Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
APRIL 2017 (As of 13 April 2017) For updated information, please visit www.ibef.org 1
PORTS
Executive Summary3
Advantage India...5
Market Overview & Trends.7
Porter Five Forces Model Analysis 18
Strategies Adopted...20
Growth Drivers...22
Opportunities..39
Success Stories... .41
Useful Information..47
FY16 FY17E
21
CAGR: 156% By FY17, container demand in
India (For major ports) is
Trade to boost demand for 8.20
expected to increase to 21
containers
million TEU from 8.2 million
TEU in FY16
FY16 FY17E
228
CAGR: 128.7% By FY17, iron ore traffic (For
Infrastructural development to
Major & Minor ports) is
increase demand for iron &
expected to rise to 228 MMT
steel
43.6 from 43.6 MMT in FY15
FY15 FY17(E)
MMT
ADVANTAGE INDIA
PORTS
ADVANTAGE INDIA
FY16 Robust
Growingdemand
demand FY17E
Attractive opportunities
Port traffic in India is set to rise at a CAGR of
Cargo 29.2 per cent over FY1517 Non-major ports are set to benefit from Cargo
traffic in CAGR in traffic : strong growth in Indias external trade traffic in
MMT: Non-major ports: expected to increase MMT:
1072.47 by 140.5 per cent to 815 MMT by 2017 Special Economic Zones are being 1,758.3
from March 2016 developed in close proximity to several
Major ports: expected to increase by ports comprising coal-based power
55.5 per cent to reach 943 MMT by plants, steel plants & oil refineries
2017 from FY16 (April-December
2015)
Advantage
India
Competitive advantages Policy support
India has a coastline which is more than The government initiated NMDP, an
7,517 km long, interspersed with more initiative to develop the maritime sector;
than 200 ports the planned outlay is USD11.8 billion
Most cargo ships that sail between East FDI of 100 per cent under the automatic
Asia & America, Europe & Africa pass route & a 10n year tax holiday for
through Indian territorial waters enterprises engaged in ports
Source: Report of the Task force on Financing Plan for Ports, Govt. of India, TechSci Research
Notes: FY Indian Financial Year (AprilMarch), NMDP National Maritime Development Programme, FDI Foreign Direct Investment, USD US Dollar,
E Estimated, MMT Million Metric Tonnes, CAGR Compound Annual Growth Rate
APRIL 2017 For updated information, please visit www.ibef.org 6
PORTS
APRIL 2017 Source: Ministry of Shipping; TechSci Research For updated information, please visit www.ibef.org 8
PORTS
MAJOR PORTS IN INDIA
Kandla
Kolkata
Paradip
Mumbai
JNPT Visakhapatnam
Mormugao
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
As of February 2017, 12 major ports in India witnessed
increase in cargo traffic by up to 7.14 per cent, with handling
535.35 million tonne of cargo in the 1st 10 months of FY17. Source: Ministry of Shipping, TechSci Research
Notes: MMT Million Metric Tonnes,
CAGR Compound Annual Growth Rate,
As of March 2017, 16 new cargo scanners are to be FY Indian Financial Year (AprilMarch),
installed across major ports in India. In the 1st phase, 5 of E Estimated
the 13 major ports i.e. Kamarajar (Ennore), New Mangalore,
Jawaharlal Nehru Port Trust, Kolkata & Vizag will receive
the scanners, which should be operational in the next 6
months.
Non-major ports are evolving faster than major ports- Percentage share of ports
28.2%
28.6%
28.7%
34.0%
Non-major ports are gaining shares & a major chunk of
35.6%
38.7%
41.6%
42.9%
43.5%
44.8%
46.4%
traffic has shifted from major ports to non-major ports
71.8%
71.4%
71.3%
66.0%
64.4%
61.3%
58.4%
rose to 43.5 per cent in FY16 from 28.6 per cent in FY07
57.1%
56.5%
55.2%
53.6%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Between FY07 FY16, cargo traffic grew at CAGR 3 per Cargo traffic at major ports (MMT)
cent
195.9 123.18
119.4
179.1 114.1
175.1 101.2
was as follows
179.1 120.1
114.6
119.8
176.1 93.1
168.7 92.3
158.2 92.13
154.3 73.2
Solid cargo was 2 per cent
188.9
187.2
185.9
Liquid cargo was 3.1 per cent
287.4
284.7
276.6
261.2
260.9
258.2
253.5
239.9
273
235.9
230.8
Container cargo was 6 per cent
Cargo traffic during FY17 for solid, liquid & container cargo 1
was 230.8, 158.2 & 92.13 MMT, respectively FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Capacity at major ports grew to 965.36 MMT in FY16, Capacity and utilisation at major ports (MMT)
implying a CAGR of 7.5 per cent since FY07 1200 120.00%
965.36
871.52
average
800.52
744.9
689.8
400 40.00%
670.1
616.7
As of November 2016, 12 Major Ports were identified
574.8
532.1
504.8
under Sagarmala project, for cargo handling till 2035. The
200 20.00%
objective of this project is to promote port led development
& to provide infrastructure to quickly transport goods to &
0 0.00%
from ports, with higher efficiency & at lower cost.
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Indian Port Rail Corporation Ltd. (IPRCL), plans to conduct
Capacity Utilization (RHS)
rail infrastructure expansion & modernisation work for
Jawaharlal Nehru Port Trust, Kandla Port & Haldia Dock
Complex from April 2017. Similar works have already Source: Indian Port Association, Ministry of Shipping,
started for Kolkata, Vishakhapatnam, Tuticorin, New TechSci Research
Mangalore & Chennai ports. Note: MMT Million Metric Tonnes
2.04 2.11
1
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
SEZs are being developed in close proximity to several ports, thereby providing strategic
advantage to industries within these zones. Plants being set up include
Coal-based power plants to take advantage of imported coal
Setting up of port- Steel plants and edible oil refineries
based SEZs Development of SEZs in Mundra, Krishnapatnam, Rewas and few others is underway
Government has announced plans to develop 14 CEZs (coastal economic zones) in a
phased manner for port-led development in all the 9 maritime states by advancing efforts
to develop 1 new port, each on the east & the west coast
All the greenfield ports are being developed at shores with natural deep drafts & the
existing ports are investing on improving their draft depth.
Focus on draft depth
Higher draft depth is required to accommodate large sized vessels. Due to the cost & time
advantage associated with the large sized vehicles, much of the traffic is shifting to large
vessels from smaller ones, especially in coal transportation
Source: Ministry of Shipping, TechSci Research
Notes: SEZ Special Economic Zone, PPP Public-Private Partnership
APRIL 2017 For updated information, please visit www.ibef.org 16
PORTS
NOTABLE TRENDS IN THE PORTS SECTOR (2/2)
Terminalisation: Focus on terminals that deal with a particular type of cargo
This is useful for handling specific cargo such as LNG that requires specific
Specialist terminal-
equipment & hence high capital costs. Forming specialist terminals for such cargo
based ports result in optimal use of resources & increased efficiencies
Examples of specialist terminals: ICTT in Cochin, LNG terminal in Dahej Port
To promote private investments, the government has reformed the organisational model of
seaports
From: A service port model where the port authority offers all the services
Landlord port model
To: A landlord port model where the port authority acts as a regulator & landlord
while port operations are carried out by private companies
Major ports following landlord port model: JNPT, Chennai, Visakhapatnam & Tuticorin
With the increasing private participation in establishing minor ports. Cargo traffic handled
Rising traffic at non by the minor ports are outpacing cargo traffic at major ports, cargo traffic at non major port
major ports has expanded at a CAGR of 31.5 per cent during FY0715
The cargo traffic at major ports was 481.20 MMT in FY171
Bargaining
Bargaining Power of Suppliers Bargaining Power of Customers
Power of
Suppliers
Considerable capacities to be Imports to continue to remain (Medium)
added going forward. However, strong led by strong demand.
demand to continue to remain However considerable port
strong capacities to be added going
forward
STRATEGIES ADOPTED
PORTS
STRATEGIES ADOPTED
After having a strong advantage on Indias West coast, Adani Ports & Special Economic Zone Ltd
(APSEZ) is looking to strengthen its position by winning the bid of a new container terminal at
Ennore port located on the east coast. Furthermore Adani Ports has acquired Dharma Port to
replicate its development & growth on the eastern coast
Pan-India presence
Essar Ports Ltd as a part of it strategic move to increase its potential on the east coast has won the
contract for the modernisation of 3 ports at Visakhapatnam
Essar Ports Ltd., a leading port operator, plans to build a port in Gujarat with investments worth
US$1.49 billion. For the same, the company has signed a MoU with Gujarat Maritime Board (GMB)
Geographic diversification as in the case of Adani group acquiring coal mines (Australia &
Indonesia) & setting up coal terminal in Australia to take the benefit of increasing coal imports in
Geographic India
diversification As of April 2017, Adani Ports is planning to expand and open a multi purpose port on Carey Island
in Malaysia, as an extension of the Port Klang. A MoU was signed between APSEZ and MMC Port
Holdings Sdn Bhd, a wholly-owned unit of MMC Corporation Berhad
Adani group, largest private port operator in India, is now venturing into providing allied services like
Allied activities dredging. Its dredgers which were being used only at its own ports in the past have now started
taking work from other ports
Container train Adani group has also ventured into the container railway business becoming the largest private link
operations in the country. It conducts operations on a pan-india basis operating 6 container rakes
Port authorities are modernizing & upgrading port facilities to meet the needs of the port users in
Modernising competitive environment
Source: Company website, TechSci Research
GROWTH DRIVERS
PORTS
SECTOR BENEFITS FROM STRONG DEMAND, PRIVATE PARTICIPATION
Growing
Growing demand Policy support Innovation
Increasing
demand investments
National Maritime
Development Expanding port Increasing
Increasing trade
Programme & development & investments in
activities resulting
National Maritime distribution building ports &
in container traffic
Agenda facilities in India related activities
Inviting Driving Resulting
Indias total external trade have grown to USD416 billion in Indias external trade flows (USD billion)
FY171, implying a CAGR of 4 per cent done since FY09
489 491
450 448
370 381
304 288 306 300 314 310
250 262 241
185 179 175
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 1
202.85
A consequence of strong GDP growth has been rising
189.44
189.24
energy demand; the country currently meets about 75
184.8
171.73
per cent of total crude oil demand by imports
159.26
163.6
132.78
Indias crude imports touched 202.85 MMT in FY16,
121.67
implying a CAGR of 6.9 per cent over FY0716
111.5
53.15
1
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Private ports have been especially good at attracting POL traffic (MMT)
crude import traffic
180.9
169.8
168.6
167.3
156.3
191.5
145.4
POL traffic at both major & non-major ports added
137.7
97.8
up to 376.84 MMT in FY16, implying a CAGR of 5
91
81.2
per cent over FY0715
195.94
187.2
185.9
179.1
179.1
POL traffic in FY16 reached 376.84 MMT
176.1
175.1
158.25
168.7
181
154.3
1
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
83.5
60
Increasing coal imports are set to drive coal cargo traffic Coal cargo traffic (MMT)
upwards at both major and non-major ports
126.1
21.5
118.7
15.4
104.1
Total coal handled by Indias 12 major ports jumped to 14
86.6
78.8
72.7
71.7
70.4
64.9
59.9
126.1 million tonnes in FY16 from 118.7 million tonnes in
FY15
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Thermal coal imports through the ports leaped 13.3 per cent Major Ports Minor Ports
to 98.7 million tonnes, while shipments of coking coal, used
in making steel, reached to 27.35 million tonnes Source: Ministry of Shipping; TechSci Research
Note: MMT Million Metric Tonnes
Proposed investments in major ports by 2020 are expected to total USD18.6 billion, while those in
Increasing investments non-major ports would be USD28.5 billion
World-class To implement full mechanisation of cargo handling & movement at ports, thereby bringing Indian
infrastructure ports on par with the best international ports in terms of performance & capacity
Major ports have been working towards implementing Landlord port concept duly limiting their role
Landlord ports to maintenance of channels & basic infrastructure leaving the development, operation, management,
of terminal & cargo handling facilities to the private sector
To develop 2 major ports (1 each on East & West coast) to promote trade as well as 2 hub ports (1
each on the West coast & the East coast) Mumbai (JNPT), Kochi, Chennai & Visakhapatnam
India & Tajikistan to work closely on developing trade & transport links through the Chabahar Port
Strategically building In April 2017, Indian government has approved MoU on passenger cruise services on the coast and
ports protocol routes between India and Bangladesh to commence regular movement of tourists and
passengers in vessels between the two countries. The decision will generate employment
opportunities for the people living in both the countries, and promote cooperation in economic, social
and cultural advancements.
Bringing ports under To establish a port regulator for all ports in order to set, monitor & regulate service levels, technical
regulator & performance standards
Source: Ministry of Shipping, TechSci Research
APRIL 2017 For updated information, please visit www.ibef.org 30
PORTS
NATIONAL MARITIME AGENDA 20102020 (2/2)
National Maritime Agenda 201020 is aimed at all-round development of the Indian maritime sector
As per the National Maritime Agenda, the government is likely to create port capacity of 3200 MT for handling about 2500
MT of cargo, by 2020
Agenda involves investments in new projects at major ports of around USD18.6 billion, of which USD12.4 billion is expected
to come from private sector players & the remaining from budgetary allocation
The total traffic on the Indian ports is expected to grow from about 2229 in 2018 and reach to 3033 MT by the end of 2020
The government, through this policy, aims to increase the tonnage under the Indian flag & Indian control as well as the
share of Indian ships in EXIM trade
The government is also working to float a specialised Maritime Finance Corporation with the equity of ports & financial
institutions to fund the Port projects
The proposed outlay for port sector in the plan, excluding private investment, is USD4.9 billion
The overall projected traffic of 1,758.3 million tonnes to be achieved by FY17, the total capacity of the port sector is
envisaged to be 2,289.04 million tonnes by the end of 2017
The government anticipates private sector investment of around USD28.8 billion during the 12th Plan Period.
As of March 2017, government is planning to sell 51 per cent of its 73.47 per cent stake in Dredging Corporation.
Planned capacity 12th Five-Year Plan (MMT) Projected traffic12th Five-Year Plan (MMT)
943.1
1,229.2
815.2
1,059.8
560.1
689.9
544.7 370.0
Major Ports Non- Major Ports Major Ports Non- Major Ports
Source: E:Estimated
Private ports enjoy price flexibility, as the government allows non-major ports to determine
Price flexibility their own tariffs in consultation with the State Maritime Boards; at major ports, tariffs are
regulated by the Tariff Authority for Major Ports (TAMP)
An MCA has been finalised to bring transparency & uniformity to contractual agreements
that major ports would enter into with selected bidders for projects under the Build,
Model Concession Operate & Transfer (BOT) model
Agreement (MCA) As on September 2016, the Ministry of Shipping proposed a new model concession
agreement (MCA) to attract more private sector investments in the development of port
infrastructure across the country.
Major Port Authorities Primary focus of the scheme is to allow future public-private partnership operators to fix
Act, 2016 tariffs. With the implementation of this policy, port authorities will get the power to lease
land for port-related use for up to 40 years & for non-port related use up to 20 years
The system for security clearance for ports being streamline & made faster
Favourable system Expansion of existing framework to attract participation from the private sector for
development of infrastructure facilities such as dredging, road infrastructure, creation of
SEZ & development of integrated parking zones in the port area
APRIL 2017 Source: Ministry of Shipping; TechSci Research; For updated information, please visit www.ibef.org 33
Note: FDI Foreign Direct Investment
PORTS
STRONG PRIVATE SECTOR PARTICIPATION IN PORTS PROJECTS (1/3)
Greenfield projects
Private investment
Private terminals
39 Public Private Partnership (PPP) projects are operational at a cost of around USD2219.4 Million & capacity of 240.72 Million
Tonnes Per Annum (MTPA).
32 PPP projects at an estimated cost of around USD3917.6 Million & capacity 264.77 Million Tonnes Per Annum (MTPA) awarded &
are under implementation.
Total 91 projects with involving capacity of 521.45 MMPA have been awarded during 2012-16 (Upto 30th June, 2015)
15 PPP projects with an estimated cost of about USD1210.6 Million & capacity 69.47 Million Tonnes Per Annum (MTPA) have been
awarded/approved & 13 projects at an estimated cost of about USD1466.2 Million & Capacity 108.35 Million Tonnes Per Annum
(MTPA) are likely to be awarded/approved by 31.03.2015.
As of September 2016, the National Green Tribunal has given nod for construction of multi-crore Vizhinjam International Seaport Ltd
(VISL). The port is being developed by Adani Group in collaboration with Kerala Government.
2 mega port projects in Colachel in Tamil Nadu & Dahanu in Maharashtra with an initial investment of USD2.3 billion has been
introduced & are being awaited for approval under PPP model in FY16.
As of October 2016, Central Government is planning to setup logistic hubs near seaports with the help of private sector players, to
augment exports from the country.
In January 2017, a new container service, operated by K Line, commenced operations between CITPL (Chennai International
Container Terminals Pvt. Ltd) at Chennai port & the Far East, which was marked with the arrival of container vessel, Baltimore Bridge.
Terminals in major ports with private sector Port agency Capacity Estimated cost
involvement (FY15) (Million tonnes) (USD million)
OPPORTUNITIES
PORTS
OPPORTUNITIES
Increasing scope for private ports Ship repair facilities at ports Port support services
With rising demand for port Dry docks are necessary to provide ship Operation & maintenance services such
infrastructure due to growing imports repair facilities. Out of all major ports, as pilotage, dredging, harbouring &
(crude, coal) & containerisation, public Kolkata has 5 dry docks, Mumbai & provision of marine assets such as
ports (major ports) will fall short of Visakhapatnam have 2; the rest have 1 barges & dredgers are expected to
meeting demand or no dock at all increase in coming years
This provides private ports with an Given the positive outlook for cargo Increasing investments & cargo traffic
opportunity to serve the spill-off demand traffic & the resulting increase in number point to a healthy outlook for port
from major ports & increase their of vessels visiting ports, demand for support services
capacities in line with forecasted new ship repair services will go up. This will
demand. provide opportunities to build new dry These include Operation & Maintenance
docks & setup ancillary repair facilities. (O&M) services like pilotage, harbouring
Cochin Port Trust (CPT) announced & provision of marine assets like barges
measures to increase its revenue by & dredgers.
generating higher container traffic &
increasing the number of passenger JNPT in Navi Mumbai signed an
liners. CPT is also planning to setup a agreement with Development Bank of
small industrial port at the southern end Singapore & State Bank of India, for
of Willingdon Island to boost business. external commercial borrowing worth
USD400 million for expansion of road
network connecting the port.
SUCCESS STORIES
PORTS
MUNDRA: THE LARGEST PRIVATE PORT IN INDIA (1/2)
Mundra Port and Special Economic Zone Ltd was renamed Net sales (USD million)
as Adani Ports & Special Economic Zone Ltd 1213.1
Has the worlds largest fully mechanised coal terminal with Source: Company sources, including Annual Reports and news
a capacity of 60 MTPA items; Assorted news articles; TechSci Research
Notes: POL Petroleum, Oil and Lubricants,
MTPA Million Tonnes Per Annum,
Handles the 2nd highest container traffic in India MMT Million Metric Tonnes
Adani Group plans to convert the Dhamra Port, in Odisha,
During FY0816, total revenue rose to USD1213.1 million,
into country's biggest seaport with industrial park, and set
implying a CAGR of 25 per cent
up LNG and LPG terminals there by 2021.
Jawaharlal Nehru Port Trust (JNPT) has the 3rd highest cargo traffic & the highest container traffic in the country
Distribution of JNPTs container traffic for FY16 across its various terminals was a s follows
JNPT was developed to relieve the pressure of Mumbai port Cargo profile of JNPT (FY16)
and was commissioned in 1989
1.1%
It serves most of North India & has good hinterland
connectivity through road & rail networks 10.5%
Gujarat is endowed with 1,215 kilo meters of coastline i.e. Cargo handled at major and non-major port of
1/6th of total Indian coastline Gujarat (MMT)
During the 12th Five-Year Plan, the government estimates investment of about USD9.4 billion in the port sector by private players
in Gujarat
With 7 ports under construction & 5 proposed ports, Gujarat has the highest number of privately operated greenfield ports in India
As of October 2016, Ministry of Shipping has sanctioned Capital Dredging Project for Ro Pax Ferry Services between Gogha &
Dahej, in Gulf of Cambay in Gujarat. The total project cost is US$ 35.75 million, of which 50 per cent will be funded by Centre
Government under the Sagarmala programme
As of November 2016, Ministry of Shipping sanctioned sum of USD1.49 million to Gujarat Maritime Board for capacity building &
safety training of workers involved in ship recycling activities under Sagarmala
USEFUL INFORMATION
PORTS
INDUSTRY ASSOCIATIONS
Major and non-major ports do not have a strict association with traffic volumes. The classification has more of an
administrative significance
Cargo traffic includes both loading (export) and unloading (imports) of goods
Containerisation is the increased use of container for transporting non-bulk goods. It leads to increased efficiency (both
time and money)
Turnaround time is the total time spent by a ship from entry into port till departure
Twenty Equivalent Units (TEU) is a standard measure of containers which are 20 feet in length and 8 feet in width; the
height can vary
Draft is the vertical distance between waterline and the bottom of the ship. It determines the depth of water a ship or boat
can safely navigate. Higher capacity ships will need higher draft, hence ports with higher natural draft will attract bigger
ships
Waterfront availability is the length of the water line on the coast where ships can rest and the goods are unloaded. Longer
waterfront lengths reduce waiting time and help raise capacity
Terminals are certain sections of the ports where different types of cargo are unloaded
Single Point Mooring (SPM) is a loading buoy anchored offshore that serves as a mooring point and interconnect for
tankers loading or offloading gas or fluid product
A dry dock is a narrow basin that can be flooded to allow a ship to be floated in, then drained to allow that ship to come to
rest on a dry platform. Dry docks are used for construction, maintenance and repair of ships
FY: Indian Financial Year (April to March) So FY11 implies April 2010 to March 2011
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
Year INR equivalent of one USD Year INR equivalent of one USD
200405 44.81
2005 43.98
200506 44.14
2006 45.18
200607 45.14
2007 41.34
200708 40.27
2008 43.62
200809 46.14
2009 48.42
200910 47.42
2010 45.72
201011 45.62
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of TechSci and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission
on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.