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EXECUTIVE SUMMARY REPORT
PURPOSE
This project involves studying the Port sector in India including various major Indian ports along
with a comparative study & analysis between Jawaharlal Nehru Port Trust (JNPT), Mumbai &
Singapore Port. Key reason behind choosing JNPT Port is because it standalone handles greater
than 50% of Indian Container cargo traffic while Singapore being a global hub for handling
container cargo traffic. Hinterland study has been conducted for both the ports through which we
derived the exact geographical landscape & territory catered by the port.
Traffic forecasting is accomplished to know the movement of traffic in future at both JNPT &
Singapore ports. Here we have forecasted the Container cargo traffic as well as the Vessel
movements for each of these ports. Thereafter, Operational analysis is done in order to find out the
critical parameters that hinder the productivity at Indian ports. I was fortunate having given an
opportunity to conduct a due diligence study for a consortium with a South East Asian
conglomerate.
Apart from this study, I had been assigned the task of preparing national conference presentations
i.e. for 7th National Container Infrastructure conference 2015 & 6th Dredging in India conference
2015. Having played a key role in preparing the National container conference presentation which
was presented by a senior team lead at New Delhi, I was assigned the responsibility to prepare the
Dredging in India conference presentation on my own. As the presentation level which was
prepared, matched their level of standards, was selected to accompany the Group Sector head of
Ports & Harbours to represent TATA Consulting engineers at this prestigious national conference.
OVERVIEW
I began the study by finding the state wise breakdown of major & non-major ports & the traffic
handled by the each state individually with the share of major & non major ports in that particular
state. Here we found how the traffic share of major ports had been decreasing with progress of
time as non-major ports grew at a burgeoning rate.
Further it was found that the Indian Maritime Industry was primarily classified into 3 major
components i.e. Ports, Ship building & repair & shipping industry. Here the key finding was that the
primary consideration of port users in the selection of port for movement of cargo is the quality of
service provided at the least cost. In this analysis the key findings were that the capacity at ‘Major
Ports’ is expected to increase to 1460 Million Tons at a CAGR of 9.7% by FY’20 while at ‘Non - Major
Ports’ the capacity was slated to increase from 483 MMTPA to 1670 MMTPA at a CAGR of 17% by
FY’20. The ‘Utilization rate’ of the port shall increase from 77% in FY’12 to 80% in FY’20. Share of
total traffic handled at ‘Non Major’ Ports is expected to increase to 53% by 2020.
A target of 3,130 MT port capacities has been set for the year 2020. More than 50 per cent of this
capacity is to be created in the non-major ports as the traffic handling by these ports is expected to
increase to 1,280 MT. The objective of the Maritime Agenda is not only creating more capacity but
augmenting port performance.
In India, over a period of 10 years, POL has grown at CAGR of 2.88% & will continue to grow strong
with capacity projected to expand by more local refineries commissioning their operations &
expansions taking place, while Coal traffic grew cumulatively at 7.28% rate due to growth in coal
fired power generation in India. On the other hand, Iron ore export has dipped heavily at CAGR of -
14.5% YOY; mainly due to restriction imposed by the Government on iron ore mining. Fertilizers &
Raw materials traffic was almost consistent, but declined in 2013-14 compared to previous financial
years on account of contraction in import of fertilizer and fertilizer raw materials in major ports.
Container cargo saw growth of just over 6.5% YOY, but dropped in 2013-14 FY in comparison to
global level growth by 4.6% while “Other cargo traffic” also grew at a rate of 5.75% YOY. Utilization
rate i.e. the amount of port capacity used compared to the actual capacity built for all the major
ports to handle cumulatively, decreased from 83.6% to almost 70%.
JNPT Port is the primary container handling port having 3 terminals namely JNPCT, NSCIT & GTICT
which currently handles greater than 55% of India’s container traffic. Majority of the container
transhipments to the Indian subcontinent are routed through the JNPT, making it the busiest port in
India w.r.t. Container traffic. Due to proximity of Gujarat to the Northern states & upcoming private
ports such as Mundra & Pipavav, JNPT has been facing increasing competition over the last few
years & it will continue to increase over period of time. The market where JNPT has been
consistently very successful is the container traffic, where northern & western regions contribute to
70% of the same. Market share of JNPT in regards to container traffic has grown to strong 83.5% in
the current year. Despite this, the port needs to upgrade the facilities by investing in modern
technologies & container cargo handling equipment such that it can gain competitive advantage
against rapidly growing private ports like Mundra & Pipavav.
In comparison to JNPT, Singapore Port is epicentre of trade routes and connected to more than 600
ports in over 120 countries offering shipping companies seamless global trade connectivity.
Currently the world's second-busiest port in terms of total shipping tonnage, it also trans-ships a
fifth of the world's shipping containers, half of the world's annual supply of crude oil, and is the
world's busiest transhipment port. Malaysia and Indonesia are Singapore’s immediate hinterland
but now it is expanding its influence in the wider South-East Asian region. Though it is connected to
over 400 shipping lines & 600 ports worldwide, Singapore is now confronted to severe challenges &
stiff competition from their adjacent ports such as Shenzhen in Mainland China, and Tan Jung
Pelepas in Malaysia respectively.
KEY FINDINGS & RESULTS
 Traffic forecasting has been done for the Jawaharlal Nehru Port Trust, Mumbai till 2035 i.e. for
20 years in future. The container traffic is estimated to be 21.41 M Teu which means it would be
handling nearly 5 times the amount of current container traffic.
 Similarly Singapore Port been majorly a transhipment port, so keeping in mind the ASEAN GDP
& share of EXIM Cargo, Real GDP was forecasted with assumption in Growth rate. The container
cargo forecasted until 2035 is 44.62 M Teu.
 Total vessels handled at Singapore Port will almost be doubled i.e. from existing 10,120 vessels
in FY’15 to 19,257 vessels in FY’40. On the contrary, at Singapore Port the total vessel handled
in FY 2035 is supposed to decrease by almost 21%, mainly due to increase in parcel size i.e.
larger capacity vessels.
 No of Quay cranes & total container yard area were two critical parameters which played a vital
role in productivity at container ports.
 JNPT port was found to be more productive, mainly due to the capacity constraints as the
utilization of the port is well beyond 100%.
 If draft can be increased at other Indian Ports by dredging out more sea bed, bigger vessels can
come to the port & greater cargo can be handled thus increasing productivity at Indian Ports.
 In due diligence study, technical knowhow, human capital & the financial health of the company
were interpreted & analysed in order to know the key factors that an organization looks for
while proceeding in for a consortium
CONCLUSION
The project of studying different ports along-with comparative analysis has helped me gain hands
on knowledge about the port industry. This project has sharpened my analytical abilities as the
project involved a lot of data gathering, analysis, calculations, & assumptions.
The foremost thing which I was fortunate enough to be a part of was Traffic forecasting. It was a
great exercise to accomplish wherein I had to predict the future cargo to be handled at respective
ports. It gave me a feel of how things work in the real consulting environment where in Real (JNPT’s
case) or ASEAN GDP (Singapore’s case) was taken into consideration & thus traffic at both the ports
were forecasted which indeed created value.
A hand on knowledge was acquired while performing due diligence study for a consortium with a
South East Asian conglomerate. The best moment of the entire internship was when the
presentation I prepared was chosen by the Group sector Head to be presented at a reputed
National Conference. This has helped me gain immense self-confidence & self-belief.
Indeed this internship provided me with an excellent platform to showcase the work done with this
research bent of mind & the most important thing I shall cherish throughout my career is my
mentor’s words for me at the completion of my internship:
‘Stay the same as you were during your tenure at TCE i.e. never lose your willingness to learn new
things & being a student throughout your life’

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MIP - Executive Summary Report

  • 1. EXECUTIVE SUMMARY REPORT PURPOSE This project involves studying the Port sector in India including various major Indian ports along with a comparative study & analysis between Jawaharlal Nehru Port Trust (JNPT), Mumbai & Singapore Port. Key reason behind choosing JNPT Port is because it standalone handles greater than 50% of Indian Container cargo traffic while Singapore being a global hub for handling container cargo traffic. Hinterland study has been conducted for both the ports through which we derived the exact geographical landscape & territory catered by the port. Traffic forecasting is accomplished to know the movement of traffic in future at both JNPT & Singapore ports. Here we have forecasted the Container cargo traffic as well as the Vessel movements for each of these ports. Thereafter, Operational analysis is done in order to find out the critical parameters that hinder the productivity at Indian ports. I was fortunate having given an opportunity to conduct a due diligence study for a consortium with a South East Asian conglomerate. Apart from this study, I had been assigned the task of preparing national conference presentations i.e. for 7th National Container Infrastructure conference 2015 & 6th Dredging in India conference 2015. Having played a key role in preparing the National container conference presentation which was presented by a senior team lead at New Delhi, I was assigned the responsibility to prepare the Dredging in India conference presentation on my own. As the presentation level which was prepared, matched their level of standards, was selected to accompany the Group Sector head of Ports & Harbours to represent TATA Consulting engineers at this prestigious national conference. OVERVIEW I began the study by finding the state wise breakdown of major & non-major ports & the traffic handled by the each state individually with the share of major & non major ports in that particular state. Here we found how the traffic share of major ports had been decreasing with progress of time as non-major ports grew at a burgeoning rate.
  • 2. Further it was found that the Indian Maritime Industry was primarily classified into 3 major components i.e. Ports, Ship building & repair & shipping industry. Here the key finding was that the primary consideration of port users in the selection of port for movement of cargo is the quality of service provided at the least cost. In this analysis the key findings were that the capacity at ‘Major Ports’ is expected to increase to 1460 Million Tons at a CAGR of 9.7% by FY’20 while at ‘Non - Major Ports’ the capacity was slated to increase from 483 MMTPA to 1670 MMTPA at a CAGR of 17% by FY’20. The ‘Utilization rate’ of the port shall increase from 77% in FY’12 to 80% in FY’20. Share of total traffic handled at ‘Non Major’ Ports is expected to increase to 53% by 2020. A target of 3,130 MT port capacities has been set for the year 2020. More than 50 per cent of this capacity is to be created in the non-major ports as the traffic handling by these ports is expected to increase to 1,280 MT. The objective of the Maritime Agenda is not only creating more capacity but augmenting port performance. In India, over a period of 10 years, POL has grown at CAGR of 2.88% & will continue to grow strong with capacity projected to expand by more local refineries commissioning their operations & expansions taking place, while Coal traffic grew cumulatively at 7.28% rate due to growth in coal fired power generation in India. On the other hand, Iron ore export has dipped heavily at CAGR of - 14.5% YOY; mainly due to restriction imposed by the Government on iron ore mining. Fertilizers & Raw materials traffic was almost consistent, but declined in 2013-14 compared to previous financial years on account of contraction in import of fertilizer and fertilizer raw materials in major ports. Container cargo saw growth of just over 6.5% YOY, but dropped in 2013-14 FY in comparison to global level growth by 4.6% while “Other cargo traffic” also grew at a rate of 5.75% YOY. Utilization rate i.e. the amount of port capacity used compared to the actual capacity built for all the major ports to handle cumulatively, decreased from 83.6% to almost 70%. JNPT Port is the primary container handling port having 3 terminals namely JNPCT, NSCIT & GTICT which currently handles greater than 55% of India’s container traffic. Majority of the container transhipments to the Indian subcontinent are routed through the JNPT, making it the busiest port in India w.r.t. Container traffic. Due to proximity of Gujarat to the Northern states & upcoming private ports such as Mundra & Pipavav, JNPT has been facing increasing competition over the last few years & it will continue to increase over period of time. The market where JNPT has been
  • 3. consistently very successful is the container traffic, where northern & western regions contribute to 70% of the same. Market share of JNPT in regards to container traffic has grown to strong 83.5% in the current year. Despite this, the port needs to upgrade the facilities by investing in modern technologies & container cargo handling equipment such that it can gain competitive advantage against rapidly growing private ports like Mundra & Pipavav. In comparison to JNPT, Singapore Port is epicentre of trade routes and connected to more than 600 ports in over 120 countries offering shipping companies seamless global trade connectivity. Currently the world's second-busiest port in terms of total shipping tonnage, it also trans-ships a fifth of the world's shipping containers, half of the world's annual supply of crude oil, and is the world's busiest transhipment port. Malaysia and Indonesia are Singapore’s immediate hinterland but now it is expanding its influence in the wider South-East Asian region. Though it is connected to over 400 shipping lines & 600 ports worldwide, Singapore is now confronted to severe challenges & stiff competition from their adjacent ports such as Shenzhen in Mainland China, and Tan Jung Pelepas in Malaysia respectively.
  • 4. KEY FINDINGS & RESULTS  Traffic forecasting has been done for the Jawaharlal Nehru Port Trust, Mumbai till 2035 i.e. for 20 years in future. The container traffic is estimated to be 21.41 M Teu which means it would be handling nearly 5 times the amount of current container traffic.  Similarly Singapore Port been majorly a transhipment port, so keeping in mind the ASEAN GDP & share of EXIM Cargo, Real GDP was forecasted with assumption in Growth rate. The container cargo forecasted until 2035 is 44.62 M Teu.  Total vessels handled at Singapore Port will almost be doubled i.e. from existing 10,120 vessels in FY’15 to 19,257 vessels in FY’40. On the contrary, at Singapore Port the total vessel handled in FY 2035 is supposed to decrease by almost 21%, mainly due to increase in parcel size i.e. larger capacity vessels.  No of Quay cranes & total container yard area were two critical parameters which played a vital role in productivity at container ports.  JNPT port was found to be more productive, mainly due to the capacity constraints as the utilization of the port is well beyond 100%.  If draft can be increased at other Indian Ports by dredging out more sea bed, bigger vessels can come to the port & greater cargo can be handled thus increasing productivity at Indian Ports.  In due diligence study, technical knowhow, human capital & the financial health of the company were interpreted & analysed in order to know the key factors that an organization looks for while proceeding in for a consortium
  • 5. CONCLUSION The project of studying different ports along-with comparative analysis has helped me gain hands on knowledge about the port industry. This project has sharpened my analytical abilities as the project involved a lot of data gathering, analysis, calculations, & assumptions. The foremost thing which I was fortunate enough to be a part of was Traffic forecasting. It was a great exercise to accomplish wherein I had to predict the future cargo to be handled at respective ports. It gave me a feel of how things work in the real consulting environment where in Real (JNPT’s case) or ASEAN GDP (Singapore’s case) was taken into consideration & thus traffic at both the ports were forecasted which indeed created value. A hand on knowledge was acquired while performing due diligence study for a consortium with a South East Asian conglomerate. The best moment of the entire internship was when the presentation I prepared was chosen by the Group sector Head to be presented at a reputed National Conference. This has helped me gain immense self-confidence & self-belief. Indeed this internship provided me with an excellent platform to showcase the work done with this research bent of mind & the most important thing I shall cherish throughout my career is my mentor’s words for me at the completion of my internship: ‘Stay the same as you were during your tenure at TCE i.e. never lose your willingness to learn new things & being a student throughout your life’