Contents

Introduction
Market & opertunity the growth of the economies of the
indian sub coninents, commercial stratergies of the main
shipping lines

Coal Imports Countries

Rank Country
1 China
2 Japan
3 Korea, Republic Of
4 India
Taiwan, Province Of
5
China
6 Germany
7 United Kingdom
8 Russian Federation
9 Turkey
10 Italy
11 Spain
12 Malaysia
13 Brazil
14 Thailand
15 France

Imports (Thousand Short Tons)

318,465.47
203,469.05
135,702.25
97,181.98
71,500.82
53,405.88
49,612.83
34,768.00
31,775.23
26,614.21
24,892.39
24,251.95
19,926.48
18,625.76
18,588.28

16 Israel
17 Ukraine
18 Hong Kong
19 Philippines
20 Netherlands
21 Canada
22 Chile
23 Poland
24 United States
25 Mexico
26 Portugal
27 Belgium
28 Austria
29 Slovakia
30 Morocco
31 Finland
32 Denmark
33 Pakistan
34 United Arab Emirates
35 Czech Republic
36 Sweden
37 Bulgaria
38 Egypt
39 South Africa
40 Romania
41 Ireland
42 Hungary
43 Puerto Rico
44 Argentina
45 Viet Nam
46 Croatia
Iran, Islamic Republic
47
Of
48 Serbia
Korea, Democratic
49
People's Republic Of
50 Norway
Bosnia and
51
Herzegovina
52 Kyrgyzstan
53 Bangladesh
54 Sri Lanka

15,983.51
15,167.80
13,614.36
13,567.25
12,531.08
11,196.18
11,176.33
10,890.84
10,294.00
8,632.20
5,706.67
5,686.82
5,410.14
5,317.55
5,045.28
4,711.28
4,327.67
3,605.66
3,031.36
2,901.28
2,615.78
2,560.67
2,482.41
2,452.64
2,451.54
2,451.54
2,016.13
1,653.47
1,627.01
1,584.02
1,473.79
1,446.23
1,433.00
1,420.88
1,359.15
1,294.11
1,167.35
1,102.31
1,060.42

55 Kazakhstan
56 Slovenia
57 Guatemala
58 Mauritius
59 Peru
60 Dominican Republic
61 Nepal
62 Kenya
63 Algeria
64 Senegal
65 Latvia
66 Lithuania
67 Lebanon
68 New Caledonia
Congo, The
69 Democratic Republic
Of The
70 Greece
71 Albania
72 Switzerland
Macedonia, The
73 Former Yugoslav
Republic Of
74 Belarus
75 Moldova, Republic Of
76 Iceland
77 Swaziland
78 Honduras
79 Jamaica
80 Uzbekistan
81 Costa Rica
82 Luxembourg
83 Estonia
84 Panama
85 Nicaragua
86 Zimbabwe
87 Cambodia
88 Indonesia
89 Australia
90 Cuba
91 Venezuela
92 Madagascar

1,047.20
736.34
734.14
728.63
698.87
641.20
529.11
529.11
482.81
444.23
435.41
373.68
345.02
330.69
288.81
264.55
257.94
237.00
229.28
223.77
170.86
162.04
138.89
137.79
135.58
110.23
100.29
91.49
90.39
88.18
75.48
62.83
62.83
46.30
40.79
26.89
17.64
16.53

93 Cyprus
94 Tajikistan
95 Namibia
96 Syrian Arab Republic
97 Georgia
98 Botswana
99 Uruguay
100 Paraguay
101 New Zealand

15.43
14.33
13.23
9.92
8.82
3.31
2.69
1.10
1.10

Source: United States Energy Information Administration

http://www.indexmundi.com/energy.aspx?
product=coal&graph=imports&display=rank
Main Coal Exporting Countries
Exports of Coal by Country and year (million short tons)[1][2][3]
Country

2003

2004

2005

2006

2007

2008

2009

2010

Share

Australia

238.1

247.6

255.0

255.0

268.5

278.0

288.5

328.1

26.5%

Indonesia

107.8

131.4

142.0

192.2

221.9

228.2

261.4

316.2*

24.0%

Russia

41.0

55.7

98.6

103.4

112.2

115.4

130.9

122.1

12.0%

Colombia

50.4

56.4

59.2

68.3

74.5

74.7

75.7

76.4

6.9%

South Africa

78.7

74.9

78.8

75.8

72.6

68.2

73.8

76.7

6.8%

USA

43.0

48.0

51.7

51.2

60.6

83.5

60.4

83.2

5.5%

China

103.4

95.5

93.1

85.6

75.4

68.8

38.4

22.7

3.5%

Canada

27.7

28.8

31.2

31.2

33.4

36.5

31.9

36.9

2.9%

Vietnam

6.9

11.7

19.8

23.5

35.1

21.3

28.2

24.7

2.6%

Kazakhstan

30.3

27.4

28.3

30.5

32.8

47.6

25.7

36.3

2.4%

Poland

28.0

27.5

26.5

25.4

20.1

16.1

14.6

18.1

1.3%

Total (global)

713.9

764.0

936.0

1,000.6 1,073.4 1,087.3 1,090.8 1,212.8

Note: 1 metric ton (tonne) = 1.10231 short tons

http://www.sourcewatch.org/index.php/Coal_exports

100%

http://www.ieefa.org/wp-content/uploads/2014/07/SNL.png

http://news.mongabay.com/2013/11/mining-the-heart-of-borneo-coal-production-inindonesia/

Coal is the world's most-used fossil fuel. It's relatively abundant, with deposits
found just about everywhere in the world, except the Middle East.
But proven, recoverable reserves and coal production are fairly concentrated.
Seventy-five percent of the world's annual production comes from just the top
five coal-producing nations.
A decade ago, China produced about the same amount of coal as the United
States, or about 1.25 billion short tons per year.
As you can see from the graph below, Chinese coal production more than
tripled in the last decade, while U.S. coal production remained relatively flat.

China mined nearly half of the coal produced in the world in 2010. Its
production was three times that of the United States, and nearly equaled that
of the next 10 highest-producing nations combined.
Over the last decade, China's coal production increased 188 percent. While the
top 10 coal producers remained relatively the same since 2000, there were
some significant moves within the group.
Indonesia's coal production over the last decade increased a whopping 368
percent. That moved it from tenth to fifth globally, bumping Russia to sixth
place. Check out the pie chart below to see who the world's largest coal
producers are.

http://www.investmentu.com/article/detail/24392/worlds-fastest-growing-coalproducer#.Vl5rj9IrLcs

India Coal market

Although India is one of the worlds largest coal producing countries, it cannot keep up with its own
demand for coal. Indian coal producers are under steadily-increasing pressure to import more coal per
year, a pressure being increased by the threat of government fines. For years its primary sources of
imported coal have been Indonesia, Australia and South Africa. The last two years have seen Indian coal
buyers working with U.S. producers in an effort to tie up about 67 million tons.
U.S. coal producers wishing to learn about shipping coal to India may want to know where their coal might
be unloaded. Its a fair question, since that country has a coastline of about 4,700 miles, and lists about
200 terminals. Most of them are located in relatively shallow waters, and cannot accommodate Panamax
or Capesize coal vessels. Ports of India, the government-controlled organization that oversees most of the
ports, identifies 12 ports as major ports, but they are not all suitable for coal importing. In recent years, a
few semi-private terminals have been built that are focused on loading/unloading Panamax or Capesize
vessels.
Leading Indian steel producer, ArcelorMittal, acquired Central Appalachian region mining company Mid
Vol Coal Groups metallurgical coal assets in June 2008. In July, the company agreed to acquire the
Concept Group mine and reserves adjacent to the Mid Vol Coal Group operations it had just purchased.
Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL) are organizations under the
Ministry of Steel. The procurement of imported coking coal is a commercial decision of the companies
and procurement is done through-long term agreements and global tenders. Quantities under long-term
agreements are settled annually by the Empowered Joint Committee (EJC), comprising representatives of
both SAIL and RINL. EJC, while negotiating quantities and prices with long term suppliers, takes the FOB
prices settled by Japanese Steel Mills and others as reported in the international coal journals as the
benchmark. The annual requirement is tied up at the beginning of the year and the same is confirmed and
received quarter-wise throughout the year. As compared to 2009-10, the prices of imported coking coal in
2010-11 increased by 75%, for steel companies all over the world. Depending on the quantity of imported
coal and other strategic raw materials, profit margin of these steel companies was adversely affected by
this rise in the coking coal prices.

Locating the Major Coal Terminals

The country of India may be visualized as a large triangle set on its point. The east coast runs
northeasterly from Kanyakumari to Kolkata (formerly Calcutta) in Bengal state. The west coast runs from
the point (Kanyakumari) to Gujarat state in northwestern India. Historically, the location of terminals has
been influenced by two basic factors: the location of exportable natural resources (coal and iron ore), and
by availability of hinterlands transportation. Coking coals are primarily imported through Vizag, Paradip,
Kolkota, Krishnapatnam, New Mangalore and Mormugao. While there is a vast railroad network within
India, it is insufficient to meet the needs of transporting coal from the mines to the plants and utilities that

need it. Historically, little consideration has been given to vessel draft, but that is rapidly changing as the
need for minimizing coal import costs becomes paramount. While the broad gauge rail distance is much
less than the sea distance, a steel producer in Goa state believes the rail complications are so great that
his company ships iron ore by sea to the steel mills in northeastern India. The coal terminals that are deep
enough to accommodate Panamax or larger vessels are:

East Coast Terminals

Ennore Port was originally conceived as a satellite port to the Chennai Port, primarily to handle thermal
coal to meet the requirement of Tamil Nadu Electricity Board (TNEB). The primary objectives were to
move the so-called dirty cargoes out of the city limits of Chennai (Madras), and to receive Indianproduced steam coal from coastal vessels and rail departing northeastern ports Haldia, Paradip and
Vizag. However, the Indian mines cannot keep up with TANGEDCO requirements, so it is necessary to
import steam coal at Ennore Tamil Nadu Generation and Distribution Corp. (TANGEDCO) consumes
approximately 16 million tons per year in its existing power plants, of which about 13.5 million tons is
supplied by Indian mines and 2.5 million tons is imported, primarily from Indonesia. The port has two coal
berths capable of handling Panamax vessels in 13.5 m of water. Berth No. 1 can handle both geared and
gearless vessels and has an annual capacity of 8 million tons. Berth No. 2 can handle only geared
vessels, and has a capacity of 4 million tons.
Vizag is a major port city on the southeast coast of India. With a population of 1.4 million, it is the second
largest city in the State of Andhra Pradesh and the third largest city on the east coast of India after
Kolkata and Chennai. Visakhapatnam is home to several state-owned heavy industries, a major steel
plant, and has one of Indias largest sea ports and its oldest shipyard. It has the only natural harbor on the
east coast of India. Imported coal has steadily grown over the years from a total of 5.7 million metric tons
in 2001-2 to an estimated 11.1 million metric tons in 2011-12. In 2001-2, the terminal could take coal
imports in Handymax vessels only, but has since deepened its approaches and coal berths to 21 m, and
can now accommodate Capesize vessels of the 200,000 DWT class. Roughly two-thirds of the coal
unloaded at Vizag is metallurgical coal headed for the steel plants of SAIL at Bhilial and RINL at Vizag.
The Port of Paradips two coal berths are a total of 520 m long with alongside depth of 15 m. Handling
thermal coal, the berths can accommodate vessels to 260 m long and up to 60,000-75,000 DWT. The two
coal berths have capacity to handle 20 million tons of cargo per year. Paradip received the most coal
shipments in July 2011, totaling 1.52 million tons.
Dhamra Port lies north of Paradip, and is one of Eastern Indias deepest ports. Commissioned in
December 2011, the port has a draft of 18 m and can accommodate super Capesize vessels up to
180,000 DWT. It is a 50:50 joint venture project of Tata Steel and Larson & Toubro. It is designed to export
iron ore and to import coking coal and limestone.

With a vessel draft of 18.5 m, Krishnapatnam is one of the deepest ports of India. In November 2011, it
handled a shipload cargo of 166,060 metric tons of South African coal. Coal is by far the greatest import
cargo, while iron ore is the greatest export cargo. However, the ban on iron ore mining at the Obulapuram
mine has cut exports significantly, resulting in a 40% loss in revenue.
The coal berth at Gangavaram has a depth of 19.5 m. It is equipped with two shiploaders, each having a
capacity 2,400 tph. The first Capesize vessel to call at any Indian port carrying imported coking coal for
RINL was the MV Ocean Dragon, a vessel of 151,049 DWT capacity.

West Coast Terminals

About a third of the way up the west coast is New Mangalore, followed by Mormugao on the Goa coast,
and the newest in terms of modern development, Mundra.
The New Mangalore Port is situated on the West Coast of India in the state of Karnataka almost midway
between the Ports of Mormugao and Kochi. The port is 170 nautical miles south of Mormugao Port and
191 nautical miles north of Kochi Port. Coal imports typically average less than 300,000 metric tons per
year, chiefly for the account of Mangalore Chemicals and Fertilizers Ltd. While this level is expected to
stay constant, total coal imports are projected to reach 6.2 million metric tons by 2013, based on the
construction of a new 1,000 mw power plant.
Mormugao is the largest iron ore exporting port of India, accounting for 40% of the total volume of iron ore
exported from the country. Iron ore is mined by various private companies like Sesa Goa, Fomento,
Chowgules, Salgaocar and Dempo. The port also imports about 2 million tons of coking coal for the steel
plants at Bhadravan (SAIL) and Hospet (Jindal). The minimum depth of the entrance channel is 13.1 m,
and the minimum width is 250 m.
The new coal terminal, which is 8 km from Mundra, has two conveyor belts to feed the new mega-power
projects being set up by Adani Power and Tata Power. The Adani power project is projected to produce
4,600 mw, while the Tata Power project will be only slightly less at 4,000 mw. Two of the Adani units are
already operational and producing 1,980 mw. The three-berth terminal with 22 m draft already has a
capacity of 50 million tons. It is expected that this will become Indias largest port in two-three years.

http://www.coalage.com/departments/transportation-tips/1911-the-coal-terminalsof-india.html#.Vl5twtIrLcs
There are many terminals that can unload coal in India; our interest is focused on terminals that service
the major existing coal-fired power stations, those that generate 1,000 megawatts (MW) or greater. There
are 17 such thermal stations on the West Coast (Arabian Sea), and another 16 on the East Coast (Bay of
Bengal) (See Table 1). West Coast power stations receive coal through five different major terminals, and
East Coast stations receive coal from nine different major terminals.

The West Coast terminals can all

handle Panamax vessels, and one of them can also handle a Capesize vessel. The East Coast terminals
can accommodate Panamax vessels, and two of them can also handle Capesize. Capesize vessels
usually have the cheapest rates per ton, which is very important for U.S. shippers. At many terminals,
there is a complication that charterers should be aware of because it has the potential to extend berth
time and cause demurrage: inefficient off-load equipment and end-user connectivity.
In its 4,671-mile coastline, India is home to 12 major ports as well as 200 non-major ports. The 200 nonmajor ports are in the following states: Gujarat (42); Maharashtra (48); Tamil Nadu (15); Karnataka (10);
Kerala (17); Andhra Pradesh (12); Odisha (13); Goa (5); West Bengal (1); Daman and Diu (2);
Lakshadweep (10); Pondicherry (2); and Andaman and Nicobar (23). Many of these are either non-coal
ports or too small to accommodate the minimum-sized vessel that can compete carrying U.S. coal, the
Panamax vessel. We only regard a coal terminal as major if it can receive and unload a Panamax vessel
or larger.
Right now, there are only three Indian coal ports that are capesize-capable: Mundra (West Coast),
Gangavarum (East Coast) and Krishnapatnam (East Coast). Looking into the future a few years, it is also

possible to draw a bead on the next generation of coastal power plants, those that are based on supercritical technology, the Ultra Mega Power Projects (UMPP). Presumably, these will be served by existing
or new terminals that can accommodate the larger vessels. Table 3 shows those terminals that can
accommodate both Capesize and
Panamax vessels, and lists some of the coal consumers importing at those terminals.
Indian terminal operators use the term connectivity to refer to the road or railway delivery system to the
power station or other coal user, as well as the conveyor systems or intensive labor systems for moving
coal from the dockside to the stockpile and then to the final delivery system. For example, in June 2014,
half of the 27 stranded ships in the Paradip port were each carrying 90,000 metric tons (mt) of coal and
taking up to six days to unload with inefficient clamshell cranes. In India, it is still commonplace to see
men working the coal piles by hand or loading coal by hand and shovel into trucks or coal cars, the
natural result of having a large population.
Groups of coal cars in India are called rakes. Bulk freight transport rates also vary based on the number
of times a rake may be loaded or unloaded. A so-called two-point rake is one that can be loaded or
unloaded at two points, usually a half-rake at a time, at approved combinations of two loading or
unloading locations. Some freight rakes are used continuously in dedicated operations over a closed-loop
journey. These are known as closed-circuit rakes, and typically consist of 66-ton BOXN wagons. The
BOXN is a high-sided open rail car with pneumatic brakes and high-tensile couplers. Perhaps the most
common wagon, there are around 64,000 or more of them in use. These rakes are often also subjected to
a more rigorous maintenance regime, known as the super-intensive examination, and have brake power
certificates issued for 6,000 km, or 35 days at a time.

ULTRA MEGA POWER PROJECTS

UMPP is a series of ambitious power stations planned by the government of India. They would entail the
creation of an additional capacity of at least 100,000 MW by 2022. UMPP, each with a capacity of 4,000
MW or above, are being developed with the aim of bridging this gap. Of the 12 stations planned for the
project, seven are coastal plants requiring imported coal and five require local coal. Currently, only two
UMPPs have been commissioned, Mundra (imported coal) and Sasan (local coal). Mundra is already
taking imported coal, some of it from the USA.

Coal producers are not the only ones interested in the speed of UMPP development. Indian port operators
such as Krishnapatnam (KCPL) have an intense interest. Midway through 2010, iron ore exports were
banned, leaving the KCPL port no choice but to focus on coal and other bulk commodities. KCPL has
responded like a true entrepreneur, expanding their bulk importing facilities. However, we learn that power
plants commissioned since April 2014, aggregating to 13,900 MW, face financial uncertainties due to the
lack of sufficient off-take agreements and transmission constraints, according to Fitch Groups company
India Ratings & Research. Keep an eye on the UMPP.
Based on supercritical technology, 16,000 MW of capacity have been contracted through the competitive
bidding process for UMPPs. The average tariff for these projects is in the range of 2-3 rupees per kWh,
which is much lower than the recent cost-plus tariffs. The first UMPP, developed by Tata Power at Mundra,
Gujarat has been commissioned and contributes 4,150 MW in power to the western grid. For comparison,
Americas largest coal-fired power plant, Southern Co.s Scherer plant, generates 3,564 MW.
The UMPPs are seen as an expansion of the MPP (Mega Power Projects) that the government of India
undertook in the 1990s, but met with limited success. The Ministry of Power, in association with the
Central Electricity Authority and Power Finance Corporation Ltd., has launched an initiative for the
development of coal-based UMPPs in India. These projects will be awarded to developers on the basis of
competitive bidding. One should not only watch the website, www.pfcindia.com/home.aspx, and the
government-based power company NTPC, but watch private power generation companies as well to stay
abreast of new coal import needs. These include two major Indian companies that are privately owned:

ADANI POWER
On May 11, Adani Power announced the completion of the acquisition of Udupi Power Corp. Ltd. and with

this, Adani Power has a total commissioned capacity of 10,440 MW, making it the largest private power
producer in India.

Mundra Thermal Power Station. A 4,620-MW (4 x 330, 5 x 660 MW) coal-based thermal power
plant at Mundra, Kutch district, Gujarat. This plant is fully functional. It operates a first power transmission
project of 400-kV Double Circuit Transmission System from the Mundra plant to Dehgam (430 km).

Kawai Thermal Power Station. A 1,320-MW (2 x 660 MW) coal-based thermal power plant at
Kawai village, Baran district, Rajasthan. This plant is fully functional.

Tiroda Thermal Power Station. A 3,300-MW (5 x 660 MW) coal-based thermal power plant at
Tiroda, Gondia district, Maharashtra. All units are fully functional.

Udupi Power Plant. A 1,200-MW (2 x 600 MW) coal-based thermal power plant at Padubidri,
Udupi district, Karnataka. Both units are fully functional and have been since September 2012. Adani
Power acquired this power plant from Lanco Infratech in August 2014.

As of January 2011, the company had 16,500 MW under implementation and planning stage. A
few of them were 3,300-MW coal-based TPP at Bhadreswar in Gujarat, 2,640-MW TPP at Dahej in
Gujarat, 1,320-MW TPP at Chhindwara in Madhya Pradesh, 2,000-MW TPP at Anugul in Orissa, and
2,000-MW gas-based power project at Mundra in Gujarat. The company is also bidding for 1,000 MW of
lignite coal-based power plant at Kosovo showing its international projects.
In the second week of August 2014, Adani power had acquired Lanco Infratechs Udipi thermal power
plant. This would add another 1,200 MW of installed capacity, taking the group capacity to 10,480 MW.
ESSAR ENERGY
Essar Energy has an installed power generation capacity of 3,910 MW across six plants, and is a very
progressive company. However, they purchased two Siwertell unloaders two years ago for dust-free
unloading of coal, and have been struggling to use them. They need to acquire land for the placement of
transport conveyors that are needed to move coal from the unloaders to the power plant, so the Siwertells
have not yet been put into service.

Essar Vadinar Power Plant, Vadinar, Gujarat. It is a 1,010-MW (1 x 120, 1 x 380 MW, 1 x 510
MW) captive thermal power plant. The plant is fully functional.

Essar Salaya Power Plant, Salaya, Gujarat. It is a 1,200-MW (2 x 600 MW) coal-based thermal
power plant. The plant is fully functional.

Essar Mahan Power Plant, Mahan, Singrauli district Madhya Pradesh. It is a 1,200-MW (2 x 600
MW) coal-based thermal power plant. One unit is functional.

Essar Hazira-2 Power Plant, Hazira, Gujarat. It is a 270-MW (1 x 135 MW) thermal power plant.
This plant is yet to become operational.

Essar Tori Power Plant, Tori, Jharkhand. It is an 1,800-MW (3 x 600 MW) coal-based thermal
power plant. This plant is yet to become operational.

Essar Paradip Power Plant, Paradip, Odisha. It is a 120-MW (4 x 30 MW) coal-based thermal
power plant. This plant is yet to become operational.

http://www.coalage.com/departments/transportation-tips/4692-india-coal-logisticsperspective.html#.Vl5wGtIrLcs