Maritime University at

Ahmedabad

Port, Port Services and

Logistics
Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 10
Gujarat – Competitive Advantage 11
Project Information 13
- Location/ Size
- Infrastructure Availability/ Connectivity
- Potential Collaboration / Key Maritime Universities
- Project Structure
- Key Considerations
Project Financials 18
Approvals & Incentives 19
Key Department Contacts 21

Page 2
Project Concept

Project Background - Genesis

Maritime industry has flourished exponentially during the last two

centuries all over the world. This has resulted in making seafaring as
an international, stream-lined and an acknowledged profession.
There is also a growing recognition of the necessity of creating
excellent maritime education and training institutes as there is an
acknowledged shortage of navy officers, maritime business
professionals, maritime scientists, professionals providing specialized
maritime services.

Maritime education was prevalent in Gujarat since ancient times

though not in formal fashion. This is substantiated by written
manuscripts of sailing traditions in Kutch and Gujarat, in Kutchi
dialect written in Gujarati script. These manuscripts including the
navigational information were compiled in texts called “pothis” & were
passed down the generations.

With integrated planning of port cities, progressive technological

practices being deployed at the port & community level and maritime
clusters, there is a need to promote research and development, while
at the same time meeting the needs of the industry for manpower.
Considering the current role and future requirements, there is a
strong need for the State in developing itself as a state of excellence
in maritime education.

► Gujarat ports (including Kandla) handle more than 40% of national sea cargo.
► To complement integrated planning of port cities and maritime clusters, there is a need to
promote research and development, while at the same time meet the needs of the industry
for manpower.
► With a view to converge entire maritime economy related education, it was felt necessary
to establish a maritime university in Gujarat.
► The concept of Maritime University revolves around creating centre of specialised
maritime expertise as well as “cradle of Innovation” and consequently creating suitable
infrastructure to supports its operation

Page
P
Pa
agge
e3
Project Concept

Need for Maritime University

Shortage of Manpower
1) Currently, Gujarat is
facing acute shortage of
manpower for managing its
ports.
2) Huge potential of traffic
growth in near future, and
consequently need for more
manpower
By year 2030, Indian Ocean
and Asia Pacific will be at
the centre stage of the
global container market and
would witness huge growth
in traffic
On domestic front, lot of
freight movement would
happen due to DMIC &
other industrial
Development
Competitive Edge
With new Systems & Opportunity Cost
Technology, there is need for
professionals in newer Losing this Business to
roles other States/ Nations
Research & Development in
Maritime Sector is still at
nascent stage in India,
contemplating greater need
of thrust to R&D
Highly Mechanized &
Internationally the
technology intensive
competing centers are
port operations.
Colombo, Singapore,
Dubai.
Bigger ships with more
specialized Cargo.
Currently there is dearth of
most of the specialized
Logistic management &
services (vis-à-vis
efficiency optimization
chartering, maritime
finance, etc.) in India and
most of these services are
located in Mumbai or
Chennai/ Cochin.

GMBs intends to create “Complete Ecosystems of Port/Shipping Services within State” to make
its ports more attractive & competent.

It is envisaged that the proposed Gujarat Maritime University, during the initial years would offer
programs on commercial areas such maritime management, maritime law, maritime policy etc. Over a
period of time, it can also offer programs focused on technical areas.

The University is proposed to be set up as a State Private University under Gujarat State Private
University Act, 2009 in Gandhinagar or Ahmedabad. A total of 100 acres of land is recommended for
setting up the University.

Page 4
Market Potential

Maritime Outlook
According to the Lloyd Institute report “Global Marine Trends 2030”, the marine world in 2030 will be
fundamentally different than today’s world owing to the rise of emerging countries, new consumer
classes and resource demand. China, India and Brazil will sit in the top 5 list in terms of GDP
ranking. China alone will contribute about 20% of the global GDP, followed by India. The traditional
developed countries, such as USA, Japan and Western European Countries, will gradually lose their
economic dominance in the next two decades.

This will lead Asia (and in turn India) to witness the strongest growth and will be the new center of
the world, with Indian Ocean and Asia Pacific at the center stage of the global container market.
Consequently, our ports have to plan for capacity, which can give us maximum of this action in near
future.

Expected Global Maritime Traffic Routes and the Traffic Density in 2030

Source: Lloyds Report

Gujarat has been a natural choice of maritime trade since very beginning. The unmatched growth
in port capacity and traffic is largely attributed to
ƒ Proactive policy mechanism of the state
ƒ Greater industrial investments coming to the state and
ƒ Gujarat’s Port Led Development Model.

Capacity Traffic
466 MMTPA 339.7 MMTPA

Page 5
 Market Potential

There are more than 130 approved training institutes in India registered with DG Shipping which
offer pre-sea and post-sea training programmes. Majority of the programs offered by Indian
maritime education institutes cater to the technical job roles (mainly seafarers - deck officers and
marine engineers)

Leading global maritime educational institutes focus on both technical and commercial areas

Canada Sweden

UK
USA China

Netherlands
South Korea

Malta

Singapore

Australia

Canada USA
► Nova Scotia Community College ► Maine Maritime University
► Memorial University of Newfoundland ► State University of New York
► Dalhousie University ► Massachusetts Maritime Academy

Sweden Malta
► World Maritime University ► IMO International Maritime Law Institute

UK Netherlands
► Plymouth University ► Erasmus Centre for Maritime Economics and
► Southampton Marine & Maritime Institute Logistics
► Lloyds Maritime Academy ► NMU-STC
► CASS Business School
► Institute of International Shipping & Trade South Korea
Law, Swansea University ► Korea Maritime & Ocean University

China Australia
► Dalian Maritime University ► Australian Maritime College, University of
► Shanghai Maritime University Tasmania

Singapore
► Singapore Maritime Academy, Singapore Polytechnic

Page 6
Market Potential

Major Centre of Excellence in Maritime Education in India

Maritime Engineering
Mumbai, Chennai, Kolkata

Ship Design & Repair Vishakapatnam

Maritime Law Chennai

Maritime Security &

Port Management Chennai, Kolkata

Maritime
Environment
None in India

Maritime Finance &

Insurance

Page 7
Market Potential

Maritime Institutes approved by DG Shipping in India

No. of
State Intake
Institutes
Maharashtra 50 16,498
Tamil Nadu 38 13,072
West Bengal 14 4,147
Kerala 7 2,122
New Delhi 6 3,527
Goa 5 992
UP 5 2,065
Gujarat 3 286
Andhra
3 388
Pradesh
Haryana 3 1,255
Uttarakhand 2 292
Bihar 2 384
Orissa 2 500
Karnataka 1 248
Andaman &
1 246
Nicobar
Telangana 1 136
Total 143 46,148

Comparison of technical and commercial programs offered by Indian and Global institutes shows
that
► Indian institutes are focused on technical programs. Very few programs related to commercial
aspects are offered in India
► On the other hand, global institutes offer programs in both technical and commercial disciplines
► Industry collaboration is predominant at Global level. Some of the institutes like STC,
Netherlands has Industry led Board of Governance
► Choices for Doctoral programmes are very few at National Level

Page 8 Source: DG Shipping

Market Potential
Demand & Supply

► It is estimated that there would be a shortage of

about 0.10 to 0.28 million qualified manpower in
“Shortage of
the maritime industry over next decade.
about 0.10 to
0.28 million
► Approx. 60% - 99% of the demand supply gap in
qualified
the maritime sectors would exist in ‘Operational
manpower in
Support Services’ and ‘Business Services
the maritime
Sector”
industry over
next decade.”
► Currently very few programs are focused on
commercial aspects of the maritime industry.
Approximately 8% of intake capacity in
Degree/Diploma programs and 2% of intake
capacity in Certification programs are focused
on commercial sectors/subsectors. This results
in huge demand supply gap of qualified Approx. 60% - 99%
manpower in commercial sectors as globally the of the demand supply
jobs in commercial disciplines accounts for gap would exist in
about 49% of the overall maritime sector jobs. ‘Operational
Support Services’
► The major technical programs offered are and ‘Business
programs in Nautical Science and Marine Services Sector”
Engineering focused on producing deck cadets
and marine engineers for ships. However,
admitted intake in these programs approved by
DG Shipping is witnessing a decreasing trend Commercial
and the capacity utilization in 2013 was approx. Discipline
46% and 57% respectively.. accounts for 49%
to the overall
► Maritime Industry is critical contributor to India’s maritime sector
Economy as it is expected to increase its jobs globally
contribution to GDP from currently 1.5 – 2% to
~4 % by 2025.
► Large employment generation potential, the Government intends to generate additional
employment for 2.5 million persons (0.5 million direct and 2.0 million indirect) by 2020 in
maritime related areas.

► Gujarat has the longest coastline of all states in India and handles more than 40% of the total
national cargo. However, its contribution of the total maritime sector jobs in India is merely 16%.
There only 3 DG shipping approved institutes in the state with a total intake capacity of these
institutes only 286. Also, none of the 3 institutes offer programs focused on commercial aspects
of the maritime sector.

► Employment Opportunities: The development of proposed maritime cluster in Gujarat would

bring maritime services business to the state.

Page 9
Growth Drivers

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

Robust Future Development of Ports in Gujarat

► Capacity Augmentation: Gujarat’s non-major ports
capacity is expected to reach 864 MMTPA by FY20,
which would require ~52% of the total capacity
augmentation at all non-major ports of India.
► Development of Port Cities and Port based
SEZs: Government of Gujarat (GoG) and GMB have
planned to develop port cities and SEZs at Mundra
and Pipavav.
► Maritime Cluster and Maritime University to
promote positive synergies between participating
entities (both port and non-port based), enhance
competitiveness and grow the local maritime
economy.
► Shipbuilding parks: Gujarat being hub for
Shipbuilding in India and with the special incentives
declared by GoI for Shipbuilding yards, many
shipyards shall set their base in Gujarat.

Page 10
Gujarat - Competitive
Advantage
► Gujarat has 45 ports and both Gujarat
and Maharashtra constitute 47% of the
total national port numbers.
► The total traffic volumes of non-major
ports continued their upward trajectory
with 45% share in traffic handled at Indian
ports in 2014-15.
► Traffic at GMB ports have increased at
CAGR of 13% from 2003-04, while for
Major ports, the traffic has increased at a
CAGR of only 4.9%.
► Contrary to the sluggish pace of economic
development during 2014-15 in India and
around the world, GMB has achieved a
fair increase of 8.5% in the traffic, while
the traffic at Major Ports has grown by 4.7
% during the year 2014-15. ► Gujarat ports account for 40.7% of traffic
in the total national port traffic – more
than any other State. Out of this, the Non-
Major ports of Gujarat constitutes 32%
Share of GMB in Total Maritime share. • With 336.1 MMT, Gujarat
traffic in India accounts for 71.4 % of traffic for non-
major ports of India in 2014-15.
► India’s most advanced VTMS unveiled in
Traffic at GMB the Gulf of Khambhat
Ports
32% ► The traffic at private ports under GMB
National
has grown at an impressive CAGR of
maritime traffic 24% during past five years
68% excluding GMB
Share of GMB in Total Traffic at
Non-Major Ports

26% Traffic at GMB

► The major share in Indian bunker market Ports
is taken up by Mundra port located in
Traffic at Non-
Gujarat. Bunkering is available majorly at Major Ports
Mundra and Kandla and to some extent at
74%
Bedi, Jamnagar, Rozi, Sikka, Vadinar &
Navlakhi.

Page 11 Source: Gujarat Maritime Board

Gujarat - Competitive
Advantage

Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many
areas of manufacturing and infrastructure sectors. Gujarat’s SDP (State Domestic Product) at
current price registered a growth of 11% during the year 2014-15.

Gujarat contributes around 17.2 % to the country’s industrial output whereas the value of output
registered is about 18.5%.

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

Ease of Doing Business: Only state which comply 100% with Environmental procedures.
Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a
construction permit

Gujarat is the one of the power surplus states in the country as a result it helping in bringing huge
amount of investment from the industries and tagged as preferred investment destination in the
country

Gujarat contributes around 19.1 per cent to India’s total exports of goods in 2014-15.

Gujarat credited with India’s First LNG chemical port terminal at Hazira

Salt Processing 75%

Gujarat has a lions share in the
national output for some of the Diamond
70%
products vis-à-vis salt processing, Processing
diamond polishing, petrochemicals, Petrochemicals 62%
chemicals, and pharmaceuticals.
Chemicals 51%
Gujarat is considered to be hub for
Engineering, Auto & Auto components Pharmaceuticals 45%
industry.
Engineering 18%

Gujarat has World’s Largest grass root petroleum refinery at Jamnagar by Reliance Industries
Limited with a crude processing capacity of 1.24 million Barrels Per Stream Day (BPSD)

Page 12 Source: DIPP, Gujarat State Socio Economic Review 2015-16

Source: Socio Economic Review of Gujarat 2015-16
Project Information

Location

► Ahmedabad – Gandhinagar are the

potential locations for setting up
Maritime University which will attract
both quality students and faculty. Also, Gandhinagar
it would ensure easy connectivity,
proximity to industry/academia hub, Ahmedabad
availability of basic resources, and
better quality of life.
► Ahmedabad – Gandhinagar outscores
other locations on parameters such as
presence of educational institutes,
availability of the human resource
talent, quality of life, infrastructure,
enabling support ecosystem

Logistics & Connectivity

Rail Road

► Gandhinagar and Ahmedabad is ► The city is connected to Delhi Mumbai

connected via rail broad gauge to
Delhi and Mumbai
► Railway line passes by the site on the
west (to Delhi) and east (to
Himmatnagar)
► Metro Rail is under construction in
Ahmedabad and Gandhinagar
Industrial Corridor (DMIC). DMIC is
intended to be the manufacturing hub
serviced with world class infrastructure.
► The cities are easily accessible from NH-8
(Delhi to Mumbai)..

Air Port

► Ahmedabad has an international airport
with cargo handling capacity of ~50,000
tonnes per year.
► A new international airport at Dholera is
under development which is expected to
become operational by 2018.
► The cities are connected to several leading
sea ports such as Dahej, Kandala, Mundra
and Nhava Sheva sea port.
► All operational ports are located within a
300 km radius and can be accessible within
5-6 hours.

Page 13 *Source: Socio Economic Review of Gujarat 2015-16, GMB

Project Information

Maritime Industry globally can broadly classified into technical and commercial sectors. The
technical and commercial area comprises of sub-sectors as mentioned below:

Technical Commercial
ƒ Shipping ƒ Shipping Logistics
ƒ Ports Operation ƒ Maritime Law
ƒ Coastal Operations ƒ Ship Management
ƒ Maritime infrastructure ƒ Crewing Services
ƒ Fisheries/aquaculture ƒ Business Services
ƒ Offshore Energy - Chartering
ƒ Mining, etc. - Surveying
- Contracting
ƒ Other Regulatory aspects like policy,
environment safety, etc.

Majority of the programs offered by Indian

maritime education institutes cater to the
technical job roles in the industry (majority –
deck officers and marine engineers). A small
number of institutes offer programs catering
to the commercial needs of the industry.
Whereas, leading global education institutes
offer programs focused on both technical
and commercial disciplines.

A strong case for establishment of an apex institute for

maritime research, education and training in the country
due to following reasons:
► Lack of educational institutes focused on commercial
aspects of maritime education
► High manpower demand supply gap especially in the
commercial areas of the maritime sector
► High importance of the maritime sector to growth of
country’s economy
► Sagarmala Initiative to boost maritime economy
► Prowess of the State in the maritime sector with its
long coastline, lions share in national sea cargo
handling and high employment generation potential
► One of the most industrialized State

Page 14
Project Information

Phase - I (6 Years)
The proposed programs during Phase I (6 years) are:

School of Maritime
Management

School of
School of Policy and
Maritime Law
Administration

Center of Continuing Center of Executive

Education Education

During Phase 1, the University would offer programs focused on commercial aspects of the
maritime industry such as logistics, law, maritime management, shipping trade and finance, etc.
Programs for working professionals are also proposed to be launched in Phase 1.

Phase-II (Next 6 Years)

School of Marine Technology

University would offer
program on technical
disciplines such marine
engineering and nautical
School of Liberal Arts and Social Sciences
science and it would also
diversify into liberal arts
and social sciences.

Center of Faculty development

Page 15
Project Information
Collaboration Areas

GMB has signed Memorandum of

Understanding with Global MET
Support Centre of Korea Maritime &
Ocean University and Plymouth
University, UK for future collaboration
for establishment of programs of
exchange and collaboration in areas
of mutual interest towards the
establishment and operation of a
successful Gujarat Maritime
University”

Key areas in which industry can collaborate are.

Financial and Technical assistance for setting up world class Center of

Excellence (CoE) (Estimated investment INR 10 – 30 crores). Some of the
potential areas include:
► Chartering and broking
► Maritime Law and Insurance
► Port Management and Economics
► Logistics Management
► Industry is also welcome to set up a Center of Excellence in other
areas of interest.

Setting up chair professorships to attract world renowned faculty to

undertake research and teaching at global standards. (Estimated
investment INR 5 – 10 crores). Some of the potential departments for
setting up the chair professorships include:
► School of Maritime Management – focus on logistics, shipping and
port management
► School of Maritime Law, Policy and Administration
► School of Marine Technology – focused on marine engineering and
nautical science

Academic Capability Development by companies in the areas of shipping

logistics, maritime law, ship management, crewing services, chartering,
surveying

Collaborative Research Program with the University

Funding Support by companies across the value chain of maritime sector

Technical Infrastructure Development by shipping companies, port operators, etc.

Page 16
Project Information

Project Structure & Implementation Model

Gujarat Maritime University can be established through Gujarat Private University Act, 2009 by a
sponsoring body or a society registered under the Societies Registration Act 1860 and Bombay
Public Trusts Act 1950. The project can be developed under different models such as EPC or PPP.
Industry involvement & collaboration is one of the key factors that will act as a catalyst to scale
heights in its quest of becoming an ivy league institute in maritime sector.

Possible Collaboration

Canada UK
► University of Newfoundland ► Lloyds maritime Academy
► Dalhousie University ► University of Southampton
► Nova Scotia Community College ► Plymouth University

South Korea
► Korea Maritime and Ocean University

USA
► Maine Maritime Academy
► State University of New York
► Florida Institute of Technology
► Massachusetts Maritime Academy

Key Considerations
► The pace of development of a University & its success will depend on several factors such as
adequate funding, research related activities by the faculty, national and international economic
conditions, maritime sector outlook, talent attractiveness, etc.
► The execution of the project is subject to necessary approvals from regulators.
► The cost of the project is based on set of assumptions and subject to change

Page 17
Project Financials

Key Assumptions
► Land Requirement – 100 Acres
► Revenue Stream – Student Fee, Revenue from Consulting Assignments
► Student Fee would comprise of about 90% of the total revenues and only 10% revenue would
come from Consulting Assignments
► Contingency Expenses have been assumed to be 10% of total Capital Expenditure
► Phase I – About 420 Students, Phase II – About 4600 Students
► Faculty Student Ratio – 1:10
► Ratio of non-teaching staff to teaching staff – 1:1

Project Cost

The total cost of the project is about INR 861 crores of which Phase-I accounts for about INR 275
crores whereas Phase-II is about INR 586 crores.

Phase – I Phase – II
Project cost components
Costs (INR Crore) Costs (INR Crore)
Building 103.0 516.0
Land 104.7 -
Lab Equipment 0.3 3.9
IT Equipment 1.2 5.8
Library Expenses 1.8 7.4
Preliminary and Pre-operative Expenses 4.2 -
Sub-total 215.2 533.1
Contingency Expenses 21.5 53.3
Operating Deficit 38.0 -
Total 275.0 586.4

Project Finance
The construction period is assumed to be two years for phase I and the debt to
equity ratio is assumed to be 1. Option of capital funding in form of
grant/donations for infrastructure development can also be tapped.

Page 18 INR 68 = 1 USD

Approvals &
Incentives
Approvals
► Submission of an application and proposal along with Detailed Project Report as prescribed
under Gujarat Private Universities Act, 2009 to the Higher Education Department, Govt. of
Gujarat with the prescribed application fee.
► Registration under Section 2 ( F) and 12 (B) of UGC Act with University Grant Commission
► Registration under 80 (G), 80 (G) (iii) (2) (b), 10 ( 23) (C), 35 (c) of Income Tax Act with Income
Tax Authority
► Necessary approvals and clearances from State Fee Regulatory Committee and State Admission
Regulatory Committee
► Necessary clearances and approvals from concerned departments vis-à-vis Legal Department,
Finance Department, etc.
► CoEs in Gujarat are governed by the Gujarat Professional Technical Educational Colleges or
Institutions (Procedure for declaration of Centre of Excellence) Rules, 2014.

Incentives
► The Ministry of Skill Development & Entrepreneurship, through its various agencies and
programs, provides various incentives for corporates that setup Corporate Skill Excellence
Centres as part of their core business or CSR activities.

Agency name Incentive

Government of India (GoI) has committed over INR 2,500

National Skill Development Fund
crore in investment through NSDC in promoting PPP
(NSDF)
models.

Under Section 35 CCD of the Income Tax Act a company

National Skill Development Agency can avail benefits of weighted tax deductions of 150% of
(NSDA) the expenses (other than land or building) incurred on skill
development projects.

Application of Service Tax Exemption

National Skill Development
Corporation (NSDC), Sector Skill
Council (SSC) and/or Assessment
Agency approved by NSDC/SSC
• Vocational education/training/skill development courses
offered by any institution setup by the Government of India,
State Government or any local authority
• Any service provided by NSDC Training Partner, SSC,
Assessment agency approved by NSDC/SSC

Page 19
Incentives

Govt. of Gujarat provides financial assistance for setting up of CoEs

Operative Period From 26/02/2013 to 25/02/2018

State/State institution/industrial units/professional institute in PPP

Eligibility of institutions
mode

Centre of excellence promoting value addition in sub sector of Auto

and Auto Component, Solar and Wind equipment Manufacturing,
Eligible Projects Specialty and Fine Chemical, Electronic System Design and
Manufacturing, Food and Agro Business and in area of Innovation and
entrepreneurship

Assistance shall be 70% of total expenditure, including recurring

expenditure for three years, limited to
Assistance available ► INR 20 crore in case of national level CoE

► INR 30 crore in case of international level CoE

Govt. of Gujarat provides financial assistance for setting up Anchor Institute

► Financial support for capital expenditure maximum up to Rs. 5 crores out of total assistance of
Rs. 10 crores during operating period
► Financial support for operating expenditure maximum up to Rs. 5 crores out of total
assistance of Rs. 10 crores during operating period

Financial assistance for Specialized Skill Development Areas

► Assistance to the extent of 50% of the project cost, maximum of up to Rs. 2 crore.

Page 20
 Gujarat Maritime Board
www.gmbports.org

Ports & Transportation Department, Government of Gujarat

www.pnt.gujarat.gov.in

Education Department, Government of Gujarat

www.gujarat-education.gov.in

Industries & Mines Department

www.imd-gujarat.gov.in

Industrial Extension Bureau

www.indextb.com

Directorate General of Shipping (DGS)

www.dgshipping.gov.in

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.

‘SAGAR BHAVAN’ Sector 10-A,

Gandhinagar - 382010. Gujarat (India)
Phone: +91 79 23238346 +91 79 23238347
Fax: +91 79 23234703
Email: info@gmbports.in
www.gmbports.org