JNPT Final Volume1v2

PORTS AND SHIPPING
JNPT Business Plan -

Final Report
Volume 1
ADVISORY
© 2006 KPMG Advisory Services Private Limited, an Indian private limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
0
Introduction
The real growth that Indian GDP has (greater than As part of the third milestone of the planning exercise, we
7.5% in 2005) is reflected in its international trade and had submitted the draft final report, which included an
consequently in the traffic growth that ports have been introduction to the port, its connectivity and competitive
witnessing over the past few years. This trend in position. A detailed set of traffic forecasts are used to
growth is expected to continue, with international trade identify the vision, goals and strategy for the port. It also
expected to grow at a rate even higher than at present. identifies a plan of action to achieve these goals both at
an overall level as well as for individual projects. Based on
The ability of Indian port infrastructure to meet these
these action plans and projects, a detailed set of financials
increasing demands will be critical to the growth of the
had been developed for the business plan including
economy. In this context, it has been recognized that a
investment outlay , profit and loss account, balance sheet
national plan needs to be developed which would
and cash flows.
identify in a structured manner, the required
investments in port and related infrastructure, while at Inputs were provided by the Port of Rotterdam, the Indian
the same time reducing dependence on government ports association and JNPT, which have been taken into
funds. In order to meet this objective, the planning account. The draft final report was appropriately revised
commission and the ministry of shipping, road transport and the same is now being submitted as the final report.
and highways has initiated this business planning This marks the conclusion of KPMG’s involvement in the
exercise for major ports. business planning exercise for JNPT.
JNPT has an important place amongst Indian ports due The final report contains two volumes (Vol 1 & 2). Volume
to the kind of traffic that it serves as well as being a 1 contains chapters 1-7 with volume 2 having chapters 7-
pioneer in involving large-scale private sector 14.
participation. It is also one of the first ports to initiate
this exercise. The KPMG consortium is glad to be
associated with JNPT in this important activity.
As part of the business planning exercise, which is
being coordinated by the IPA and the Port of
Rotterdam, the first and second milestones were the
development of the inception and interim report. The
same were submitted to the port.
1
Table of Contents
Section Page Section Page

Topic Topic
No. No. No. No.
Volume I of report Volume I of report
Executive Summary 3 5 Trade & Traffic forecasts 146
1 General Port description 36 5.0 Traffic projections – introduction 147
1.1 General description 37 5.1 Container traffic projections 149

5.2 Liquid traffic projections 167
1.2 JNPT Organization & staffing 48
5.3 Vessel forecast 196
2 Hinterland connectivity 55
Internal infrastructure assessment
2.0 Introduction 56 6 203
and project identification
2.1 Rail connectivity 58 6.1 Internal infrastructure requirements 204
2.2 Road connectivity 66 6.2 Identified projects 234
2.3 Intermodal facilities 70 7 External connectivity requirements 246
3 Competitive position 72
3.1 Competitive position 73
3.2 Captive and non-captive market 78
3.3 Unique selling proposition 80
4 Vision, Goals and Strategy 86
4.1 Development of JNPT Vision 87
4.2 Identification of goals 115
4.3 Strategy to achieve goals 130

2
Executive Summary
• Other value added opportunities
The business plan for JNPT consisted of 3 phases
An analysis of potential cargo types for export import
• Inception stage – “As-is” assessment of the port (EXIM) traffic on the basis of two parameters, market
• Interim stage – Traffic forecast, vision development & attractiveness and alignment to capabilities, indicated that
projects container and liquid cargo were attractive opportunities
worth pursuing (Exhibit i).
• Draft final stage – Action plan and financial model
On analyzing the coastal trans-shipment opportunity, it
The as-is assessment identified general port operations, was found that certain factors impacted its attractiveness,
hinterland connectivity and competitive position. including distances from major shipping routes, other
Vision Development competing ports being developed and draft. As a result,
the port could look at this option opportunistically rather
Following the as-is assessment, the vision of the port than as a key focus area. Aligned to the export import
was developed. The first step was an understanding of traffic focus, other potential value added services were
the business environment of JNPT. Constraints and examined which could strengthen JNPT's positioning.
drivers of change in the environment were identified as Potential value added opportunities taken up for
part of this exercise. An important constraint that assessment included distribution, logistics and free trade
emerged was the limited space for terminal side areas. An opportunity assessment for JNPT was
expansion at the current location .This understanding of conducted by analyzing opportunities based on four key
the business environment was used as the basis to parameters -
identify strengths, weaknesses, opportunities and
threats for JNPT. Key strengths that emerged for JNPT • Strength/Weakness of port with respect to the
were the frequency of services, available port opportunity
infrastructure and strong financial position. Weaknesses • Revenue potential
at JNPT include distance from major shipping routes,
limited draft and shortage of staff in key areas. The most • Growth potential
significant threat for JNPT is the increasing pressure on • Sustainability/ Stability of revenues
road and rail connectivity. Other threats for JNPT
include developments by private competitors. In the opportunity landscape for JNPT, export-import
container traffic, free trade zone, distribution/logistics
For the purpose of assessing opportunities, they were emerged as attractive opportunities. In addition, Ro-Ro
divided into 3 broad categories- could be a potential opportunity area for the port, which it
• Opportunities in export-import traffic (where the origin or could pursue opportunistically. Based on the assessment
destination is within JNPT's hinterland) as well as the SWOT analysis, the vision was developed
through a visioning workshop carried out with port
• Opportunities from trans-shipment and stakeholders as outlined in Exhibit ii.
3
Executive Summary
Exhibit i : Evaluation of Export import cargo opportunities
High
z Container
Alignment to capabilities
z Crude & POL

product
Medium
z Cruise z Chemicals &

other liquids
z RO-RO
z Dry Bulk
Low
z Break Bulk z Coal

z LNG
Enter/ Build the

Low Medium High opportunity
Re Evaluate
Market attractiveness (incl. Growth and Stability) and decide
Do not enter
the opportunity
4
Executive Summary
Exhibit ii : Vision and Elements of Vision for JNPT
“To be recognized as India's premier container port providing integrated

logistics services to the best interest of trade and customers”
Focus Cargo • Container

types • National Export Import Trade
• Logistics
Value Added • EPZ (Export processing zone)
Services • Warehousing
• Involvement in hinterland connectivity ventures
• Creation of value for customers through value added services

• Enabling Indian trade through JNPT, efficiently and smoothly
Other Guiding • Ensuring safety and security at the port and development in the area
principles around the port
• Expanding capacity and upgrading equipment in line with customer
requirements
Other Cargos • Coastal and regional transhipment

• Ro-Ro
Serviced • Liquid
5
Executive Summary
Goals and Strategy
Development of action plans for the port requires the PERSPECTIVE PLAN
vision to be cascaded to a set of actionable goals with a
timeframe attached to them. Goals were identified through Trends Capability
an analysis of various elements of the vision. JNPT would Vision
need to undertake multiple goals to achieve its vision. The Forecasts SWOT
goals that were identified for the port are illustrated
below:–
Barriers Goals Dev needs
z Achievement of 10Mn TEUs of traffic at JNPT
z Improve efficiency across the port
z To develop logistics capabilities and services at JNPT
z To expand JNPT to new locations Long Term Goals
z Invest into hinterland connectivity ventures
Timeframe for Goals
Goals need to be prioritized to ensure planned Strategy Short Term Goals
development at a port. Prioritization of goals also provides
timeframes within which the goals should be achieved. To
ascertain the timeframe of the goals, KPMG followed a
framework of “ease of implementation vs. criticality”, which
was used to evaluate the goals. Based on this framework Action Plan
long and short term goals were identified as seen in
exhibit ii.
Role of the Port Operation Plan
It is envisaged that the port will increasingly play the role

of a landlord with limited presence in port terminal
operations (JNPCT). JNPT will evolve primarily into a Project 1 Project 2…
landlord port facilitating services by terminal operating
companies and other providers. The solitary terminal will
be the responsibility of JNPT over the medium term ACTION PLAN
horizon of the plan period
6
Executive Summary
Exhibit iii : Framework to identify long and short term goals

Low
Long Term
Expand into
new locations
Ease of implementation
Invest in rail
freight
business
Achievement of
10Mn TEUs of
traffic at JNPT
To develop logistics
capabilities and
services at JNPT
Improve
efficiency
across the port
Short Term
High Criticality
7
Executive Summary
• Financial Strategy: The financial strategy of the port
As part of the business plan development exercise an focuses on utilization of financial resources of the port. It
action plan for the port was developed for the next 7-8 delineates the sources of finance and expected costs. The
years. This action plan was based on the short term goals likely financing options for various types of projects in
identified – alignment with the guiding principles are indicated in exhibit
• Reaching 10Mn TEUs of traffic at JNPT by 2015-16 iii.
• To offer logistic services at JNPT by 2011-12
Exhibit iii : Project Financing Options
• To improve efficiency in port operations by 2009-10
Strategy to achieve goals Sr Type of Likely Approx. cost
A strategy to achieve the goals was outlined focussing on No. Projects Source of of capital
the following elements – Finance
• Cost: JNPT would endeavour to reduce costs by 1 Common user Combination of 9-10% (exact
improving efficiency and thereby ensure competitive infrastructure- reserves and cost dependant
services for user. Dredging, internal surplus as on % of
• Customers: JNPT would attract and retain roads and vessel well as bank finance from
customers through addition of core and value added handling loans, each source),
Reserves and Opportunity
services.
surplus cost of capital
• Geographies: JNPT would focus on the northern
and Maharashtra region and would enable traffic 2 Equipment / Reserves and Opportunity
from the regions through planned development expense for JN Surplus cost of capital
Port owned
within and nearby the port.
container terminal
• Services: JNPT would provide value added services (JNPCT)
and would capture a larger share of the logistics
value chain. 3 Construction and Public private Cost of capital
operation of partnerships ~13% for a 10
The strategy for achieving the goals would need to be terminals, such as BOT year loan with
supported by a financial and commercial strategy. logistics, D/E ratio of 1
distribution and and 100 basis
• Commercial Strategy: The commercial strategy warehousing points over
deals with the three levers of customer facilities, free Zero coupon
management, cost management and service trade zones
offerings of the port. It is aimed at achieving
4 Critical external Partnership Dependant on
commercial success within the operating business
road/railway Finance financing
environment through effective management of connections arrangement
customers and suppliers.
Contd.8
Executive Summary
Trade and Traffic forecasts

In line with the vision, KPMG analyzed global trends, The additional factors considered for assessing the share
Indian macroeconomic trends, various industry trends to were-
arrive at the traffic projections for liquid and container a.Future plans of competitors
traffic in India. Using a bottom up approach, national traffic
projections and JNPT specific traffic projections were b.Current trends in ICD traffic indicating loss/share of
obtained, which were used a base to arrive at an traffic from regions with respect to JNPT
integrated port development plan. The proportion of traffic estimated to arrive at JNPT from
KPMG applied a bottom up approach that mapped the various regions was arrived at using the gravity
major industries to locations of consumption and assessment model and discussion with port users. This
production to arrive at current state level exports and was aggregated to assess future traffic potential at JNPT
import volumes across industries. In order to estimate the The container traffic potential for the region around JNPT
future container traffic potential, key industries from a is expected to be around 25 Mn TEUs by 2026-27 as
container perspective were analyzed through secondary shown in exhibit v. However, JNPT faces expansion
research to arrive at future growth rates for the industry. constraints and therefore the traffic potential at JNPT is
These were further adjusted to take into account regional limited by the realistic estimate of an overall capacity
variations based on known plans, e.g. impact of approved (under the current geographical and policy restrictions) at
SEZs. The estimated future traffic across industries and JNPT. The overall capacity (under the current
regions was aggregated to arrive at the future national geographical and policy restrictions) for JNPT is
traffic potential. estimated to be around 10.90 Mn TEUs by 2016-17 at
National level container traffic projections using this 70% occupancy. This may indicate the requirement of an
approach in 2026-27 are 71 million TEUs. This compares additional port in Maharashtra to satisfy the potential traffic
well with the GDP based projection of 85 million TEUs as in the larger hinterland.
seen in exhibit iv.
In addition to the industry and state wise traffic
projections, JNPT's traffic projections also incorporated a
qualitative gravity assessment model to estimate share of
traffic from various hinterland regions for JNPT. This was
primarily done to assess the impact of competition on
JNPT's traffic.
9
Executive Summary
Exhibit iv : National Container Traffic Projections using bottom up approach
90.00
Projected GDP Projected Bottom Up

85.529
80.00
75.88
71.66
70.00
67.32
66.01
60.00 59.728 60.81
52.993 56.02
51.62
50.00 47.56
43.83
47.019
38.50
40.00 41.719
35.00
31.22 37.018
30.00 27.77 32.85

24.69 29.15
21.85
25.28
18.79
20.00 21.92
16.17
13.86 19.01
11.89 16.49
10.16
8.45 14.30
10.00 7.02 12.41
5.84 10.77
4.87
9.17
7.84
6.67
4.81 5.67
Mn TEUs
0.00
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
10
Executive Summary
Exhibit v : JNPTs Container traffic projections
30.00
25.45
25.00
24.21
22.70
21.29
19.98
20.00 18.76
17.63
16.32
14.65
15.00 13.34
Mn TEUs
12.11
11.00
9.95
10.00 8.75
7.70 10.90 Million TEU’s
6.75
5.93
5.19
4.43
5.00 3.77
2.68 3.22
0.00
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
Capacity of the port would be 11.67 Million TEUs at 75% berth occupancy in 2015-16 and 2016-17. At
70% berth occupancy the overall capacity (under the current geographical and policy restrictions) of the
port would be 10.9 Million TEUs by 2015-16.
11
Executive Summary
As liquid cargo handled by ports consists of products

Exhibit vi : Liquid Traffic at JNPT
from various industries, the key industries impacting
growth of liquid cargo were studied. The forecast for
the traffic was arrived at 2 levels 20
a. National level forecasts for the commodity 15
MTPA
15.39
13.53 13.95
b. JNPT forecasts for the commodity 10 13.14
10.42
JNPT liquid cargo traffic was estimated for the 5 7.76
3.51
categories of crude, POL product, chemicals and 0 3.26
other liquids. JNPT has no crude linkages with
2005- 2006- 2011- 2016- 2021- 2022- 2023- 2024-
existing refineries and does not service crude traffic
06 07 12 17 22 23 24 25
at present. The crude traffic forecast for JNPT was
based on ONGC plans to ship a part of its offshore
crude production at Bombay High via JNPT to the
coastal refinery of Mangalore. JNPT POL product
traffic is largely coastal based traffic which follows
national trends of coastal traffic. Exports growth from
the increase in refining capacity in Mumbai region
was factored into the forecast. Since the port can
handle certain liquid chemicals these were studied
and grown at appropriate growth rates to arrive at
liquid chemical forecast. JNPT's edible oil/molasses
traffic is a significant portion of national traffic and this
traffic is expected to continue.
The overall forecast of liquid traffic through JNPT
reaches 15.4 Mn tonnes by 2024-25 as seen in
exhibit vi.
12
Executive Summary
Vessel forecasts Exhibit vii : Future Vessel Calls at JNPT

Using the traffic projections for container and Container Liquid Vessel Total
liquid cargo, a vessel forecast was carried out Year
Vessel Calls Calls vessel calls
for JNPT. A number of factors impacted this
forecast, including the change in profile of ships 2006-07 2441 327 2768
on the Europe Asia route as well as the gradual 2007-08 2714 364 3078
increase expected in parcel sizes. The expected
vessel calls at JNPT are tabulated in exhibit viii. 2008-09 3023 376 3399
As seen the number of vessel calls at JNPT 2009-10 3367 387 3754
reach a peak of 5734 vessels in 2015-16 and 2010-11 3647 398 4045
then start gradually decreasing. This is largely
due to the expected continued increase in 2011-12 3941 467 4408
parcel sizes. 2012-13 4266 480 4746
2013-14 4601 485 5086
2014-15 4969 490 5459
2015-16 5214 520 5734
2016-17 4949 524 5473
2017-18 4697 529 5226
2018-19 4458 534 4992
2019-20 4231 540 4771
2020-21 4016 567 4583
2021-22 3812 572 4384
2022-23 3618 578 4196
2023-24 3434 584 4018
2024-25 3259 609 3868
2025-26 3093 630 3723
2026-27 2936 652 3588
13
Executive Summary
Identification of projects through an integrated
capacity assessment Model
• Hinterland Capacity Assessment – This module
As traffic at JNPT increases, various elements across assessed the capacity requirement that will arise due to
the chain of a port might act as constraints. These increasing traffic on road and rail infrastructure
constraints could be in the area of wharf capacity, • Capacity Assessment for other opportunities: This
terminal capacity, hinterland connectivity, sea side included assessment of infrastructure requirements for
infrastructure or other supporting infrastructure. KPMG pursuing other related opportunities like FTZ,SEZ etc
developed an integrated capacity assessment model The various projects identified through the capacity
that, on the basis of traffic projections, evaluated model were integrated in the form of an overall master
constraints that might arise at various points of time plan covering the development of
across the ports processes from terminal capacity to
− Terminals
hinterland connectivity and indicated projects that need
to be undertaken to overcome the constraints. − Related infrastructure
Broadly the capacity assessment model examined − Hinterland connectivity
capacity through the following modules − Related projects
• Container Handling Capacity assessment: This A chronological snapshot of evolution of JNPT till 2020-
included assessment of capacity available 21 has been described through maps (exhibit viii-xi) over
across various equipments, infrastructure and the next few pages. It is important to note that the years
land availability to arrive at the capacity gaps indicated are for completion of projects and not for their
which JNPT is likely to face in the handling of initiation.
containers in the future.
The projects identified were assessed to identify land
• Liquid Handling capacity Assessment: This requirements and to develop a land use plan for the
included assessment of capacity available port. Currently the port has 1200 hectares of
across various equipments, infrastructure and developable land of which 670 Hectares is available for
land availability to arrive at the capacity gaps expansion as operational land. As per the projects
which JNPT is likely to face in handling of liquid identified the port would require 546 hectares of land for
cargo in the future. short to medium term development of
• Sea Side Capacity Assessment – This module CFS,EPZ/FTZ(Free Trade Zone) and other supporting
assessed the capacity requirement that will arise infrastructure. The remaining land of 124 hectares would
due to increasing traffic in the future for sea side be required for future expansion opportunities. The land
infrastructure and processes usage has been indicated in a map in exhibit xii.
14
RMQC moves
RMQC moves
increased to
increased to 24/hr
24/hr 330 M extension Exhibit viii : JNPT
(2009-10)
(2009-10) (2008-09)
developments between 2006-
07 and 2009-10
Two tugs and seven
Conversion of
pilots (2007-08)
railway tracks to fully Additional Link
operational railway Road (2009-10)
Three pilots and two EPZ (2009-10)
sidings (2006-07)
launches
(2008-09)
SH54 4-laning
Dredging Phase 1
(2007-08)
(2009-10)
GTI to be fully
operational (2006-
07)
Shallow berth moves

increased to 16
moves/hr (2008-09)
Evacuation
(EPZ) Road
(2009-10)
Common user
pipeline creation
(2007-08)
Empties yard 50
hectares (2008-09)
Dronagiri
Link road
(2009-10) Grade Seperators at
Karal and Gwaan
32 Hectares of CFS
Phata (2008-09) U:\Admin\975\SCI ADMIN 15
land (2007-08) Land already
Not to scale ONLY\Graphics\Graphics occupied
Admin\Templates\Templates\KPM
4th Terminal Ph 1 &
BPCL Relocation Exhibit ix : JNPT developments
2010-11 between 2010-11 and 2012-13
3 tugs and 5 pilots
(2010-11)
6 Laning of NH 4B
(2010-11)
2 pilot launches
(2011-12)
Additional Road Linking
Port to highway
3 pilots (2012-13)
(2010-11)
MCT Phase 1
(2011-12)
Construction of
emergency berth
(2011-12)
Road for 4th
Container
Terminal
(2010-11)
Rail ICD 4th Terminal
(2010-11) 40 Hectares of
Link to 4th Empties yard (2012-
container 13)
terminal
(2010-11)
Sorting Yard
56
56Hectares
HectaresCFS
CFS (2011-12)
U:\Admin\975\SCI ADMIN (2012-13)
(2012-13)
16
Land already
4th Terminal Ph 2
(2014-15) RMGC Moves increased Exhibit x : JNPT
to 20/hr (2013-14)
1 launch,1 tug and 14 and 2015-16
1 pilot (2015-16)
2 tugs and 3 pilots Additional Railway track

(2013-14) (2014-15)
Dredging Phase 2
(2015-16)
Rail ICD for 4th Terminal Ph

2 (2014-15)
Gate Capacity
(2013-14)
Empties 28 hectares
(2015-16)
CFS 49 Hectares
(2015-16)
U:\Admin\975\SCI ADMIN 17
Land already
Exhibit xi : JNPT
17 and 2020-21
Connection to
Additional Link road
(2017-18)
Marine Berth
(2020-21)
Addition of 3
RMGCS (2016-17)
POL tankage construction

(2018-19)
Land already
Not to scale
Exhibit xii : Proposed land
usage for port operational area
of 670 hectares
Land Available 670 Hectares

Used for CFS 137 Hectares
Used for Empty 118 Hectares
container yards
Used for EPZ 200 Hectares
Total used 455 Hectares
Common User & 91 Hectares
Other Infra @ 20%
CFS
Available Land 124 Hectares *
Empty
* This land can be used for EPZ/FTZ container
expansion, Ro-Ro yard and activities such U:\Admin\975\SCI ADMIN yard 19
as parking etc that the port may require. Land already
ONLY\Graphics\Graphics occupied EPZ
Executive Summary
Classification of identified projects

Major projects to be undertaken via client related
The capacity assessment model identified an integrated master investments are
plan for the port. The master plan includes various projects that
• Construction of 1st phase of 4th container
the port has to undertake to service the expected traffic
terminal (2010-11)
potential. These projects can broadly be classified into three
major categories • Relocation of BPCL jetty to new marine
chemical terminal (2010-11)
• Client Related Investment Projects: This would include
projects that would be funded through investments made • Addition of a 300 metre berth for handling
by private players. The mode of financing these projects liquid cargo(2011-12)
would primarily be a BOT arrangement wherein the
• Construction of 2nd phase of 4th container
private player would share revenue with JNPT.
terminal (2014-15)
• Planned public investment projects: This would
Major projects to be undertaken via public
include projects that would be financed by JNPT and/or
investments are
by public agencies. The mode of finance for these
projects could be directly by public agencies. • Development of an additional road linking the
Alternatively an SPV could be formed by the port and port to highways (2009-10)
other agencies or through the port internal resources.
• Dredging to enable fully loaded 6000 TEU
• Planned organizational improvement projects: This ships and 7500 TEUs partially laden ships
would include process improvement projects that would during tidal window (2009-10)
be financed by JNPT. The financing for such projects
• Increase in RMQC moves at JNPT to 24
would be done through internal resources of the port or
moves per hour (2009-10)
through debts taken from banks.
Major organizational improvements to be undertaken
A listing of all projects identified within each of the above
are
mentioned categories along with their mode of coverage is
provided in exhibit xiii-xv. Some of these projects have been • Automation between gate and terminal
covered in detail in the report while summary information for operators(2009-10)
the others has been provided.. Taking a long term view projects
• Development of Maintenance Service level
have been identified beyond the 7 year action plan period of
agreement for roads (2013-14)
2014-15 and these have been highlighted in blue.
20
Executive Summary
Exhibit xiii : Client Related Investments
Section
Year Project Mode of Financing Level of Detail
No.
2006-07 GTI to be made fully operational BOT Summary Coverage 8.1.1
BOT (infrastructure by
Development of 32 Hectares of land
2007-08 port, development by Summary Coverage 8.1.2
for CFS operations
pvt. Operator)
8.1.3
2008-09 330 m Extension of berth BOT Detailed Coverage
BOT (infrastructure by 8.1.4

2008-09 port, development by Summary Coverage
for empties operations
pvt. Operator)
2009-10 EPZ setup on port land BOT Detailed Coverage 8.1.5
Development of 4th Container
2010-11 BOT Detailed Coverage 8.1.6
Terminal
Summary Coverage
Development of Rail terminal for the
2010-11 BOT (within 4th container 8.1.6
4th terminal phase one
terminal)
Summary Coverage
Additional road to be constructed for
4th container terminal
terminal)
Summary Coverage
2010-11 BPCL Relocation to new terminal BOT (within 4th container 8.1.6
terminal)
Marine Chemical Terminal - 1 new Detailed coverage
2011- 12 BOT 8.1.7
berth of 300 m
2012-13 port, development by Detailed Coverage 8.1.8
pvt. Operator)
21
Executive Summary
Exhibit xiii : Client Related Investments (contd.)
Section
No.
2012-13 port, development by pvt. Summary Coverage 8.1.9
for CFS operations
Operator)
Terminal – 2nd phase
Summary Coverage
Development of Rail terminal for the
terminal phase 2)
2015-16 port, development by pvt. Summary Coverage 8.1.11
for CFS operations
Operator)
2015-16 port, development by pvt. Detailed Coverage 8.1.12
Operator)
Reduce average POL tankage dwell BOT
2018-19 Summary Coverage 8.1.13
time to 25 days
Reduce pigging hours by 1 for each
2019-20 BOT (existing player) Summary Coverage 8.1.14
product
Marine Chemical Terminal - 1 new
2020-21 BOT Summary Coverage 8.1.15
berth of 300 m
Reduce average POL tankage dwell
time to 20 days
Reduce average chemical tankage
dwell time to 25 days
22
Executive Summary
Exhibit xiv : Planned Public Investments
Year Project Mode of Financing Level of Detail Section No.
Conversion of one of the tracks to full

2006-07 Port Investment Summary Coverage 9.1.4
operational railway siding.
2007-08 Hiring of two tugs Port Investment Summary Coverage 9.1.2
Port Investment/
2007-08 Additional pipelines for select products Detailed coverage 9.1.5
BOT financing
SH54 to be converted to a four lane
2007-08 SPV Summary Coverage 9.1.6
road
9.1.1 and
2008-09 Hiring of 2 tugs and 2 pilots Port Investment Summary Coverage
9.1.2
Grade separators to improve the
2008-09 efficiency of the approach road to the SPV Summary Coverage 9.1.7
port
Increase shallow berth moves to 16
moves per hour
Development of an additional road
2009-10 Public Investment Detailed Coverage 9.1.9
linking the port to highways
Additional Evacuation road (EPZ
Road)
2009-10 Dronagiri Link road Port Investment Summary Coverage 9.1.11
Dredging to enable fully loaded 6000

TEU ships and 7500 TEUs partially
laden ships during tidal window,
channel deepened upto 12.5 m
23
Executive Summary
Exhibit xiv : Planned Public Investments (contd.)
Mode of Section
Year Project Level of Detail
Financing No.
Increase RMQC moves at JNPT to 24 Port Summary
2009-10 9.1.13
moves per hour Investment Coverage
Summary 9.1.1 &
2010-11 Hiring of 3 tugs and hiring of 2 pilots Port Investment
Coverage 9.1.2
Summary
2010-11 Six Laning of NH4B SPV 9.1.14
Coverage
Summary
2010-11 Additional road linking port and highways Port Investment 9.1.15
Coverage
Summary
2010-11 4th container terminal link Port Investment 9.1.17
Coverage
Reduce non discharging hours per vessel
2010-11 Port Investment Detailed coverage 9.1.17
from 6 hrs to 4 hrs
2011-12 Creation of emergency berth Port Investment Detailed coverage 9.1.24
Summary
2011-12 Hiring of 2 pilot launches Port Investment 9.1.3
Coverage
Sorting Yard to Reduce Mixed trains and
2011-12 development of processes and systems Port Investment Detailed Coverage 9.1.18
between the port and the sorting yard
Summary
2012-13 Hiring of two pilots Port Investment 9.1.2
Coverage
24
Executive Summary
Exhibit xiv : Planned Public Investments (contd.)
Mode of Section
Year Project Level of Detail
Financing No.
Increase in productivity of
Port
2013-14 RMGCs by increasing the moves Summary Coverage 9.1.19
Investment
per hour
Port 9.1.1 &
2013-14 Hiring of two tugs and two pilots Summary coverage
Investment 9.1.2
New rail track to be laid outside Public
2014-15 Detailed Coverage 9.1.20
the port Investment
Dredging to enable fully loaded
Port
2015-16 6000 TEU ships at all times, Summary Coverage 9.1.21
Investment
channel deepened upto 14 m
Increase RMGC Capacity Port

through addition of RMGCs Investment
Road to be constructed to
Port
2017-18 connect the Aamra Marg link Summary Coverage 9.1.23
Investment
road to the port
25
Executive Summary
Exhibit xv : Organizational Improvement project
Mode of Level of Section

Year Project
Financing Detail No.
Strengthening of the marketing Detailed
2009-10 Port Investment 10.1.1
Department coverage
Strengthening of project Detailed
2009-10 Port investment 10.1.6
management capabilities coverage
Automation between gate and Detailed
terminal operators Coverage
Training for double moves Detailed
(twin lift) Coverage
Detailed
2011-12 Training for managerial staff Port Investment 10.1.3
Coverage
Automation between sorting Summary
yard and port operators Coverage
Development of Maintenance Summary
SLAs for the roads Coverage
26
Executive Summary
Plan of action to implement Strategy Investment plan

A detailed plan of action was developed to implement the Based on the identification of projects and action plan, a
strategy for the port over the next 7 years (between 2007- detailed set of projects were identified for JNPT through
08 and 2014-15). The action plan attempts to cover the the means of an capacity assessment model. The total
set of projects/ initiatives to be undertaken by the port in investment outlay for these projects is expected to be
the plan period across the following areas - approximately Rs. 14556 crores by 2017-18. Of this JNPT
would need to invest approximately Rs 4530 crores
z Creation of new infrastructure
through its own resources as identified through the
z Efficiency improvement business plan. The investment figure of Rs 14556 crores
also includes Rs 1398 crore of investment identified as
z Organizational improvements
part of XI 5 year plan. The investment outlay each likely
The major aspects covered in action plan were as follows source of finance is indicated in exhibit xix.
z Time Lines: An estimate of the timeframe of each
project
z Dependencies: Indicates linkages and
dependencies between projects highlighting need
for focus on parallel development where needed
z Critical success factors: This highlights key
elements need to be addressed to ensure success
of the strategies. It consists of factors which are
within/beyond the control of the port
z An overall implementation schedule for the various
projects has been outlined for the 3 categories of
projects in exhibit xvi, xvii, and xviii. Individual plans
have also been developed for each of the projects
in Section 14.
27
Action Executive Summary
Plan
Exhibit xvi : Overall implementation schedule for infrastructure creation projects
Capacity
Creation
Infrastucture Creation project Apr-Sep 2007 Oct-Mar 2008 Apr-Sep 2008 Oct-Mar 2009 Apr-Sep 2009 Oct-Mar 2010 Apr-Sep 2010 Oct-Mar 2011
32 hectares of CFS
Efficiency Common user pipelines

improvement
330 m extension
Grade separators
Org
Improvements 50 Hectares of empty yards
Free trade zone
Additional link road via Belpada
Additional evacuation road
Dredging first phase
Dronagiri Link road
Fourth terminal phase 1
Road linking port and highway
Link to 4th container terminal
Six laning NH4b
Dependencies Timeline Projects already under implementation
28
Executive Summary
Exhibit xvi : Overall implementation schedule for infrastructure creation projects
Infrastucture Creation project Apr-Sep 2008 Oct-Mar 2009 Apr-Sep 2009 Oct-Mar 2010 Apr-Sep 2010 Oct-Mar 2011 Apr-Sep 2011 Oct-Mar 2012 Apr-Sep 2012 Oct-Mar 2013 Apr- Sep 2013 Oct-Mar 2014
Sorting yard
Marine chemical terminal berth
40 hectares of empty yards
56 hectares of CFS
Rail track outside JNPT
Fourth terminal phase 2
Action
Plan
Capacity
Creation
Efficiency
improvement
Org
Improvements
29
Executive Summary
Action
Plan Exhibit xvii : Overall implementation schedule for process improvement projects
Capacity Process improvement Apr-Sep 2007 Oct-Mar 2008 Apr-Sep 2008 Oct-Mar 2009 Apr-Sep 2009 Oct-Mar 2010
Creation
Increasing shallow berth moves to 16
per hr
Efficiency
improvement Increase RMQC moves to 24 per hour
Automation between gate and terminal

Org operators
Improvements
Process improvement Apr-Sep 2010 Oct-Mar 2011 Apr-Sep 2011 Oct-Mar 2012 Apr-Sep 2012 Oct-Mar 2013
Increase RMGC moves to 20 per hour
Automation between sorting yard and

port operators
30
Executive Summary
Exhibit xviii : Overall implementation schedule for organizational improvement initiatives
Action
Plan
Organizational improvement Apr-Sep 2007 Oct-Mar 2008 Apr-Sep 2008 Oct-Mar 2009 Apr-Sep 2009 Oct-Mar 2010
Capacity Strengthening of marketing dept.

Creation
Strengthening of project mgmt.
capabilities
Efficiency
improvement
Org
Improvements
Organizational improvement Apr-Sep 2010 Oct-Mar 2011 Apr-Sep 2011 Oct-Mar 2012 Apr-Sep 2012 Oct-Mar 2013 Apr- Sep 2013 Oct-Mar 2014 Apr- Sep 2014
Training for double moves
Training for managerial staff
Development of Maintanence SLAs
Continuous efforts Timeline Projects with some

action underway
31
Executive Summary
Exhibit xix : Investment outlay by mode of finance till 2017-18
Mode of finance Investment outlay (in Rs crores)*
Port resources (Includes internal port resources as well as 4530

external financing like bank loans, as also the port’s expected
contribution to projects undertaken through Special Purpose
Vehicles)
BOT/PPP route 8190
Public participative financing/SPV (excluding ports contribution) 231.7
Other public investments 207
Other investments ( as part of XI plan outlay) 1398
Total investments 14556
* Apart from this there would be regular recurring investments for hired equipment such as pilot
launches, tugs etc, which have not been included. These figures factor in annual inflation of 4%
32
Executive Summary
Financials Assets
The financials for the port were developed through an z Fixed Assets
comprehensive analysis of all revenue and expense
− Replacement
sources of the port.. The various sources that were
considered while developing the plan for the port are as − Acquisitions
follows:
z Current Asset
Revenue:
The projections of the above streams were used to
z BOT Income develop the Profit & Loss account, Cash flow statement
and the balance sheet for the port.
z Estate Rentals
Analysis of the projected statement of accounts indicate
z Marine Income
the following:
z JNPCT Income
z Profitability
z Misc and Financial Income
JNPT is expected to maintain a high profitability.
Expenses JNPT would have a operating profit margin of
around 70% due to the fact that JNPT would earn
z Container handling costs
significant profits from revenue share from BOT
z Marine Costs projects which do not involve a corresponding
operating expense.
z BOT Expense
z Revenues
z Financial Expense
JNPT’s revenue profile over the years is expected
z Salaries
to change and a significant portion of the revenues
Liabilities: would come from concession fee in the latter years.
This is representative of the fact that JNPT would
z Social expense
increasingly act as a landlord.
z Deferred liabilities (deferred tax liability reduced to
z Expenses
zero post the current adjustments)
The growth in expenses indicate that there would
z Pensions
be an increase in expenditure at JNPT. The largest
z Loans (short and long) increase would be in salaries followed by the
increase in BOT expense
33
Executive Summary
z Return on Capital
Return on Capital Employed at JNPT is expected to remain in the region of 25-30% over the medium to
long term. This indicates that investments in JNPT infrastructure are expected to provide attractive returns.
z Coverage
JNPT is adequately covered with respect to debt repayments. JNPT earns dollar income for marine
services and therefore is naturally hedged with respect to foreign exchange fluctuations. This provides an opportunity
for JNPT to explore the foreign capital markets for raising debts.
z Investments
JNPTs investments would grow at a significant pace through the years. The nature of investments however
is expected to undergo a change. It is expected that a large portion of investments in the early years would be used for
building assets (CFS, Empties, Roads etc) while the latter years could witness a large portion of investments being
used in securities etc (assuming no other investments once the maximum capacity has been reached except
replacements).
A detailed financial model has been attached.
34
Executive Summary
Evolution of JNPT
Based on the financials from the business planning exercise, it is clear that JNPT will evolve primarily into a landlord
port facilitating services by terminal operating companies and other providers. The revenue profile of the port will be
dominated by concession fee and estate income. The container terminal revenue as a proportion of total revenue will
reduce. Nevertheless the container terminal will remain a part of JNPT operations over the medium term horizon of the
plan period.
35
Chapter 1
General Port Description
36
1.1 General Description
Ports in India
Globalization has led to an increase in world Exhibit 1.1.1 : Major ports of India
trade highlighting the importance of ports as a
trade gateway. About 95% by volume and 70%
by value of India’s international trade is carried
out through its port. India’s coast line of 7517
km is dotted with 12 Major Ports and 187 non-
major ports. The Major Ports are under the
control of the Central Government and the Non-
major Ports are under the respective State
Governments.
Major Ports
The total volume of the traffic handled by all the
Indian ports during 2005-06 was around 576
million tonnes, of which 423 million tonnes i.e.
around 74 percent was handled by Major Ports
and remaining 153 million tonnes by the Non-
major ports.
Exhibit 1.1.2 Composition of Cargo at

Major Ports (2005-06)
Cargo Percentage
Share
Crude and Petroleum 33%
Products
Iron Ore 19%
Coal 14%
Container 15%
Miscellaneous 19%
37
Inception of JNPT
The width of the channel is 400 metres at entry point
India’s increasing international trade necessitated the and 460 metres off the berths. Port cargo handling
development of additional facilities to decongest the facilities include container terminals, a liquid handling
traffic at the Mumbai Port. The need of an alternative terminal and a shallow water berth which can handle
port in the region to handle the increasing traffic led to break-bulk and container traffic both.
the development of JNPT in 1989.
With its vast back up area JNPT was believed to have a
Port Highlights
strong potential for the development of additional
facilities as per demand and was ideally suited for future z Accredited with ISO 9001-2000 Certification
maritime requirements.
z Ranks 31st among the top 100 Container Ports
in the world
JNPT Profile z Handles 56% of India’s total containerized cargo
JNPT is the second youngest port after Ennore. JNPT is z Highly automated and computerized operations
located at the eastern end of Mumbai in the Nhava with Single Window System
Sheva area and situated at latitude 18º 56’ 43” N and
z Recipient of Indira Priyadarshini Vrikshamitra
longitude 72º 56’ 24” E. JNPT’s approach channel is an
Award – 1996 for the Greenest Port in India
extension of the Mumbai Harbour main channel (See
Exhibit 2.1) from a location south of Jawahar Dweep z Equipped with the latest Vessel Traffic
Island. In the Nhava Sheva area at the eastern end of Management System (VTMS) to track/monitor
Mumbai Bay is located Jawaharlal Nehru Port, approx vessel movements ensuring safe navigation
33 km inland of the Mumbai Harbour Channel entrance
z Spread over a land area of 2,584 hectares
point at sea. The Elephanta Island is on one side, facing
the port and Nhava and Sheva Islands are on the other z Served by 16 Container Freight Stations and
end. JNPT lies towards the east of the Bombay Port. over 23 Inland Container Depots
Current designed channel depth of JNPT is 11 metres z Well connected by National Rail/Road network
and depth at berths is 13.5 metres. JNPT can take in
vessels having laden draft upto 12.5 metres. A map of
JNPT has been included overleaf.
38
PROPOSED
330 M.
EXTENSION
OF
BERTH
NSICT (2ND C.T.)
J.N.PORT
G.T.I.P.L (3RD C.T.)
FOURTH CONTAINER
TERMINAL (Proposed)
MARINE CHEMICAL
TERMINAL(Proposed)
1.1.1 History
The JNPT Bulk Fertilizer JNPT crossed the 2 GTI starts

Two Liquid
Terminal tendered to be million TEU mark operations of the
Cargo Berths
developed by converted into a CT through third Container
Gateway Terminals of India
2006
BPCL and IOC on terminal on a BOT
BOT basis Private Limited (GTIPL a 2004-05 basis
started consortium of AP Moeller- 2003-04
operations Maersk and CONCOR), on a
BOT basis
A fourth container with a

2000-01 2002 berth length of 2000
meters was planned as an
extension of BPCL jetty on
a BOT basis
A consortium led by P&O 1999-00 An additional

Ports, Australia won the JNPT became the first Indian Marine Chemical
bid for the second terminal port to handle to handle more Terminal was
than 1 million TEUs planned on BOT
basis to enhance
bulk liquid
Nhava Sheva International Container handling
1997
Terminal (NSICT) started operations capacity (5.5 MT)
1989 under the management of P&O
JNPT commenced operations

with one Container Terminal i.e.
JNPCT
40
1.1.2 Existing Port Facilities
Navigational Facilities
Exhibit 1.1.3 Navigational Facilities – Mumbai Harbour and
The JNPT access channel which is an extension JNPT Approach Channel
of Mumbai Harbour channel has a depth of 11 m
below Chart Datum (CD). The water depths in Name of Maintained Width (m) Channel Cumulative
Channel channel length length
front of the berths at JNPT are maintained at 13.5 depth (Nautical (Nautical
m to CD. (MCD) miles) miles)
The common main harbour and JNPT channel Main Harbour Channel
sectors are presently maintained at depths 10.8
m - 11.1 m below CD. The total length of the
dredged channel upto the end of Elephanta deep Outer -11.1 to - 450-350 6.00 6.00
10.9
is about 15.21 Nautical Miles.
At present, large size vessels up to 6,000 TEUs Karanja -10.9 450-325 3.56 9.56
and having a draft up to 12.5 m, navigate through
Mumbai Harbour and JNPT Channels, making
use of the tidal window, which occurs twice in 24 Uran -10.8 450-400 2.41 11.97
hours. Currently the channel is used for two way
navigation of ships.
JNPT Channel
There are 2 mooring launches and 5 pilot
launches to pilot the ships with 7 tugs for towing
the ships. South -10.8 400 1.72 13.69
Elephanta
Channel Limitations
At present, container vessels carrying up to 6000 Elephanta -11.1 450 1.52 15.21
TEUs having a draft upto 12.5 m, navigate Deep
through Mumbai Harbour and JNPT channels,
making use of the tidal window. Ships having Source : CES Report on Feasibility of Marine chemical terminal & 4th
draft larger than this cannot be serviced at JNPT. container terminal, March 2003
During monsoon ships with draft upto 11.8 m can
be serviced.
41
Berthing Facilities Exhibit 1.1.4 Existing Port Facilities
At present JNPT has three

Maximum Vessel size
container terminals; JNPCT, NSICT
that can be
and GTICT. Apart from this JNPT accommodated
Depth Length Cargo
also has a shallow berth and two Berth
(m) (m) Displace Type
captive liquid cargo berths for
BPCL. LOA (m) ment
(tonnes)
JNPCT is operated by JNPT and
JNP Container
NSICT (set up on BOT basis). The Container 13.5 680 305 85000
Bulk cargo terminal comprising the Terminal
bulk berth and two multipurpose
NSI Container
berths are under conversion as a Container 13.5 600 305 100000
Third Container Terminal (on BOT Terminal
basis) by a consortium of MAERSK
Liquid
and CONCOR as GTICT. Liquid Berth chemicals
13.5 300 250 100000
1 Edible oil
Liquid Chemical Terminal - Bharat and POL
Petroleum Corporation Limited
(BPCL) and Indian Oil Limited (IOL) Liquid Berth Liquid
12 280 (Rear
2 chemicals
are operating a liquid bulk terminal side of 180 45000
Edible oil
on BOT basis to handle bulk liquid Berth 1)
and POL
chemicals, POL and edible oil.
Shallow Container
9 445 165 30000
Shallow Water berth - It can handle Water berth and dry bulk
165 m LoA for break bulk and GTI
container purposes Container 13.5 712 Container (under construction)
Terminal
Source : CES Report on Feasibility of Marine chemical terminal & 4th
container terminal, March 2003
42
Storage Facilities
Exhibit 1.1.5 Cargo Handling Equipment at JNPT
Container freight stations are the hubs for import and
export of more than 80% of the cargo handled by the
port. Presently there are 16 Container Freight Facility JNPCT NSICT GTIPL
Stations (CFS) in operation outside the port (Propose
premises; while necessary investments are being d)
made by few more of them. Quay 680 m 600 m 712 m
The total capacity of CFS’s is sufficient to handle the Length
present container traffic. There are around 20 empty
container yards that have come up near the JNPT RMQC Post Panamax Post Panamax – 08
area to store empty containers. – 6 Super Post 6 Super Post
Panamax - 2 Panamax - 2
The port had originally 6 Transit Sheds / Over Flow
Sheds of area 1,10,780 sq. m. and open storage area RMGC 03 03 03
of 1,48,850 sq. m. within the port. Most of these have RTGC 18 29 29
been decommissioned / dismantled for conversion
into container stack yards and other yard facilities. Container 41 28 52
Yard (Ha)
Additional details on port facilities are in Section 6 of
inception report. Railway 04 02 02 + 1
Siding
Exhibit 1.1.6 Storage Facilities Tractor 130 (20 34 owned, 100 150
Trailers owned,110 hired
Storage Facility Capacity hired)
Reach 11 (2 Owned, 9 03 04
Import Storage 6,00,000 Sq m or Stackers Hired)
42,000 TEUs
Export Storage 100,875 Sq meters or Forklifts 3 2 2
35,123 TEUs / month
Reefer 320 672 504
Liquid Storage 123 tanks – 9,48,000 Points
KL
Assumptions: 1 TEU per 50 sqm , 3.5 TEUs to a ground slot.; 35 TEU exports per month for 100 sq m of CFS space
Assumptions and source: A diagnostic study of JNPT , B Raghuram, IIM Ahmedabad, April 2006
43
Limitations of terminal operation

Internationally container terminals focused on Origin destination traffic maintain an average ratio of number of RTGCs
to each RMQC as 3:1. Unlike NSICT and GTI (planned) both of which have RTGC to RMQC ratios over 3:1,JNPCT
has a ratio of 2.25:1. This may be hampering JNPCT crane moves per hour and overall productivity.
At the liquid chemical jetty, the limited discharge rate of a large number of pipelines owing to their small diameter vis-à-
vis the achievable ship discharge rate is a restriction. This reduces the flow rate of liquid chemicals and increases ship
turnaround time.
44
1.1.3 Port Performance
Cargo Traffic break up at JNPT

Exhibit 1.1.7 : Cargo traffic at JNPT
Exhibit 1.1.7 shows that the Dry bulk and Break Dry Bulk Break Bulk
bulk cargo are showing a declining trend over the
Liquid Bulk and General Cargo Container Cargo
years whereas the container cargo is rapidly
35
growing. The share of container cargo in the total
30
cargo handled is also on the rise. Container traffic
Million Tonnes
25
growth is currently approaching a plateau due to
port capacity and hinterland constraints. 20
15
87% of the cargo handled by JNPT is 10
containerized and with further investments in
5
container terminals this share could increase
0
further.
2000-01 2001-02 2002-03 2003-04 2004-05
The share of imports in the total cargo handled at
JNPT has gone up in the year 2004-05.
Exhibit 1.1.8 Cargo Traffic (In million
Cargo tonnes)
Type /
Exhibit 1.1.9 Total Traffic (In million tonnes) Year 2000-
2001-02 2002-03 2003-04 2004-05
01
2004- Container
2003-2004 % % 14.28 18.48 22.86 27.78 28.75
2005 Cargo
Liquid
Import 14.79 47.4 16.63 50.68 Bulk
(MT)& 2.96 2.85 3.04 2.68 3.49
Gen
cargo
Export 16.40 52.6 16.18 49.32
Break
0.94 0.83 0.70 0.58 0.57
Bulk
Total 31.19 100 32.81 100 Dry Bulk 0.39 0.36 0.24 0.15 0.006
Total 18.57 22.52 26.84 31.19 32.81

Source: Data From JNPT
45
JNPT Container Cargo Traffic Exhibit 1.1.10 Trends of Container Traffic growth (in million TEUs)
compared to other major
Indian Ports All India (Major Ports) JNPT
Year
The difference between the Traffic Growth Rate % Traffic Growth Rate % % WRT Total
growth rates of container traffic
at JNPT and all major ports in
the country reflects the robust 1999-00 2.18 13% 0.89 33% 41%
position of JNPT in
containerized cargo. 2000-01 2.46 13% 1.19 33% 48%
2001-02 2.88 17% 1.57 32% 54%
2002-03 3.36 16% 1.92 22% 57%
2003-04 3.90 15% 2.26 17% 58%
2004-05 4.23 8% 2.37 4% 56%
Exhibit 1.1.11 Trends of Container Traffic (in

million TEUs)
JNPT All India (Major Ports)
4
Million TEUs
0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
Source: Data From JNPT, KPMG Analysis
46
Terminal wise Container Traffic at JNPT

With the establishment of the NSI
Container Terminal in 1998-99, the total Exhibit 1.1.12 Container Traffic in '000 TEUs
container traffic handled by JNPT
increased substantially. The container JNP CT NSI CT JNPT Total
traffic was redistributed between the two
terminals with NSICT getting the larger 3000
share of the traffic. NSICT displayed sharp 2500
increase in growth rates, the small base
2000
also amplifying the effect, while JNPCT
went through an overall operational 1500
efficiency improvement initiative during 1000
this phase. Currently both JNPCT and
500
NSICT handle comparable amount of
container traffic. 0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Additional details on terminal performance Source: Data From JNPT

are available on Chapter 7 of the inception
report.
47
1.2 JNPT Organization and staffing
1.2.1 JNPT management model
Exhibit 1.2.1 : Port model at JNPT

Entity / Port Activity Infrastruc Enviro- Port Nautical Nautical Port Superstr- Superstr- Cargo Pilotage Towage Mooring Dredging Port
-ture nment Administ Manage Infrastru Infrastru ucture ucture handling services Plann-
outside -ration -ment -cture -cture (Equipm- (Building) activities ing
port ent)
premises
JNPT JNPT
JNPCT
NSICT
GTICT
BPCL
Shaded area indicates the responsibility of the corresponding entity
JNPT can be considered as a partly landlord Port with JNPCT run by the Port Authority and other two terminals NSICT and GTICT run
by private players P&O and Maersk on BOT basis respectively. A liquid cargo handling berth has also been established by BPCL on
BOT basis with the objective of shifting the entire handling of POL and other liquid cargo to this berth.
As is the case with the landlord port model JNPT sees contracts between private and public sector participants. This may lead through
into the steps of progressive privatisation where increasing private sector involvement is expected in JNPT . Going forward the port
authority will have a policy decision and monitoring role, partly regulatory and partly to ensure contract performance and that royalties,
revenues and rent are properly calculated and collected.
48
1.2.1 JNPT management model
Private Sector Participation at JNPT

JNPT has private sector participation from container terminal operators NSICT (affiliated with DPW) and GTI
(affiliated with APM and CONCOR). The latest contract with private sector players between NSICT and GTI
contains certain performance obligations for the private player and also lays down a set of general obligations to be
fulfilled by JNPT to facilitate the development of the port through private sector participation. JNPT is the Licensor in
this context.
Obligations of the Licensee
z Expected to conduct commercial operations in a manner conducive to the interest of the Licensor, the trade and
the country.
z Expected to achieve minimum guaranteed traffic norms (0.6 million TEUs in the 30th year for NSICT and 1.3
million TEUs by the 7th year for GTI)
z Expected to maximise cargo handled and revenue without indulging in any unfair or discriminatory practice and
in accordance with sound business practices.
z The Lead Member of the consortium is required to hold at least 26% of the paid up capital and the members of
the consortium together are required to hold at least 51% of the paid up capital.
z May offer preferential window in berthing to any one or more shipping lines or operators with a view to optimise
productivity in accordance with guidelines.
Obligations of the Licensor
z Scheduling entry, berthing and sailing of vessels in consultation with the Licensee on a non-discriminatory basis.
z Maintain entrance channel and berth draft and provide Pilotage and towage on a non-discriminatory basis.
z Provide and maintain general port infrastructure and grant free and unrestricted access to Licensee to all
infrastructure facilities and utilities including electricity, water, telecommunications at prevailing tariff rates.
z Assist the Licensee in obtaining approvals, permits and licenses including environmental clearances for the
project.
z Obtain customs notification for the Licensees Premises to be utilised as a project.
z Any levy or levies including taxes, duties, cess on account of Licensor’s assets within licenses premises payable
to State Government or any statutory authority shall be met and paid by the Licensor.
49
1.2.2 Organization structure and responsibility
Exhibit 1.2.2 : Organization Structure of JNPT
Board of Trustees
Chairman
Dy. Chairman
Chief Manager Chief Manager Chief Manager Chief Manager Dy. Conservator
(Operations) (Finance) (PP&D) (Admn & Secy)
Sr. Manager Sr. Dock Master

(L&E)
Sr. Manager Dock Master

(P&IR)
Manager Pilot
(Admn)
Manager
Medical (MC/ PC)
Superintendent
Manager
(Engg)
Manager
(MS)
Dy. Manager
(VIG)
Source: Data From JNPT
50
The Board of Trustees exercise limited power and are bound by directions on policy matters and orders from the
Government of India. The Port Trusts are expected to serve public interest rather than maximise profits and revenues
while at the same time ensuring optimum deployment of assets.
The Chairman and Deputy Chairman are part of the Board of Trustees and are representatives of the Board who are
responsible for the management of the port. The Chairman is the Chief Executive of the port and exercises
supervision and control over the day to day activities of the port. He also functions as the administrative head for all
the port employees.
The Chief Manager, Operations has responsibility and authority for operations including -
z Planning, documentation, operations in the Bulk and Container Terminal of the Port, landing, shipping or
transshipping cargo between vessels in the Port, shifting, transporting, storing or delivering cargo/containers,
brought within the premises of the Port, receiving, delivering, transporting, booking and dispatching
cargo/containers originating in the vessels in the Port and intended for carriage by road or railways;
Maintenance of port equipment, management of stores, sub-stores, procurement of materials, equipment,
spares, consumables
z Preparing and distributing statistics related to port operations
z Providing engineering services related to port equipment, vehicles
The Chief Manager, Administration and Secretary has responsibility and authority for operations including -
z Management and development of personnel
z Industrial relations, liaison with trade unions, staff associations etc.
z Management of estates owned/leased or rented by the Port
z Legal matters and Board Matters
z Matters and activities related to vigilance
z Arrange training of employees
z General administration and transport facilities
51
The Chief Manager, Port Planning and Development has responsibility for the execution and management including
the following -
z Planning, execution, monitoring and commissioning of new projects
z Maintenance of marine structures and maintenance of port buildings, civil structure, etc.
z Maintenance of township and allotment of land
z Planning, survey, execution and monitoring of dredging activities
z Formulation of 5 year plan and annual plan for the port and interface with MOST in regard to monitoring of plan
schemes
The Deputy Conservator has responsibility and authority for the management of all marine related operations in their
entirety including -
z Marine conservancy and pollution control and safety
z Marine operations including safe pilotage, berthing, unberthing and shifting of vessels
z Ensuring observance of all relevant laws and harbour rules by ships and port users within the port limits
z Ensuring that port crafts are properly maintained and safely operated by the contractors
z Operation and maintenance of Port signal station, VTMS
z Purchase and maintenance of capital equipment for navigation
z Providing fire-fighting service to the Port and safety in navigation and operations
The Chief Manager, Finance has responsibility and authority for all financing and accounting activities including -
z Collection of revenues for services provided in container, bulk, tank farms, estate and marine department
z Disbursement of cash, maintaining and reconciliation of bank accounts
z Payments related to project activities, bills, materials and establishment
z Internal audit by the department, as well as preparation of financial and accounting statements
z Costing, budgeting and loans and investments
52
1.2.3 Labour
Classification of Labour Exhibit 1.2.3 : Staff by Department at JNPT
Labour at JNPT can be classified into 3
categories - Department Class 1 & 2 Class 3 & 4 Total
z Permanent Operations 148 1260 1408
z Contract Finance 26 40 66
z Labour employed by private players Marine 21 94 115
Permanent Labour - These are a total of Port Planning & 19 56 75
1800 personnel and they have entered into Development
a wage agreement with JNPT. Their wage
levels are set by the Ministry of Shipping, Management Services 9 17 26
Highways and Road Transport. The salaries
are revised every 10 years through a Administration 22 88 110
revised wage agreement. These are again Marketing 3 9 12
classified into categories. Class 1 & 2
employees are around in 260 in number and
constitute the managerial/official cadre.
Class 3&4 employees are 1500 in number. Exhibit 1.2.4 : Managerial staff Monthly Pay scales at JNPT
Of these 1200 are deployed in port
operational roles with 300 being Designation Pay scale range (in Rs)
administrative staff. Details of these staff by
department as well as salary structure are Chief Manager/ Deputy Conservator 20500-26500
provided in exhibit 1.2.3 and 1.2.4. Senior Dock Master 18500-23900
Contract Labour - This number is variable
Senior Manager/ Dock Master 17500-22300
and changes depending on the status of
port developments. This includes contract Manager/ Pilot 14500-18700
labour for all 3 shifts deployed in
conservancy and construction activities in Deputy Manager 13000-18250
the port. JNPT deploys approximately 700
contract labour for their activities. The bulk Assistant Manager 10750-16750
of these labourers are hired for the container
Source: Discussions with JNPT
handling operations like operating tractor
trailers and construction activities at JNPCT.
Private labour - This consists of labour employed by private terminal operators like NSICT and GTIPL.. Currently there
are large numbers of contract labour deployed for civic and construction activities at 3rd terminal (GTIPL)
53
1.2.4 Organizational limitations
Shortage of skilled Labour

Discussions with JNPT have indicated that availability of skilled operators especially in the marine side for pilots and
launch vessel operators, is an area of concern, especially given the current pay-scales of the port. Data operators and
other IT system operators is a category where finding qualified people is a concern.
Government regulations related to full-time employment at ports
Government regulations for major ports make hiring of a full time employee possible only in case of 3 vacancies
arising in that section. This regulation may act as a barrier in hiring full time employees and has increased the contract
labour on rolls at JNPT.
Lack of marketing efforts
Port user meetings have indicated that the private ports are more aggressive than other ports in their Marketing and
Sales efforts and are undertaking exercises such as presentations, meetings etc with various shipping lines to
increase their traffic. As competition in the port sector increases , JNPT will need to strengthen the marketing cell to
undertake marketing, sales and pricing initiatives.
Source: Discussions with JNPT

54
Chapter 2
Hinterland Connectivity
55
2.0 Introduction
Introduction
There are two primary modes of transport for cargo at ports. These are road and rail. At JNPT road is the primary
evacuation mechanism with over 72% share of non-trans shipment cargo in the year 2005-06. Railways have the
remaining share of the non-transshipment cargo at JNPT.
The rail cargo is delivered/ received from Inland Container Deports (ICD) through trains that are run by CONCOR. At
present there are over 23 ICDs in India which are connected to the various ports through rail and road. The Inland
Container Depots are the existing intermodal facilities where goods are brought by road and then transferred to freight
trains headed for other ICDs/ ports.
Waterways are not a well developed mode of evacuation at Indian ports. At JNPT inland waterways are not used for
evacuation purposes due to lack of development of waterways in the vicinity. There is an infrequent use of barges for
easing out congestion or to transfer cargo across the harbour to Mumbai port.
A schematic map indicates rail /road connectivity at JNPT in exhibit 2.0.1.
56
Exhibit 2.0.1 : Schematic Plan of JN Port
MUMBAI THANE
Showing Road & Rail Connectivity Sio
n-P
Mu an
ne
mb ve
lH
Tha
ai igh
wa
y
To
NH4
NERUL
Jawaharlal
JawaharlalNehru
NehruPort
Port BELAPUR
PA
NV
EL
Container CR
terminal EE
K
tion
Railway
ar g
Connec
ra M
PA N
Aam
VEL
SH54
NH4
Co Rai
nn lwa
BY P
ec y
t io
n
A SS
URAN PANVEL
4
KARAL
S H5 GAVAN NH4B
To Uran PHATA PHATA
SH81
NH
To Chirner
NH4B
To Pune
NH1
Goa
7
CHIRNER
Proposed Interchange Locations To
57
GOA PUNE
2.1 Rail Connectivity
2.1.1 Rail Infrastructure and Performance
Rail Infrastructure at JNPT Exhibit 2.1.1: Rail traffic at Terminals by TEUs
and No of trains (2005-06)
JNPT is linked with the Indian railways though a lead line
connecting the port with it serving station Jasai. Jasai itself is Traffic JNPCT NSICT Total
located on the Panvel – Uran branch line section of Mumbai
division, Central Railway at a distance of 9 km from the port. Import (TEUs) 161780 179027 340807
The rail system at the port, which is now owned, operated and
maintained by the Indian railways, has 8 full length railway
lines serving the three existing container terminals, besides a 4 Export (TEUs) 157180 184325 341505
line intermediate holding yard between Jasai and the port. The
Jasai station yard deals with all traffic to and fro from JNPT Total (TEUs) 318960 363352 682312
and the Indian Oil Tank farm Ltd. The 4 line intermediate
holding yard between Jasai and the port serves to hold back
% share (TEUs) 45.11 54.89 100
and regulate traffic in the event of congestion at JNPT or at
Jasai yard.
Trains (In nos.) 2067 2137 4204
Inside JNPT the rail infrastructure of 10 lines are divided by
terminals as follows
% share 49.10 50.90 100
z JNPCT - 4 lines (line no 1 & 2 , as well as 6 & 8). Line (Trains)
no 6 & 8 are currently being served by reach stackers
but conversion to a full fledged ICD with RMGCs and Source: Data from JNPT , KPMG analysis
under the gantry stacking facilities is underway.
z NSICT - 2 lines (line no. 4 & 5) Rail Traffic at JNPT
During 2005-06 the total number of trains handled by
z GTIPL - 2 lines (line no. 9 & 10) the port were 4204 carrying over 0.682 million TEUs.
z Line no 3 & 7 are used as a common engine run round A split up by rail cargo by exports and imports
line and do not handle container traffic. terminal wise is shown in exhibit 2.1.1. Rail cargo
was 25.6% of the total container traffic of 2.67 m
ICD lines 1 & 2 are served by 3 Rail Mounted gantry cranes TEUs handled by JNPT in 2005-06.
with a span of 25.5. m and lift capacity of 35.5 tonnes. Line
Of the remaining 74% close to 10% is trans-shipment
nos. 4 & 5 are served by 3 RMGCs with a span of 25.5 m and
traffic with the remaining 64% moving by road and
lift capacity of 40 tonnes.
handled by the port side CFSs. Over half of this
container traffic is long distance that is suitable for
movement by rail.
58
Rail Operations at JNPT

The handling of container trains is done by 3 main agencies – Railways, CONCOR and the terminal operators.
Railways provide the fixed infrastructure in the form or track, motive power and train crews. They have a small
component of staff responsible for ensuring safe/receipt dispatch of container trains and compliance with regulations
related to safe movement of trains.
CONCOR is presently the sole provider of rail-borne container transportation between the port and the hinterland. It
owns all container flat cars as well as a large number of ICDs in port hinterlands. It is responsible for advising the
terminal operators of the incoming container trains, particulars of containers to be unloaded and destination for each
outward container train.
The terminal operator is responsible for the unloading and loading plan of each individual train and deploys the required
tractor trailers (TT) and RMGCs for timely completion of loading/unloading operations.
Performance of JNPCT Terminal
As per studies conducted by RITES Ltd, in 2003-04 JNPCT handled 1.32 m TEUs overall with 0.276 m TEUs of ICD
traffic. Total number of trains handled was 1943 at an average of 5.32 trains per day. Average period of detention of
these trains was 12:08 hrs before leaving the port with an average productivity of 1.33 trains per line per day. 43% of
these trains were mixed trains comprising containers boxed for both JNPCT and NSICT. An analysis for the month of
Dec 04 revealed that mixed trains suffered an average detention of 13 hrs 50 mins as compared to 7 hrs 38 mins for
dedicated trains.
Factors affecting the train handling performance at JNPT include
z Lack of adequate pre-intimation of train particulars including destination information.
z Absence of an advance train handling plan.
z High idle time of RMGCs at the ICD.
z Inadequate availability and high turn around time of Tractor trailers deployed at the ICDs.
z Lack of coordination between two terminal operators.
z Priority to ship side operations over ICD operations.
59
Performance of NSICT Terminal

As per studies conducted by RITES Ltd, in 2003-04 JNPCT handled 1.23 m TEUs overall with 0.335 m TEUs of ICD
traffic. Total number of trains handled was 1772 at an average of 4.85 trains per day. Average productivity level of 2.43
trains per line per day with an average period of detention of these trains was 9:00 hrs before leaving the port. 27% of
these trains were mixed trains comprising containers boxed for both JNPCT and NSICT. An analysis for the month of
Dec 04 revealed that mixed trains suffered an average detention of 7:27 hrs as compared to 6:47 hrs for dedicated
trains. The handling time for mixed trains was only 10% more than dedicated trains while at JNPCT the handling time
for mixed trains is much longer.
Factors affecting the train handling performance at NSICT include-
z Idle time of the RMGCs.
z Insufficient number of TT to support the handling rate and avoid idle time of RMGCs.
z Non utilization of under the gantry stacking facility.
Issue of Mixed Trains **

JNPT ICD suffers from the problem of mixed trains carrying containers for both NSICT and JNPCT. The terminal
operator on whose line the train arrives unloads his own boxes and advises the other terminal to arrange TTs to
evacuate containers belonging to the other terminal. The late arrival of TTs leads to delay in handling of boxes and
slows down train turn around times. Similarly during loading train waits much longer for arrival of boxes belonging to
other operator.
This is an extensive phenomenon with 45.1% and 27.26 % trains being mixed at JNPCT and NSICT during the year
2003-04. JNPCT handled 65% of the mixed trains. The average delay for mixed trains was over 6 hrs more than
dedicated trains at JNPCT resulting in huge increase in handling time.
With the increase in capacity as a result of GTICT beginning operations as well more ICDs coming up in the hinterland,
the number of mixed trains will increase. This is an issue that needs to be addressed by the terminal operators.
** Recent initiatives (in February 2007) have been taken by the port along with private terminal operators to
implement the CRO mechanism to tackle mixed train issues. This is expected to improve turn around times
of trains as well improve overall efficiency in rail handling
60
Shortage of Trains
There exists a demand supply mismatch in Exhibit 2.1.2 : Mismatch in Rail Supply and Demand
number of rail services needed for timely
JNPT
evacuation as seen in Exhibit 2.1.2. There exists (includes
a shortfall of 2.3 trains per day. With GTI set to go both
on stream and assuming a throughput of 1.3 terminals) GTI *
million TEUs the total number of trains needed to
TEUs handled (2005-06) 2661801 1300000
be serviced rises to approximately 21 per day. In
2005-2006 the average number of trains that % By rail ** 25.6% 25.6
actually arrived per day was 11.5. Approximately
TEU to be handled by train 681421 332800
2 more trains are needed to service existing
terminals efficiently besides 6-7 new trains for No of trains in a year 7571 3697
GTI. Trains required per day 20.74 10.1
Hence there exists a shortage of trains for Adj. Trains required per day *** 13.8 6.73
evacuating containers. Increasing train services to
the port is constrained by railway infrastructure at
2 levels- Actual trains in 2005-06 4204
z On the main cargo corridors Actual no of trains in a day 11.5
z In the vicinity of the port
Mismatch 2.3
* - Planned when operations begin in August 2006

** - Share of Rail traffic as per JNPT data 2005-06
*** - Adjusted for peak surges and cargo carried in/ out by a train
Source : KPMG Analysis
61
Rail Operations in the vicinity of JNPT
Evacuation from JNPT is particularly constrained in the 93 km Vasai Road – JNPT section. Studies by RITES Ltd.
indicate that against the overall average speed of around 30 kmph on the total route, container trains manage just 7.61
kmph. A closer scrutiny of trains running on Vasai Road – JNPT – Vasai segment in December 04 reveals that a
round trip on this segment takes around 28 hrs. Of this travel time consumes almost 69% while balance 31% is
consumed by handling in the port ICD. Container trains suffer an average detention of over 5 hours at Panvel and
Jasai for various reasons including room in Jasai yard, room in port ICD, traction and train crews.
JNPT needs to ensure major improvements in ICD operations at the port and in coordination with Indian railways
could implement the following measures to facilitate train operations while ensuring that road traffic does not get
disrupted –
z Provision of additional R&D lines in Jasai yard.
z Provision of 4 additional lines in the holding yard.
z Build a merry go round link between port ICD and Jasai yard to allow uni-directional flow of traffic.
Recent action has been taken by Indian railways with single line from Panvel to JNPT having been doubled allowing
for more trains to visit the port from Panvel.
62
2.1.2 Hinterland linkages
Origin- Destination (O-D) Analysis Exhibit 2.1.3 : ICD Share of Total Rail Container Cargo
from/to JNPT (2004-2005)
An origin-destination analysis of traffic carried out by RITES
Ltd. for the year 2004-2005 reveals that certain ICDs have Traffic
(TEUs
the bulk of the traffic as seen in exhibit 2.1.3.
ICD Name ) Percentage
91% of the traffic comes from the Top 10 ICDs, 75% of the
New Delhi- Tughlaqabad 305894 49.2
traffic comes from the Top 4 ICDs and nearly 50% from just
one ICD alone at New Delhi. Ludhiana - Dhandari
Kalan 59091 9.5
Key Rail Corridors
Ahmedabad- Sabarmati 65372 10.5
A look at the routes employed to reach the major ICDs
allows us to split traffic from/to JNPT in order of their rail Indore - Pitampur 10087 1.6
load into distinct rail corridors as follows – Nagpur 37637 6.1
A. Northern Route – JNPT - Vasai Road – Indore – Hyderabad - Sanatnagar 22995 3.7
Kota- Delhi (Tughlaqabad and Dadri) - Ludhiana
Jaipur - Kanakpura 15868 2.6
(Dhandari Kalan)
Kanpur 14422 2.3
Principal O-D points on their route comprise
Tughlaqabad, Dadri, Ludhiana, Pitampur and Delhi - Dadri 21477 3.4
Kanpur. Jodhpur 17111 2.8
B. North Western Route – JNPT – Vasai Road – Others 51737 8.3
Vadodara – Sabarmati – Mahesana – Palampur –
Jodhpur- Jaipur – Rewari – Bathinda Total 621691 100%
Source : Rail Transport Logistics Study , RITES Ltd , February
Principal O-D points comprise Vadodara, 2006
Sabarmati, Jodhpur and Jaipur.
Exhibit 2.1.4 : Corridor shares of Traffic
C. Central Indian Route – JNPT – Aurangabad –
Corridor % share
Bhusawal – Nagpur – Bilaspur. ( Includes local
A 73.13
Mumbai points like Mulund)
B 16.5
D. South- Central Route – JNPT – Chinchwad – C 9.58
Solapur – Hyderabad – Visakhapatnam. D 1.14
The corridor wise share of rail borne traffic as seen in exhibit 2.1.4 shows that over 90% of the traffic flows
through corridor A & B. Exhibit 2.1.5 indicates principal rail corridors with saturated sections overleaf.
63
Exhibit 2.1.5 Rail Connectivity to Hinterland
64
Source RITES Report
2.1.2 Hinterland linkages
Analysis of Key Rail Corridors
With 90% of the traffic at JNPT passing through rail Exhibit 2.1.6:Speed of Traffic on segments of the Rail
corridors A and B, these corridors merit close attention Corridor A
for potential bottlenecks. Barring a few short sections, Section Leng Time ( hh : mm) Avg Speed
both the corridors are already 100% saturated and the th km (kmph)
Up Down
available line capacity is already overstretched. With
Up
predominance of passenger carrying trains over freight
Down
trains, the running of container trains is being affected.
Tughlaqaba 123 4:23 5:11 28.08 23.75
The entire A corridor, except the Diva-Vasai Road and d - Mathura
Godhra- Mathura segments has a predominance of
passenger carrying trains with at least 3 different speed Mathura Jn 549 10:25 11:01 52.78 50.00
parameters. An analysis of train operations on this – Nagda
corridor for the month of December 04 is shown in
exhibit 2.1.6. From a look at the average speeds we Nagda - 228 5:45 6:30 39.65 35.08
see that the following 3 segments of the corridor Godhra
require specific attention for the resolution of line
Godhra – 202 7:23 6:48 27.30 29.71
capacity deficiency and other bottlenecks – Surat
z JNPT – Vasai Road Surat – 215 7:01 7:00 30.65 30.71
z Vasai Road – Surat – Vadodara – Godhra Vasai
z Mathura - Tughlaqabad Vasai – 93 10:23 8:30 8.94 10.94

JNPT
The independent portion of the B corridor for most part
Total 1410 45:31 45:02 31.10 31.31
is saturated with capacity utilization exceeding 100%.
One of the major bottlenecks on this is the portion Source : Rail Transport Logistics Study , RITES Ltd , February 2006
between Geratpur - Sabarmati – Palanpur. This is
because the city of Ahmedabad has passage
difficulties. Again the predominance of passenger trains Immediate steps need to be taken by railways to ease
makes it difficult for container trains to maintain pressures on key hinterland rail corridors and improve
speeds. connectivity to JNPT.
65
2.2 Road Connectivity
2.2.1 Internal Road network at JNPT
Road networks at JNPT are classified into internal (in and around JNPT) and external (connecting JNPT to the
hinterland)
Internal Road Linkages at JNPT
The entry to the port from State Highway and National highway takes off from Karal junction as both the highways meet
at this junction. Port road further travels up to the CFS junction which is a 4 arm junction and gives access to JNPT
CFS and the tank farm roads. The road from Karal junction to Y junction ( called as Port road) is at present 4 lane road.
The customs and PUB buildings are located along the port road and access to these buildings are from PUB junction.
At Y junction, the port road bifurcates into the container road which gives access to the container terminals (JNPCT and
NSICT) and another road namely bulk road giving access to the bulk terminal (now container terminal of GTIPL).
Shortcomings of Internal Road Linkages
The current road infrastructure is facing pressures leading to congestion at various places in the port area. The issues
that need to be addressed are
z Single evacuation route dependence.
z Separation of container and passenger traffic at various junctions.
z Shortening road access between key points.
z Separation of container and trailer traffic from other vehicles.
z Widening of roads for movement of container traffic.
z Providing parking and other infrastructure to tractor trailers.
66
2.2.2 Planned internal road projects
A set of proposals by JNPT for immediate implementation to ease traffic within the port have been listed in Exhibit 2.2.1.
Exhibit 2.2.1 : Proposed Projects to Develop Port internal Road network

Present
Block Completion period
No Particulars Cost (Rs cr) Award of work by (months)
a. Karal Junction widening & signalization
b. Improvement of CFS junction
c. Improvement of Y Junction 18 (to be completed by Jan
1 d. Improvement of circulation inside port 4.71 June 05 07)
Additional container gates :
a. Container gate structure 0.97 May 05 10 (completed by March 06)
b. Roads and additional pavements for new container gates 10 (completed by March 06)
2 0.99 Apr 05
Six laning of port road
a. Container road (3.5 kms)
b. PUB-Karal Junction road (2.3 kms)
15
c. Karal Junction to CFS road (500 m) (to be completed by
3 d. Widening of culvert over ONGC pipeline 14.12 Oct 05 Mar 2007)
Buffer yard development
4 (14,000 sq mtrs area) 1.71 Mar 05 8 (completed by Dec 05)
Development around CFS
a. Parking area opposite to CFS
5 b. New 4 lane road connecting SH-54 and CFS road 7.95 Apr 05 8(completed by Mar 06)
Development of road for passenger corridor /Widening of bulk 20 (to be completed by Jul
6 road 1.05 Nov 06 08)
7 New evacuation road from JNPT to NH4 2.64 Deferred till finalization of grid separator
9 Electrical sub-station 1.03 Provisional estimate
Total 35.17
Source : A Diagnostic study of JNPT – B.Raghuram , IIM Ahmedabad, April 2006 , Discussions with JNPT
67
2.2.3 External Road network at JNPT
External Road Linkages at JNPT

The major road linkages connecting JNPT with hinterland road network are NH4B, SH54 and Aamra Marg (existing
name is MIDC pipe line maintenance road). The main hinterland road network consists of the following highways –
z NH3: Mumbai - Nashik highway (2 lanes with portion of highway being 4 laned)
z NH4: Mumbai - Pune highway (4 lanes)
z NH8: Mumbai - Ahmedabad highway (2 lanes with portion of highway being 4 laned)
z NH17: Mumbai- Goa highway (2 lanes)
A brief description of the major road linkages are as follows –
z National Highway 4B: It has a length of 26.43 km and branches at km 108/800 of NH4. The road connects
JNPT with Mumbai and other parts of Maharashtra state and adjoining states of Gujarat, Goa, Madhya Pradesh
and Andhra Pradesh. The road mainly serves the heavy traffic of containerized vehicles to and fro JNPT. The
widening of the road has recently been completed .Tolling on this improved facility would start shortly.
z State Highway 54: It connects Uran with Panvel town. It runs more or less parallel to NH 4B and that railway
track passes between SH54 and NH 4B. SH54 meets NH 4B at km 6/000 on Uran side and km 21/000 on Panvel
side. The traffic is mainly to and fro JNPT. Number of container yards are located abutting SH54. The existing
carriage way is 2 lane and widening to 4 lane is under progress. It is expected that, widening will be completed
by the end of year 2006. The improved 4 lane road would be a tolled facility.
z Aamra Marg: It begins at km 125/800 of Sion Panvel highway (SH42) and passes through Belapur, Nerul and
Ulwa and ends at km 13/900 of SH54 and joins at km 15/000 of NH 4B near Padeghar village. The road is an
important link between northern and southern parts of Navi Mumbai and JNPT. The existing carriageway is 2
lane and widening to 4 lanes is under progress. It is expected that , widening will be completed by the end of the
year 2006.
68
AHMEDABAD
AHMEDABAD NASHIK
NASHIK
NH 8
NH 3
THANE-
GHODBUN
AD
DER RD
RO
Exhibit 2.2.2 :
S
K-
Map of external
B-
connectivity to port
SH40
MUMBRA
BY-PASS
SHIL
PHATA
KALAMBOLI
JUNCTION
SION- PANVEL
HIGHWAY
NH4
BELAPUR
JUNCTION
NH4
AAMRA MARG
GHAVAN
JNP PHATA PUNE
PUNE
PALASPE
PHATA
KARAL
PHATA GOA
GOA
NH4B
NH17
URAN
URAN SH54
69
2.3 Intermodal Facilities
The source of intermodal transport of cargo to JNPT are Inland Container Depots (ICD). There are 23 ICDs all over
the country where goods are brought by road and then transferred to freight trains headed for other ICDs / ports.20 of
the 23 ICDs are directly connected to JNPT and act as transit points for cargo. CONCOR operates the rails between
the ICDs and JNPT.
JNPT carries out 91% of its rail cargo traffic with the Top 10 ICDs, 75% with the top 4 ICDs and nearly 50% from just
one ICD alone at New Delhi. A split of ICD business at JNPT is shown in exhibit 2.31. Exhibit 2.3.2 illustrated ICD
connectivity with JNPT.
Exhibit 2.3.1 : Top 10 ICDs that handle Cargo from/to JNPT (2004-2005) (TEUs)
ICD Name Imports Exports Traffic Total Percentage
New Delhi- Tughlaqabad 153348 152546 305894 49.20354
Ahmedabad- Sabarmati 32339 33033 65372 10.51519
Ludhiana - Dhandari Kalan 31186 27905 59091 9.504883
Nagpur 22830 14807 37637 6.053972
Hyderabad - Sanatnagar 10358 22995 22995 3.698783
Delhi - Dadri 10801 10676 21477 3.45461

Jodhpur 7207 9904 17111 2.752332
Jaipur - Kanakpura 7628 8240 15868 2.552393
Kanpur 5846 8576 14422 2.319802
Indore - Pitampur 5739 4348 10087 1.62251
Others 31736 9643 51737 8.32198
Total 319018 302673 621691 100%
Source : Rail Transport Logistics Study for the Development of JNPT - RITES Ltd , February 2006
70
Exhibit 2.3.2 :
ICD JNPT
Connectivity
ICD / JNPT Connectivity Map
71
Chapter 3
Competitive Position
72
3.1 Competitive Position
An analysis of trends of container traffic over the
Exhibit 3.1.1 Container traffic on western coast (Thousand
last 11 years illustrates that JNPT has a significant
TEUs)
share of the western coast container traffic. Over the
past 11 years this share has grown (83% in 05-06) West Coast JNPT
indicating that the western coast traffic is primarily
serviced by JNPT. Growth
ICD traffic from roads in India is minimal. The ICD Growth Rate % WRT
split of rail traffic at JNPCT terminal shows that the Traffic Rate % Traffic % Total
ICD traffic at JNPT is contributed primarily by the 95-96 1182 339 28.68%
northern regions (over 70%). This indicates that
JNPT serves primarily as a port for the northern and 96-97 1198 1.35% 423 24.78% 35.31%
western traffic
97-98 1314 9.68% 504 19.15% 38.36%
The traffic from Eastern, Central and Southern
regions is less than 10% in comparison indicating 98-99 1369 4.19% 669 32.74% 48.87%
that southern regions contribute marginally to
JNPTs traffic 99-00 1565 14.32% 890 33.03% 56.87%
00-01 1743 11.37% 1190 33.71% 68.27%
01-02 2120 21.63% 1574 32.27% 74.25%

Exhibit 3.1.2 ICD Traffic at JNPT Southern Total
4% 02-03 2461 16.08% 1929 22.55% 78.38%
Northern Total
70%
03-04 2822 14.67% 2269 17.63% 80.40%
South Central
Total 04-05 2975 5.42% 2371 4.50% 79.70%
4%
05-06 3195 7.39% 2668 12.52% 83.51%
Western Total
22%
Eastern Total Central Source: IPA, West Coast includes Mundra, Pipavav,
<1% <1%
Kandla, Mumbai
Source: Ops Dep't data
73
3.1.1 JNPT Competitor facilities snapshot
A comparison of current facilities at JNPT with competitors -
Facilities Location w.r.t major shipping routes (Nautical Miles) Draft Berths/Quay Length Throughput
Approx. diversion from Europe Asia Route: 1656
Mumbai 9m 812 m 0.22 Mn TEU *
Approx. Diversion from America- Far east Route: 888
Approx. Diversion from Europe Asia Route: 1516
Mundra 17.5 m 632 m 0.22 Mn TEU*
Pipavav 14m ~600m 0.2 Mn TEU
Kandla 12 m ~600m 0.18 Mn TEU *
Approx. Diversion from Europe Asia Route: 1666 1280 m (expansion
JNPT Max 12.5 2.67 Mn TEU
Approx. Diversion from America- Far east Route: 898 planned)

Cochin Max 12.5 572 m 0.19 Mn TEU*
Approx. Diversion from Europe Asia Route: 2093 12-15m - JCT 1642m (JCT) and
Colombo 1.95 Mn TEU**
Approx. Diversion from America- Far east Route: 0 9-11m – SAGT 940m (SAGT)

Salalah 16 m 1236 m 2.5 Mn TEU*
Approx. Diversion from America- Far east Route: ~2093
Approx. Diversion from Europe Asia Route: 1469 600 m (KICT) 600 m
Karachi 12.2m 0.8 Mn TEU**
Approx. Diversion from America- Far east Route: 1340 (PICT)
*03-04 Source: ipa.nic,in, Review of Maritime Transport – 2005,

** 04-05 Port websites
74
3.1.1 JNPT Competitor facilities snapshot
A comparison of current facilities at JNPT with competitors -

Facilities Cargo Handling Equipment Primary Cargo Type Connectivity
MbPT Railway is connected to the Indian Railways
at Raoli Junction at Wadala. The port is connected
Mumbai 2 quay cranes, 3 RTGs Crude, Liquid Bulk and Dry Bulk
to Central and western railways and exchanges 3-4
trains a day
Currently connected through a single line. The
Primarily dry cargo regular services at MICT is over 500 and in 04-05
Mundra International 516 trains were serviced at Mundra
6 Quay Cranes, 18 RTGs Focus on containers has
Container Terminal
increased Connectivity to nearby junctions is being improved
through addition of tracks
3 Railway sidings and double stacking capability
Pipavav - Dry Bulk
Currently connected through a single line
Has connectivity to the western rail network through
Kandla - Liquid (POL and Crude)
a broad line
Regular services of over 2000 trains annually.
JNPT 24 Quay Cranes, 76 RTG Containers It is connected through broad gauge double line
tracks to western and central rail network
Cochin is connected through a double line to the
Dry Bulk and Break Bulk Indian rail network. Rail connectivity is being added
Cochin 2 Quay Cranes, 9 RTG between Cochin and Vallarpadam.
Focus on containers has
increased Concor runs on demand services between northern
regions and cochin
Colombo 22 Quay Cranes, 67 RTGs Containers
11 (Super post panamax), 1
Salalah General Cargo and Containers
(post panamax), 30 RTG
Containers and Dry Cargo. The
Karachi International 6 quay cranes (KICT) 2 Quay
port trusts plans to increase
Container terminal Cranes (PICT)
container terminals
75
3.2.1 JNPT Competitor plans
Future plans of Competitors

Currently JNPT serves over 50% of the container traffic in India. However, with the emergence of private players and
capacity additions in other ports, it is expected that some of the traffic especially from northern regions (which lie closer
to some of the western ports) would be diverted to the new ports. These new ports are also expected to capture a large
proportion of traffic in their region.
The competitors considered are Pipavav, Mundra and Kandla in Gujarat, Port of Rewas and Mumbai Port in
Maharashtra. As mentioned earlier, not all plans of these ports are available in the public domain. However a brief
snapshot of future plans of the competitors is provided below:
z Mundra
− Mundra International Container Terminal (MICT) is managed by P&O Ports
− The Container terminal comprises of 2 berths and is capable of handling 1.2 million TEUs per annum.
− Terminal throughput has doubled over the last one year to over 0.2 million TEUs in 2004-05.
− Work has begun on a second container terminal expected to double container capacity of the port by
2008 – 09 with 1250 m of quay and draft of 18.5 m
− 3 new CFS operators are set to begin operations in addition to the 3 existing CFS operators.
z Pipavav
− It is India’s first private sector port with significant investments by the AP Moller-Maersk Group. Container
traffic at Pipapav was 80,000 containers in 2005 and is expected to reach 0.25 million by 2006
− Pipavav has invested towards development of a modern container terminal which on completion will
have a capacity of 1 million TEUs
− Facilities have been developed to handle double stacked container trains from the port till Jaipur ICD.
z Kandla
− Kandla currently has one terminal with a capacity of around 700,000 TEU and is planning to develop
another terminal by 2010-11 which would double its capacity
76
3.2.1 JNPT Competitor plans
z Mumbai
− Mumbai is expected to develop an offshore container terminal with a capacity of 1.2 Mn TEU by 2018-19.
z Port of Rewas
− Port of Rewas is being setup on the west coast of Maharashtra. It is located near Karanja creek at mouth of
the Patalganga river, about 10 Km from JNPT. The Reliance group has recently acquired a stake in the
port. The port expects to handle various types of Cargo (dry, liquid and containers). The plans of the port
available in public domain indicate that the port expects a capacity of about 3-4 Mn TEUs beyond 2018.
Impact on JNPT
Analysis of competitor plans and discussion with port users and export promotion councils indicate that as the
development plans of competitors would take time to fructify it is expected that JNPT would continue to capture a
substantial proportion of the northern and western traffic for the next 5-6 years. However as competitors develop
capacity and develop supporting infrastructure such as CFS etc the share of JNPT from northern regions could fall in
the long term. Discussions also indicate that JNPT would continue to capture a substantial proportion of the
Maharashtra traffic.
77
3.2 Captive and Non Captive Market
3.2.1 ICD analysis and identification of captive and non captive market for export import cargo
ICD Analysis
A regional analysis of traffic from various rail ICDs to
Exhibit 3.2.1 CAGR of traffic from ICDs between (02-03 to 05-
JNPT shows JNPTs growth in ICD traffic from 06)
northern regions is smaller compared to overall CAGR Overall
80.00%
growth in Northern regions traffic.
70.00% CAGR JNPT
Currently the demand for port capacity is higher than 6 0.00%
50.00%
supply and the growth in port capacity demand is
40.00%
expected to increase in light of the increase in Indian 3 0.00%
maritime trade and increasing containerisation. 20.00%
10.00%
The traffic in JNPT is expected to grow over the short 0.00%
to medium term. However as other major and private
Tughlakabad
Agra
Ahmedabad
Vadodara
Jaipur
Nagpur
Ludhiana
Pune
players expand capacity, the traffic from northern
region may get redistributed to ports in the western
region due to their proximity to north.
Exhibit 3.2.2 CAGR of traffic from regions(02-03 to 05-06)

Captive Market Owing to Location
The captive and secondary markets for JNPT are 10.00% CAGR Overall
therefore expected to be as follows: 9.00% CAGR JNPT
8.00%
ICD analysis shows that JNPT has been able to 7.00%
6.00%
maintain its share in the western region and even has 5.00%
been able to increase it. Over the long term western 4.00%
region is expected to serve as captive market for 3.00%
2.00%
JNPT due to JNPTs proximity to the western regions.
1.00%
The SEZ planned near JNPT will also generate traffic 0.00%
Northern
Western
and it will be a captive market for JNPT due to its
Region
Region
proximity to JNPT.
Source: CONCOR, Ops Dept Data
78
3.2 Captive and Non Captive Market
3.2.1 ICD analysis and identification of captive and non captive market for export import cargo
Non Captive Market

Exhibit 3.2.3 Captive and Non-Captive Market
ICD analysis illustrates that JNPTs share of
northern traffic is decreasing. This traffic is
getting diverted to other ports in western India.
An increase in JNPTs capacity (planned third
terminal and extension of berth) will aid in
retaining the northern traffic to JNPT. However
over the long term as connectivity and
capacity of other ports increase, this traffic
may get redistributed owing to proximity of
other ports to northern traffic vis-à-vis JNPT
and in the long term the northern regions are
expected to be non-captive market for JNPT.
Non Captive Market

Captive Market
Source: KPMG Analysis
79
3.3 Unique Selling Proposition
3.3.1 Competitive Rating of ports
Introduction
z Kandla
ICD analysis and port user meeting analysis was
used in conjunction to identify port choice z Mumbai
determinants. Port user meetings were conducted z Pipavav
with shipping lines, shipping agents and custom
house agents. The above ports compete with JNPT for export import cargo.
However, the competition for transshipment cargo is based on
Methodology factors as follows
As part of these meetings the criteria for selecting a z Port Location – Distance from major shipping routes
port were discussed along with their importance.
z Frequency of ships
The users were also asked to rate these
parameters across ports. z Port efficiency
The factors that have been identified which act as z Port charges
port choice determinants are as follows z Port infrastructure
z Port location – Distance from the point of z Ease of dealing with port
production/ consumption
Based on the above parameters the following ports were
z Frequency of ships identified as competition for transshipment cargo
z Port efficiency z Cochin
z Port infrastructure z Salalah
z Ease of dealing with port z Karachi
z Hinterland connectivity z Colombo
Based on the rankings ports which have a ranking z Mundra
which is close to JNPT and which serve the same
hinterland were identified and were considered for z Mumbai
competition z Kandla
z Mundra z Pipavav
80
3.3.1 Competitive Rating of ports
Competitive Rating of Ports
Exhibit 3.3.1 Port Choice Determinants
According to the port users the two most
important factors in choice of a port are Port Choice Determinants Importance
z Port Location 1- Most imp.

6 - Least imp.
z Port Infrastructure
Port location (distance) 1
JNPT emerges as the overall port of
choice with Mundra and Pipapav Port infrastructure (number of berths, cranes, terminals etc) 3
perceived to be the next best ports. Hinterland Connectivity 4
Port users believe that in the future Port efficiency (speed & reliability) 4
Mundra and Pipavav have the potential to
capture JNPTs share of market from the Ease of dealing with port (paperwork, contact, etc) 5
northern regions. Frequency 2
JNPT has high ratings in areas such as Port charges (costs/ price) 6
shipping frequency and hinterland
connectivity. Source: Port User Meetings
Mundra and Pipavav are rated highly in

terms of ease of paperwork.
Exhibit 3.3.2 Comparative Ratings from Port Users
It is important to note that the parameters
on which JNPT has an advantage over 90
others are not entirely in JNPTs control 80
These are areas such as frequency and 70
60
hinterland connectivity.
Score
50
40
As frequency and hinterland connectivity 30
of other ports improve JNPT will face 20
competition. Hence JNPT should plan to 10
0
develop sustainable sources of
Mumbai JNPT Kandla Mundra Pipavav
competitive advantage.
Source : Discussions with port users, Source: KPMG Analysis

KPMG Analysis
81
3.3.2 Identification of unique selling points
The three unique selling points of JNPT over other ports

were found to be - Exhibit 3.3.3 Unique Selling Points
Hinterland Connectivity – Hinterland connectivity has 25

been covered in detail in the infrastructure section.
Users believe that inspite of congestion problems, in
comparison to other ports JNPT still rates higher on 20
connectivity. JNPT has the maximum number of regular
trains visiting it. Pipavav and Mundra have a single
track diesel connectivity while JNPT has a double line 15
connectivity.
10
Frequency – Currently JNPT has the highest frequency
of services to major shipping destinations. As a
comparison JNPT had 1772 (977 NSICT and 795 5
JNPCT) vessel calls while Mundra had 480.
0
Infrastructure – JNPT currently has the largest
Port Efficiency Infra Paper Charges Hinterland Frequency
infrastructure in comparison to other ports. The closest
competitor for container traffic, in the western region, to location
JNPT is Mundra. Mundra has 632 metres quay length
and 6 cranes while JNPT has 1280 metre quay length
and 16 cranes (excluding GTIPL). JNPT therefore has
an advantage compared to other ports in Infrastructure. Source: KPMG Analysis
Specific areas of advantage for JNPT are the presence
of 16 CFS operators with 12 new operators scheduled
to begin operations shortly. This is far more than its
competitors
82
3.3.3 Analysis of USPs
Hinterland Connectivity Exhibit 3.3.4 Capacity Utilisation on Railway sections

Currently hinterland connectivity to JNPT is % Line
reaching its peak capacity (See Exhibit 3.15). Length in capacity
S. No Name of Section
Many rail routes are operating at over 100% Kms. utilization (20
capacity. 03-04)
Road connectivity is also facing issues 1 TUGLAKABAD-PAWAL 29 151.7
related to capacity. Apart from persuading the 2 PALWAL-MATHURA 83.4 131.91
Government JNPT can also fund such 3 MATHURA-BAYANA 75.4 84
projects to a certain extent. JNPT has signed BAYANA-SAWAI 140.83 123.2
an MoU to partially fund a road expansion 4
MADHOPUR
project. In the absence of such measure
JNPT faces the risk of traffic diversions to 5 MADHOPUR-GURLA 102.2 128.2
other ports in the future. 6 GURLA-KOTA 5.56 159.6
7 KOTA-NAGADA 224.95 110.9
Dedicated freight corridors will aid in
improving hinterland connectivity further. 8 NAGADA-RATLAM 41.35 137.7
Such plans will also aid competing ports. 9 RATLAM-GODHRA 185.21 137.1
Mundra and Pipavav are also persuading the 10 GODHRA-VADODARA (Z) 67.04 114
Government to improve connectivity. VADODARA (Z)- 2.11 92.2
11
JNPT can explore developing alternate VADODARA (D)
options such as barges, double stacking to 12 VADODARA (D)-BHARUCH 70.12 138.2
remove capacity constraints 13 BHARUCH-SURAT 58.94 138.4
As some of these factors are not totally in 14 SURAT-UDHNA 4.01 139.6
JNPTs control the port might also focus on 15 UDHNA-VALSAD 64.55 137.5
developing other competitive advantages.
16 VALSAD-DAHANU ROAD 74.4 136.9
At the same time, JNPT should also endeavor 17 DAHANU ROAD-VIRAR 63.8 115.3
to persuade the Government in improving
Source: Container Rail Corridors, An Approach Paper
hinterland connectivity.
83
3.3.3 Analysis of USPs
Infrastructure Exhibit 3.3.5 Development Plans of private ports

JNPT currently has the largest infrastructure to
handle container operations. However these will have Port of Mundra
to be enhanced in light of the increasing traffic while • Mundra International Container Terminal (MICT) is
maintaining similar quality. managed by P&O Ports
JNPTs berth occupancy has been between 75 – 80% • The Container terminal comprises of 2 berths is
which indicates requirement of additional capacity capable of handling 1.2 million TEUs per annum.
and an absence of additional capacity may lead to
loss of traffic. • Terminal throughput has doubled over the last one
year and processed over 0.2 million TEUs in 2004-
The planned extension of container berth, GTI and 05.
other planned expansions will help in maintaining the
lead in infrastructure. • Work has begun on a second container terminal
expected to double container capacity of the port by
JNPT should also focus on improving quality and April 2007
quantity of infrastructure. Upgradation of cranes and
VTS are steps that have been initiated by JNPT in • 3 new CFS operators are set to begin operations in
this direction. addition to 3 existing CFS operators
JNPT lacks the infrastructure for ship repairing facility

and there is limited integration of processes through Port of Pipapav
use of IT. These areas may need to be strengthened
in the near future to further improve JNPTs z It is India’s first private sector port with significant
advantage in infrastructure. investments by the AP Moller-Maersk Group
JNPT also has a large amount of land which can z Container traffic at Pipapav was 80,000 containers
serve as a source of competitive advantage through in 2005 and is expected to reach 0.25 million by
development of value added services and facilities. 2006
z Development of a modern container terminal which
on completion will have a capacity of 1 million TEUs
z Facilities to handle double stacked container trains
from the port till ICDs
84
3.3.4 Advantage- Disadvantage of JNPT vs. competing ports
Competing Advantages Disadvantages

port vis-à-
vis JNPT
Mundra z Proximity to northern hinterland z Frequency of services is low compared to JNPT
z Tariffs determination done by port and terminal z JNPT has better infrastructure and CFS network to
operator unlike major ports service containers
z Dedicated freight corridor expected to reduce cost z JNPT currently has better connectivity to various
of transportation and improve connectivity locations than Mundra
Pipavav z Proximity to northern hinterland z Frequency of services is low compared to JNPT

z Tariffs determination done by port and terminal z JNPT has better infrastructure and CFS network to
operator service containers
z Double stacking of containers till select ICDs z JNPT currently has better connectivity to various
locations than Mundra
z Dedicated freight corridor expected to reduce cost
of transportation and improve connectivity
Mumbai z Can service geographically small but significant z Faces significant congestion problems due to city of
hinterland of Mumbai Mumbai when compared with JNPT
z Land for development of backup infrastructure and
CFS is a constraint
Cochin z Ability to attract trans-shipment traffic from route z Currently does not have adequate capacity to service
headed to South East Asia hinterland effectively
z Can convert southern India into a captive
hinterland
Rewas z Captive assured traffic from integration with SEZ z Establishment as port of choice in western region will
and ownership by Reliance, can expect traffic from require significant interest from shipping lines as
Haryana SEZ in north compared to established hub in JNPT
z Can capitalize on the spillover traffic from JNPT
which Is likely to face capacity constraints
85
Chapter 4
Vision , Goals and Strategy
86
4.1 Development of JNPT Vision
With the Indian economy currently poised to grow at a significant rate, there are a number of opportunities that a port
can potentially align itself to. However, each port has its own characteristics that enable it to play a specific role in the
country’s growth. Various factors would impact this positioning including its location and hinterland, its physical
advantages and limitations, its operational strengths and weaknesses as well as its competitive environment. In this
context, the port has to make careful choices about its key focus areas, such that the port can play its service-oriented
role in the regional context.
Our approach to developing the vision for JNPT was based on a combined assessment of a number of internal and
external factors. On the internal front, an overall assessment of strengths and weaknesses with respect to its
competitors was carried out, which assessed JNPT's capabilities with respect to competing ports. This clearly indicated
that while JNPT had capabilities in some key areas, it also faced constraints and issues on the other. On the external
front, a view was taken on the overall potential for cargo growth in the hinterland and the threats that emerged from
competition and changes in the external environment. JNPT faces competition primarily from the ports in western
region. These include the ports of Mundra, Pipavav, Kandla, Mumbai and Rewas. Apart from this the port also faces
competition in transshipment cargo from Salalah, Colombo and Karachi.
Activities leading up to vision development

The vision development process for the port was a participative one, where port senior management and key
stakeholders were involved in discussions related to generation of vision options and finalisation of the eventual vision.
The key activities that were conducted as part of the visioning exercise were:
z Background analysis and opportunity assessment by the consultant
z Conduct of a SWOT workshop with port internal stakeholders
z Discussion of SWOT output and conduct of visioning exercise with port senior management and key external
stakeholders
z Discussion of visioning exercise output with chairperson and senior management of the port
87
The approach for vision development

The approach that was followed for developing the vision was a structured one, which built on the approach and some
key observations identified as part of the inception report. The objective was to systematically develop a positioning for
the port which it can sustain for the next 20 years. It essentially consisted of the following components:
z Identification of key drivers and constraints impacting the port
z SWOT analysis - High-level assessment of the strengths, weaknesses and threats related to the port.
Opportunity analysis was carried out in detail separately
z Preliminary short-listing of opportunities for the port based on identified criteria
z Detailed analysis of attractive opportunities, including traffic projections
z Formulation of vision statement
A summary output of each of the above is discussed in the following sections as a background to
development of the vision.
A number of inputs went into the analysis and discussions at each stage of the vision development process, which
included:
z Analysis of macro-economic factors – Key drivers and traffic projections were derived from macro-economic
and industry trends
z Competitive analysis – The growth plans of competitors as well as their relative positioning have impacted the
share of cargo that JNPT is likely to get.
z Shipping industry analysis – Industry trends in terms of shipping lines, cargo routes and vessel sizes were used
to identify key imperatives for JNPT from a transhipment and sea side capacity perspective.
88
4.1.1 Identification of constraints and drivers impacting the port
Any constructive vision exercise has to take into account the key macro-trends impacting the port and assess the
boundaries within which the port operates. A recognition of these factors allows the port to apply a “reality check”
on any recommendations that are made for its vision. In discussions that were conducted as part of the key
workshops, a number of key points emerged as drivers and constraints for JNPT, which effectively fell into 4
distinct categories. These have been detailed in subsequent pages.
a. Port and Cargo related factors b. Hinterland factors
Drivers and constraints Drivers and constraints
z Consolidation of shipping lines and increasing ship sizes z Significant growth in the hinterland economy leading to an
increase in traffic
z Increase in trade on Asian routes
z The related impact of SEZs and other such initiatives by the
z An increasing trend of shipping lines integrating into port
Government leading to additional growth in traffic
operations
z The introduction of VAT which could impact logistics and
z The export import imbalance in India
distribution (see annexure 1.1)
z The limited area available at JNPT for expansion on the sea-
z Constraints being faced by the port in road and rail
side and land-side in the current location leading to capacity
connectivity
limitations
d. Competitive Environment related factors

c. Regulatory Factors
Drivers and constraints
z The entry of international and national private players into the
z Increased focus on PPP models as a means of rapid port
port sector by setting up competing ports
infrastructure development
z The impact of international ports such as Salalah, Colombo as
z The imperative for major port trusts to operate under MPT act
competition to Indian ports
and TAMP regulations
z Increased security needs across ports and resultant costs at
ports
The purpose of identifying these key drivers and constraints was to set a context to the larger discussions on the
vision and business plan. Key constraints like the limitations on expansion for the port as well as hinterland
connectivity constraints had a strong impact on the eventual set of projects identified for the port. The above
aspects are detailed out in the following pages.
89
Constraints and drivers together define the environment in which an entity operates. While drivers give directional
indications of changes that an entity needs to make, constraints define the limits or rules under which an entity can
change.
Port related factors
Consolidation of shipping lines and increasing ship sizes: Consolidation of shipping lines has had a strong impact on
the bargaining power of ports. An example of this is the port of Singapore which lost almost 15% of its revenues when
Maersk moved to a competing port. Simultaneously an increase in ship sizes would require ports to upgrade/ expand
their equipment to handle the larger vessels.
Increase in trade on Asian routes: The Asian route is witnessing an sharp increase in trade due to growth in the Indian
and Chinese economies. This is leading to increase in capacity requirement of ports. Ports in the Asian region are
therefore facing capacity pressures and are expanding to meet the demand.
An increasing trend of shipping lines integrating into port operations: Integration of shipping lines and port operators is
leading to an increase in bargaining power of shipping lines. Ports therefore need to develop additional services for
retaining and attracting the shipping lines
Export import imbalance in India: The export import imbalance in India will continue over the medium to long term. This
would mean that ports have to plan for additional infrastructure to meet the mismatch. An example of such an impact
would be that sizing of import and export yards need to be matched to volume mismatches in exports and imports.
Limited area for expansion in the current location: JNPT faces limitations in expanding on the sea side as well as the
land side for port operations. As exhibit 4.1.1 indicates, JNPT faces limitations in expansion on the sea side due to
Nhava and Elephanta islands., Similarly land side expansion for port operations is limited due to the presence of Sheva
hill to the south of the terminals.
90
Nhava Island limits expansion onto the

eastern side
NHAVA
Elephanta island limits channel
expansion as it is a heritage site
Elephanta
SHEVA
Sheva Hill limits Land
Side Expansion
Sea Side expansion is limited to this

area
Exhibit 4.1.1 Limited expansion space at JNPT
91
Hinterland factors
Significant growth in the hinterland economy leading to an increase in traffic: JNPT is located close to Maharahstra and
Gujarat. Both these states are witnessing economic growth leading to an increase in international trade. This would
also lead to an increase in demand for capacity. Ports in the region will have to expand to match the rising demand.
The related impact of SEZs and other such initiatives by the Government supporting the growth in traffic: While on the
one hand SEZs and other such initiatives by the government would generate additional traffic there also exists an
opportunity for port linked SEZs as a way to gain captive traffic.
Introduction of VAT could impact logistics and distribution: The introduction of VAT is expected to change the logistics
industry with 3PL operators and organized distribution players entering the market. Ports will have an opportunity to tie
up with such players to become part of an integrated logistics chain. The impact of VAT on port logistics has been
indicated in annexure 1.1.
Constraints in road and rail connectivity: JNPT is likely to face significant pressure on Rail and Road capacity in the
near future. This will act as a constraint as it may hinder the ports development plans.
Regulatory Factors
Increased focus on PPP models as a means of rapid port infrastructure development: Over the past decade, alternate
mechanisms have emerged for port infrastructure development through BOT and PPP models, the components of
which including model concession agreements are being discussed at the highest levels. JNPT was one of the
pioneers in such BOT arrangements and is likely to benefit from similar models in future for port development.
92
The imperative for major port trusts to operate under MPT act and TAMP regulations : All major port trusts (including
JNPT) are governed by the Major Ports Trust Act and TAMP guidelines, which need to be considered when envisaging
a development plan.
Increased security needs and resultant costs at ports: Ports are now under the ISPS code and need to have stringent
security measures which have been tightened as a result of incidents such as 9/11. This has led to increase in costs.
JNPT would need to assess the impact on processes to ensure that the safety and security aspects are addressed
without impacting port efficiency.
Competitive Environment
International and national private players have entered the port sector : JNPT can expect an increase in competition
from private players who are now allowed to enter the port sector. Adani group (Port of Mundra) and Reliance (Port of
Rewas) have already made investments in the sector and this increase in competition from private players is expected
to continue in the future. JNPT would need to factor in this when developing a plan to face competition and maintain its
leadership status.
International ports such as Salalah, Colombo act as competition to Indian ports: Salalah and Colombo act as
competition to Indian ports by acting as transshipment hubs for vessels. Since JNPT does not lie on major shipping
routes the transshipment opportunity may be limited. However, the impact of these ports on regional shipping patterns
and on shipping routes needs to be considered by JNPT while developing its strategy.
93
4.1.2 SWOT Analysis – Strengths, Weaknesses and Threats
The identified constraints and drivers were used as inputs to a SWOT analysis for JNPT, which eventually led to the
development of the JNPT vision. In this section, a summary of the strengths, weaknesses and threats has been
provided, while opportunities have been covered in detail in the next sub-section.
Activities in the SWOT Workshop –

• The SWOT analysis was carried out through a SWOT workshop involving key port stakeholders.
• These stakeholders were divided into groups that individually developed a SWOT matrix for JNPT.
• Inputs from all groups along with KPMG analysis was used to arrive at a perspective SWOT for JNPT.
• The participants of the SWOT workshop were representatives of each of the departments of JNPT in addition
to stakeholders from NSICT, GTI and BPCL
• The following guidelines were provided to the participants while developing the SWOT analysis
Strength
• A port strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage
which the port currently possesses.
Weakness
• A port weakness are resources and capabilities that the port lacks in comparisons to its competitors currently.
Opportunity
• Opportunities provide prospect of profit and growth. Opportunities arise due to changes that are occurring or are
expected to occur in the external environment in which the port operates.
Threats
• Threats are events that can lead to reduction of profit and growth. Threats arise due to changes that are occurring
or are expected to occur in the external environment in which the port operates.
A summary of the SWOT workshop output has been provided in the following pages.
94
4.1.2 SWOT Analysis – Strengths
The following aspects were identified as competitive

advantages/ strengths that JNPT possesses currently.
Some of these were also highlighted in port user meetings Frequency
JNPT – 23
Exhibit 4.1.2 :Unique Selling Points - JNPT vs
as indicated in exhibit 4.1.2
Competition Average – 18.8
Frequency – 25 Infrastructure
Connectivity
Competitive Rating
20 JNPT – 14.67 JNPT – 14.33
JNPT has by far the highest frequency of services to 15 Average – 12.1
Average - 11
major shipping destinations in containers within India, 10
5
allowing significant flexibility to port customers. 0
Infrastructure –
fra
nd
cy
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n
pe
ge
nc
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In
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Pa
ue
ar
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Ch
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JNPT has over 2000 m of quay length for container
Ef
Hi
Fr
rt
Po
handling, 24 quay cranes and a well developed CFS
network, which places it at a competitive advantage as
compared to competing ports (Comparison of
infrastructure with other ports has been indicated in
Exhibit 4.1.4).
Exhibit 4.1.3 : Direct Connectivity to
Connected to major locations in hinterland - major ICDs
JNPT currently has well-established rail and road ICD Name ICD Name
networks connecting it to many parts of the country.
New Delhi- Hyderabad -
JNPT has the largest number of regular trains visiting it as Tughlaqabad Sanatnagar
compared to competing ports in India allowing multiple
access options to port customers as seen in Exhibit 4.1.3 Ludhiana - Dhandari Jaipur -
Kalan Kanakpura
However JNPT has started to face pressures on
connectivity and these have been discussed separately in Ahmedabad-
threats. Sabarmati Kanpur
Location – Indore - Pitampur Delhi - Dadri

Due to its proximity to states with strong economic activity,
Nagpur Jodhpur
JNPT is well located with a well developed captive
hinterland. This has been discussed in detail in
subsequent sections.
95
Exhibit 4.1.4 : Connectivity and Infrastructure of Competitors
Facilities Container Handling Equipment Primary Cargo Type Connectivity
Regular services of over 2000 trains
16 Quay Cranes, 47 RTG annually.
JNPT (excluding GTICT having 8 Containers
quay cranes) It is connected through broad gauge double
line tracks to western and central rail network
MbPT Railway is connected to the Indian
Crude, Liquid Bulk and Dry Railways at Raoli Junction at Wadala. The
Mumbai 2 quay cranes, 3 RTGs
Bulk port is connected to Central and western
railways and exchanges 3-4 trains a day
Currently connected through a single line.
Mundra Primarily dry cargo The regular services at MICT is over 500 and
International in 04-05 516 trains were serviced at Mundra
6 Quay Cranes, 18 RTGs Focus on containers has
Container
Terminal increased Connectivity to nearby junctions is being
improved through addition of tracks
3 Railway sidings and double stacking
Pipavav - Dry Bulk capability
Currently connected through a single line
Has connectivity to the western rail network
Kandla - Liquid (POL and crude)
through a broad line
Cochin is connected through a double line to
the Indian rail network. Rail connectivity is
Dry Bulk and Break Bulk
being added between Cochin and
Cochin 2 Quay Cranes, 9 RTG Focus on containers has Vallarpadam.
increased
Concor runs on demand services between
northern regions and cochin
Colombo 22 Quay Cranes, 67 RTGs Containers
11 (Super post panamax), 1 General Cargo and
Salalah
(post panamax), 30 RTG Containers
Karachi
Containers and Dry Cargo.
International 6 quay cranes (KICT) 2 Quay
The port trusts plans to
Container Cranes (PICT)
increase container terminals
terminal
96
Financial Position – Exhibit 4.1.6 : Proposed Land use Distribution for

JNPT has a healthy financial position with strong reserves unutilized land of 1978 ha at JNPT
and minimal liabilities. Exhibit 4.1.5 indicates that Sl. Land use Area (in Ha)
profitability ratios have gone up over the last few years. No
A Developable:
Availability of Land – 1 Residential 162
JNPT has over 1200 hectares of developable land 2 Port operational Activities 670
available( 670 ha of these are land demarcated for port 3 Commercial 45.64
operational activities) , which would be required for
supporting port expansion requirements in the near future. 4 Social facilities 2.07
The Exhibit 4.1.6 details the land use distribution plan. 5 Open space 3.57
6 Public utilities 61
7 Road network 206
Exhibit 4.1.5 - Profitability Indicators 8 Rail network 50
Net Profit Ratio ROCE Operating Profit Margin Ratio Total Developable Area 1200
70.00% B Non-Developable Area:

60.00%
1 Mangrove & Nature park 713.5
50.00%
2 Tree Belt 41
40.00%
30.00% 3 Channels (Adjoining Nhava 23.50

20.00%
creek)
10.00% Total Non Developable area 778
0.00%
2002-03 2003-04 2004-05 2005-06 Total Gross Area 1978
Source: Final Draft Report on Reserve Price fixation for 1200 ha
ROCE – Return on capital employed land at JNPT – CIDCO, May 2006
97
Maintaining the competitive strengths of JNPT

Maintaining the competitive strengths of JNPT would require key action steps to be taken by the port on an ongoing
basis, identified in Exhibit 4.1.7:
Exhibit 4.1.7 : Action steps to maintain strengths of JNPT
Strength Key Action Step
Focus on providing appropriate services and infrastructure and increase marketing

functions role and strength to maintain frequency of traffic. The marketing function
Frequency/ regular services
could develop strategies to retain shipping lines based on customer management
initiatives.
Upgrade Infrastructure in sea side and cargo handling to improve throughput from
current facilities. Equipment such as RMQC, Tugs etc may need upgradation to
Infrastructure
maintain world class performance levels. These investments need to be made to
ensure JNPT's competitive strength in port infrastructure.
Connected to major locations JNPT should endeavor to maintain its well connected status by ensuring connectivity
in India to planned major corridors such as Golden Quadrilateral etc.
Leverage financial position to invest in future development plans. Opportunities for

Financial Position investment should be actively sought and followed, based on prudent financial
reasoning.
Identify and implement opportunities for land usage, which are complementary to the
Availability of Land ports strengths. Areas such as logistics are possible value-added opportunities which
JNPT could exploit.
98
4.1.2 SWOT Analysis – Weaknesses
Exhibit 4.1.8 : Comparison with competitors –

Some areas of competitive disadvantage
which were identified for JNPT were as Distance from major shipping routes
follows: Port Location w.r.t major shipping routes (Nautical Miles)
Restrictions arising from limited draft – Approx. diversion from Europe Asia Route: 1656
Mumbai
Only vessels with a maximum draft of 12.5 Approx. Diversion from America-Far east Route: 888
m can arrive at JNPT using tidal window.
Vessels with a draft above 12.5 m cannot Mundra
Approx. Diversion from America-far east Route: 1340
call at JNPT at any state of the tide.
Distance from major shipping routes for Pipavav
transshipment– Approx. Diversion from America-far east Route: 1088
Ships visiting JNPT require significant Approx. Diversion from Europe Asia Route: 1566
Kandla
deviation from major shipping routes as Approx. Diversion from America-far east Route: 1390
seen in Exhibit 4.1.8.
Competitors like Salalah, Cochin and JNPT
Colombo have an advantage of significantly
lesser deviation from mainline routes such Approx. Diversion from Europe Asia Route: 1849
Cochin
as Europe Asia and the America- far east Approx. Diversion from America-far east Route: 306
route.
Limited space for expansion from a long- Colombo
term perspective –
Elephanta island limits the sea side Salalah
expansion due to its status as an Approx. Diversion from America-far east Route: ~2093
archaeological site. Approx. Diversion from Europe Asia Route: 1469
Karachi
Sheva hill acts as a natural barrier to the Approx. Diversion from America-far east Route: 1340
expansion of container yard operations.
Assumption: For Europe Asia Diversion point is Aden for America- far
The physical limit of expansion of the port east diversion point is Colombo, America- Far east route is via South
will probably have been reached after Africa
dredging and reclamation for fourth
container terminal.
99
Sub-optimal utilization of space around port – Absence of IT connectivity –

Certain pockets of land such as some CFS The absence of IT connectivity in internal port operations
operators are being sub-optimally utilized impacting such as between terminals for handling mixed trains impacts
port operations port operations.
Contractual stipulations do not enforce utilization
levels and throughput guarantees (e.g. CFS
operators)
Customer service –
With competition expanding, JNPT will need to
improve its customer facing processes through
improved marketing and account management
Shortage of staff in key areas –

JNPT is facing shortages of skilled staff such as
marine engineers, pilots and IT. Rise in average age
of staff is also an area of concern for the port.
JNPT faces issues in retention of people owing to
competition from private sector offering larger
incentives.
Infrastructural limitations for liquid cargo –

Pipelines used at the liquid cargo jetty are of limited
diameter and need to be upgraded for higher flow
rate
100
Addressing weaknesses from a competitive perspective

While some weaknesses (e.g. customer service) can be addressed by JNPT through developmental activities,
others will be more difficult to address. A high assessment of key action steps needed to address some of these
weaknesses has been indicated in Exhibit 4.1.9 below
Exhibit 4.1.9 : Implications of Weaknesses
Weakness Action Step
Distance from Major shipping JNPT should carefully evaluate the trans-shipment opportunity before choosing
routes the same as a focus.
Revamping of pipeline network to ensure optimum flow rates from the ships to the
Infrastructural limitations for
tanks. This would also lead to reduction in time consumed in pigging etc and
liquid cargo
therefore increase the liquid cargo capacity.
Dredging to permit larger vessels in line with the requirements of future ship sizes.
Restrictions arising from
JNPT should endeavor to be able to handle a majority (over 84%) of the ship sizes
limited draft
that sail in the region (Europe Asia Route)
JNPT needs to undertake measures to optimize current utilization of space both

Limited space of expansion on sea side and land side, this would entail upgradation of equipment and
automation.
IT Connectivity Implement mechanism to IT enable activities at the port to largest extent
101
4.1.2 SWOT Analysis –Threats
Hinterland Connectivity - Exhibit 4.1.10 : Analysis of Shortage of trains
One of the most significant threats to JNPT's future JNPT

plans is the increasing pressure on road and rail (includes
connectivity. both
terminals) GTI *
The number of trains required in JNPT is expected to
go up in the future with an increase in traffic as seen TEUs handled (2005-06) 2661801 1300000
in Exhibit 4.1.10. The marshalling yard at Jasai and % By rail ** 25.6% 25.6%
key rail corridors are facing saturation pressures as
seen in Exhibit 4.1.11. Details of the rail terminals TEU to be handled by train 681421 332800
and train calls have been included in the inception
No of trains in a year 7571 3697
report.
Trains required per day 20.74 10.1
The current road infrastructure is facing pressures
leading to congestion at various places in the port Adj. Trains required per
area. The issues that need to be addressed are day *** 13.8 6.73
• Single evacuation route dependence.
• Separation of container and passenger traffic Actual trains in 2005-06 4204
at various junctions.
Actual no of trains in a day 11.5
• Shortening road access between key points.
• Separation of container and trailer traffic from
other vehicles. Mismatch 2.3
• Widening of roads for movement of container

traffic. * Requirements when operations ramp upto ultimate
• Providing parking and other infrastructure to capacity
tractor trailers. ** Share of Rail in total traffic as per JNPT data 2005-06
•JNPT has undertaken steps to address some of *** Adjusted for peak surges and cargo carried in/ out by a
these issues. These include formation of SPV to train
develop road, widening of port road etc.
Source : KPMG Analysis , Details in inception report
102
Exhibit 4.1.11 Rail Connectivity to Hinterland
103
Source RITES Report
4.1.2 SWOT Analysis –Threats
A number of other threats are also being faced by JNPT currently, which might require a careful assessment of
future development plans in this light.
Exhibit 4.1.12 : Imperatives arising from threats at JNPT
Other emerging Threats Imperatives for JNPT
Increase in Competition
• Value added services to retain traffic from northern
• JNPT will face increasing competition in the future regions
from private terminal operators
• Strengthening of marketing function at JNPT to attract
• The new ports will attract traffic from Northern regions and retain customers
in the future
Increasing Complexity of multiple terminals

• Complexity would arise due to increase in number of
terminal operators in areas where shared resources
are involoved. An example would be mixed train
(Train carrying cargo for more than one terminal) • Improving processes and increasing automation to
handling as it would require various terminal operators ensure smoother operations
loading/unloading on the same train.
• Similarly other processes where common
infrastructure is used such as port roads etc will face
increasing pressures
Increasing bargaining power of shipping lines
• Globally a few shipping lines control majority of the • Development of a marketing strategy and strong value
traffic. Currently the top 20 shipping lines comprise proposition to retain customers.
over 90% of the global maritime traffic.
104
4.1.3 Preliminary short listing of opportunities
Identifying the universe of opportunities

In a growing economy, there are a significant number of growth opportunities, which a port can exploit. These were
essentially categorized into three types for an assessment at a high level.
Opportunities arising from export-import traffic: These opportunities covered cargo opportunities that arise from the
export import trade in India. The opportunities included are
• Container
• Break Bulk
• LNG
• POL/crude
• Chemicals
• Coal
• Dry Bulk
• Ro-Ro
• Cruise
Opportunities arising from Transshipment traffic: The transshipment traffic opportunity for JNPT can arise from primarily
two routes, namely
• Europe Asia Route
• America- far east Route (via south Africa)
JNPT could evaluate opportunity to act as transshipment hub on these routes
Value Added Opportunities: These opportunities covered areas that were beyond the core operations of the port but
were expected to supplement core port activities. These included:
• Logistics Opportunities
• Other related opportunities
105
Short-listing of opportunities
The opportunities identified were evaluated at a preliminary level using specific criteria. These were then combined to
give an overall score on “alignment to capabilities” and “market attractiveness” which were then used to filter the
opportunities. The preliminary analysis considered the following aspects:
• Revenue – A high-level assessment of revenue that can be generated from pursuing the opportunity. This was a
major factor in arriving at the market attractiveness score.
• Safety Health and Environmental Effects – The impact of handling dangerous or dirty cargo next to clean cargo
was considered as part of this parameter. This was a major factor in arriving at the alignment to capability score.
• Sustainability of revenues – This was based on the stability of growth that can be achieved if the opportunity is
pursued. This also contributed to the market attractiveness score.
• Availability of external supporting infrastructure (external) – Availability of external infrastructure helped in
assessing the challenges that will be faced in pursuing the opportunity. This contributed to market attractiveness
as well as the alignment to capability score.
• Resources used – Resources that the port would have to expend at a high level in terms of land or other
resources to pursue the opportunity was also a consideration in evaluating the opportunities.
• Growth potential - This growth that could be achieved if the opportunity was pursued was a significant contributor
to the market attractiveness score.
A high-level assessment was carried out on the basis of the above parameters to arrive at the market attractiveness
and alignment to capability scores.
106
Cargo
Opportunities
First Level of Shortlisting
Parameters for analysis

of Opportunities
• Revenue
• Safety, Health and Environmental
Effects
• Sustainability of revenues
• Availability of supporting
infrastructure (external)
• Resources used
• Growth potential
Market
Attractiveness
Score
Short Listed
Opportunities
Alignment to
capabilities
107
Based on the above analysis, opportunities were rated as shown below. Cargo types like Dry Bulk, Break Bulk were
observed to lack from a market attractiveness as well as a JNPT capability perspective. LNG was perceived to be of
uncertain stability and growth potential. Coal as a “dirty” cargo was not aligned with JNPT's positioning as a general
cargo port. The Ro-Ro and Cruise opportunities seemed attractive financially but were not aligned to the specific
capabilities of JNPT. Container and liquid cargo emerged as attractive opportunities. Based on the above criteria,
detailed analysis was taken up for specific export import cargo types in the next stage, i.e.-
• Container
• Liquid cargo
High
z Container
Alignment to capabilities
Crude & POL

Medium
product
z Cruise
Enter/ Build the z Chemicals & other
opportunity liquids
Re Evaluate and
z RO-RO
decide
Low
Do not enter the z Dry Bulk

opportunity
z Break Bulk • Coal
z LNG
Low Medium High

Market Attractiveness
108
4.1.4 Detailed assessment of opportunities
A more detailed assessment of the selected opportunities was discussed in the vision workshop, which was used to
obtain additional senior management inputs to arrive at the set of opportunities which JNPT which would focus on from
an end-state perspective. The set of opportunities considered for detailed assessment included the following:
• Export Import Cargo

• Container
• Liquid Cargo
• Transshipment (coastal and regional)
• Distribution Hub (Regional distribution facilities/warehousing)
• Logistics Hub (warehousing, distribution, logistics and packaging)
These opportunities were analyzed in detail based on four key parameters

• Strength/Weakness of port with respect to the opportunity
• Revenue potential
• Growth potential
• Sustainability/ Stability of revenues
A summary of the analysis of these opportunities has been provided in annexure 1.2 to provide an assessment of
the discussions that took place on these opportunities. The analysis that has been carried out was used primarily to
facilitate discussions from a JNPT perspective.
109
4.1.4 Detailed assessment of opportunities - Summary
A summary of the opportunity landscape was prepared for JNPT based on revenue potential and growth and
sustainability as shown below, which was used for further discussions during the vision development stage. This
landscape is based on the assessment of opportunities detailed in annexure 1.2. Benchmark figures are based on
JNPT data and industry research as illustrated in annexure 1.2.
Opportunity Landscape for JNPT
1100 Cr
(2000Rs/TEU)
Export Import
Container traffic
110* Cr
(2.75 Crore/hectare, 40
hectare developed)
Revenue Potential
Transshipment FTZ 90* Cr

Logistics Hub (2.25 Crore/hectare, 40
hectare developed)
180 Cr
(2000Rs/TEU, 25% 80* Cr
mkt share) Distribution Hub
(2 Crore/hectare, 40
hectares developed)
10* Crore
POL & Liquid (BOT basis)
Growth and Sustainability Potential

* Excluding revenues from traffic generated due to these initiatives
110
4.1.5 Vision
Vision Workshop –
The visioning exercise was carried out keeping a few key factors in mind -
JNPT has limited sea-side and land-side resources which it must use prudently.
The choice of vision has to be aligned to the activities that are already undergoing at the port. Changing the priority of
the port completely to a different type of cargo form what it is handling today could be retrogressive, even if the
alternative opportunity was attractive
Value-added opportunities must be aligned with the vision of the port and the expected priorities in the future. An
objective to purely maximize the economic value of the available land may lead to sub-optimal decisions.
Key participants in the vision development exercise were representatives from the following entities:
• JNPT Heads of Department • Customs and Excise Department

• NSICT • Central Railways
• GTI • CONCOR
• BPCL
• Indian National Ship Owners association
• Container Shipping Lines association
• Mumbai and Nhava Sheva Ship Agents
association
Mechanism of the Vision workshop –
After the detailed opportunity assessment discussions, stakeholders were divided into groups and asked to carry out a
resource allocation exercise. Out of the resources at JNPT, a specific percentage had already been deployed into
containers and liquids. Stakeholder groups had to allocate the remaining resources of the sea and land side between
cargo categories. In addition to a focus on cargo types, participants were also asked to identify key value added
opportunities that would complement the cargo focus.
Each group was presented with examples of vision statements that JNPT could choose depending on the resource
allocations in the earlier exercise. Groups could either choose one of the alternative vision statements or create their
own vision statement keeping in mind their resource allocations. Each group therefore came up with a distinct vision
statement and a prioritization of resources. These statements were combined to arrive at a vision statement for the
port after discussion with the stakeholders as shown in Exhibit 4.1.13.
111
4.1.5 Vision
Exhibit 4.1.13 : Vision and Elements of Vision for JNPT
“To be recognized as India's premier container port providing integrated

logistics services to the best interest of trade and customers”
Focus Cargo • Container

types • National Export Import Trade
• Logistics
Value Added • EPZ (Export processing zone)
Services • Warehousing
• Involvement in hinterland connectivity ventures

Other Guiding • Ensuring safety and security at the port and development in the area
principles around the port
• Expanding capacity and upgrading equipment in line with customer
requirements
• Coastal and regional transhipment

Other Cargos
• Ro-Ro
Serviced • Liquid
112
4.1.5 Vision
Elements of the Vision

The vision arrived at by JNPT had several distinct elements to it. Each of these elements have a impact on the manner
in which JNPT executes the vision over the period of the business plan. The elements of the vision are -
Focus business areas
Other Cargoes serviced
Geographies of focus
Value Added Services
Guiding Principles
Focus business areas

JNPT will maintain a clear focus on containers as its core business and will attempt to remain India’s largest container
port providing customers with the best container handling experience in the country.
Other Cargoes Serviced

JNPT will also serve coastal trans-shipment needs of the Indian sub-continent for traffic that arrives at the port in its
natural course of operations. This cargo is likely to be trans-shipped coastally from other smaller regional ports. The
port may not actively invest additional resources in seeking transshipment cargo. This transshipment cargo is likely to
be regional or coastal in nature.
Since the infrastructure required for Ro-Ro services is largely similar to that of containers, JNPT will be ready to service
Ro-Ro in the future in case the market for Ro-Ro expands and the potential for containers falls.
Since JNPT has already committed resources to liquid cargo it will continue to serve this cargo in the future. It will also
enable JNPT to derisk its cargo profile going forward.
113
4.1.5 Vision
Geographies of focus
JNPT will focus on attracting the largest share of traffic originating from or destined to its natural hinterland of
Maharashtra as well as retaining market share of traffic from the northern hinterland.
Value Added Services

JNPT will conceptualize and establish a state of the art logistics hub offering -
• Warehousing and forwarding facilities (including storage/stuffing/stripping of containers)
• Value added services – processing of goods according to specific customer and country-of-destination
requirements, packing and re-packing, labeling and assembly, sorting and invoicing
• Free trade zones/export processing areas
• State of the art communications infrastructure
• Multimodal transport facilities
JNPT will also attempt to enter into partnerships with various container rail freight operators so as to develop dedicated
services to JNPT from northern hinterland. This gains importance in light of 13 new licenses for container rail freight
handling operations having been issued by the Government of India. JNPT could enter into partnerships with one or
more of these players to offer a regular service to exporters/importers. Such a partnership would help in retention of
JNPT traffic from the northern hinterland.
Guiding Principles
JNPT's guiding principles are obtained from its current mission statement which stresses on fulfilling the needs of the
nation as well as ensuring safety and security. The significant guiding principles derived from the mission statement are
• Ensuring safety and security at the port and development in the area around the port
• Expanding capacity and upgrading equipment in line with customer requirements
114
4.2 Identification of goals
4.2.1 Goals from Vision
Development of a business plan aimed at achieving the

vision requires that the vision is cascaded to goals and a Exhibit 4.2.1 :PERSPECTIVE PLAN
strategy to achieve those goals is developed.
The goals and strategy are then converted into an action Trends Capability
Vision
plan for the organization.
Forecasts SWOT
It is imperative to understand that goals should be
analyzed to assess the time period within which they can
be achieved. This would help in differentiating between Barriers Goals Dev needs
long term goals and short to medium term goals.
The short to medium term goals need to be converted into
an actionable plan that can be implemented and monitored
by the port while the long term goals should be evaluated
Long Term Goals
at a later stage and an action plan for the same should be
developed at that time. This is because an action plan for a
long term goal might become irrelevant in light of the
changing scenario and emerging trends in the industry over
the long term.
Characteristic of a well defined Goal Strategy Short Term Goals
KPMG has followed a set of principles to ensure that the
goals developed for JNPT are specific, actionable and time
bound Action Plan
z A goal should be specific and aligned with the vision
z A goal should be relevant to the vision and should address
critical aspects of an organization (capacity, service Operation Plan
offering and efficiency etc)
z A goal should be time bound and an immediate or medium
term goal should have a specific time line attached to them Project 1 Project 2…
z A goal should be achievable and should not consist of
unrealistic aspirations
ACTION PLAN
115
Identification of Goals
Each element of the Vision is analyzed to identify the goals that would be required to achieve the vision
ELEMENT OF VISION RESULTING GOAL
• Expanding capacity and upgrading Achievement of this element would require JNPT to expand to its
equipment in line with customer maximum capacity at the current location. KPMG assessed the
requirements maximum capacity of the port through an integrated model and the
goal arrived is:
• Enabling Indian trade through JNPT, To enable Indian trade smoothly and efficiently JNPT would need
efficiently and smoothly to further improve its efficiency and service levels to international
benchmarks.
z Improve efficiency across the port to achieve 2200 TEUs/m
quay length
• To provide Integrated Logistics services This would require JNPT to develop logistics capabilities and the
resulting goal would be
• To become India’s premier container To become a premier port JNPT may need to evaluate expansion
port into new locations or expand further in the current location. The
resulting goal would be:
z To expand JNPT to new locations
116
Identification of Goals
Each element of the Vision is analyzed to identify the goals that would be required to achieve the vision
ELEMENT OF VISION RESULTING GOAL
• Increased involvement in hinterland This would require JNPT to

connectivity ventures
As can be seen the Goals identified deal with the following critical aspects:
z Capacity
z To expand JNPT to new locations
z Efficiency
z Improve efficiency across the port to achieve 2200 TEUs/m quay length
z Service offerings
117
4.2.2 Analysis of goals
PRIORITIZATION OF GOALS
z Achievement of the vision require a sequence of goals Exhibit 4.2.2 Framework to analyze goals
to be achieved by JNPT. KPMG has evaluated these
goals on the following parameters to ascertain their
timeframes and to make each goal time bound:
z Ease of implementation – This factor takes into Low
consideration various aspects that have an impact
on the implementation of the goal. These would
include
− Resources required – Each goal would require
Long Term
a different set of resources for its
implementation. An assessment of the
availability of resources with the port vis-à-vis
resources required was used to evaluate this
parameter
− Capability – JNPT has traditionally been a port
operator and off late is developing into a

landlord port. This parameter would evaluate Short Term
JNPTs capability in achievement of the goal
− Business Environment – This factor includes
factors such as market demand, competition,

entry barriers, regulatory aspects etc to
evaluate whether the environment is conducive
to achievement of a particular goal High Low
z Criticality – This parameter measures if a goal is Criticality
critical to the vision. A highly critical goal would
have to be achieved at the earliest even if it scores
low on ease of implementation
118
GOALS Parameter & Analysis Score
Resource Required: Several private operators have evinced interests
in developing capacity at JNPT through a BOT model. In such a
scenario the capacity of the port can be expanded through private
sector investments . This indicates low resource requirements from
JNPT.
Capability: JNPT has experience in undertaking BOT based
expansion projects. MEDIUM –
HIGH
Business Environment:: Currently Indian ports are facing capacity
Achievement of 10Mn constraints and there is a significant demand for port capacity in light
TEUs of traffic at JNPT of increasing export-import traffic from India. There are a number of
private players that are willing to invest in the sector. The demand
and attractiveness of the port sector have created a conducive
environment for expansion of port capacity in India.
Criticality
JNPT is facing saturation pressures and would require to increase its MED-HIGH
capacity without which it might lose market share to other players in
the region. Hence the criticality for expanding capacity is high
119
Goals Parameter & Analysis Score
Resource Required: Investment required for efficiency improvements
consist of upgradation, replacement or process improvement
initiatives such as new RMQCs, sea side equipment etc. The
resource requirement for such projects is lower than that of capacity
creation projects where new infrastructure needs to be created.
HIGH
Capability: JNPT has high efficiency compared to other ports and is
capable in managing efficient operations.
Improve efficiency across
Business Environment:: International players have entered the Indian
the port
port sector and competing with them would require international best
practices and benchmarks.
Criticality
JNPT is facing constraints limiting its capacity and would require to
increase its capacity in the current location through efficiency HIGH
improvements to meet market demands. Such an improvement
would also result in incremental reduction in costs. Hence the
criticality for expanding capacity is high
120
Resource Required: JNPT has available land which can be used for
development of value added services. The additional resources
required primarily consists of land development costs which are
lower in comparison to capacity creation investments.
Capability: JNPT does not have experience in offering value added MED-HIGH
services such as logistics, warehousing etc
To develop logistics Business Environment: The development of SEZs near the port
capabilities and services at would attract industries closer to the port. JNPT can further provide
JNPT complimentary services such as warehousing etc which are not the
core offering of an SEZ
Criticality
The growth of traffic in northern regions in comparison to growth of
traffic in JNPT indicates that there is some diversion of traffic to HIGH
western ports. Under such circumstances it is critical for JNPT to
develop value added services which could further strengthen its
value proposition and aid in retaining/ attracting traffic
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Resource Required: Development of a port at a new location would
require significant resources for creation of infrastructure, land
development etc.
Capability: JNPT has experience in operating a terminal as well as in
developing port infrastructure.
LOW-MED
Business Environment:: Entry of private sector players in ports sector
has increased competition in sector. Currently, a number of players
Expand into new locations in the sector have developed expansion plans and it is expected that
capacity requirement for the region would be met by these expansion
plans. Over the long term however there would be a shortfall in port
capacity in the region.
Criticality
An expansion in the current location and operational improvements
will enable JNPT to retain and attract traffic as well as maintain its LOW
premier status over the short to medium term. Hence it is not very
critical for JNPT to expand into new locations immediately
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Resource Required: Significant resources would be required by
JNPT to enter the rail freight business including investments for
obtaining a license and for operations. JNPT would need to enter into
a tie-up with a player to implement this strategy.
Capability: JNPT does not have experience in operating a rail freight LOW-MED
business.
Business Environment: There are a number of players who have
obtained the license and it is envisaged that there would be high
competition in the sector over the medium term. Presently, the
business environment is not highly conducive.
Criticality
Invest in rail freight
business An additional line leading upto the port has recently been laid. Also
the DFC (Dedicated Freight Corridor) and entry of private players in
rail freight business is expected to increase the efficiency of the
system
In such a scenario it is expected that the efficiency of the system
would improve and JNPT would get benefits even without entering
LOW
into the sector. Traffic projections also suggest that JNPT would
attract traffic from northern regions in the medium term due to
absence of capacity elsewhere.
CONCORs investment at JNPT would also lead to improvement in
connectivity to JNPT by rail over the medium term,
Given the above facts it is not immediately critical for JNPT to enter
the rail freight business.
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Low
Long Term
Expand into
new locations
Invest in rail
freight
business
Achievement of
10Mn TEUs of
traffic at JNPT
To develop logistics
capabilities and
services at JNPT
Improve
efficiency
across the port
Short Term
High Criticality
Exhibit 4.2.3 Short and Long term goals
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Short Term Goals Timeline
• Achievement of 10Mn TEUs of traffic at JNPT 2015-16
z To develop logistics capabilities and services at JNPT 2010-11
z Improve efficiency across the port 2013-14
The goals listed above should be achieved by the port in the short to medium term to realize its Vision. The Short
term goals are within a planning horizon of 7-8 years and should be achieved within this time frame. This would
enable JNPT to maintain its leadership status and increase its capacity as per the requirements of the customer.
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Long Term Goals

• Invest in rail freight business
z Expand into new locations
The long term goals act as guiding principles for the development of ports future strategy. The long term goals as
identified have been provided below. Also it should be noted that an action plan for these plans should be developed
at a later stage however preliminary activities for them should be considered in the near future.
The goal for expansion into new locations would require the port to assess, evaluate and shortlist locations for
expansion before investing into any locations. This is expected to be a long process and the port should therefore
initiate steps in this direction over the next few years. JNPT should set up a task force by 2010-11 which would focus
on evaluating various locations for expansion.
The long term goals for JNPT would enable the port to further expand capacity, build a Unique Selling Proposition in
the area of logistics and would improve JNPTs relationship with the population in the region.
Role of the port
It is envisaged that the port will increasingly play the role of a landlord with limited presence in port terminal
operations (JNPCT). The role of the port would be to manage the support and common infrastructure of the port and
working as a planning authority for the port.
JNPT will evolve primarily into a landlord port facilitating services by terminal operating companies and other
providers. The solitary terminal will be the responsibility of JNPT over the medium term horizon of the plan period
Expansion into New Locations
JNPT is expected to reach its overall capacity (under the current geographical and policy restrictions) of 10.9 Mn
TEU in 2015-16. This is because of the current status of restrictions on expansion in the immediate surroundings.
JNPT would therefore need to explore opportunities for expansion beyond its current boundaries. JNPT has two
options for expansion which are described below:
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Expansion towards Nhava Island
JNPT can expand towards the Nhava Island and develop additional terminals at Nhava. These terminals would aid in
increasing JNPTs traffic handling capacity. The terminals would require JNPT to carry out a detailed technical and
financial assessment of the Nhava Island area.
Based on preliminary observations it is expected that JNPT can extend the current channel towards Nhava and use
the land at Nhava Island to create backup area for the terminals. The roads and rail for the terminals can be planned
such that they do not lead to congestion on existing road.
Currently regulations and policy guidelines issued by the Prime Ministers Office do not allow JNPT to expand into the
Nhava Island area however, given the potential of the region (over 25 Mn) the policy can be reexamined.
It is also important to note that there are environmental difficulties which would have to be overcome to successfully
develop terminals in Nhava island. This is because the Island has Mangroves and development of terminals would
restrict the circulation of sea water supply. To overcome the same a channel would need to be created to ensure
circulation of sea water to the mangroves.
z Expansion to new locations
JNPT can also explore the opportunity to expand into new locations. The new locations could be in the same region
and about 80-100 Km away from the existing port. The new port can act as a sister port to the existing port and
customers can be provided services across both the ports. The port can explore a number of options to expand into
new locations as listed below:
z Public private partnership to set up a new port : JNPT and a private developer enter into an MoU to develop the
port and enter as equity partners
z Acting as a development authority for the port :Here the government invests in the venture and hands over the
development activity at the port to JNPT. JNPT then enters into BOT for terminals with private parties for
operations
z Taking up container terminal operations in such a port set up by a 3rd party : JNPT could enter into a different
area by attempting to be a terminal operator with investments at the new port, in a departure from its role as
development authority
A decision on the mode of entry would be based on those capabilities of JNPT that would help in development of
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greenfield port –
z Port Development capabilities (infrastructure, roads etc)
z Marine capabilities
z Terminal operation capabilities
z Experience in forming PPP’s
z Ability to attract private operators to invest
It is important to mention that the attractiveness of these options would to a large extent be determined by the
business and regulatory environment prevailing then, which is something that cannot be factored in now
It is expected that the development as port authority has the highest alignment with the port’s capabilities. Its financial
benefit would to a large extent be determined by the agreement entered into between various stakeholders
(Government, port, private players)
The role of JNPT in such an arrangement is envisaged to be that of a port development authority responsible for
development of basic infrastructure. The operations of the terminal would be handed over to private players on a BOT
basis. Such a PPP model would be an attractive option financially for JNPT and could be a profitable use of the
investible surplus which would be created post 2015-16.
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4.2.3 Perspective plan
The broad level time frames for the goals were ascertained based on the “Ease of Implementation vs. Criticality”
framework. The short term goals were further analyzed through an integrated capacity assessment model to
determine key timelines for the short term goals. The long term and short term goals together form the perspective
plan for JNPT. The perspective plan, through the goals, focuses on following key aspects:
z Capacity Creation:
JNPT would endeavor to expand capacity at the current location to the extent possible. The integrated capacity
assessment model developed by KPMG (detailed in later sections) indicates that JNPT can achieve 10.9 Mn TEUs
from the current location. JNPT should therefore aim at achieving a target of 10 Mn TEUs over the next 7-8 years.
JNPT would face capacity limitations beyond the year 2015-16 and would need to explore expansion opportunities in
areas outside the current location. JNPT would have multiple options in locations as well as mode of entry. It can
expand into a new port as a terminal operator or a JV. Similarly JNPT can develop a new port and operate it as a land
lord port (wherein JNPT acts as the land lord). These locations and mode of entries need to be considered by JNPT
after 3-4 years. This is primarily because the nature of the industry could change over the long term and hence the
options need to be re-evaluated 3-4 years later to assess their alignment with the vision. An action plan for the same
should only be made post an evaluation of the goal at a later stage.
z Efficiency Improvements:
JNPT would also aim at improving its efficiency to match and surpass international benchmarks. In this regard JNPT
would need to invest in areas such as up gradation and automation. JNPT would also improve its IT infrastructure to
improve process efficiency and reduce process time.
z Service Offerings:
JNPT would provide its users with a value proposition that is superior to competition. This would be done through
addition of service offerings at JNPT. Over the short to medium term JNPT would expand its value added services
portfolio by setting up an FTZ/EPZ and CFSs and empties yard within the port
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4.3 Strategy to Achieve Goals
The overall strategy of JNPT should enable a framework within which the goals can be achieved. The aim of the
strategy would be to create an environment and support the goals identified for JNPT.
The strategy for JNPT to achieve its goals would consist of three key elements:
z Marketing Strategy: The Marketing strategy consists of the approach and outlook of JNPT would adopt in meeting
capacity demand, customer requirements and industry trends.
z Commercial Strategy: The commercial strategy delineates the strategy JNPT would adopt to manage its sources of
revenue and areas of expenditure.
z Financial Strategy: The financial strategy contains JNPTs plan for raising and managing finances. The strategy would
aim at identifying sources of finance that would be used to undertake various planned initiatives.
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4.3.1 Marketing strategy
Marketing Strategy
z JNPTs marketing strategy would revolve around the levers of price, customers, geographies, services and
communication and would delineate JNPTs target within each of the levers
z Cost – How would JNPT ensure competitive prices for its services and how would it provide better value to its
customers?
z Customers – What customers would JNPT focus on?
z Geographies – What geographies would be serviced by JNPT?
z Communication – What would be JNPTs marketing strategy to attract and retain customers?
z Services - What services would JNPT offer?
Element of Marketing Details of Strategy

Strategy
Cost JNPT would endeavor to reduce its cost of operations through undertaking various
initiatives that aid in improving efficiency. This would include development of
automation infrastructure to reduce process time, improvement and upgradation of
infrastructure to increase efficiency and regular training of employees to improve turn
around times.
JNPT would also focus on improving service level of current processes through
improvement in processes and introduction of marketing team which would undertake
customer management practices to ensure service levels and customer satisfaction.
Customers JNPT would focus on customers in the western and northern region. It would aim at
attracting and retaining these customers through various customer driven as well as
service driven initiatives.
The customers would be large shipping lines for cargo and marine related services.
To retain and attract these customers JNPT would develop customer centric
marketing team which would ensure customer satisfaction within the users. JNPT
would also endeavor to capture a larger part of the value chain and get direct contact
with the end customers. This would be done through extension of services.
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Element of Details of Strategy
Marketing
Strategy
Geographies JNPT would service Maharashtra and the northern geographies. To ensure smooth flow of traffic from
these regions JNPT would ensure that all elements in the port are developed (connectivity, RMGCs,
RMQCs etc).
Apart from this JNPT would also endeavor to attract traffic from northern regions by providing additional
value through services such as warehousing, EPZ etc. Over the long term JNPT would also explore
entering the transport logistics sector (Rail freight containerization) between northern geographies and
the port to ensure smooth flow of traffic.
Communication JNPT would also develop a marketing team to ensure that the users are aware of its capabilities and
service offering. The marketing team would also ensure effective customer management and
satisfaction through account management and feedback (These have been detailed within the
commercial strategy)
Services JNPT would primarily be a landlord port facilitating port services executed by services providers. It
would as a port offer the following services in the following areas
z Containers (Marine and Cargo Handling)
z Liquids (Marine and Cargo Handling)
z Logistics (CFS, Empty yards and FTZ)
The services provided by JNPT would help in retaining and attracting customers. Apart from this
services such as logistics would also enable JNPT to generate additional revenues from resources
available at JNPT. The additional services would also help in industrial growth in the region and would
help industries in:
z Reducing transit losses,
z Reduce time to market ;
thereby, aiding the industries in reducing costs. JNPT would also evaluate entering into new service
segments such as Ro-Ro if they are found to be an attractive proposition in the future. These services
would also act as a sustainable competitive advantage of JNPT over other ports in India.
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It is also imperative to realize that the marketing strategy outlined above would be supported by a financial and
commercial strategy. The aim of the supporting strategies are as follows:
• Financial Strategy: The financial strategy of the port focuses on utilization of financial resources of the
port. It delineates the sources of finance, expected costs and provides a framework for identifying the
source of finance for various development activities.
• Commercial Strategy: The commercial strategy deals with the three levers of customer management, cost
management and service offerings of the port. It is aimed at achieving commercial success within the
operating business environment through effective management of customers and suppliers.
The commercial and financial strategy for the port are detailed in the following sections.
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4.3.2 Commercial Strategy
The commercial strategy of the port deals with the Exhibit 4.3.0 Framework of Commercial strategy
revenue flow to the port through the elements of
customer management, cost management and
service offerings. The execution of the commercial
strategy has to be in complete alignment with the
vision and port development strategy. Key focus
areas identified in the port development strategy
would emerge as the revenue drivers of the port
and thus determine the success of the commercial
strategy. Services
offered
Framework of commercial strategy
JNPT's commercial strategy would be influenced
by variables in the external environment such as
the business environment, customers and
suppliers. The methods under JNPT's control that
can be used to determine its commercial strategy Port
include services offered, cost management and Commercial
strategy
customer management. The commercial strategy
is illustrated in Exhibit 4.2.1.
Cost Customer
JNPT’s commercial strategy is influenced by Management Management
several external variables as seen below -
• The business environment impacts cost and
customer management through regulatory
and other factors.
• JNPT's supplier network impacts the kind of
services it can offer as well as the cost
incurred in providing those services.
• The competitive environment will determine
the services that need to be offered by
JNPT and require JNPT to manage its
customers.
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Services Offered
In line with the port development strategy, JNPT has defined certain focus areas over the next 20 years. These
include a strong focus on national export-import container traffic as well as greater participation in the container
handling value chain through creation of logistics and free trade zones. Service offerings that JNPT is likely to offer
over the next few years are listed below -
• Container handling operations
• Liquid cargo handling operations
• Vessel related operations (towage, pilotage etc)
• Logistics/Distribution zone
• Free trade zone
• Container freight operations/ empty depot storage
These service offerings would be influenced significantly by the competitive environment. In case certain services
currently not offered at JNPT were to be offered by major competitors, JNPT would need to create mechanisms to
offer similar services to prevent diversion of traffic to these competitors.
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Cost management
To ensure that its commercial strategy is effective, JNPT would need to effectively manage its costs. These cost
savings could directly translate into value offerings that could help in attracting customers. Cost management could
be attempted at two broad levels –
Operational Efficiency towards low costs : JNPT will continuously strive to improve its operational efficiency levels.
This could translate into substantial operational cost savings.
Contracts with Suppliers: JNPT would ensure preparation of detailed specifications for all contracts and orders to
ensure that quantities and goods and services procured are fit for purpose using industry standards as the norm.
Focus would be on optimal match of requirements with order quantities. Contract management will take on an
increasing importance given the large number of projects likely to be taken up over the next few years.
An example of cost management in internal processes could be the introduction of automation between CFS
operators and terminal gates. A different illustration of cost management could be training of RMQC operators for
carrying out double moves. This could translate into significant improvements in operational efficiency and translate
into long term cost savings.
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Customer management
With increasing competition between ports, the element of customer service would prove to be a key differentiator for
the port. To provide for effective customer service JNPT would need to develop a culture that supports all customers so
that their needs and specifications are met. JNPT would need to create and develop strong, positive relationships with
key customers by developing and implementing customer relationship management strategies and best practices.
Customer Acquisition/ retention -
JNPT would need to follow a multi pronged strategy to acquire customers. The strategy would broadly consist of three
aspects which are as follows:
• Provide value added services
• Provide the best value for money
• Marketing activities
Value added services - The port will develop value added services for customers to increase the attractiveness of port
and develop a sustainable competitive advantage. These value added services would be in the area of logistics and will
enable the port to emerge as an integrated logistics hub in the country.
Best Value for Money - The port will endeavor to optimize its resources to generate maximum throughput from its
current infrastructure. Apart from this the port will also undertake automation projects to bring down the time and cost
required for various processes. This will enable the port in lowering its overall cost for the customer.
Marketing activities - The port will also develop and expand a marketing team which will undertake customer
management exercises. This would primarily be aimed at retaining and targeting key customers. The marketing team
will take regular feedback from customers and will have key accounts manager for strategic customers. These key
account managers will resolve customer queries and issues.
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Marketing at JNPT
JNPT's marketing team will strive toward efficient customer management and developing the same as a competitive
advantage of JNPT over other ports. The role of the marketing team will be centered around the following four aspects
• Customers
• Price
• Promotion
• Competition
Customers: The marketing team would be divided into key account managers. Each account manager would be
responsible for 2-3 customers and would aim at maximizing revenues from the customers as well as for resolving any
customer related queries.
Price: The marketing team would constantly study the competitors and would play a role in developing pricing
strategies for the port. These strategies would revolve around volume discounts, growth discounts as well as route
discounts.
Competition: The team would regularly study the environment to develop reports on competitor plans as well as future
scenarios. These would be provided to various departments of the port for appropriate action. The team would also be
responsible for identifying future opportunities. These can arise from specific routes, specific industries or specific
customers. The marketing team would then develop strategies to exploit the opportunity for the port. These would be
passed to the senior management for review.
Promotion: The marketing team would regularly showcase capabilities of JNPT in port and logistics to customers to
attract new customers and retain strategic customers.
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The appropriate management of costs, customers and service offerings would result in consistent revenue streams for
the port. JNPT's key revenue drivers following from the port development strategy are expected to be -
Revenues from BOT for terminal operations - JNPT currently is engaged in three BOT contracts with NSICT,
GTI and BPCL. These currently constitute 15% of revenues and is expected to rise as GTI begins operations in
2006-07. With JNPT expected to enter into several BOT contracts for future container and liquid terminals as
illustrated in the port development strategy, BOT revenues will be a significant driver for JNPT going forward and
are expected to rise as a percentage of total revenue. Likely revenues from individual BOT contracts are indicated
in chapter 4.
Revenues from Leasing of land - Playing a greater part in the container handling value chain through utilization
of available land is of strategic focus for JNPT. JNPT has 670 hectares of developable land available for port
operations. Utilization of this land for various operations like container freight stations, free trade areas and
warehousing is a focus area. All operators utilizing this land can be expected to contribute leasing revenues to
JNPT..
Revenues from container terminal operations - JNPT currently gets 50% of its revenues from its container
terminal operations (JNPCT) . Revenues from JNPCT will continue to be a significant proportion but are unlikely to
increase as a total proportion of revenues.
Other revenue sources for JNPT are as follows -
Revenues from Sea-side services provided - As landlord of the port area, JNPT retains the vessel related
operations under its control. Activities like towage, pilot age and mooring of vessels are carried out by JNPT. JNPT
earns vessel docking and berth hire charges. This currently constitutes over 20% of port revenues. With increase
in number of vessels calling at JNPT, the revenues from these operations are expected to increase.
Revenues from break bulk handling operations - JNPT also handles break bulk cargo at a single shallow water
berth. Going ahead this is likely to be a minor service offering. Hence, revenues from the handling of break bulk
can be expected to be a negligible percentage of total revenues
Revenues from port investments – JNPT has regular reserves and surplus created through revenues from
terminal operations. These are utilized for investing in various government investment instruments such as bonds.
Revenues accrue to the port from interest as well as maturity of these instruments. Going ahead this is likely to be
a small percentage of the total revenues. Investments by the port would be done primarily in securities, which is in
line with port guidelines of investing in securities that provide a steady cash stream with negligible risk typically
provided by government securities.
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4.3.3 Financial Strategy
The financial strategy of the port provides the guiding principles Exhibit 4.3.1 : Sources of Finance
that enable raising finance for the execution of projects in line
with the vision of the port. Identification and availability of the
Port internal resources
optimal source of financing for various projects would be critical
to the success of a port development strategy. z Investable reserves and surplus
As part of the business planning exercise, JNPT needs to External resources
undertake several developmental projects. These projects could
potentially be financed from a variety of sources. z Loan financing
JNPT's choice of financing options would be dependent on the z Issue of Bonds

nature of the project being undertaken. JNPT as a major port
operates within guidelines laid down by the Government of India Public private partnerships
which poses certain constraints on the mode of financing z Build operate and transfer (BOT) contract
options available to the port. awarded to private player
Sources of Finance – Public participative financing
The set of financing options that have been considered as part z Joint venture or Special purpose vehicle
of the business plan as detailed in exhibit 4.3.1 are as follows - between public players
• Port internal resources
• External resources Sources of finance are discussed in
greater detail in section 1.5. A
• Public private partnership comparison of the various financing
• Public participative financing options available to JNPT is made in
the Exhibit 4.3.2
140
Exhibit 4.3.2 : Comparison of financing options available to JNPT
Serial Source of Finance Advantage Disadvantage Cost of Capital

No.
1 Reserves and Surplus Cheapest source of capital Opportunity cost of
which also does not lead capital – Spread over
to creation of a liability GoI bond rate
2 Loans Allows initiation of large Requires governmental 9.5-10% for long term
projects that cannot be clearances and creates loan (over 10 year
independently funded by annual cash flow period)
reserves and surplus liabilities
3 Issue of Bonds Cheapest source of Requires listing of bond 9.0-9.5% for 10 year
external capital and allows issues and involves bond
initiation of large projects significant transactional
that cannot be expenses for a
independently funded by government body
reserves and surplus
4 BOT Port can create Port gets lesser Cost of capital ~13% for
infrastructure at minimal revenues from a 10 year loan with D/E
risk to own capital while financially attractive ratio of 1 and 100 bps
enjoying BOT contractor projects via-a-vis over ZCYC cost of debt
expertise financing these projects
independently
5. Partnership Finance/ Port is able to positively Financial returns of Depends on financing
SPV mode influence execution of such investments are arrangement between
projects that impact its limited to the equity players
operations share
141
As part of discussions during the business planning exercise, certain guiding principles have emerged for financing of
projects. It has been indicated that a preferable mode of financing for the projects would be either port resources or
private participation. Government participation for funding of these projects is unlikely as has been indicated in
discussions at various fora. The guiding principles adopted have been discussed below.
Guiding Principles -
Projects taken up as part of the business plan can be funded from internal resources or by private investment.
Projects that have a clearly identified revenue stream as well as a viable Net present value/Internal rate of return
(NPV/IRR) can potentially involve private sector participation (e.g. through BOT participation)
Projects involving creation of common-user infrastructure or projects that may not show clearly identified revenue
streams or a viable NPV/IRR are likely to be undertaken through port resources. While these projects may not show an
attractive NPV/IRR, they would still benefit the overall operations of the port
Financing method to be used for different projects –
The list of projects identified for financing are limited to those projects identified through the vision and port
development strategy of JNPT. Likely sources of financing have been identified based on guiding principles illustrated
in Exhibit 4.3.3.
a) Common user infrastructure – Based on discussions at various fora, it emerged that the creation of all common
user infrastructure allowing operation of various terminal operators would be the responsibility of the port. This is also
in line with the way the landlord port model operates the world over. This common user infrastructure in the case of
JNPT includes -
• Internal connectivity projects ( Road, rail etc.)
• Dredging of main channel and JNPT channel
• Sea side handling (Towage, pilotage etc)
• Other infrastructure ( security etc.)
The financing method for common user infrastructure would depend on the presence of a viable revenue stream for
that infrastructure. As internal connectivity projects may not have a clear revenue stream unless tolled, they are
unlikely to be financed through loans /bond issues and would be funded through port internal resources.
Dredging as a project would result in revenue streams for JNPT in the form of sea side tariffs. Given the fact that
dredging is an expensive proposition JNPT is unlikely to finance the entire project from internal resources. Discussions
with port officials reveal that dredging is likely to be part funded by reserves and partly through loans.
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As a landlord port JNPT would continue to provide sea side services such as towage and pilotage. Purchase of
equipment and services for servicing rising number of ships is expected to be funded through port reserves and
surplus. Other common user infrastructure provided by the port such as security are likely to be funded via port internal
resources.
b) Future terminals –
Projects that have a clearly identified revenue stream as well as a viable NPV/IRR can potentially involve BOT
participation. All terminal operations would have identified traffic projections and in turn revenue flows. Hence, creation
of new terminals is likely to be through private participation via the BOT route.
c) Warehousing/CFS/free trade zones/Storage facilities –
Projects that have a clearly identified revenue stream as well as a viable NPV/IRR can potentially involve BOT
participation. All warehousing/free trade/CFS operations would be based on the traffic projected at JNPT and would
have clearly identified revenue flows. Hence, creation of warehousing/CFS/free trade zones/storage zones is likely to
be through private participation via the BOT/leasing route.
JNPT as landlord would need to develop the land prior to handing it over to private players for construction and
operation. This development has a clear stream of revenues arising from lease/revenue sharing and hence can
potentially be financed via loans/ port internal resources.
d) External connectivity projects –
JNPT is dependant on external roads/railways connecting it to the immediate hinterland. These networks are critical to
the evacuation of containers and prevention of congestion at the port. Examples of projects that can be executed as
part of this are
• Road projects in the vicinity of the port like Link roads, highways etc
• Railway lines connecting the port to key rail corridors
Stakeholders in such projects include regional land authorities and road/rail developers. Although responsibility for their
execution does not lie on the port it is advocated that they participate in such projects so as to positively influence their
timely execution. Given the multiplicity of stakeholders and the imperative of the project to JNPT, It is suggested that
JNPT participate in these projects through special purpose vehicles with other stakeholders.
d) JNPT operated container terminal –
JNPT owns and operates a container terminal (JNPCT). This terminal will require significant expense in terms of
projects for equipment upgradation/capacity expansion. As these projects are not common-user based and have
clearly identified revenue streams, it is likely that they will be funded via port internal resources or loans.
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Exhibit 4.3.3 : Project Financing Options available to JNPT
Serial No. Type of Projects Likely Source of Finance Cost of Capital
1 Common user infrastructure- Combination of reserves and 9-10% (exact cost dependant on
Dredging surplus as well as bank loans proportion of finance from each
source)
2 Common user infrastructure- Reserves and Surplus Opportunity cost of capital –
Internal roads spread over GoI bond rate
3 Common user infrastructure- Reserves and Surplus Opportunity cost of capital –

vessel handling related projects spread over GoI bond rate
3 Equipment / expense for JN Port Reserves and Surplus Opportunity cost of capital –
owned container terminal (JNPCT) spread over GoI bond rate
4 Construction and operation of Public private partnerships Cost of capital ~13% for a 10
terminals, logistics, distribution and such as BOT year loan with D/E ratio of 1 and
warehousing facilities, free trade 100 bps over ZCYC cost of debt
zones
5. Critical external road/railway Partnership Finance Depends on financing
connections arrangement between players
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Total investments expected in the port till 2017-18 are Exhibit 4.3.4 : Investment outlay by mode of finance
Rs 14556 crores. Investment requirements of the port till 2017-18
trust itself are Rs 4530 crores. These investments Mode of finance Investment outlay (in
would be needed in order to fund various projects for Rs crores)*
building infrastructure required for serving future traffic
potential. These amounts are derived based on Port resources (Includes internal 4530
financial coverage and other analysis done for port resources as well as external
individual projects. Assumptions taken to arrive at financing like bank loans, Also
financial outlay are listed alongside individual projects. includes the port’s expected
A contingency cost of 10% has been taken on the contribution to SPV)
overall investment figure. The financing requirements
for upgradation and replacement as well as costs Other investments ( as part of XI 1398
envisaged for equipment hired and personnel costs plan outlay)
have not been included currently.
BOT developer 8190
This outlay can be financed from the sources detailed
earlier. The approximate outlay through each of the Public participative financing/SPV 231.7
sources is tabulated in Exhibit 4.3.4 below. (excluding JNPT’s contribution)
Public investments 207
Total Investments 14556
* Apart from this there would be regular upgradation investments

as well as recurring investments for hired equipment such as pilot
launches, tugs etc. These figures factor in annual inflation
145
Chapter 5
Trade and Traffic forecast
146
5.0 Traffic Projections
5.0.1 Introduction
An assessment of future national traffic is necessary to understand the capacity requirement for ports in the future.
Traffic projections serve as the basis for development of a integrated master plan and therefore should be estimated
through a comprehensive and robust methodology.
An integrated master plan for a port identifies investment requirements across the port in areas such as terminal
capacity, sea side capacity and hinterland connectivity using demand forecasts/ traffic forecasts.
JNPT's vision aims at developing JNPT as a premier container port with capabilities in liquid handling as well. In line
with the vision the traffic projection have been detailed out for two key components:
• Container Traffic projections
• Liquid traffic projections
• POL/ Crude
• Chemicals
• Edible oil and molasses
Currently Ro-Ro is not a focus area for JNPT. However if the Ro-Ro opportunity grows considerably then JNPT can
evaluate the opportunity in detail and, depending on the outcome of the evaluation, can increase its focus on Ro-Ro.
Guiding principles used to develop traffic projections (national and JNPT) are as follows:
• To ensure validity of data and assumptions through discussions with industry experts, port users and
secondary research.
• To ensure that the methodology followed is transparent and follows a logical approach.
• To build flexibility in the approach to ensure that region or industry specific scenarios can be incorporated in
the projections.
• To ensure that competitor plans are incorporated to arrive at port specific traffic projections.
• To ensure integration of current trends in traffic from various regions for JNPT in the traffic projections.
• To ensure integration of global trends, macroeconomic trend and industry trend are incorporated in
projections for JNPT.
147
5.0 Traffic Projections
5.0.1 Introduction
Various data sources that have been used to arrive at traffic projections include Ministry of shipping, IPA, Ministry of
Statistics, Ministry of Petroleum and natural gas etc. Suitable assumptions have been made in discussions with the
port users and industry experts.
Some of the data sources that were used for traffic projections are as follows:
Ministry of shipping, highways and road transport Indian ports association data
Ministry of petroleum and natural gas Ministry of Statistics & Programme Implementation
Cygnus Industry reports India infoline.com
Economist intelligence Unit Government of national capital territory of Delhi,
Estimates of state domestic product
Indiastat.com CMIE data on National Income
Economic Survey of Maharashtra, Directorate of Deutsche Bank Research, Container Shipping
economics and statistics, Planning department,
Government of Maharahstra
Ministry of Petroleum and Natural Gas Ministry of Chemicals and Petrochemicals
Ministry of Agriculture Solvent Extractors Association of India
KPMG India Energy Outlook 2006 Infraline.com
148
5.1 Container Traffic Projections
5.1.1 Methodologies for Traffic Assessment
There were fundamentally three approaches that were considered to arrive at the future traffic potential. Each of these
approaches has its strengths and weakness. Also these approaches also are suited to different scenarios. An
explanation of these approaches is given below:
Historical Approach: The historical approach uses historical growth rates and applies the same to arrive at future
traffic potential. The underlying assumption of the approach is that the port operates in a steady business environment
with limited changes.
z Advantages
− This approach is easy to apply as it uses historical data points which are easily available
− The approach provides accurate results where business environment is steady
z Disadvantages:
− In scenarios where the business environment is dynamic this approach will not yield correct results as
historical growth rates may not continue in the future

z Applicability to JNPT
− JNPT's business environment is evolving rapidly. This is a result of a number of factors such as increase in
India's international trade volumes, entry of private players in the port sector etc.. This approach may
therefore not yield correct results.
Top – Down Approach: The top down approach essentially uses a correlation of container traffic with macro economic
factors such as GDP (for a country/region) to arrive at future container for a country/region..
z Advantages
− It is a widely known prediction methodology used to arrive at national/regional traffic projections.
− As opposed to the historical approach, this methodology recognizes that future growth rates need to be
considered for projecting traffic.

z Disadvantages
− The approach correlates macroeconomic factors with the traffic. However, it does not reflect the relative
difference between services and manufacturing.

− This methodology does not factor changing levels of containerization over a long term
149
5.1.1 Methodologies for Traffic Assessment
z Applicability to JNPT:
− While this approach can be used to assess national traffic growth it is difficult to arrive at traffic potential at a
port and any extrapolation from national projections to a specific port may not be appropriate. This is
because the hinterland of a port may not behave as that of the entire country.
z Bottom Up Approach – This approach incorporates industry trends within a region to assess the resultant increase
in traffic based on specific regional and industry trends. These trends are summed to arrive at the national traffic
projections.
z Advantages
− This approach can be used to identify regional trends for industry specific cargo. As a result the approach is
able to differentiate between manufacturing led and service led growth.

z Disadvantages:
− The approach requires a significant amount of data at a regional and industry level in granular detail to
arrive at the traffic potential for various regions.

z Applicability to JNPT
− This approach is most suitable for projecting traffic for JNPT as it can convert regional and industry level
trends into traffic potential for a port based on the traffic potential of the hinterland.
KPMG has applied the bottom up approach to arrive at traffic potential for JNPT. A comparison of national level using
the top-down and bottom up approach has also been done.
150
5.1.2 Top-Down Approach
Various studies indicate that a growth of 1% in the GDP Exhibit 5.1.1 India GDP Forecast (in %)
of a country leads to a growth of about 1.5 – 2 % in the
container trade. This however depends on the nature of Year Real GDP Growth
the GDP growth (services vs. manufacturing), level of
containerisation and container handling infrastructure in
2006 -07 7.06
a country. Indian GDP has shown a growth of almost 8%
over the past three years and is expected to show
2007 – 08 6.95
comparable growth rates in the future. According to the
Goldman Sachs BRIC report, the Indian economy is
2008 – 09 6.87
expected to become the third largest economy in terms
of market exchange rate by 2050.
2009 – 10 6.67
The forecasts for Indian GDP in the future are shown in
exhibit 5.1.1. As can be seen the GDP growth rate 2010 – 11 6.84
between 2011 and 2017 is expected to be average of
6% and an average of 5% growth beyond 2017. This is Source: EIU Country report on India
inline with the estimates of various analysts and experts.
The correlation of past traffic with GDP was carried out
through a regression analysis assuming a log-linear
relation ship between the stuffed TEUs and the GDP.
It was found that the correlation with the real GDP is the Exhibit 5.1.2 India GDP Forecast
strongest and the results of the correlation test are
shown below Year Real GDP Growth
2011 – 17 6 % (Average)
Parameter Value
Significance F 1.04006E-05 2017 – 26 5% (Average)
Standard Error 0.003794824
The correlation is very strong which is evident from the Source: Analyst Reports, Discussions with experts
low F value as well as the low standard error.
151
Using data taken from ministry of shipping and other Exhibit 5.1. 3 India Projected Traffic (in 000 TEUs)
sources, a log linear relationship between the stuffed
Transship
containers and real GDP was found to be strong in the
Year Projected Empties ment Total
form of the following equation
Log (Stuffed Traffic) = m*Log (Real GDP) + c 1999 – 00 1783.18 404.46 243.07 2430.72
m = 2.4565603 2004 – 05 3603.91 724.72 480.95 4809.59

c = - 11.63588073
2009 – 10 8162.80 1526.64 107.66 10766.00
2011 – 12 16698.10 3027.99 219.17 21917.80

Additionally a relationship between empties and stuffed
TEUs was found which was as follows: 2015 – 16 19267.80 3480.00 2527.53 25275.30
Empty Containers (E) = .1759 * Stuffed Traffic + 90.8
2016 – 17 22232.90 4001.57 2914.95 29149.50
2017 – 18 25064.00 4499.55 3284.84 32848.40

It is assumed that the transshipment traffic would be
around 10% of the total traffic in line with current trends.
2018 – 19 28255.50 5060.94 3701.82 37018.20
2019 – 20 31853.40 5693.81 4171.91 41719.10

Using the above the traffic projections for Indian container
traffic are shown in exhibit 5.1.3. It is expected that the 2020 – 21 35909.40 6407.26 4701.85 47018.50
traffic in the year 2026-27 would be around 85 Million
TEUs. 2021 – 22 40481.90 7211.57 5299.27 52992.70
2022 – 23 45636.60 8118.29 5972.77 59727.70
2023 – 24 51447.80 9140.46 6732.03 67320.30
2024 – 25 57998.80 10292.80 7587.96 75879.60
2026 – 27 65384.10 11591.90 8552.88 85528.80
152
90000
85529
Exhibit 5.1.4 : National Container Traffic Projections using top down approach
80000
75880
70000 67320
59728
60000
52993
50000 47019
000 TEUS
41719
40000 37018
32848
29150
30000
25275
21918
19008
20000 16487
14301
12407
10766
9165
10000 7835
6669
4810 5670
0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
153
5.1.3 Bottom Up Approach
The methodology followed for the bottom up approach took into account a number of factors. A high-level schematic of
the approach is given below -
1
Assessment of current import
export traffic by industry
3
Source: Ministry of commerce

4
Development of Analysis of level of
2 containerisation,
state wise export
import data empties and
Assessment of traffic by state and transhipment
industry Source: KPMG Analysis
Source: Annual Survey of Industries
6 Assessment of Assessment of
Traffic Projections traffic growth due traffic growth due
with state wise break to increase in to growth in
up containerisation industries
154
Two inputs were required for estimating the current origination/destination of Indian international trade cargo . The first
was to understand the various industries that contribute to container traffic and the second was to evaluate the
regions/states of production/consumption across all industries.
Step 1: Assessment of current import export traffic by industry
An analysis of export import data was carried out to arrive at the total international trade cargo traffic in India. This
involved aggregating trade data available with the Directorate general of foreign trade (under the Ministry of
Commerce) for all industries.
Step 2: Assessment of traffic by state and industry

An assessment of cargo generated from various states was performed by using industry level data available on the
industrial output from various states. Data from the Annual Survey of Industries released by the Ministry of Statistics
An analysis of
was used for this analysis.
export import
data was done to Step3: Development of state wise import export data across industries
arrive at total
export import Using the assessment carried out in Step 1 and Step 2 a mapping of industries to locations of import consumption and
cargo from India export generation was done to arrive at state level export and import data across industries.
by volume
155
Step 4: Analysis of level of containerisation, empties Exhibit 5.1.5 Level of Containerization

and transshipment Description 2003-04
To arrive at the container volumes for export import the Miscellaneous 10.00%
extent of containerization across various industries was Chemicals 40.00%
applied to the output of step 3. This provided the state
Consumer goods 75.00%
level container trade volumes across various industries.
Drugs and Medicines 46.03%
Dry Fruits 50.00%
Exhibit 5.1.5 shows the level of containerization that has Dyes and Colours 0.00%
been assumed for various key industries. These Fodder 24.58%
assumptions were arrived on the basis of data produced
Foodgrains (Cereals and Pulses) 11.20%
by the Ministry of Shipping as well as through discussions
with port users and export promotion councils. Fruits & Vegetables 18.71%
Apart from the above container volumes also consist of Hossiery, Harberdasherry and Millinary 41.57%
transshipment and empties. Coastal and regional Jute & Its Products 47.00%
Transshipment was assumed to be around 10% of the Leather & Its Products 50.00%
total traffic, while empties were calculated on the basis of
Liquid 0.01%
the following equation.
Empty Containers (E) = .1759 * Stuffed Traffic + 90.8 Machinery, Instruments Transport Equipments 43.75%
Marine Products 50.00%
Meat & Dairy products 50.00%
The equation was obtained on the basis of historical Metal & Metal Products 23.16%
correlation between empties and stuffed containers.
Oil Seeds, Fats Etc. 50.00%
A correlation for empties has been used because the flow Spices 41.18%
of empties depends on a large number of factors such as
Sugar 41.18%
export import imbalances, shipping line business flows,
global business flows, FCL ratio etc. Hence a bottom up Tea & Coffee 50.00%
approach (based only on local export import behavior) Textiles (Cotton, Silk, Synthetic) Yarn Etc. 45.65%
would may not yield a true representation of empties flow.
156
Step 5: Industry and Containerization Analysis

To estimate future traffic potential, key industries were analyzed to arrive at expected growth rate for industries. Inputs
for the same were taken from secondary research of analyst reports (Cygnus, Data Monitor, B&K Industry Reports,
Insight Industry Reports, EIU etc) . In some cases where growth rate over a long term was not available growth rates
were tapered in line with the GDP projections (around 5% over the long term).
The Industry growth rates were applied to each industry to arrive at the future traffic potential from all industries. The
growth rate of industries was adjusted to take into account regional variations based on known plans and discussions
with industry experts (Export promotion councils, Economic survey of states etc). Some regions such as Maharashtra
were assumed to grow at a higher rate due to SEZ setups and various Sops being offered by the state Government.
The above analysis enabled an estimate of future container traffic (stuffed) that is expected from various regions across
India.
Apart from this Empties and transshipment traffic was also analyzed and added to the stuffed container volumes to
arrive at total traffic in the future. Coastal and regional transshipment was assumed to be around 10% of the total
traffic, while empties were calculated on the basis of the following equation. The equation was obtained on the basis of
historical correlation between empties and stuffed containers.
Empty Containers (E) = .1759 * Stuffed Traffic + 90.8
National container traffic was the total of the stuffed containers, empties and transshipment traffic that was expected in
the future. The result of the analysis is shown in Exhibit 5.1.6 and 5.1.7.
The traffic proportion generated from various regions is shown in Annexure 1.3
157
National Projections Exhibit 5.1.6 Projected Traffic by Bottom Up
EXIM cargo generated nationally was calculated based on Approach
the analysis carried out. To this transshipment of around Year Traffic (Mn TEUs)
10% was added to arrive at the national container traffic
2004-05 4.12
potential
A comparison of the two methodologies shows that the top 2005-06 4.87
down approach predicts a traffic of 85 Mn TEUs while the 2006-07 5.84
bottom up approach estimates around 72 Mn TEUs. One of 2007-08 7.02
the reasons for the difference could be that the top down
approach assumes that the current correlation between 2008-09 8.45
macroeconomic factors and traffic will continue over the long 2009-10 10.16
term. However, it has been observed that an increase in 2010-11 11.89
GDP by 1% can lead to an increase in container trade by
1.5-2%. In developed economies the increase is lower than 2011-12 13.86
that in developing economies as in developing economies 2012-13 16.17
level of containerization is also rising. 2013-14 18.79
As can be seen the bottom up approach predicts a higher
2014-15 21.85
growth rate in the medium term than the GDP approach.
This is primarily because manufacturing led growth is likely 2015-16 24.69
to increase in India, which reflects sharply in a bottom up 2016-17 27.77
approach, while it may not do so in a GDP approach.
2017-18 31.22
Some of the reasons for this could be:
2018-19 35.00
1.Increased focus on manufacturing sector in India.
2019-20 40.39
• There has been an increase in India being chosen as
an export base for manufacturing by MNCs 2020-21 43.83
2.Specific industries such as Auto are expected to grow at a 2021-22 47.56

high rate and will contribute to exports 2022-23 51.62
• Indian auto component industry is expected to 2023-24 56.02
capture as much as 20% share of the global
2024-25 60.81
component industry
2025-26 66.01
3.Government support through policies such as SEZ, tax
benefits etc that aid growth in manufacturing. 2026-27 71.66
158
90.00
Projected GDP Projected Bottom Up

85.529
80.00
Exhibit 5.1.7 Comparison of traffic projections of bottom up and top down approach
75.88
71.66
70.00
67.32
66.01
60.00 59.728 60.81
52.993 56.02
51.62
50.00 47.56
43.50
47.019
38.50
40.00 41.719
35.00
31.22 37.018
30.00 27.77 32.85

24.69 29.15
21.85
25.28
18.79
20.00 21.92
16.17
13.86 19.01
11.89 16.49
10.16
8.45 14.30
10.00 7.02 12.41
5.84 10.77
4.87
9.17
7.84
6.67
5.67
4.81
Mn TEUs
0.00
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
159
5.1.4 JNPT Traffic Projections
The development of the national traffic projections using a bottom up approach provided an insight into specific growth
patterns across regions and key industries that form part of JNPT's hinterland and therefore enabled development of
forecast for JNPT. The choice of hinterland for assessing JNPT's future traffic potential was based on an analysis of
the origination/destination of the current traffic at JNPT.
KPMG followed a qualitative gravity assessment model to estimate share of traffic from various regions for JNPT, the
gravity assessment model was based on an analysis of the key factors that can impact the share of container traffic that
JNPT can expect from various regions across India:
1. Future investment plans of competitors to assess traffic that can be handled by competitors
2. Trends in share of ICD traffic arriving at JNPT from various regions
1. Future plans of Competitors

Currently JNPT serves over 50% of the container traffic in India. However, with the emergence of private players and
capacity additions in other ports, it is expected that some of the traffic especially from northern regions (which lie closer
to some of the western ports) would be diverted to the new ports. These new ports are also expected to capture a large
proportion of traffic in their region.
The competitors considered are Pipavav, Mundra and Kandla in Gujarat, Port of Rewas and Mumbai Port in
Maharashtra. As mentioned earlier, not all plans of these ports are available in the public domain. However a brief
snapshot of future plans of the competitors is provided below:
z Mundra
− Mundra International Container Terminal (MICT) is managed by P&O Ports
− The Container terminal comprises of 2 berths and is capable of handling 1.2 million TEUs per annum.
− Terminal throughput has doubled over the last one year t over 0.2 million TEUs in 2004-05.
− Work has begun on a second container terminal expected to double container capacity of the port by
2008 – 09
− 3 new CFS operators are set to begin operations in addition to the 3 existing CFS operators.
160
z Pipavav
Map of competing ports with overlapping
− It is India’s first private sector port with hinterland
significant investments by the AP Moller-
Maersk Group. Container traffic at Pipapav
was 80,000 containers in 2005 and is
expected to reach 0.25 million by 2006
− Pipavav has invested towards development
of a modern container terminal which on
completion will have a capacity of 1 million
TEUs
− Facilities have been developed to handle
double stacked container trains from the port
till Jaipur ICD.
Kandla
z Kandla Mundra
− Kandla currently has one terminal with a
capacity of around 700,000 TEU and is Pipavav
planning to develop another terminal by
2010-11 which would double its capacity Mumbai
z Mumbai JNPT
− Mumbai is expected to develop an offshore Rewas
container terminal with a capacity of 1.2 Mn Competing
TEU by 2018-19. Ports
z Port of Rewas
− Port of Rewas is being setup on the west
coast of Maharashtra. It is located near
Karanja creek at mouth of the Patalganga
river, about 10 Km from JNPT. The Reliance
group has recently acquired a stake in the
port. The port expects to handle various
types of Cargo (dry, liquid and containers).
The plans of the port available in public Captive Hinterland of JNPT
domain indicate that the port expects a
capacity of about 3-4 Mn TEUs beyond Non Captive Hinterland
2018.
(Overlapping)
161
Impact on JNPT
Analysis of competitor plans and discussion with port users Exhibit 5.1.8 CAGR of traffic from ICDs between (02-03 to
and export promotion councils indicate that as the 05-06)
development plans of competitors would take time to fructify 80.00% CAGR Overall
it is expected that JNPT would continue to capture a 70.00% CAGR JNPT
substantial proportion of the northern and western traffic for 6 0.00%
the next 5-6 years. However as competitors develop 50.00%
40.00%
capacity and develop supporting infrastructure such as CFS
3 0.00%
etc the share of JNPT from northern regions could fall in the 20.00%
long term. Discussions also indicate that JNPT would 10.00%
continue to capture a substantial proportion of the 0.00%
Maharashtra traffic.
Tughlakabad
Agra
Ahm edabad
Vadodara
Jaipur
Nagpur
Ludhiana
Pune
2. ICD Analysis and trends
Analysis of ICDs shows the following key trends:
z A regional analysis of traffic from various ICDs to
JNPT shows JNPT's growth in ICD traffic from Exhibit 5.1.9 CAGR of traffic from regions(02-03 to 05-
northern regions is smaller compared to overall 06)
growth in Northern regions traffic. (This includes CAGR Overall
10.00%
regions such as Delhi, UP, Uttaranchal etc). This 9.00% CAGR JNPT
may be because of ports in Gujarat increasing their 8.00%
proportion of the northern traffic. It is expected that 7.00%
as these players expand capacity , the traffic from 6.00%
5.00%
northern region may get redistributed to these ports 4.00%
due to their proximity the north relative to JNPT. 3.00%
2.00%
z ICD analysis shows that JNPT has been able to 1.00%
increase its share in the western region (primarily 0.00%
Maharashtra). Over the long term this region is
Northern
Western
Region
Region
expected to serve as a captive market for JNPT due
to proximity to the region.
Source: CONCOR, Ops Dept Data
162
Based on the above analysis it is anticipated that: Exhibit 5.1.10 : Traffic potential for JNPT from
z JNPT would continue to garner a major share of the various regions
traffic in Maharashtra as no other port in % of current % of future
Maharashtra is expected to have similar traffic of the traffic of the
infrastructure and traffic handling capabilities over State
region coming region coming to
the short to medium term. to JNPT* JNPT
z JNPT's share from regions such as Gujarat would
Maharashtra 90 % 80 %
reduce substantially due to presence of competitor
ports in the region (Mundra, Pipavav etc) Uttar
80% 40 %
z JNPT's share from northern regions would reduce Pradesh
as some of the Northern Region traffic will be
diverted to competing ports Uttaranchal 80% 40 %
z JNPT would continue to be a large container port in

Delhi 75 % 40 %
India
These inferences were discussed with port users, port
Punjab 80 % 40 %
departments and export promotion council to arrive at
quantitative numbers for the current share of JNPT's traffic
Andhra
from various regions and expected share of traffic from the 10 % 5%
Pradesh
regions in the future. The results of these discussions are
presented in Exhibit 5.1.10.
Karnataka 37 % 5%
Gujarat 60 % 10 %
Madhya
60 % 40 %
Pradesh
Others 15 -20% 15%
* These numbers were arrived at through discussions with

port users and export promotion councils
163
The capacity assessment model and the share of traffic Exhibit 5.1.11 Projected Traffic potential for JNPT
from various regions allowed an estimation of traffic that
Year Traffic (Mn TEUs)
would arrive at JNPT from various regions. This was
aggregated along with transshipment and empties volume 2004-05 2.28
to estimate future traffic potential. 2005-06 2.68
JNPT would service primarily export import cargo with 2006-07 3.22
transshipment cargo being a small part of the total 2007-08 3.77
volumes handled. Currently JNPT consists of around 8-
2008-09 4.43
9% transshipment cargo and this is expected to continue.
Since JNPT has chosen transshipment as one of the 2009-10 5.19
business areas and not a focus areas it is assumed that 2010-11 5.93
the transshipment percentage would remain similar to
2011-12 6.75
current levels of approximately 10%. Transshipment is
expected to remain at similar levels due to the following 2012-13 7.70
reasons: 2013-14 8.75
z the trend in development of smaller ports in nearby 2014-15 9.95
region which might lead to an increase in coastal 2015-16 11.00
transshipment
2016-17 15.11
z the presence of ports with deeper drafts and
2017-18 13.34
emergence of ports such as Colombo as
transshipment hubs would reduce transshipment 2018-19 14.65
traffic arriving at JNPT 2019-20 16.57
Hence it is expected that while the volume of 2020-21 17.63
transshipment would increase the proportion of 2021-22 18.76
transshipment traffic at JNPT would continue to be around
2022-23 19.98
10% and this would be largely coastal in nature.
2023-24 21.29
Apart from this each TEU is assumed to contain around
13 to 14 tonnes of cargo. 2024-25 22.70
2025-26 24.21
2026-27 25.45
164
The traffic potential at JNPT is shown in exhibit 5.1.11.

Traffic potential for JNPT is predicted to be around 25 A check was made on the consistency of the forecasts by
Mn TEUs. However, JNPT faces expansion constraints checking with the traffic for the years 04-05 and 05-06. The
and therefore the traffic potential at JNPT is limited by variation observed is less than 4%
the realistic estimate of overall capacity (under the
current geographical and policy restrictions) at JNPT.
The overall capacity (under the current geographical
Exhibit 5.1.12 Comparison of Actual and
and policy restrictions) for JNPT is estimated to be
Predicated Traffic
around 10.9 Mn TEUs by 2015-16 (this has been
discussed in detail in the capacity assessment model, Actual Predicted Variation
section 3).As can be seen the projections made by the Year (Mn TEUs) (Mn TEUs)
model for the traffic in 2004-05 and 2005-06 are very
close to the actual numbers. A comparison of the 2004-05 2.37 2.28 3.8%
Actual and Predicted throughputs is given in the Exhibit 2005-06 2.66 2.67 -0.4%
5.1.12
Inferences from Traffic Potential at JNPT
Saturation in 2016-17
The traffic potential for JNPT is increasing over the Need for an additional port
years to reach around 25 Mn TEUs in 2026-27,
however JNPT would not be able to service this traffic This indicates the requirement of an additional port in
as it will be constrained by its overall capacity (under Maharashtra either by private players or by the
the current geographical and policy restrictions) . This Government of India. A detailed analysis of locations
capacity is estimated to be around 10.9 Mn TEUs. suitable for such a port fall beyond the scope of this study
(details of the same are available in section 3) however the projections indicate that there is potential for
about 10 Mn TEU (between 2018-26) for a new port in
this region.
165
5.1.4 Traffic at JNPT
30.00
25.45
Exhibit 5.1.13 JNPT's Traffic Projections
25.00 24.21
22.70
21.29
19.98
20.00 18.76
17.63
16.32
14.65
15.00
13.34
Mn TEUs
12.11
11.00
9.95
10.00 8.75
7.70
6.75
5.93
5.19
4.43
5.00 3.77
3.22
2.68
0.00
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
Capacity of the port would be 11.67 Million TEUs at 75% berth occupancy in 2015-16 and 2016-17. At
70% berth occupancy the overall capacity (under the current geographical and policy restrictions) of the
port would be 10.9 Million TEUs by 2015-16.
166
5.2 Liquid traffic forecast
Introduction
KPMG carried out a detailed set of forecasts for traffic at ports which can be classified into 4 distinct categories which
are -
• Crude Oil
• POL product
• Liquid chemicals
• Other liquids (includes Edible Oil/ Molasses)
JNPT currently services three of the four categories and it is expected to begin servicing the fourth category of crude oil
shortly.
Overview of forecast methodology
As liquid cargo handled by a port could consist of products from various industries, KPMG has undertaken a broad
assessment of each of the industries that could impact cargo growth in liquid traffic. The forecast for the traffic was
developed at 2 levels
a. National level forecasts for each liquid category
b. JNPT forecasts for each liquid category
A detailed methodology for forecast of individual categories has been included later in the section. A summary of the
methodology is briefly discussed here.
A national level demand-supply assessment is made along with an analysis of export-import traffic for the category.
Industry research was utilized to arrive at export and import growth rates. These inputs were used to arrive at national
level forecast for total traffic through Indian ports for the commodity.
JNPT was apportioned a portion of the national level traffic based on certain key factors. These included -
• Expected growth rates through industry research
• Regional/local variations and trends
• Historical shares
Individual forecasts for each of the categories of liquid cargo are detailed over the next few pages.
167
5.2.1 Crude oil and POL product forecast
Basis for Crude/POL product traffic forecast

National forecast
The Oil and gas sector was studied to identify key trends that could impact the traffic through ports. Production and
consumption mismatch in crude and POL product over the past few years was studied along with export/import trends.
While India’s domestic consumption of crude and POL product has been rising steadily, India’s domestic production of
crude has stagnated over the last few years. This has resulted in increasing imports of crude oil.
Several export oriented refineries are at various stages of being set up. This is expected to translate into significant
rise in POL product exports. Current and planned refining capacity (from announced expansion plans of leading
refiners) was assessed to arrive at the requirement for crude oil in the country. These inputs helped in arriving at a
demand-supply assessment for crude and POL product in the medium term. Industry forecasts for growth rates were
applied for the period beyond 2011-12 to arrive at the national level traffic forecast for POL and crude oil.
JNPT forecast
JNPT has no crude linkages with existing refineries and does not service crude traffic at present. All upcoming
refineries have already established linkages with other ports. JNPT thus cannot expect any crude traffic through these
upcoming refineries. ONGC plans to ship a part of its offshore crude production at Bombay High via JNPT to the
coastal refinery of Mangalore from early 2007 onwards. JNPT crude forecasts are thus closely aligned with ONGC
plans.
JNPT POL product traffic is largely coastal based traffic which has been grown in line with national trends of coastal
traffic. JNPT can expect some increase in the POL export-import traffic due to plans of refining majors to increase
refining capacity in Mumbai. Most of this increase in traffic can be expected to flow through Mumbai port with a small
proportion flowing through JNPT. Coastal and exim traffic estimates were used to arrive at JNPT POL traffic forecast.
A detailed forecast has been made in the following pages with exhibit 5.2.1 indicating the methodology for the forecast.
168
Exhibit 5.2.1 – Methodology of POL and crude forecast
Analysis of crude
production and
3
consumption
Source Data: Ministry
of Petroleum 4
Study of existing National
2 and planned refinery projections for POL
capacity by state and crude traffic
Analysis of POL
Source : KPMG Analysis, Source: KPMG Analysis
and crude export Industry report
and import trends
Source Data: Ministry Projections for JNPT
of Petroleum
5b 5a
6
Regional crude
Traffic Apportionment of linkages and
projections national forecast refinery trends
for JNPT
Source: KPMG Source : KPMG
Analysis of regional Analysis, Industry
trends data
169
5.2.1 Crude oil and POL product forecast - Introduction
Overview of Current Energy Mix -

India is the fifth largest energy consumer in the world
Exhibit 5.2.2 - India's Energy
with primary commercial energy consumption in 2004 of
375.8 Million Metric Tonnes of Equivalent (MMTOE) consumption basket 2004
Nuclear energy
(Source : BP statistical survey 2005). In 2004, the 1%
Hydro energy
consumption of oil and gas formed a major percentage
5%
in the world energy consumption basket. In India,
however, coal dominates the consumption basket with a
Oil
share of 54% as seen in exhibit 5.2.2.
32% Co al
Energy consumption grew at an average compounded 54%
annual growth rate (CAGR) of 3.8 per cent in the period
1999-2005 with the GDP growing at CAGR of 6.3 per Natural Gas
cent resulting into a very attractive GDP elasticity of little 8%
above 0.6.
Overview of Oil & Gas Sector -
• Largest contributor to the national exchequer in 2004-05 • India is Ninth largest crude oil importer in the
with taxes amounting to US$ 27 billion. world
• India ranks sixth in refining capacity in the world
• Oil & Gas constituted 40 per cent of the primary energy
with capacity at 2.5 million barrels of oil per day
source in 2004.
in 2004 which is 3 per cent of the world’s
• India is the sixth largest crude oil consumer in the world refining capacity
with consumption at 122 MMT in 2003-2004.
• Petroleum, Oil Lubricants (POL) imports is 28 per cent
of the total imports of India and POL exports is 8 per
cent of total exports for 2004-05. (Source : PwC
Analysis)
• All five Indian companies appearing on the Fortune 500
list operate in the Oil & Gas sector.
Source: India Brand Equity Foundation
170
5.2.1 Crude oil and POL product forecast - Introduction
Significant Sectoral Trends

The sector has been opened up to private and foreign investments with private players now able to bid for oil
exploration blocks.
Movement from an administered price mechanism to a market driven mechanism has taken place.
India has also developed significant refining capabilities that capitalize on cost competitiveness and location advantage.
There exists potential for India to emerge as a major refining hub over the next 5-10 years. By 2010, there is likely to
exist a deficit of 112 Mtpa across the world owing to shutting down of select refineries. Several Export oriented
refineries are being set up to capitalize on world shortage of refined product.
Refinery capacity is expected to go up from 2006 levels of 132 Mtpa to 243 Mtpa by 2011-12 based on projects under
various stages of implementation. crude imports and refinery exports are expected to rise significantly based on this
trend as has been the case over the last few years as seen in exhibit 5.2.3
Pipeline networks are being laid across the country to aid in the transport of POL product.
Exhibit 5.2.3 India’s petroleum exports on the rise since 2001 (in value
terms)
Source: KPMG India Energy Outlook
171
Demand & Supply Overview of crude Oil - Step Exhibit 5.2.4 India's Crude Oil Consumption and
1&2 Production
In million metric tonnes per annum

The domestic production of crude oil has been in 140.0
127
122
the range of 32-34 MMT over the past few years 120.0 112
107
and is unlikely to increase in the absence of any 103
P ro ductio n
significant discoveries of crude oil. 100.0
Co nsumptio n
80.0
Consumption has been in excess of production as
seen In exhibit 5.2.4 and has been growing at 60.0
around 6% per annum over the last five years. 40.0 32.4 32.0 33.0 33.4 34.0
India meets 75 per cent of its crude oil demand 20.0

through imports as seen in exhibit 5.2.5. Crude oil 0.0
exports have been negligible historically. About 60 2000-01 2001-02 2002-03 2003-04 2004-05
per cent of crude imports are from the Middle East.
Exhibit 5.2.5 : Indian crude oil imports
in million tonnes per annum

120
96
100 90
79 82
74
80
60
40
20
0
2000-01 2001-02 2002-03 2003-04 2004-05
Source: Ministry of Petroleum & Natural gas
172
Exhibit 5.2.6 : India's POL product Consumption and
Demand & Supply Overview of POL
Product - Step 1 & 2 Production
140.0
122.7 124.0
India’s POL product consumption has 117.6
120.0
In million metric tonnes per annum

111.6 111.9
been growing at 3-3.5% annually with 104.3
108.7
104.1
107.8
P ro ductio n
99.6 100.1 100.4
production overtaking consumption in 100.0
97.1
Co nsumptio n
recent years as seen in exhibit 5.2.6. 83.0
80.0
Mirroring the production trend, India has
turned into a net exporter of POL product
60.0
over the last few years as additional
refining capacity is created as seen in 40.0
exhibit 5.2.7.
20.0
0.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Exhibit 5.2.7 :India POL product trade (in volume)

20.0
17.5
18.0
in million tonnes per annum

16.0 14.6
14.0 P OL impo rts
P OL expo rts
12.0
10.0 10.1 10.3
10.0 9.3
8.9
8.0
8.0 7.0 7.2
6.0
4.0
2.0
0.0
2000-01 2001-02 2002-03 2003-04 2004-05
Source: Ministry of Petroleum & Natural gas

173
Refinery : Current and Planned capacity -

Exhibit 5.2.8 : Installed capacity of Refineries (as of 1st
Step 3
April, 2006) in TMTPA
The traffic assessment for crude and POL
Name of Refinery Crude Linkage with Capacity
product was undertaken after taking into
account the trend of increasing refining IOC-GUWAHATI Assam Oil fields 1000
capacity.
IOC-BARAUNI Haldia Port 6000
Existing Refineries - IOC-KOYALI Kandla Port 13700
As of 1st April 2006, India had 18 refineries with IOC-HALDIA Haldia Port 6000
a total installed capacity of 132 mtpa as seen
in exhibit 5.2.8. Total refinery crude throughput IOC-MATHURA Kandla Port 8000
for 2005-06 was 126 Mtpa. None of these IOC-DIGBOI Assam Oil fields 650
refineries share crude linkages with JNPT.
IOC-PANIPAT Kandla Port 6000
BPC-MUMBAI Bombay High offshore, 12000
Upcoming Refineries - Mumbai port
By 2011-12, an additional refining capacity of HPC-MUMBAI Bombay High offshore, 5500
111 mtpa is expected to be created. Mumbai port
Additional refining capacity is being set up at HPC-VISAKHAPATNAM Visakhapatnam port 7500

14 different locations by 2011-12. KRL-KOCHI Cochin port 7500
Of these 7 are existing refineries with plans for CPCL-CHENNAI Chennai port 9500
capacity augmentation. 7 refineries are being
set up as greenfield ventures. CPCL-NARIMANAM Chennai port 1000
BRPL - BOGAINGAON Assam Oil fields, Haldia 2350
Details are seen in exhibit 5.2.9.
NRL-NUMALIGARH Assam Oil fields 3000
MRPL-MANGALORE Mangalore port 9690
RIL-JAMNAGAR Jamnagar 33000
ONGC-TATIPAKA Krishna Godavari Basin 78

174
Exhibit 5.2.9: Year wise additions/ creation of Capacity by Refineries in India

(in Thousand Metric tonnes pa) *
Name of Refinery Type of 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Capacity
creation
HPCL Visakhapatnam Expansion 833 6670
HPCL Mumbai Expansion 2400
IOCL Panipat Expansion 6000 3000
ESSAR, Vadinar Greenfield 10500
Reliance Jamnagar Expansion 27000
BPCL Kochi Expansion 3000
ONGC Kakinada Greenfield 7500
BPCL Bina Greenfield 6000
Nagarjuna Cuddalore Greenfield 6000
IOCL Haldia Expansion 1500
IOCL Paradip Greenfield 9000
HPCL Bhatinda Greenfield 9000
MRPL Mangalore Expansion 5300
BPCL UP Lohagara Greenfield 7000
Year wise additions 9233 10500 30000 30670 23300 7000
Existing Capacity 132468 141701 152201 182201 212871 236171
Total Capacity 141701 152201 182201 212871 236171 243871
* - Based on project announcements till July 15, 2006 Source: KPMG Analysis, Existing plans
of industry
175
Crude Linkages for planned refineries -

Exhibit 5.2.10: Location of Additional refining
As seen in exhibit 5.2.10, the majority of the capacities till 2011-12
refineries planned are coastal and will have
crude linkages with existing ports through
creation of single bouy mooring facility off
the coast.
Existing refineries being augmented

Bhatinda
already have established crude linkages
Panipat
with specific ports. Planned crude
Linkage for inland Lohagara
The 4 refineries to be established inland, refineries with
have crude linkages planned with the Gujarat ports
Gujarat ports of Vadinar and Mundra.
Vadinar Bina
Additional refinery capacity in Mumbai Jamnagar
Haldia
region will source crude through imports
from Mumbai port as well as crude from Mumbai
ONGC’s offshore production via Bombay Paradeep
JNPT
High.
Visakhapatnam
JNPT is unlikely to have a linkage with any Kakinada
of these planned refineries for import of New Mangalore
crude.
Cochin
Cuddalore
Additional
refinery Capacity
176
National projections for crude and POL product traffic – Step 4

Significant assumptions in the forecast
India’s energy consumption has grown at the rate of 3.6% between 1999-2005. In line with this trend as well as industry
research we assume growth in POL consumption at 3.6% from FY06-07 till FY11-12. To be on the conservative side
we reduce this growth to 3% beyond 2011-12. Overall assumptions are well in line with India’s CAGR of petroleum
product consumption of 3-3.5% between 2001-05.
POL exports are expected to substantially increase with the setting up of large refining capacities. POL exports have
been linked with this increasing refinery capacity till 2011-12 and are grown at a conservative 3% beyond 2011-12.
Indian POL imports have historically grown at 5% since 2001. Given the planned increase in Indian refining capacities
by over 90%, it is likely growth rate in imports will be lower than historical levels. Additional refining capacity would
satisfy a large percentage of local consumption requirements. A POL product import growth rate of 3% was taken
FY06-07 onwards based on our analysis as well as industry research.
Domestic oil production in India has stagnated between 32-34 Mtpa for the last few years. In the absence of any fresh
crude discoveries it is expected that Indian crude production will start shrinking in a few years. Industry research
indicates a decrease of 25-30% by 2025. Accordingly a degrowth of 2.2% a year has been taken into domestic
production from 2012-13.
Coastal traffic of POL product is currently a significant portion of total traffic as it is used to distribute products through
the country. However with new greenfield refineries being established along with pipeline networks, coastal traffic of
POL product as a percentage of total POL traffic is expected to reduce. This has been factored into the forecast with
coastal tonnage as a percentage of refinery production reduced proportionately to 10% in FY24-25 from current level of
25%.
Crude throughput as a percentage of refinery capacity have been maintained at 95% from empirical industry data.
Refinery production of POL product as a percentage of crude throughput has been maintained at 95% from empirical
industry data.
Crude oil exports are assumed to be nil as has been the case historically. This is unlikely to change owing to the
increasing energy consumption by India and low domestic production. All domestic production of crude is expected to
be consumed by local refineries.
Sources : KPMG India Energy Outlook 2006, Ministry of Petroleum and Natural
Gas, RITES Report, Cygnus Industry Insight – Oil and Gas industry
177
5.2.1 India Crude and POL forecast
Methodology for Crude forecast – Step 4

Crude traffic in ports is a sum of two kinds of traffic – import traffic and offshore crude traffic.
Crude consumption in refineries was obtained from the total refining capacity planned upto FY 11-12. As domestic
production is likely to be completely consumed by refineries, the crude consumption was adjusted with domestic
production to arrive at expected import traffic. Offshore production is generally transferred coastally to the nearest port.
In Bombay High’s case some portion of offshore production is transferred by pipeline to Mumbai refineries. Hence,
coastal traffic for crude is total production adjusted for Bombay High production sent by pipeline. Crude requirements till
2011-12 were obtained from the sum of import and coastal traffic.
Beyond 2011-12, POL consumption and POL export trends were utilized to arrive at total refinery production and in turn
to arrive at requirements for crude.
National level crude forecast -
Based on the above methodology the national level forecast for crude traffic is 321 million tonnes in 2024-25 as seen in
exhibit 5.2.11
Exhibit 5.2.11 : National Level Crude traffic projections
178
5.2.1 India POL Product forecast
Methodology for POL Product forecast – Step 4

Total POL product traffic in the country was taken as the sum of import, export and coastal traffic.
Coastal traffic was obtained as a percentage of refinery production. POL imports were grown from current levels
based on industry forecast. Forecasted refinery production was adjusted for POL import and consumption trends to
arrive at POL product exports.
The sum of these forecasts was used to arrive at national POL product traffic.
National level POL product forecast -
National level forecast for POL product traffic is 229 million tonnes in 2024-25 in exhibit 5.2.12.
Exhibit 5.2.12 : National POL product traffic projections
179
5.2.1 JNPT Crude and POL forecast
JNPT Crude and POL forecast – Step 5

Having arrived at national level forecasts for crude and POL product, we attempted to apportion a portion of the
national level traffic to JNPT via a study of regional trends in traffic growth. In JNPT's context the absence of any
refinery linkages meant that crude forecasts had to be studied on the basis of regional traffic.
ONGC Crude Scenario -
Oil and Natural Gas Corporation (ONGC) controls the single largest source of India’s crude production in Bombay High
off the shore of Mumbai. It also owns Mangalore refinery and petrochemicals Limited (MRPL) that operates a 9.7 Mtpa
refinery in Mangalore. This refinery is carrying out an expansion to reach 15 Mtpa by 2010-11.
Currently ONGC has a submarine pipeline that originates from Bombay High and passes by its Uran oil fields (in the
vicinity of JNPT). This submarine pipeline then extends to the oil terminal Butcher island of Mumbai port as well as the
refineries of HPCL and BPCL.
ONGC aims to begin coastal shipment of Bombay High production crude via JNPT to its coastal refinery in Mangalore.
This is because it saves them substantial distance and time over sending crude via Mumbai port as seen from exhibit
5.2.13
ONGC is currently in the final stages of building a pipeline network connecting the BPCL jetty at JNPT to the Uran
segment of its pipeline. This will allow them to pump crude from Uran to JNPT to be coastally shipped by its vessels to
its refinery in Mangalore as well as other refineries along the west coast.
ONGC aims to begin operations of the pipeline by Dec 2006/Jan 2007 and go from 1 Mtpa to 6 Mtpa by 2024-25. This
depends on the availability of berthing schedules at BPCL’s liquid jetty.
This scenario is illustrated in the map of Mumbai harbour in exhibit 5.2.13.
180
Exhibit 5.2.13
ONGC crude
scenario
Existing ONGC
Pipeline to
Mumbai Port
MbPT Oil
terminal
BPCL Jetty
JNPT to
Mangalore
Uran to BPCL
jetty Pipeline
181
5.2.1 JNPT Crude forecast
Methodology for JNPT Crude forecast – Step 5

JNPT crude forecasts are closely aligned with ONGC crude forecasts starting at 1 Mtpa in 2007-08 rising to 6 Mtpa by
2024-25.
For the period beyond 2011-12 certain additional refinery capacity is expected to be set up inline with consumption
trends. JNPT as a port located in proximity to the crude hub may attract some portion of incremental refining crude
beyond 2011-12. We assume 5% of incremental national refinery production beyond 2011-12 as crude volumes that
may be handled by JNPT.
JNPT Crude forecast -
JNPT forecast for crude traffic at JNPT is 6.49 million tonnes in 2024-25 as seen in exhibit 5.2.14.
Exhibit 5.2.14 : JNPT Crude traffic projections
182
5.2.1 JNPT POL product forecast
Methodology for JNPT POL product forecast – Step 5

JNPT POL product traffic is largely coastal and this component is expected to continue to grow at the nationwide
historical rate of 5%.
The regional POL product traffic is expected to increase in the next couple of years due to expected growth of
refining capacity in Mumbai region by 2007-08. The bulk of this traffic is expected to be handled by Mumbai port.
With the growth in Mumbai refining capacity , JNPT export traffic is expected to grow faster than import traffic.
Accordingly an export growth rates of 7% and import growth rate of 5% was used to arrive at total export-import
traffic for JNPT.
The sum of coastal and export import traffic was taken to arrive at JNPT's total traffic.
JNPT Crude forecast -
Forecast for POL product traffic at JNPT is 6.27 million tonnes in 2024-25 as seen in exhibit 5.2.15.
Exhibit 5.2.15 : JNPT POL product traffic projections
183
5.2.2 Edible Oil and Molasses forecast
Basis for Edible Oil and Molasses forecast

The edible oil sector was studied to identify key trends that could impact the traffic through ports. India’s edible oil
consumption has been rising by 7% annually. It is expected that this will continue as per capita consumption is well
below world average. There has traditionally been a production consumption mismatch necessitating large edible oil
imports. At the same time domestic production has been fluctuating significantly resulting in variable edible oil traffic.
Suitable assumptions on production and consumption growth rates were taken for edible oil and molasses to arrive at a
forecast for traffic at a national level.
In light of fluctuating nature of the cargo, it was attempted to be conservative in forecasting JNPT share. State wise
share of national production and consumption was arrived at using data from the Annual survey of Industries.
Apportioning of state wise outputs was done to arrive at JNPT traffic based on industry research/ historical data. JNPT
was found to have a significant share of the molasses market with edible oil traffic originating from its primary hinterland
of Maharashtra.
JNPT share of the national edible oil and molasses traffic was found to be around 13%. A detailed forecast has been
made in the following pages.
Source: Annual report, Ministry of Agriculture
184
Significant Trends in the Industry - Exhibit 5.2.16 : Edible oil consumption per capita
With steady growth in population and personal
25
income, Indian per capita consumption of edible
oil has been growing but is still far below world 20
average as seen in exhibit 5.2.16. India
Wo rld
Kgs/annum
15
Vegetable oil production has been trailing
consumption growth, necessitating imports to 10
meet supply shortfall as seen in exhibit 5.2.17.
5
Domestic oil seed output typically shows a
fluctuating production trend which impacts edible 0
oil supply. 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
Imports currently constitute 45% of the

consumption and this share may rise in the
future.
Exhibit 5.2.17 : India Edible Oil Production and
Consumption
n thousand metric tonnes per annum

14000
12404 12500
12000
10468
9676 P ro ductio n
10000 9093
7664 Co nsumptio n
8000 7109
6146
6000 5499
4728
4000
2000
0
2000-01 2001-02 2002-03 2003-04 2004-05
Source: Solvent Extractor’s Association of India,

Annual report - Ministry of Agriculture
185
Assumptions -
Growth in edible oil consumption was taken at taken at 7.3% till 2011-12. This was the predicted growth rate for edible
oil consumption from the Exchange Traded Commodities Outlook 2006. Industry research indicates that beyond this
period edible oil consumption growth is likely to slow down as Indian per capita consumption would have increased
significantly to be close to current world levels. Accordingly a growth rate of 5% has been taken beyond 2011-12.
Edible oil production growth has consistently lagged behind consumption growth over the past few years. As per
Solvent Extractor’s association estimates this is likely to continue going forward. Accordingly a production growth of 5%
in line with the industry estimates is taken from 2006-07 onwards.
Edible oil exports have traditionally shown a fluctuating trend and these are grown at 3% in a conservative estimate
from 2006-07 onwards.
Molasses imports and exports are expected to grow at 3% annually based on industry research.
Methodology -
National Edible oil traffic was determined from the sum of import and export traffic.
Export and import traffic in edible oil and molasses was arrived at from Directorate General of Foreign Trade , Ministry
of Commerce statistics for 3 years till 2005-06. Domestic consumption and production of these liquids was grown at
specific percentages.
Import traffic was grown at a specified percentage. The differences between edible oil consumption and production was
used to arrive at annual import traffic.
Port traffic was assumed to be 95% of total import and export traffic.
Source: Solvent Extractor’s Association of India, Annual report -

Ministry of Agriculture, Exchange Traded Commodities Outlook
2006
186
5.2.2 India Edible Oil and Molasses forecast
National level forecast -

Based on the above methodology, national level forecast for Edible oil and Molasses traffic is 16.2 million tonnes in
2024-25 as seen in exhibit 5.2.18.
Exhibit 5.2.18 : National Edible oil and Molasses forecast
187
5.2.2 JNPT Edible Oil and Molasses forecast
JNPT forecasts -
Annual survey of Industries (ASI) gives state wise outputs and inputs for each industry. State wise traffic for each
state was arrived at by mapping onto ASI data for edible oil and molasses industry and was projected upto 2024-25.
Maharashtra traffic of edible oil exports and imports was calculated.
JNPT has historically had a share of 90% of edible oil exports and 15% of imports from Maharashtra. These
percentages are likely to be maintained going forward and have been used to arrive at JNPT's edible oil traffic.
JNPT is expected to retain its share of 40% in a growing national molasses traffic. This percentage share was used
to arrive at national molasses export and import traffic till 2024-25.
Based on the above methodology, JNPT's forecast for edible oil and molasses traffic for 2024-25 is 2.1 million
tonnes as seen in exhibit 5.2.19.
Exhibit 5.2.19 : JNPT Edible oil and Molasses forecast
188
5.2.3 Liquid chemical forecast
Basis for liquid chemical forecast

Liquid chemicals are a diverse set of chemicals/ petrochemicals. Their growth depends on the specific segment of the
chemical/petrochemical industry they are associated with.
Liquid chemical forecast was limited to a set of 7-8 chemicals that JNPT is capable of handling. Having defined the
universe of chemicals, each of their related segments in the chemical/petrochemical industry were studied for trends
and usage in those industries. Suitable growth rates were assumed from these industries and applied to arrive at
national level traffic for this universe of liquid chemicals.
State wise share of national production and consumption for each of these chemicals was arrived at using data from
the Annual survey of Industries. Aggregation of individual chemical data and apportionment of state wise traffic was
done to arrive at JNPT traffic. JNPT's liquid chemical market was found to be closely aligned to its primary hinterland of
Maharashtra.
As per our forecasts JNPT's share of the national liquid chemical market was found to be less than 3%. A detailed
forecast has been made in the following pages.
Source: Annual report, Ministry of Chemicals, Cygnus Chemicals

Industry insight, Industry research, KPMG Analysis
189
Definition -
Sector definition is limited to liquid chemicals of class A, B and C handled by JNPT in the past. These chemicals as
listed below are -
• Xylene
• Paraxylene
• Styrene
• Butyl Acralate
• Phosphoric Acid
• Acetic Acid
• Linear Alkyl Benzene (LAB)
• Mono ethylene glycol (MEG)
Significant Trends in the Sector -

Liquid chemicals is not classified separately as a industry – it Is dependant on growth of chemical and petrochemical
industries.
Indian per capita petrochemical consumption is rising significantly.
Significant refinery capacity is being set up which is expected to enhance liquid chemical production as by products of
the refining process. Aromatics such as Xylene and styrene are used in further down stream production of various
petrochemical products.
Surfactants such as LAB used for cleansing are expected to see rise in exports owing to surplus capacities and
shortages abroad.
Basic chemicals industry has shown a consistent growth rate of over 8% with exports and imports rapidly increasing.
Chemicals/ petrochemical industry is dominated by the state of Gujarat with over 50% share of production with
Maharashtra being the second highest producer with approximately 15% share.
190
Significant Assumptions -
Four main classifications of the liquid chemical products are created based on usage -
• Surfactants such as LAB
• Aromatics such as styrene, xylene
• Acids/basic chemicals such as phosphoric acid, acetic acid
• MEG (Mono ethylene glycol)
Industry research indicated that India has a surplus capacity of LAB coupled with a shortage abroad. Growth rates of
exports have been over 12% over the last 2 years and are expected to rise further. Accordingly LAB exports were
grown at 15% till FY11-12. LAB imports have reduced substantially over the last few years as India has set up capacity.
Imports have shown a degrowth and this has been maintained at a rate of 5%
Requirement for aromatics such as styrene and xylene has increased with the growth in petrochemical industry have
Industry research indicates an import growth at 7% till FY11-12. Beyond this period export growth is expected to slow
down. Accordingly this has been taken at 5% beyond 2011-12.
The acids component of the chemicals industry has stagnated with import and export growth rates hovering around 3%
as per industry research. Accordingly 3% is the growth taken from current levels for acids. MEG trade has shown a
similar trend.
Methodology -
National liquid chemical traffic is determined from the sum of import and export traffic. Export and import traffic for the
last 3 years was arrived at from Directorate General of Foreign Trade , Ministry of Commerce statistics. Exports and
imports are grown at specified percentages as discussed in the assumptions above. These were aggregated to arrive
at national liquid chemical traffic.
Source: Annual report, Ministry of Chemicals, Cygnus Chemicals

Industry insight, Industry research, KPMG Analysis
191
5.2.3 India liquid chemical forecast
National liquid chemical Forecast -

Based on the above methodology, national level forecast for liquid chemical traffic is 22.3 million tonnes in
2024-25 as seen in exhibit 5.2.20.
Exhibit 5.2.20 : National liquid chemical forecast
192
5.2.2 JNPT liquid chemical forecast
JNPT forecasts -
Annual survey of Industries (ASI) gives state wise outputs and inputs for each industry. State wise traffic for each state
was arrived at by mapping onto ASI data for chemical industry and was projected upto 2024-25. Maharashtra traffic of
chemicals was calculated.
JNPT has historically had a share of 32% of liquid chemical imports and 40% of liquid chemical exports from
Maharashtra. These percentages are likely to be maintained going forward and have been used to arrive at JNPT's
liquid chemical traffic.
Based on the above methodology, JNPT forecast for liquid chemical traffic in 2024-25 is 0.57 million tonnes as seen in
exhibit 5.2.21.
Exhibit 5.2.21 : JNPT liquid chemical forecast
193
The overall national liquid traffic forecast reaches 588.7 million tonnes per annum (in 2024-25) as seen in exhibit 5.2.22
Exhibit 5.2.22 : Overall national liquid forecast

Crude P OL Edible Oil/ M o lasses Chemical To tal
700.0
588.7
573.5
600.0 558.9
544.8
531.2
493.3 505.5 518.1
in Million tonnes per annum
481.5
500.0 448.9 459.4 470.2
438.8
420.5 429.3
375.1
400.0
312.4
300.0 250.1
231.5
214.9 \
200.0
100.0
0.0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
194
JNPT is forecasted to have less than 3% of total national traffic in liquids by 2024-25. Total traffic is expected to rise
upto 15.4 million tonnes per annum by 2024-25 as seen in exhibit 5.2.23.
Exhibit 5.2.23 : Overall liquid forecast at JNPT

Crude P OL Edible Oil/ M o lasses Chemical To tal
18.0
15.4
16.0
14.0
13.5
14.0 13.1
12.8
in Million tonnes per annum
11.1 11.4
12.0 10.7
10.1 10.4
10.0 8.6 8.8

8.3
7.8
8.0
5.2 5.5 \
6.0 4.7 5.0
3.3 3.5
4.0
2.0
0.0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
195
5.3 Vessel forecast
5.3.1 Vessel Sizes on the Europe Asia Route
A substantial portion of the traffic in JNPT consists of Exhibit 5.3.1: Region wise Container
ships plying on the Europe Asia Route. A break up of Traffic
the traffic at JNPT as seen in exhibit 5.3.1 shows that
about 75% of traffic is Europe, Mid East or far east
traffic. As a result the vessel forecast for JNPT would
depend primarily on vessel sizes on the Europe Asia 18.17
29.34 %
route. %
2.06
The vessel size break-up as of 2004-05 at JNPT is % 8.09 % 14.60
shown in exhibit 5.3.2. To arrive at the future vessel %
20.21
sizes, the vessel size projections for the Europe Asia %
route was used. This was calculated on the basis of the Source: JNPT, Ops Department & CES report
UNESCAP study titled Regional Shipping and port
development strategies.
Exhibit 5.3.2 : Vessel Size Break up at JNPT -
The base case scenario proposed by the UNESCAP Current
study on Regional Shipping is adopted to evaluate
developments in vessel sizes. The base case scenario
explores a relatively conservative hypothesis. This is TEU Proportion
that the growing demand for the carriage of
containerized cargoes will be met by a continuation of
the slow ‘creep’ in ship size similar to that which < 750 5.84%
characterized the 1970s and 1980s. This is combined
with an increase in the number of ‘strings’ (as each 750 - 1750 15.72%
service offered by a consortium of liner shipping
companies has come to be known) that are operated in
each of the major trades. The number of ports included 1750-3500 58.75%
on each string is similar to the number included on the
major services of today. 3500-5500 14.58%
The base case scenario has been chosen to identify
sea side requirements for JNPT as the port does not lie 5500-8000 5.10%
on any of the major shipping routes, where the big ship
scenario is applicable. 8001-13000 0.00%
196
5.3 Vessel forecast
5.3.1 Vessel Sizes on the Europe Asia Route
Expected change in vessel size composition on the Exhibit 5.3.3 Vessel Sizes on the Europe Asia Route
Europe Asia route between 2006 and 2011 has been
CAGR in
shown in exhibit 5.3.3 with their CAGR of the change in
2011 vessel
proportion. For example if the proportion of 750-1750 TEU
Size (TEU) 2006 (Base) proportion
vessels in 2006 is 29.62% which reduces to 28.95% in
2011 the CAGR of the proportion would be -.45%. At the < 750 17.21% 16.81% -0.47%
same time the number of ships of 750-1750 TEU may 750 - 1750 29.62% 28.95% -0.45%
have increased.
1750-3500 25.02% 25.69% 0.53%
The growth rate of the Europe Asia route (as estimated by
the UNESCAP study) consists of transhipment, coastal as 3500-5500 14.37% 14.66% 0.41%
well as export import traffic. Discussions with port users 5500-8000 13.78% 13.89% 0.15%
and shipping lines also indicate that 3500 – 6000 TEU
ships that ply on main trade routes (Europe Asia, Europe Source: KPMG Analysis, ASEAN Maritime Transport
Far East, America- far east, transpacific) will be replaced Development Study, UN ESCAP 2001 ‘Globalization
by larger ships (above 8000 TEU) and the replaced ships and Integration of Transport: Regional Shipping and Port
would be deployed on the Europe Asia route. This would Development Strategies’
lead to a higher growth rate in the 3500-5500 TEU bracket Apart from this the 8001-13000 Ship Bracket is assumed
than that predicted by the UNESCAP model. Historical to grow at the average rate of 0.03%
data and discussion with the port indicate that 750-3500
TEU ships are witnessing a reduction in proportion. Exhibit 5.3.4 : CAGR in vessel proportion
Discussions with experts and shipping lines indicate that CAGR in vessel CAGR in vessel
the average growth rate of ship sizes would be around 2 - proportion proportion
2.5% on the Europe Asia route. Size (TEU) (UNESCAP) (Corrected)
Based on the above the growth rates as predicted by the < 750 -0.47% -1.41%
UNESCAP model have been corrected based on
750 - 1750 -0.45% -1.35%
discussions with port users and analysis of historical data
at JNPT. 1750-3500 0.53% -0.85%
JNPT vessel composition predictions for future years were 3500-5500 0.41% 1.20%
found on the basis of corrected growth rates for the 5500-8000 0.15% 0.40%
Europe Asia route as seen in exhibit 5.3.4.
Source: KPMG Analysis, Discussions with port users
197
5.3 Vessel forecast
5.3.2 JNPT capabilities
JNPT's capabilities in handling large vessels would also

Exhibit 5.3.5 Vessels that can be serviced by JNPT
determine the future vessel traffic at JNPT. Currently due
to certain constraints in the channel JNPT cannot service Percent
ships beyond 4000 TEU (fully laden) and 6000 TEU Accommo
(partially laden). The channel draft is restricted to 12- TEUs dation Description
12.5m and ships requiring deeper draft cannot be serviced
by JNPT. All vessels in this bracket
< 750 100% can be serviced by JNPT
All vessels in this bracket
Shipping lines are likely to send smaller ships to JNPT if it
750 - 1750 100% can be serviced by JNPT
is unable to service the larger ships in their fleet.
However, through discussions with ship owners it is All vessels in this bracket
believed that a world class port should be able to handle 1751-3500 100% can be serviced by JNPT
82 -85% of the vessel types plying on its route (In this
case the Europe Asia route). Otherwise shippers may JNPT can only
move to another port which can service a larger proportion accommodate 4000 TEU
of their fleet. vessels fully laden and
vessels upto 5500 TEU
3500-5500 38% partially laden
Exhibit 5.3.5 shows the proportion of vessels that can be JNPT can service ships
serviced by JNPT within each size category. A upto 6000 TEU partially
homogenous distribution of ships across each size 5501-8000 5% laden
category was assumed to arrive at the figure.
8001-13000 0%
As illustrated in the exhibit JNPT can currently service * Figures based on discussions with port
only a limited number of 5500-8000 TEU ships since it can
only service partially laden 6000 TEU ships.
198
5.3 Vessel forecast
5.3.3 JNPT sea side traffic
Future Vessel Calls in containers Exhibit 5.3.6 Future Container vessel Calls
The parcel size currently at JNPT is around 1319.10 at JNPT
TEUs. This is expected to grow at the rate of 5.36% Traffic
every year. This growth rate is based on actual growth Handled Avg Parcel Vessel
rates witnessed in parcel sizes over the past three Year (Mn TEUs) Size (TEUs) Calls
years, from 1237.6 to 1319.1 between 2003-04 to 2005- 2006-07 3.22 1,319.10 2441
06. The traffic beyond JNPT 2015-16 is expected to
remain constant as it is expected that JNPT would reach 2007-08 3.77 1,389.81 2714
its realistic overall capacity (under the current 2008-09 4.43 1,464.32 3023
geographical and policy restrictions) of around 10.90 2009-10 5.19 1,542.82 3367
Mn TEUs in 2015-16.
2010-11 5.93 1,625.53 3647
The average parcel size along with traffic projections
2011-12 6.75 1,712.67 3941
can be used to arrive at future vessel calls at JNPT.
Average parcel size 2016-17 onwards continues to grow 2012-13 7.70 1,804.48 4266
given the trend of increased ship sizes. This has been 2013-14 8.75 1,901.22 4601
shown in Exhibit 5.3.6. This reflects in the reduced 2014-15 9.95 2,003.14 4969
number of vessel calls of all sizes 2016-17 onwards.
2015-16 11.00 2,110.53 5214
2016-17 11.00 2,223.67 4949
Future Vessel Break Up in containers 2017-18 11.00 2,342.88 4697
The future vessel break up at JNPT would be dependent 2018-19 11.00 2,468.48 4458
on vessel sizes on the Europe Asia Route (Exhibit 5.3.2)
2019-20 11.00 2,600.81 4231
and the current vessel composition at JNPT.
2020-21 11.00 2,740.23 4016
Analysis of the current vessel composition and
application of the growth rate of the vessels on the 2021-22 11.00 2,887.13 3812
Europe Asia route enables estimation of future traffic 2022-23 11.00 3,041.91 3618
composition. 2023-24 11.00 3,204.98 3434
Estimates of the future traffic composition at JNPT can 2024-25 11.00 3,376.80 3259
be seen in exhibit 5.3.7.
2025-26 11.00 3,557.82 3093
2026-27 11.00 3,748.55 2936
199
5.3 Vessel forecast
The expected composition of vessels at JNPT is given below.
Exhibit 5.3.7 Expected Vessel Composition for containers at JNPT (in Percentage)
TEUs 2006-07 2009-10 2012-13 2015-16 2018-19 2021-22 2024-25 2025-26 2026-27
< 750 5.84% 5.69% 5.55% 5.41% 5.26% 5.17% 4.98% 4.93% 4.88%
750 – 1750 15.72% 15.37% 15.01% 14.65% 14.29% 14.05% 13.56% 13.44% 13.32%
1751-3500 58.75% 58.30% 57.81% 57.28% 56.72% 56.33% 55.50% 55.29% 55.07%
3501-5500 14.58% 15.39% 16.22% 17.09% 18.00% 18.62% 19.91% 20.25% 20.58%
5501-8000 5.10% 5.26% 5.41% 5.57% 5.72% 5.83% 6.04% 6.09% 6.14%
8001-13000 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
As can be seen an increase in the proportion of vessels between the 3500-8000 TEU range is expected indicating
increasing ship sizes at JNPT. Using the above and the total vessel calls expected (Exhibit 5.3.6) the future container
vessel calls at JNPT can be predicted (Exhibit 5.3.8)
200
5.3 Vessel forecast
Exhibit 5.3.8 :JNPT Vessel Composition for containers (2006-15) *

TEUs 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
< 750 142 157 174 192 206 221 237 253 271
750 – 1750 384 424 468 517 556 596 640 685 734
1751-3500 1,434 1,591 1,767 1,963 2,120 2,285 2,466 2,652 2,855
3501-5500 356 403 457 518 571 628 692 760 835
5501-8000 125 140 157 177 194 211 231 251 274
8001-13000
Total 2,441 2,715 3,023 3,367 3,647 3,941 4,266 4,601 4,969
Exhibit 5.3.8 : JNPT Vessel Composition for containers (2015-27)

TEUs 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
< 750 282 265 250 235 221 208 195 184 173 162 153 143
750 – 1750 764 719 677 637 599 564 531 499 470 442 416 391
1751-3500 2,987 2,826 2,673 2,529 2,392 2,262 2,140 2,023 1,913 1,809 1,710 1,617
3501-5500 891 861 831 802 775 748 722 697 673 649 626 604
5501-8000 290 278 266 255 244 234 224 215 206 197 188 180
8001-13000
Total 5,214 4,949 4,697 4,458 4,231 4,016 3,812 3,618 3,435 3,259 3,093 2,935
* - Individual categories of ships have been brought to their closest integer

201
5.3 Vessel forecast
Liquid Cargo - Exhibit 5.3.9: Liquid vessel calls and parcel

JNPT has liquid vessels of several sizes visiting it ranging size by product category (in2005-06)
from ships less than 10000 DWT carrying chemicals to ships
of uptil 50000 DWT carrying POL product. Average parcel
Current Number of
Size
The average parcel size of liquid vessels calling at JNPT in Category vessel calls
(in tons)
2005-06 was 10739 tonnes. Parcel sizes for various product
categories vary between 12446 tons for POL product to
POL product 189 12446
2944 tonnes for chemical as seen in exhibit 5.3.9.
The average parcel size for individual categories has been Chemicals 60 2944
grown at 3% annually to arrive at overall parcel size. The
traffic for individual categories along with parcel size is used Edible Oil 51 10717
to arrive at the expected number of vessel calls in the future.
Molasses 10 10470
Exhibit 5.3.10 presents the expected number of liquid cargo
vessel calls for JNPT. Overall 310 10739
Exhibit 5.3.10: Liquid traffic forecast of annual vessel calls

2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014-
05 06 07 08 09 10 11 12 13 14 15
Product Forecast
(in TMTPA) 3486 3329 3612 4742 4981 5225 5485 7762 8322 8583 8849
Parcel Size 9819 10739 11033 13013 13259 13514 13780 16618 17337 17706 18078
Vessel Calls 355 310 327 364 376 387 398 467 480 485 490
2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023- 2024-
16 17 18 19 20 21 22 23 24 25
Product Forecast
(in TMTPA) 10129 10424 10733 11058 11400 12759 13137 13534 13951 15390
Parcel Size 19483 19877 20282 20698 21126 22498 22951 23417 23897 25253
Vessel Calls 520 524 529 534 540 567 572 578 584 609
202
Chapter 6
Internal infrastructure
assessment and project
identification
203
6.1 Internal Infrastructure Requirements
6.1.1 Need for Integrated Capacity Assessment Model
Capacity of a port is determined by a number of elements that contribute to the overall functioning of a port. It is
important to realize that capacities of these direct and indirect elements involved in the port and their interdependencies
may potentially inhibit a port from achieving its full capacity.
Any capacity addition in a port therefore needs to be looked at from an integrated perspective by identifying various
projects across the ports process chain that need to be undertaken.
KPMG has developed an integrated capacity assessment model to identify bottlenecks and constraints that would be
faced by the port every year and the projects that need to be undertaken to remove the bottlenecks to achieve the
strategic goals of the port.
The model is based on the following three principles:
1. Identification of interdependencies between various processes
2. Quantitative assessment of capacities across each element (using assumptions obtained from the port and
KPMG)
3. Assessment of required capacities every year based on traffic forecasts (provided in section 5)
The model has also attempted to exploit synergies that exist by phasing projects while keeping replacement cycles of
the equipment in mind. Extensive discussions with port personnel in operations, finance and planning department were
done to identify projects that need to be undertaken to ensure that phasing of the project overlaps with replacement
cycles of the equipment thereby ensuring effective cost management.
The basis for the model is the traffic projections which have been broken down into the following :
z Rail and Road – The traffic proportion between rail and road has been taken on the basis of traffic projections.
To ensure that all points the model plans for excess capacity of around 10%, the rail and road traffic has been
increased by 10%. (Rail & Road split has been explained in Annexure 1.7)
z Exports, Imports and Transshipment – The traffic has been divided into exports and imports on the basis of
growth rates of exports and imports from the country across various industries (See section 5.1).
Transshipment has been assumed at 10% during the plan period based on the following trends:
− the trend in development of ports in nearby region which might lead to an increase in transshipment,
− the presence of ports with deeper drafts and emergence of ports in the south such as Colombo as
transshipment hubs would reduce transshipment traffic arriving at JNPT
Hence it is expected that while the volume of transshipment would increase the proportion of transshipment
traffic at JNPT would continue to be around 10%
204
6.1.2 Introduction to Integrated Capacity Assessment Model
The integrated capacity assessment model consists of the following modules and respective outputs from each them:
Module Output
Sea Side capacity Requirements of pilots
Requirement of Pilot Launches
Requirement of Tugs
Expected ship sizes and number of calls
Cargo capacity (Containers) Requirement of RMQC
Requirement of Reach stackers
Requirement of RTGCs
Requirement of Tractor Trailers
Requirement of Import yard Capacity
Requirement of Export Yard Capacity
Requirement of Gate Capacity
Hinterland Capacity Requirement for rail capacity (number of tracks) within the port
Requirement of RMGCs
Requirement of road (from highway to port vicinity) capacity
Requirement of rail (from port vicinity to port) capacity
Storage Capacity Requirement of CFSs
Requirement of Empties storage yards
Cargo Capacity (Liquids) Requirement of Berth capacity
Requirement of Pipelines
Requirement of Tank farms
205
The individual module interlink the dependencies and

process flows to arrive at the output. The
interdependencies and process flow considered for each
of the module is provided below: Average
Traffic
parcel
Sea Side capacity forecast
Size
The traffic forecasts were used in conjunction with the
average parcel size to arrive at the number of ship calls
that are expected.
Detailed discussions with marine department were dome
to arrive at assumptions for the number of tugs/pilots etc
that would be required to service a ship call at JNPT.
Ships
z 1.00 Tugs are required per ship/day or 0.5 tugs per entering
movement / day would be required. This includes a the port
buffer of 10% tugs being non operational. This also
includes downtime and shifting (inter and intra
terminal) operations. (This figure considers extreme
weather conditions/ large vessels)
z 0.15 pilot launches/ship per day or 0.30 pilot Number of Number of
launches per movement/day would be required. tugs pilots
This includes a buffer for downtime, servicing of required required
supply vessels and other movements.
z Assuming each pilot working on 24 hours shift on
alternate days the number of pilots required would Number of pilot
be 0.50 pilots per ship per day. This would include launches
buffer requirements for pilots which arises due to required
reserve leave, shifting movements (inter and intra
terminal) and dredging movements (for dredging
vessels).
206
The details of expected traffic and assumptions from marine department were used to identify bottlenecks that would be
faced as shown below
Specific projects were then identified to overcome these bottlenecks.
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Total Calls 2,335.00 2,768.00 3,079.00 3,399.00 3,754.00 4,045.00
Required
Number of tugs required 1 tug/ships per day - 6.40 7.58 8.44 9.31 10.28 11.08
Pilot launches .3 pilot launches/ship - 1.92 2.28 2.53 2.79 3.09 3.32
per day
Number of pilots required 1 pilot /ship/day - 6.40 7.58 8.44 9.31 10.28 11.08
Available
Tugs Available 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Pilot lauches Available 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Pilots Available 9.00 9.00 9.00 9.00 9.00 9.00 9.00
Bottleneck due to
requirement greater than
avilability
availability
207
Exhibit 7.2 Future Vessel Calls at JNPT (Containers) Exhibit 7.3 Future Vessel Calls at JNPT (Liquids)
Traffic Product
Handled Avg Parcel Forecast
Year (Mn TEUs) Size (TEUs) Vessel Calls Year (TMTPA) Parcel Size Vessel Calls
2006-07 3.22 1,319.10 2441 2004-05 3,486 9,819 355
2007-08 3.77 1,389.81 2714 2005-06 3,329 10,739 310
2008-09 4.43 1,464.32 3023 2006-07 3,612 11,033 327
2009-10 5.19 1,542.82 3367 2007-08 4,742 13,013 364
2010-11 5.93 1,625.53 3647 2008-09 4,981 13,259 376
2011-12 6.75 1,712.67 3941 2009-10 5,225 13,514 387
2012-13 7.70 1,804.48 4266 2010-11 5,485 13,780 398
2013-14 8.75 1,901.22 4601 2011-12 7,762 16,618 467
2014-15 9.95 2,003.14 4969 2012-13 8,322 17,337 480
2015-16 11.00 2,110.53 5214 2013-14 8,583 17,706 485
2016-17 11.00 2,223.67 4949 2014-15 8,849 18,078 490
2017-18 11.00 2,342.88 4697 2015-16 10,129 19,483 520
2018-19 11.00 2,468.48 4458 2016-17 10,424 19,877 524
2019-20 11.00 2,600.81 4231 2017-18 10,733 20,282 529
2020-21 11.00 2,740.23 4016 2018-19 11,058 20,698 534
2021-22 11.00 2,887.13 3812 2019-20 11,400 21,126 540
2022-23 11.00 3,041.91 3618 2020-21 12,759 22,498 567
2023-24 11.00 3,204.98 3434 2021-22 13,137 22,951 572
2024-25 11.00 3,376.80 3259 2022-23 13,534 23,417 578
2025-26 11.00 3,557.82 3093 2023-24 13,951 23,897 584
2026-27 11.00 3,748.55 2936 2024-25 15,390 25,253 609
208
Cargo capacity (Containers)

Traffic forecast
The traffic forecasts was used as the basis to identify
required capacity in the following areas:
z RMQC Capacity
z Wharf to Yard Capacity
Berth
z Import Yard Capacity Terminal Capacity
z Export Yard Capacity
z Gate Capacity
These are then compared with the required capacity Wharf to Yard
(based on traffic) to identify bottlenecks that exist. Tractor Trailer
Capacity
Assumptions in the section were made in discussions with
the operations department and covered:
z Moves/hour (calculated only on actual working
hours)
Yard Management
z Number of working days RTGC and Reach
Stacker capacity
z TEU/Moves ratio
z Twin moves as a percentage of total moves
z Moves/hr of reach stackers and RTGC Yard Yard
Export Yard Import Yard
z Moves per hour of tractor trailers
Capacity Capacity
z Stack height in import and export yard
z Dwell time in import and export yard
Import
z Check in time at gates Gate to yard to
export Gate gate
yard Gate Capacity
209
RMQC Capacity
Berth Occupancy 70% (to ensure 30% excess capacity at all times)
Working days/ year 363
Actual Working hours/day 24 * Occupancy * 0.9 (10% movement time)
TEU/Moves Ratio 1.3 (based on current reality)
Double Moves 10%
Wharf to Yard Capacity
Wharf to Yard Reach Stacker
Number of moves/ hour that can be managed by 1

5
Reach Stacker/hr
Wharf to Yard RTGC
RMQC moves/ 2.3 (For each TEU RTGC will make min of
Number of TEU/ hour that can be managed by 1 RTGC
2 moves Assuming 2.3 moves)
Wharf to Yard Tractor
Number of teu/ hour that can be managed by 1 tractor

25 mins per round with two TEUs
trailer
210
Import Yard Capacity
Dwell Time (days) 2
Yard Capacity @ 70% 30% space is not used due to suboptimal utilization
Stack height 3.5
Area/ Ground Slot (sqm) 45 (based on discussions)
Export Yard Capacity
Dwell Time (days) 6
Yard Capacity @ 70% 30% space is not used due to suboptimal utilization
Stack height 4
Area/ Ground Slot (sqm) 45
Gate Capacity
Container check time (Hrs) 0.05 (based on discussions)
Peak Load 10%
Trucks/TEU ratio 1.6
211
The details of expected traffic and assumptions as listed were used to identify bottlenecks that would be faced as
shown below
Specific projects were then identified to overcome these bottlenecks.
Increase in capacity due

** to GTI becoming
operational
**
Increase
Capacity in
shortfall
capacitydue
due
to
to
lack
GTI
ofbecoming
available
operational
capacity
*Transshipment traffic assumed at 10% of total traffic

** Rail and Road traffic has been modeled for 10 % excess capacity at all times
212
Hinterland Capacity
Traffic forecast
The hinterland capacity assessment module of the ICAM
has three sub modules within it. These are:
z Rail capacity Inside port: This module measure the
capacity of rail tracks laid inside the port and
whether they would be enough to service the
projected traffic Traffic by road Traffic by rail
z Rail capacity outside port: This module measures
the rail capacity available outside the port (rail
tracks leading to the port) and whether they would
be enough to service the projected traffic
Approach
Link road
z RMGC capacity : This measures whether the road
capacity
RMGC capacity would be able to handle the capacity
projected traffic
z Road Module : This measures whether there is
capacity to handle traffic on roads leading to the
port from highways (link roads) and roads leading to
the port from link roads (approach roads)
To quantitatively assess the capacity of each of the above
modules assumptions were made for the following
z Number of mixed trains in the port as terminals get Track Track
added capacity in capacity
port outside port
z Non (un) loading hours of mixed and pure trains:
Taken on the basis of current performance
z Trains that can be handled by a single track outside
port (arrived at post discussion with railways) RTGC
capacity
The rationale behind rail road split is explained in
Annexure 1.7
213
(Number of rakes * number of trains

Rail Capacity inside port handled/day(A))/(1+mismatch between export and imports)
Time taken to turn around the train (hrs) weighted average turn around time
Time taken to turn around pure trains loading time + Inactive time (pure train)
Time taken to turn around mixed trains loading time + Inactive time (mixed train)
Number of rakes/train 180
Number of tracks inside the port 6
Number of Trains that can be handled/day (A) (24/(time to turn around the train (hrs))*number of tracks in the port
Percentage of mixed trains 40.00%
Percentage of pure trains 60.00%
Mismatch between exports and imports 30%
(Number of rakes * number of trains
Rail Capacity Outside Port handled/day(B))/(1+mismatch between export and imports)
Number of tracks 2
Trains/day/track (B) 12 (based on discussion with railways)
RMGC Capacity C*D*E*F*G
Number of cranes (C) 9
Moves per hour (D) 18 (based on discussion with ops department)
Working hours / day (E) 20
Working days/year (F) 363
Moves/TEU Ratio (G) 1.3 (based on current realities)
loading/ unloading time (H) No of rakes/(moves/hr*number of cranes*moves/TEU)
Non (un)loading time (I) 20.00% (based on current data)
Non (un)loading time (mixed train) (J) 60.00% (based on current data)
214
Rail Capacity inside port **

Time taken to turn around the train (hrs) weighted average turn around time
Time taken to turn around pure trains loading time + Inactive time (pure train)
Time taken to turn around mixed trains loading time + Inactive time (mixed train)
Number of rakes/train 180
Number of tracks inside the port 6
(24/(time to turn around the train (hrs))*number of tracks
Number of Trains that can be handled/day in the port
Percentage of mixed trains * 67%
Percentage of pure trains * 33%
Mismatch between exports and imports 30%
Note: Overall Rail capacity would therefore be equal to minimum of rail capacity inside port, rail capacity
outside port and RMGC capacity
•The ratio of mixed: pure trains is increased to 80:20 after the fourth terminal is on stream in 2010-11
215
Road
PCUs 725 (based on study of TPA Eng. report on roads near the
Traffic per lane (A)
port)
Port Approach Roads B
Port approach road (B) No of Lanes (Currently 4)
Port Link Roads C+D+E
SH (C) No of Lanes (Currently 2)
NH (D) No of Lanes (Currently 4)
Other 2 (E) None currently
PCU Capacity/day (F) Traffic per lane *(Minimum of (port approach roads and port link roads)
Commercial PCUs %age (G) 80% (based on study of TPA Eng. report on roads near the port)
Non Commercial PCUs %age (H) 20% (based on study of TPA Eng. report on roads near the port)
PCU to TEU Converter 0.325 (based on study of TPA Eng. report on roads near the port)
TEU/day PCU capacity per day * commercial PCUs * PCU to TEU converter
Loading factor (total TEU traffic/loaded TEU

1.25
traffic)
Peak Load Factor 1.5
Roughness of road and other factors
1.2
(Inefficiency caused by road conditions)
(TEU/day * 365 )/ (Loading factor * Peak load factor * roughness
TEU/Year
factor)
216
shown below
Specific projects were then identified to overcome these bottlenecks. The model also incorporated projects that are
already under implementation:
Bottleneck faced due to

capacity being less than
requirements
Increase due to addition

of track outside port
Increase in capacity due

to GTI adding RMGCs
217
Storage Capacity
The storage capacity assessment module of the ICAM has two Traffic forecast
sub modules within it. These are:
z CFS storage capacity
30% of 57% of
z Empties storage capacity
exports imports
To quantitatively assess the capacity of each of the above
modules assumptions were made for the following Exports Imports
Empties traffic
z Import exports that would occur through CFSs this was through CFS through CFS
arrived at through discussions with operations
department and various CFS operators in and around the
port
z TEU output per 100 sqm of CFS warehousing area Export
z Dwell times warehousing
space
z Stack heights
z Assumption on percentage of CFS requirement that
would be fulfilled by CFSs within port area vis-à-vis
fulfilled by CFSs outside port area. This has been
assumed to be 40% in initial years going upto 70% in Import Import
latter years due to lack of available land outside the port warehousing stacking
The rationale behind setting up CFS and Empties inside the port space space
is explained in Annexure 1.8.
Empties
Currently research indicates that around 45% of overall stacking
traffic at the port passes through CFS (B. Raghuram Total space
report, IIM Ahmedabad). The expected increase in warehousing required
proportion of traffic via railway means that this space
percentage is unlikely to increase as CFS traffic is
dependant on road traffic. It is also expected that over
the years proportion of Maharashtra traffic at JNPT is
likely to increase. This is primarily LCL cargo arriving
through road and needs to be serviced through a CFS
network. Further the EPZ would also require CFS
support creating the need for CFS infrastructure.
218
Export through CFS 30.00% (based on discussion and analysis of data)
Import Through CFS 57.00% (based on discussion and analysis of data)
CFS Storage Capacity (Ex and Imp

Yard capacity (warehousing) * efficiency of space utilization
Warehousing)
Efficiency of space utilization 0.85 (based on discussion and analysis of data)

Yard Capacity (warehousing) 420 * utilised warehouse space % * CFS area
TEU pa per 100 sqm 420 ((based on discussion and analysis of data))
Utilized Warehouse space 17.33% (1/3rd of area for stacking) based on analysis and interviews
CFS Area Actual area under CFSs (1362950 sqm currently)
CFS Storage Capacity (Im) Stacking Yard capacity (Stacking) * efficiency of space utilisation
Efficiency of space utilization 0.85 (based on discussion and analysis of data)
Dwell Time 13.0 (based on discussion and analysis of data)
Yard Capacity (Stacking) (TEUs at a time * 365)/ dwell time
TEUs at a time Ground slots * stack height
Stack height 3.5
Ground Slots (CFS area * stack area % )/ (area/ground slot)
Area/ Ground Slot 52 (based on analysis and research)
Stack Area 52% of actual area ( based on discussions)
CFS area Actual area under CFSs (1362950 sqm currently)
219
Empty Yard capacity * efficiency of space utilisation
Efficiency of space utilization 0.9
Dwell Time 13.0 (based on discussions)
Yard Capacity (TEUs at a time * 365)/dwell time
TEUs at a time Stack height * ground slots
Stack height 4
Ground Slots (Empty yard area * stack area (usable area) )/ (are/ground slot)
Area/ Ground Slot 45 (based on discussions) sqm
Stack Area (usable area) 80%
Empty Yard Areas 744621.5 sqm currently
220
6.1.2 Introduction to Integrated Capacity Assessment Mode
shown below
Specific projects were then identified to overcome these bottlenecks. The model also incorporated projects that are
already under implementation:
Bottleneck
Bottleneck faced
faced due
due to
to
capacity
capacity being
being less
less than
than
requirements.
requirements
requirements
221
Overview of Handling of Liquid Cargo at JNPT-

Currently four distinct categories of liquid cargo are handled at JNPT with crude expected to be handled in 2007. The
categories currently handled are
• POL products
• Liquid chemicals
• Edible Oil
• Molasses
Each of these categories consists of several products all of which fall under Class A/B/C liquids depending on their
flashpoint. Multiple grades of each product are also handled at JNPT.
The first link in the handing of liquid cargo is the discharge capacity of the ship. This capacity varies with the number of
pumps and product category carried by the ship. The cargo pumped by the ship is connected to the pipelines via
Marine Loading arms/ hoses depending on the category of cargo. Different cargo types (mineral and edible) are
handled at the same berths Currently there are 6 Marine Loading arms (3 on each berth) to handle POL products.
Hoses are used to create connections between ship and pipelines in case of chemicals and other liquids.
At JNPT there is a disparate network of pipelines of varying diameter owned by individual tank farms used to transfer
liquid cargo from the jetty to the tank farms. There are 8 tank operators with tankages of different size that handle
certain grades of product. Details on the pipelines and tankages are reproduced in annexure 1.4.
Of the vessel berthing hours some hours are not utilized for discharging operations. These hours have to be considered
in the capacity planning exercise. The hours lost are broadly due to the following reasons –
• Sampling time given post berthing for terminal operators to verify quality of sample on ship
• Pigging hours that are used to clear the pipeline for it to either carry a different product or a different grade of the
same product
• Time given post loading/unloading to vessels to complete departure formalities
A critical component of liquid handling is the utilization of pipeline capacity. At JNPT there exist certain pipeline
inefficiencies that impact the berth handling capacity. These are discussed in the next section.
222
Pipeline utilization Levels -

There exist certain inefficiencies in pipeline utilization in JNPT
that seem to be impacting throughput at the berth. The flow Exhibit 3.2.1 : Pipeline theoretical flow rates
rates achieved through the pipelines are impacted by the
Product category Achievable flow rate
following factors –
• Limited ship discharge rate especially in products of (in MT/hour)
lower parcel size such as chemicals, edible oil and POL products 925
molasses.
• Pigging hours introduced due to many products/ various Chemicals 425
grades of particular products being carried by ships Edible oil and 381
• Certain pipelines are unable to accept a greater vessel Molasses
discharge rate owing to inability of pipeline to handle
greater pressure or due to their limited diameter
Source: KPMG Analysis, Discussions with tank farm
• Variable flow rate achieved due to pumping rate at operators, Assumes equal utilization of pipelines
tankages
All of this implies that with a similar product mix and ships of
limited discharge, JNPT will face constraints arising out of the
pipelines. In light of the decision to service crude the pipeline Exhibit 3.2.2: Pipeline flow rates in 2004-05
inefficiencies might lead to a forced capacity constraint at the
Product category Achieved flow rate
berth.
Based on discussions with terminal operators we arrived at an (in MT/hour)
achievable flow rate through each of their pipelines. This was POL products 583
further used to arrive at a theoretical weighted flow rate that
could be achieved by product category in the absence of any Chemicals 258
constraint as shown in exhibit 3.2.1. This is compared with the
actual flow rates achieved for the year 2004-05 by product Edible oil and Molasses 289
category in exhibit 3.2.2.
On comparison of the pipeline flow rates we observe that the
actual flow rate obtained is lesser than the achievable flow rate Source: KPMG Analysis, Data from JNPT
indicating existence of inefficiencies in pipeline utilization.
223
Assumptions in liquid capacity assessment model Exhibit 3.2.3: Assumed Ship discharge
To quantitatively assess the capacity of each of the above modules rate
assumptions were made for the following
Product category Ship discharge rate
Ship discharge rate - Ships of varying sizes arrive at JNPT with
(in MT/hour)
different discharge rates. The ship discharge rate varies across
ships of similar DWT and product composition. In an attempt to POL products 1500
use the ship discharge rate in the capacity model we have
assumed average discharge rates for various product categories Chemicals 300
as shown in exhibit 3.2.3.
Parcel size – Parcel size is grown from the current parcel size at Edible oil 300
3% annually for each product category based on historical trend at
JNPT. Current overall parcel size is 10,738 metric tonnes. Molasses 300
Pipeline inefficiency factor – Pipeline inefficiency factor is arrived
Crude 5000
at using historical data. It follows from the existence of
inefficiencies in pipeline utilization as indicated previously.
Source: Secondary Research, published reports
Current level of pipeline inefficiency is calculated as 1.8 from
historical data. This means that theoretical pipeline hours are
multiplied by 1.8 to arrive at total hours pipeline used. Dwell time – Tank farm average dwell time
Sampling Hours are taken as an average of 3 hours per vessel. for cargo is assumed at 30 days based on
Vessel departure hours are taken as 3 hours per vessel. discussion with tank farms and port terminal
operator
Pigging Hours – Pigging hours are assumed for each category
of product based on discussion with JNPT/BPCL.. The hours
assumed are as follows –
• POL – 4 hours per vessel
• Edible oil – 6 hours per vessel (due to various grades of
product)
• Molasses – 3.5 hours per vessel
• Chemicals – 3.5 hours per vessel
224
Explanation of the capacity assessment model

The capacity assessment model aims to identify capacity bottlenecks in liquid cargo operations for each year. The
starting point of the model is the traffic forecasts arrived at in the earlier chapter. The parcel size for vessels for each
product category was arrived at using current forecasts and applying a growth rate as discussed earlier. This along with
traffic by product category was used to calculate ship calls by product category.
For each ship of a product category there are certain unutilized berthing hours spent in activities like sampling, pigging
etc. These were calculated across ships and adjusted from total berthing hours in a year to arrive at berth hours
available for discharge. A pipeline inefficiency factor was factored in to arrive at a realistic number of berth hours
available for discharge.
Theoretical ship pumping hours were calculated based on the average ship discharge rate for vessels of each product
category as well as traffic forecasted in that category.
Ship pumping hours were compared with total available berth hours to identify capacity shortfall (at 70% berth
occupancy) . This was used to arrive at capacity augmentation decisions.
Tank farm storage by product category was used along with an assumed dwell time of 30 days to arrive at tank farm
capacity by product ( Dwell times at JNPT vary between 15-45 days)
The capacity assessment model is shown in exhibit 3.2.4 with individual stages illustrated subsequently.
225
Exhibit 3.2.4 : Liquid Capacity Assessment model for berth capacity

4
1 Unutilized berthing
Hours (Pigging +
sampling)
Liquid forecasts 3
Source: KPMG
Analysis 5
Vessel calls by
2 product category Total Pumping
Hours
Source: KPMG Analysis Source: KPMG Analysis,
Parcel Size Ship pumping hours
Source: Data from
JNPT, KPMG Analysis
Capacity Constraint Point
6
If Total Pumping
Hours < Total
Need available berth
additional hours
capacity
(at 70% berth
occupancy)
226
Berth and pipeline analysis

shown below. For each ship of a product category there are certain unutilized berthing hours spent in activities like
sampling, pigging etc. These were calculated across ships and adjusted from total berthing hours in a year to arrive at
berth hours available for discharge. A pipeline inefficiency factor was factored in to arrive at a realistic number of berth
hours available for discharge. Theoretical ship pumping hours were calculated based on the average ship discharge
rate for vessels of each product category as well as traffic forecasted in that category. Total operational hours greater
than total available berth hours indicated bottlenecks. This was used to arrive at capacity augmentation decisions.

capacity
pipeline being lessbeing
capacity than
requirements.
less than requirements.
227
Tankage analysis
shown below. Tankage capacity for each product category was identified based on data from the port. An average
dwell time for each category based on discussions with tank farm operators was used to arrive at the annual volume
that can be handled for each category through tankages around JNPT. Annual tankage volume below product
forecasts for these categories indicate bottlenecks. This was used to arrive at tankages capacity augmentation
decisions.

tankage being
capacity capacity
lessbeing
than
less than requirements.
requirements.
228
6.1.3 Mechanism for project identification
As described in the previous section the ICAM was used

to identify the bottlenecks that are being faced by the ports Bottleneck
across various elements. Identified by ICAM
KPMG identified projects that can be undertaken to

remove the bottleneck and these were discussed with
senior management, finance department and the planning Identification of Projects that
department. can be undertaken to
remove bottleneck
The short listed projects were then entered into ICAM NO
which accordingly increased the capacity and identified
the next level of bottleneck that is being faced.
Discussions with senior
An analysis of physical constraints done earlier was used
management at port Has port
to assess if the port has reached any physical constraint
and if, no physical constraints were reached then the reached a
process of identification was repeated to identify the next physical
level of projects that need to be undertaken. Discussions with constraint
finance team on the on capacity
project that cant be
overcome
Discussions with
planning team on future
plans
Project selection and

entry into ICAM
Next level of
bottleneck Identified
by ICAM
229
6.1.3 Snapshot of project identification through ICAM
As seen below ICAM has identified bottlenecks that will be faced by the port in the year 2008-09 in cargo handling
capacity to over come this shortfall an internal brainstorming with subject matter experts and the KPMG team was
done. Post this discussions were undertaken with various departments and two projects were identified to increase
capacity. These are
1) Increase moves per hour (based on working hours only) of RMQCs to 24 (on main berth)
2) Extend current berth by 330 m to the north
**
**

230
The ICAM illustrates the status before and after the project is undertaken -
ICAM After the Project (* green boxes

ICAM Before the Project Additions show increase in capacity)
231
6.1.3 Snapshot of project identification through ICA
As shown in the earlier page the projects aid in increasing capacity of the port. The ICAM now presents the picture post
the projects being undertaken and highlights the next level of bottlenecks that would be faced. This is shown below
**
**
Bottleneck
Bottleneck faced
faced due
due to
to
capacity
capacity being
being less
less than
than
requirements.
requirements
requirements
Projects are further identified to overcome the bottlenecks in discussion with the port. For the above mentioned
bottleneck the fourth terminal is identified as a project post discussions with the senior management , finance and
planning department.

232
Similarly projects were identified for all areas covered under the ICAM namely roads, rail, sea side, cargo handling
(containers), cargo handling (liquids) and others.
The projects were analyzed and investment outlay for each of them was also identified and was used to build the
financial accounts for the port. These projects were clubbed together into public investments, port investments and
client related investments.
Apart from this subject matter experts and ports vision statement was used to qualitatively identify projects such as free
trade zones.
233
6.2 Identified projects
The projects identified based on the integrated capacity assessment model enabled the development of an integrated
master plan for the port by evaluating various elements of the ports processes together.
The projects identified across the various elements were combined to arrive the integrated master plan which covered
the development of:
z Terminals
z Related Infrastructure
z Hinterland Connectivity
z Related projects
The integrated development plan of the port is shown in the following maps. The maps capture the evolution of the port
till 2020-21.
234
RMQC moves
RMQC moves
increased to
increased to 24/hr
24/hr 330 M extension JNPT developments between
(2009-10)
(2009-10) (2008-09)
2006-07 and 2009-10
Two tugs and seven
Conversion of
pilots (2007-08)
railway tracks to fully Additional Link
operational railway Road (2009-10)
Three pilots and two EPZ (2009-10)
sidings (2006-07)
launches
(2008-09)
SH54 4-laning
Dredging Phase 1
(2007-08)
(2009-10)
GTI to be fully
operational (2006-
07)
Shallow berth moves

increased to 16
moves/hr (2008-09)
Evacuation
(EPZ) Road
(2009-10)
Common user
pipeline creation
(2007-08)
Empties yard 50
hectares (2008-09)
Dronagiri
Link road
(2009-10) Grade Seperators at
Karal and Gwaan
32 Hectares of CFS
Phata (2008-09) U:\Admin\975\SCI ADMIN 235
land (2007-08) Land already
4th Terminal Ph 1 &
BPCL Relocation JNPT developments between
2010-11 2010-11 and 2012-13
3 tugs and 5 pilots
(2010-11)
6 Laning of NH 4B
(2010-11)
2 pilot launches
(2011-12)
Additional Road Linking
Port to highway
3 pilots (2012-13)
(2010-11)
MCT Phase 1
(2011-12)
Construction of
emergency berth
(2011-12)
Road for 4th
Container
Terminal
(2010-11)
Rail ICD 4th Terminal
(2010-11) 40 Hectares of
Link to 4th Empties yard (2012-
container 13)
terminal
(2010-11) Sorting Yard
(2011-12)
56
56Hectares
HectaresCFS
CFS
U:\Admin\975\SCI ADMIN (2012-13)
(2012-13)
236
Land already
4th Terminal Ph 2
(2014-15) RMGC Moves increased JNPT developments between
to 20/hr (2013-14)
2013-14 and 2015-16
1 launch,1 tug and
1 pilot (2015-16)
2 tugs and 3 pilots Additional Railway track

(2013-14) (2014-15)
Dredging Phase 2
(2015-16)
Rail ICD for 4th Terminal Ph

2 (2014-15)
Gate Capacity
(2013-14)
Empties 28 hectares
(2015-16)
CFS 49 Hectares
(2015-16)
Land already
JNPT developments between
2016-17 and 2020-21
Connection to
Additional Link road
(2017-18)
Marine Berth
(2020-21)
Addition of 3
RMGCS (2016-17)
POL tankage construction

(2018-19)

Land already
6.2.1 Classification of identified projects
The capacity assessment model identified an integrated master plan for the port. The master plan includes various
projects that the port has to undertake to service the expected traffic potential. These projects can broadly be
classified into three major categories
z Client Related Investment Projects: This would include projects that would be funded through investments made
by private players. The mode of financing these projects would primarily be a BOT arrangement wherein the
private player would share revenue with JNPT.
z Planned public investment projects: This would include projects that would be financed by JNPT and/or by public
agencies. The mode of finance for these projects could be directly by public agencies. Alternatively an SPV could
be formed by the port and other agencies or through the port internal resources.
z Planned organizational improvement projects: This would include projects that would be financed by JNPT. The
financing for such projects would be done through internal resources of the port or through debts taken from
banks.
A listing of all projects identified within each of the above mentioned category is provided over the next few pages.
Significant projects have been covered in detail while others have a summary coverage.
Projects to be taken up beyond the 7 year action plan till 2014-15 have been highlighted in the tabulation.
239
6.2.1 Classification of identified projects– Planned client investments
Section
No.
2006-07 GTI to be made fully operational BOT Summary Coverage 8.1.1
BOT (infrastructure
Development of 32 Hectares of
2007-08 by port, development Summary Coverage 8.1.2
land for CFS operations
by pvt. Operator)
8.1.3
2008-09 330 m Extension of berth BOT Detailed Coverage
BOT (infrastructure 8.1.4

2008-09 by port, development Summary Coverage
land for empty yard operations
by pvt. Operator)
2009-10 EPZ setup on port land BOT Detailed Coverage 8.1.5
Terminal
Summary Coverage
Development of Rail ICD for the
terminal)
Summary Coverage
Additional road to be constructed
for 4th container terminal
terminal)
Summary Coverage
2010-11 BPCL Relocation to new terminal BOT (within 4th container 8.1.6
terminal)
Marine Chemical Terminal - 1
2011- 12 BOT Detailed coverage 8.1.7
new berth of 300 m
BOT (infrastructure
2012-13 by port, development Detailed Coverage 8.1.8
land for empty yard operations
by pvt. Operator)
240
6.2.1 Classification of identified projects– Planned client investments
Section
No.
Development of 56 Hectares of land for
CFS operations
pvt. Operator)
Development of 4th Container Terminal
– 2nd phase
Summary Coverage
Development of Rail ICD for the 4th
terminal phase two
terminal phase 2)
CFS operations
pvt. Operator)
2015-16 port, development by Detailed Coverage 8.1.12
empty yard operations
pvt. Operator)
Reduce average POL tankage dwell BOT
time to 25 days
Reduce pigging hours by 1 for each
2019-20 BOT (existing player) Summary Coverage 8.1.14
product
Marine Chemical Terminal - 1 new berth
of 300 m
Reduce average POL tankage dwell
time to 20 days
Reduce average chemical tankage dwell
time to 25 days
241
6.2.1 Classification of identified projects– Planned public investments
Mode of Level of
Year Project Section No.
Financing Detail
Conversion of one of the tracks to full operational Summary
railway siding. Coverage
Summary
2007-08 Hiring of two tugs Port Investment 9.1.2
Coverage
Port Investment/ Detailed
2007-08 Additional pipelines for select products 9.1.5
BOT financing coverage
Summary
2007-08 SH54 to be converted to a four lane road SPV 9.1.6
Coverage
Summary 9.1.1 and
2008-09 Hiring of 2 tugs and 2 pilots Port Investment
Coverage 9.1.2
Grade separators to improve the efficiency of the Summary

2008-09 SPV 9.1.7
approach road to the port Coverage
Increase shallow berth moves to 16 moves per Summary

hour Coverage
Development of an additional road linking the port Detailed
2009-10 Public Investment 9.1.9
to highways Coverage
Summary
2009-10 Additional Evacuation road (EPZ Road) Port Investment 9.1.10
Coverage
Summary
2009-10 Dronagiri Link road Port Investment Coverage 9.1.11
Dredging to enable fully loaded 6000 TEU ships

Summary
2009-10 and 7500 TEUs partially laden ships during tidal Port Investment 9.1.12
Coverage
window, channel deepened upto 12.5 m
242
Mode of Level of
Year Project Section No.
Financing Detail
Increase RMQC moves at JNPT to 24 Summary
moves per hour Coverage
Summary
2010-11 Hiring of 3 tugs and hiring of 2 pilots Port Investment 9.1.1 & 9.1.2
Coverage
Summary
2010-11 Six Laning of NH4B SPV 9.1.14
Coverage
Summary
Additional road linking port and
2010-11 Port Investment Coverage 9.1.15
highways
Summary
2010-11 4th container terminal link Port Investment Coverage 9.1.16
Reduce non discharging hours per Detailed

vessel from 6 hrs to 4 hrs coverage
Detailed
2011-12 Creation of emergency berth Port Investment 9.1.24
coverage
Summary
2011-12 Hiring of 2 pilot launches Port Investment 9.1.3
Coverage
Sorting Yard to Reduce Mixed trains

and development of processes and Detailed
systems between the port and the Coverage
sorting yard
Summary
2012-13 Hiring of two pilots Port Investment 9.1.2
Coverage
243
Mode of
Year Project Level of Detail Section No.
Financing
Increase in productivity of RMGCs Port

by increasing the moves per hour Investment
Port
2013-14 Hiring of two tugs and two pilots Summary coverage 9.1.1 & 9.1.2
Investment
New rail track to be laid outside the Public

2014-15 Detailed Coverage 9.1.20
port Investment
Dredging to enable fully loaded 6000

Port
2015-16 TEU ships at all times, channel Summary Coverage 9.1.21
Investment
deepened upto 14 m
Increase RMGC Capacity through Port

addition of RMGCs Investment
Road to be constructed to connect Port

the Aamra Marg link road to the port Investment
244
6.2.1 Classification of identified projects–Organizational improvements
Mode of Level of Section

Year Project
Financing Detail No.
Strengthening of the marketing Detailed
Department coverage
Strengthening of project Detailed
2009-10 Port investment 10.1.6
management capabilities coverage
Automation between gate and Detailed
terminal operators Coverage
Training for double moves Detailed
(twin lift) Coverage
Detailed
2011-12 Training for managerial staff Port Investment 10.1.3
Coverage
Automation between sorting Summary
yard and port operators Coverage
Development of Maintenance Summary
SLAs for the roads Coverage
245
Chapter 7
External connectivity
requirements
246
7.0 External connectivity requirements
As illustrated in the previous chapter, an integrated capacity assessment model was used to identify projects needed to
be undertaken by the port and other agencies. The quantitative nature of the ICAM allowed analysis of rail and road
connectivity in the form of immediate linkages to the port.
This included analysis of capacity on following rail and road corridors –
• Road networks linking to the port : Included analysis of capacity on SH54, Aamra Marg and NH4B as well as
alternatives needed for the same
• Rail network linking to the port : Rail line connecting port to Holding yard at Jasai and Panvel
•However as illustrated in the chapter on hinterland connectivity, key rail corridors and road networks outside these links
also face capacity pressures. Keeping this in mind, a section has been included to indicate external support
infrastructure requirements beyond the port that would need to be executed by other agencies to allow the port to fulfill
its potential. This section highlights proposed projects that would ease capacity pressures on both rail and road
linkages extending from the vicinity of the port to the hinterland. It follows from the introduction towards hinterland
connectivity provided in section 2.
247
As indicated in section 2 on hinterland Exhibit 7.1.1: Capacity utilization of Major sections of Delhi
connectivity, there exist pressures on key rail Mumbai Route
corridors. Going ahead with the growth in traffic
certain key measures need to be taken to meet rail
traffic at JNPT. These include - % Line capacity Projected
Length
z Implementing Automatic Block signalling on utilization %
in
the Panvel-Vasai Rd, Name of Section with utilizati
Kms
maintenance on
z Dahanu - Vadodara and Vadodara – 2006-07
Mathura Jn segments of the route.
z Undertaking doubling of the Mehsana – . (2003-04)
Palanpur – Ajmer – Jaipur and Rewari – TUGLAKABAD-PAWAL 29 151.7 192.7
Delhi sections. PALWAL-MATHURA 83.4 131.91 145.2
As can be seen in exhibit 7.1.1 there is also a MATHURA-BAYANA 75.4 84 104.1
need to enhance capacity on the Delhi Mumbai
route, as the current route is facing over 100% BAYANA-SAWAI MADHOPUR 140.83 123.2 157.5
capacity utilization levels. SAWAI MADHOPUR-GURLA 102.2 128.2 157.5
The shortage of capacity on these key rail GURLA-KOTA 5.56 159.6 190.7
corridors highlights the need for a dedicated KOTA-NAGADA 224.95 110.9 137.5
freight corridor (DFC) between JNPT and the
northern hinterland the foundation stone for the NAGADA-RATLAM 41.35 137.7 166.2
same having been laid recently. The DFC could RATLAM-GODHRA 185.21 137.1 165.7
connect JNPT to the primary ICDs of Tuglakabad,
Dadri and Ludhiana while passing through GODHRA-VADODARA (Z) 67.04 114 136.6
Vadodara and Ahmedabad. VADODARA (Z)-VADODARA (D) 2.11 92.2 115.6
The quick and successful execution of the DFC VADODARA (D)-BHARUCH 70.12 138.2 160.4
might be critical to the success of future container
terminals at JNPT. The DFC project has been BHARUCH-SURAT 58.94 138.4 162.4
taken up as a measure to alleviate the excess SURAT-UDHNA 4.01 139.6 156.8
capacity utilization on stretches of route to
UDHNA-VALSAD 64.55 137.5 153.4
Mumbai. The foundation stone for the DFC was
recently laid. VALSAD-DAHANU ROAD 74.4 136.9 154.8
DAHANU ROAD-VIRAR 63.8 115.3 129.5
248
Dedicated Freight Corridor – Impact on

JNPT
Given the sharp increase in utilization of the
tracks on the Delhi- Mumbai route, Indian
railways has set up an special purpose vehicle
to develop the western rail freight corridor. The
dedicated freight corridor will extend across
1440 km and attempt to connect the northern
and north-western hinterlands to the ports of the Tuglaqabad
Dadri
West coast such as JNPT, Mumbai, Mundra, Jaipur
Mathura
Kandla and Pipavav.
Palanpur
The DFC project is imperative for JNPT to Kandla Kota
expand its capacity. This is because capacity Mundra Nagda
Ahmedabad
constraints on existing rail routes could Vadodara
dramatically reduce the traffic to new terminals Pipavav
at JNPT from the northern hinterland. It is Mumbai
essential that the DFC project is completed by
targeted date of 2010-11 as this is the period JNPT
when 4th container terminal at JNPT is set to Port
begin operations.
City/location
The Dedicated Freight Corridor Corporation of enroute
India Ltd (DFCCIL) , the SPV of the Indian
railways is examining two routes for the western
Route 1
Route 2
corridor as seen in exhibit 7.1.2 –
• JNPT to Dadri via Vadodara,
Ahmedabad, Palanpur, Jaipur and Exhibit 7.1.2: Western Dedicated Freight Corridor –
Rewari (Blue line) Routes under consideration and Ports to be
• JNPT to Dadri via Vadodara, Nagda, connected
Kota, and Mathura (Orange line)
249
The route via Ahmedabad to JNPT has a distance of 1373 Exhibit 7.1.3 : Avg cost per TEU for using DFC along
kms while that via Mathura has a distance of 1440 kms. the Dadri-Ahmedabad-JNPT route *
Of the two routes under consideration, the route via
Ahmedabad will offer substantial advantages to Gujarat Port Destination Avg. Avg. cost
ports as compared to JNPT. This is because currently the distance per TEU
route used from Delhi to Gujarat ports is via Mathura and
Kota and branches away to Gujarat ports at Vadodara. JNPT/Mumbai Tughalakabad/ 1300 Rs 8457
Dadri
As per the Wala committee report on the Techno-
economic feasibility of the DFC, the route via Ahmedabad JNPT/Mumbai Sabarmati 500 Rs 2459
will have average cost per TEU as illustrated in exhibit (Ahmedabad)
7.1.3. This shows that the generalized cost of
transportation will be lower for Gujarat ports along the Pipavav/ Delhi region 800 Rs 5387
route via Ahmedabad as compared to the route via Mundra/
Kandla
Mathura. The DFC via Ahmedabad may result in JNPT
losing market share to Gujarat ports due to lower cost of Pipavav/ Sabarmati 200 Rs 1462
rail transportation from northern hinterland. Mundra/
(Ahmedabad)
Kandla
* - Costs based on apportioning of distance
250
There is need for road connectivity schemes to be taken up to improve accessibility of JNPT beyond the projects
identified in the form of SH 54 , NH 4B and Aamra Marg. Some of these are outlined in a note prepared by JNPT and
shown in exhibit 7.1.4 as follows -
Six laning of NH4 from Kalamboli to Mundra
The traffic to and fro from northern and central parts of India via NH-8 and NH-3 has to use part of NH-4 between
Kalamboli junction and Thane to reach JNPT. This is presently a 2 lane road which is heavily congested and results in
slow movements and accidents. Hence there is need to create additional lanes, Currently this is being widened to 4
lanes under BOT basis by MSRDC. However to cater to additional traffic it would need to be widened to 6 lanes. The
total length of this road is 20 km and the block cost of the project is about Rs 45 cr. The matter has been currently
referred to Public Works Department.
Linking of NH4 and NH8 bypassing Mumbra
Currently the port traffic moves through Mumbra and Thane city resulting in slow movement of traffic , accidents and
congestion on roads. In the recent monsoon of 2004, this road was heavily damaged. There is a need to have a
separate access, bypassing Thane and Mumbra city, connecting Nasik and Ahmedabad highway NH3 and NH8
respectively. Public works department has identified a scheme to connect the two highways through roads stretching
over 30 km and costing Rs 72 cr. The matter has been referred to PWD Maharashtra.
Strengthening of Khopta-Khopoli Link
At present, traffic to and from southern states of India has to take circuitous route via NH4B from Panvel to JNPT. This
traffic to JNPT by NH17 needs a direct link from the port. The existing shortest link from JNPT to NH17 can be used
provided Khopta bridge is strengthened and the Khopta-Khopoli link be widened. PWD has prepared the detail plan
and estimates for this project comes to about Rs 53 cr. PWD Maharashtra has currently requested for funding for this
project from the Commerce Ministry.
Extension of NH4B to south
At present there is no direct access to NH4B for the various container freight stations in Dronagiri node of CIDCO.
Truckers are compelled to use a tedious route, using the same approach road to the port. It is necessary to extend NH-
4B towards these CFS to reduce congestion on the main approach road of the port. CIDCO has currently requested for
funding for this project from the Ministry of Commerce.
251
Exhibit 7.1.4 :
252

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PORTS AND SHIPPING

JNPT Business Plan -

Section Page Section Page

1 General Port description 36 5.0 Traffic projections – introduction 147

1.1 General description 37 5.1 Container traffic projections 149

2.3 Intermodal facilities 70 7 External connectivity requirements 246

3.1 Competitive position 73

3.2 Captive and non-captive market 78

3.3 Unique selling proposition 80

4 Vision, Goals and Strategy 86

4.1 Development of JNPT Vision 87

4.2 Identification of goals 115

4.3 Strategy to achieve goals 130

z Crude & POL

z Cruise z Chemicals &

z Break Bulk z Coal

Enter/ Build the

Exhibit ii : Vision and Elements of Vision for JNPT

“To be recognized as India's premier container port providing integrated

Focus Cargo • Container

• Creation of value for customers through value added services

Other Cargos • Coastal and regional transhipment

It is envisaged that the port will increasingly play the role

Exhibit iii : Framework to identify long and short term goals

Trade and Traffic forecasts

Projected GDP Projected Bottom Up

60.00 59.728 60.81

30.00 27.77 32.85

Exhibit v : JNPTs Container traffic projections

As liquid cargo handled by ports consists of products

a. National level forecasts for the commodity 15

Vessel forecasts Exhibit vii : Future Vessel Calls at JNPT

Shallow berth moves

2 tugs and 3 pilots Additional Railway track

Rail ICD for 4th Terminal Ph

POL tankage construction

Land Available 670 Hectares

Classification of identified projects

BOT (infrastructure by 8.1.4

Exhibit xiv : Planned Public Investments

Year Project Mode of Financing Level of Detail Section No.

Conversion of one of the tracks to full

2007-08 Hiring of two tugs Port Investment Summary Coverage 9.1.2

2009-10 Dronagiri Link road Port Investment Summary Coverage 9.1.11

Dredging to enable fully loaded 6000

2011-12 Creation of emergency berth Port Investment Detailed coverage 9.1.24

Exhibit xiv : Planned Public Investments (contd.)

Increase RMGC Capacity Port

Exhibit xv : Organizational Improvement project

Mode of Level of Section

Plan of action to implement Strategy Investment plan

Efficiency Common user pipelines

Free trade zone

Additional link road via Belpada

Additional evacuation road

Dredging first phase

Dronagiri Link road

Fourth terminal phase 1

Road linking port and highway

Link to 4th container terminal

Six laning NH4b

Dependencies Timeline Projects already under implementation

Exhibit xvi : Overall implementation schedule for infrastructure creation projects