Ports Marine Sector
The state of Gujarat has 41 minor and intermediate ports geographically dispersed across South Gujarat (13 ports), Saurashtra (24) and Kutchch (4) regions. The State’s port policy announced in 1995 envisaged10 new sitesalong the Gujarat coastline for development .The Pipavav and Mundra ports are already in operation. The Gujarat Chemical port terminal at Dahej has commenced operations since Jan 2001. The LNG terminal at Dahej is developed by M/S Petronet India Ltd is operational from February, 2004. The LNG terminal at Hazira is developed by Shell India Ltd. and is operational from April 2005.The Solid cargo terminal at Dahej is under construction. The Govt. of Gujarat has signed concession agreementswith Pipavav,Mundra, Dahej, GCPTCL and Hazira port developers. Expression of Interest have been invited by the Gujarat Maritime Board for the development of 6 ports out of which Mahuva, Sutrapada, Dahej Multi purpose terminal and Simar have been awarded to Private sector for development. Modhwa , Bedi and Maroli ports are in the process of bidder selection.
Current Scenario
Among the maritime states, Gujarat was the first to set up a maritime board to oversee the privatization of minor ports. It was also the first state to announce a separate port policy. The Government of Gujarat has announced the Port Policy in December, 1995, which integrates the development of ports with industrial development, power generation and infrastructure development. The policy envisages the development of 10 green field ports, 6 of them as fully private and 4 as joint sector ports. The BOOT policy for the ports was announced in 1997 and subsequently the BOT law (the Guajrat Infrastructure Development Act) has been framed to invite private sector participation in the State through international competitive bidding.
Capacity Scenarios
The cargo traffic handled by Gujarat Minor ports was 73 Million tons in year 2000-2001, 82.55 Million tons in 2001-02, 84.12 Millon tons in 2002-03, 89.35 Million tons in 2003-04, 95 Million Tons in 2004-05, 108 Million tons in 2005-06, 132.44 Million tons in 2006-07 and 198 MT in 2007-08. Thus, Gujaratports handle a majorchunk of port traffic across the western region of the country.
At present Gujarat ports handle around 20% of the cargo throughput of the country. By 2015, the throughput for the country is estimated to be around 1027 million tonnes. At the same time, the Gujarat ports will handle 400 million tonnes taking the share of the state to 39% of the country. The western region ports in Maharashtra and Gujarat serve northern hinterland market. As per theassessment of the PODEG study conducted by the Netherland Experts, 38% of the general cargo and 42% of the container throughput of Mumbai ports is from the northern hinterland. Also 30% of the cargo throughput of the Gujarat ports is for the northern hinterland. Adding up the above, the present share of Gujarat ports of the cargo generated from the northern hinterland is around30%. This is expected to increase to 100% by 2015.
For dry bulk, the optimal ship size is 150000 DWT, for liquids it is 300,000 DWT and for containersthe current trend is for 10,000 TEU. Handling these sizes require direct berthing as well as the draft ofnot less than 14m. Therefore ports having these requirements should be encouraged so as to achieve the economies of scale in transportation and to ultimately benefit the consumer.
The optimal ships will require to be supplemented by an efficient handling system. The existing handling systems in private ports are comparable to the best practices in the Indian scenario but fall short of the international best practices.
Demand-Supply Scenario
| 2007-08 | 2010-11 | 2012-13 | 2017-18 | 2019-20 | |
|---|---|---|---|---|---|
| Demand : Non major Ports Only | 148 | 226 | 322 | 573 | 740 |
| Traffic# : Non major + Kandla & Vadinar | - | - | - | - | - |
| Capacity*@ : Gujarat Ports | 203 | 303 | 615 | 849 | 990 |
| Capacity@ : GMB + Kandla & Vadinar | - | - | - | - | - |
| Total Supply at Gujarat Ports(MMTPA)(75% of Capacity) | 153 | 227 | 461 | 637 | 742 |
| Demand- Supply Gap | -5 | -1 | -139 | -64 | -2 |
It can be seen that till 2017-18, adequate supply is available for the demand that would arise for Gujarat Ports, and only by 2018-19 does the demand catch up with supply available. Thus, it can be said that by 2020 Gujarat Ports would have adequate capacity to meet future cargo demand
Landmark Decisionse
The Gujarat Port Infrastructure Development Corporation Ltd. (GPIDCL) The Gujarat Port Infrastructure Development Corporation Ltd. was instituted as the investing arm of the Gujarat Maritime Board for the routing of equity into the New Joint sector ports. The new port policy declared in 1995 has stated that four ports along the coast of Gujarat will be developed in joint venture with private sector. Gujarat Maritime Board, in association with Gujarat Industrial Investment Corporation Ltd., has set up a company viz. Gujarat Ports Infrastructure & Development Company Ltd. to give a boost to the port sector in Gujarat region. The profile of the company would be to act as a promotion agency for co-ordination development for various ports and would make equity investments in ports that would be developed as private or joint sector ports. GPIDCL intends to achieve the following three basic objectives :
(1) To act as equity partner in Joint sector ports (26%) as well as private sector ports (11%) as a representative of Govt. of Gujarat to generate confidence and sense of state’s commitment in the minds of private investors.
(2) To mobilize resources and develop port related infrastructure like terminals, berths/jetties, break water, maintenance of navigation channel, roads/rail/pipeline linkages, colonies, warehouses, tank farms, workshop facilities, office premises, container freight stations and other necessary supporting infrastructure required for running of a port and the region.
The investments in the project may be in revenue generating viable projects and/or those which do not offer commercial returns but are crucial to the integrated development of the port and the region. The company also intends to develop a robust information base and skill set to act as a reliable port sector advisor for all the port sector entities. Thus the company would be engaged in bid floating and evaluation, financial, technical and legal appraisal of port and port related infrastructure projects, pre-feasibility studies, identifying projects that would aid ports and port development, traffic surveys and projections, marketing of port services, resource mobilization, etc.
Setting up of port regulatory authority is under active consideration by Government of Gujarat
List of Privatized Projects
| Project Name & Location |
Project Type | Name of the Developer | District | Investment (Rs crores) till year 2010 |
Capacity MMTPA |
Current status |
|---|---|---|---|---|---|---|
| Pipavav | Green Field port | Gujarat Pipavav Port Ltd. |
Pipavav, Bhavnagar | Ph I - 586.27 Ph II - 1200.54 Ph III - 555.00 Total-2341.81 |
12.06 | Initially, development of port has been taken up in joint sector
by the joint sector company M/s. Gujarat Pipavav Port Ltd. (GPPL) in which, 26 % of shares
were with Gujarat Maritime Board. Later in 1998, GMB disinvested from the project and it has
been decided to develop in private sector on BOOT basis.
Concession Agreement was executed on 30/09/98 with the company, to develop Pipavav port with 30 years BOOT period. The port is operational since 1996. A jetty of 725 mt. long for handling solid bulk and a jetty of 305 mt. long for handling liquid POL cargo was developed. Mearsk, the international shipping line has made their base at the Port of Pipavav. Broad-gauge rail connectivity provided by forming Separate Special Purpose Vehicle company (SPV) with Railway Ministry (GoI) partnership. Broad-gauge rail conversion of 270 km. from Surendranagar to Pipavav has been commissioned in May 2003. Port Pipavav is the first in India to receive double-stacked container trains, which have a capacity of carrying 180 TEUs as against 90 TEUs carried in a single stack train. Total Private Investment of Rs. 697 crores is realized. GPPL has taken up expansion plant of the port and various development works are under progress. |
| Hazira | LNG Driven Port | SHELL India Ltd. | Hazira, Surat | Ph I - 3193.20 PhII - 248.36 PhIII - Total3441.56. |
11.5 | As per the Port policy, Hazira port is being developed fully in
private sector.
M/s. Hazira Port Pvt. Ltd., a company promoted by an international company M/s. Shell Gas B.V. for the development of Hazira Port. The Port Project evolving development of LNG and other cargo facilities at an investment of Rs. 3792 crores. The company has signed concession agreement on April 2002 with GMB/GoG, which is on BOOT basis. On development of phase-1, the port would be able to handle about 16.50 MMTPA of various types cargoes viz. LNG, general dry bulk and container. The company has completed construction of port assets viz. capital dredging of approach channel, turning area and berth pocket, Southern and Northern spur, reclamation and LNG berth etc. The LNG terminal and Port Project was unveiled by Hon’ble Chief Minister of Gujarat in the presence of Union Petroleum Minister and others on 19/9/2003. HPPL has signed Heads of Agreement with PSA International for the development of container terminal at Hazira. Total investment of Rs. 2408 crores is made for the development of Hazira port. |
| Mundra | Green Field Port | Gujarat Adani Port Ltd. |
Kutchh | Ph I - 1438.65 Ph II 328.10 Ph.III- 985.30 Ph IV- 1009.20 Ph V- 1213.0 Total- 4974.25 Plus AREcost Total-5547.80 |
14 | M/s. Gujarat Adani Port Ltd. (GAPL) is developing the Mundra port.
A Concession Agreement for development of the port on BOOT basis was signed between Government of Gujarat/ Gujarat Maritime Board and GAPL in February 2001. Company has constructed 4 multipurpose berths and commenced cargo operation from September 1998. Ships up to 80000 DWT can berth at the jetty. For handling of cargo, conveyor system having 18000 M. Tones Per day capacity have been installed at the jetty. The port has been operational since, 1998. The company has established broad gauge rail link of 57 km. at an investment of Rs.136 crores, with the port and commissioned in 2002. The port has also facilities of double stacked container rail. In Phase-I development container berth of 632 m long berth is completed and put into operation since July, 2003. The construction of remaining portion of container berth is under final stage of construction. The company has completed construction of T-2 bulk cargo terminal at the port and it will be operational soon. For operation and development of container terminal the company has associated in May 2003 with P & O - an international container terminal operator, which has brought foreign investment of Rs.1400 crores in terminal development. The company has set up 1 SPM for import of crude oil. The total port project would be developed at an investment of @ Rs.2151 crores. Total Private Investment of Rs. 1374 crores is realized. |
| Positra | Green field port | Sumitomo | Jamnagar | Ph.I- 2104.17 Ph.II 861.37 Ph.III - Total 3888.04 |
26 | M/s Gujarat Positra port co. Ltd., a Jt. Venture port developer Company has been formed. Land acquisition for the port project is in advance stage.. Land bifurcation is as follows: . Private-3951 acres; Govt- 2575 acres ,Forest-1854 acres. The project is awaiting Environmental clearance. |
| Maroli | Green field port | - | Valsad | Ph.I- 699.18 Ph.II 246.68 Ph.III- 54.00 Ph IV- 38.00 Total – 1037.85 |
8.7 | Expression of Interest has been invited for the development of the port. |
| Dahej | LNG Project | Petronet LNG Ltd. | Lakhigam, Bharuch |
LNG Terminal-3000 Solid cargo : Terminal A -136.40 Terminal B- 130.2 Terminal C- 129.2 |
5 | A joint sector company M/s. Petronet LNG Ltd., have been formed by
Oil sector PSU's of Government of India for development of the port. All PSUs holding 12.50 % equity in the company. The project has been envisaged with an investment of Rs. 3130 crores. LNG terminal has been operational since February 2004. The terminal has a capacity of 5 MMTPA LNG handling. The company has made an investment of Rs. 2800 crores. The company has undertaken expansion of LNG storage facilities at the port. The company has also planned to build an additional LNG berth at Dahej port, for which an MOU was signed in Vibrant Gujarat 2007. |
| Dholera | Green field port | J. K. White cement Ltd. | Dholera-Bavaliari Ahmedabad. |
IN US $ Ph.I- 239.6 Ph.II 73.4 Ph.III- 73.4 Ph IV- 73.4 Ph V- 108.60 |
8 | GMB has issued LoI to M/s. Dholera Port Ltd. (a group of companies
of JK white cement). Company has prepared a Detailed Project Report for development of Dholera Port which is approved by GMB. Recently, the company has obtained Environment Clearance for the project and now, they will implement the project. |
| Simar | Green field port | - | Amreli-Junagadh | Ph.I- 1660.46 Ph.II 411.56 Ph.III - Total 2072.03 |
14 | GMB has issued LOI to M/s Shaporji Palonji group of companies. DPR is under progress. |
| Mithivirdi | Green field port | - | Bhavnagar | Ph.I- 410.70 Ph.II 92.70 Ph.III - Total 503.40 |
- | Expression of Interest has been invited for the development of the port. |
| Vansiborsi | Green field port | - | Surat | Ph.I- 245.76 Ph.II 16.20 Ph.III 12.95 Total 274.91 |
- | Expression of Interest has been invited for the development of the port. |
| Bedi | Green field port | - | Jamnagar | Ph.I- 2365.48 Ph.II 540.34 Ph.III - Total 2905.82 |
- | Expression of Interest has been invited for the development of the port. |
| Mahuva | Brownfield port | - | Bhavnagar | - | - | GMB has issued LOI to M/s Nirma chemical Industries. DPR is under progress. |
| Sutrapada | Green field Port | - | Junagadh | - | - | GMB has issued LOI to M/s L&T Ltd. DPR is under progress. |
Shelf of Projects
Implemented Projects
| No. | Port | Status | Remarks |
|---|---|---|---|
| 1 | Mundra | Operational Since September 1998 | Facilities developed:
|
| 2 | Pipavav | Operational Since 1996 | Facilities developed:
|
| 3 | Dahej | LNG terminal – operational since February 2004 | Facilities developed:
|
| 4 | Hazira | LNG terminal operational since April 2005 | Facilities developed: LNG import facilities of 5 MMTPAUnder development/plan:
|
Awarded Projects
| No. | Port | Status |
|---|---|---|
| 1 | Dholera |
|
| 2 | Poshitra |
|
| 3 | Establishment of 3 additional SPMs at Sikka - M/s. RPTL |
|
| 4 | Development multipurpose jetty having 2 berths each for solid cargo and liquid cargo |
|
| 5 | Establishment of 2nd SBM at Hazira |
|
| 6 | Extension of captive jetty at Magdalla - M/s. Essar |
|
| 7 | Extension of captive jetty at Kovaya (Pipavav) - M/s. Ultra Tech Cement |
|
| 8 | Extension of captive jetty at Jakhau - M/s. Sanghi Cement |
|
| 9 | Expansion of port facilities at Pipavav port - M/s. GPPL |
|
| 10 | Cement jetty at Kutch - Gujarat Anjan Cement |
|
| 11 | Cement jetty at Kutch - Deepak Cement |
|
| 12 | Cement jetty at Kutch - ABG Shipyard Ltd. |
|
| 13 | Solid Cargo Terminal at Dahej - Adani Petronet Pvt. Ltd. |
|
| 14 | Indorama captive Jetty |
|
| 15 | Ship Building yard at Pipavav |
|
Projects under Bidding stage
| No | Port | Status |
|---|---|---|
| 1 | Simar | Proposal is under scrutiny at GOG level. LOI will be issued shortly |
| 2 | Vansi Borsi | Revised commercial Bids received. Proposal is being submitted GOG and LOI will be issued shortly |
| 3 | Mithivirdi | Proposal is under scrutiny at GOG level. LOI will be issued shortly |
| 4 | Bedi | Proposal is under scrutiny at GOG level. LOI will be issued shortly |
| 5 | Maroli | LOI will be issued shortly |
| 6 | Khambhat | LOI is being issued |
| 7 | Mahuva | Revised commercial Bids received. Proposal is being submitted GOG and LOI will be issued shortly |
| 8 | Dahej (Container and SEZ) | Proposal is under scrutiny at GOG level. LOI will be issued shortly |
| 9 | Modhwa | Revised commercial bids has been received. The same will be processed further by GMB. |
| 10 | Sutrapada | Negotiation with Bidder is made at GOG level and the same is under consideration at GOG Leve. |
| 11 | SPV in existing Magdalla Port | Techno Commercial – Legal study to develop/upgrade existing ports in Joint Venture is prepared by the consultants and is under examinations. RFQ document is expected to be issued by March 2008. |
| 12 | SPV in existing Navlakhi port | - |
| 13 | SPV in existing Okha port | - |
| 14 | SPV in existing Bhavnagar port | - |
| 15 | SPV GMB and GIDC at Dahej | - |
| 16 | SPV for Alang | - |
List of linkage Projects
| Name of the Port | Linkages |
|---|---|
| Pipavav |
Rail linkage-The Pipavav - Surendranagar rail line is in operation. The ICD connectivity has also been establishedPower projects:-
|
| Mundra | Road Linkage- Mundra port Linked road already connected to National Highway.
Mundra - Adipur rail link commisioned.
RailL Linkage -
SEZ Project
|
| Hazira Port |
Power Projects
Road Link
Rail Link
|
| Dahej Port | GMB Plan for providing terminal facilities for Ro-Ro ferry service along with
cargo handling facilities.Road Link
Rail Link
SEZ
|
Statistical Data of the Sector
| . | Gujarat handled majority share of 79.84% of traffic in India ‘s minor and intermediate ports in 2006-07 and 71.5% of the cargo traffic in India’s Non major ports. |
|---|---|
| . | Gujarat handles 11.5% of the total cargo traffic in India’s major ports. |
| . | The non major ports of Gujarat handled a cargo traffic of 147 million tons in 2007-08 an increase of 11.44% over the previous year. |
| . | The total port capacity of Gujarat grew at 46.6% from 135 MMT in 2001 to 198 MMT in 2007-08. |
| . | The total imports traffic handled during the year 2007-08 by the ports amounts to 86.75 million tons while that of exports traffic during the year is 50.10 million tons. |
| . | Over and above, Container cargo of 124,1617 TEU has been handled in the year 2007-08. |
| . | The total port capacity is 198 mmtpa and the total cargo handled is 147 mmtpa(2007-08). |
More Information for Gujarat Maritime Board:-
List of Clearances
| Clearence GOI and its agencies | Agency which would issue clearence | When required | ||||
|---|---|---|---|---|---|---|
| 1) Promoter company Registration | Registrar of Companies | Company formation stage | ||||
| 2) Clearance following consideration of Environmental impact Assessment (EIA) and Environment Management plan(EMP) in respect of the project pursuant to section 3(1) and 3(2) (iv)of the Environment (protection) act, 1986 and Rule 5 (3) (a) of the Environment (protection) Rules,1986. | Ministry of Environmental & Forests | Before project implementation | ||||
| 3) Physical Chief /Mathematical modeling of the LNG terminal Marine structures | Central Water & Power research station | Before project implementation | ||||
| 4) Clearance of Detailed Design of LNG berth. | Controller of Explosives | Before project implementation | ||||
| 5) Clearance of Detailed Design of LNG berth. | Ministry of surface Transport | Before project implementation | ||||
| 6) Clearance to the scheme pursuant to the sec-29 of the Electricity (supply) Act ,1948 | Central Electricity Authority(CEA) | Project Implementation | ||||
| 7) Clearance for the Fire equipment for fighting | Tariff Advisory committee | Project Implementation | ||||
| 8) Coastal Regulation Zone(CRZ) Clearance | Relevant port Authority | Before Project Implementation | ||||
| 9) Clearance in connection with the height of the chimney. | National Airports Authority | Project Implementation | ||||
| 10) Confirmation fromDGTD/CCI&E that there is automatic clearance for the import of capital Goods and Raw materials. | Director General of Technical Development/ Director General of Foreign Trade | Project Implementation | ||||
| 11) Confirmation from Department of Economic affairs , Ministry of Finance that the company is permitted to enter into Financing Agreements. | Ministry of Finance | Project implementation | ||||
12) Confirmation from RBI that the company is permitted to
Consent of RBI to opening by the company of US Dollar bank accounts pursuant to Section of FERA,both inside and outside India. Approval by RBI of provision of any gurantee by Indian entities of any Loans extended by overseas lenders to the company. |
Reserve Bank of India | Project implementation | ||||
| GoG and its Agencies | ||||||
| 1) Clearance that the Land comprising the project site and the Green Belt relating to the site contains no land deemed to be ,’reserved forest’ land as per Forest (Conservation) Act, 1980. | Gujarat Forest Department(GFD) & Ministry of Environment and Forests(MOEF) | |||||
| 2) Clearance under Section 18A of the Electricity Supply Act. | Government of Gujarat | |||||
| 3) For allocation of requisite amount of water to the proposed project and for abstraction of sea water | Department of Irrigation GOG /Relevant Authority | |||||
| 4) Permission for use of ground water. | Chief conservator of Ground water Dpartment(GoG) | Project Implementation | ||||
| 5) Confirmation for water supply of required quantity for the proposed port site. | Gujarat Water Supply and Sewerage Board( GWSSB) | Pre Project Implementation | ||||
| 6)Approval pursuant to sec.21 of the Air(Prevention & control of Pollution)Act, 1981 in connection with emissions | Gujarat Pollution Control Board (GPCB) | Pre Project Implementation | ||||
| 7)Confirmation that Electricity will be made available during project
construction period. Clearance under section 44 of Electricity (Supply) Act, 1948. |
Gujarat Electricity Board ( GEB) | Construction period | ||||
| 8) Confirmation relating to project and green belt | Collector/Directorate of Town planning,GoG | Before Construction period | ||||
| 9) Approval of proposed design and construction of the project pursuant to section 6 of the factories act,1948. | Chief Inspector of Factories , GoG | Before Construction period | ||||
| 10) Consent relating to Fire fighting capability under the Factories Act,1948. | Chief Inspector of Factories , GoG | Before Project Implementation | ||||
| 11) License required for construction Labour pursuant to section 7 of the contract labour (Regulation and Abolition) Act, 1970 before the start of construction | Labour Commissioner | Before Construction period | ||||
| 12) Registration of workers pursuant to section 2-A of the Employees state insurance Act, 1948 , before construction or exemption to be claimed if other group insurance is taken. | Labour Commissioner | Construction period | ||||
| 13) Clearance for transportation of heavy material /machinery by ships, onroads/bridge | Relevant Authority | Project Implementation | ||||
| 14) Clearance from electrical inspector for electrical installation | Chief Electrical Inspectorate of GoG | Construction period | ||||