Some Key issues in cityport development in India. Marten van den Bossche Managing Partner Ecorys Paris,14 September 2012

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1 Some Key issues in cityport development in India Marten van den Bossche Managing Partner Ecorys Paris,14 September 2012

2 Some key issues cityport development India 1.How many ports, what capacity, where located, when developed? 2.Main issues in relationship ports and city in India 3.Two cases Mumbai and Chennai 4.Additional development: Delhi-Mumbai Industrial Development Corridor

3 Key issue 1: How many ports, what capacity, where located, when developed? What you see today in India is not what you will get. At least 2/3 of Indian port capacity needed is not yet realised. There will be a need for 4-6 principal Indian ports, at strategically chosen locations. International examples: container ports of > 1 million TEU in NW- Europe, US & Canada, China and India

4 Main container ports in Hamburg-Le Havre range (NW-Europe) Hamburg 7.9 MTEU Bremen/Bremerhafen 4.9 MTEU Rotterdam 11.1 MTEU Antwerp 8.5 MTEU Zeebrugge 2.4 MTEU Le Havre 2.4 MTEU (Containerisation International 2010)

5 Main container ports in US & Canada Vancouver 2.5 MTEU Seattle 2.1 MTEU Tacoma 1.5 MTEU Oakland 2.3 MTEU Los Angeles 7.8 MTEU Long Beach 6.3 MTEU Montreal 1.3 MTEU New York/New Jersey 5.3 MTEU Virginia 1.8 MTEU Charleston 1.4 MTEU Savannah 2.8 MTEU Houston 1.8 MTEU (Containerisation International 2010)

6 Main container ports in China Yingkou 3.3 MTEU Tjianjin 10.1 MTEU Dalian 5.2 MTEU Qingdao 12.0 MTEU Lianyungan 3.9 MTEU Taicang 2.2 MTEU Shanghai 29.1 MTEU Ningbo 13.1 MTEU Xiamen 5.8 MTEU Shenzhen 22.5 MTEU Guangzhou 12.6 MTEU Hong-Kong 23.7 MTEU (Containerisation International 2010)

7 Main container ports in India Mundra 1.1 MTEU Jawaharlal Nehru 4.8 MTEU Chennai 1.2 MTEU* (Containerisation International 2010, *2009)

8 Search areas for principal strategic ports in India: select, plan, and create basic infrastructures

9 Main Issues for cityports in India Current lay-out not equipped for future needs Too close to city centres Strategic development plans for ports not fitted in into integrated urban development plan Locational alternatives insufficiently planned and developed Financing too early in PPP constructions Bad hinterland connections through choked city centres/suburbs

10 Two cases: Mumbai and Chennai Exemplary for cityport issues, and both ports are important for India

11 Greater Mumbai Area map

12 Greater Mumbai area aireal

13 Mumbai city map

14 Mumbai City Aireal

15 Mumbai key cityport issues Old mumbai port in mid-term to be restructured in urban area (inefficient, no competitive hinterland possibilities, both road and rail very congested during greater part of the day) JNPT location not extendable for real long term growth potential of Mumbai area Alternative options for Mumbai quite far away from city: either North (Maroli, etc), or in basin around southern part of Mumbai. No strong regional master planning Strong competition from Gujarat port locations

16 Second showcase: Chennai (Map)

17 Chennai aireal

18 Chennai Close-up

19 Chennai key cityport issues Chennai port is surrounded at all sides by the city (road very congested during greater part of the day) Current location too small for long term development potential Alternative options for current Chennai Port: only coal to Ennore, but containers and iron ore planned to stay at Chennai. Tension on city functioning will only increase City gets disconnected from its sea shore due to heavy port related infrastructures No strong regional master planning

20 Example 3; Development of the DMIDC New cross-state spatial planning initiative aimed at integrated corridor planning between Delhi and Mumbai Huge scale: 11 industrial zones along 1,500 km DM corridor, 6 lane highway, dedicated freight railway, five airports, three new sea ports and seven new cities Total costs est. 65 billion euro First phase finished in 2018, 35% of projects financed (public goods/infrastructures by governments, rest PPP) Conclusion for city ports: even further stress on city port symbiosis

21 Some final observations India has no tradition in sea ports: largest part of GDP was produced and consumed locally Only recently (last 20 years) gradual opening up to rest of the world: strong GDP growth combined with increasing shares of both exports and imports Spatial planning system is not equipped for long term implications for necessary port development in urban environments So almost every cityport experiences large stress from urban growth combined with port expansion needs These stress factors are currently not properly solved, and thereby form a direct bottleneck for continuation of the current growth paths.

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