to invest close to INR 200 Bn in new yard
capacity, which interestingly, is the current level of cumulative investment declared by various entrants in this sector.
https://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/Indian%20Shipbuilding%20Industry-%20Poised%20for%20Take%20off.pdf


2006
http://www.in.kpmg.com/pdf/Shipping_Report.pdf

Updated  19 Mar 2016,  13 March 2016, 8 Jan 2016, 3 July 2015





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