1

(December, 2013)

INDIAN PORTS ASSOCIATION

New Delhi

E-Magazine

2

Cargo Traffic at Indian Ports

During the first half (April-September) of 2012-13 major and non major ports in India accomplished a total cargo throughput of 455.8 million tonnes reflecting an increase of only 1.8% over the same period last year (Table: 1). This is mainly attributable to a decline of 3.3% in the cargo handled at major ports during the first half of the current year. In contrast, non-major ports growth increased to 10.3% in the first half of 2012-13 compared to 8.2% in the corresponding period of 2011-12. The growth in Indias GDP, Port traffic and growth in world output, world export volume and world seaborne trade (loadings and unloading) since 2006-07 is given in Chart-I

Table 1: Traffic Handled at Indian Ports (Thousand Tonnes)

Major/Non-Major Ports

Traffic Handled Growth over previous year/period

2010-11 2011-12 April-September 2010-11 2011-12 April-September

2011-12 2012-13 2011-12(P) 2012-13

Major Ports

570032 (64.4)

560137 (61.4)

279880 (62.5)

270561 (59.4) 1.6 -1.7 3.2 -3.3

Non-Major Ports

314848 (35.6)

353015 (38.6)

167969 (37.5)

185206 (40.6) 9.1 11.5 8..2 10.3

All Ports 884880 (100)

913152 (100)

447849 (100)

455767 (100) 4.2 3.0 5.0 1.8

Note : Figures within parenthesis indicate percent share in total cargo traffic for Major and Non-Major ports respectively. (P) : Provisional

E-Magazine

3

Year wise traffic handled at Major and Non-Major Ports Year (in Million Tonnes) % share of

Major Ports

% share of

Non-Major

Ports Major Ports Non Major Ports Total

2001-2002 287.58 96.27 383.85 74.92 25.08

2002-2003 313.55 105.17 418.72 74.88 25.12

2003-2004 344.79 120.84 465.63 74.05 25.95

2004-2005 383.75 137.83 521.58 73.57 26.43

2005-2006 423.56 145.53 569.09 74.43 25.57

2006-2007 463.78 186.12 649.9 71.36 28.64

2007-2008 519.31 203.62 722.93 71.83 28.17

2008-2009 530.53 213.20 743.73 71.33 28.67

2009-2010 561.09 288.86 849.95 66.01 33.99

2010-2011 570.03 314.85 884.88 64.42 35.58

2011-2012 560.13 353.02 913.15 61.34 38.66

2012-2013 545.79 387.87 933.66 58.45 41.54

The total traffic volumes of non-major ports continued their upward trajectory with 41.63% share in traffic handled at Indian ports in 2012-13, which was 25.08% in 2001-02. The composition of cargo at Major Ports during FY 2012-13 is shown below:

2012-13 POL34%

Iron Ore

5%

Fertilizer

3%Coal

16%

Container

22%

Other Cargo

20%

Monthly Cargo traffic handled at Major Ports

45.21

48.39

44.18

47.65

43.50

47.96

45.58

47.33

48.46

43.6144.00

43.99

47.90

41.00

42.00

43.00

44.00

45.00

46.00

47.00

48.00

49.00

Mill

ion

Tonn

es

Series1 45.21 48.39 44.18 47.65 43.50 47.96 45.58 47.33 48.46 43.61 44.00 43.99 47.90

Dec-

12

Jan-

13

Feb-

13

Mar-

13

Apr-

13

May-

13

Jun-

13Jul -13

Aug-

13

Sep-

13Oct-13

Nov-

13

Dec-

13

Port traffic is at its all time high in August 2013 on the back strong thermal coal, Iron & Steel and other cargo traffic and also because of rise in Iron Ore traffic. However, it had declined at the level of 43.50 million tonnes in April 2013 and again showing an upward trend thereafter.

4

Cargo traffic at Major Ports (in million tonnes)

Dec-12

Nov -13

Dec -13

% of Total Traffic

YoY Gr (%)

MoM Gr (%)

FY 2012-

13

FY 2011-

12

YoY Gr (%)

Kolkata 2.99 3.34 3.29 6.87 10.03 -1.50 39.88 43.25 -7.79

Paradip 5.28 5.70 6.42 13.40 21.59 12.63 56.55 54.25 4.24

Vishakapatnam 4.79 4.36 5.49 11.46 14.61 25.92 58.96 67.42 -12.55

Ennore 1.45 2.36 2.65 5.53 82.76 12.29 17.89 14.96 19.59

Chennai 4.32 3.70 4.10 8.56 -5.09 10.81 53.4 55.71 -4.15

Tuticorin 2.48 2.21 2.34 4.89 -5.65 5.88 28.26 28.10 0.57

Cochin 1.59 1.70 1.27 2.65 -20.13 -25.29 19.85 20.09 -1.19 New Mangalore 3.47 3.47 3.62 7.56 4.32 4.32 37.04 32.94 12.45

Mormugao 0.71 1.04 1.16 2.42 63.38 11.54 17.69 39.00 -54.64

Mumbai 5.21 5.25 5.42 11.32 4.03 3.24 58.04 56.19 3.29 Jawahar Lal Nehru 5.12 4.80 5.57 11.63 8.79 16.04 64.5 65.73 -1.87

Kandla 7.80 6.06 6.57 13.72 -15.77 8.42 93.62 82.50 13.48

Total 45.21 43.99 47.90 100.00 5.95 8.89 545.68 560.14 -2.58 Eight out of twelve major ports reported growth in cargo traffic for the month of Dec. 2013. Ennore port reported highest increase of 82.76% YoY, followed by Mormugao (63.38% YoY), Paradip (21.59%YoY), Vizag. (14.61%YoY), Kolkata (10.03% YoY), J.N.P.T. (8.79%YoY), New Mangalore (4.32% YoY) and Mumbai (4.03%YoY). During the FY2012-13, six major ports reported growth in cargo traffic, however, major port volumes continued their downward trajectory with (-)2.58 YoY decline in volumes.

(in million tonnes)

Year P.O.L. IRON FERTILIZER COAL CONTAINER OTHER TOTAL

ORE FIN. RAW THERMAL COKING TONNAGE TEUs CARGO

2012-13 185.981 28.472 7.441 7.297 58.653 28.007 119.821 7.704 110.118 545.790

2011-12 179.104 60.401 12.259 8.127 50.827 27.958 120.097 7.779 101.364 560.137

3.94 -55.16 -39.86 -9.92 15.78 1.19 -0.23 -0.91 9.20 -2.58

POL, Coal, and other cargo grew by 3.94% YoY, 10.60% YoY and 9.20% YoY respectively while Iron ore, fertilizer, and container declined by (-)55.16%, (-)27.48%, (-)0.23%YoY respectively.

YoY

-4.84

-0.96

1.01

-3.37

-6.21

0.50

2.52

4.81

6.83

4.93

-2.70

-0.36

5.95

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

Dec-1

2

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

Jun-

13Ju

l-13

Aug-

13

Sep-

13

Oct-1

3

Nov-1

3

Dec-1

3

%

Series1 -4.84-0.96 1.01 -3.37 -6.21 0.50 2.52 4.81 6.83 4.93 -2.70 -0.36 5.95

Dec-

12

Jan-

13

Feb-

13

Mar-

13

Apr-

13

May-

13

Jun-

13

Jul-

13

Aug-

13

Sep-

13

Oct-

13

Nov-

13

Dec-

13

YoY

-4.84

-0.96

1.01

-3.37

-6.21

0.50

2.52

4.81

6.83

4.93

-2.70

-0.36

5.95

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

Dec-

12

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct

-13

Nov-

13

Dec-

13

5

Traffic Handled vis--vis Capacity at Major Ports

-40

10

60

110

160

210

260

310

360

April, 2013 to December 2013

Traffic Capacity

Traffic 92.29 215.06 508.58 430.67 198.01 380.98 212.24 156.03 293.44 85.65 436.44 459.91 660.84

Capacity 17.14 49.75 108.80 82.51 31.00 86.04 33.34 49.66 77.77 36.65 44.53 65.88 97.22

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

Traffic - 4130.14; Capacity - 780.29

As may be seen, capacity in respect of HDC and Mormugao has declined by 4.00 MTPA & 5.50 MTPA resultant an increase of 48.380 million tonnes of capacity in FY 2012-13. The total Capacity of Major ports reaches to 744.91 & 780.29 million tonnes at the end of FY 2012-13 and upto December 2013 respectively.

Performance Indicators during April to December 2013

Average Pre Berthing Time(Port A/c) (in Hrs)

0.0

28.14

1.09 1.43 0.02 0.96

6.48

1.15 0.243.08

15.1812.48

18.00

0.0

10.0

20.0

30.0

40.0

50.0

PBT 0.0 28.14 1.09 1.43 0.02 0.96 6.48 1.15 0.24 3.08 15.18 12.48 18.00

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

Average Turn Round Time (in Days)

2.47

4.01

1.84

3.17

5.01

2.57

6.11

4.95

4.44

3.41

4.34

5.02

4.16

0

1

2

3

4

5

6

7

TRT 4.34 3.41 4.95 5.02 4.16 2.47 4.01 1.84 3.17 4.44 5.01 2.57 6.11

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

6

Average Output Per Ship Berthday (in lakhs tonnes)

32.0558.93

176.40

224.97

149.47 147.33 150.57

105.4095.73

163.72

96.84

105.56

247.50

0.00

50.00

100.00

150.00

200.00

250.00

300.00

OPSBD 32.05 58.93 176.40105.40 224.97 149.47 95.73 147.33 163.72 105.56 96.84 247.50 150.57

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

.

PERFORMANCE INDICATORS AT MAJOR PORTS

0.0

28.14

1.09 1.43 0.02 0.96 6.48 1.15 0.24 3.0815.18 12.4818.00

32.05

58.93

176.40

105.40

224.97

149.47

95.73

147.33163.72

105.5696.84

247.50

150.57

0.0

50.0

100.0

150.0

200.0

250.0

300.0

KoP

T-K

DS

KoP

T-H

DC

PPT

VPT

EPL

ChP

T

VO

CPT

CoP

T

NM

PT

MG

PT

MbP

T

JNPT

KPT

PORTSPBT TRT OPSBD

Vessel Handled during the month of December- 2013

VESSELS HANDLED DURING DECEMBER -2013

0

50

100

150

200

250

Arrived Berthed Sailed

Arrived 111 172 135 186 64 153 89 96 94 35 61 219 140

Berthed 111 172 141 187 67 153 91 96 98 36 77 219 165

Sailed 109 172 142 189 67 149 94 104 97 40 58 218 133

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

7

Date wise Vessel Position during December 2013

DAILY VESSEL POSITION AT PORTS

10393

107 102 108 97

124 129116 112 11554

5044

102

43

45 4562

534042

50

100

150

200

250

Date

NO

S O

F V

ES

SE

LS

Vessels Working Vessels Waiting

Vessels Waiting 54 50 44 102 43 42 45 45 62 53 40

Vessels Working 103 93 107 102 108 97 124 129 116 112 115

9 10 11 17 18 19 23 24 26 27 30

On 17h December 2013, Major Ports had around 204 vessels in Indian water

Outlay and Expenditure for the Ports and Shipping Sector during the Five

Year Plans

(Rs in Crore)

Five Year Plan Port Sector Shipping Sector

Outlay Expenditure Outlay Expenditure

I (1951 - 56) 37 28 26 19

II (1956 - 61) 45 33 48 53

III (1961 - 66) 86 93 57 40

Annual Plans

(1966 - 69)

54 53 23 32

IV (1969 - 74) 195 249 141 155

V (1974 - 79) 571 488 450 469

VI (1980 - 85) 647 765 755 444

VII (1985 90) 1230 1513 827 720

VIII (1992 97) 3557 2302 3669 3033

IX (1997- 02) 10081 5316 6305 2466

X (2002 07) 5418 2893 7754 2992

XI (2007 12) 30305 6948 15026 9788

XII (2012 17) 15764 NA 10142 NA

8

Outlay vis-a-vis Plan Expenditure upto December 2013

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

Chart Title

OUTLAY Plan Exp

OUTLAY 8.64 29.39 96.91 182.34600.00 107.00547.82123.05 75.00 110.00427.601559.1 145.45

Plan Exp 2.22 7.57 68.62 84.99 45.91 15.00 8.38 18.30 15.49 33.20 94.16 618.02 59.78

KoPT-

KDS

KoPT-

HDCPPT VPT EPL ChPT

VOCP

TCoPT NMPT MGPT MbPT JNPT KPT

Plan Expenditre vis-a-vis Outlays at Major Ports

in crores

Status of Capacity yielding Projects (PPP, Non-PPP & Captive) as on

October, 2013 is as follows:

36 Public Private Partnership (PPP) projects are operational at a cost of Rs.130543.9 Million and capacity of 195.33 Million Tonnes Per Annum (MTPA).

34 PPP projects at an estimated cost of Rs. 112305.70 Million and capacity 185.79 Million Tonnes Per Annum (MTPA) awarded and are under implementation.

21 PPP projects with an estimated cost of Rs. 194777.36 Million and capacity 212.06 Million Tonnes Per Annum (MTPA) have been identified to be awarded during 2013-14.

In addition, 7 non-PPP projects with the cost of Rs. 10955.10 million and capacity of 28.00 Million Tonnes Per Annum (MTPA) have been awarded during the year 2013-14 so far, which are under various stages of completion.

Some of the important projects completed during FY 2012-13

Mechanization of Berth CQ 3 (Rs 40.00 Cr, 4.00 MTPA) completed on 30/9/2012 at Paradip.

Procurement of Mobile Harbour Cranes (Rs 19.00 Cr, 2.80 MTPA) commissioned on 31/10/12 at Cochin.

Setting up of SPM facilities off Mangalore coast and Crude Booster pumping station

(Rs 1143 crs, 18 MTPA) completed on 30/11/2012(ONGC)

2 SPMs for IOCL refinery at Paradip (Rs 1500 Cr, 22.0 MTPA) have been commissioned on 30/1/2013(Captive)

Relocation of Jetties/facilities for Tugs/harbor crafts in SL canal (Rs 31.62 Cr, 1.00

MTPA) completed on 28/01/2013 at Visakhapatnam.

Setting up of Bulk Cement Handling facility for M/s Ambuja cement Ltd during February 2013 ( Rs 95.00, 1.00 MTPA) at New Mangalore.

9

Construction of Berth No. 13 (POL Berth) (Rs 79.17 Cr, 7.80 MTPA) completed on 27/2/2013 at NMPT

Construction of Berth No 13 (Rs , 2.00 MTPA) completed on March 2013 at KPT

Projects completed during April 2013 to December 2013

Installation of Mechanized Coal Handling Facilities (7.18 MTPA) completed during April 2013 at VPT.

SPM of HPCL (8.00 MTPA) completed during June 2013 at Visakhapatnam Port.

Mechanization of CQ III berth (4.00 MTPA) completed during June 2013 at Paradip Port.

Commissioning of MHC at Berth No. 10 & 11 (0.25 MTPA) completed during July 2013 at MGPT.

Setting up of Bulk Cement handling facility (1.00 MTPA) completed during July 2013 at NMPT.

2 MHCs at Berth 4B (3.00 MTPA) completed during July 2013 at HDC.

LPG/LNG facilities (5.00 MTPA) completed during September 2013 at CoPT.

Construction of 15th cargo berth (2.00 MTPA) completed during November 2013 at KPT.

IFFCO barge jetty (2.00 MPTA) completed during November 2013 at KPT.

Enhancement of draught at existing docks system from 12.5 M to 14.0 M (2.50 MTPA) completed during December 2014 at PPT.

Statistics of Employees at Major Ports as on November 2013.

Statistics of Employees at Major Ports

0

20000

40000

60000

80000

Working Strength of Employees

Nov.-2009 Nov.-2013

Nov.-2009 2317 1160 29196 24504 57177

Nov.-2013 2162 1003 23465 18073 44703

Class-I Class-II Class-III Class-IV Total

As it may be seen from the above table that though the working strength in terms of manpower of the major ports has shown a downward trend in the past four year, whereas the productivity has shown an upward trend.

10

Port Sector in News

DCI may be hit if it loses Kolkata port contract

Mint 02.12.2013 The work for maintaining the channel at Union government owned Kolkata port has been opened up for competitive bids when the cabinet on 28 November approved extending financial support to the port to meet the dredging costs by four years beginning 1 April 2012. State-run Dredging Corp. of India Ltd. (DCI), the nations biggest dredging contractor, will potentially lose half its annual revenue it it fails to win the contract when the bids are called by the port authority.

New Mangalore port to handle 3 mainline vessels this month

Business Line 03.12.2013 Three mainline container vessels will be calling at New Mangalore port during December 2013. P. Tamilvanan, Chairman NMPT, said that the mainline container vessel of Pacific International Lines m.v. Kota Halus from East Africa carrying raw cashew nuts called the port on Monday.

Cochin port plans Rs. 40,000 cr oil refinery and oil trading hub

Mint 04.12.2013 After putting up Indias first container transshipment terminal with a private partner, Union government-owned Cochin port in Kerala has started work on setting up a 20 million tonne export-oriented oil refinery and oil trading hub with private funds as part of an ambitious deepwater outer harbour project.

India wins appeal against oil tanker detention in Iran

Mint 05.12.2013 Shipping Corp. has a solid ground to seek compensation seek Iran, says Director General of Shipping. India has won an appeal filed with a regional grouping of 16 maritime nations against the recent detention of on oil tanker in Iran on charges of polluting Iranian waters, clearing the decks for the tanker owner, state-run Shipping Corp. of India Ltd, to seek compensation for holding up the ship.

Paradip harbour jetty collapses

Business Line 05.12.2013 A strategic portion of a jetty in Odishas largest fishing hub in the Paradip harbour has collapsed weeks after it faced the burnt of Cyclone Phailin. This poses an erosion threat to its vessel-berthing infrastructure.

Mazagon Dock JV with L&T, Pipavav hits fresh hurdle

Mint 10.12.2013 A joint venture between Indias biggest warship builder Mazagon Dock Ltd (MDL) and two private ship makers Pipavav Defence and Offshore Engineering Co. Ltd and Larsen and Toubro Ltd- has got stuck again after the government said that the companies will have to participate in tenders to get business.

11

Paradip port expanding, seeks private investments

Business Line 10.12.2013 The port is seeking investors to create liquid bulk cargo facilities as part of its expansion. Paradip is on an expansion mode. It plans to invite firms to invest in erection and commissioning of facilities to handle liquid bulk cargoes such as mineral oils and vegetable oils. The port will allot 5 acres of land to each private investor to erect storage tanks and associated infrastructure for cargo handling and provide the necessary right way to lay pipelines from the oil jetty to tanks.

Modest Growth For Major Ports

Business Line 11.12.2013 Indias major ports reported a modest growth of 6% in H1 FY14 as compared to a negative growth of -1% recorded in H1 FY13. While the non-major ports continue to grab a majority of the incremental cargo in Indian shores.

Adani, Essar sign deals with Vizag Port Trust

Business Line 14.12.2013 Visakhapatnam Port Trust (VPT) has signed two concession agreements totaling Rs. 1,173 crore to upgrade an ore handling complex and to add a new berth. It signed an agreement with Vadinar Oil Terminal of Essar Group to upgrade an ore handling complex on a private-public-partnership (PPP) mode at a cost of Rs. 845.41 crore. VPT Chairman R.P.S. Kahlon signed the agreement. The terminal will handle 23 million tonne (mt) of cargo annually.

Work hit at Vizag ports ore-handling complex

Business Line 14.12.2013 Work was paralysed on 13.12.2013 in the iron ore-handling complex (OHC) at Visakhanam port, as workers went on strike in protest against the privatization of OHC even though a petition was pending in the AP High Court.

New traffic chief at JNPT

Business Line 14.12.2013 Asish Kumar Bose has been appointed Chief Manager (Traffic) of Jawaharlal Nehru Port Trust. The position was lying vacant since June. At present, Bose is Traffic Manager of Mormugao Port Trust, Goa. Earlier he had served Haldia Dock Complex under Kolkata Port Trust as Manager (Railways).

Chemoil Adani keen to develop bunkering facility at Chennai port

Business Line 14.12.2013 Chemoil Adani, a joint venture between Chemoil and Adani, has shown interest in developing a bunkering facility at Chennai Port. The Indian Oil Corporation is the only supplier of bunker fuel oil used aboard ships in Chennai. Mundra, Colombo and Kochi ports have developed bunkering facility. The Kandla port has also taken initiative to improve this facility.

12

Major ports handle 365 mt cargo in April-Nov

Business Line 16.12.2013 Major ports in India which are the ports under the Union Government handled 365 million tonne of cargo for the eight-month period of the current fiscal, up 1.43 per cent over the corresponding period last fiscal.

Shippers want performance, penal clauses in existing cargo contracts

Mint 16.12.2013 The govt, terminal operators are in talks for a policy for migration of existing terminals to a new tariff regime in July. An influential group of exporters and importers shipping their container cargo through Jawaharlal Nehru Port, wants the government to incorporate performance monitoring and penalty clauses while allowing existing private cargo handlers to migrate to a new market-linked tariff regime announced for new projects in July.

Adani completes Vizag coal terminal ahead of schedule

Business Line 19.12.2013 Completing the Rs. 400-crore steam coal terminal at Visakhapatnam port eight months ahead of schedule, Adani Ports and SEZ Ltd (APSEZL), on 18.12.2013 announced commencing its operations on the East Coast.

Concors Vizag logistics part on track

Business Line 19.12.2013 Work on the Rs. 350-crore multi-modal logistics part of Container Corporation of India at Visakhapatnam is on track and is likely to be completed within two and half years.

Vizag port on capacity expansion mode

Business Line 19.12.2013 The Visakhapatnam port has taken nine major projects under the public-private partnership mode, two of which have been completed and the rest being in various stages, to boost its capacity and also to mechanise cargo-handling to face challenges from the private ports.

New facilities at Cochin Oil Terminal

Business Line 23.12.2013 The Kochi Port has installed new unloading facilities at the Cochin oil terminal at a cost of Rs. 17 crore. The replacement of old unloading arms, which connect the shore pipeline and the ship with new and advanced ones, is expected to ensure safer and more efficient handling of oil and petroleum products, the port said.

DP World-United Liner team may get Vizag ports box terminal project

Business Line 28.12.2013 Vizag port is speeding up the process for extension of the existing container terminal, as it sees demand for container berths surging in the coming months. The ports board of trustees approved issuing Letter of Award to Visakha Container Terminal Pvt Ltd ( a joint venture between DP World and United Liners Agencies) for execution of the project at an estimated cost of Rs. 633 crore.

13

Vizag port blames contractors for fall in traffic

Business Line 28.12.2013 Vizag port has blamed the slow pace of work on some development projects by its contractors such as Dredging Corporation of India, Dharti Dredging and ABG Group for dip in its cargo throughput this fiscal.

Coastal operators pin their hopes on Ministry support to promote industry

Business Line 30.12.2013 Not withstanding the current political situation, where no policy decision is expected to take place before the impending general elections, operators of Indian coastal shipping, under the banner of ICC Shipping Association, have sought support from ministry of shipping to promote coastal shipping. The KPMG report suggest that the incentive scheme, as adopted in other countries, will facilitate the model shift of cargo from rail road to waterways with direct and indirect benefits. The report findings are based on a figure of 20m tones of modal shift of cargo from current 2-3m tones.

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