Indian port growth story satya pal 04.02.2011

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Presented in an Infrastructure conference (http://infrastructure.ipfedge.com/about-the-event/) organized by Bharat Chambers of Commerce on 4th February 2011 at Taj Bengal, Kolkata, Salva Resources(http://salvaresources.com/) has taken an alternative view point on Indian port growth story and shared some of its concern.

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Indian port growth story satya pal 04.02.2011

  1. 1. Indian Port Growth Story: Other Side of the Coin Satya Pal Business Analyst- Infrastructure spal@salvaresources.com 04.02.2011“Infrastructure: The Global Growth Driver” Hotel Taj Bengal, Kolkata, India
  2. 2. Introducing Salva Resources Salva Resources is a global provider of key technical and commercial services to the mining industry. Mining Consultancy Salva Market Analytics Exploration Management Custom Consulting Resource Modeling Outlook Series 2011 Mine Planning Data Products Equipment Supply Salva Report Coal Marketing India Unlocked Due Diligence Data BaseInfrastructure: The Global Growth Driver 13-4 February 2011; Hotel Taj Bengal, Kolkata, India
  3. 3. Our Locations International Head Office Indonesian Office Level 11, 82 Eagle Street Level 3, Bhumyhamca Sekawan Building Brisbane, QLD 4000 Raya Cilandak KKO Street Australia Garden Centre Cilandak Commercial Estate Ph: +61 7 (0) 3211 9911 Jakarta, Indonesia info@salvaresources.com Ph: +62 (81) 5164 8205 info@salvaresource.com Indian Head Office 6th Floor, DN24 Matrix Tower, Sector V Salt Lake City Kolkata, 700 091 India Ph: +91 (0) 33 6522 1030 info@salvaresources.comInfrastructure: The Global Growth Driver 23-4 February 2011; Hotel Taj Bengal, Kolkata, India
  4. 4. Our ProjectsInfrastructure: The Global Growth Driver 33-4 February 2011; Hotel Taj Bengal, Kolkata, India
  5. 5. Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or the reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. The map of India shown is for illustrative purposes only and does not confirm to the geographical boundaries of the country. This presentation should not be relied upon as a recommendation or forecast by Salva Resources.Infrastructure: The Global Growth Driver 43-4 February 2011; Hotel Taj Bengal, Kolkata, India
  6. 6. Indian Port Growth Story: Other Side of the Coin Agenda Current state of play Road ahead Concerns and suggestionsInfrastructure: The Global Growth Driver 53-4 February 2011; Hotel Taj Bengal, Kolkata, India
  7. 7. Current State of PlayElectricity (incl. NCE) Electricity (incl. NCE) XIth Plan (Original Projections) XIth Plan (Revised Projected)Roads & Bridges Roads & BridgesTelecommunications TelecommunicationsRailways (incl. MRTS) Railways (incl. MRTS)Irrigation (incl. Irrigation (incl.Watershed) Watershed)Water Supply & 4.28% 1.98% Water Supply &Sanitation SanitationPorts (incl. Inland Ports (incl. Inlandwaterways) waterways)Airports AirportsStorage StorageOil & gas pipelines Total: INR 2,056,150 Crore Total: INR 2,054,205 Crore Oil & gas pipelines Port: INR 87,995 Crore Port: INR 40,647 Crore Sector wise Revision in Port Investment 100 4 80 INR Thousand Crore 60 54 40 3 20 33 30 - 5 Source: Planning Commission, XI Plan (Original Projections) XI Plan (Revised Projected) Government of India Infrastructure: The Global Growth Driver There has been mismatch in planning and execution especially from central sector Centre Private 3-4 February 2011; Hotel Taj Bengal, Kolkata, India States 6
  8. 8. Current State of Play Sagar Island Project Vizhinjam Port Chennai Mega Container Terminal Project delay and overcapacity are the main reason for these shortfalls in investmentInfrastructure: The Global Growth Driver3-4 February 2011; Hotel Taj Bengal, Kolkata, India Source: Salva Research 7
  9. 9. Current State of Play Coal Import Demand Forecast (Mt) 500 400 387 300 233 200 231 144 100 100 154 64 87 0 36 2010 2015 2020 Coking coal Non coking coal Total Mundra Kandla Magdalla Haldia Pipavav Hazira Dhamra Paradip Mumbai Jaigad Vishakhapatnam Gangavaram Kakinada Mormugao Karwar Belekeri Krishnapatnam New Mangalore Ennore Chennai Cochin Karaikal Tuticorin Operational ports Demand for both Coking as well as Thermal2010 grow in medium toResearchInfrastructure: The Global Growth DriverIndian bulk ports: coal3-4 February 2011; Hotel Taj Bengal, Kolkata, India Source: Salva long term 8
  10. 10. Road Ahead Mundra Kandla Salaya Dahej Magdalla Talsara Haldia Hazira Kirthania Sagar Island Pipavav Dhamra Valsad Dighi Paradip Mumbai Astaranga Gopalpur Jaigad Vishakhapatnam Gangavaram Kakinada Mormugao Machilipatnam Operational ports Karwar Belekeri Krishnapatnam Upcoming ports New Mangalore Ennore Chennai Cement Plants Cochin Karaikal Steel Plants Caddulur Tuticorin Power PlantsInfrastructure: The Global Growth Driver Demand for differentbulk ports: 20203-4 February 2011; Hotel Taj Bengal, Kolkata, India Indian coal will have regionalSource: Salva Research bias 9
  11. 11. Road Ahead Mega/ Ultra Mega Power Projects and major Steel plants are planning captive ports Project name Industry Developer Capacity Coal requirement Captive Port Mundra Thermal Power Project Power Adani Power Ltd 4620 MW 14.45 Mtpa Mundra SEZ Ratnagiri Power JSW Energy Ltd 1200 MW 4.14 Mtpa Jaigarh port Salaya Thermal Power Plant Power Essar Energy 1200 MW 4.20 Mtpa Salaya port Hazira Integrated Steel Plant Steel Essar Steel 9 Mtpa 1.50 Mtpa Hazira port Jagatsinghpur Integrated Steel Plant Steel Posco India Pvt Ltd 12 Mtpa 14.00 Mtpa Jatadhari Muhan Kalinganagar Steeel Plant Steel Tata Steel 6 Mtpa 3.96 Mtpa Dhamra port Or they will have a long term cargo agreement with some port Project name Industry Developer Capacity Coal requirement Anchored Port Tata Mundra UMPP Power Tata Power 4000 MW 15.94 Mtpa Mundra SEZ Krishnapatnam UMPP Power Reliance Power Ltd 3960 MW 15.46 Mtpa Krishnapatnam port Source: Salva Research Development of ports in India will be driven by end user industry and not vice versaInfrastructure: The Global Growth Driver3-4 February 2011; Hotel Taj Bengal, Kolkata, India 10
  12. 12. Road Ahead State should encourage investors and the central government should facilitate earlyInfrastructure: The Global Growth Driver 11 execution of projects, projects deficit states Salva Research Orissa port3-4 February 2011; Hotel Taj Bengal, Kolkata, India in port Source:
  13. 13. Road Ahead Mumbai Jaigad Vishakhapatnam North Goa Gangavaram Durg Kakinada Machilipatnam Mormugao Nijampatnam South Goa Karwar Belekeri Krishnapatnam Bellary New Mangalore Guntur Ennore Chennai Cuddalore Chitaurgarh Karaikal Nellore Cochin Tuticorin Chikmagalooru Ongole Iron ore deposits More detailed analysis is required while assessing the viability of a port, in a portInfrastructure: The Global Growth Driver 12 Iron ore deposits and relevant ports in India Source: Salva Research3-4 February 2011; Hotel Taj Bengal, Kolkata, India surplus region
  14. 14. Concerns and Suggestions Concerns Potential private port projects are suffering from undue delay In medium term Indian port will experience regional over capacity Central government, States and Industrialists are not on a common platform Suggestions Centre and state government needs to work more closely for the common goal. State should facilitate and let the market prevail Rather than adding a new terminal in major ports, central government should emphasize on increasing efficiency We should not forget that our conservative spending behavior was one of the reasonsInfrastructure: The Global Growth Driver 13 why we were not badly affected by Global Financial Crisis3-4 February 2011; Hotel Taj Bengal, Kolkata, India
  15. 15. Thank You!Infrastructure: The Global Growth Driver 143-4 February 2011; Hotel Taj Bengal, Kolkata, India

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