Ports and its infrastructure

Report
TM International Logistics Limited
Ports and its infrastructure
Roundtable Conference on Coal
28th October 2013 , New Delhi
Tamal Roy
TM International Logistics Ltd. ( A Tata Steel Subsidiary)
OVERVIEW OF COAL IMPORT
TMILL
2
Coal Import Trends
Annual Coal Import Volume (MT)
Coking Coal
Non-Coking Coal
138
Total
CAGR = 22.63 %
103
Inflection
Point
73
69
59
39
43
29
50
103
CAGR = 31.11 %
CAGR = 11.63 %
71
38
49
49
12
22
25
28
13
17
17
18
22
21
24
19
32
35
FY'04
FY'05
FY'06
FY'07
FY'08
FY'09
FY'10
FY'11
FY'12
FY'13
22
9
Imported Non-Coking Coal is the showstopper
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3
Let’s slice the data further...
Cargo Break-up in West Coast (MT)
Cargo Break-up in East Coast (MT)
24
11
56
47
Coking Coal
Non-Coking Coal
Coking Coal
23
35
Major Port
Non-Coking Coal
39
41
Non- Major Port
Major Port
Non- Major Port
Major Origins:
Non-Coking Coal : Indonesia and South Africa
Shorter haulage
Panamax/Supramax
•
•
Coking Coal : Australia
Longer haulage
Capesize/Panamax
Lion’s share of Coking Coal import through East Coast Ports due to proximity to Steel Plants
Import through West Coast skewed in favour of Non-Coking Coal
4
TMILL
Imported Coal Traffic at Select Indian Ports during FY13
Select Major Ports
Select Minor Ports
Deep-Water Minor Ports
Mundra – 26 MT
Kandla – 4.3 MT
Mumbai– 4.2 MT
Mormugao – 7.3 MT
New Mangalore – 4.3 MT
Haldia – 6.5 MT
Dhamra – 8 MT
Paradip – 12.7 MT
Visakhapatnam – 11.8 MT
Gangavaram – 10 MT
Kakinada – 4 MT
Krishnapatnam – 16 MT
Ennore – 6 MT
Karaikal – 5 MT
Tuticorin - 3 MT
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COAL LOGISTICS AND PORT INFRA
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Imported Coal Logistics
Low Value Commodity
Logistics Cost – Major
Component of Landed Cost
Usage of Lager Vessel
Freight Benefits through
Economies of Scale
Import through Deep Water
Ports
Capable of accommodating
Larger Vessels
Mechanized Handling System
Quick turnaround of vessels
Larger Stockyards
Holding larger parcels
Reliable Evacuation Methods
Rake availability / Hinterland
Connectivity
Port infrastructure plays pivotal role in imported coal logistics
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INDIAN PORTS – ISSUES AND CONCERNS
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Inadequate Draft
Dredging under taken during 2008-12 (mn CBM)
Capital
Maintenance
261.83
183.57
Mundra – 17 mtr
Kandla – 12.5 mtr
Haldia – 7.2 mtr
Dhamra – 18 mtr
Paradip – 14 mtr
Mumbai– 11 mtr
Mormugao – 11 mtr
New Mangalore – 14 mtr
Visakhapatnam – 11 mtr
Gangavaram – 16 mtr
Kakinada –13 MT
95.36
29.80
Krishnapatnam – 17 mtr
Ennore – 13.5 mtr
Karaikal – 15 mtr
Tuticorin - 12.5 mtr
Major Ports
Non-Major Ports
• No Indian Port is naturally deep drafted
• No Major Port equipped to handle large vessels
 Importers can’t derive freight benefits
• Huge Dredging Requirement
 Eating away Port’s profitability
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Inadequate Infrastructure
Limited dedicated coal handling facility at major ports
Lower Productivity
Semi-mechanised Handling System
Higher Pollution
Very high capacity utilization
leading to Congestion
Import traffic exceeding capacity
Inefficient Port Operations
Avg. Pre-Berthing Time at Major Ports during FY 12 (hrs)
78.11
18.48 19.68
Haldia
TMILL
99.14
75.90
7.12
Paradip
62.11
58.32
22.28
Visakhapatnam
21.78
Ennore
Coking Coal
11.65
Tuticorin
Non-Coking Coal
New
Mangalore
81.77
40.23
Mormugao
Kandla
10
Hinterland Connectivity
Overdependence on Railways
• Over utilised - Highly Congested
 Track Congestion
 Shortage of rakes
 Shortage of bottom opening
wagons
 Zonal capacity constraints
 Problems related to InterZone re-deployment of rakes
Alternates to Railways System
•
Direct Conveying
 Most efficient mean for importer adjacent to
the port
 Tata Power – Mundra
 RINL – Gangavaram

TNEB - Ennore
 High CAPEX – Guaranteed Cargo
•
Inland Waterways
 More than 14500 kms of waterways
 5 National Waterways + State Waterways
 Low level of Utilization
•
Coastal Shipping
 7500 kms long coastline covering 200 ports and
9 states
 Safer Mode of transportation
 Low level of Utilization
Issues with Inland Waterways and Coastal Shipping
•
Inland Waterways
 Poor navigability
 Extremely strong seasonal river currents
 Theft / River piracy
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•
Coastal Shipping
 Limited dedicated berths for coastal vessels
 Norms on age, manning and statutory surveys
11
similar to OGVs
Implementation Issues in Capacity Augmentation
Land acquisition issues
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Approval from various agencies
Time and Cost Over Runs
Credit Crunch
12
Way Forward
• Integrated approach in Transport & Logistics Infrastructure Planning
– Synergy between Major Port Trusts and State Maritime Board
– Hub and Spoke Model in Port Development to derive maximum benefit
– Rail / Road Connectivity with the Hinterland
• Single Window for all regulatory clearances
• Incentives for Inland Waterways and Coastal Shipping
TMILL
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Thank You
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