Investment Opportunities Port and Maritime Sector

Transcription

1 Investment Opportunities Port and Maritime Sector Gujarat Maritime Board January

2 Contents Gujarat Maritime Scenario... 3 Indian Port Sector... 3 Gujarat Port Sector... 4 Gujarat Maritime Board... 6 Introduction... 6 Vision... 6 Mission... 6 Objectives... 6 Gujarat Competitive Advantage... 7 Location Advantage... 7 Future Development of Ports in Gujarat... 7 Project Profiles... 9 Development of Greenfield Ports... 9 Development of Private Jetty Setting up of facilities for Container-on-Barge Services Free Trade and Warehousing Zone (Logistics Park) Development of LPG Terminals Industrial Port City Mechanization & Upgradation of Port Facilities Development Facilities for Shipbuilding and Repairs Marine Tourism including Cruise Tourism Development of Marine Emergency Response Centre (MERC) Technology Upgradation Ro-Ro/ Ro-Pax/Ferry Services Gujarat Maritime Cluster Gujarat Maritime University Development of Water Sports Facilities in Gujarat Shore to Ship Power Supply Approvals & Incentives Approvals Incentives Contact Information

3 Gujarat Maritime Scenario Indian Port Sector India is fast becoming the global epicentre of economic growth and external trade. It is currently the second fastest growing economy in the world after China. The maritime sector of India is intricately linked with its economic activity and maritime trade has been a critical contributor to the country s competitive position in the global trade. India has an extensive coastline of 7,517 km with around 95% of the country s external merchandize trade by volume and 70% by value, is transported through maritime transport. India has 13 major ports which are governed by autonomous bodies (except for Ennore) and about 200 non-major ports governed by State / UT Governments. The Indian ports and shipping industry plays a vital role in sustaining the growth in country s trade and commerce. The Indian Government plays a pivotal role in supporting the ports sector and has allowed Foreign Direct Investment of up to 100% under the automatic route for port and harbour construction, and maintenance projects. It has also facilitated a ten year tax holiday to enterprises that develop, maintain and operate ports, inland waterways, and inland ports. Major Ports of India with Traffic ( ) Indian ports handled cargo of 1,132 million tonnes with major ports handling 647 million tonnes in

4 Gujarat Port Sector Gujarat is one of the leading maritime states of India because of its strategic location with India s longest coastline of 1,600 km. It is the nearest maritime outlet of India to Middle East, Africa and Europe. The state ranks first in cargo throughput amongst all Indian ports. With 48 non-major ports in the State, Gujarat is the leader in number of operational ports in the country. In addition, it also has a Major Port (Kandla) which is one of the most competitive ports in the region. These ports are strategically located across South Gujarat, Saurashtra and Kutch regions. The state acts as a natural gateway to the rich land locked northern and central hinterland of the country, constituting 40% of the total Indian trade. The Gulfs of Gujarat, Kutch and Khambhat (Cambay), provide natural navigational safety and logistical advantage to any vessels entering its waters. Over the years, Gujarat has achieved major milestones in the port and maritime sector. Some of these achievements include: The first State in India to invite Private sector participation through competitive bidding The State with world s largest ship recycling yard at Alang The first State to announce a Port Policy The first State in India to have a dedicated Chemical Terminal The first private port of India Pipavav is in Gujarat The State also has one of the world s largest ship recycling yards at Alang The State also has first LNG Terminal established in Dahej Implemented India s most advanced Vessel Traffic Management System (VTMS) in the Gulf of Cambay and then Kutch The first State to announce a Shipbuilding Policy 4

5 Figure 1 Gujarat: Key Port Locations 5

6 Gujarat Maritime Board Introduction During the late 70s and 80s all the then existing major ports were having the monopoly over the sea freight and there was little or no port capacity with any of the State Governments. Under these circumstances, in 1980, Gujarat Maritime Board (GMB) was established by virtue of GMB Act GMB had the primary function of administration, control and management of non-major ports of Gujarat. It had to provide necessary facilities and carry out the necessary works which were required for the execution of the port. The traffic for GMB ports was merely 3% in This traffic has consistently increased over the years because of the various policies and interventions implemented by the GMB & Government of Gujarat on the whole. As of , Gujarat Ports handle 31% of the total national traffic. The share of the major ports during this period has fallen from 94% to 55%. Gujarat s share, however, in this period has increased to 71% of the traffic for non-major ports of India. Over the last three decades, GMB institutionalized the concept of integrated port led development. This concept was focused primarily on the development of the minor ports and it was supported by last mile road/rail connectivity. This was effectively implemented by bringing in the right private partners and forming private jetties, captive jetties, private ports and other ports through various models of development. Vision To capture the strategic advantage of India s longest coastline Gujarat is endowed with; develop maritime infrastructure, facilities & services comparable with global standards and to place Gujarat prominently on the international shipping map Mission To sustain, facilitate and excel in developing multipurpose port and logistic facilities and shipping related industry via its competent services and timely infrastructure development Objectives To maximize coastal benefits and strategic advantages of Gujarat Ports To capture maximum traffic at Gujarat Ports and enhance container traffic at GMB Ports To further strengthen its role in liquid and bulk cargo container traffic at GMB Ports To develop Gujarat as a Shipbuilding/Repair Hub To promote various other port led development as Ro-Ro Ferry Terminal services, Jetty Services, Marine Tourism, Logistic Parks To provide services, property and infrastructure support that will promote private investment To ensure and protect ecological balance and safeguard social and environmental issues To bring innovation and implement latest technology at all ports To ensure safety and security at all levels of operation 6

7 Gujarat Competitive Advantage Location Advantage Gujarat has achieved the distinction of being one of the most industrially developed states. Accounting for 5 percent of the total Indian population, Gujarat contributes about a quarter to India s goods exports. The Gross State Domestic Product (GSDP) of Gujarat increased at a CAGR of per cent between and to reach INR trillion during Moreover it has a good Ease of Doing Business environment with ease in setting up a business, Gujarat has ranked 5 th in Ease of Doing Business as per current DIPP report allotment of land and obtaining a construction permit. The utility services like water services and power are also well developed in the state. One of the major advantages that the State of Gujarat faces is its strategic location. It is located on the west coast of India and is well connected to the major cities of the world by air and sea routes. It is the nearest maritime outlet to Middle East, Africa and Europe. The State has 48 non-major ports with the highest number of operational and commercial ports. While considering the maritime traffic, Gujarat ports account for 40% of the total national traffic. This is more than any other State in the country. Moreover, the non-major ports of Gujarat constitute 31% of the share of national traffic. The non-major ports of Gujarat handled 346 MMT in which was 71% of the traffic for non-major ports of India. While considering growth, the traffic at GMB ports has increased at a CAGR of 10% from till date, while the major ports have registered a CAGR of only 2% in the same period. The private ports have registered the most growth in this period, growing at a CAGR of about 14%. Other than the traffic, Gujarat has an enabling policy and regulatory support for any projects related to port and maritime sector. India s most advanced VTMS is operational in the Gulf of Cambay and Kutch. The State has attracted a cumulative private investment of INR 37,445 crores from till date. All the ports of Gujarat are well-connected through a network of roads and rails. The airport connectivity to the ports is also very good. Future Development of Ports in Gujarat The Government of Gujarat through Gujarat Maritime Board is focusing on the development of the Ports and Maritime sector of Gujarat. As per Sagarmala, the capacity of Gujarat s non-major ports is expected to reach 864 MMT by the year This is 52% of the total capacity enhancement at all non-major ports of India. 7

8 For this purpose, there are plans to develop Greenfield ports as well as expansion of existing ports to reach the targeted capacity. The Government of Gujarat has successfully launched the first of its kind of RO-PAX ferry services between Gogha and Dahej in 2017 (Phase I). The Phase II of the project was inaugurated in October There are also plans to expand the RO- PAX ferry services between various locations in Gujarat such as Hazira, Porbandar, Okha, Mundra, Pipavav and out of Gujarat such as Mumbai. In other projects, the Government of Gujarat has also planned to develop a Greenfield port city at Mundra. GMB intends to implement an Integrated Port Management System (IPMS) for a robust IT connectivity between ports. There are plans to develop a service based Maritime Cluster in Gujarat. GMB is also planning to develop maritime education and maritime skill set through establishing a University in the State. The Government is also planning to make Gujarat the leading shipbuilding destination in South Asia. It is also focusing on increasing the coastal shipping and coastal cargo movement in the State and also to other States of the country. 8

9 Project Profiles Development of Greenfield Ports Gujarat, situated on the western coast of India, is a principal maritime state endowed with favourable strategic port locations. GMB under its Port Privatization Model has been actively promoting and developing greenfield ports through private sector participation. The Gujarat Infrastructure Development Act 1999 further created the legal environment and framework within which private investment can flow to the State. Potential Locations: GMB has already identified three potential locations - Mithivirdi, Vansi-Borsi and Modhva, to be developed as all-weather direct berthing ports for development under PPP model of port development. Economic Potential: The proposed sites have draughts of about 13 to 15 meters and cargo handling capacity of up to 10 million tons per annum. Mithivirdi, Vansi-Borsi and Modhva have excellent road connectivity with major markets through national and state highways and are within 40 km vicinity from major railway nodes Bhavnagar, Navsari and Mundra respectively. Mithivirdi The port at Mithivirdi is expected to cater to the Dholera Special Investment Region (DSIR), spread over an area of 920 sq kms. Vansi-Borsi o Mithivirdi Port, at a distance of the about 100 kms from the DSIR, is accessible via the Gujarat State Highway 6 and Gujarat State Highway 37 (along with Bhavnagar Pipali Highway). o The total industrial area of 11,000 Ha which is planned to be developed at DSIR will house industries like Cement, Heavy Engineering, Automobile and Auto Ancillary Industries, Furniture, Ceramics & Toiletries, Machinery, Agri & Allied Products, Metallurgical Products Logistics and General Manufacturing; which in turn will have the potential to generate huge cargo. The port at Vansi-Borsi will primarily be catering to industries located in South Gujarat and Western Madhya Pradesh which forms the primary hinterland for the port. The industrial belts to which the port would cater to would be: o South Gujarat: (Vadodara-Ankleshwar; Bharuch-Dahej; Surat-Navsari; Valsad-Umargam) 9

10 o West Madhya Pradesh: (Indore Pithampur Kheda Meghnagar; Bhopal Mandideep Pillukhedi Babai Pararia; Ujjain Maksi Dewas) Proximity to the proposed western Dedicated Freight Corridor (DFC), will attract large volumes of cargo of North India currently handled by the congestion hit major port Jawaharlal Nehru Port Trust (JNPT). The commodities identified as potential traffic for Vansi-Borsi include Containers; Liquid Bulk (Crude, POL products, liquid chemicals, edible and other vegetable oils), due to its proximity to chemical clusters; Dry Bulk (Coal, Fertilizers and Fertilizer Raw Materials, Cement, etc.); Break Bulk; Ro-Ro; Project Cargo. Modhva The port will have the biggest advantage of being located close to India s largest multipurpose private port, Mundra. Modhva port will enjoy logistics advantage in accessing the North Western hinterland of India, thus, catering to cargo hubs functioning in the Northern and Western states of India. The port can be developed to cater to Panamax / Cape size bulk carriers. The commodities identified as potential traffic for Modhva include coal, fertilizers, minerals, agri-products, break bulk (timber, steel & project cargo), etc. Government land is available to develop sufficient back up area for the port. Role of Private Party: Both these locations are proposed to be offered to private investors for development as private ports on Build, Own, Operate and Transfer basis (BOOT). Role of Gujarat Maritime Board: GMB will provide waterfront and facilitate the private players in obtaining approvals and statutory clearances associated with the project. 10

11 Development of Private Jetty GMB under its Port Privatization Model has been actively promoting and developing private jetties which are granted permission for a lease period varying from 5 to 25 years depending on investment with the following general guidelines of privatization: Incomplete works of wharf/jetty/quay of GMB Privatization of construction of new wharves/jetties at selected sites Installing modern mechanized handling system Potential Location: 150 meters waterfront at Rozi Pier, Bedi is proposed to be developed by private investment. Rozi is an anchorage port with a 400 meter jetty and 100 meter wharf. Economic Potential: Access to excellent port infrastructure: Maximum draught at Bedi anchorage is close to 16 meters. Barges at Rozi pier operate round the clock. Commodities handled: Import - Fertilizer, Rock Phosphate, Coal, Corn, Soya Meal, Crude Soyabean Oil, Bulgar Wheat, Green Peas, Dates, Refined Vegetable Oil, RBD Palm Oil, Crude Palm Oil, Rock Salt and Pig Iron Export: Soyabean ext., Rapeseed., Bauxite, Guargum, Cement, Wheat, Castor oil, Castor seed, Pet coke, Clinker, Rice, Sugar Excellent Road and Rail Connectivity: The port is well-connected with NH 8, which is 12 km away from Bedi Port. Nearest Broad Gauge (BG) line is at Jamnagar which is about 10 kms from the port. Setting up rail infrastructure at Old Bedi (2.53 km siding), New Bedi (7.7 km siding) & Rozi Pier (9.82 km siding) is being taken up in the near future. Proximity to Jamnagar: The district has a significant industrial presence in Brass, Petrochemicals, Mineral based industries, Cement and Fertilizer sectors in addition to two major petroleum refining complexes developed by Reliance Industries and Essar Group (now Rosneft). Proximity to Kandla/ Mundra: If adequate cargo handling facilities are developed at Rozi, significant distance, time and cost advantage could be achieved thereby saving transporting cargo through Kandla or Mundra port 11

12 Conducive Government Support: Gujarat is the first state to privatize the development of ports in the country and has presence of 10 operational private jetties and 4 private ports Role of Private Party: The 150 meters waterfront at Rozi Pier, Bedi is proposed to be offered to private investors for development as private jetty on Build, Operate and Transfer basis (BOT). Role of Gujarat Maritime Board: GMB will provide waterfront and shall facilitate private players in obtaining approvals and statutory clearances associated with the project. 12

13 Setting up of facilities for Container-on-Barge Services Container-on-Barge (COB) Services includes collecting shipping containers from nearby regions, stacking containers on the barge and transporting them to central container terminals and vice-versa. Potential Location: Container-on-Barge (COB) Services are proposed to be developed for coastal shipping to transfer cargo from ships/ vessels to ports or from ports to anchorage points using barges. Gujarat has two natural gulfs viz. - The Gulf of Khambhat and the Gulf of Kutch, comprising a large number of nonmajor ports. Coastal shipping can be increased at these non-major ports using the COB services. The major container hubs of Gujarat are Mundra, Pipavav and Hazira. The COB services can be set up in the vicinity of these hubs, so as to cater to the movement of containerized cargo. Economic Potential: Demand for container on barges is directly proportional to growth in coastal shipping wherein Gujarat s non-major ports have been at the forefront, handling close to million tonnes in There is a huge potential for coastal shipping within Gujarat through container on barges; especially to cater to Saurashtra hinterland market for supplies like ceramics from Morbi cluster, agri commodities, engineering parts from Rajkot cluster, vehicle transport etc. Government of India has pledged support to boost the coastal shipping through initiatives like : reduced GST for bunker oil for coastal shipping, substantial discounts (40-80%) on cargo and vessel related charges, priority berthing to coastal ships without any charge, relaxation in cabotage for coastal movement of EXIM transhipment and empty containers/ agriculture, horticulture, fisheries and animal husbandry commodities/ fertilizers by foreign flag vessels, issuing coastal shipping rules for coastal vessels operating within 20 miles off the coast; bringing abatement of service tax at 70% for coastal shipping at par with road and rail; and simplification of customs procedures. Role of Private Party: Development of new port facility(ies) along the coast of Gujarat to facilitate COB Service through Build-Operate-Transfer (BOT) model Using existing GMB Jetties to facilitate COB service as a service provider in procurement of Container Handling Equipment such as: Spreader(s) to be used with cranes for container loading / unloading Reach Stackers for backup operations Towage and Barge Operating Services 13

14 Role of Gujarat Maritime Board: Gujarat Maritime Board will support the private player in conceptualizing and developing the project on PPP basis, and shall provide assistance in seeking approvals and incentives as announced by the Government of India and Government of Gujarat from time to time. 14

15 Free Trade and Warehousing Zone (Logistics Park) The Free Trade Warehousing Zone (FTWZ) is a special category of the Special Economic Zones (SEZ) and is governed by the provisions of SEZ act and rules. The FTWZ is designated as deemed foreign territory which is envisaged to be integrated zones and used as international trading hubs. The various facilities in FTWZ include : Customized categorized warehouses, Office Space, Dry Cargo, containerised, break bulk facilities, Over Dimensional Cargo Yard, Enhanced transportation facilities, Controlled temperature warehouse, Support facilities such as medical centres, canteen etc. Potential Location: Development of Free Trade and Warehousing Zone (FTWZ) could be considered in Jamnagar and Magdalla (near Surat). These FTWZ could be integrated with Internal Container Depot (ICD) / Central Freight Station (CFS) Services. Economic Potential: With the implementation of GST, the Indian logistics market is expected to reach about USD 215 billion in 2020, growing at a CAGR of 10.5 per cent1. FTWZ concept revolves around providing a world class, single window solution for multiple logistics activities that saves costs in overall supply chain Ready Market: Surat has significant industrial presence in Textile, Chemicals and Petrochemicals, Dyeing & Printing, Diamond Processing, Engineering while Jamnagar has a significant industrial presence in Brass, Petrochemical, Refinery, Mineral based industries, Cement and Fertilizer. Both the centres are major export centres and have access to excellent port infrastructure Strategic Location: Gujarat acts as a gateway to northern and central hinterlands of India through a strong rail, road and air connectivity thus providing immense trade opportunity. Port Infrastructure: State has the highest number of operational ports and commercial cargo ports which handles approximately 40% of nation s maritime traffic DFC & DMIC: 38% of the entire length of the Dedicated Freight Corridor (DFC) passes through Gujarat while project influence area of Delhi Mumbai Industrial Corridor (DMIC) covers nearly 62% of the area of the State Policy Support: 100% FDI under the automatic route for all logistics except air cargo and courier services; Government of Gujarat has accorded industry status to logistics; The companies developing FTWZ will stand to leverage on multiple incentives and scheme to attract foreign investment and to encourage the logistics, trade and warehousing sector 1 Economic Survey

16 Role of Private Party: The FTWZ/ Logistics park project are usually developed through a PPP model. Under PPP model, it can be developed either by Build, Own, Operate and Maintain (BOOM) method or by Joint Venture method. Both the models are feasible for implementation. Role of Gujarat Maritime Board: It is proposed the developer will identify and acquire appropriate land near Magdalla and Jamnagar, GMB will facilitate the implementation of the project. 16

17 Development of LPG Terminals Gujarat has attracted significant investments in Liquefied Petroleum Gas (LPG) import infrastructure. The state has LPG import infrastructure at Sikka, Porbandar, Dahej, Pipavav, Kandla, and Mundra. Potential Locations: The potential locations for LPG infrastructure could be the non-major ports along its 1600 km long coastline, which is under the jurisdiction of Gujarat Maritime Board. The port facilities could be jetty/ wharf/ pier or alternatively offshore facilities like LPG Floating Storage & Off-loading (FSO) / Catenary Anchor Leg Mooring (CALM) buoy. The allied infrastructure could be pipeline from offshore facilities to land fall point to onshore terminal. Economic Potential: India is the world s second largest importer of LPG after China and has imported close to 12 million tonnes in FY 17, primarily driven by domestic sector. About 50% of India s LPG consumption is met through imports as India s LPG production capacities (through refining and fractionation) is insufficient to meet the burgeoning demand. Considering the slow capacity addition in LPG domestic production vis-à-vis the exponentially growing consumption, India will have to rely heavily on LPG imports in the decades to come. Government initiatives like Pradhan Mantri Ujjwala Yojana (PMUY), an INR 8000 Crore scheme which aims at providing five crore LPG connections to BPL households as well as Rajiv Gandhi Gramin LPG Vitran Yojana (Rajiv Gandhi Rural Distribution Scheme) will further augment the demand for the fuel. According to Petroleum Planning and Analysis Cell (PPAC), LPG demand is projected to touch 30 million tonnes by the next five years. Gujarat has the country s best LPG evacuation infrastructure with robust road and rail connectivity to the ports, a healthy density of LPG bottling infrastructure as well as cross-country LPG pipelines like Jamnagar-Loni Pipeline (1270 kms) and proposed Kandla-Kanpur pipeline (1987 kms), through which LPG imported at Gujarat could be transported to huge demand centres at northern hinterland. Role of Private Party: A firm/company, Joint Venture or consortium of Indian or Foreign origin, possessing financial and managerial capabilities of Port Development, Port Management, stevedoring export/ import trade and/or captive cargoes, and marketing of petroleum products could invest in the development of port facilities for handling LPG through private investment on private jetty (BOT) model. 17

18 Role of Gujarat Maritime Board: Gujarat Maritime Board will allot the waterfront to potential private investors. It will facilitate the investors in ease of doing business aspects including assistance in obtaining approvals and other statutory clearances. 18

19 Industrial Port City Smart Industrial Port City is being driven by the Government of India through the Ministry of Shipping that endeavours to create a smart city around every major port of the country such as Kandla and Paradip. Potential Location: A similar concept is adopted by the Government of Gujarat and Gujarat Maritime Board is planning to develop a Smart Industrial Port City at Mundra and Pipavav. The port at Mundra is strategically situated on the international maritime routes and it provides multiple benefits for global trade. It is located in the Gulf of Kutch which acts as a natural shelter for the port, facilitating all time safe berthing, unberthing and vessel operations. Moreover, Mundra Port enjoys logistical advantage in reaching the North Western hinterland of India. This makes it the preferred port for the cargo hubs functioning in the Northern and Western States and Union Territories of India. Moreover, many industries are present in the Kutch region of Gujarat and there is potential for development of more. Thus, Mundra becomes a model location for the development of a Smart Industrial Port City. The port of Pipavav was the first private port of the country. It is operated by APM Terminals, which is one of the largest container terminal operators in the world. Just beyond the port s immediate hinterland are the Northwest markets of Rajasthan, Delhi, and Punjab. Thus, the port becomes another potential location for the development of a Smart Industrial Port City. Economic Potential The Smart Industrial Port city would seamlessly integrate the Smart City concept with port cities to bring in more industrialization in these areas. This will result in supporting the labour and increase employment in such areas. The smart city would be self-sustainable with clean and green environment, disciplined development, responsiveness to people s needs, planting of substantial green cover to mitigate rising carbon dioxide levels and have an urban island effect. The mitigation of carbon footprint will involve smart street lighting, incentivising the use of renewable energy sources like solar and wind energy. Recycling of goods will also be incentivized. The city will have e-governance links, international standard facilities, special economic zones, ship breaking and building centres besides other allied industries. A private player developing this city would help develop the coastal town or village into a smart sustainable city which would benefit not only the private player but also the State. Role of Private Party The private party will develop the Industrial Port City on PPP basis. The land is already owned by Adani group. The private player can help develop the following in the smart city: 19

20 Residential and Commercial buildings Healthcare Institutions IT Infrastructure Energy and Utilities Infrastructure Roads and other Connectivity Infrastructure Role of Gujarat Maritime Board GMB will provide assist the private players in obtaining approvals and statutory clearances associated with the project. 20

21 Mechanization & Upgradation of Port Facilities Constantly increasing volume of global trade and the inflow of economic activities towards India and the State have reinforced the need for advanced and efficient infrastructure facilities at the State s ports. Potential Location: To enhance the port capacity at Navlakhi, Okha, Porbandar, Bhavnagar and Magdalla, mechanization is proposed, which effectively eliminates the conventional and less efficient methods (unloading of dry bulk cargo at jetty and from jetty to stacking yard or wagon transported via dumpers). These ports are selected based on available area and future demand. Following components should be incorporated in the proposal: Cargo unloading from ship or barge to jetty or mobile hopper Mobile hopper to truck loading Mobile hopper to stacking area through conveyor Stacker-Reclaimer Wagon or tuck loading In addition, dust suppression systems should be installed to reduce air pollution from handling dirty cargo. All the five ports are all-weather, non-major intermediate port handling dry-bulk cargo, owned and managed by Gujarat Maritime Board and connected to the rest of India by broad gauge railway system and National Highway that helps to cater cargo requirement of nearest Industry as well as major city and nearest states. 21

22 Economic Potential: The total cargo handled by the identified ports in , including the commodities handled are: Magdalla: Lakh Tons, Commodities Exported: Naphtha, HR Coils and Steel, Commodities Imported: Iron Ore, Coal, Naphtha and Cement/ Clinker Navlakhi: Lakh Tons, Commodities Exported: Salt, Commodities Imported: Coal Okha: Lakh Tons, Commodities Exported: Bauxite, Commodities Imported: Coal, Limestone Bhavnagar: Lakh Tons, Commodities Exported: Oil Cakes, Salt, Scrap, Onions, Clay and Rape Seeds, Commodities Imported: Rock Phosphate, Coal & Coke, Fertiliser, Iron Scrap & Sulphur, Wood & Timber Porbandar: Lakh Tons, Commodities Exported: Bauxite, Cement/ Clinker, Commodities Imported: Coal, LPG and Limestone Deployment of mechanized equipments for handling bulk cargo helps improve efficiency parameters like faster ship turnaround time, and also prevents cargo contamination and related environmental issues. Mechanization also helps in lowering the berth occupancy time so that more vessels can be handled at the same time, thereby achieving maximum possible evacuation rate. Role of Private Party: Port mechanization project are usually funded through a PPP model, in which private players can charge operating charges per ton of cargo handled. The private player will be responsible for Procurement, Installation, Operations & Maintenance. Role of Gujarat Maritime Board: The mechanization project at Port has been planned & shall be developed by Gujarat Maritime Board on a standalone basis. 22

23 Development Facilities for Shipbuilding and Repairs Gujarat is emerging as a hub for global shipbuilding indusry with huge investments pouring in, making it the only state in the country to have a cradle to graveyard concept for the ships. GMB wants to promote shipbuilding and repair yards by adopting a cluster based (Marine Shipbuilding Parks) development plan. Potential Location: The potential locations identified for developing ship building parks along Gujarat s coast are Dahej, Bhavnagar, Navlakhi and Mandvi. The new shipbuilding and repair yards could also be set up within port limits of existing GMB group of ports, private ports or on standalone basis along the coast of Gujarat. Economic Potential: Gujarat, which accounts for nearly 60% share in Indian shipbuilding order books, is emerging as a new destination in South Asia with a number of projects in the pipeline Presently, Gujarat has nine existing shipbuilding yards (capacity of ~1 million DWT) and five under implementation. Government of Gujarat had announced the Ship Building Policy, 2010 to encourage shipbuilding as well as allied industries. Global shipbuilding demand is expected to go up (around 150 million DWT by 2025 and 300 million DWT by 2035). This will lead India and in turn Gujarat s ship building and repair industry to witness strong growth. Government of India has granted infrastructure status to the shipyard industry for promotion of ship building and ship repair in the country. Advantage Gujarat:- Configuration of the coastline with two gulfs, Gulf of Kutch and Gulf of Khambhat, offering naturally protected locations High tidal range in Gulf of Khambhat offers benefit of tidal window thereby reducing dredging needs for shipyard operations Existence of ancillary industries to supply steel plates, machineries, equipments and other petty items required for shipbuilding Gujarat ports being one of the busiest in the country, handle a huge number of vessels on a daily basis, creating a natural demand for Repairs Lower labour cost and ease in availability Role of Private Party: Shipyards can be developed and operated by private players through Built Operate Transfer Model (PPP). Role of Gujarat Maritime Board: GMB will assist the private developers for getting clearances and other statutory approvals. The waterfront will be provided for development on a long-term basis. 23

24 Government has also taken initiative to establish/ upgrade training institutes to provide training for specific skill required for the Ship Building Industry. 24

25 Marine Tourism including Cruise Tourism Generating revenue by using existing and future assets such as, port premises, light houses, waterfront for tourism activities Potential Locations: Beach Development: Beaches like Shivrajpur, Positara, Sarkheshwar, Dandi, Tithal, Umergaon, Dumas, Somnath, Porbandar, Okhamadi, Ahmedpur-Mandvi and others can be explored for development to promote beach tourism. Cruise Tourism: Cruise tourism could be explored along the long coastline with special focus on Porbandar, Dwarka, Somnath, Ahmedpur-Mandvi, Kutchh- Mandvi. Surat-Somnath-Porbandar-Dwarka-Mandvi-Surat could be developed as a cruise tourism circuit. Terminal related infrastructure development would entail Berth development, Terminal Building construction, construction of passenger lounge, crew lounge, embarkation balcony and other amenities Economic Potential: Growth drivers for marine tourism including cruise tourism A robust Tourism Policy for Gujarat is in force GoG has accorded industry status to tourism sector with priority to Cruise industry: Loan interest subsidies, concessions in taxes and other duties More than 20 pristine beaches identified by Tourism Department Cruise tourism has seen immense growth in the last decade and is expected to grow at a CAGR of ~ 10% upto Tourist influx to Gujarat has grown by a CAGR of ~15% during the period FY Gujarat is amongst the top 5 states in Ease of Doing Business excellence Role of Private Party: A firm company, Joint Venture or consortium of Indian or Foreign origin could develop the beach infrastructure and/or cruise terminal and allied infrastructure for cruise tourism through private investment (BOOT) model Allied avenues of Investment : Water sports, tours to destinations with guide, local cuisine, guided tours of heritage sites, cultural programs, panelled luxury hotels for retiring in between destinations, and on demand medical support Role of Gujarat Maritime Board: Gujarat Maritime Board (GMB) will allot the waterfront to potential private investors. Other facilities for passenger cruise to be offered by GMB are walk-in-berthing, assured quality bunkers, fresh water services, and grey water reception. 2 Asia Cruise Trends

26 It will facilitate the investors in ease of doing business aspects including assistance in obtaining approvals and other statutory clearances. 26

27 Development of Marine Emergency Response Centre (MERC) Setting up of Marine Emergency Response Centre is pertinent in order to mitigate the risk the Gujarat coast may face in event of disasters like fire, cyclone/tsunami, earthquake, oil spill, chemical handling accidents, security and other situations. Gujarat already has a fully equipped MERC at Portbandar. Potential Location: MERC could be established in vicinity to the ports along Gujarat s coast in order to cater to both Gulf of Kutch and Gulf of Khambhat. Economic Potential: Establishment of a MERC on Gujarat coast is critical owing to the following factors: Gujarat has 49 ports (1 major and 48 non-major) spread across its 1600 km long coastline, which handle more than 40% of India s maritime trade. About 12,297 ships were called at the non-major ports under GMB in Gujarat coast which handles huge quantum of crude, POL and chemicals has high probability of an event of oil spill or marine/chemical accident. Gujarat ports handled 15 MMT of crude and POL as well as 5.8 MMT of bulk chemicals (pharmaceutical, industrial) in Moreover, the state has presence of nineteen active ports and around 62 jetties, several oil and gas storage infrastructure and large number of chemical and petrochemical industries along the coastline Presence of defence bases at locations like Okha, Porbandar, Koteswar, Mundra etc. Gujarat coast is in the most severe seismic Zone (Zone-V) of India and has encountered severe cyclones in the past. Central and state Government s policy support for oil pollution control Large scale fishing activities across various Gujarat ports Role of Private Party: MERC can be developed and operated by private players who have land in vicinity to ports. If land is required in ports vicinity for MERC, the private players will be selected through competitive bidding. Role of Gujarat Maritime Board: GMB will assist the private developers for getting clearances and other statutory approvals. The waterfront and/or land may be provided for development on a long-term basis. 27

28 Technology Upgradation Potential Locations: In line with anticipated expansion of port facilities and growth of port traffic, Gujarat Maritime Board has identified few opportunities, one of which is the use of Information and Communication Technology to improve organizational efficiency, enhanced stakeholder satisfaction and lower organizational costs. To this effect, GMB has envisioned implementation of an Integrated Command and Control Centre for centrally monitoring and optimizing ship recycling operations at Alang, the world s largest ship recycling yard. Economic Potential: World s largest ship recycling yard, Alang in Gujarat, oversees ship dismantling for almost 32% of the world s vessels. Located on the Gulf of Khambhat over a hundred yards along the beach, Alang has dismantled over 6900 vessels during the last three decades. With GMB s pursuit to strengthen Gujarat s position as leader in Indian Maritime industry and alleviate the performance standards of GMB regulated non-major ports and ship recycling yards, there prevails plenitude opportunities for Software Developers/ Vendors and Integrators to develop customized solutions for individual ports and Alang ship recycling yard. Role of Private Party: Implementation and maintenance / support of ICT based solutions at non-major ports and ship recycling yards. Role of Gujarat Maritime Board: Facilitating the deployment of ICT based solutions; Assist in obtaining requisite approvals / clearances. 28

29 Ro-Ro/ Ro-Pax/Ferry Services The presence of a long coastline (1600 kms) and two gulfs (Gulf of Khambhat and Gulf of Kutchh) in Gujarat creates ample opportunities to connect important centres through Ro-Ro/ Ro-Pax Ferry Services. These services have numerous advantages like: savings in travel time and fuel cost, wear & tear of vehicles and road surfaces, and reduction in road congestion and accidents. Coastal Shipping is also being promoted under Sagarmala initiative of Government of India. Government of Gujarat through Gujarat Maritime Board implemented the Passenger Ferry Service between Dahej and Gogha in October Expansion of these services for vehicular movement (RO-Pax), first-of-its-kind (in terms of size and capacity), commenced in November Gujarat Government is now keen to develop more such ferry services along potential routes with Gujarat s coastline, and also extend services to other Maritime States of India. Potential Location: Based on the success of Ro-Ro/ Ro-Pax Services between Gogha-Dahej, GMB now intends to initiate similar services from other potential locations of Gujarat and has planned to execute following projects: Development of RO-Pax terminal at Hazira Development of passenger ferry between Port Victor and Hazira Development of passenger ferry between Hazira and Mumbai Development of passenger ferry between Mandvi and Okha Development of passenger ferry between Gogha and Hazira Development of passenger ferry between Porbandar and Mumbai Development of Ro-Ro/ Ro-pax Ferry service between Kuvay (near Mundra) and Rozi (Jamnagar) The interested private investors/ developers may also suggest other potential routes and locations for developing Ro-Ro/ Ro-Pax/ Passenger Ferry Services. Economic Potential: Of the identified potential locations, Mundra handled 116 MMT in , Okha handled 4 MMT, Porbandar handled 2 MMT, Pipavav handled 9 MMT, Bedi (Rozi) handled 5.3MMT and Hazira handled 19 MMT of cargo. Currently about 11% of the total cargo of Gujarat ports is handled as coastal cargo. The 29

30 major commodities in coastal cargo include POL, cement & clinker, and HR coil. POL is shipped from Sikka to Dahej, Tamil Nadu and Maharashtra. Cement & clinker is shipped from Jafrabad to Magdalla and Maharashtra. HR coil is shipped from Magdalla to Maharashtra. Moreover, the major commodities in the identified locations include coal, coke, POL, containers, limestone, bauxite, LPG, cement & clinker, iron ore, naptha, HR coils and steel. This provides an opportunity for coastal shipping through the ferry. How will it work? Cargo will come to the terminal through the truck. There will be many such trucks coming from different locations. All these trucks will be loaded on to the ferry. The truck drivers will be seated on the ferry. The ferry will then take the truck with the cargo from one location to the other. Other than cargo, the normal passenger services with vehicles on board will also be carried out. Role of Private Party: In case GMB builds the related infrastructure, exclusive right to operate the facility shall not be accorded to any particular developer. The tariff fixation will be done solely by GMB. The operator shall have to pay the charges as published by Gujarat Government. In special cases, the Board upon its discretion, may exempt either wholly or partially any charges from the payment under Section 43 of GMB Act. In case the Ro-Pax terminal infrastructure is built by a private developer on Build-Operate-Transfer (BOT) basis, priority rights to operate such terminals shall be accorded to the private operator. Other operators shall be served on First-Come-First Serve basis. Tariff fixation rights shall be accorded to the private developer. In such cases, royalty charges shall be collected by GMB. Role of Gujarat Maritime Board: GMB will provide waterfront and assist the private players in obtaining approvals and statutory clearances associated with the project. GMB will make the land available to the investors for Terminal or Facility development. GMB will also be monitoring the progress of the project. GMB may also examine the possibilities to utilize its existing infrastructure to accommodate the ferry operations at the given port location. In cases where existing infrastructure cannot be used, GMB shall examine the possibility of creating the infrastructure which shall be used as common infrastructure. 30

31 Gujarat Maritime Cluster Gujarat Maritime Cluster is India's first complete ecosystem of ports and shipping services on the lines of the ones that exist in leading maritime nations. The cluster envisions to be a one-stop solution for all maritime services while attaining economic growth, employment generation and industry-academia confluence in the region. Potential Location: Gujarat Maritime Board has initiated the development of India s first maritime services based cluster at GIFT City, Gandhinagar - country s first operational smart city and only International Finance Services Centre (IFSC). Gujarat Maritime Cluster intends to house maritime related service providers along with regulators ensuring Ease of Doing Business for these service providers (cluster participants). Economic Potential: Maritime trade from Gujarat is projected to increase exponentially backed by economic development projects like DMIC, SIR, PCPSIR, etc. along with Central Government programs like Sagarmala, Make in India and others. Despite the fact that Gujarat handles far more cargo throughput than any other state in India, it does not have the soft infrastructure like ship finance, chartering, ship brokering etc. in place to complement the hard infrastructure that Gujarat Maritime Board (GMB) has created for facilitation of the trade. Hence the cluster is envisioned to emerge as a centre for excellence for maritime services hosting world leaders of the trade and promoting innovation, quality and integrity. The companies setting up operations will stand to leverage from the following:- First maritime services based cluster in India Supported by the Government Taxation and Fiscal Benefits applicable to GIFT IFSC and SEZ Proactive Policies by State Regulators Proximity to the epicenter of action Gujarat is the biggest maritime player in the country Support in Ease of Doing Business proximity to regulators and policy makers Excellent connectivity to major cities, ports, ICDs and support infrastructure Unparalleled building and utilities infrastructure in India State-of-the-art social and commercial infrastructure including Gujarat s first premier club Vicinity to the proposed maritime university will augment industry-academia confluence 31

32 Role of Private Party: The private parties can set up their operations and avail membership benefits of Gujarat Maritime Cluster. Role of Gujarat Maritime Board: GPIDCL, a 100% subsidiary of Gujarat Maritime Board (GMB) will be the nodal agency for implementation of the project. GPIDCL will facilitate the investors in registering and setting up operations in the cluster, in availing the eligible benefits and support in ease of doing business aspects. 32

33 Gujarat Maritime University Potential Location: The Indian Maritime sector has been consistently exhibiting strong growth and is slated to be the maritime market of the future. The establishment of Gujarat Maritime University (GMU) is an endeavour by the Gujarat Maritime Board to provide a fillip to this growth by bridging the knowledge gap within the industry. The Gujarat Maritime Board is establishing GMU at Gandhinagar, Gujarat under the Gujarat Private Universities Act, Economic Potential: The prime objective of the University is to be a global centre of excellence in maritime education, research and development, professional training with an aim to enhance the capacity of maritime industry both in India and across the globe. The aspiration is to serve the global maritime community by producing educated and well trained individuals. Indian Maritime Education institutes are largely focused on technical programs which is in sharp contrast with Global Maritime Education Trends. A majority of the programs offered by the current maritime education institutes cater to the technical job roles in the industry (majority deck officers and marine engineers through programs in Marine engineering, Nautical science and training/certification programs for merchant navy). It is estimated that approx. 92% of all the programs offered by the maritime education institutes in India are focused on these technical job roles. However, only 8% of the intake capacity is from programs focused on commercial areas such shipping and logistics, maritime business, maritime law, chartering and other commercial areas within the maritime sector. A comparison of focus areas of Indian and Global Institutes highlight that global institutes focus on a wide range of areas within the commercial sectors. On the other hand, very few institutes in India have programs focused on commercial areas. Huge demand supply gap of qualified manpower in commercial sectors and low focus of the current maritime education institutes in the country on commercial areas make a strong case for setting up a Maritime University focused on commercial areas. In the initial phase, the University plans to offer programs catering to the commercial aspect of Maritime value chain, viz. Maritime Law, Ship Broking Financing, Port Operations and Shipping Management etc. and aims to achieve global standards in Maritime Education. Role of Private Party: Gujarat Maritime University is looking for strong Industry and academic association with leading global Maritime players. Some of the key collaborative opportunities envisioned for GMU are as follow: Governance: Representative in the relevant committee of studies / board of management as a special invitee 33

34 Curriculum Development and Delivery: Expert visits for interactive sessions such as panel discussions, guest speaker talks, educational tours, industry immersion programs Deliver talks and workshops on emerging topics and latest developments and assistance in introduction of new programs Provide the inputs specific to Maritime Industry Faculty Development: Experts from the Industry and Academics in Maritime conduct courses with faculty at GMU and Support the faculty development programs Corporate Sponsorship: Range of benefits for the sponsoring organization Naming rights for the academic blocks/ departments/ labs/ Centers of Excellence Research and Consultancy Services from the University Placement participation on priority MDP and EDPs for the staff Training and Research: Provide inputs specific to maritime industry from time to time in validating course content and delivery mechanisms Provide access of its internal training program and curriculum. Provisions for higher studies, correspondence courses and short-term courses for eligible employees Organize customized training programs for an organization Collaborate with the faculty / research associate and supervisors at relevant department / center and provide problem statements for development and promotion of research activities Student Exchange and Placements: Support for student exchange program May take part in campus placement process May provide internship to students Role of Gujarat Maritime Board: Gujarat Maritime Board will be responsible for the overall development of the Maritime University in the State. 34