International Conference on “DMIC, SIRs, SEZs and Multi-modal logistics parks in the

State of Gujarat”
Gujarat’s Ports to become major drivers of Economy
16
16 April
April 2010
2010

B.
B. K.
K. Sinha,
Sinha, IAS
IAS
Additional
Additional Chief
Chief Secretary
Secretary
Ports
Ports &
& Transport
Transport Dept.,
Dept., Government
Government of
of Gujarat
Gujarat
Agenda of the Presentation
Gujarat Ports :

1 Infrastructure Snapshot

2 Greenfield Ports

3 Road & Rail Connectivity

4 Other Port Sector Initiatives

5 Strategic Advantage of Ports to SIRs/ SEZs

April 2010 Page 2 Gujarat’s Ports to become major drivers of economy

 Gujarat Port Sector Location of Gujarat Ports
► Strategically located with a coastline
of 1600 km
Kandla
Jakhau
► Nearest maritime outlet to Middle Mundra
Navlakhi

East, Africa and Europe Jamnagar

Okha Khambhat
Dholera
► Highest number of operational Positra Sikka
Bhavnagar
Dahej
Mithivirdi
ports and commercial cargo ports Porbandar
Magdalla
Mahuva
Sutrapada
► The first state in India to invite Pipavav
Jafrabad Hazira
Simar
Major Port Vansi Borsi
Private Sector Participation Private Sector Ports
Maroli
GMB* Ports
through competitive bidding
Ports Structure of Gujarat - 41 Minor + 1 Major Port
Ports Structure of Gujarat - 41 Minor + 1 Major Port
4South Gujarat Saurashtra Kutch Major Port
South Gujarat Saurashtra Kutch Major Port
Kandla
Kandla
14 ports 23 ports 4 ports
14 ports 23 ports 4 ports
1 port
1 port

April 2010 Page 3 Gujarat’s Ports to become major drivers of economy

Advantage Gujarat

► State ranks first in terms of cargo

throughput handling 206 MMT
cargo in 2009-10, achieved 35%
annual growth rate

April 2010 Page 4 Gujarat’s Ports to become major drivers of economy

Advantage Gujarat
► Nearest gateway to landlocked states
► Vast and fertile hinterland, constituting 40% of the total Indian trade
► Gulf of Cambay and Gulf of Kutch provide natural navigational safety and
logistical advantage
► Ease of port privatisation due to progressive and liberal policies
► Excellent rail-road connectivity and ideal for multi-modal transportation
► Large industrial base, thereby having high demand and potential for
freight growth.
► About 6800 ships and 700 sailing vessels visit the ports of Gujarat
every year

April 2010 Page 5 Gujarat’s Ports to become major drivers of economy

GMB Port Privatization: Incentives
Gujarat Port Policy, 1995 & BOOT Policy, 1997
► Concession in waterfront royalty payable during ‘Royalty Holiday Period’, Balance

royalty will be permitted as set off against approved capital cost

► Concessional rate of wharfage for captive Single Point Mooring (SPM)
► Port locations will be given on BOMT (Build, Operate, Maintain and Transfer)
basis
► GMB will charge wharfage/ waterfront charges, Developers free to charge any
other service charges with prior approval of GMB
► Priority to maritime related industries in the field of ship building, ship repairing,
dredgers and other flotilla units
► Land acquisition by GMB, Land will be allotted on lease for a period concurrent to
concession period

April 2010 Page 6 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Traffic
Traffic increased to 206 MMT, growing by CAGR of 17.4% in last 5 years
The total port capacity of Gujarat grew by 80%, from 135 MMT in 2001 to 244 MMT in
2009-10.

06-07 07-08 08-09 09-10

Major Ports 463.84 519.24 530.35 558.3
GMB Ports 132.44 147.60 153 206
Other Non – Major ports 52.56 53.55 54.78 52
Total National Cargo 648.84 720.39 738.13 816.5
Share of GMB ports from total
non-major ports (%) 71.6% 73.4% 73.6% 79.8%

► GMB Ports handled 80% of traffic in India’s minor ports in 2009-2010

► GMB Ports handled 25% of total national cargo in 2009-20010
Source: Indian Port Association, Gujarat Maritime Board

April 2010 Page 7 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Commodity-wise Traffic in 2009-10

High growth achieved by import of Iron Ore, Crude Petroleum oil & motor spirit

April 2010 Page 8 Gujarat’s Ports to become major drivers of economy

Vibrant Gujarat Global Investors’ Summit (VGGIS)

MoU Status – VGGIS – 2003,2005,2007,2009

Year Commission Under Preliminary Dropped Total
ed Implementati stage
on
Nos. 1 0 0 1 2
2003
Amt. (Rs. Cr) 1000 0 0 1200 2200
Nos. 9 3 0 23 35
2005
Amt. (Rs. Cr) 1930 1862 0 11793 15585
Nos. 5 9 0 8 22
2007
Amt. (Rs. Cr) 7380 3145 0 2993 13518
Nos. 4 21 25 0 50
2009
Amt. (Rs. Cr) 4860 37235 43625 0 85720
Nos. 18 35 26 30 109
Total
Amt. (Rs. Cr) 15170 42292 43625 15936 117023

► Investments have been planned for new Greenfield ports, such as, Simar, Mahuva and
Positra, along with the expansion of existing ports, such as, Mundra, Pipavav, Hazira,
Okha, Porbandar, etc.

April 2010 Page 9 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Investment Trends

Investment
(Rs. Crore)
Private Ports 13374
Captive Jetties 7943
Private Jetties 269
Ship building yard 527
Total 22113

An investment of Rs. 22,113 crores has been realised by GMB

from 2002 - 2010

April 2010 Page 10 Gujarat’s Ports to become major drivers of economy

GMB Port Privatization models
Gujarat Maritime Board has multiple port privatization models to promote private player
participation in Gujarat ports and to enhance its holistic development
1 Captive Jetties
1 Captive Jetties ► GMB has successfully
2 Private Ports
2 Private Ports
3 Private Jetties developed private ports like:
3 Private Jetties
4 Development in existing terminals Pipavav, Hazira, Mundra,
4 Development in existing terminals
5 Rail Linkages ( Pvt. Investment) Dahej etc.
5 Rail Linkages ( Pvt. Investment)
6 Shipbuilding/ repairing yard
6 Shipbuilding/ repairing yard
7 Coastal area development/ Ro-Ro ferry
7 Coastal area development/ Ro-Ro ferry

2010 2015
Captive Jetty/ SBM 23 32
Private Ports 4 11 ► Capacity to double to 508
Private Jetty 12 19 MMTPA by 2015
Private Terminal 1 12
Existing: 244 MMTPA, Total by 2015: 508 MMTPA

April 2010 Page 11 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Greenfield Ports
► Gujarat formulated the Port Policy in 1995 to Proposed Greenfield Ports
promote private sector investment in development
of Greenfield Port.
► Capital incentives port projects are being
Mundra
developed under BOOT policy (Build Own Operate
Modhawa
Transfer) and will be transferred back to GMB Khambhat
Sikka
Positra Dholera
after completion of 30 years BOOT period.
Mithivirdi Dahej
► Major Ports developed: Mundra, Pipavav, Dahej & Mahuva
Sutrapada Hazira
Pipavav
Hazira Simar Vansi Borsi
► Other Ports under development: Maroli
► Chhara: Shapoorji Paloonji
► Dahej: Sterling Biotech
► Sutrapada: L & T
► Bedi: Gammon Infrastructure
► Bhogat & Bhavnagar: Universal Success
Enterprises Ltd. (USEL)

April 2010 Page 12 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Port at Mundra
► Developed by Gujarat Adani Port Ltd. (now Mundra Port & SEZ Ltd)
► Commenced cargo operation from September 1998 Mundra

► 8 multi-purpose berths, container berths, bulk cargo berth

► Container handling capacity: 2.5 Mn. TEUs
► Phase II development: covers West Port, South Port, North Port and SBMs:
26 berths and 3 SBMs, which will augment capacity by about 160 MMTPA
► Coal terminal for 8640 MW Ultra Mega Power Plants – Rs. 4500 crore
► South port covers basin development for Container, LNG and Liquid
cargo – Rs. 12,000 crore
► North Port will have container, bulk and RoRo cargo handling
facilities – Rs. 5500 crore
► SBM and COT (Crude Oil Terminal) – Rs. 3700 crore Mundra

►Total Investment: >INR 30,000 crore

►Traffic: general 39.4 Mn tons, container 0.93 Mn. TEU

April 2010 Page 13 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Port at Pipavav
► Developed by Gujarat Pipavav Port Ltd. (GPPL) (now acquired by AP
Moller Mearsk) in joint sector, 26% equity stake of GMB
► Commenced cargo operation from 1996
► Solid bulk, container and liquid cargo terminal Pipavav

► Container handling capacity: 1.1 Mn. TEUs

► Broad gauge railway port connectivity in PPP mode (253 km),
operational from 2003
► Pipavav is the first in India to receive double-stacked container trains
► Expansion plan
Pipavav
► Development of 385 mt container berths
► Planned LNG terminal for a power plant Pipavav Shipyard spread
over an area of ~200
► Planned capacity of 9 MMTPA by 2010
hectares

►Total Investment: Rs.13000 crore

►Traffic: general 6.7 Mn. Tons, container 0.27 Mn. TEUs

April 2010 Page 14 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Port at Dahej
Petronet LNG: LNG Terminal
► 1st LNG terminal in India, operational from 2004
► Capacity of 5 MMTPA, with an investment of INR 28 bn.
Dahej
► Planned: Second LNG berth (Standby) with an investment of INR 6 bn.,
total capacity will be 12.5 MMTPA then
Adani Petronet (Dahej) Port: Solid Cargo Port Terminal (SCPT)
► Phase 1: Solid cargo berth of 3 MMTPA capacity at an investment of
INR 5.5 bn.
► Construction of SCPT is expected to be completed by June 2010.
Dahej
► Planned capacity of 12 MMTPA after Phase 2, with additional
investment of INR 6 bn.
Gujarat Chemical Port Terminal Co. (GCPTCL): Chemical Port Terminal
► Operational since 2001, with capacity of 1.8 MMTPA
► Total investment of INR 9 bn.

►Total Investment: Rs. 5400 crore | Traffic: 12.5 MMTPA

April 2010 Page 15 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Port at Hazira
► Developed by Hazira Port Pvt. Ltd. (HPPL), promoted by Shell Gas
► LNG terminal with capacity of 5 MMTPA
► commenced cargo operation from 2005
► Total investment of INR 37.8 bn. (Phase 1A & 1B) Hazira

► Expansion Plan
► Total capacity after Phase 1B; 16.5 MMTPA
► Phase-II (Container and general cargo) – Rs. 2400 crore
► Company has selected Mundra Port & SEZ Ltd for development
of Bulk/ General Cargo Port Terminal at Hazira through sub
Hazira
concession
► Initial terminal capacity of 1.24 million TEUs

►Total Investment: Rs. 6200 crore

April 2010 Page 16 Gujarat’s Ports to become major drivers of economy

Port Connectivity: Railway
Pipavav Railway Corporation Ltd. Bharuch Dahej Railway Co. Ltd.
► Completed in 2003 ► Expected to be completed by Dec.
► 270 km railway from Surendranagar to Pipavav 2010
► Total Project Cost: Rs. 370 crore contribution ► 68 km railway from Bharuch to Dahej
by: ► Total Project Cost: Rs. 285 crore,
► Gujarat Pipavav Port (GMB JV): 26.6% equity contribution (Rs. 85 crore) by:
► Ministry of Railways: 26.6% ► RVNL: 26.5%
► Financial Institutions: 46.9% (Debt) ► Dahej SEZ: 10.5%
Kutch Railway Company Ltd.
► GMB: 10.5%
► Completed in 2007
► Adani Petronet (Dahej) Port: 10.5%
► 301 km railway from Palanpur to Gandhidham
► GNFC: 10.5%
► Total Project Cost: Rs.500 crore,contribution
► Hindalco: 10.5%
by:
► Jindal Rail Infrastructure: 10.5%
► RVNL: 20%
► Govt. of Gujarat: 1.6%
► Kandla Port Trust: 10.4%
► Gujarat Adani port (MPSEZL): 8%
► Financial Institutions: 60% (Debt)
► GMB conducted a study by Rites to provide
railway connectivity to Sutrapada, Mahuva,
Chhara, Maroli & Modhwa port

April 2010 Page 17 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Marine Shipbuilding Park
Proposed Marine Shipbuilding Parks (MSP)
► Existing share of 47% in Indian shipbuilding order book
► Existing share of 47% in Indian shipbuilding order book
► Intention to grab 50% to 60% share i.e 3 million DWT
► Intention to grab 50% to 60% share i.e 3 million DWT
of National target in Shipbuilding/ repair market
of National target in Shipbuilding/ repair market Gujarat
► Cluster form of Shipyards or Marine Shipbuilding Parks
► Cluster form of Shipyards or Marine Shipbuilding Parks
(MSP) at multiple locations with private player
(MSP) at multiple locations with private player Ghogha Dahej
participation. The prominent Shipbuilding cluster being Jafrabad
participation. The prominent Shipbuilding cluster being
Mahua Pipavav
developed is ‘Dahej Shipbuilding cluster’.
developed is ‘Dahej Shipbuilding cluster’.

Incentives under Shipbuilding Policy: GMB will

Incentives under Shipbuilding Policy: GMB will
► Acquire Government land and allot to the company on lease basis for the license period
► Acquire Government land and allot to the company on lease basis for the license period
► Develop basic infrastructure & facilities
► Develop basic infrastructure & facilities
► Ensure key aspects like national security, defense, environment and economic development
► Ensure key aspects like national security, defense, environment and economic development
► Permit the Shipyard Company to construct outfitting jetty
► Permit the Shipyard Company to construct outfitting jetty
► Provide complete operational autonomy to the Shipyard company (within the framework of
► Provide complete operational autonomy to the Shipyard company (within the framework of
relevant legislations) in respect of the operation of the Shipyard
relevant legislations) in respect of the operation of the Shipyard
► Recommend notifying Marine Shipbuilding Park (MSP) as SEZ
► Recommend notifying Marine Shipbuilding Park (MSP) as SEZ

April 2010 Page 18 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Marine Shipbuilding Park
Logistics, Small Industries Housing, Commercial
Bharuch- Samni-Dahej B.G.
Rail line
Galenda

Proposed Logistics hub

1 Dahej Koliyad
Proposed Ship building Existing Shipyard
Cluster
2 Bhavnagar GNFC
Jolva
Adani
Vaddala
Power
Proposed Shipyard of
Jindal Shipyard

Proposed Shipyard of Bombay

Marine Eng. Works

Proposed Shipyard of
Dahej Old Port Dahej Shipyard Ltd.
GIDC Estate
Boundary

ABG
Sterling Port Shipyard

SEZ GMB land for

Area RO RO

Existing jetty
Waterfront
slide 12 12 April 2010 Reserved for Shipbuilding
Dahej
Port Terminal
Cluster Location of Yards at Dahej
► Dahej as a global maritime
Gulf of destination, with perspective on skills, expertise and know-how as an
Khambhat
► Dahej as a global maritime destination, with perspective on skills, expertise and know-how as an
ideal location for maritime research and development
ideal location for maritime research and development
► High tidal range (8.5 & 9 mtr) and no need for breakwater
► High tidal range (8.5 & 9 mtr) and no need for breakwater
► Development of ancillary industries & Dahej PCPIR
► Development of ancillary industries & Dahej PCPIR
April 2010 Page 19 Gujarat’s Ports to become major drivers of economy
Gujarat Ports: Ro-Ro Ferry (Passenger & Vehicles)
► With two gulfs dividing the State in three parts, Ro-Ro ferry service in Gujarat
► With two gulfs dividing the State in three parts,
Gujarat is an ideal location for Ro-Ro ferry
Gujarat is an ideal location for Ro-Ro ferry
service operation.
service operation.
► GMB has decided to develop the Ro-Ro
► GMB has decided to develop the Ro-Ro
ferry terminal at (Gogha and Dahej) the cost
ferry terminal at (Gogha and Dahej) the cost
of approximately Rs 171.00 crores (USD 32
of approximately Rs 171.00 crores (USD 32
million) in Phase-I and will extend upto
million) in Phase-I and will extend upto
Mumbai in Phase - II
Mumbai in Phase - II

Concept and Development Model of Ro-Ro Ferry

April 2010 Page 20 Gujarat’s Ports to become major drivers of economy

Ports connectivity to Industrial Clusters
Palanpur To Delhi

Mehsana
Apparel & Textile

Ahmedabad
Kandla
Mundra
Petrochemical Pharmaceutical
& Biotech

Ceramics
Bharuch Chemical &
Engineering Petrochemical
Dahej

Ceramic Surat
Pharmaceutical Hazira
Pipavav Apparel &
Engineering Sector
Textile
Biotech Sector
Apparel & Textile
To Mumbai
Chemical & petrochemical

April 2010 Page 21 Gujarat’s Ports to become major drivers of economy

Port Connectivity to Dedicated Freight Corridor
To Delhi
Palanpur
Existing Rail Line

DFC
Zone 1
Mehsana

Ahmedabad
Kandla
Mundra

Zone 2

Bharuch
Dahej

Zone 3 Surat
Hazira
Pipavav Zone 4
Well connected to Ports
through Rail and Road To
linkages Mumbai

April 2010 Page 22 Gujarat’s Ports to become major drivers of economy

New SIRs proposed in Gujarat
1. Dahej PCPIR
2. Aliya Bet Entertainment and Eco
Development Special Investment
Region 3

3. Santalpur Special Investment Region

4. Halol-Savli Special Investment Region
11 8
5. Sanand Industrial Area 5
6 4
6. Changodar Special Investment Region
12
7. Hazira Special Investment Region 13
8. Navlakhi Special Investment Region
9. Simar Special Investment Region
1
10
10. Pipavav Special Investment Region 2
9 7
11. Anjar Special Investment Region
12. Okha Special Investment Region
13. Dholera Special Investment Region

Out of these 13 SIRs, 9 SIRs are based on ports located along the coast

April 2010 Page 23 Gujarat’s Ports to become major drivers of economy

SEZs in Gujarat -
Out of 60 SEZs, 38 SEZs are
present under the influence
DMIC Influence Area
DLF Ltd. Gandhinagar
Gaurinandan Realty. Jindal Worldwide Ltd.
TATA Sez GIFT City. Gandhinagar
Shivganga Real Estate Aqualine Properties, Gandhinagar
CPL Infra. Ltd, Ahmedabad Ganesh Infrastructure Ltd.
Electronics SEZ Gandhinagar
Mexus Corporation, Ahmedabad
Ahmedabad Apparel Park
City Gold Realtors, Ahmedabad Adani Township , Ahmedabad
Myron Realtors, Ahmedabad
Pharma SEZ, Ahmedabad
N.G. Realty Ltd. SGV infrs. Pvt. Ltd.
Nipiam Infotech Pvt. Ltd. Calica Constn Pvt. Ltd.
Kandla Port SEZ Dishman Pharma SEZ Strength Real Estate Ltd.
Reliance Port SEZ Suzlon Infra. Vadodara

of DMIC corridor

Ceramic, SEZ
Jayant Oil & Dahej Port SEZ
Derivatives Jubilant Infra., Bharuch
Sterling SEZ., J.B. Chemicals &
Bharuch Pharma Ltd.
Eng. & Oil Suzlon Infra. Vadodara

Real Estate SEZ SUR SEZ

Infrastructure SEZ
Gujarat Hira Essar Hazira SEZ
Textile/ Apparel park Bourse, Surat
Gems & Jewellery
Pharmaceutical

Out of these SEZs, 29 SEZs are port-based, with total area of 26,338 Ha (~90%)
April 2010 Page 24 Gujarat’s Ports to become major drivers of economy
Thank You
Gujarat Ports: Investment Trends Amount in Rs. Crore

Investment in Private Ports Investment in Captive Jetties

Investment in Private Ports Investment in Captive Jetties
Company Port Investment Company Port Investment
IPCL Dahej 42.00
Dholera Port Ltd. Dholera 21.59
Guj. Sidhee Cement Prashnavada 0.76
Petronet LNG Dahej 3400.12
Metdist Pipavav 10.00
Petronet LNG - SCPT Dahej 533.00
DMCC Navlakhi 15.94
Mundra SEZ & Port Mundra 4910.00
DHIL Dahej 246.40
GPPL Pipavav 1645.00
Sanghi Jakhau 63.92
Shell Gas Hazira 2507.89
Ultra Tech Cement Pipavav 167.00
GCPTCL Dahej 905.75
Muldwarka/
TOTAL(1)   13923.35 Gujarat Ambuja Cement 315.68
Magdalla
Digvijay Cement Sikka 86.89
ESSAR Hazira 924.44
Reliance Sikka 5416.00
GSFC Sikka 13.90
L&T Hazira 37.00
Others 254.00
TOTAL(2) 7593.93

April 2010 Page 26 Gujarat’s Ports to become major drivers of economy

Gujarat Ports: Investment Trends
Amount in Rs. Crore

Investment in Private Jetties Company Port Investment

Investment in Private Jetties
Company Port Investment CWC Rozi, Bedi 5.00
Other 2.00
JM Baxi Rozi, Bedi 30.48
TOTAL (3) 269.41
Goodearth Maritime Jakhau 17.79
Shantilal Multiport Infra. Rozi, Bedi 13.15
Investment in Ship Building Yards
Saurashtra Cement Porbandar 29.24 Investment in Ship Building Yards
United shippers Navlakhi 15.74 Company Port Investment

Nayabunder, ABG Shipyard Dahej 477.00

Shakti Clearing Agency 8.00
Bedi Modest Infrastructure Ghogha 50.00
Ruchi Infrastructure Rozi, Bedi 14.70 TOTAL (4) 527.00
Ashapura Minechem Mundra 3.00
Energy Infrastructure Okha 60.20
Jaydeep Associates Navlakhi 3.53
VK Industries Okha 4.01
Binani Navlakhi 2.15
Welspun Dahej 8.00
IMS Petrogas Porbandar 47.00 An investment of Rs. 22,113
Sanghi Navlakhi 4.00 crores has been realised by
Shreeji Shippin Navlakhi 1.42 GMB from 2002 - 2010
April 2010 Page 27 Gujarat’s Ports to become major drivers of economy