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Mechanization of Okha Port Final
Mechanization of Okha Port Final
Port
Contents
Project Concept
Market Potential
Growth Drivers
10
Project Information
12
- Location/ Size
- Infrastructure Availability/ Connectivity
- Manpower
- Potential Collaboration / Key Maritime Clusters
- Key Players/Stakeholders
- Key Considerations
Project Financials
18
19
20
Page 2
Project Concept
Mechanization Imperative to meet Demand
Gujarat with its favourable location and availability of a long coastline is a prime destination for
executing maritime economic activities. The increasing importance attached to maritime economic
activities has further led to the development of many container terminals.
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 States
ports. The traffic at Gujarat ports have increased at a brisk rate as compared to the national port
traffic in the last decade.
Okha
Deployment of conventional equipment like Excavator for handling bulk cargo adversely affects
efficiency parameters like:
Average Ship Turnaround Time
Berth Occupancy and Output
Cargo Contamination
Environmental Issues
Page 3
Project Concept
Mechanization at Okha Port
Mechanization of the existing facility at Okha Port to improve productivity, take environmental
friendly measure and safe cargo handling.
Till now majority of the cargo is being handled through conventional equipment, which adversely
affect efficiency parameters such as average ship turnaround time, berth occupancy and output,
and resulted in cargo contamination, pollution and fire hazards.
Mechanized handling at Okha Port will require the installation of the following equipment at
various stages of the cargo handling value chain.
Ship To
Barge
Barge
To Jetty
Floating
Crane
Mobile
Crane
Jetty To Truck
Mobile
Hopper
Pipe/ Belt
Conveyor
Stacking
Area
StackerReclaimer
Dust
Suppression
Fog
Canon
Apart from this a storage shed, truck and wagon loading systems would also required to be
installed at the port.
Page 4
Note: Extent of mechanisation will be dependent on land availability on the backside of jetty
Market Potential
Port Scenario
Ports in India
The port sector of India is one of the important and prominent sector as it has coastline spanning
about ~7,516.6 km, forming one of the biggest peninsulas in the world.
Around 70% of Indias trading by value and 95% by volume is done through maritime transport.
By FY17, cargo capacity of India is expected to increase to 2,493.1 MMT from 1,806.8 MMT in
FY15.
By FY17, cargo traffic at major ports is expected to rise to 943.1 MMT from 581.3 MMT in FY15.
By FY17 cargo traffic at non-major ports in India is expected to grow to 815.2 MMT from 471.2
MMT in FY15.
India is strategically in prime location well connected and benefited by more than 200 ports
across the coastline as most cargo ships sails between East Asia, America, Europe, Australia
and Africa.
Classification of Ports
Major ports: India has about 12 major ports in the country, 6 on the Eastern
coast and 6 on Western coast. Major ports are under jurisdiction of the
Government of India.
Ports in India
Non-major ports: India has about 200 non-major ports of which one-third are
operational. Non-major ports come under the jurisdiction of the respective states.
a) Governments Maritime Boards (GMB) ports, b) Private ports.
Ports in Gujarat
336
310
94
87
92
100
259
83
82
231
313
80
206
286
288
382
342
440
428
397
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
Major ports
Non-major ports
Total
Source: IBEF, GMB, Shipping ministry. *MMT- million metric tonne, FY- financial year, km- kilo meter,
Page 5
Market Potential
Demand Supply
206.0
131.0
FY 07
151.0
153.0
FY 08
FY 09
FY 10
231.0
259.0
FY 11
FY 12
288.0
FY 13
310.0
FY 14
336.0
339.7
FY 15
FY 16
Source: GMB
The state has 1 major port and 44 non major ports, totalling to 45 ports. The state has the
highest number of operational ports and commercial cargo ports.
Gujarat is the first state in India to invite Private sector participation through competitive bidding.
Gujarat ports account for 40.7% of traffic in the total national port traffic which is more than any
other state. The non-major ports of Gujarat constitutes 32% share.
Gujarat accounts for 74.1% of traffic for non-major ports of India in 2014-15. The traffic handled
at non-major port in Gujarat has increased by CAGR 11.2% from FY 07 to FY 16 to reach 339.7
MMT.
Traffic handled at Okha Port (MMT)
CAGR: 32.7 %
4.5
5.0
2.5
1.6
1.7
FY12
FY13
FY14
FY15
FY16
Source: GMB
Bauxite, Coal and Lime stone comprised large amount of the total import cargo volume handled
at Okha port.
Bauxite comprises large amount of total export cargo handled at Okha port.
The current cargo handling at Okha port is 5.0 million metric ton per annum.
The estimated traffic at Okha port in FY 20 is about 9 MMT which can be achieved by
mechanization of handling the bulk cargo.
Page 6
Market Potential
Demand Supply
Coal Imports by India (MMT)
212.1
166.9
145.8
102.9
FY12
FY13
FY14
FY15
Coal
16.5
Lime stone
Coke
20.4
58.2
Others
1.4
3.9
0.7
FY 15
0.8
FY 16
FY 20E
2.7
2.9
FY 15
FY 16
Page 7
FY 20E
Market Potential
1
Okha port current
trends
2
Need for
mechanization
3
Proximity to
Mining Area
The Okha port imports coke, coal, wheat, sulphur, fertilizers, lime
stone and exports calcium bauxite, onion, clinker, raw bauxite,
chemical and soda ash. The port is not mechanized in terms of
handling the cargo which has adverse effect on the total cargo
handling around the year.
To meet the future market scenario for import and export of bulk
cargo in Gujarat, the ports should be mechanized for better
efficiency in terms of million metric Tonnes of cargo handling in the
year, quicker turnaround time of the vessels and with improved
safety and healthy environment.
Installation of
Mechanization
Focus on to meet
the Future Needs
Page 8
Growth Drivers
Location Advantage of Gujarat
Gujarat acts as a
gateway to West and
to major states across
India
44 non-major and 1 major port are strategically located across a 1600 kms coastline, which is
the longest among the Maritime States of India
Nearest maritime outlet to Middle East, Africa and Europe
Highest number of commercial cargo ports
Acts as a gateway to northern and central India; connecting them via road, rail and air - thereby
providing immense trading opportunities
Handled 40% of national maritime trade in FY15
Page 9
32%
68%
Traffic at GMB
Ports
National
maritime traffic
excluding GMB
Source: GMB
Page 10
26%
Traffic at GMB
Ports
Traffic at NonMajor Ports
74%
Geographical advantage due to location on the west coast of India. The state is well connected
to the major cities of the world by air and sea routes. The state has 45 operational ports, 12
domestic airports and 1 International airport in addition to an extensive rail and road
network.
Gujarat is one of the leading Industrialized States in India and the State has attracted cumulative
FDI worth US$ 12 billion from April 2000 to March 2015
Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical,
auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.
Project Information
Port Details
Site Image
Source: GMB
Page 12
Project Information
Port Details
Anchorage: Anchorage is 2.4 km off shore. Vessel upto 7.5 m draught can be berth at this port.
Pilotage: Pilotage is compulsory at the port
Harbour Structure
Sayaji Pier
Length
180 Meter
Width
20.5 Meter
Approach
114 Meter
Berthing Capacity
Draught
8 Meter
146 Meter
Width
13.72 Meter
Approach
216 Meter
Berthing Capacity
Draught
4 Meter
Launch
Barges
Launch
Cranes
Dredger
Stacking Area
Source: GMB
Page 13
Project Information
Utility
Power
Water
Rail
Road
Existing Infrastructure
Air
Page 14
Project Information
Current Handling Process
2
Excavator
Dozer
Barge
Jetty
Dozer
Stack Yard
9
Excavator
for Stacking
Truck
Truck
10
Wagon
Loading
Area
11
Excavator
Multiple Handling
Handling in open in all stages
Creation of Dust
Dusty Area
Creation of Pollution
Final
Destination
4
Grab Crane
Conveyor
Barge
Conveyor
5
Hopper
Single Handling
Handling by Closed System
Page 15 Source: GMB
Stacker
Loading Area
No Dust
No Pollution
Final
Destination
Wagon/ Truck
Loading
Project Information
Key Processes to be Mechanized and its Benefits
Equipment's
Description
Advantage
Mobile Harbour
Crane
Stacker/ Reclaimer
Pre-Engineering
Build Shed
Storage of Cargo
1.
2.
Hoppers with Dust Received Material from Crane
3.
Suppression System and feed to Conveyor
4.
5.
Closed Type Belt
Receive Material from Hopper
Conveyor System
and transfer to Stack yard.
Speedy Handling
No Spillage
Less Pollution
Ship Turnaround Time Reduced
Less Manpower
Manpower
Floating Crane Handler
No.
No.
No.
No.
Material Handling
No.
Administrative Staff
No.
No.
No.
Total
Page 16
24
Project Information
Project Structure & Implementation Model
Port mechanization projects are usually funded through a PPP model, in which private players can
charge operating charges per ton of cargo handled.
Gujarat Maritime Board (GMB) is contemplating to develop the mechanization project at Okha Port
on a stand alone basis.
Possible Collaboration
Key Technology / Machinery Suppliers / Material Handling System Suppliers
Murata Machinery Limited
Craneports Limited
Konecranes
Key Considerations
The project viability is subject to availability of natural resources vis--vis coal and bauxite.
Key project variables such as demand and supply of the minerals, national and international
economic conditions, international trade, Indian exports and imports are subject to variation and
change.
The cost for the project is indicative only and based on assumption & benchmarking the project
with similar project and subject to change with alteration in any criteria.
Page 17
Project Financials
Project Cost
The total cost for the mechanization of existing jetties is estimated to be ~INR 120 crores,
below is a detailed break down of the equipment to be procured.
Metric
425.0
400.0
30.0
100.0
30.0
30.0
Civil Works
120
10.0
Contingencies (5%)
57.0
Total Cost
% of total cost
Civil Works
1,247.5
27%
2,170.2
47%
358.6
8%
245.6
5%
621.3
13%
4,643.2
100%
Total
Page 18
INR 68 = 1 USD
Approval Procedure
License
Environmental
Clearance
Performance Standard
Tariff
Incentives
GOI has allowed foreign direct investment of up to 100 per cent under the automatic route for
projects related to construction and maintenance of ports and harbours;
Permission granted for formation of joint ventures between Major Ports and foreign ports, Major
Ports and Non-Major Ports, and Major Ports and companies;
Various incentives, such as, ten year tax holiday for enterprises engaged in development of Port
sector
Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax
Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer.
Reduced service tax incidence on coastal shipping
Page 19
www.indextb.com
Gujarat Infrastructure Development Board
www.gidb.org
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.