Port Led DevelopmentGujarat
Port Led DevelopmentGujarat
ByByH. K Dash IASH. K Dash IAS
Chief Executive OfficerChief Executive OfficerGujarat Maritime BoardGujarat Maritime Board
World Bank IIM-A Dt.15/07/2006
GMB - VisionGMB - Vision
““To rewrite the maritime history of Gujarat by To rewrite the maritime history of Gujarat by developing ports and port infrastructure of developing ports and port infrastructure of International Standards so that it become a International Standards so that it become a model of growth and gateways of Indiamodel of growth and gateways of India’’s s ProsperityProsperity””
World Bank IIM-A Dt.15/07/2006
Vision – 2020 objectivesVision – 2020 objectives
•• To retain position as leading maritime state To retain position as leading maritime state in the countryin the country
•• To handle 40% of countryTo handle 40% of country’’s cargos cargo•• Capture at least 10% of the value addition Capture at least 10% of the value addition
to exports at the ports to exports at the ports •• Capture highest share of high value cargo; Capture highest share of high value cargo;
Liquid Cargo, LNG, POL Products & Liquid Cargo, LNG, POL Products & ContainersContainers
World Bank IIM-A Dt.15/07/2006
All India v/s Gujarat All India v/s Gujarat
ParticularsParticulars All IndiaAll India GMBGMB
Waterfront 7500 km
569
4/5
198
Cargo throughput MMTPA (2005-6)
1600 km
108
Hinterland 1/5
No of ports (including major & minor) 42
World Bank IIM-A Dt.15/07/2006
Traffic growth of GMB portsTraffic growth of GMB ports
3.18 4.81 7.0917.15
48.8
73.1882.55 84.12
89.3597.13
108.07
0
20
40
60
80
100
120
MM
TPA
1982-83 1984-85 1989-90 1994-95 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Year
World Bank IIM-A Dt.15/07/2006
Cargo compositionCargo compositionParticularsParticulars 19821982--8383 19941994--9595 19991999--0000 20052005--0606
Crude Oil 000
0.15Iron Ore 0.13 1.67 2.9 5.00Cement/Clinker 0.27 2.92 5.89 10.97Containers 0 0 1.21 3.93Other Bulk 2.63 9.19 10.94 17.4
TOTAL 3.183.18 17.1517.15 73.1873.18 108.07108.07
30.49POL & Chemicals
25.5101.22 25.00
LNG 019.87
0 5.00Coal 6.86 10.282.15
World Bank IIM-A Dt.15/07/2006
Current capacity & utilizationCurrent capacity & utilization
ParticularsParticulars 20012001--0202 20022002--0303 20032003--0404 20042004--0505
135.49 152.2396.14
63.15%
20052005--0606
Capacity79.63
58.77%
139.3381.61
58.71%
163.23Cargo handled
147.3387.29
59.25%108.07
% of utilization 66.20%
World Bank IIM-A Dt.15/07/2006
Development modelsDevelopment modelsPrivatePrivatePortsPorts
PrivatePrivateJettiesJetties
CaptiveCaptiveJettiesJetties
StateStatePublicPublicPortsPorts
JointJointSectorSectorPortsPorts
World Bank IIM-A Dt.15/07/2006
Key drivers of development Key drivers of development
World Bank IIM-A Dt.15/07/2006
Natural driversNatural drivers•• Gujarati and Business Gujarati and Business •• Longest coastlineLongest coastline•• Natural gulfs & deep watersNatural gulfs & deep waters•• Rich maritime historyRich maritime history•• Strategic locationStrategic location
–– Vast hinterlandVast hinterland–– International sea routeInternational sea route
•• Rich mineral resourcesRich mineral resources•• Emerging oil resources at Gujarat coastline Emerging oil resources at Gujarat coastline
World Bank IIM-A Dt.15/07/2006
Economic driversEconomic drivers•• Mega Industrial development at Gujarat coastMega Industrial development at Gujarat coast•• Cargo potential and future shortage of port Cargo potential and future shortage of port
capacitycapacity•• Requirement of specialized port facilitiesRequirement of specialized port facilities•• Increase in the ship size Increase in the ship size •• Change in cargo composition & containerizationChange in cargo composition & containerization•• Growth of industries and agricultural productsGrowth of industries and agricultural products•• Demand of competitive port sector Demand of competitive port sector •• Excellent Roads & Rails infrastructureExcellent Roads & Rails infrastructure
World Bank IIM-A Dt.15/07/2006
Other driversOther drivers•• Port PolicyPort Policy•• BOOT PolicyBOOT Policy•• GID ActGID Act•• Project frameworkProject framework•• Success stories of port developmentSuccess stories of port development•• Political willPolitical will
World Bank IIM-A Dt.15/07/2006
Port and BOOT policiesPort and BOOT policies•• Port Policy Port Policy -- 19951995
–– Integrated port development vision with PPPIntegrated port development vision with PPP–– Synchronization of small and large investors in port Synchronization of small and large investors in port
sectorsector–– Creation of market driven port sectorCreation of market driven port sector–– Maritime institute in GujaratMaritime institute in Gujarat
•• BOOT policy BOOT policy -- 19971997–– Maximum role of private sector in developmentMaximum role of private sector in development–– Maximum operational flexibility with tariff freedom Maximum operational flexibility with tariff freedom –– Maximum ConcessionMaximum Concession–– Lowest waterfront royalty Lowest waterfront royalty -- Single levySingle levy–– No business development restrictionNo business development restriction–– Adequate compensation on project transferAdequate compensation on project transfer
World Bank IIM-A Dt.15/07/2006
PPP project frameworkPPP project framework•• Single window framework for infrastructure Single window framework for infrastructure
project project -- GID ActGID Act•• Global competitive biddingGlobal competitive bidding•• Transparent selection procedure of Transparent selection procedure of
developer developer •• Scope of State participation for initial stage Scope of State participation for initial stage
development or strategic partnerdevelopment or strategic partner•• Bankable project document Bankable project document –– Model Model
Concession AgreementConcession Agreement•• Scope for sub concession for development Scope for sub concession for development
of specialized port facilitiesof specialized port facilities•• Scope for development of add on projectsScope for development of add on projects
World Bank IIM-A Dt.15/07/2006
Port led developmentPort led development
World Bank IIM-A Dt.15/07/2006
Port led direct developmentPort led direct development
PowerPowerProjectsProjects
RefineriesRefineries
CementCementPlantsPlants
CoreCoreIndustriesIndustries
POLPOLChemicalChemical
ShipShipBuildingBuilding
FisheriesFisheries
CapitalCapitalGoodsGoods
World Bank IIM-A Dt.15/07/2006
Port led direct developmentPort led direct development
ProjectsProjects Major ProjectsMajor Projects
RefineriesRefineries Reliance Reliance –– IPCLIPCL
Core IndustriesCore Industries Essar Steel, Birla CopperEssar Steel, Birla Copper
PowerPower GEB, Torrent, GIPCGEB, Torrent, GIPC
POL & ChemicalPOL & Chemical Guj Guj AlkaliesAlkalies, Tata Chemical, Tata Chemical
Cement Cement Guj. Guj. AmbujaAmbuja, , UltratechUltratech, , SanghiSanghi, , SiddhiSiddhi
Capital GoodsCapital Goods L&T, L&T, WelspunWelspun
Ship BuildingShip Building Dahej, Mundra, PipavavDahej, Mundra, Pipavav
Fisheries Fisheries Jakhau, DholaiJakhau, Dholai
World Bank IIM-A Dt.15/07/2006
Port led indirect developmentPort led indirect development
RoadsRoadsRailsRails
CFSCFS
SEZsSEZs
PipePipeLinesLines
NewNewShippingShipping
lineslines
LogisticLogisticChainsChains
VTMSVTMS
World Bank IIM-A Dt.15/07/2006
Port led indirect developmentPort led indirect development
ProjectsProjects Major ProjectsMajor Projects
RoadsRoadsLinkages with State and National Linkages with State and National Highways mainly Mundra, Pipavav, Dahej, Highways mainly Mundra, Pipavav, Dahej, Bedi Bedi
RailsRails New Port Linkages or ModernizationNew Port Linkages or ModernizationMundra, Pipavav, Veraval, PorbandarMundra, Pipavav, Veraval, Porbandar
Pipeline NetworkPipeline Network Gas Pipeline Network of GSPC Gas Pipeline Network of GSPC
SEZsSEZs Mundra, Jamnagar, DahejMundra, Jamnagar, Dahej
New Shipping LinesNew Shipping Lines P&O, AP P&O, AP MollerMoller, , MaerskMaersk
CFSCFS Mundra, PipavavMundra, Pipavav
World Bank IIM-A Dt.15/07/2006
Port led other developmentPort led other development
WarehousesWarehouses
AreaAreaDevelopment Development
TourismTourism
AncillaryAncillaryIndustriesIndustries
Revenue Revenue GenerationGeneration
EmploymentEmployment
GreenGreenDevelopmentDevelopment
ColdColdChainChain
World Bank IIM-A Dt.15/07/2006
Port led other developmentPort led other development
•• Regional Social and Economic Development Regional Social and Economic Development –– Mundra, Pipavav, Dahej, Hazira Mundra, Pipavav, Dahej, Hazira
•• Highest employment generation Highest employment generation •• Efficient and maximum utilization state resources Efficient and maximum utilization state resources
through private sector participationthrough private sector participation•• New revenue resources for state New revenue resources for state •• Development of ancillary industries and secondary Development of ancillary industries and secondary
service providersservice providers•• Highest revenue from Gujarat Ports to Central Highest revenue from Gujarat Ports to Central
Government Government –– Custom, Excise and Service TaxCustom, Excise and Service Tax
World Bank IIM-A Dt.15/07/2006
Way aheadWay ahead
World Bank IIM-A Dt.15/07/2006
Capacity creation required to achieve VisionCapacity creation required to achieve Vision
•• GMB Ports require 400 million tonnes throughput GMB Ports require 400 million tonnes throughput capacity by 2020capacity by 2020
•• At least 50% of the capacity required for handling At least 50% of the capacity required for handling optimal vessel size categoryoptimal vessel size category
•• Ship turnaround of International Standards Ship turnaround of International Standards –– Turnaround Container Vessel in 12 hours & NonTurnaround Container Vessel in 12 hours & Non--Container Container
Vessel in 24 hoursVessel in 24 hours–– Modern VTMS & Integrated Cargo Management SystemsModern VTMS & Integrated Cargo Management Systems
•• Support value addition activities at Port & SEZSupport value addition activities at Port & SEZ––Container Freight Station, Grain Silos, Consolidation Container Freight Station, Grain Silos, Consolidation & Assembly, Mineral based Export& Assembly, Mineral based Export
World Bank IIM-A Dt.15/07/2006
Cargo forecastCargo forecastParticularsParticulars 20052005--0606 20102010--1111 20152015--1616
Crude Oil 30.4925.005.00
10.28Iron Ore 5.00 12.00 13.50Cement/Clinker 10.97 15.00 20.00Containers 3.93 30.00 40.00Other Bulk 17.4 19.82 24.93
TOTAL 108.07108.07 229.92229.92 323.93323.93
POL & Chemicals130.0090.00
32.60LNG 14.00
50.5026.00
Coal 19.0016.50
MMTPAMMTPA
World Bank IIM-A Dt.15/07/2006
Capacity - Demand Supply gap analysisCapacity - Demand Supply gap analysis
16
90
180
266
340
260
16
140
217 256
0
50
100
150
200
250
300
350
400
1995 2004 2008E 2013E 2018E
Traf
fic M
MTP
A
World Bank IIM-A Dt.15/07/2006
Capacity augmentationCapacity augmentation
YearYear CapacityCapacityaugmentationaugmentation Major ProjectsMajor Projects
20062006--0707 10108855335522202033
20102010--1111 3355
Guj Guj SiddhiSiddhi Bulk TerminalBulk TerminalHazira Shell Bulk TerminalHazira Shell Bulk Terminal
20112011--1212 1010 Green Field Port Green Field Port -- MaroliMaroli
20072007--0808
EssarEssar Bulk TerminalBulk TerminalMundra Bulk & Container TerminalMundra Bulk & Container TerminalPetronetPetronet LNG TerminalLNG TerminalPipavavPipavav Container TerminalContainer TerminalDahej Bulk TerminalDahej Bulk TerminalGMB Private JettiesGMB Private Jetties20082008--0909
20092009--1010 Reliance Sikka SPMsReliance Sikka SPMsGuj Guj AmbujaAmbuja Bulk TerminalBulk Terminal
MMTPAMMTPA
Source : CRISIL Report Vision 2020Source : CRISIL Report Vision 2020
World Bank IIM-A Dt.15/07/2006
Thank you
www.gmbports.org
Thank you
www.gmbports.org