PORTS AND HINTERLAND CONNECTIONS

Transcription

1 PORTS AND HINTERLAND CONNECTIONS Erich L. Schwager Director Karl Geuther GmbH & Co. KG

2 Overview of the Presentation I. The Geuther Group II. III. IV. The Shipping Corporation of India Ltd. India General Facts Economy in India V. Seaports VI. Hinterlandconnections 2 LOGISTICS FORUM»MORE THAN CURRY«

3 3 LOGISTICS FORUM»MORE THAN CURRY«

4 THE GEUTHER GROUP Is a well known and respected group of companies in the German service industry The company was founded in 1958 Today the group comprises of more than 15 companies with about 250 employees throughout Europe 4 LOGISTICS FORUM»MORE THAN CURRY«

5 THE GEUTHER GROUP Transport / Logistic Daily trailer/container services Container operations and consulting Forwarding 5 LOGISTICS FORUM»MORE THAN CURRY«

6 THE GEUTHER GROUP Mail order Business Supply of tax free merchandise worldwide 6 LOGISTICS FORUM»MORE THAN CURRY«

7 THE GEUTHER GROUP Travel Agents and Tour Operators General agents for ferry services Tour operators Travel agents IATA/DER agents 7 LOGISTICS FORUM»MORE THAN CURRY«

8 THE GEUTHER GROUP Stevedoring and Warehousing Container Depot Storage and packing Ship repair Container/trailer maintenance and repair Stuffing and stripping Project handling Warehousing Ro/Ro stevedoring 8 LOGISTICS FORUM»MORE THAN CURRY«

9 THE GEUTHER GROUP Liner Shipping General-, port- and Inland agents Husbandry service 9 LOGISTICS FORUM»MORE THAN CURRY«

10 The Shipping Corporation of India Ltd., Mumbai 10 LOGISTICS FORUM»MORE THAN CURRY«

11 The Shipping Corporation of India Ltd. S.C.I. The Shipping Corporation of India was established on October 2nd, 1961, by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation Government Company Stock Listed Company 11 LOGISTICS FORUM»MORE THAN CURRY«

12 The Shipping Corporation of India Ltd. S.C.I. 12 LOGISTICS FORUM»MORE THAN CURRY«

13 SCI s Container Services SCI is the only shipping company in India which operates Exim Liner Global Trade Current Services : Indian Sub-continent Europe Service (ISES) INDFEX Service (EX-WCI TO Central China, S.Korea) INDEFX 2 Service (EX-ECI TO Central China, S.Korea) SMILE Service (Coastal-cum-feeder For WCI Plus Middle East Sector) East Africa Service (on slot-swap basis). WIN Service (on slot swap basis on INDFEX 2 Service EX-WCI TO Central China, S.Korea) CIX 2 Service (on slot swap basis on INDFEX Service EX-WCI TO Northern China) IPAK (on slot purchase basis) BREAKBULK Acquisition of Container Ships : Three new vessels of 6500 Teu (nominal capacity) scheduled for delivery during end Dec 12 till mid 2013 proposed to be deployed in ISES - Europe Service. Proposed 1 x 3500 Teu vessels, delivery schedule assumed during the second half of LOGISTICS FORUM»MORE THAN CURRY«

14 General Facts about India Republic of India Bharat (Hindi) Most populous and stable democracy in the world Parliamentary democracy, 28 federal states 1,2 Billion habitants Europe has 740 habitants Official languages are English and Hindi Seventh-largest country by area; 3,3 Mill. Km² 14 LOGISTICS FORUM»MORE THAN CURRY«

15 Geography of India Bounded by: Indian Ocean on the south, Arabian Sea on the south-west, Bay of Bengal on the south-east Shares land borders with: Pakistan to the west Bhutan, P.R. China & Nepal to the north-east Bangladesh & Myanmar to the east 15 LOGISTICS FORUM»MORE THAN CURRY«

16 Mentality & Cultural Habits Namaste as salutation a gesture of respect The society is dominated by men Men do not shake women s hands Left hand is regarded as dirty Gifts should not be opened in presence of the giver No is deemed to be impolite Mutual respect is very important in India 16 LOGISTICS FORUM»MORE THAN CURRY«

17 Indian Weddings Indian weddings are very filled with rituals and celebrations Vary across religion, caste, ethnicity, language, region, etc. Lasts up to 5 days In general ,000 attendees Mostly arranged weddings When the marriage has been agreed upon, the father of the bridegroom visits the father of the bride 17 LOGISTICS FORUM»MORE THAN CURRY«

18 Indian Weddings The wedding takes place in hotel halls or farmhouses Brides decorate themselves with jewellery & color their hands and feet Bridegrooms typical wear a designer suit Very cost-intensive (about 25,000 40,000 EUR) 18 LOGISTICS FORUM»MORE THAN CURRY«

19 Do you know Bollywood? Bollywood is the name of the Hindi-language film industry based in Mumbai 3 movies per day (twice as much as Hollywood) A film lasts between 2,5 4 hours A lot of dance scenes and music Mostly in Hindu- or Urdu-language 19 LOGISTICS FORUM»MORE THAN CURRY«

20 India s Economy Tenth-largest country by nominal GDP ( $1.848 trillion) Third-largest by PPP ($4.457 trillion) Member in several economic integration organizations ESCAP, Colombo-Plan, SAARC, Indian Ocean Rim Assn. 20 LOGISTICS FORUM»MORE THAN CURRY«

21 Economic growth in India still exceeds the international average... Source: CMIE JULY LOGISTICS FORUM»MORE THAN CURRY«

22 The GDP consists out of.. Service Industry Agriculture Source: CMIE JULY 2012 Source: CMIE July LOGISTICS FORUM»MORE THAN CURRY«

23 Chart development USD / INR 1 US$ = 54,27 INR / 30.Nov 2012 Source: yahoo.finance.com 23 LOGISTICS FORUM»MORE THAN CURRY«

24 Chart development EUR / INR 1 EUR = 70,54 INR / 30.Nov 2012 Source: yahoo.finance.com 24 LOGISTICS FORUM»MORE THAN CURRY«

25 Inflation in India ,4 6,5 4,8 8 3,6 9,9 8,8 7,9 2 0 Source: CMIE October LOGISTICS FORUM»MORE THAN CURRY«

26 Resources Agricultural resources: Cotton Spices Sugar cane Tea Mineral resources: Coal Iron ore Zinc Plumb Titan Petroleum 26 LOGISTICS FORUM»MORE THAN CURRY«

27 Export-Countries 10,67 4,15 6,11 USA Singapore Hong Kong UAE 11,42 56,75 2,48 2,59 3,04 2,79 Source: Belgium Netherlands Others Germany UK 27 LOGISTICS FORUM»MORE THAN CURRY«

28 Export-Goods Source: Others 40,36 % (e.g. Cars, Carparts) Fuels 17% Textile 10,9% Chemicals 10,7% Food 7% Iron and Steel 4,8% Machinery 4% Electricals 2,2% 28 LOGISTICS FORUM»MORE THAN CURRY«

29 Import-Countries 4,03 4,15 Nigeria USA 55,25 9,87 8,57 6,27 China UAE Saudi Arabia Australia Source: 2,79 2,69 6,38 Germany Others Switzerland 29 LOGISTICS FORUM»MORE THAN CURRY«

30 Import-Goods Source: Others 30,2% (e.g metal products) Fuels 26,4% Chemicals 10,3% Building materials 8,8% Machinery 6,9% Electricals 6,4% Iron and Steel 4,8% Machinery 4% 30 LOGISTICS FORUM»MORE THAN CURRY«

31 Balance of Import/Export Billion US$ Source: CIA Factbook Export Import 31 LOGISTICS FORUM»MORE THAN CURRY«

32 Ports Today Are dynamic nodes in the supply chain involving complex international production / distribution network Have become integrated transport centers and logistics platforms for international trade and Stimulate trade and regional development Developed under land-lord port and private port model in India Opportunities for private sector to either act as port operator at major ports or port developer at minor ports 32 LOGISTICS FORUM»MORE THAN CURRY«

33 General Facts about India s Ports Coastline is spanning over 7500 Km 12 major ports with 259 berths 183 minor ports with 197 berths Total 849,9 Mill. tons cargo was handled in 2011/2012 Cargo handling is expected to grow 7,7 % until ,7 Mio. TEU handled in 2011/2012 Container traffic is gaining in importance 33 LOGISTICS FORUM»MORE THAN CURRY«

34 Major Ports Major Ports are state-owned seaports Westcoast: JNPT, Mumbai, Kandla Eastcoast: Kolkata, Haldia, Paradip, Vizag Southcoast: Chennai, Tuticorin, Cochin, Goa, New Mangalore 34 LOGISTICS FORUM»MORE THAN CURRY«

35 Major Ports handled 75% of the total cargo by volume Major Ports Minor Ports In Mio. Tons Source: Indian Port Association 35 LOGISTICS FORUM»MORE THAN CURRY«

36 Most important Ports for cargo handling Kandla Port handled the maximum cargo of 75.4 million tones with a share of 14.8% Visakhapatnam with a share of 12.2% JNPT with a share of 11.8% Chennai - The Detroit of India Automobile-manufacturer like BMW, Hyundai produce in Chennai and surrounding area 36 LOGISTICS FORUM»MORE THAN CURRY«

37 Commodities handled at Major Ports 3,80% 32% 17,80% 14% POL Container Iron Ore Coal Other Cargo Fertilize &FRM 11% Source: Indian Ports Association 21.40% 37 LOGISTICS FORUM»MORE THAN CURRY«

38 Ports with Container Handlings facilities Western Ports Eastern Ports Southern Ports Major Ports JNPT Mumbai Kandla Kolkata Haldia Paradip Vizag Chennai Tuticorin Cochin Goa New Mangalore Private Ports Mundra Pipavav Proposed Ports Hazira Rewas Dighi Vallarpadam Vizhinjam Ennore Gangavaram 38 LOGISTICS FORUM»MORE THAN CURRY«

39 Allocation of container handlings JNPT handled over 60% of container traffic In 000 TEU Source: Journal of Commerce 39 LOGISTICS FORUM»MORE THAN CURRY«

40 Containerization - Advantages Inter-modal compatibility can be loaded on trailers, rail wagons, ships & barges. Low-cost, fast transit. Through liability possible Door to door service feasible Managing & monitoring easy Cargo does not require multiple handling Transhipment easy Better security 40 LOGISTICS FORUM»MORE THAN CURRY«

41 Physical Requirements Development of ICDs and CFSs Development of port facilities & port-side container terminals Feeder- & Mainline services Development of container trade routes: land-sea, land-inland waterway and land-bridging across borders 41 LOGISTICS FORUM»MORE THAN CURRY«

42 Inland Container Depots Customs formalities & documentation Storage of cargo and containers Aggregation/dis-aggregation of cargo Stuffing / stripping of cargo Handling of containers Despatch by rail/road Rail/road connectivity, availability of adequate stacking area, handling equipment, warehousing facility, security arrangements are of critical importance 42 LOGISTICS FORUM»MORE THAN CURRY«

43 Container Transport Costs 13% Vessels Terminals 23% 18% 21% Inland Transport Container 25% Others Source: Stopford, M. (2002) Is the Drive For Ever Bigger Containerships Irresistible?, Lloyds List Shipping Forecasting Conference 43 LOGISTICS FORUM»MORE THAN CURRY«

44 Container Handling Project up to 2020: Upper West-Coast: New Container-Terminals at Hazira and Jamnager Central West-Coast: Offshore-Terminal at Mundra Port, fourth Container-Terminal at JNPT, new developments in Dighi and Rewas Lower West-Coast: Container-Terminals at Vallarpadam and Vizhinjam Lower East-Coast: Development of Container-Terminal at Tuticorin, second Container-Terminal at Chennai and Container- Terminal in Ennore Central East-Coast: Container handling facilities at Gangavaram and Krishnapatnam Upper East-Coast: New Container-Terminal at Paradip, new developments at Kulpi and Dhamra 44 LOGISTICS FORUM»MORE THAN CURRY«

45 Projected container handling capacities in 2020 Source: Crisil Infrastructure Advisory 45 LOGISTICS FORUM»MORE THAN CURRY«

46 Vizhinjam as Transhipmentport Project: International deep-water seaport and container Transshipment-Terminal Initial Phase Total of 6 berths including: Container-Terminals (for 2 main and 3 feeder vessels) 1 Multipurpose Terminal (Feeder / General Cargo / Passengers) Estimated total investment for initial phase 575 Mio. US$ Advantages: Proximity to international sea route Natural depth up to 24 M in one nautical mile of coast Low dredging requirement Immediacy to national/regional road, rail network Close to Thiruvananthapuram-City that has an international Airport, human resources and social infrastructure 46 LOGISTICS FORUM»MORE THAN CURRY«

47 Bottlenecks at present Handling-Time is much higher then in others ports High logistics cost due to transshipment-related cost and high initial logistic cost Poor road infrastructure disorganized trucking network lengthy customs clearance times 47 LOGISTICS FORUM»MORE THAN CURRY«

48 Bottlenecks at present Indian ports handled 9.7 million TEU in 2011, which represents just 8% of the global benchmark ratio for economic output Port capacity and congestion issues: Federal ports are working at 85% capacity, where 70% is considered to be ideal High concentration of activity at Jawaharlal Nehru Port (JNPT), working at 100% of capacity Low level of Containerization: India s level of containerization is 25% - far below the global average of 60-70% 48 LOGISTICS FORUM»MORE THAN CURRY«

49 Potential - Seaports The potential for growth and development in India s port sector is tremendous In order to support its growing economy and to capitalize on its global position, India must continue to address the capacity constraints facing its port industry Further investment in development of the ports infrastructure will be key to improving the overall performance of India s ports 49 LOGISTICS FORUM»MORE THAN CURRY«

50 Hinterland Connections Far below international average An expansion of the road and rail network is a elementary need for more economic growth Deficient infrastructure costs 2 % from economic growth per year Cargo handling lasts much longer and is more cost-intensive Multimodal logistic-centers for handling, storage and distribution are still under construction Road/Rail network reached their capacity limit 50 LOGISTICS FORUM»MORE THAN CURRY«

51 Habitants in Mio Road Network in 000 Km Railway Network in Km Source: CIA Factbook 51 LOGISTICS FORUM»MORE THAN CURRY«

52 Roadnetwork 4,00 3,00 2,00 1,00 0,00 Length in Mio. Km Total length of approx. 3,3 Mio Km Only a half is paved Over 60% of the Freight traffic and 87% of passenger traffic Mostly 1 lane in each direction Source : AHK Indien 52 LOGISTICS FORUM»MORE THAN CURRY«

53 Highways in India Most important traffic way for freight transport Reached capacity limit Dense road network in India, but a few Highways bear brunt Congestion Cargo handling lasts 2-4 times longer as in Europe Therefore cost-intensive 53 LOGISTICS FORUM»MORE THAN CURRY«

54 Potential Road network Largest Public Private Partnership in the World Try to attract private investors for realization of new and expansion plans Interesting Market for private investments (e.g. toll roads) Investments of more then 50 Bill. US$ for expansion of the road network 15,600 Km Expressway until ,000 Km Highway per year Refurbishment of single-lane roads 54 LOGISTICS FORUM»MORE THAN CURRY«

55 Railways Railway network in India is one of the largest of the world Deficient Conditions Maintenance neglected in recent decades Massive loss of market share in favor of the road, but further growth the expected traffic volume on the rail Cargo traffic + 6% per year till 2015 Passenger traffic + 8% per year till 2015 India s freight structure and the country's size favors transport on the rail 55 LOGISTICS FORUM»MORE THAN CURRY«

56 Railway network in India Total length of 63,000Km 45,961 Km single tracks Only 19,000 Km are electrified Varity of different rail gauges narrow-gauge, broad-gauge & standard-gauge 8000 locomotives 200,000 freight wagons 56 LOGISTICS FORUM»MORE THAN CURRY«

57 India s Railways transport Mill. people daily More than 2 Mill. tons of freight daily 57 LOGISTICS FORUM»MORE THAN CURRY«

58 Transported Freight with Railways 500,00 400,00 300,00 200,00 100,00 0,00 In Mio. Tons Total 921,73 Mill. Tons in 2010/2011 Mostly Bulk Cargo Source : Ministry of Indian Railways 58 LOGISTICS FORUM»MORE THAN CURRY«

59 Potentials Railway network Extensive expansion plans e.g.: Dedicated Freight Corridors; rails with focus on freight transport Improved links between ports and special economic zones Further electrification of the rail network Planned Investments: over 60 Bill. US$ 59 LOGISTICS FORUM»MORE THAN CURRY«

60 Conclusion Expansion and refurbishment are elementary needs for further economical growth India s economy could grow with a better developed infrastructure 2% per year Very ambitious investment plans for expansion of the rail/road network and the refurbishment of the seaports Public Private Partnerships are gaining in importance and are mandatory for rapid infrastructure expansion India offers huge potential for investments in infrastructure 60 LOGISTICS FORUM»MORE THAN CURRY«

61 61 LOGISTICS FORUM»MORE THAN CURRY«Thank You