Ports Sector Report May 2017

11MAY 2017
PORTS
MAY 2017 (As of 11 May 2017) For updated information, please visit www.ibef.org

22MAY 2017 For updated information, please visit www.ibef.org
❖ Executive Summary…………………………3
❖ Advantage India……………………….……..5
❖ Market Overview & Trends………………….7
❖ Porter Five Forces Model Analysis ………18
❖ Strategies Adopted………………..……….20
❖ Growth Drivers………………………..…….22
❖ Opportunities………………………………..39
❖ Success Stories………………..………. ….41
❖ Useful Information…………………………..47
PORTS
MAY 2017

33MAY 2017
466.1
815.2
FY16 FY17E
606.37
943.1
FY16 FY17E
For updated information, please visit www.ibef.org
Source: Ministry of Shipping, TechSci Research
Notes: E – Estimates, MMT - Million Metric Tonnes
PORTS
By FY17, cargo capacity in
India is expected to increase to
2,493.1 MMT from 1,806.8
MMT in FY15
Increasing trade activities &
private participation in port
infrastructure set to support
port infrastructure activity
By FY17, cargo traffic at major
ports in India is expected to rise
to 943.1 MMT from 606.37
MMT in FY16 at a YoY of 55.53
per cent
India has 12 major ports
By FY17, cargo traffic at non-
major ports in India is expected
to grow to 815.2 MMT from
466.1 MMT in FY16
India’s 200 non-major ports are
strategically located on the
world’s shipping routes
EXECUTIVE SUMMARY … (1/2)
CAGR: 55.53%
CAGR: 17.5%
1806.8
2493.0
FY15 FY17
MMT
CAGR: 75%
MMT

44MAY 2017
43.6
228
FY15 FY17(E)
MMT
8.20
21
FY16 FY17E
Notes: FY17 (E) – Estimates, TEU – Twenty Foot Equivalent Unit, MMT - Million Metric Tonnes
PORTS
By FY17, container demand in
India (For major ports) is
expected to increase to 21
million TEU from 8.2 million
TEU in FY16
Trade to boost demand for
containers
By FY17, iron ore traffic (For
Major & Minor ports) is
expected to rise to 228 MMT
from 43.6 MMT in FY15
Infrastructural development to
increase demand for iron &
steel
EXECUTIVE SUMMARY … (2/2)
CAGR: 156%
CAGR: 128.7%

66MAY 2017
Growing demand
ADVANTAGE INDIA
Source: Report of the Task force on Financing Plan for Ports, Govt. of India, TechSci Research
Notes: FY – Indian Financial Year (April–March), NMDP – National Maritime Development Programme, FDI – Foreign Direct Investment, USD – US Dollar,
E – Estimated, MMT – Million Metric Tonnes, CAGR – Compound Annual Growth Rate
Robust demand
• Port traffic in India is set to rise at a CAGR of
29.2 per cent over FY15–17
• CAGR in traffic :
• Non-major ports: expected to increase
by 140.5 per cent to 815 MMT by 2017
from March 2016
• Major ports: expected to increase by
55.5 per cent to reach 943 MMT by
2017 from FY16 (April-December 2015)
Attractive opportunities
• Non-major ports are set to benefit from
strong growth in India’s external trade
• Special Economic Zones are being
developed in close proximity to several
ports – comprising coal-based power
plants, steel plants & oil refineries
Policy support
• The government initiated NMDP, an
initiative to develop the maritime sector;
the planned outlay is USD11.8 billion
• FDI of 100 per cent under the automatic
route & a 10n year tax holiday for
enterprises engaged in ports
• Plans to create port capacity of around
3200 MMT to handle the expected traffic
of about 2500 MMT by 2020
Competitive advantages
• India has a coastline which is more than
7,517 km long, interspersed with more
than 200 ports
• Most cargo ships that sail between East
Asia & America, Europe & Africa pass
through Indian territorial waters
• India is the largest importer of thermal
coal in the world
FY16
Cargo
traffic in
MMT:
1072.47
FY17E
Cargo
traffic in
MMT:
1,758.3
Advantage
India
PORTS

MARKET OVERVIEW AND TRENDS
PORTS

THERE ARE TWO BASIC CATEGORIES OF PORTS IN INDIA
Source: Ministry of Shipping; TechSci Research
PORTS
• There are 12 major ports in the
country; 6 on the Eastern coast
& 6 on the Western coast
• Major ports are under the
jurisdiction of the Government
of India & are governed by the
Major Port Trusts Act 1963,
except Ennore port, which is
administered under the
Companies Act 1956
• India has about 200 non-major
ports of which one-third are
operational
• Non-major ports come under
the jurisdiction of the respective
state Governments’ Maritime
Boards (GMB)
Ports in India (2016)
Major Non-major (minor)

MAJOR PORTS IN INDIA
Note: JNPT – Jawaharlal Nehru Port Trust
PORTS
Mumbai
JNPT
Kandla
Mormugao
New Mangalore
Cochin Tuticorin
Chennai
Ennore
Visakhapatnam
Paradip
Kolkata

1010MAY 2017
463.6
519.2 530.4
561 569.8 560.1 545.6 555.3 581.3 606.37
943.1
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Cargo traffic at major ports (MMT)
Notes: MMT – Million Metric Tonnes,
CAGR – Compound Annual Growth Rate,
FY – Indian Financial Year (April–March),
E – Estimated
Cargo traffic at major ports in India –
Stood at 606.37 MMT in FY16
Increased at a CAGR of 7.4 per cent during FY07–17E
Cargo traffic in 2017 at major ports is expected to reach
943.1 MMT
During April to September 2016, 12 major ports in India
handled 315.4 MT (Million Tonnes) of cargo, showing a
growth of 5.1 per cent in comparison to the same time
during previous year.
As of February 2017, 12 major ports in India witnessed
increase in cargo traffic by up to 7.14 per cent, with handling
535.35 million tonne of cargo in the 1st 10 months of FY17.
As of March 2017, 16 new cargo scanners are to be
installed across major ports in India. In the 1st phase, 5 of
the 13 major ports i.e. Kamarajar (Ennore), New Mangalore,
Jawaharlal Nehru Port Trust, Kolkata & Vizag will receive
the scanners, which should be operational in the next 6
months.
CARGO TRAFFIC IS ON THE RISE … (1/2)
PORTS
CAGR: 7.4%

1111MAY 2017
71.4%
71.8%
71.3%
66.0%
64.4%
61.3%
58.4%
57.1%
55.2%
56.5%
53.6%
28.6%
28.2%
28.7%
34.0%
35.6%
38.7%
41.6%
42.9%
44.8%
43.5%
46.4%
Major Ports Non Major Ports
186.1 203.6 213.2
288.9 314.9 353.0 387.9 417.1
471.2 466.1
815.2
Percentage share of ports
CARGO TRAFFIC IS ON THE RISE … (2/2)
PORTS
Non-major ports are evolving faster than major ports-
Non-major ports are gaining shares & a major chunk of
traffic has shifted from major ports to non-major ports
The contribution of non-major port’s traffic to total traffic
rose to 43.5 per cent in FY16 from 28.6 per cent in FY07
Cargo traffic at non-major ports (MMT)Cargo traffic at non-major ports –
Stood at 466.1 MMT in FY16
Cargo traffic has expanded at a CAGR of 10.7 per cent
during FY07–16 & is expected to grow annually at 15.9 per
cent during FY07-17
Cargo traffic in 2017 at non-major ports is expected to reach
815.2 MMT
Notes: MMT – Million Metric Tonnes, CAGR – Compound Annual Growth Rate,
FY – Indian Financial Year (April–March); E – Estimate
CAGR: 15.9%

Note: Other cargo includes Fertiliser Raw Material (dry) and food-grains
1Data from April 2017-December 2017
Cargo at major ports in FY171
Solid Liquid
(petroleum, oil
and lubricants)
Container
Share: 47.97%
Share: 32.89%
Share: 19.15%
Iron ore
Coal
Fertilizer
Other cargo
Share: 14.06%
Share: 46.09%
Share: 5.03%
Share: 34.82%
CARGO PROFILE AT MAJOR PORTS IN INDIA … (1/2)
PORTS
Solid Liquid
(petroleum, oil
and lubricants)
Container
Share: 46.4%
Share: 33.3%
Share: 20.3%
Iron ore
Coal
Fertilizer
Other cargo
Share: 2.1%
Share: 22.7%
Share: 2.6%
Share: 18.9%

Cargo traffic at major ports (MMT)
Source: Ministry of Shipping; Indian Ports Association (IPA), TechSci Research
1Data from April – December 2016
Note: Other cargo in Solid includes fertiliser raw material (dry) and food-grains
Between FY07– FY17, cargo traffic grew at CAGR 0.38 per
cent
Over FY07–16, CAGR in the volume of different segments
was as follows–
Solid cargo was 2 per cent
Liquid cargo was 3.1 per cent
Container cargo was 6 per cent
Cargo traffic during FY17 (Till December 2016) for solid,
liquid & container cargo was 230.8, 158.2 & 92.13 MMT,
respectively
During April-October 2016, cargo traffic at 12 major ports in
the country was reported at 370.04 MT, showing a growth of
6.27 per cent over the same period during the previous year
CARGO PROFILE AT MAJOR PORTS IN INDIA … (2/2)
PORTS
235.9
258.2
261.2
284.7
276.6
260.9
239.9
253.5
273
287.4
230.8
154.3
168.7
176.1
175.1
179.1
179.1
185.9
187.2
188.9
195.9
158.2
73.2
92.3
93.1
101.2
114.1
120.1
119.8
114.6
119.4
123.18
92.13
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Solid Liquid Container
1

1414MAY 2017
504.8
532.1
574.8
616.7
670.1
689.8
744.9
800.52
871.52
965.36
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
0
200
400
600
800
1000
1200
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Capacity Utilization (RHS)
Capacity and utilisation at major ports (MMT)
Source: Indian Port Association, Ministry of Shipping,
TechSci Research
Note: MMT – Million Metric Tonnes
Capacity at major ports grew to 965.36 MMT in FY16,
implying a CAGR of 7.5 per cent since FY07
Despite capacity increasing, utilisation rates have been
gradually coming down post the global economic
meltdown in FY08
Utilisation rates of major ports in India such as JNPT port,
Kandla port, Ennore port, etc., are much above the world’s
average
As of November 2016, 12 Major Ports were identified
under Sagarmala project, for cargo handling till 2035. The
objective of this project is to promote port led development
& to provide infrastructure to quickly transport goods to &
from ports, with higher efficiency & at lower cost.
Indian Port Rail Corporation Ltd. (IPRCL), plans to conduct
rail infrastructure expansion & modernisation work for
Jawaharlal Nehru Port Trust, Kandla Port & Haldia Dock
Complex from April 2017. Similar works have already
started for Kolkata, Vishakhapatnam, Tuticorin, New
Mangalore & Chennai ports.
Germany’s Deutsche Bahn Engineering & Consulting
plans to form a joint venture with Indian Port Rail Corp. Ltd
(IPRCL) with an aim to connect Indian ports with railways.
Germany and India are working on projects worth
US$14.87 billion being implemented by IPRCL
INCREASE IN CAPACITY OVER THE YEARS
PORTS

Average turnaround time for major ports (in days)
Source: Ministry of Shipping;, Indian Port Association TechSci Research
Note: Turnaround time – Total time spent by a ship from entry into port until departure
1Data from April-December 2016
Average turnaround time is influenced by factors such
as type of cargo, parcel size & entrance channel
The average turnaround time improved to 2.11 days in
FY171 from 4.01 days in FY15
DROP IN TURNAROUND TIME IN FY13
PORTS
3.8
4
4.2
4.63
5.29
4.56
4.29
3.84 4.01
2.04 2.11
1

Increasing private
participation
• Strong growth potential, favourable investment climate & sops provided by state governments
have encouraged domestic & foreign private players to enter the Indian ports sector. In addition to
the development of ports & terminals –
• The private sector has extensively participated in port logistics services
• By March’15, around 99 Public Private Partnership (PPP) projects are operational with a
total cost of around USD8813.8 million & capacity of 683.29 million tonnes per annum.
Setting up of port-
based SEZs
• SEZs are being developed in close proximity to several ports, thereby providing strategic
advantage to industries within these zones. Plants being set up include –
• Coal-based power plants to take advantage of imported coal
• Steel plants and edible oil refineries
• Development of SEZs in Mundra, Krishnapatnam, Rewas and few others is underway
• Government has announced plans to develop 14 CEZs (coastal economic zones) in a phased
manner for port-led development in all the 9 maritime states by advancing efforts to develop 1
new port, each on the east & the west coast
NOTABLE TRENDS IN THE PORTS SECTOR … (1/2)
PORTS
Focus on draft depth
• All the greenfield ports are being developed at shores with natural deep drafts & the existing ports
are investing on improving their draft depth.
• Higher draft depth is required to accommodate large sized vessels. Due to the cost & time
advantage associated with the large sized vehicles, much of the traffic is shifting to large vessels
from smaller ones, especially in coal transportation
Notes: SEZ – Special Economic Zone, PPP – Public-Private Partnership

Specialist terminal-
based ports
• Terminalisation: Focus on terminals that deal with a particular type of cargo
• This is useful for handling specific cargo such as LNG that requires specific equipment &
hence high capital costs. Forming specialist terminals for such cargo result in optimal use
of resources & increased efficiencies
• Examples of specialist terminals: ICTT in Cochin, LNG terminal in Dahej Port
‘Landlord port’ model
• To promote private investments, the government has reformed the organisational model of
seaports –
• From: A ‘service port’ model where the port authority offers all the services
• To: A ‘landlord port’ model where the port authority acts as a regulator & landlord while
port operations are carried out by private companies
• Major ports following ‘landlord port’ model: JNPT, Chennai, Visakhapatnam & Tuticorin
NOTABLE TRENDS IN THE PORTS SECTOR … (2/2)
PORTS
Rising traffic at non
major ports
• With the increasing private participation in establishing minor ports. Cargo traffic handled by the
minor ports are outpacing cargo traffic at major ports, cargo traffic at non major port has
expanded at a CAGR of 31.5 per cent during FY07–15
• The cargo traffic at major ports was 481.20 MMT in FY171
Source: TechSci Research
Notes: ICTT – International Container Transshipment Terminal, LNG – Liquefied Natural Gas,
MMT – Million Metric Tonnes
1Data from April-December 2016
Sanitation
• The Haldia Port of West Bengal was rated as the cleanest port among all the major ports in the
first ever ranking by the Ministry of Shipping. The ranking of major 13 Indian ports was conducted
by the Quality Council of India (QCI) during the 'Swachhta Pakhwada’.

PORTER FIVE FORCES ANALYSIS
PORTS

1919MAY 2017
Source: PricewaterhouseCoopers, Techopak, TechSci Research
PORTER’S FIVE FORCES ANALYSIS
Competitive Rivalry
• Increasing trade activities brought by rising imports of commodities like
coal and crude to generate higher business & limit overall competition
as most ports handle specific geographies
• There have been instances of private managed ports attracting the
share of other ports (usually handled by government agencies) as in
the case of JNPT & Mumbai Port Trust. However, demand expected to
remain strong
Threat of New Entrants
• 100 per cent FDI under
automatic route & income tax
exemption (10 years) is
attracting foreign players.
However, higher capital
expenditure acts as a barrier
• With rising demand for port
infrastructure due to growing
imports (crude, coal) &
containerisation, the threat of
substitute products to remain
weak
Substitute Products
Bargaining Power of Suppliers
• Considerable capacities to be
added going forward. However,
demand to continue to remain
strong
Bargaining Power of Customers
• Imports to continue to remain
strong led by strong demand.
However considerable port
capacities to be added going
forward
Competitive
Rivalry
(Medium)
Threat of New
Entrants
(Medium)
Substitute
Products
(Low)
Bargaining
Power of
Customers
(Medium)
Bargaining
Power of
Suppliers
(Medium)
PORTS

2121MAY 2017
STRATEGIES ADOPTED
• After having a strong advantage on India’s West coast, Adani Ports & Special Economic Zone Ltd
(APSEZ) is looking to strengthen its position by winning the bid of a new container terminal at Ennore
port located on the east coast. Furthermore Adani Ports has acquired Dharma Port to replicate its
development & growth on the eastern coast
• Essar Ports Ltd as a part of it strategic move to increase its potential on the east coast has won the
contract for the modernisation of 3 ports at Visakhapatnam
• Essar Ports Ltd., a leading port operator, plans to build a port in Gujarat with investments worth
US$1.49 billion. For the same, the company has signed a MoU with Gujarat Maritime Board (GMB)
• Geographic diversification as in the case of Adani group acquiring coal mines (Australia & Indonesia)
& setting up coal terminal in Australia to take the benefit of increasing coal imports in India
• As of April 2017, Adani Ports is planning to expand and open a multi purpose port on Carey Island in
Malaysia, as an extension of the Port Klang. A MoU was signed between APSEZ and MMC Port
Holdings Sdn Bhd, a wholly-owned unit of MMC Corporation Berhad
• Adani group, largest private port operator in India, is now venturing into providing allied services like
dredging. Its dredgers which were being used only at its own ports in the past have now started taking
work from other ports
• Adani group has also ventured into the container railway business becoming the largest private link in
the country. It conducts operations on a pan-india basis operating 6 container rakes
Pan-India presence
Geographic
diversification
Allied activities
Container train
operations
• Port authorities are modernizing & upgrading port facilities to meet the needs of the port users in
competitive environment
Modernising
Source: Company website, TechSci Research
PORTS

Note: NMDP - National Maritime Development Programme
SECTOR BENEFITS FROM STRONG DEMAND, PRIVATE PARTICIPATION
PORTS
Growing
demand
Growing demand
Increasing trade
activities resulting
in container traffic
Rising demand for
coal & other
commodities
Growing crude
imports by the
country
Policy support
National Maritime
Development
Programme &
National Maritime
Agenda
FDI of up to 100
per cent under the
automatic route
Various sops &
incentives for
private players to
build ports
Increasing
investments
Increasing
investments in
building ports &
related activities
Private equity
supporting private
port developers
Increasing
investments by
foreign players
Innovation
Expanding port
development &
distribution
facilities in India
Use of modern
technology
Providing support
to global projects
from India
ResultingDrivingInviting

India’s external trade flows (USD billion)
Source: Ministry of Commerce, TechSci Research
CAGR: For Imports from FY09-15
FY171: Data available for April - November 2016
India’s total external trade have grown to USD416 billion in
FY171, implying a CAGR of 4 per cent done since FY09
Ports handle almost 95 per cent of trade volumes; thus
rising trade has contributed significantly to cargo traffic
INDIA’S PORTS ARE BENEFITTING FROM STRONG GROWTH IN EXTERNAL TRADE … (1/2)
PORTS
CAGR: 4%
1
185 179
250
306 300 314 310
262
175
304 288
370
489 491
450 448
381
241
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Exports Imports

Container traffic at major ports (MMT)
Source: Indian Ports Association, TechSci Research
FY171: Data available for April - December 2016
Increasing trade is translating into higher demand for
containerisation due to their efficiency
During FY07–17, container traffic rose to 123.2 MMT,
implying a CAGR of 5.9 per cent
During FY171, container traffic stood at 92.13 MMT
INDIA’S PORTS ARE BENEFITTING FROM STRONG GROWTH IN EXTERNAL TRADE … (2/2)
PORTS
CAGR:
2.30%
1
73.4
92.3 93.1
101.2
114.1
120.1 119.8
114.6 119.4 123.2
92.13

2626MAY 2017
111.5
121.67
132.78
159.26
163.6
171.73
184.8
189.24
189.44
202.85
53.15
Crude imports (MMT)
Source: Handbook of Indian Statistics (RBI),
Petroleum Planning and Analysis Cell, TechSci Research
Notes: MMT – Million Metric Tonnes,
FY171 – Data available for April – June 2016
A consequence of strong GDP growth has been rising
energy demand; the country currently meets about 75
per cent of total crude oil demand by imports
India’s crude imports touched 202.85 MMT in FY16,
implying a CAGR of 6.9 per cent over FY07–16
PORTS TO BENEFIT FROM GROWING CRUDE IMPORTS … (1/2)
PORTS
1

POL traffic (MMT)
Notes: POL – Petroleum, Oil, and Lubricants,
1 Figures from April – December 2016
Private ports have been especially good at attracting
crude import traffic
POL have been the major contributors to total traffic
at ports & contributed 33.3 per cent in FY16
POL traffic at both major & non-major ports added
up to 376.84 MMT in FY16, implying a CAGR of 5
per cent over FY07–15
POL traffic in FY17 reached 349.75 MMT
PORTS TO BENEFIT FROM GROWING CRUDE IMPORTS … (2/2)
PORTS
CAGR: 5%
154.3
168.7
176.1
175.1
179.1
179.1
185.9
187.2
181
195.94
158.25
81.2
91
97.8
137.7
145.4
156.3
168.6
169.8
167.3
180.9
191.5
Major Ports Minor Ports
1

Coal supply gap (import requirement) (MMT)
Source: Ministry of Coal, TechSci Research
Notes: The figures from FY9–14 in the above graph are as per the data
provided by Coal Ministry Annual Reports, and the figure for FY17 is
taken from the erstwhile Planning Commission Report data sourced
from Coal Ministry Annual Report,
India is the largest importer of thermal coal in the world
and this is expected to grow due to increased demand
for power as coal-based power stations were the
biggest contributors.
A major chunk of this import is transported by sea
With growing demand for power, coal imports reached
to be 156.83 MMT in FY16
INCREASING COAL IMPORTS SET TO DRIVE RISING CARGO TRAFFIC … (1/2)
PORTS
Notes:: GW – Gigawatt, MMT – Million Metric Tonnes
CAGR: 19.60%
1
60
83.5
132.2
160.9
192.5
168.5
212.1
156.38
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

2929MAY 2017
59.9
64.9
70.4
71.7
72.7
78.8
86.6
104.1
118.7
126.1
14 15.4 21.5
41.3 58.5
79
109.3
126.3
158.7 144.2
Coal cargo traffic (MMT)
Increasing coal imports are set to drive coal cargo traffic
upwards at both major and non-major ports
With private ports boosting their coal handling capacities,
non-major ports look set to handle majority of coal imports
in the future
Coal cargo traffic has grown at a CAGR of 15.5 per cent
over FY07–16 to reach 270.3 MMT.
Total coal handled by India’s 12 major ports jumped to
126.1 million tonnes in FY16 from 118.7 million tonnes in
FY15
Thermal coal imports through the ports leaped 13.3 per cent
to 98.7 million tonnes, while shipments of coking coal, used
in making steel, reached to 27.35 million tonnes
Coal cargo traffic by minor ports crossed the total traffic of
major ports by 2013. In FY16, the coal traffic by minor ports
reached 144.23 MMT
INCREASING COAL IMPORTS SET TO DRIVE RISING CARGO TRAFFIC … (2/2)
PORTS
CAGR: 15.5%

Focus on increasing
capacity
• To create a port capacity of around 3,200 MT to handle the expected traffic of about 2,500 MT by
2020
Increasing investments
• Proposed investments in major ports by 2020 are expected to total USD18.6 billion, while those in
non-major ports would be USD28.5 billion
PORTS
World-class
infrastructure
• To implement full mechanisation of cargo handling & movement at ports, thereby bringing Indian
ports on par with the best international ports in terms of performance & capacity
Strategically building
ports
• To develop 2 major ports (1 each on East & West coast) to promote trade as well as 2 hub ports (1
each on the West coast & the East coast) – Mumbai (JNPT), Kochi, Chennai & Visakhapatnam
• India & Tajikistan to work closely on developing trade & transport links through the Chabahar Port
• In April 2017, Indian government has approved MoU on passenger cruise services on the coast and
protocol routes between India and Bangladesh to commence regular movement of tourists and
passengers in vessels between the two countries.
Bringing ports under
regulator
• To establish a port regulator for all ports in order to set, monitor & regulate service levels, technical
& performance standards
NATIONAL MARITIME AGENDA 2010–2020 … (1/2)
Landlord ports
• Major ports have been working towards implementing ‘Landlord port‘ concept duly limiting their role
to maintenance of channels & basic infrastructure leaving the development, operation, management,
of terminal & cargo handling facilities to the private sector

Note: EXIM - Export-Import,
MT – Million Tonne
National Maritime Agenda 2010–20 is aimed at all-round development of the Indian maritime sector
As per the National Maritime Agenda, the government is likely to create port capacity of 3200 MT for handling about 2500
MT of cargo, by 2020
Agenda involves investments in new projects at major ports of around USD18.6 billion, of which USD12.4 billion is expected
to come from private sector players & the remaining from budgetary allocation
The total traffic on the Indian ports is expected to grow from about 2229 in 2018 and reach to 3033 MT by the end of 2020
The government, through this policy, aims to increase the tonnage under the Indian flag & Indian control as well as the
share of Indian ships in EXIM trade
The government is also working to float a specialised Maritime Finance Corporation with the equity of ports & financial
institutions to fund the Port projects
To boost the state’s future maritime development, the Gujarat Maritime Board and the Port of Rotterdam inked a strategic
tie-up to seek expertise from the latter in a slew of projects including planning for new ports and churning out skilled
professionals in shipping and transport sectors.
PORTS
NATIONAL MARITIME AGENDA 2010–2020 … (2/2)

12TH FIVE-YEAR PLAN
Planned capacity 12th Five-Year Plan (MMT)
The 12th Five-Year Plan (2012–17) is focused on the development of major & non-major ports through public & private
investments
The proposed outlay for port sector in the plan, excluding private investment, is USD4.9 billion
The overall projected traffic of 1,758.3 million tonnes to be achieved by FY17, the total capacity of the port sector is
envisaged to be 2,289.04 million tonnes by the end of 2017
The government anticipates private sector investment of around USD28.8 billion during the 12th Plan Period.
As of March 2017, government is planning to sell 51 per cent of its 73.47 per cent stake in Dredging Corporation.
Projected traffic12th Five-Year Plan (MMT)
PORTS
689.9
544.7
1,229.2
1,059.8
Major Ports Non- Major Ports
FY12 FY17E
560.1
370.0
943.1
815.2
Major Ports Non- Major Ports
FY12 FY17E Source: E:Estimated

De-licensing and tax
holidays
• The government has allowed FDI of up to 100 per cent under the automatic route for projects related to
the construction and maintenance of ports & harbours
• A 10-year tax holiday to enterprises engaged in the business of developing, maintaining, & operating
ports, inland waterways & inland ports
Source: Ministry of Shipping; TechSci Research;
Note: FDI – Foreign Direct Investment
FAVOURABLE POLICIES ASSISTING THE PRIVATE SECTOR
PORTS
Price flexibility
• Private ports enjoy price flexibility, as the government allows non-major ports to determine their own
tariffs in consultation with the State Maritime Boards; at major ports, tariffs are regulated by the Tariff
Authority for Major Ports (TAMP)
Model Concession
Agreement (MCA)
• An MCA has been finalised to bring transparency & uniformity to contractual agreements that major
ports would enter into with selected bidders for projects under the Build, Operate & Transfer (BOT)
model
• As on September 2016, the Ministry of Shipping proposed a new model concession agreement (MCA)
to attract more private sector investments in the development of port infrastructure across the country.
Major Port Authorities
Act, 2016
• Primary focus of the scheme is to allow future public-private partnership operators to fix tariffs. With the
implementation of this policy, port authorities will get the power to lease land for port-related use for up
to 40 years & for non-port related use up to 20 years
Favourable system
• The system for security clearance for ports being streamline & made faster
• Expansion of existing framework to attract participation from the private sector for development of
infrastructure facilities such as dredging, road infrastructure, creation of SEZ & development of
integrated parking zones in the port area

STRONG PRIVATE SECTOR PARTICIPATION IN PORTS PROJECTS … (1/3)
39 Public Private Partnership (PPP) projects are operational at a cost of around USD2219.4 Million & capacity of 240.72 Million
Tonnes Per Annum (MTPA).
32 PPP projects at an estimated cost of around USD3917.6 Million & capacity 264.77 Million Tonnes Per Annum (MTPA) awarded &
are under implementation.
15 PPP projects with an estimated cost of about USD1210.6 Million & capacity 69.47 Million Tonnes Per Annum (MTPA) have been
awarded/approved & 13 projects at an estimated cost of about USD1466.2 Million & Capacity 108.35 Million Tonnes Per Annum
(MTPA) are likely to be awarded/approved by 31.03.2015.
As of September 2016, the National Green Tribunal has given nod for construction of multi-crore ‘Vizhinjam International Seaport Ltd
(VISL)’. The port is being developed by Adani Group in collaboration with Kerala Government.
2 mega port projects in Colachel in Tamil Nadu & Dahanu in Maharashtra with an initial investment of USD2.3 billion has been
introduced & are being awaited for approval under PPP model in FY16.
As of October 2016, Central Government is planning to setup logistic hubs near seaports with the help of private sector players, to
augment exports from the country.
In January 2017, a new container service, operated by K Line, commenced operations between CITPL (Chennai International
Container Terminals Pvt. Ltd) at Chennai port & the Far East.
In May 2017, DP World has agreed to develop Indian port projects, and plans to sign an MoU with the National Investment and
Infrastructure Fund (NIIF), the Indian wealth fund. The projects worth US$ 1.3 billion include the development of Sagarmala and
Bharatmala projects.
PORTS
Source: Ministry of Shipping; TechSci Research; Notes: PPP –PublicPrivate Partnership
Private investment
Greenfield projects
Private terminals

Notes: NSICT – Nhava Sheva International Container Terminal, Mumbai,
ICTT – International Container Transshipment Terminal, SPM – Single Point Mooring
PORTS
Terminals in major ports
with private sector
involvement
Port agency Estimated cost
(USD million)
Container terminal, Ennore Ennore 293.1
LNG terminal, Cochin Cochin Port Trust 729.1
Container terminal, NSICT JNPT 156.3
Oil jetty related facilities
(Vadinar)
Kandla Port Trust 156.3
Third container terminal
(Mumbai)
JNPT 187.5
Crude oil handling facility
(Cochin)
Cochin Port Trust 146.5
ICTT at Vallarpadam
(Cochin)
Cochin Port Trust 262.9
Construction of SPM captive
berth (Paradip)
Paradip Port Trust 104.2
Development of second
container terminal (Chennai)
Chennai Port Trust 103.1
Key private sector
companies
Ports they
developed
Maersk JNPT (Mumbai)
P&O Ports
JNPT,
(Mumbai & Chennai)
Dubai Ports International
(Cochin and
Vishakhapatnam)
PSA Singapore Tuticorin
Adani Mundra
Maersk Pipavav
Navyuga Engineering
Company Ltd
Krishnapatnam
DVS Raju group Gangavaram
JSW Jaigarh
Marg Karaikal
As on 2015

Notes: NSICT – Nhava Sheva International Container Terminal, Mumbai,
ICTT – International Container Transshipment Terminal, SPM – Single Point Mooring
PORTS
Terminals in major ports with private sector
involvement (FY15)
Port agency Capacity
(Million tonnes)
Estimated cost
(USD million)
Development & Operation of International Container
Transshipment Terminal (ICTT) at Vallar-padam
Cochin Port
12.5 to 40 MMT in
Phases
353
Setting up of LNG Port & ReGasification Terminal at
Puthuvypeen by Cochin. / Cochin Port Trust
Cochin Port 5 MMPTA 691.1
Multi-User Liquid Terminal (MULT) at Puthuvypeen
SEZ (International Bunkering Terminal at Cochin)
Cochin Port 4.10 MMTPA 38.4
Conversion of berth No. 8 as container
terminal on
Tuticorin 7.2 MTPA 52.03
Development of North Cargo Berth – II
on DBFOT basis.
Tuticorin 7.0 MTPA 55.36
Enhancement of Cargo Handling capacity by installing
rapid in motion wagon loading facility by SWPL
Mormugao Port Trust 2.50 MTPA 7.5
Development of Container Terminal on DBFOT basis
Kamarajar Port
Ltd
16.8MT 210.68
Development of Multi Cargo Terminal on DBFOT basis
Kamarajar Port
Ltd
2.00 25.05
As on FY15

PORTS
Projects Completed and Awarded During FY15 & FY16
A PPP project worth USD220 million for redevelopment of berths 8, 9 & barge berths at the Port of Mormugao, Goa has been
awarded in September 2016
Kamarajar Port Marine Liquid Terminal-II PPP project & Chidambaranar Port PPP Project (shallow draught berth) for handling
general cargo, was introduced in 2016
Increase in capacity due to productivity of CBI & CBII (1.00 MTPA) Metric tonnes per annum
Development of WQ6 berth for 225m length & 22.5m width for handling dry bulk cargo on DBOFT basis (6.00) at VPT
(Visakhapatnam Port Trust).
Development of EQ-10 berth in inner harbor for handling liquid cargoes & chemicals on DBOFT basis (1.84 MTPA) at VPT.
Increase in capacity at CICTPL coal berth due to productivity (1.00 MTPA) at KPL (Kamarajar Port Ltd.)
Increase in capacity at ETTPL berth due to productivity (1.00 MTPA) at KPL.
Increase in capacity at General Cargo berth (2.00 MTPA) at KPL.
Installation of floating cranes for handling the cargo vessels (2.49 MTPA) at VoCPT (V.O.Chidambaranar Port Trust)
Construction of Mooring Dolphins at Liquid Cargo Jetty (1.00 MTPA) at JNPT (Jawaharlal Nehru Port Trust))
Increase in capacity due to deepening & widening of channel (10.20 MTPA) at JNPT.
In February 2017, at an estimated cost of US$1.37 million, construction of fishing harbor at Tirmulliavasal was completed on
schedule, under the Rural Infrastructure Development Fund (RIDF).
PPP: Public Private Partnership; MTPS: Million Tonnes per Annum; JNPT: Jawaharlal
Nehru Port Trust

PRIVATE EQUITY INTEREST IN INDIAN PORTS/SHIPPING REMAINS HEALTHY
PORTS
Target Acquirer Value (USD million) Year
Saurashtra Freight Fairfax India Holdings Corporation 30.0 2017
LCL Logistix CMA CGM Group - 2015
Kattupalli port Adani Ports and Special Economic Zone Ltd - 2015
The Dhamra Port Co Ltd Adani Ports and Special Economic Zone 926.0 2014
Samson Maritime Ltd Kotak Private Equity Group 126.0 2014
Fourcee Infrastructure General Atlantic LLC 104.0 2012
Mundra Port 3I Group, GIC Real Estate 100.0 NA
Karaikal Port Pvt Ltd (2nd round) Ascent Capital 41.7 NA
Ocean Sparkle Ltd Standard Chartered PE 41.6 2012
Karaikal Port Pvt Ltd (1st round) IDFC Project Equity 32.6 NA
Gujarat Pipavav Port Ltd IDFC 28.5 NA
Karaikal Port Pvt Ltd Standard Chartered PE (Mauritius) II Ltd 27.1 2012
20Cube Logistics Zephyr Peacock India 17.0 2013
Continental Warehousing Nhava
Sheva
Aureos India Fund, Eplanet Venture 16.4 NA
PE deals since 2014
Source: E&Y, Grant Thornton, Thompson ONE Banker, TechSci Research

OPPORTUNITIES
PORTS
Increasing scope for private ports Ship repair facilities at ports Port support services
• With rising demand for port
infrastructure due to growing imports
(crude, coal) & containerisation, public
ports (major ports) will fall short of
meeting demand
• This provides private ports with an
opportunity to serve the spill-off demand
from major ports & increase their
capacities in line with forecasted new
demand.
• Cochin Port Trust (CPT) announced
measures to increase its revenue by
generating higher container traffic &
increasing the number of passenger
liners. CPT is also planning to setup a
small industrial port at the southern end
of Willingdon Island to boost business.
• Dry docks are necessary to provide ship
repair facilities. Out of all major ports,
Kolkata has 5 dry docks, Mumbai &
Visakhapatnam have 2; the rest have 1
or no dock at all
• Given the positive outlook for cargo
traffic & the resulting increase in number
of vessels visiting ports, demand for
ship repair services will go up. This will
provide opportunities to build new dry
docks & setup ancillary repair facilities.
• Operation & maintenance services such
as pilotage, dredging, harbouring &
provision of marine assets such as
barges & dredgers are expected to
increase in coming years
• Increasing investments & cargo traffic
point to a healthy outlook for port
support services
• These include Operation & Maintenance
(O&M) services like pilotage, harbouring
& provision of marine assets like barges
& dredgers.
• JNPT in Navi Mumbai signed an
agreement with Development Bank of
Singapore & State Bank of India, for
external commercial borrowing worth
USD400 million for expansion of road
network connecting the port.
Note: O&M – Operations & Maintenance

4242MAY 2017
202.9
255.7
300.7
439.5
575.4
658.6
801.2
1020.6
1213.1
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Net sales (USD million)
Source: Company sources, including Annual Reports and news
items; Assorted news articles; TechSci Research
Notes: POL – Petroleum, Oil and Lubricants,
MTPA – Million Tonnes Per Annum,
Mundra Port and Special Economic Zone Ltd was renamed as
Adani Ports & Special Economic Zone Ltd
It is the largest private port in India in terms of volume
Net Sales (FY16): USD1213.1 million
Operating profit (FY16): USD710.5 million
Adani’s Mundra Port crosses 100 MMT mark of cargo handling
in FY16. The only commercial port in India to achieve 100
MMT traffic. Further, cargo traffic of the company touched
109.02 MMT in FY16
Container traffic contributed the most, followed by coal
and edible oil, chemicals and POL
Has the world’s largest fully mechanised coal terminal with a
capacity of 60 MTPA
Handles the 2nd highest container traffic in India
During FY08–16, total revenue rose to USD1213.1 million,
implying a CAGR of 25 per cent
MUNDRA: THE LARGEST PRIVATE PORT IN INDIA … (1/2)
PORTS
Adani Group plans to convert the Dhamra Port, in Odisha,
into country's biggest seaport with industrial park, and set
up LNG and LPG terminals there by 2021.
Dhamra Port is expected to have 35 berths having 315
million tonnes capacity.

Jawaharlal Nehru Port Trust (JNPT) has the 3rd highest cargo traffic & the highest container traffic in the country
It is a container-focused port & having container traffic of 37.64 MMT in FY16
Handled 63.8 million tonnes of cargo in FY15
Poised to handle 3 million TEUs of containers by the year FY16
Traffic handled at JNPT for FY16 was 42.6 MMT
Distribution of JNPT’s container traffic for FY16 across its various terminals was a s follows –
Jawaharlal Nehru Port Container Terminal (JNPCT): 1.43 million TEUs
Nhava Sheva International Container Terminal (NSICT): 1 MMT
APM Terminals: 16.1 MMT
PORTS
Notes: TEU – Twenty-Foot Equivalent Unit,
JNPT: MAJOR PORT WITH THE LARGEST CONTAINER CAPACITY … (1/2)

4444MAY 2017
88.5%
10.5%
1.1%
Container
POL
Others
Cargo profile of JNPT (FY16)
Source: JNPT’s website, Indian Ports Association,
Ministry of Shipping, TechSci Research
Notes: POL – Petroleum, Oil, and Lubricants,
MMT – Million Metric Tonnes,
TEU – Twenty-Foot Equivalent Unit,
MTPA – Million Tonnes Per Annum
JNPT was developed to relieve the pressure of Mumbai port
and was commissioned in 1989
It serves most of North India & has good hinterland
connectivity through road & rail networks
JNPT, with a capacity of 4.76 million TEU, handles over 58
per cent of India’s container traffic, as of FY16
JNPT is a pioneer in involving private sector participation in
major ports & operates under a landlord model; NSCIT is
the 1st private terminal in the country
The port is poised to handle 5.03 million TEUs of containers
by 2016–17
Proposed capacity additions by FY17 –
Marine chemical: 30 MTPA
Container terminal: 58 MTPA
PORTS
JNPT: MAJOR PORT WITH THE LARGEST CONTAINER CAPACITY … (2/2)

4545MAY 2017
53 65 72 80 82 83 94 87 92 100
131
151 153
206
231
259
288
310
336 340
Cargo handled at major and non-major port of
Gujarat (MMT)
Source: Shipping Ministry, TechSci Research
Gujarat is endowed with 1,215 kilo meters of coastline i.e.
1/6th of total Indian coastline
The state has 42 ports of which 41 are non major, while
Kandla is the sole major port
During FY07–16, cargo traffic in Gujarat increased at a
CAGR of 10.17 per cent, with the cargo volume handled
reaching 440 MMT in FY16.
Favourable policies of the Gujarat government helped the
state in gaining private investors interest in port related
activities
Kandla port handled 499.68 million tonnes of cargo traffic,
during April 2016 to January 2017. Overall India’s cargo
traffic increased by 7.14 per cent.
GUJARAT: PORT HUB OF INDIA ... (1/2)
PORTS
CAGR: 10.17%

In FY16, Gujarat Maritime Board (GMB) handled 339.77 MMT of cargo, with a capacity addition of 466 MMT in the same year.
During the 12th Five-Year Plan, the government estimates investment of about USD9.4 billion in the port sector by private players
in Gujarat
With 7 ports under construction & 5 proposed ports, Gujarat has the highest number of privately operated greenfield ports in India
As of October 2016, Ministry of Shipping has sanctioned Capital Dredging Project for Ro Pax Ferry Services between Gogha &
Dahej, in Gulf of Cambay in Gujarat. The total project cost is US$ 35.75 million, of which 50 per cent will be funded by Centre
Government under the Sagarmala programme
As of November 2016, Ministry of Shipping sanctioned sum of USD1.49 million to Gujarat Maritime Board for capacity building &
safety training of workers involved in ship recycling activities under Sagarmala
PORTS
Source: Shipping Ministry,
TechSci Research
GUJARAT: PORT HUB OF INDIA ... (2/2)
Greenfield ports Developer
Port of Pipavav GMB and Gujarat Pipavav Port Ltd
Mundra Port Gujarat Adani Port Ltd
Dahej Port Petronet LNG Ltd and GMB
Hazira Port Shell Gas B.V.

4848MAY 2017
INDUSTRY ASSOCIATIONS
PORTS
Indian Ports Association (IPA)
1st floor, South Tower, NBCC Place
Bhishma Pitamah Marg, Lodi Road
New Delhi – 110 003
Phone: 91-11-24369061, 24369063, 24368334
Fax: 91-11-24365866
E-mail: ipa@nic.in, ipadel@nda.vsnl.net.in
Indian Private Ports & Terminals Association
Darabshaw House, Level-1, N.M. Marg,
Ballard Estate, Mumbai 400 001, India
Tel. No: 022-22610599
Fax. No: 022-22621405
Email: secretary@ippta.org.in

Major and non-major ports do not have a strict association with traffic volumes. The classification has more of an
administrative significance
Cargo traffic includes both loading (export) and unloading (imports) of goods
Containerisation is the increased use of container for transporting non-bulk goods. It leads to increased efficiency (both
time and money)
Turnaround time is the total time spent by a ship from entry into port till departure
Twenty Equivalent Units (TEU) is a standard measure of containers which are 20 feet in length and 8 feet in width; the
height can vary
Draft is the vertical distance between waterline and the bottom of the ship. It determines the depth of water a ship or boat
can safely navigate. Higher capacity ships will need higher draft, hence ports with higher natural draft will attract bigger
ships
Waterfront availability is the length of the water line on the coast where ships can rest and the goods are unloaded. Longer
waterfront lengths reduce waiting time and help raise capacity
Terminals are certain sections of the ports where different types of cargo are unloaded
Single Point Mooring (SPM) is a loading buoy anchored offshore that serves as a mooring point and interconnect for
tankers loading or offloading gas or fluid product
A dry dock is a narrow basin that can be flooded to allow a ship to be floated in, then drained to allow that ship to come to
rest on a dry platform. Dry docks are used for construction, maintenance and repair of ships
PORTS
NOTES

5050MAY 2017
GLOSSARY … (1/2)
FY: Indian Financial Year (April to March) – So FY11 implies April 2010 to March 2011
USD: US Dollar
FDI: Foreign Direct Investment
IPA: Indian Ports Association
NMDP: National Maritime Development Programme
POL: Petroleum, Oil & Lubricants
SEZ: Special Economic Zone
CAGR: Compounded Annual Growth Rate
ICTT: International Container Transshipment Terminal
TEU: Twenty-Foot Equivalent Unit
MMTPA: Million Metric Tonnes Per Annum
MMT: Million Metric Tonnes
PORTS

5151MAY 2017
GLOSSARY … (2/2)
GOI: Government of India
NSICT: Nhava Sheva International Container Terminal, Mumbai
O&M: Operation and Maintenance services
LNG: Liquefied Natural Gas
Wherever applicable, numbers have been rounded off to the nearest whole number
PORTS

5252MAY 2017
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 (E) 66.95
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22
Exchange rates (Fiscal Year)
EXCHANGE RATES
Exchange rates (Calendar Year)
PORTS
Source: Reserve bank of India,
Average for the year

5353MAY 2017
India Brand Equity Foundation (“IBEF”) engaged TechSci to prepare this presentation and the same has been
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DISCLAIMER
PORTS

Ports Sector Report May 2017

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