Ports Opportunities in India

An Expert's View about Ports in India

Posted on: 5 Oct 2010

The port privatisation policy announced by the Government of India in October 1996 offers a number of opportunities for British companies engaged in port consultancy, construction, management and turnkey contracts.

Sector briefing Ports Opportunities in India Why India? India has a coast line of over 7000 Kms with a maritime tradition dating back several centuries. It has twelve major ports under the jurisdiction of the central government and one hundred and eighty seven non-major ports which are controlled by the respective state governments. The port privatisation policy announced by the Government of India in October 1996 offers a number of opportunities for British companies engaged in port consultancy, construction, management and turnkey contracts. The general layout of the facilities in the older ports is outdated and the facilities are not suitable for modern cargo handling. There is ample scope to increase the capacity of existing facilities through modernisation and improvements in productivity and construction of new berths. The value of such projects would range from £2million to £700 million. Find general information on Indian market conditions on UKTI?s website. The Doing Business Guide for India gives an overview of India?s economy, business culture, potential opportunities and an introduction to other relevant issue UK Trade & Investment Sector briefing: Ports opportunities in India Current and future opportunities at various Opportunities major ports are as follows: ? Creation of exclusive berth for export of An expert group set up by the Government of cars at Mumbai port India (GoI) has forecasted overall port traffic to reach about 900 million MT by 2011/12 from ? A standalone berth for container 500m MT in 2006/07. For creation of additional handling at JNPT (Jawarhlal Nehru Port port capacity and the back up infrastructure to Trust) at a cost of Rs 6 Billion (£ 85 meet traffic projection targets, the Indian million). The port has re invited RFQs Government has announced a major Initiative and 8 parties have submitted their ? Rs 550 billion (£7 bn) ?National Maritime proposals. Development Project? (NMDP) on the lines of highly successful National Highway ? Additional Mega container Terminal at Development Programme (NHDP). The NMDP JNPT for a capacity of 4.4 million TEU. project, to be completed in the next 6 years, Bids are yet to be called for the project. envisages setting up of new ports, modernisation of the existing ones and ? Integrated Port facilities on PPP model connecting all ports with national highways. at Vadinar, a satellite port of Kandla The impact of the Government policy on ? Rollon/Roll off terminal at Chennai Port privatisation of ports and allowing 100% FDI for export of cars and Multi level car has been immediate. The sector has seen parking at Chennai Port to be built on significant levels of FDI from several PPP basis. The Chennai port has invited international port developers / operators. In tenders for preparation of feasibility 1999, the government awarded the first ever report. concession to P&O Ports on a 30 year Build- Operate-Transfer (BOT) basis for operation of ? The Chennai port plans to construct a the Nhava Sheva International Container Mega container terminal with a capacity Terminal at JNPT near Mumbai. P&O Ports (now of 4 million TEU?s on a BOT basis. The DP World) is the largest international investor project is awaiting clearance from Public in ports in India. The other major international Private Partnership Approval Committee companies operating in the Indian ports sector (PPPAC) include PSA (formerly port of Singapore Authority), Dragdos SPL of Spain, Port of ? Multi user Liquid Terminal at the Cochin Zebrugee Belgium, Scot Wilson Kirkpatrick Port SEZ on a PPP basis. The feasibility India Pvt. Ltd. and Dredging report has been finalised and Cochin International(Belgium).In addition major Port will shortly invite global bids. infrastructure companies from India such as L&T, GVK, Gammon, Hindustan Infrastructure, ? Container terminal at Ennore on a PPP IL&FS, Reliance, Adani and Marg are operating format. Although the project has moved in the Ports sector. from RFQ to RFP stage, some legal issues have cropped up and will move There are many UK companies operating forward only with the resolution of legal successfully in this market in the areas of port issues. consultancy, port management, material handling, port construction etc. ? Government of India has approved a dedicated container terminal at Kolkata The global financial crisis has impacted most port. Bids are likely to be invited corporates and investor sentiment. The impact shortly. however has been minimal on the Indian economy. The government is reviewing ? Deep sea port at Saugar Island at a cost projects and programmes in the area of of £950 million off the West Bengal infrastructure development, including both coast. The project is in EOI stage. public sector projects and PPP projects to ensure that their implementation is expedited ? Part Privatisation of operations both at and they do not suffer from the constraints of Kolkatta and Paradip have been funds. UK Trade & Investment Sector briefing: Ports opportunities in India approved and measures are afoot to Sdn Bhd of Malaysia. The total cost of implement them. development is estimated to be Rs 100 billion (£1.5 billion) Minor ports Maharastra Gujarat Maharastra state is developing Gujarat maritime board is developing nine Rewas(Reliance) and Reddi port through ports at Bedi, Modhva, Mithivirdi, Simar, Vansi private developers Borsi, Dahej, Sutrapada, Khambat and Mahuva. All these have been awarded to Characteristics of the market private companies on a 30 year lease. 75% of the cargo volumes in India are handled Kerala by major ports. As per ministry of Shipping statistics, the 12 major ports in India handle a total of 561Mmt of traffic in 2009-10 an The Kerala Government is on the look out for increase of nearly 6% over the previous year. consultants for development of three ports namely: Alappuzha, Beypore and Azhikkal. The ports will be developed on PPP model. The Port 2010 (mMT) consultants are required for preparing detailed Mumbai 54.54 Project Reports (DPRs), identifying the Private JNPT 60.74 partners and assisting government in achieving Visakhapatnam 65.50 technical and financial closures Ennore 10.70 Orissa Paradip 57.01 Kolkata Dock The state government of Orissa has awarded 46.29 (incl. Haldia) development of Dhamra port to a JV Dhamra Kandla 79.52 Port Company Limited (DPCL). The first phase Chennai 61.05 of the project is under construction. Kochi 17.42 Mormugao 48.84 Andhra Pradesh Tuticorin 23.78 New Mangalore 35.52 Phase I of the development of Krishnapatnam Port is complete. Under Phase II, the Total 560.91 Krishnapatinam company is expected to add 40mt capacity. The Government has agreed to The projections for the Eleventh Plan period handover the Machilipatnam Port to Navayuga (2007-2012) released by the Government of Engineering Company Ltd. of Hyderabad India gives huge impetus to the investment in (promoters of Krishnapatnam Port) Ports sector. Total investment is projected at Rs. 870 billion The Government has also identified (£11 bn) with 63% being invested in major Bhavanapadu, Kalingapatnam and Narsapur ports ports and balance in minor / non-major ports. for development under PPP model. Also it is estimated that 34% of investment in Karnataka major ports and 14% of investments in minor / non-major ports will come from public sector Karnataka is developing an all weather port at while private sector will have to invest rest. Karwar at a cost of Rs 100 Billion (£1.5 billion).The successful bidder will soon be If you have any questions on the opportunities announced above, contact the UKTI Ports contacts named in this report. Business opportunities aimed Pondicherry specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our The Karikkal port near Pondicherry is being staff overseas in British Embassies, High developed by Marg Constructions Ltd. Marg has Commissions and Consulates, across all sectors formed a SPV in the name of Karrikal Port Pvt. and in over 100 markets. Ltd. which has tied up with Pembinaan Redzai UK Trade & Investment Sector briefing: Ports opportunities in India You can be alerted to India/ports opportunities on a regular basis by registering on the UKTI UKTI contacts website. More on UKTI?s busines opportunities service Jayalakshmi Jayaraman Senior Trade & Investment Adviser Major events and activities British Deputy High Commission, Chennai Tel: (0091 44) 4219 2151 For details of future port related events in India Email: Jayalakshmi.Jayaraman@fco.gov.uk or in the UK please contact UKTI?s Ports Sector www.ukti.gov.uk Group Email: Jason.Castelino@ukti.gsi.gov.uk Sujith Thomas Trade & Investment Adviser British Deputy High Commission, Chennai Find full details of all India ports events Tel: (0091 44) 4219 2151 on the UKTI website. New export events are Email: Sujith.Thomas@fco.gov.uk added daily to the site and you can register to www.ukti.gov.uk be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Ports opportunities in India Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Indian market are advised to you to meet contacts and promote your undertake as much market research and company in the Indian market planning as possible in the UK. UKTI?s team in India, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Indian market. wishing to enter or expand their business in overseas markets. This can include: To find out more about commissioning this ? Provision of market information work, or accessing other UKTI services and ? Validated lists of agents/distributors specialist advice, please visit the UKTI website ? Key market players or potential to find contact details for your local UKTI customers in the Indian market office. ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Ports opportunities in India
Posted: 05 October 2010

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