Arun Kumar Das[ 2 Jul, 2006 0053hrs ISTTIMES NEWS NETWORK ]
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NEW DELHI: Decks have been cleared for establishing the first maritime university in the country. The Indian Maritime University will come up in Chennai on the patterns of the World Maritime University (WMU) in Malmo, Switzerland, and will have three regional campuses - in Mumbai, Vizag and Kolkata. The draft Bill for the proposed university is being finalised by the shipping ministry in consultation with maritime experts and academicians. "The Indian Maritime University Bill, 2006, is ready and will be sent to the cabinet for approval before being introduced in the monsoon session of Parliament," says shipping secretary, A K Mohapatra. "The ministry has already procured 300 acres of land in Chennai and earmarked Rs 200 cr for the university. Work on the complex will commence shortly," he says.
Thursday, March 29, 2007
Wednesday, March 28, 2007
RIL may join race for Kerala port project
RIL may join race for Kerala port projectBOBY KURIAN & JOE A SCARIATIMES NEWS NETWORK[ WEDNESDAY, MARCH 28, 2007 12:15:13 AM]
BANGALORE/THIRUVANANTHAPURAM: RELIANCE Industries (RIL) is likely to join the race for the $1-billion Vizhinjam port on the Kerala coast, with the state government deciding to call for fresh tenders, sources said. RIL was looking at participating in a major port project on the west coast which could rival Colombo’s prominence, and hence the early interest in Vizhinjam International Seaport (VISL) that falls on the international shipping line, sources added. RIL’s substantial exports, both dry and liquid operations, are mainly driven through large jetties at Dahej and Hazira. Further, RIL is also developing Rewas Port closer to its mega SEZ projects in Navi Mumbai.When contacted, an RIL spokesperson declined to comment. The private sector behemoth’s interest was in initial stages and it was premature to comment on what progress it would make, sources said. But multiple sources said RIL could be among those who show initial interest when the state kicks off the new tender process in the coming months as it was showing interest in other port projects on the west coast. Former BPL Mobile promoter and infrastructure entrepreneur Rajeev Chandrasekhar has already signaled interest in Vizhinjam project located near Kovalam, which has been in the making for over a decade now. The Kerala government has initiated moves for re-tendering the Vizhinjam port project, after previous round of bidding for the project had to be dropped because of the Centre’s disinclination to clear the winning bid involving a Chinese consortium on security concerns. The previous round bidding saw 16 firms, including Port Authority of Singapore, showing interest in the Rs 4,360-crore project. VISL officials said the re-tender was expected to be floated within a few months. They said the request for proposal (RFP) documents for the project were being revised and that tenders would be called for once that exercise was completed. IL&FS has been entrusted the job of the RFP revision, VISL officials said. The Kerala government proposes to have equity participation in the project and had also sought viability gap funding from the Centre. The first phase of the project involving close to Rs 2,000 crore is scheduled to be completed in three years after obtaining the Centre’s clearance.However, a section of the observers believes that the future of Vizhinjam port could be in jeopardy with Tamil Nadu pushing for a similar project at Kolachel just about 40 km away. The move could strip the strategic locational advantage of Vizhinjam on the international shipping line. boby.kurian@timesgroup.com
BANGALORE/THIRUVANANTHAPURAM: RELIANCE Industries (RIL) is likely to join the race for the $1-billion Vizhinjam port on the Kerala coast, with the state government deciding to call for fresh tenders, sources said. RIL was looking at participating in a major port project on the west coast which could rival Colombo’s prominence, and hence the early interest in Vizhinjam International Seaport (VISL) that falls on the international shipping line, sources added. RIL’s substantial exports, both dry and liquid operations, are mainly driven through large jetties at Dahej and Hazira. Further, RIL is also developing Rewas Port closer to its mega SEZ projects in Navi Mumbai.When contacted, an RIL spokesperson declined to comment. The private sector behemoth’s interest was in initial stages and it was premature to comment on what progress it would make, sources said. But multiple sources said RIL could be among those who show initial interest when the state kicks off the new tender process in the coming months as it was showing interest in other port projects on the west coast. Former BPL Mobile promoter and infrastructure entrepreneur Rajeev Chandrasekhar has already signaled interest in Vizhinjam project located near Kovalam, which has been in the making for over a decade now. The Kerala government has initiated moves for re-tendering the Vizhinjam port project, after previous round of bidding for the project had to be dropped because of the Centre’s disinclination to clear the winning bid involving a Chinese consortium on security concerns. The previous round bidding saw 16 firms, including Port Authority of Singapore, showing interest in the Rs 4,360-crore project. VISL officials said the re-tender was expected to be floated within a few months. They said the request for proposal (RFP) documents for the project were being revised and that tenders would be called for once that exercise was completed. IL&FS has been entrusted the job of the RFP revision, VISL officials said. The Kerala government proposes to have equity participation in the project and had also sought viability gap funding from the Centre. The first phase of the project involving close to Rs 2,000 crore is scheduled to be completed in three years after obtaining the Centre’s clearance.However, a section of the observers believes that the future of Vizhinjam port could be in jeopardy with Tamil Nadu pushing for a similar project at Kolachel just about 40 km away. The move could strip the strategic locational advantage of Vizhinjam on the international shipping line. boby.kurian@timesgroup.com
Monday, March 19, 2007
Finally "HH Antony" opens mouth for Vizhinjam
Antony assurance on Vizhinjam
Staff Reporter
Says Kerala should strive for aid from Rupee-Rouble Debt Fund
Asks State to take up issue of Russian funding with Shipping Ministry
Claims Kerala has the potential to lead the nation in maritime affairs
KOCHI : Union Defence Minister A.K. Antony has promised all help for the Vizhinjam port project and asked the Kerala Government to take up the issue of Russian funding with the Union Ministry of Shipping.
He was delivering the keynote address at a seminar on `Kerala- Emerging Maritime Issues and Challenges' organised at the Southern Naval Command here on Sunday.
Mr. Antony said he would help the State in securing funds for the project from the Rupee-Rouble Debt Fund. He ruled out any security threat to the Vizhinjam project.
Chief Minister V.S. Achuthanandan said that efforts were being made through the Prime Minister, the Defence Minister and the Russian High Commission to secure funds for the project.
Russian President Vladimir Putin had, during his visit last year, expressed his willingness to use one million roubles from the fund for development schemes in India.
Major threats
Mr. Antony said Kerala had the resources and potential to lead the nation in maritime affairs. Maritime terrorism, drug trafficking and piracy were major threats. The Centre and States should cooperate to counter the challenges. The task of protecting and furthering India's interests was not that of the Indian Navy alone, he said. Mr. Antony said that more orders would be placed with the Cochin Shipyard if it completed the work on India's first aircraft carrier by 2012. On the need for treating port-based special economic zones with caution, he stressed the need for a public-peasant partnership.
"The solutions to Kerala's maritime challenges should have a positive impact on employment generation. They should lead to the socio-economic welfare of all sections of society. Sadly, the condition of the legendary shipbuilders of Beypore is pitiable. They have been reduced to making toys of the famous `uru.' Kerala should lead the nation in making use of its skilled craftsmen for modern shipbuilding." Mr. Antony lauded the efforts of the Navy in setting up a Chair for Maritime Studies in Calicut University.
Mr. Achuthanandan, who inaugurated the seminar, said that the maritime heritage of Kerala dated back to 573 B.C. when the Jews arrived here.
Admiral Arun Prakash, former Chief of Naval Staff, presented a paper on the `Geo-Strategic Importance of Kerala;' P. Paleri, former Director General of Indian Coast Guard, on `Kerala's role in maritime India.'
Staff Reporter
Says Kerala should strive for aid from Rupee-Rouble Debt Fund
Asks State to take up issue of Russian funding with Shipping Ministry
Claims Kerala has the potential to lead the nation in maritime affairs
KOCHI : Union Defence Minister A.K. Antony has promised all help for the Vizhinjam port project and asked the Kerala Government to take up the issue of Russian funding with the Union Ministry of Shipping.
He was delivering the keynote address at a seminar on `Kerala- Emerging Maritime Issues and Challenges' organised at the Southern Naval Command here on Sunday.
Mr. Antony said he would help the State in securing funds for the project from the Rupee-Rouble Debt Fund. He ruled out any security threat to the Vizhinjam project.
Chief Minister V.S. Achuthanandan said that efforts were being made through the Prime Minister, the Defence Minister and the Russian High Commission to secure funds for the project.
Russian President Vladimir Putin had, during his visit last year, expressed his willingness to use one million roubles from the fund for development schemes in India.
Major threats
Mr. Antony said Kerala had the resources and potential to lead the nation in maritime affairs. Maritime terrorism, drug trafficking and piracy were major threats. The Centre and States should cooperate to counter the challenges. The task of protecting and furthering India's interests was not that of the Indian Navy alone, he said. Mr. Antony said that more orders would be placed with the Cochin Shipyard if it completed the work on India's first aircraft carrier by 2012. On the need for treating port-based special economic zones with caution, he stressed the need for a public-peasant partnership.
"The solutions to Kerala's maritime challenges should have a positive impact on employment generation. They should lead to the socio-economic welfare of all sections of society. Sadly, the condition of the legendary shipbuilders of Beypore is pitiable. They have been reduced to making toys of the famous `uru.' Kerala should lead the nation in making use of its skilled craftsmen for modern shipbuilding." Mr. Antony lauded the efforts of the Navy in setting up a Chair for Maritime Studies in Calicut University.
Mr. Achuthanandan, who inaugurated the seminar, said that the maritime heritage of Kerala dated back to 573 B.C. when the Jews arrived here.
Admiral Arun Prakash, former Chief of Naval Staff, presented a paper on the `Geo-Strategic Importance of Kerala;' P. Paleri, former Director General of Indian Coast Guard, on `Kerala's role in maritime India.'
Thursday, March 8, 2007
Queen Mary 2 docks at Kochi port
Published: Thursday, 8 March, 2007, 08:26 AM Doha Time
The Queen Mary 2 docked at the port in Kochi yesterdayKOCHI:
Queen Mary II, the world’s largest ocean liner called at the Kochi port yesterday on its maiden voyage around the world, giving a big boost to the southern Indian state’s booming tourism industry.
Kochi was among the 20 destinations on the ‘around-the-world-in-eighty-days’ trip of the $1bn grand lady of the sea. “She is the largest, longest, tallest, widest and most expensive liner ever built. She arrived at 1300 hours and will set sail at 14 hours on Thursday for Dubai,” the port authorities said in a statement here. The cruise liner left Fort Lauderdale in Florida, US, on January 11 and it will return there on April 2 after making its last two calls at Le Havre in France and Southampton, England. Her last port of call was Malaysia. Other ports of call include Rio de Janeiro, San Francisco, Sydney, Hong Kong, Singapore, Cairo, Athens and Rome. QM2 entered service on January 12, 2004 after being named by Queen Elizabeth II, at what was the most spectacular naming ceremony ever. She was too tall, at 23 stories high, to sail under the Harbor Bridge and too long to berth at the International Terminal at Circular Quay. The 1,132ft-long vessel weighing 150,000 tons offers regular scheduled transatlantic crossings between New York and Southampton as well to regions in the Caribbean, Europe, Mediterranean and Canada. This year, it began its first world cruise with approximately 3,000 passengers and 1,253-member crew. She has many firsts and exclusives. A majority of cabins of the ship feature private balconies. There is artwork worth over £3.5mn on board. The world’s first floating Planetarium offers virtual reality rides through the galaxies. A cultural academy is operated by the University of Oxford. She offers the first suites with private lift access, the first Canyon Ranch Spa at sea, the first Veuve Clicquot champagne bar, the largest library with 8,000 hardbacks, 500 paperbacks, 200 audio books and 100 CD-ROMs, the largest ballroom with the largest dance floor, workshops and master classes performed by the Royal Academy of Dramatic Arts, the longest jogging track and the largest and most extensive wine cellar at sea. The holidaymakers on the cruise took short trips to major tourist spots in and around Kochi and Alappuzha. Most of them preferred overnight backwater cruises. A large number of local visitors also turned up to have a close look at the wonder at the sea. QM2 was a crowd-puller at every port she has visited. Almost 3mn turned out when she sailed up the east coast of England at close range. Passengers rate the ship highly on dining, service and onboard facilities and six books have already been published about her
EMMA Maersk - Largest Container Ship
It’s longer than the Eiffel Tower is tall , wider than the width of a football field and it can officially hold 11,000 20-foot-long shipping containers, though some suggest it can pack in even moreOdense Steel Shipyard’s hull no. 203 is the world’s largest container carrier. It was named in mid-August and given the name Emma Mærsk (after the late wife of Arnold Mærsk Mc-Kinney Møller), introducing an E-class of eight ships. .
Emma Mærsk
Homeport:Taarbæk
Built:Odense Staalskibsværft. Hull no. 203
Owner:A.P. Møller-Mærsk A/S
Length o.a.397.71 m
Length b.p.376.0 m
Width56.40 m
Draft15.5 m
Hight of hull30.2 m
Gross tonnage170,974 bt
Net tonnage55,396 nt
Deadweight156,907 DWT
Main engine:Wärtsilä 14RT-Flex96c, 80,080 kW (109,000 hp)
Speed>25.5 knots
Auxiliary:5 x Caterpillar 8M32, 40,000 hp
Next month, the Emma Maersk, the world’s largest container ship, will enter service between Asia and Europe, hauling toys, electronics, clothing, and whatever else can be packed into steel boxes. The vessel, bigger than an aircraft carrier, will hold at least 1,400 more containers than any of the other 3,700 container-carrying vessels now plying the seas. Its capacity will greatly exceed the size of vessels regularly calling on the port of Hampton Roads; those vessels typically can hold between 4,000 and 5,000 20-foot-long containers.That’s a lot of containers,” David Tozer said of the Emma Maersk’s 11,000-container capacity as reported by its owner, Maersk Line. Tozer oversees the worldwide container ship inspection program for London-based Lloyd’s Register, which certifies the seaworthiness of ships.Yet Tozer and other industry experts say Maersk’s figure understates the ship’s true capacity. Based on its 1,303-foot length and 184-foot width, they estimate it could carry up to nearly 15,000 20-foot containers
Vizhinjam project to be retendered
Special Correspondent Thursday, Mar 08, 2007
THIRUVANANTHAPURAM: The Kerala Cabinet on Wednesday decided to invite fresh tenders for the Vizhinjam International Transhipment Terminal Project. Earlier bid for the project had been cancelled on account of objection from the Union Government on security grounds about the presence of two Chinese companies in the consortium that successfully bid for the project.
THIRUVANANTHAPURAM: The Kerala Cabinet on Wednesday decided to invite fresh tenders for the Vizhinjam International Transhipment Terminal Project. Earlier bid for the project had been cancelled on account of objection from the Union Government on security grounds about the presence of two Chinese companies in the consortium that successfully bid for the project.
Tuesday, March 6, 2007
Great Boat Chain May 1st 2005
Minister Sri.M.V.Raghavan inaugurated
Vizhinjam International Seaport CEO Dr.Jayakumar
The Chain formed across the great sea stretching more than 20 KM
Banner in the Sankhumukham Beach
The banner was later displayed in the Sankhumukham beach during visit by PM Dr.Manmohan Singh
The JP TeamThe Banner March
A 400 meter long banner - through the Trivandrum City
Finally stretcehed across the secretariat
Inauguration by Sri. Sali HajiVizhinjam
Saturday, March 3, 2007
Childrens Satyagraha Nov 18 2006
A Satyagraha by School Children was organised at Secretariat on Nov 18 th Sat. It was inaugurated by Childrens Prime minister . Heavy rains lashed through out the day ,but the children were very cool and remained with us . We finally ended it when the entire shed got flooded with rain water .Everybody got drenched .
A magician entertaining the children during the Satyagraha . A memorandum prepared by the children was submitted to the Ports Minister Sri.M.Vijayakumar
Vizhinjam Re tender
Governor mentions about Vizhinjam Port re tender in the Policy speech - reports various media
Friday, March 2, 2007
Bid to get Central grant for Vizhinjam project
Monday, Jan 08, 2007
Tender process to be completed in 8 months
Tender proposals to be placed before the Centre within fortnight
Kolachal project will not affect Vizhinjam prospects: Minister
THIRUVANANTHAPURAM: The State Government will go for a fresh global tender for the Vizhinjam Container Transhipment Terminal, completing the entire process within the next eight months, Minister for Ports M. Vijayakumar has said.
Addressing a press conference here on Sunday, he said the proposal now was to bring the project under the Viability Gap Funding Scheme of the Union Government. The project would then receive the Union Government's grant.
Mr. Vijayakumar said the tender proposal would be placed before the Union Government within a fortnight. The project was awarded to a consortium consisting of Chinese companies and an Indian partner early last year. However, the Union Government did not clear the setting up of the harbour with the involvement of the Chinese companies due to security reasons.
Mr. Vijayakumar said a specific clause would be included in the tender notification stipulating that only companies having the Union Government's security clearance could participate in the bidding. Responding to a question, he said the Tamil Nadu Government's proposal to build a harbour at Kolachal, only a few nautical miles away from Vizhinjam, would not in any way undermine the Vizhinjam project's viability and prospects of getting assistance from the Viability Gap Funding Scheme. Even if Kolachal becomes a harbour, Vizhinjam project would have its significance because of its location in relation to the international shipping route and other ideal natural conditions, he added.
Answering another question, he said the Maritime Development Council should have invited either Chief Minister V.S. Achuthanandan or him to its meeting held in Kochi recently. (The Chief Minister holds charge of the portfolio of Shipping and Inland Navigation.) The State has already conveyed its protest over this to the Centre.
Tender process to be completed in 8 months
Tender proposals to be placed before the Centre within fortnight
Kolachal project will not affect Vizhinjam prospects: Minister
THIRUVANANTHAPURAM: The State Government will go for a fresh global tender for the Vizhinjam Container Transhipment Terminal, completing the entire process within the next eight months, Minister for Ports M. Vijayakumar has said.
Addressing a press conference here on Sunday, he said the proposal now was to bring the project under the Viability Gap Funding Scheme of the Union Government. The project would then receive the Union Government's grant.
Mr. Vijayakumar said the tender proposal would be placed before the Union Government within a fortnight. The project was awarded to a consortium consisting of Chinese companies and an Indian partner early last year. However, the Union Government did not clear the setting up of the harbour with the involvement of the Chinese companies due to security reasons.
Mr. Vijayakumar said a specific clause would be included in the tender notification stipulating that only companies having the Union Government's security clearance could participate in the bidding. Responding to a question, he said the Tamil Nadu Government's proposal to build a harbour at Kolachal, only a few nautical miles away from Vizhinjam, would not in any way undermine the Vizhinjam project's viability and prospects of getting assistance from the Viability Gap Funding Scheme. Even if Kolachal becomes a harbour, Vizhinjam project would have its significance because of its location in relation to the international shipping route and other ideal natural conditions, he added.
Answering another question, he said the Maritime Development Council should have invited either Chief Minister V.S. Achuthanandan or him to its meeting held in Kochi recently. (The Chief Minister holds charge of the portfolio of Shipping and Inland Navigation.) The State has already conveyed its protest over this to the Centre.
Impact of Vizhinjam Port ****
By 2010, (If) when Vizhinjam becomes a reality i.e., An International Container Transshipment hub, then as by the present statistics, India will be doing a cargo trade of nearly 10 million containers. The bulk of long distance container transport will be on very big container mother ships which can call only at deep draft ports like Vizhinjam. The port could be handling the lion’s share of container traffic bound for India and the entire region.
This massive transshipment boom will generate immense revenue for the port, the average transshipment rate is about US $ 110 per container. And a significant share of this, running into hundreds of crores will also find its way into the local economy, in addition to saving valuable foreign exchange for the nation.
Now add to this the revenue from bunkering – the service of fueling and provisioning ships - not only the hundreds of ships which call at Vizhinjam, but also the multitudes which pass close by on the International shipping route. At minimal investment, it will generate significant revenue. The port and accompanying industries – which will soon spring up - will also create major employment opportunities. And as Vizhinjam pegs out a spot on the world map, the industry, trade and tourism will increase in a slash. The export will increase.
The per capita income of the surrounding areas and of the State as a whole will receive a significant boost from this inflow of resources. This is not just dream. It is absolutely possible. The proof is out there.
We just have to take a look at the once insignificant island state of Singapore to realize how development a port can create. In the short time of a few decades, Singapore has transformed from a backwater to one of the world’s richest and most sophisticated cities!
This massive transshipment boom will generate immense revenue for the port, the average transshipment rate is about US $ 110 per container. And a significant share of this, running into hundreds of crores will also find its way into the local economy, in addition to saving valuable foreign exchange for the nation.
Now add to this the revenue from bunkering – the service of fueling and provisioning ships - not only the hundreds of ships which call at Vizhinjam, but also the multitudes which pass close by on the International shipping route. At minimal investment, it will generate significant revenue. The port and accompanying industries – which will soon spring up - will also create major employment opportunities. And as Vizhinjam pegs out a spot on the world map, the industry, trade and tourism will increase in a slash. The export will increase.
The per capita income of the surrounding areas and of the State as a whole will receive a significant boost from this inflow of resources. This is not just dream. It is absolutely possible. The proof is out there.
We just have to take a look at the once insignificant island state of Singapore to realize how development a port can create. In the short time of a few decades, Singapore has transformed from a backwater to one of the world’s richest and most sophisticated cities!
Comparison of Vizhinjam and Vallarpadam Ports
Consideration Vizhinjam Vallarpadam
Geographical location Ideal being open seaport Not so being Estuarine
Proximity to existing
Main Line Nearer Farther
Dredging Not required Required
Break Water Required Not Required
Depth of Water in Channel 24 meters 14 meters
Depth of water at the berth 21 meters 14 meters
Littoral drift/ Siltation Negligibly minimum High
Operational Expenditure Low High due to maintenance dredging
Geological condition Good being Rock/Sand Poor being cohesive soil/
silt being Delta
Foundation Depth Less Deep due to poor soil (app. 60 mts.)
Geographical location Ideal being open seaport Not so being Estuarine
Proximity to existing
Main Line Nearer Farther
Dredging Not required Required
Break Water Required Not Required
Depth of Water in Channel 24 meters 14 meters
Depth of water at the berth 21 meters 14 meters
Littoral drift/ Siltation Negligibly minimum High
Operational Expenditure Low High due to maintenance dredging
Geological condition Good being Rock/Sand Poor being cohesive soil/
silt being Delta
Foundation Depth Less Deep due to poor soil (app. 60 mts.)
A HUB PORT FOR INDIA ***
Considering the growth in containerization in Asia Pacific region and in India itself is there a potential for developing an ICTT in India? Well now that we have seen the Global scenario of trade , containerization , Ship building trends , we feel that the answer is a LOUD YES !!
In East coast at Gangavaram or Tuticorin? Or in west coast at Mundra, Pippavav, JNPT, Vallarpadam (Cochin) or Vizhinjam?
Gangavaram (east coast) The newly coming up port (DVS Raju/DPI consortium) can come up as a very good port with its 20.00mts draught. But it is too far from East-west corridor. Hence it is not a suitable candidate .
Tuticorin (east coast) With its 8/9mts of water depth and rocky bed Tuticorin also hope to develop an ICTT there. The plan was to blast the rock and dredge. The ambitious Sethusamudram project will make it closer to mainline . By dredging the Adam’s Bridge connecting Gulf of Mannar to Palk Strait..
West coast Coming to west coast all ports in Gujarat and Mumbai are too far requiring 2 or 3 days extra voyage for ships. The extra days required definitely counts considering the chartering rates of ships. Mundra has,, all the marine / meteorological, advantages but it is too far. For JNPT the 17.00 km approach channel is the bottleneck added with the distance from main line JNPT also has an ambitious plan of dredging the channel at a cost of some 500.00 Crore. The distance from main line (east-west corridor) definitely counts. A gearless vessel with capacity of 4,500 containers (4th generation) is now being chartered for $47,500 per day. The same vessel was being chartered at $32,000 in 1995 and at $10,600 in 2002. Similarly, a geared vessel with a capacity of 1,700 (1st generation) containers was being chartered at $18,000 per day in 1995 and $5,600 per day in 2002. The same vessel is now being chartered at $21,750 per day. (The chartering rates are highly fluctuating and not steady.) The loss in Freight charges is hence real concern here . The ports in Konkan Kathiavar coast lose out.
Now the choice is between Vallarpadam and Vizhinjam.
Cochin handled 13.572 mmt in 2003-’04. 73.37% is Crude / POL. That means solid cargo handled is only 3.6 mmt. In addition Cochin handled 169965 TEUs containers.
As far as ICTT is concerned both Vallarpadam and Vizhinjam are Greenfield sites.
Cochin is a confluent of 6 rivers (33% of freshet discharge being from Periyar). Due to the problems of siltation Vallarpadam cannot maintain the depths required for the giant ships of future . If dredging is a solution to deepen the channel why Kandla, Mumbai or Murmagoa is not able to call a Panamax?
‘At Cochin the wave climate is governed by the southwest monsoon when wave action can be strong with prevailing wave directions from northwest to southwest. Deep water (15m) wave observations in the past indicate the significant wave heights of 4m, 2m, and 1m at the water depths of 10m, 5m and 2m respectively, the predominant wave direction being west and wave period 9 secs’.
When the significant wave height (Hs) is 4mts at the mouth, the maximum wave height (Hm) will be 7.12 mts, so what is the depth of water required for a ship drawing a draught of 14.5mts, considering Squatting, heaving and pitching?
Draft of Cochin Port Channels
Approach Channel
Outer channel
Length
:
10000 mtrs.
Draft
:
11.7 mtrs.
Width
:
200 mtrs.
Inner channels
Ernakulam channel
Length
:
4720 mtrs.
Draft
:
11.7/10.7 mtrs.
Width
:
244 mtrs
Mattancherry channel
Length
:
4080 mtrs.
Draft
:
9.14 mtrs
Width
:
244 mtrs
In East coast at Gangavaram or Tuticorin? Or in west coast at Mundra, Pippavav, JNPT, Vallarpadam (Cochin) or Vizhinjam?
Gangavaram (east coast) The newly coming up port (DVS Raju/DPI consortium) can come up as a very good port with its 20.00mts draught. But it is too far from East-west corridor. Hence it is not a suitable candidate .
Tuticorin (east coast) With its 8/9mts of water depth and rocky bed Tuticorin also hope to develop an ICTT there. The plan was to blast the rock and dredge. The ambitious Sethusamudram project will make it closer to mainline . By dredging the Adam’s Bridge connecting Gulf of Mannar to Palk Strait..
West coast Coming to west coast all ports in Gujarat and Mumbai are too far requiring 2 or 3 days extra voyage for ships. The extra days required definitely counts considering the chartering rates of ships. Mundra has,, all the marine / meteorological, advantages but it is too far. For JNPT the 17.00 km approach channel is the bottleneck added with the distance from main line JNPT also has an ambitious plan of dredging the channel at a cost of some 500.00 Crore. The distance from main line (east-west corridor) definitely counts. A gearless vessel with capacity of 4,500 containers (4th generation) is now being chartered for $47,500 per day. The same vessel was being chartered at $32,000 in 1995 and at $10,600 in 2002. Similarly, a geared vessel with a capacity of 1,700 (1st generation) containers was being chartered at $18,000 per day in 1995 and $5,600 per day in 2002. The same vessel is now being chartered at $21,750 per day. (The chartering rates are highly fluctuating and not steady.) The loss in Freight charges is hence real concern here . The ports in Konkan Kathiavar coast lose out.
Now the choice is between Vallarpadam and Vizhinjam.
Cochin handled 13.572 mmt in 2003-’04. 73.37% is Crude / POL. That means solid cargo handled is only 3.6 mmt. In addition Cochin handled 169965 TEUs containers.
As far as ICTT is concerned both Vallarpadam and Vizhinjam are Greenfield sites.
Cochin is a confluent of 6 rivers (33% of freshet discharge being from Periyar). Due to the problems of siltation Vallarpadam cannot maintain the depths required for the giant ships of future . If dredging is a solution to deepen the channel why Kandla, Mumbai or Murmagoa is not able to call a Panamax?
‘At Cochin the wave climate is governed by the southwest monsoon when wave action can be strong with prevailing wave directions from northwest to southwest. Deep water (15m) wave observations in the past indicate the significant wave heights of 4m, 2m, and 1m at the water depths of 10m, 5m and 2m respectively, the predominant wave direction being west and wave period 9 secs’.
When the significant wave height (Hs) is 4mts at the mouth, the maximum wave height (Hm) will be 7.12 mts, so what is the depth of water required for a ship drawing a draught of 14.5mts, considering Squatting, heaving and pitching?
Draft of Cochin Port Channels
Approach Channel
Outer channel
Length
:
10000 mtrs.
Draft
:
11.7 mtrs.
Width
:
200 mtrs.
Inner channels
Ernakulam channel
Length
:
4720 mtrs.
Draft
:
11.7/10.7 mtrs.
Width
:
244 mtrs
Mattancherry channel
Length
:
4080 mtrs.
Draft
:
9.14 mtrs
Width
:
244 mtrs
DREDGING AT MAJOR PORTS
Now we would like to call your attention to problem of dredging in the Indian Ports .Dredging has been the most important activity for many ports ! to maintain themselves .Here , Vizhinjam comes a breath of fresh air ,with no need for any significant maintenance dredging .
The following is an excerpt from “THE FIFTY-SEVENTH REPORT ON DEMANDS FOR GRANTS (2002-2003), (DEMAND NO. 77) OF THE MINISTRY OF SHIPPING” prepared by the department-related parliamentary standing committee on transport & tourism
25 Dredging is the key function of any Major Port so as to maintain adequate navigable depth of the shipping channel. Dredging is generally classified into capital dredging and maintenance dredging. Capital dredging is done as part of port development, where as, Maintenance dredging has to be done regularly to maintain the depth of shipping channel. Dredging Corporation of India Ltd. is the premier company set up in 1976 to cater to the dredging needs of the Major Ports of the country on contract basis. It caters to about 65% of the maintenance dredging needs of the country.
26. In his deposition before the Committee, the Secretary, Ministry of Shipping explained that the Ministry is facing a lot of problems in respect of dredging. As no budgetary support is at present given to Major Ports for the development and expansion, the capital dredging, to the extent possible are also done by the port themselves, either through their own resources or from the borrowed funds. However, the ports are not in a position to spare adequate funds for capital dredging. At present, big vessels are not operating in our Ports. As much as 68 to 70% of the transshipment is being done outside the country. Countries like Sri Lanka, Dubai and Singapore have gained at our expense.
27. In the present age of information and modernization, shipping industry is encountering with the fast changes i.e. increased sizes of ship. The bigger ships result into a substantial reduction in freight and as such are preferred by shippers. But these bigger ships are unable to call on indian ports because these ships need greater depth and wider channel. Most of the Indian ports suffer from draft limitations. In case the draft is not in improved by undertaking, Capital dredging, the future of Major Ports would be at stake because they will not be in a position to retain their volume of traffic. Therefore, the capital dredging at a number of Indian Major Ports is basic requirement for the long-term survival of Ports and improving competitiveness of Indian trade. In a developed country like United States of America, the requirement of capital dredging is stated to be made by the state.
28. The Committee notes that Major Ports are spending large amount on the capital dredging either through their own resources or from the borrowed funds, which has definitely affected their financial performance. It is also a fact that for the ports, it is difficult to raise borrowings for capital dredging because it may not result into commensurate incremental resources. The Committee, therefore, recommends that capital dredging at all the Major Ports should be taken as national priority by the Government of India. The Government of India, as a matter of policy should provide adequate plan funds to all the Major Ports for carrying out Capital Dredging at the Ports.”
The following is an excerpt from “THE FIFTY-SEVENTH REPORT ON DEMANDS FOR GRANTS (2002-2003), (DEMAND NO. 77) OF THE MINISTRY OF SHIPPING” prepared by the department-related parliamentary standing committee on transport & tourism
25 Dredging is the key function of any Major Port so as to maintain adequate navigable depth of the shipping channel. Dredging is generally classified into capital dredging and maintenance dredging. Capital dredging is done as part of port development, where as, Maintenance dredging has to be done regularly to maintain the depth of shipping channel. Dredging Corporation of India Ltd. is the premier company set up in 1976 to cater to the dredging needs of the Major Ports of the country on contract basis. It caters to about 65% of the maintenance dredging needs of the country.
26. In his deposition before the Committee, the Secretary, Ministry of Shipping explained that the Ministry is facing a lot of problems in respect of dredging. As no budgetary support is at present given to Major Ports for the development and expansion, the capital dredging, to the extent possible are also done by the port themselves, either through their own resources or from the borrowed funds. However, the ports are not in a position to spare adequate funds for capital dredging. At present, big vessels are not operating in our Ports. As much as 68 to 70% of the transshipment is being done outside the country. Countries like Sri Lanka, Dubai and Singapore have gained at our expense.
27. In the present age of information and modernization, shipping industry is encountering with the fast changes i.e. increased sizes of ship. The bigger ships result into a substantial reduction in freight and as such are preferred by shippers. But these bigger ships are unable to call on indian ports because these ships need greater depth and wider channel. Most of the Indian ports suffer from draft limitations. In case the draft is not in improved by undertaking, Capital dredging, the future of Major Ports would be at stake because they will not be in a position to retain their volume of traffic. Therefore, the capital dredging at a number of Indian Major Ports is basic requirement for the long-term survival of Ports and improving competitiveness of Indian trade. In a developed country like United States of America, the requirement of capital dredging is stated to be made by the state.
28. The Committee notes that Major Ports are spending large amount on the capital dredging either through their own resources or from the borrowed funds, which has definitely affected their financial performance. It is also a fact that for the ports, it is difficult to raise borrowings for capital dredging because it may not result into commensurate incremental resources. The Committee, therefore, recommends that capital dredging at all the Major Ports should be taken as national priority by the Government of India. The Government of India, as a matter of policy should provide adequate plan funds to all the Major Ports for carrying out Capital Dredging at the Ports.”
Shipping Trend***
One of the most significant trends affecting the container shipping industry has been the ongoing increase in the size of vessels employed. Over the last fifteen years or so the capacity of the largest container vessel in service has virtually doubled from around 4,500 teu to 8,400 teu. Recently 9,600 teu vessels have been ordered and the ordering of even larger vessels of up to 12,000 teu (i.e. Suez-max) is anticipated. Naval architects suggest it may eventually be feasible to construct and operate ships of 18,000 teu (Malacca-max), although as yet there are no signs of the industry moving this far ahead.
Table Below presents design parameters of the current and future anticipated largest container ships. Current largest ships of 8,400 teu have a length of 348m, beam of 42.8m and draught of 14.0m. Adding 10% for underkeel clearance, this implies a minimum channel depth of at least 15.4m is required in port and alongside the berth. The squat phenomenon is also important in that such vessels may in fact reach 16.0m when sailing in shallow water, such as port channels.
Moving up to a 12,000 teu ship size (expected before 2010), channel/berth draught requirements would increase to 18.74m. New transhipment hubs such as Salalah and Tanjung Pelepas are currently planning to increase channel depth to 18m. Beyond 2010, if the Malaccamax is ever built and 18,000 teu ships enter service, required channel/berth depth would increase to 23.1m.
The introduction of bigger ships places additional burdens on ports to increase the depth of water in entrance channels and alongside berths far above what is currently offered. This implies that much greater investment is necessary in port infrastructure. Channel width must also be increased to take account of the wider ship beam, plus turning circles have to be enlarged to take account of greater vessel length. Modifications necessary on the shoreside include bigger cranes with longer outreach, lift height, and loading capacity. Current ‘super’ post-Panamax cranes can weigh over 1,300 tonnes with greater wheel loads necessitating far stronger quay structures.
China is preparing in big way and Ningbo Port and Qingdao port are being developed. By the end of the 10th Five-year Plan period, cargo throughput of the Port of Ningbo will reach 150 million tons and container throughput will break through 3 million TEU. The port has taken trial voyage of 6th generation container ships. The port can take 200000 to 300000 DWT VLCC and ULCC vessels! The ship size categories are shown below.
Table Below presents design parameters of the current and future anticipated largest container ships. Current largest ships of 8,400 teu have a length of 348m, beam of 42.8m and draught of 14.0m. Adding 10% for underkeel clearance, this implies a minimum channel depth of at least 15.4m is required in port and alongside the berth. The squat phenomenon is also important in that such vessels may in fact reach 16.0m when sailing in shallow water, such as port channels.
Moving up to a 12,000 teu ship size (expected before 2010), channel/berth draught requirements would increase to 18.74m. New transhipment hubs such as Salalah and Tanjung Pelepas are currently planning to increase channel depth to 18m. Beyond 2010, if the Malaccamax is ever built and 18,000 teu ships enter service, required channel/berth depth would increase to 23.1m.
The introduction of bigger ships places additional burdens on ports to increase the depth of water in entrance channels and alongside berths far above what is currently offered. This implies that much greater investment is necessary in port infrastructure. Channel width must also be increased to take account of the wider ship beam, plus turning circles have to be enlarged to take account of greater vessel length. Modifications necessary on the shoreside include bigger cranes with longer outreach, lift height, and loading capacity. Current ‘super’ post-Panamax cranes can weigh over 1,300 tonnes with greater wheel loads necessitating far stronger quay structures.
China is preparing in big way and Ningbo Port and Qingdao port are being developed. By the end of the 10th Five-year Plan period, cargo throughput of the Port of Ningbo will reach 150 million tons and container throughput will break through 3 million TEU. The port has taken trial voyage of 6th generation container ships. The port can take 200000 to 300000 DWT VLCC and ULCC vessels! The ship size categories are shown below.
The Chinese angle
China is adopting a “string of pearls” strategy for naval bases from the Middle East to the South China Sea. The list includes a new base under construction at the Pakistani port of Gwadar,. Other “pearls” include a container port facility at Chittagong, Bangladesh; a naval base under construction in Burma;. In Cambodia, Beijing is helping to construct a railway line from southern China to the sea. Beijing is also discussing with Thailand a canal or railroad across the Kra Isthmus, which would allow shipments to bypass the narrow Strait of Malacca. China’s scorching economic expansion is powering a growing armada of ever-larger container ships plying the waters between Asia and North America. Shanghai, which has been busy reclaiming its status as China’s premier financial and commercial center, is launching more of those ships as its port averages an annual growth rate of 29%. But fast growth can apply a chokehold to aging facilities and the port’s efficiency now is foundering on the shallow, silted Yangtze River bottom. To compensate, planners are moving Shanghai’s far- ocean cargo business from shallow water to deepwater, 31 kilometers off the coast.
Qiqu archipelago, tucked into the mouth of Hangzhou Bay, is being transformed into what soon could become the world’s largest container port. A fleet of dredges has been working since March 2003 to reclaim 26 million cu meters of land from the deep waters off Xiaoyangshan and Huogaitan islands, where five new berths will handle the latest generation of container vessels in the project’s $2-billion first phase. A 32-km-long causeway anchored by five cable-stayed spans will connect the island terminal to the mainland. There, local contractors are building a multimodal transport hub, a new town and a 42-km-long highway to speed goods to their ultimate destination.
On the islands, a double-deck expressway will separate inbound and outbound traffic, with inbound vehicles traveling on a 7-m elevated structure and outbound vehicles on the upper roadway. When the project is complete in 2020, 32 berths will handle over 20 million 20-ft equivalent units (TEUs) per year and push Yangshan Deepwater Port ahead of Singapore and Hong Kong in capacity and throughput.
Hutchison Port Holdings ,worlds largest port operator is a Chinese company .They have recently built Worlds largest Container Transhipment terminal in Bahamas – The Free Port Container Port . Freeport Container Port (FCP) is situated on Grand Bahama Island - one of the largest islands that comprise The Commonwealth of the Bahamas.
The Port, endowed with one of the deepest natural harbours in the region, is just 65 miles off the east coast of Florida, USA and sits at the centre of a 230 square mile free-trade-zone.Freeport Container Port is strategically located to serve as a major world container transshipment hub between the Eastern Gulf Coasts of the United States, the Gulf of Mexico, the Caribbean, South America, and trade lanes to European, Mediterranean, Far Eastern and Australasian destinations. It offers a cost effective, flexible solution for the regional transshipment requirements of shipping lines, combining state-of-the art terminal facilities with significant expansion potential.
Qiqu archipelago, tucked into the mouth of Hangzhou Bay, is being transformed into what soon could become the world’s largest container port. A fleet of dredges has been working since March 2003 to reclaim 26 million cu meters of land from the deep waters off Xiaoyangshan and Huogaitan islands, where five new berths will handle the latest generation of container vessels in the project’s $2-billion first phase. A 32-km-long causeway anchored by five cable-stayed spans will connect the island terminal to the mainland. There, local contractors are building a multimodal transport hub, a new town and a 42-km-long highway to speed goods to their ultimate destination.
On the islands, a double-deck expressway will separate inbound and outbound traffic, with inbound vehicles traveling on a 7-m elevated structure and outbound vehicles on the upper roadway. When the project is complete in 2020, 32 berths will handle over 20 million 20-ft equivalent units (TEUs) per year and push Yangshan Deepwater Port ahead of Singapore and Hong Kong in capacity and throughput.
Hutchison Port Holdings ,worlds largest port operator is a Chinese company .They have recently built Worlds largest Container Transhipment terminal in Bahamas – The Free Port Container Port . Freeport Container Port (FCP) is situated on Grand Bahama Island - one of the largest islands that comprise The Commonwealth of the Bahamas.
The Port, endowed with one of the deepest natural harbours in the region, is just 65 miles off the east coast of Florida, USA and sits at the centre of a 230 square mile free-trade-zone.Freeport Container Port is strategically located to serve as a major world container transshipment hub between the Eastern Gulf Coasts of the United States, the Gulf of Mexico, the Caribbean, South America, and trade lanes to European, Mediterranean, Far Eastern and Australasian destinations. It offers a cost effective, flexible solution for the regional transshipment requirements of shipping lines, combining state-of-the art terminal facilities with significant expansion potential.
Container Shipment Economics Study
We would like to invite your attention to the Container Shipment Economics Study carried out IL&FS Infrastructure Development Corporation and Hauer Associates.
“The proposed deepwater international container trans-shipment terminal at Vizhinjam is expected to bring down the total costs of movement of containers to and from foreign destinations.The study, has also found that the Sethusamudram project will promote inter-coastal movements of Indian cargo, enhancing the potential of Vizhinjam as a trans-shipment hub.The study says that container traffic at Indian ports has increased by 102 per cent over the previous five years to 3.9 million twenty- foot equivalent units (TEUs) in 2003-04. The rapid growth is expected to continue and by 2016-17, the country will handle 15.64million TEUs.On the other hand, the present Indian gateway ports do not attract a sufficient number of mainline vessels due to inadequate facilities and the distance from international shipping routes. As of now, about 61 per cent of Indian export/import containers are trans-shipped through the nearby foreign ports of Colombo, Singapore and Salalah (Oman.)This results in an additional burden of up to $200 per TEU of cargo interests with freight paid by Indian exporters being 11.4 per cent of the c.i.f (cost, insurance, freight) value of goods as against the world average of 6.1 per cent.Nearly 69 per cent of the country's total container traffic originates in or is bound for northern and western India with the South accounting for 26 per cent and the East a mere five per cent. The Jawaharlal Nehru Port Trust handles 58 per cent of this totaltraffic.The main containerized cargoes are garments, electronic goods, agro-products, cotton yarn, machinery and parts, granite, coir, leather and jute products. The US /Canada /South America sector, with a 28 per cent share, is the main destination for containerized exports, while the Far East sector, with a share of 25 per cent, is the main originfor containerized imports.Notwithstanding the location of Vizhinjam in the deep South, cargo interests in the southern, northern and western regions may find it more viable to use the port as a gateway/trans-shipment terminal instead of Colombo, Singapore or Salalah. This means the hinterland of the port may extend to the western and northern parts of thecountry.The study estimates that 1.35 - 1.60 million TEUs are likely to be diverted through Vizhinjam by 2016-17 and this will be further augmented by foreign trans-shipment containers and also by the Sethusamudram project.”
Ideally berth occupancy for container terminals is not expected to be anything beyond 70% leaving enough time for maintenance of berths and periodic servicing of handling equipments and accessories.One of the reasons for congestion at Indian major ports is because of the almost 100% utilization of container berths which by any international standard is an unhealthy situation . This underscores the urgency and imperative need of augmenting container terminal capacity at Indian major ports in next 5 years.
“The proposed deepwater international container trans-shipment terminal at Vizhinjam is expected to bring down the total costs of movement of containers to and from foreign destinations.The study, has also found that the Sethusamudram project will promote inter-coastal movements of Indian cargo, enhancing the potential of Vizhinjam as a trans-shipment hub.The study says that container traffic at Indian ports has increased by 102 per cent over the previous five years to 3.9 million twenty- foot equivalent units (TEUs) in 2003-04. The rapid growth is expected to continue and by 2016-17, the country will handle 15.64million TEUs.On the other hand, the present Indian gateway ports do not attract a sufficient number of mainline vessels due to inadequate facilities and the distance from international shipping routes. As of now, about 61 per cent of Indian export/import containers are trans-shipped through the nearby foreign ports of Colombo, Singapore and Salalah (Oman.)This results in an additional burden of up to $200 per TEU of cargo interests with freight paid by Indian exporters being 11.4 per cent of the c.i.f (cost, insurance, freight) value of goods as against the world average of 6.1 per cent.Nearly 69 per cent of the country's total container traffic originates in or is bound for northern and western India with the South accounting for 26 per cent and the East a mere five per cent. The Jawaharlal Nehru Port Trust handles 58 per cent of this totaltraffic.The main containerized cargoes are garments, electronic goods, agro-products, cotton yarn, machinery and parts, granite, coir, leather and jute products. The US /Canada /South America sector, with a 28 per cent share, is the main destination for containerized exports, while the Far East sector, with a share of 25 per cent, is the main originfor containerized imports.Notwithstanding the location of Vizhinjam in the deep South, cargo interests in the southern, northern and western regions may find it more viable to use the port as a gateway/trans-shipment terminal instead of Colombo, Singapore or Salalah. This means the hinterland of the port may extend to the western and northern parts of thecountry.The study estimates that 1.35 - 1.60 million TEUs are likely to be diverted through Vizhinjam by 2016-17 and this will be further augmented by foreign trans-shipment containers and also by the Sethusamudram project.”
Ideally berth occupancy for container terminals is not expected to be anything beyond 70% leaving enough time for maintenance of berths and periodic servicing of handling equipments and accessories.One of the reasons for congestion at Indian major ports is because of the almost 100% utilization of container berths which by any international standard is an unhealthy situation . This underscores the urgency and imperative need of augmenting container terminal capacity at Indian major ports in next 5 years.
The Asian and Global Scenario**
World trade has shown a relentless spiral upwards ,especially in the new economy .In 2002 the world seaborne trade stood at 5.9 Billion tonne of goods loaded worth nearly 6 Trillion US$ .The total value of World merchandise export was 7.3 Trillion US$ in 2003(World trade Report 2004) ..
The cargo volume is estimated to be increasing at 3.7% and containerization at 7%.(source :World watch Institute). 90% of World cargo is now containerized.
The three major Asian trades are :
Asia – North America
Asia – Europe
Intra Asia
Asia-North America trade is expected to grow at the rate of 5.1% per annum over the next decade for the West bound trade while the growth rate for the East bound trade is expected to grow at 5.7% per annum .In the Asia-Europe trade East bound and West bound trade is expected to grow at the rate of 7.7% per annum upto 2011.As far as Intra-Asia trade is concerned the ESCAP study have found that the rate of growth will be at 7.6% per annum upto 2011.
Asian countries are significant world players in many sectors of maritime transport .They account for about half of the crews,two thirds of global port operators 83% of container ship building and 99% of demolition .28 of worlds largest liner shipping companies are based in Asia.
Containerised trade of South and East Asian countries is forecated to expand at an annula rate of 11% from 2005 fuelled by the strong Intra-Asian trade ,as well as Chinese exports to North America and Europe.Container Transshipment through existing and also new Hub ports in Asia has continued to expand.In 2004 the worlds six largest container ports and 20 of the worlds top 30 were located in Asia.
According to Korea Maritime Institute the Chinese container traffic will increase to 130 million TEUs by 2011 and in all probability Shanghai will emerge as the largest port in the world.
According to ESCAP study the total volume of containers transshipped within the ESCAP region will increase from the present 47 million TEUs to 64 million TEUs by 2011 and the share of transshipment in total port volume will increase to 30% in 2011.This study has also found that there is scope for 9 global scale transshipment ports to come up in ESCAP region – each handling in excess of 3 million TEU of transshipment each year.
Eurogate terminal ,Germany estimates that future will see 10 deepwater ports ,three of which will be located in Asia and one in middle-east .
At Asian end ,following ports are seriously planning for this size
.1.Singapore 2.Hongkong 3. ? Can it be Vizhinjam .
Where do Indian Container Ports get placed in comparison with the top thirty Container Ports in 2004? The only Indian container port namely the JN Port in New Mumbai which appeared at the 30th position in 2003 does not figure in top thirty container ports in 2004 despite handling 2.36 million TEUs registering a growth of 8.62% over 2003.
It has, however, managed to get placed at the 31st position ahead of Salalah in Oman (2.28 million TEUs) and Colombo in Sri Lanka (2.22 million TEUs). Honkong and Singapore have maintained the world’s No: 1 and No: 2 positions by handling 21.93 million TEUs and 20.60 million TEUs registering a growth of 7.3% and 13.8% respectively.
The Chinese ports of Shanghai and Shenzhen come to the 3rd and 4th positions by handling 14.5 million and 13.65 million TEUs respectively by registering a growth of 29%. Bussan in South Korea and Kaochsiung in Taiwan maintained the 5th and 6th positions by handling 11.4 million and 9.7 million TEUs respectively. Rotterdam in Netherlands, Los Angeles in the US and Hamburg in Germany occupied the 7th, 8th and 9th positions respectively.
Dubai Ports Authority moved up to the 10th position displacing Antwerp in Belgium with an impressive 24.8% rise to 6.42 million TEUs (Source: Containerization International, London). The performance figures of the top ten container ports reveal that the top six container ports are from the Asian region. The eight Chinese ports among the top 30 container ports together handled about 70 million TEUs-about 35% of 196 million TEUs handled by all the top 30 container ports. According to the Korea Maritime Institute Chinese container traffic will increase to 130 million TEUs by 2011 and in all probability Shanghai will emerge as the world’s largest container port by 2011.
An analysis of the modern trends in containerization in India reveals that the annual average rate of growth of containerization for the whole period from 1990-1999 was 13.7%. In the first five years from 2000-2004 the growth rate worked out to 13.91%. India’s container traffic which was 3.90 million TEUs in 2003-2004 is likely to rise to 4.5 million TEUs in 2004-2005 including the traffic handled in Mundra and Pipavav ports which represent an increase of about 15.38%.
The Japan International Consulting Agency (JICA) has assumed a growth rate of 16% and estimated that India’s box traffic would reach 10 million TEUs by 2010 with the western region accounting for 70% of the container traffic. Since a 7 to 8% growth in India’s GDP is now considered achievable for the next ten years a 14% growth in container traffic annually could be expected for the period 2005-2015. Based on such assumptions India’s container traffic will rise to 8.66 million TEUs by 2010 and 16.68 million TEUs in 2015.
Does India have enough capacity to handle the projected traffic? The current capacity available at Indian major ports for container traffic is estimated to be around 4 million TEUs. The traffic handled in the current year has already exceeded the available capacity and this was the main reason why most container terminals at Indian major ports experienced congestion. The two additional terminals to be created at the JN Port, the new off-shore terminal being planned in Mumbai, expansion of the Chennai, Tuticorin and Vishakapatnam terminals, the new terminals to come up in Kandla, Cochin etc… in the next five years can at best add another 4 million TEUs. This should suggest that by 2010 while the traffic will reach 8.66 million TEUs the capacity is likely to be only 8 million TEUs indicating a short fall. One of the conclusions of the latest port sector report 2004 of Drewry Shipping Consultants, London is that in the Asian region demand will outstrip supply within five years unless additional projects are brought to fruition. An ESCAP study on port development strategies has concluded that in order to handle the anticipated port container traffic in 2011 the south Asian region alone will require about 40 berths.
The most significant technological development in container shipping is the emergence of large-sized ships. It has two significant effects on international shipping since ship size not only determines competitive power in the shipping industry but also becomes a major criterion in determining the size of a port. Many competent and experienced analysts believed that once the container ship size reached 10,000 TEUs diseconomies of scale would start operating as two engines would be required to power such huge ships. But, with new developments in engine design, single engine vessels of 10,000 TEU and above can now be built. The Chinese shipping line COSCO has ordered on Hyundai Heavy Industries four super-post-panamax ships of 10,000 TEU-each costing about US $ 127 million to be delivered in 2008.
Recent reports suggest that A P Moller-Maersk Odense shipyard in Denmark has plans to build eight super-post-panamax ships of 13,000 TEU capacity with the new K98 engine. About 123 ships with capacity 8000 Drewry Shipping Consultants have reported that when compared to a 4,000 TEU ship a 10,000 TEU ship results in 37% operating cost savings. A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be in service globally out of which approximately 130 will be of 10,000 TEU and above. It has become increasingly clear now that there are no insurmountable technical barriers to the future increase in size of container ships. Concept designs already exist for ships up to 18,000 TEUs. The limits to grow, if there are any, will be market driven.
The advent of larger container ships has made large ships the key issue in port development. What are its implications? The new transhipment container terminal in Vallarpadam is designed to accommodate container ships up to 8,000 TEU capacity drawing a draught not exceeding 14.5 m. By 2010-11 when Cochin terminal becomes fully operational super-post-panamax vessels of 8,000-15,000 TEU capacity will have already begun their service on the main shipping routes thereby reducing Cochin terminal’s competitive advantage. India will need a mega container transhipment terminal in order to capture the transhipment business. For example, 15,000 TEU vessels would require special berths that would permit them to be worked from both sides. In addition, mega hubs need a depth of 18-20 m. In such a scenario, Cochin container terminal can function as a regional logistics and transhipment hub for vessels up to 8,000 TEUs and Vizhinjam, near Thiruvanathapuram could emerge holding excellent potential to be developed as a mega transhipment hub for vessels in the range of 8,000-15,000 TEUs.
But this can naturally give rise to a question-will there be enough traffic volumes to support a regional logistics and transhipment hub in Cochin and a mega transhipment hub in Vizhinjam? Can two transhipment terminals co-exist and function within a distance of about 200 Kms from each other? A recent ESCAP study has found that the total volume of containers transshipped within the ESCAP region will increase from 47 million TEUs in 2006 to 64 million TEUs by 2011 and the share of transhipment in total port volume will increase to 30% in 2011. This study has also found that there is scope for nine global scale transhipment ports to come up in the ESCAP region-each handling in excess of 3 million TEUs of transhipment traffic per year. The mega transhipment port of Tanjung Pelepas, the 16th largest in the world has handled 4 million TEUs. This port is situated only about 150 Kms from the 13th largest port namely Port Klang in Malaysia which has also handled 5.2 million TEUs. The Chinese port of Ningbo, the 17th largest in the world is situated only 200 Kms away from Shanghai. The new South Korean transhipment port of Gwangyang is situated only 170 Kms from the 5th largest port of Bussan. The scale and the volume of container transhipment traffic in the region should suggest that there is enough room for ports to co-exist and function even in close proximity.
The Malaysian transhipment port of Tanjung Pelepas which was hardly known in international shipping in the year 2000 will transform itself into the largest container port in Malaysia in 2005 weathering the increasingly tough competition with Singapore. While Tanjung Pelepas offers 19 m draught alongside Vizhinjam could offer even 20m draught. Endowed with a favourable geographical location, natural depth of water, green field site and the absence of a regulatory and bureaucratic regime Vizhinjam can present itself as an excellent site for a mega container transhipment terminal.
The cargo volume is estimated to be increasing at 3.7% and containerization at 7%.(source :World watch Institute). 90% of World cargo is now containerized.
The three major Asian trades are :
Asia – North America
Asia – Europe
Intra Asia
Asia-North America trade is expected to grow at the rate of 5.1% per annum over the next decade for the West bound trade while the growth rate for the East bound trade is expected to grow at 5.7% per annum .In the Asia-Europe trade East bound and West bound trade is expected to grow at the rate of 7.7% per annum upto 2011.As far as Intra-Asia trade is concerned the ESCAP study have found that the rate of growth will be at 7.6% per annum upto 2011.
Asian countries are significant world players in many sectors of maritime transport .They account for about half of the crews,two thirds of global port operators 83% of container ship building and 99% of demolition .28 of worlds largest liner shipping companies are based in Asia.
Containerised trade of South and East Asian countries is forecated to expand at an annula rate of 11% from 2005 fuelled by the strong Intra-Asian trade ,as well as Chinese exports to North America and Europe.Container Transshipment through existing and also new Hub ports in Asia has continued to expand.In 2004 the worlds six largest container ports and 20 of the worlds top 30 were located in Asia.
According to Korea Maritime Institute the Chinese container traffic will increase to 130 million TEUs by 2011 and in all probability Shanghai will emerge as the largest port in the world.
According to ESCAP study the total volume of containers transshipped within the ESCAP region will increase from the present 47 million TEUs to 64 million TEUs by 2011 and the share of transshipment in total port volume will increase to 30% in 2011.This study has also found that there is scope for 9 global scale transshipment ports to come up in ESCAP region – each handling in excess of 3 million TEU of transshipment each year.
Eurogate terminal ,Germany estimates that future will see 10 deepwater ports ,three of which will be located in Asia and one in middle-east .
At Asian end ,following ports are seriously planning for this size
.1.Singapore 2.Hongkong 3. ? Can it be Vizhinjam .
Where do Indian Container Ports get placed in comparison with the top thirty Container Ports in 2004? The only Indian container port namely the JN Port in New Mumbai which appeared at the 30th position in 2003 does not figure in top thirty container ports in 2004 despite handling 2.36 million TEUs registering a growth of 8.62% over 2003.
It has, however, managed to get placed at the 31st position ahead of Salalah in Oman (2.28 million TEUs) and Colombo in Sri Lanka (2.22 million TEUs). Honkong and Singapore have maintained the world’s No: 1 and No: 2 positions by handling 21.93 million TEUs and 20.60 million TEUs registering a growth of 7.3% and 13.8% respectively.
The Chinese ports of Shanghai and Shenzhen come to the 3rd and 4th positions by handling 14.5 million and 13.65 million TEUs respectively by registering a growth of 29%. Bussan in South Korea and Kaochsiung in Taiwan maintained the 5th and 6th positions by handling 11.4 million and 9.7 million TEUs respectively. Rotterdam in Netherlands, Los Angeles in the US and Hamburg in Germany occupied the 7th, 8th and 9th positions respectively.
Dubai Ports Authority moved up to the 10th position displacing Antwerp in Belgium with an impressive 24.8% rise to 6.42 million TEUs (Source: Containerization International, London). The performance figures of the top ten container ports reveal that the top six container ports are from the Asian region. The eight Chinese ports among the top 30 container ports together handled about 70 million TEUs-about 35% of 196 million TEUs handled by all the top 30 container ports. According to the Korea Maritime Institute Chinese container traffic will increase to 130 million TEUs by 2011 and in all probability Shanghai will emerge as the world’s largest container port by 2011.
An analysis of the modern trends in containerization in India reveals that the annual average rate of growth of containerization for the whole period from 1990-1999 was 13.7%. In the first five years from 2000-2004 the growth rate worked out to 13.91%. India’s container traffic which was 3.90 million TEUs in 2003-2004 is likely to rise to 4.5 million TEUs in 2004-2005 including the traffic handled in Mundra and Pipavav ports which represent an increase of about 15.38%.
The Japan International Consulting Agency (JICA) has assumed a growth rate of 16% and estimated that India’s box traffic would reach 10 million TEUs by 2010 with the western region accounting for 70% of the container traffic. Since a 7 to 8% growth in India’s GDP is now considered achievable for the next ten years a 14% growth in container traffic annually could be expected for the period 2005-2015. Based on such assumptions India’s container traffic will rise to 8.66 million TEUs by 2010 and 16.68 million TEUs in 2015.
Does India have enough capacity to handle the projected traffic? The current capacity available at Indian major ports for container traffic is estimated to be around 4 million TEUs. The traffic handled in the current year has already exceeded the available capacity and this was the main reason why most container terminals at Indian major ports experienced congestion. The two additional terminals to be created at the JN Port, the new off-shore terminal being planned in Mumbai, expansion of the Chennai, Tuticorin and Vishakapatnam terminals, the new terminals to come up in Kandla, Cochin etc… in the next five years can at best add another 4 million TEUs. This should suggest that by 2010 while the traffic will reach 8.66 million TEUs the capacity is likely to be only 8 million TEUs indicating a short fall. One of the conclusions of the latest port sector report 2004 of Drewry Shipping Consultants, London is that in the Asian region demand will outstrip supply within five years unless additional projects are brought to fruition. An ESCAP study on port development strategies has concluded that in order to handle the anticipated port container traffic in 2011 the south Asian region alone will require about 40 berths.
The most significant technological development in container shipping is the emergence of large-sized ships. It has two significant effects on international shipping since ship size not only determines competitive power in the shipping industry but also becomes a major criterion in determining the size of a port. Many competent and experienced analysts believed that once the container ship size reached 10,000 TEUs diseconomies of scale would start operating as two engines would be required to power such huge ships. But, with new developments in engine design, single engine vessels of 10,000 TEU and above can now be built. The Chinese shipping line COSCO has ordered on Hyundai Heavy Industries four super-post-panamax ships of 10,000 TEU-each costing about US $ 127 million to be delivered in 2008.
Recent reports suggest that A P Moller-Maersk Odense shipyard in Denmark has plans to build eight super-post-panamax ships of 13,000 TEU capacity with the new K98 engine. About 123 ships with capacity 8000 Drewry Shipping Consultants have reported that when compared to a 4,000 TEU ship a 10,000 TEU ship results in 37% operating cost savings. A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be in service globally out of which approximately 130 will be of 10,000 TEU and above. It has become increasingly clear now that there are no insurmountable technical barriers to the future increase in size of container ships. Concept designs already exist for ships up to 18,000 TEUs. The limits to grow, if there are any, will be market driven.
The advent of larger container ships has made large ships the key issue in port development. What are its implications? The new transhipment container terminal in Vallarpadam is designed to accommodate container ships up to 8,000 TEU capacity drawing a draught not exceeding 14.5 m. By 2010-11 when Cochin terminal becomes fully operational super-post-panamax vessels of 8,000-15,000 TEU capacity will have already begun their service on the main shipping routes thereby reducing Cochin terminal’s competitive advantage. India will need a mega container transhipment terminal in order to capture the transhipment business. For example, 15,000 TEU vessels would require special berths that would permit them to be worked from both sides. In addition, mega hubs need a depth of 18-20 m. In such a scenario, Cochin container terminal can function as a regional logistics and transhipment hub for vessels up to 8,000 TEUs and Vizhinjam, near Thiruvanathapuram could emerge holding excellent potential to be developed as a mega transhipment hub for vessels in the range of 8,000-15,000 TEUs.
But this can naturally give rise to a question-will there be enough traffic volumes to support a regional logistics and transhipment hub in Cochin and a mega transhipment hub in Vizhinjam? Can two transhipment terminals co-exist and function within a distance of about 200 Kms from each other? A recent ESCAP study has found that the total volume of containers transshipped within the ESCAP region will increase from 47 million TEUs in 2006 to 64 million TEUs by 2011 and the share of transhipment in total port volume will increase to 30% in 2011. This study has also found that there is scope for nine global scale transhipment ports to come up in the ESCAP region-each handling in excess of 3 million TEUs of transhipment traffic per year. The mega transhipment port of Tanjung Pelepas, the 16th largest in the world has handled 4 million TEUs. This port is situated only about 150 Kms from the 13th largest port namely Port Klang in Malaysia which has also handled 5.2 million TEUs. The Chinese port of Ningbo, the 17th largest in the world is situated only 200 Kms away from Shanghai. The new South Korean transhipment port of Gwangyang is situated only 170 Kms from the 5th largest port of Bussan. The scale and the volume of container transhipment traffic in the region should suggest that there is enough room for ports to co-exist and function even in close proximity.
The Malaysian transhipment port of Tanjung Pelepas which was hardly known in international shipping in the year 2000 will transform itself into the largest container port in Malaysia in 2005 weathering the increasingly tough competition with Singapore. While Tanjung Pelepas offers 19 m draught alongside Vizhinjam could offer even 20m draught. Endowed with a favourable geographical location, natural depth of water, green field site and the absence of a regulatory and bureaucratic regime Vizhinjam can present itself as an excellent site for a mega container transhipment terminal.
Competitiveness of Indian Ports
.
World Freight payments, as a percentage of total import value (cif), stood at 6.21% in 2000 as per UNCTAD. For developed countries, it stood at 5.21% and for developing
countries it stood at 8.83%. For India, freight payments as a percentage of total import value stood at 10.32% (1997) and estimated to be around 11.4% in 2000. As per UNCTAD, such variation could be explained by differences in trade and shipping patterns, particularly in the liner sector, where the growing importance of feeder operations tend to place those countries not covered by mainline services at a disadvantage. They also reflect insufficient infrastructure facilities, low productivity of terminal equipment, and poor management practices in cargo handling. Nevertheless, these figures reflect the higher logistics costs in India, which are a drag on our export
competitiveness.
World Freight payments, as a percentage of total import value (cif), stood at 6.21% in 2000 as per UNCTAD. For developed countries, it stood at 5.21% and for developing
countries it stood at 8.83%. For India, freight payments as a percentage of total import value stood at 10.32% (1997) and estimated to be around 11.4% in 2000. As per UNCTAD, such variation could be explained by differences in trade and shipping patterns, particularly in the liner sector, where the growing importance of feeder operations tend to place those countries not covered by mainline services at a disadvantage. They also reflect insufficient infrastructure facilities, low productivity of terminal equipment, and poor management practices in cargo handling. Nevertheless, these figures reflect the higher logistics costs in India, which are a drag on our export
competitiveness.
National Container Traffic Trends*
What is however, evidently clear is that establishment of JNPT and the NSICT has had a catalytic role in the growth of container cargo trade in the country and has set a model for other ports to emulate. The first phase of container traffic growth was however aided by increasing levels of containerization driving the container traffic growth. The level of containerization as a ratio of total general cargo (i.e. container and break bulk cargo) together with cargo categorized as 'Others" (comprising items like over-dimensional cargo, project cargo, etc) of cargo (see table 1.3) went up from 22 per cent in 1990-91 to 35 per cent in 2000-01. The trend towards increasing containerization has brought down the share of the break bulk cargo, from 50 per cent of the total general cargo in 1992 to a level of 32 per cent, in the same time period. However, it must be pointed out that while containerization has been one of the important drivers of container traffic growth over the past ten years, the overall growth of container traffic during this period has also been driven by other macro economic and trade-related developments.
The ten years of rapid container traffic growth has been a period of economic liberalization and globalization of Indian economy, which saw the economy open up itself to world market, both in terms of a policy thrust on value-added exports and liberalization of imports, through reduction in imports tariffs and scrapping of import licensing regime. Consequently, the total sea trade volumes (including the traffic handled by minor and intermediate ports) in tonnage terms have grown by 8 per cent on a compounded average basis in the period 1990-91to 2000-01, from 165.63 to 367.83 million tonnes (including the cargo traffic handled by minor and intermediate ports) The container traffic growth in tonnage terms in this period at 15 per cent is more than double the growth rate of total cargo trade handled by the major ports, at 6 per cent between 1990-91-2000-01. This relatively rapid growth in container cargo traffic volumes can be attributed to changing commodity composition of India's external trade in the last ten years, with a distinct shift towards value-added goods.
The ten years of rapid container traffic growth has been a period of economic liberalization and globalization of Indian economy, which saw the economy open up itself to world market, both in terms of a policy thrust on value-added exports and liberalization of imports, through reduction in imports tariffs and scrapping of import licensing regime. Consequently, the total sea trade volumes (including the traffic handled by minor and intermediate ports) in tonnage terms have grown by 8 per cent on a compounded average basis in the period 1990-91to 2000-01, from 165.63 to 367.83 million tonnes (including the cargo traffic handled by minor and intermediate ports) The container traffic growth in tonnage terms in this period at 15 per cent is more than double the growth rate of total cargo trade handled by the major ports, at 6 per cent between 1990-91-2000-01. This relatively rapid growth in container cargo traffic volumes can be attributed to changing commodity composition of India's external trade in the last ten years, with a distinct shift towards value-added goods.
National Container Traffic Trends
*
Looking at the genesis of global container trade, India is relatively a recent entrant in container cargo business. The port sector in India started getting small number of cargo containers during the decade of seventies and volumes could barely pick up until after the establishment of JNPT in the early nineties. The total container cargo volume handled by Indian ports actually crossed one million TEU benchmark only as late as 1994, thanks to the establishment of JNPT. There has however, been no looking back since then and container traffic volumes have grown by an impressive CAGR of 14 % till 2000-01.
Despite this impressive growth over past ten years, the national container cargo market in India can still be termed as being in a formative phase. This phase has however, seen its culmination in the development of modern international container terminal at Nhava Sheva, with strategic private sector participation from P&O Ports. The Nhava Sheva port, including the JNP and the NSICT container terminals, touched a landmark performance of handling one million TEU in 2000-01 and currently together represent a share of over 48 per cent in the total container traffic handled at all major ports n the country.
The success of JNP as a modern international container terminal has thus, set the pace for development of several other container terminal projects in the country, most notably Mundra and Pipavav ports, both under the private sector initiatives. The push towards what can be termed a "multiple container port" system in the country, is also leading to new competitive market conditions with each new container port terminal seeking to carve its share of the national container traffic. The existing major ports such as Kandla, Cochin and Visakapatanam have also been actively seeking private sector participation for upgrading their existing container handling facilities in anticipation of increasing traffic volumes in future. Whether development of port infrastructure will itself spur the future growth of container traffic into the country or whether incremental container traffic growth will in itself drive the future development of ports, is the familiar "Chicken first or Egg first" story that is doing its rounds in the Indian maritime sector.
Looking at the genesis of global container trade, India is relatively a recent entrant in container cargo business. The port sector in India started getting small number of cargo containers during the decade of seventies and volumes could barely pick up until after the establishment of JNPT in the early nineties. The total container cargo volume handled by Indian ports actually crossed one million TEU benchmark only as late as 1994, thanks to the establishment of JNPT. There has however, been no looking back since then and container traffic volumes have grown by an impressive CAGR of 14 % till 2000-01.
Despite this impressive growth over past ten years, the national container cargo market in India can still be termed as being in a formative phase. This phase has however, seen its culmination in the development of modern international container terminal at Nhava Sheva, with strategic private sector participation from P&O Ports. The Nhava Sheva port, including the JNP and the NSICT container terminals, touched a landmark performance of handling one million TEU in 2000-01 and currently together represent a share of over 48 per cent in the total container traffic handled at all major ports n the country.
The success of JNP as a modern international container terminal has thus, set the pace for development of several other container terminal projects in the country, most notably Mundra and Pipavav ports, both under the private sector initiatives. The push towards what can be termed a "multiple container port" system in the country, is also leading to new competitive market conditions with each new container port terminal seeking to carve its share of the national container traffic. The existing major ports such as Kandla, Cochin and Visakapatanam have also been actively seeking private sector participation for upgrading their existing container handling facilities in anticipation of increasing traffic volumes in future. Whether development of port infrastructure will itself spur the future growth of container traffic into the country or whether incremental container traffic growth will in itself drive the future development of ports, is the familiar "Chicken first or Egg first" story that is doing its rounds in the Indian maritime sector.
Thursday, March 1, 2007
Indian Port scenario
India has a coastline of 5500 km .We have 12 major ports and 141 non-major ports .The major ports handled ~384 million tonnes and Non-major ports 126 million tonnes.The container cargo was 4.24 million TEUs. 90% of total cargo transported by sea .The main commodities handled are POL, Iron , Ore , Coal ,containers and general cargo.
Containerization has steadily progressed in the last decade .The volume of container trade was 3.34 million TEU in 2002 and 3.9 million TEU in 2004.
The current capacity provided by at Indian major ports for container traffic is estimated to be about 4 million TEUs.As the container traffic for the year 2004-2005 is provisionally assessed at 4.2 million TEUs ,the traffic has already exceeded the available capacity .when we add the container traffic handled at Mundra and Pipavav ports in Gujarat the total container traffic handled at Indian ports comes to about 405 million TEUs.This was the reason why most container terminals at Indian major ports experienced congestion in the current financial year .The two additional terminals expected to be created at the JN port as the third and fourth terminal are likely to enhance the total container handling capacity to about 4.5 million TEUs by 2010.
The Chennai container terminal expansion is likely to result in the terminal capacity being enhanced to one million TEU by 2010.Capacity addition in Tuticorin terminal will enhance capacity upto half a million TEUs by 2010.The new Transshipment terminal at Cochin when it becomes partially operational can provide capacity upto half a million TEUs.Creation of container terminals in Kandla and Ennore ports and the capacities to be expanded at Vishakhapattanam ,Mormugoa, New Mangalore and the Paradeep at best can add another half a million TEUs.If all these developmental plans materialized before 2010 the total capacity may come to about 8 million TEUs still running short of the estimated container volume of 8.66 million TEUs by 2010.
Containerization has steadily progressed in the last decade .The volume of container trade was 3.34 million TEU in 2002 and 3.9 million TEU in 2004.
The current capacity provided by at Indian major ports for container traffic is estimated to be about 4 million TEUs.As the container traffic for the year 2004-2005 is provisionally assessed at 4.2 million TEUs ,the traffic has already exceeded the available capacity .when we add the container traffic handled at Mundra and Pipavav ports in Gujarat the total container traffic handled at Indian ports comes to about 405 million TEUs.This was the reason why most container terminals at Indian major ports experienced congestion in the current financial year .The two additional terminals expected to be created at the JN port as the third and fourth terminal are likely to enhance the total container handling capacity to about 4.5 million TEUs by 2010.
The Chennai container terminal expansion is likely to result in the terminal capacity being enhanced to one million TEU by 2010.Capacity addition in Tuticorin terminal will enhance capacity upto half a million TEUs by 2010.The new Transshipment terminal at Cochin when it becomes partially operational can provide capacity upto half a million TEUs.Creation of container terminals in Kandla and Ennore ports and the capacities to be expanded at Vishakhapattanam ,Mormugoa, New Mangalore and the Paradeep at best can add another half a million TEUs.If all these developmental plans materialized before 2010 the total capacity may come to about 8 million TEUs still running short of the estimated container volume of 8.66 million TEUs by 2010.
Role of Ports
There is no need to stress the significance of Ports as they are the important link in the logistic chain. They are the gateways of trade and traffic. They play an important role for the economic growth of a country. In the era of liberalization the role of ports became more important than ever. Historically, kings / Lords created port facilities for sea going vessels and mariners and collected revenues. The need of the day was limited for wind sail or subsequent mechanized sailing vessels.
But the shipping has gone through a metamorphic change after the industrial revolution. The ship size grew larger and larger, 2nd generation 3rd generation etc. Many of the major ports are spending millions of rupees for augmenting the capacity by deepening the channel by dredging. In spite of the huge spending for dredging, how many ports have successfully increased the draught and how many ports are able to berth a Panamax or Suez max vessel? (Forget about the cape size) Many of the ports still resort to lighting / roadstead working before taking to berth.
Container ports and Transshipment terminals
Transshipment terminal is a container port that provides terminal and marine services to handle and facilitate transfer of containers between feeder and mother vessels in the shortest time . .Containers are big boxes which makes transportation easier and cargo safer ,easy to handle .They are of standard sizes ,usually 20’x8’x8.5’feet .The corresponding volume is called Twenty Equivalent Units (TEU).Cargo volume is calculated in TEU
Foremost in the requirements for establishing a Container Transshipment Terminal is its strategic location which should result in cost savings . The proximity to International shipping route is the most important among these .It should also be suitable for a ‘hub&spoke’ arrangement and consolidation of cargo. A Greenfield location implies lower land values .Deeper channels and Harbour basins will lower the dredging requirements .
At present nearly 80% of Indian containers are transshipped at Colombo ,Singapore and Dubai.60-70% of the containers handled at Colombo are of Indian origin /destination .The estimated annual loss to India is around $200 Million (Rs.1000 crores) .Indian ports handled 4.24 MTEU while Colombo alone handled 2.20 MTEU. Container throughput of Asian ports ~80 MTEU (44% of World trade )
http://www.imo.org/
But the shipping has gone through a metamorphic change after the industrial revolution. The ship size grew larger and larger, 2nd generation 3rd generation etc. Many of the major ports are spending millions of rupees for augmenting the capacity by deepening the channel by dredging. In spite of the huge spending for dredging, how many ports have successfully increased the draught and how many ports are able to berth a Panamax or Suez max vessel? (Forget about the cape size) Many of the ports still resort to lighting / roadstead working before taking to berth.
Container ports and Transshipment terminals
Transshipment terminal is a container port that provides terminal and marine services to handle and facilitate transfer of containers between feeder and mother vessels in the shortest time . .Containers are big boxes which makes transportation easier and cargo safer ,easy to handle .They are of standard sizes ,usually 20’x8’x8.5’feet .The corresponding volume is called Twenty Equivalent Units (TEU).Cargo volume is calculated in TEU
Foremost in the requirements for establishing a Container Transshipment Terminal is its strategic location which should result in cost savings . The proximity to International shipping route is the most important among these .It should also be suitable for a ‘hub&spoke’ arrangement and consolidation of cargo. A Greenfield location implies lower land values .Deeper channels and Harbour basins will lower the dredging requirements .
At present nearly 80% of Indian containers are transshipped at Colombo ,Singapore and Dubai.60-70% of the containers handled at Colombo are of Indian origin /destination .The estimated annual loss to India is around $200 Million (Rs.1000 crores) .Indian ports handled 4.24 MTEU while Colombo alone handled 2.20 MTEU. Container throughput of Asian ports ~80 MTEU (44% of World trade )
http://www.imo.org/
Thoughts on future potentials
:
Crude Transshipment
India - like most countries - imports the vast majority of its crude oil requirement. The world over, crude is transported internationally by oil tankers. Crude oil tankers canrange in displacement anywhere from about 50,000 tons to 550,000 tons. The rule is larger, the better. This follows from the simple principle of economies of scale.This concept combined with the temporary closure of the Suez Canal in the 70s, prompted the birth of supertankers. These giants range from 200,000 tons to 550,000 tons in displacement with lengths of upto 1500 feet and drafts of over 90 feet (26 metres). However, as mentioned above, one 300,000-ton supertanker can carry crude much more cheaply than six 50,000-ton tankers or three 100,000-ton tankers.
It is the size of the supertankers that prevents tem being used everywhere. Very few ports can accommodate them, mainly due to their deep drafts. In India, only select ports like Vizag, Mundra and Kakinada can accommodate even the smallest of them - with displacements under 250,000 tons. And that's after a lot of dredging. So what is done? One solution is called a Single Buoy Mooring, which is an oil terminal out in the deep sea. Such an SBM is in the advanced stages of planning, off the Kochi coast. However SBMs are expensive and have relatively low throughput. The more popular solution is Transshipment, similar to that in containers. Supertankers offload their cargo onto smaller ships which then take it into shallow water ports. In India, transshipment is done out at sea or in outer harbours – like at Sandheads, at the mouth of the Hooghly or at Vizag. This is a cumbersome process and is at the mercy of the weather, which is often turbulent in the Bay of Bengal. By far the best option is port based transshipment, where both supertanker and the smaller ships are moored in a port, which also has crude oil storage facilities - this means that the supertanker can leave as soon as its cargo is offloaded to the storage tanks. Vizhinjam has massive potential for this. With its 23m natural draft, it can accommodate almost any supertanker in the world. Ships of upto 400,000 tons can be docked with minimal dredging. The port's proximity to the main Persian Gulf-Malacca oil tanker route is an another important plus-point. Vizhinjam can handle millions of tons of crude in the future. This will help to reduce import prices significantly. Significant revenues can be generated from bunkering and ship repair as well. Another extension could be the development of a major LNG terminal. Petroleum refining, petrochemical and power plants can also be considered.
Dry Dock facility
In addition to the obvious benefits stated above, a slightly more farsighted approach can envision the construction of a major dry dock facility inside the harbour to construct deep draft ships as well as to provide repair facilities to ships passing by on the shipping lanes. The biggest Indian shipyard today has a maximum ship building capacity of less than 150,000 tons. This cannot cater to the need of the domestic shipping industry nor tap into the huge international demand for ships. Most of the major domestic orders actually flow to foreign shipbuilders, usually in Korea. The shipbuilding industry can look forward to a solid future as shipping capacity expands and old ships are replaced. A case in point would be the fact that in the next few years, millions of tons of shipping will have to be built as double-hulled ones, in line with maritime regulations, replace single hulled tankers.http://www.dgshipping.com/
Crude Transshipment
India - like most countries - imports the vast majority of its crude oil requirement. The world over, crude is transported internationally by oil tankers. Crude oil tankers canrange in displacement anywhere from about 50,000 tons to 550,000 tons. The rule is larger, the better. This follows from the simple principle of economies of scale.This concept combined with the temporary closure of the Suez Canal in the 70s, prompted the birth of supertankers. These giants range from 200,000 tons to 550,000 tons in displacement with lengths of upto 1500 feet and drafts of over 90 feet (26 metres). However, as mentioned above, one 300,000-ton supertanker can carry crude much more cheaply than six 50,000-ton tankers or three 100,000-ton tankers.
It is the size of the supertankers that prevents tem being used everywhere. Very few ports can accommodate them, mainly due to their deep drafts. In India, only select ports like Vizag, Mundra and Kakinada can accommodate even the smallest of them - with displacements under 250,000 tons. And that's after a lot of dredging. So what is done? One solution is called a Single Buoy Mooring, which is an oil terminal out in the deep sea. Such an SBM is in the advanced stages of planning, off the Kochi coast. However SBMs are expensive and have relatively low throughput. The more popular solution is Transshipment, similar to that in containers. Supertankers offload their cargo onto smaller ships which then take it into shallow water ports. In India, transshipment is done out at sea or in outer harbours – like at Sandheads, at the mouth of the Hooghly or at Vizag. This is a cumbersome process and is at the mercy of the weather, which is often turbulent in the Bay of Bengal. By far the best option is port based transshipment, where both supertanker and the smaller ships are moored in a port, which also has crude oil storage facilities - this means that the supertanker can leave as soon as its cargo is offloaded to the storage tanks. Vizhinjam has massive potential for this. With its 23m natural draft, it can accommodate almost any supertanker in the world. Ships of upto 400,000 tons can be docked with minimal dredging. The port's proximity to the main Persian Gulf-Malacca oil tanker route is an another important plus-point. Vizhinjam can handle millions of tons of crude in the future. This will help to reduce import prices significantly. Significant revenues can be generated from bunkering and ship repair as well. Another extension could be the development of a major LNG terminal. Petroleum refining, petrochemical and power plants can also be considered.
Dry Dock facility
In addition to the obvious benefits stated above, a slightly more farsighted approach can envision the construction of a major dry dock facility inside the harbour to construct deep draft ships as well as to provide repair facilities to ships passing by on the shipping lanes. The biggest Indian shipyard today has a maximum ship building capacity of less than 150,000 tons. This cannot cater to the need of the domestic shipping industry nor tap into the huge international demand for ships. Most of the major domestic orders actually flow to foreign shipbuilders, usually in Korea. The shipbuilding industry can look forward to a solid future as shipping capacity expands and old ships are replaced. A case in point would be the fact that in the next few years, millions of tons of shipping will have to be built as double-hulled ones, in line with maritime regulations, replace single hulled tankers.http://www.dgshipping.com/
Vizhinjam Port - Studies & http://www.keralaports.gov.in/vizhinjm.htm Reports
The Project has been studied and analyzed from various angles and detailed feasibility reports are ready.
A Techno-Commercial Feasibility study (including, siting, traffic assessment, field survey and investigations-such as marine, land & Geotechnical investigations, port hinterland connectivity, Rapid Social & Environmental Impact Assessment, Risk analysis & legal review, Project Structuring, Tariff analysis, Preliminary Master Planning, cost estimation and Financial Viability Analysis) has been concluded engaging the Consortium of International Consultants including L&T Ramboll and Rogge Marine Consulting of Germany.
A Container Shipment Economics Study has also been carried out engaging Hauer Associates maritime consultants to examine and assess the economics of shipment of containers from/to representative Origin and Destinations (locations in
hinterland) in India and representative Destination & Origin Ports in the world, routing their containerized cargo through Vizhinjam. The study has come out with a bright outlook for cost saving using Vizhinjam as compared to present port
options.
A Techno-Commercial Feasibility study (including, siting, traffic assessment, field survey and investigations-such as marine, land & Geotechnical investigations, port hinterland connectivity, Rapid Social & Environmental Impact Assessment, Risk analysis & legal review, Project Structuring, Tariff analysis, Preliminary Master Planning, cost estimation and Financial Viability Analysis) has been concluded engaging the Consortium of International Consultants including L&T Ramboll and Rogge Marine Consulting of Germany.
A Container Shipment Economics Study has also been carried out engaging Hauer Associates maritime consultants to examine and assess the economics of shipment of containers from/to representative Origin and Destinations (locations in
hinterland) in India and representative Destination & Origin Ports in the world, routing their containerized cargo through Vizhinjam. The study has come out with a bright outlook for cost saving using Vizhinjam as compared to present port
options.
Access corridors
Access from North breakwaters
The coastal stretch identified for the port extends between Vizhinjam and Chowara beach (near Adamalathurai) and (northern breakwater) starts 150m south from the Vizhinjam Fishing Harbour (southern breakwaters). Keeping in view the terrain and activities at the fishing harbour, an elevated corridor is proposed from the Northern Breakwaters to Mukkola Junction and thereafter the alignment runs along the Vizhinjam - Mukkola Road and meets the NH47 Bypass meeting point 100m NE of Mukkola Junction.
Access from South break waters
The combined corridor access (road & rail) proposed from the southern side will take off from the proposed southern breakwater, cross the Karichal River, runs SE of Kanjirakulam, cross NH 47 NW of Neyyattinkara and ends at Neyyattinkara Railway station. Combined corridor is 6.6 Km long up to the NH47 Bypass (south of Kanjirakulam Jn). From the NH47 Bypass, it is a rail link corridor upto Neyyattinkara . Total width of 40-m right of way is considered up to the NH Bypass. The right of way for rail is considered as 16 m for two broad gauge lines. Initially single line rail connectivity may be provided which can be doubled as the traffic increases.
The coastal stretch identified for the port extends between Vizhinjam and Chowara beach (near Adamalathurai) and (northern breakwater) starts 150m south from the Vizhinjam Fishing Harbour (southern breakwaters). Keeping in view the terrain and activities at the fishing harbour, an elevated corridor is proposed from the Northern Breakwaters to Mukkola Junction and thereafter the alignment runs along the Vizhinjam - Mukkola Road and meets the NH47 Bypass meeting point 100m NE of Mukkola Junction.
Access from South break waters
The combined corridor access (road & rail) proposed from the southern side will take off from the proposed southern breakwater, cross the Karichal River, runs SE of Kanjirakulam, cross NH 47 NW of Neyyattinkara and ends at Neyyattinkara Railway station. Combined corridor is 6.6 Km long up to the NH47 Bypass (south of Kanjirakulam Jn). From the NH47 Bypass, it is a rail link corridor upto Neyyattinkara . Total width of 40-m right of way is considered up to the NH Bypass. The right of way for rail is considered as 16 m for two broad gauge lines. Initially single line rail connectivity may be provided which can be doubled as the traffic increases.
The Vizhinjam Special Economic Zone
• To develop the hinterland of the port & take advantage of the proposed transshipment hub a Special Economic Zone (SEZ) near the port should be developed . This will also act as a nucleus for the future industrial expansion .Developing port based industries in the SEZ, would provide dedicated cargo to the proposed port and hence enhance the viability of the port. Actually the need for a SEZ is acute in case of Vizhinjam since there is no significant hinterland cargo .
Target industries include:
• Marine/Agro Food Processing
• High Tech industries such as computer chips, mobile phones, telephones etc
• Mineral Processing
• Manufacturing of White Goods
• Pharmaceuticals
• R&D Establishments
Since sufficient land is not readily available near the area for the proposed port and the region being densely need to be done to find out a suitable location development.
A free trade ware housing zone also is proposed near the Vizhinjam port.
Target industries include:
• Marine/Agro Food Processing
• High Tech industries such as computer chips, mobile phones, telephones etc
• Mineral Processing
• Manufacturing of White Goods
• Pharmaceuticals
• R&D Establishments
Since sufficient land is not readily available near the area for the proposed port and the region being densely need to be done to find out a suitable location development.
A free trade ware housing zone also is proposed near the Vizhinjam port.
The GIM proposals
The Kerala Governemnt organized a Global Investors Meet in January 2003 where the original proposal for an ICTT in Vizhinjam was presented . The original proposal incorporated various components in addition to the Container transshipment terminal itself :
• A total of 30 berths including:
Container Terminals
POL facilities
General Cargo
Cruise Terminal: Kerala being a famous tourism destination , many cruise vessels call at Vizhinjam. A proper berthing facility with passenger terminal will increase the frequency of visits by these cruise ships.
• Full Fledged Bunkering facilities: The proximity of the location to the International Shipping route would make it attractive for mother vessels to refuel in this hub.
• Electronic Data Interchange (EDI) system to facilitate container data, stacking status, container history, container schedule, monthly vessel schedule, container receival & delivery enquiries.
Cold Storage: It is expected that a huge amount of perishable products would be handled through the port.
Container Repair Facility
Training Institute for Port management & Port related activities
Fumigation Service
Fire Fighting Service
Pollution & Oil Spill Control
Supply of Ship Stores
The full benefits of a port can be achieved only if such a comprehensive project can be implemented .However since it will require massive investment GOK has subsequently modified and reduced the idea to that of just a container terminal. We request your Excellency to consider the merits and if possible give assistance for the total project .
• A total of 30 berths including:
Container Terminals
POL facilities
General Cargo
Cruise Terminal: Kerala being a famous tourism destination , many cruise vessels call at Vizhinjam. A proper berthing facility with passenger terminal will increase the frequency of visits by these cruise ships.
• Full Fledged Bunkering facilities: The proximity of the location to the International Shipping route would make it attractive for mother vessels to refuel in this hub.
• Electronic Data Interchange (EDI) system to facilitate container data, stacking status, container history, container schedule, monthly vessel schedule, container receival & delivery enquiries.
Cold Storage: It is expected that a huge amount of perishable products would be handled through the port.
Container Repair Facility
Training Institute for Port management & Port related activities
Fumigation Service
Fire Fighting Service
Pollution & Oil Spill Control
Supply of Ship Stores
The full benefits of a port can be achieved only if such a comprehensive project can be implemented .However since it will require massive investment GOK has subsequently modified and reduced the idea to that of just a container terminal. We request your Excellency to consider the merits and if possible give assistance for the total project .
Ranking by L&T Ramboll Report
Efficiency Parameters Container terminals1 – 10 Scale (10 is best)
Weight Mundra JNPT Kochi Tuticorin Chennai Vizag Vizhinjam
Proximity to
Main route 40 1 3 6 4 2 1 9
Capital Cost 30 9 7 7 6 6 5 5
Dredging 10 8 4 3 4 6 7 9
Mechanization 10 9 9 4 6 7 6 9
Pre-berthing
Delays 10 9 6 7 6 4 6 9
Total 100 57 52 59 50 43 38 78
Rank
-
3
4
2
5
6
7
1
Weight Mundra JNPT Kochi Tuticorin Chennai Vizag Vizhinjam
Proximity to
Main route 40 1 3 6 4 2 1 9
Capital Cost 30 9 7 7 6 6 5 5
Dredging 10 8 4 3 4 6 7 9
Mechanization 10 9 9 4 6 7 6 9
Pre-berthing
Delays 10 9 6 7 6 4 6 9
Total 100 57 52 59 50 43 38 78
Rank
-
3
4
2
5
6
7
1
The L&T Ramboll Report
L&T-Ramboll is an independent engineering consultancy firm, formed by Larsen & Toubro Ltd., Ramboll (Denmark) and IFU (the Danish Industrialization Fund for Developing Countries). The Report of a scientific study on Indian ports by L&T Ramboll states without any doubt that Vizhinjam is the best choice to make a perfect Mother Port. Proximity to the International Shipping Channel, Capital cost, Dredging, Mechanization and Pre-berthing delays were taken as parameters for the study. For almost all every parameters Vizhinjam got the top score of 9 among 10. It was only in terms of Capital Cost that Vizhinjam was not topping the list, the relatively high cost of developing a port from scratch pushed its score down to 5 out of 10.
In the final ranking Vizhinjam stood head and shoulders above the competition with 78 points out of a maximum of 100.Cochin port was a distant second with 59 points. The celebrated Jawaharlal Nehru Port at Mumbai (JNPT) got only the fourth position and the Chennai stood far below at the sixth rank.
Among these parameters, the most important are the proximity to the International Channel, the need of dredging and the Capital cost. Even though Vizhinjam require more Capital expenditure, it can be neglected since Vizhinjam possesses prime geographical advantages such as natural depth, rocky seabed, least tidal variation etc. By present estimates, even with the comparatively higher capital expenditure, Vizhinjam port could make profit in the very first year itself. More over, when considering the great loss to the national exchequer through the transshipment rate given to the foreign ports, this slight variation in the capital comparing with others is of course negligible.
In the final ranking Vizhinjam stood head and shoulders above the competition with 78 points out of a maximum of 100.Cochin port was a distant second with 59 points. The celebrated Jawaharlal Nehru Port at Mumbai (JNPT) got only the fourth position and the Chennai stood far below at the sixth rank.
Among these parameters, the most important are the proximity to the International Channel, the need of dredging and the Capital cost. Even though Vizhinjam require more Capital expenditure, it can be neglected since Vizhinjam possesses prime geographical advantages such as natural depth, rocky seabed, least tidal variation etc. By present estimates, even with the comparatively higher capital expenditure, Vizhinjam port could make profit in the very first year itself. More over, when considering the great loss to the national exchequer through the transshipment rate given to the foreign ports, this slight variation in the capital comparing with others is of course negligible.
VIZHINJAM INTERNATIONAL SEAPORT
The facts herein forth detailed are well known. However for the sake of providing an adequate background , a brief overview of the project , the potentials and rationale are explained .
The project advisor to Government of Kerala is IL&FS IDC . The feasibility studies were carried out by International consultants L&T Ramboll Consulting Engineers Ltd, Rogge Marine Consulting ,Germany and L&T Capital.
Location and Port Connectivity
Vizhinjam is a coastal village in Kerala, 16 kms away to South from the capital city of Thiruvananthapuram (60 kms away to North from Cape Comorian at Latitude 80o 21’ North. Longitude 77o 00’ East).
The World renowned tourism centre, Kovalam, is located 2 KM north to Vizhinjam .
The proposed is site is 16 kms away from the Central Railway Station of Thiruvananthapuram and 11 kms from the nearest railway station, Balaramapuram between Thiruvananthapuram-Kanyakumari rail route. The site is 16 kms from the International Airport at Thiruvananthapuram.
Existing road ,National highway 47 , is 10 km from the port . The NH -47 by-pass is just 3 kilometers away from Vizhinjam Port.
The Inland Waterways Authority of India, has proposed the West Coast Canal from Kottappuram to Kollam This can be extended to Kovalam towards south and to Kasargod towards north ,which may provide and alternate route for inland water connectivity.
The Major Trade Centres in India, such as Cochin (230 kms), Chennai (710 kms), Coimbatore (420 kms), Bangalore (760 kms), Mangalore (610 kms), Tuticorin (220 kms) and Mumbai (1550 kms) can be connected and have a perfectly functioning transporting relation with all these cities.
The sea facing to Vizhinjam coast is a deep part of Arabian Sea. The International Shipping Channel connecting Europe, Persian Gulf and Far East is only 10 nautical miles away from Vizhinjam Port .
It was declared a minor port by the Government of Kerala 1977 and subsequently declared as a customs port
It is a natural all weather deep water port, currently handling around 26,000 tonnes of cargo per annum.(The cargo is mostly cement, clay and perishable items)
Fresh water lake is ~15 km from the site
Electricity substation is ~ 20 km away
The project advisor to Government of Kerala is IL&FS IDC . The feasibility studies were carried out by International consultants L&T Ramboll Consulting Engineers Ltd, Rogge Marine Consulting ,Germany and L&T Capital.
Location and Port Connectivity
Vizhinjam is a coastal village in Kerala, 16 kms away to South from the capital city of Thiruvananthapuram (60 kms away to North from Cape Comorian at Latitude 80o 21’ North. Longitude 77o 00’ East).
The World renowned tourism centre, Kovalam, is located 2 KM north to Vizhinjam .
The proposed is site is 16 kms away from the Central Railway Station of Thiruvananthapuram and 11 kms from the nearest railway station, Balaramapuram between Thiruvananthapuram-Kanyakumari rail route. The site is 16 kms from the International Airport at Thiruvananthapuram.
Existing road ,National highway 47 , is 10 km from the port . The NH -47 by-pass is just 3 kilometers away from Vizhinjam Port.
The Inland Waterways Authority of India, has proposed the West Coast Canal from Kottappuram to Kollam This can be extended to Kovalam towards south and to Kasargod towards north ,which may provide and alternate route for inland water connectivity.
The Major Trade Centres in India, such as Cochin (230 kms), Chennai (710 kms), Coimbatore (420 kms), Bangalore (760 kms), Mangalore (610 kms), Tuticorin (220 kms) and Mumbai (1550 kms) can be connected and have a perfectly functioning transporting relation with all these cities.
The sea facing to Vizhinjam coast is a deep part of Arabian Sea. The International Shipping Channel connecting Europe, Persian Gulf and Far East is only 10 nautical miles away from Vizhinjam Port .
It was declared a minor port by the Government of Kerala 1977 and subsequently declared as a customs port
It is a natural all weather deep water port, currently handling around 26,000 tonnes of cargo per annum.(The cargo is mostly cement, clay and perishable items)
Fresh water lake is ~15 km from the site
Electricity substation is ~ 20 km away
The opportunity called Vizhinjam Port
A hub port must have 3 great advantages
A location that is directly on a major sea lane
Availability of deep water berths and approach channel
A dense network of established services that allows cargoes to move between a wide variety of origins and destinations
Vizhinjam has the first two great advantages .It does not have the third advantage now but as the port becomes functional a service network could evolve itself around this hub port providing effective feeder connectivity .
Recent research studies in Erasmus University in Rotterdam have shown that the shipping costs represent only about 18% of the total system cost with the reminder 82% consisting of port costs, predominantly the terminal handling charges .The ESCAP study commissioned in 2002 has also found that the real potential for future cost savings lies in the land side of the shipping operations – the source of an estimated 75% of the carriers total costs .This is why major ocean carriers themselves would like to get involved in terminal management and operations .
Another four important factors associated with achieving a hub port status are :
High volumes of domestic traffic
Good hinterland connections
Good infrastructure
Competitive port pricing
Vizhinjam being a green field site there is no domestic traffic .But good hinterland connections and infrastructure could be created by the time the port is commissioned for container traffic .Being a minor port and free from expensive institutional and bureaucratic setup ,the new port should be able to offer efficient and competitive services in a multitude of areas comprising the overall “port services”.
Increasing ship size of container vessels : Many analysts believed that once the container ship size reached 10,000 TEUs diseconomies of scale would start operating as two engines would be required to power such huge ships. But with new developments in engine design ,single engine vessels of 10,000 TEU and above can now be built. The Chinese shipping line COSCO has ordered on Hyundai Heavy Industries four super post panamax ships of 10,000 TEU each costing about US $127 million to be delivered in 2008.Recent reports suggest that AP Moller-Maersk Odense shipyard in Denmark has plans to build 8 super-post-panamax ships of 13,000 TEU capacity with new K98 engine. Orders for about 123 ships with capacity of >8000 TEU have been placed world wide as of March 2005. A vessel of >6000 TEU requires water depth above 16 m.
Cost saving due to larger ship size : Drewy Shipping consultants have reported that when compared to a 4000 TEU ship a 10,000 TEU ship results in 37% operating cost savings.While the volume of 10,000 TEU vessel is 2.5 times larger than that of a 4000 TEU ship. A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be of 10,000 TEU and above.It has become increasingly clear now that there are no insurmountable technical barriers to that future increase in size of container ships .Concept designs already exist for ships upto 18,000 TEUs.The limits to grow if any ,will be market determined .This is a great opportunity Vizhinjam can exploit to its maximum potential as the port will be able to offer even upto 30 m draught
A location that is directly on a major sea lane
Availability of deep water berths and approach channel
A dense network of established services that allows cargoes to move between a wide variety of origins and destinations
Vizhinjam has the first two great advantages .It does not have the third advantage now but as the port becomes functional a service network could evolve itself around this hub port providing effective feeder connectivity .
Recent research studies in Erasmus University in Rotterdam have shown that the shipping costs represent only about 18% of the total system cost with the reminder 82% consisting of port costs, predominantly the terminal handling charges .The ESCAP study commissioned in 2002 has also found that the real potential for future cost savings lies in the land side of the shipping operations – the source of an estimated 75% of the carriers total costs .This is why major ocean carriers themselves would like to get involved in terminal management and operations .
Another four important factors associated with achieving a hub port status are :
High volumes of domestic traffic
Good hinterland connections
Good infrastructure
Competitive port pricing
Vizhinjam being a green field site there is no domestic traffic .But good hinterland connections and infrastructure could be created by the time the port is commissioned for container traffic .Being a minor port and free from expensive institutional and bureaucratic setup ,the new port should be able to offer efficient and competitive services in a multitude of areas comprising the overall “port services”.
Increasing ship size of container vessels : Many analysts believed that once the container ship size reached 10,000 TEUs diseconomies of scale would start operating as two engines would be required to power such huge ships. But with new developments in engine design ,single engine vessels of 10,000 TEU and above can now be built. The Chinese shipping line COSCO has ordered on Hyundai Heavy Industries four super post panamax ships of 10,000 TEU each costing about US $127 million to be delivered in 2008.Recent reports suggest that AP Moller-Maersk Odense shipyard in Denmark has plans to build 8 super-post-panamax ships of 13,000 TEU capacity with new K98 engine. Orders for about 123 ships with capacity of >8000 TEU have been placed world wide as of March 2005. A vessel of >6000 TEU requires water depth above 16 m.
Cost saving due to larger ship size : Drewy Shipping consultants have reported that when compared to a 4000 TEU ship a 10,000 TEU ship results in 37% operating cost savings.While the volume of 10,000 TEU vessel is 2.5 times larger than that of a 4000 TEU ship. A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be of 10,000 TEU and above.It has become increasingly clear now that there are no insurmountable technical barriers to that future increase in size of container ships .Concept designs already exist for ships upto 18,000 TEUs.The limits to grow if any ,will be market determined .This is a great opportunity Vizhinjam can exploit to its maximum potential as the port will be able to offer even upto 30 m draught
ADVANTAGES OF VIZHINJAM
First let us go through the tremendous advantages of Vizhinjam , as well the opportunity provided by this project which we hope will arrest the attention of any Indian citizen .
1.The Vizhinjam port has a depth of 20 M even as close as 1 Nautical mile from the coast .
Compare with Mumbai (14m),Chennai (14m), Mangalore (10m), Tuticorin (10m) and Vishakhaptanam (14m).
2. It lies merely 10 Nautical miles from the International shipping line , close to the East-west shipping axis.
Compare with Mumbai (480 miles ) , Mangalore 240 ,Chennai 480 , Vishakhapatanam 600 .
3.It has the lowest tidal variation among all Indian ports - just 30cm ,which means the ships can enter and leave the harbor 24 hours a day 365 days a year. Hence ,there will not be any pre-berthing delays due to these natural causes -No waiting for the tides
4.It is an open sea port with out any rivers or lakes discharging into it , and has minimal littoral drift , which means after the initial dredging to form the port ,no maintenance dredging will be needed .
5. The sea bed is also formed of rocks and hence the foundation depth needed is less.
So overall, the uniqueness in location as well as other features gave No.1 ranking to Vizhinjam in terms of efficiency parameters in the study conducted by L&T Ramboll Engineering Consultants .
6. Vizhinjam is located almost central to the 5500 Km long coastline of the country, hence can be also the bridging platform for the coastal trade. With likely completion of the Sethusamudram project by 2010 , a shipping route from the East coast to the West coast of India without rounding Srilanka will become a reality . This will also facilitate a maritime linkage permitting feeder vessels right from Kolkatta in the East and Kandla in the west to converge at Vizhinjam .Then it can truly become the Gateway of India .
7.The strategic location of Vizhinjam means it could attract transshipment traffic from Bangladesh in the east ,Pakistan in the West and Sri Lanka in the South to emerge as a Mega Transshipment terminal in south Asia substantially reducing the importance of Colombo as a Transshipment Hub.
8.To and fro linkages and feeder services from South Africa ,Mozambique ,Tanzania ,Kenya and Somalia along the entire east coast of Africa across the Indian Ocean can also be established to make Vizhinjam truly a South Asian Hub. In addition ,services to Mauritius and Madagascar islands could also be established in the Indian ocean. India has traditional maritime trade with all the East African countries for centuries. Now , Vizhinjam could provide an ideal platform for revisiting the centuries old maritime trade .
9.There is tremendous local public support to the project .
1.The Vizhinjam port has a depth of 20 M even as close as 1 Nautical mile from the coast .
Compare with Mumbai (14m),Chennai (14m), Mangalore (10m), Tuticorin (10m) and Vishakhaptanam (14m).
2. It lies merely 10 Nautical miles from the International shipping line , close to the East-west shipping axis.
Compare with Mumbai (480 miles ) , Mangalore 240 ,Chennai 480 , Vishakhapatanam 600 .
3.It has the lowest tidal variation among all Indian ports - just 30cm ,which means the ships can enter and leave the harbor 24 hours a day 365 days a year. Hence ,there will not be any pre-berthing delays due to these natural causes -No waiting for the tides
4.It is an open sea port with out any rivers or lakes discharging into it , and has minimal littoral drift , which means after the initial dredging to form the port ,no maintenance dredging will be needed .
5. The sea bed is also formed of rocks and hence the foundation depth needed is less.
So overall, the uniqueness in location as well as other features gave No.1 ranking to Vizhinjam in terms of efficiency parameters in the study conducted by L&T Ramboll Engineering Consultants .
6. Vizhinjam is located almost central to the 5500 Km long coastline of the country, hence can be also the bridging platform for the coastal trade. With likely completion of the Sethusamudram project by 2010 , a shipping route from the East coast to the West coast of India without rounding Srilanka will become a reality . This will also facilitate a maritime linkage permitting feeder vessels right from Kolkatta in the East and Kandla in the west to converge at Vizhinjam .Then it can truly become the Gateway of India .
7.The strategic location of Vizhinjam means it could attract transshipment traffic from Bangladesh in the east ,Pakistan in the West and Sri Lanka in the South to emerge as a Mega Transshipment terminal in south Asia substantially reducing the importance of Colombo as a Transshipment Hub.
8.To and fro linkages and feeder services from South Africa ,Mozambique ,Tanzania ,Kenya and Somalia along the entire east coast of Africa across the Indian Ocean can also be established to make Vizhinjam truly a South Asian Hub. In addition ,services to Mauritius and Madagascar islands could also be established in the Indian ocean. India has traditional maritime trade with all the East African countries for centuries. Now , Vizhinjam could provide an ideal platform for revisiting the centuries old maritime trade .
9.There is tremendous local public support to the project .
Governmental efforts
IN BRIEF :
1.Efforts should be made to make The Government of India recognize the National importance of the proposed Vizhinjam International Transshipment Container Terminal in the context of its geo-strategic location ,geo-physical superiority , and in present context of World trade /Maritime trade and Shipping scenario. A demand should be put to The Government of India to clarify its view regarding the need for a Deep water container Transshipment port for the country in the emerging scenario of Big ships (8000 TEU and more) and in the light of facts and figures which indicate that more than 70% of Indian cargo is being Transshipped in the Foreign ports since the Mother ships cannot anchor in any of the Indian Ports there by incurring a loss of nearly Rs.1000 crore per annum.
2. Though this is envisaged as a stand-alone Transshipment port at present , where revenue generation is expected from the Transshipment charges alone, the full benefits that accrue from a port to the state will not materialize if an industrial zone does not arise around it . The seed for such an industrial development can be achieved through the creation of a Special Economic zone .
3.Rail connectivity to the port as quickly as possible .Its also important for the project to have access to the Golden quadrilateral (the North-South corridor which will reach Kanyakumari ) which can be accomplished by completion of the NH-47 bypass and making the NH-47 a 6 line highway to facilitate the cargo movements .
4. As with any mega project envisaged in a densely populated region this has also made local people apprehensive of displacement. Though as per the present project report there will not be any immediate eviction ,a project with such a magnitude will have to get more land available for future expansion and incorporation of the auxiliary structures etc. The rail and road connectivity also means displacement of people .It should also be mentioned here that >90% of the people in coastal region belong to backward categories and are socially and economically the most disadvantaged strata in this country. Thousands of families are also not having any title deeds for the land they have been living for generations .The coastal regulation zone act has now even made many families difficult to obtain any title deed and hence any compensation should they be uprooted . Hence a comprehensive rehabilitation plan for the people who will be affected should be declared . The people of coastal area are totally depended on fishing for livelihood and the work on Vizhinjam harbour has been lying for several years pending completion. These are the people for whom the progress that the country has gained since independence has not created any real beneficial effects .
An economic assistance package for the project should be sought from the Government of India, for not less than Rs.1000 crores , recognizing that this is not an ordinary project but one which has even the potential to change destiny of the whole country .Such an assistance package will help materialize the Special economic zone , a township , the rail-road connectivity , the land acquisitions and rehabilitation , water ,power and telecommunication infrastructure for the region and also completion of the Vizhinjam Harbour project .
1.Efforts should be made to make The Government of India recognize the National importance of the proposed Vizhinjam International Transshipment Container Terminal in the context of its geo-strategic location ,geo-physical superiority , and in present context of World trade /Maritime trade and Shipping scenario. A demand should be put to The Government of India to clarify its view regarding the need for a Deep water container Transshipment port for the country in the emerging scenario of Big ships (8000 TEU and more) and in the light of facts and figures which indicate that more than 70% of Indian cargo is being Transshipped in the Foreign ports since the Mother ships cannot anchor in any of the Indian Ports there by incurring a loss of nearly Rs.1000 crore per annum.
2. Though this is envisaged as a stand-alone Transshipment port at present , where revenue generation is expected from the Transshipment charges alone, the full benefits that accrue from a port to the state will not materialize if an industrial zone does not arise around it . The seed for such an industrial development can be achieved through the creation of a Special Economic zone .
3.Rail connectivity to the port as quickly as possible .Its also important for the project to have access to the Golden quadrilateral (the North-South corridor which will reach Kanyakumari ) which can be accomplished by completion of the NH-47 bypass and making the NH-47 a 6 line highway to facilitate the cargo movements .
4. As with any mega project envisaged in a densely populated region this has also made local people apprehensive of displacement. Though as per the present project report there will not be any immediate eviction ,a project with such a magnitude will have to get more land available for future expansion and incorporation of the auxiliary structures etc. The rail and road connectivity also means displacement of people .It should also be mentioned here that >90% of the people in coastal region belong to backward categories and are socially and economically the most disadvantaged strata in this country. Thousands of families are also not having any title deeds for the land they have been living for generations .The coastal regulation zone act has now even made many families difficult to obtain any title deed and hence any compensation should they be uprooted . Hence a comprehensive rehabilitation plan for the people who will be affected should be declared . The people of coastal area are totally depended on fishing for livelihood and the work on Vizhinjam harbour has been lying for several years pending completion. These are the people for whom the progress that the country has gained since independence has not created any real beneficial effects .
An economic assistance package for the project should be sought from the Government of India, for not less than Rs.1000 crores , recognizing that this is not an ordinary project but one which has even the potential to change destiny of the whole country .Such an assistance package will help materialize the Special economic zone , a township , the rail-road connectivity , the land acquisitions and rehabilitation , water ,power and telecommunication infrastructure for the region and also completion of the Vizhinjam Harbour project .
THE VIZHINJAM PROJECT
EXECUTIVE SUMMARY
Ports hold the key to World trade and form the Gateways of Nations . 90% of World trade is sea borne and only countries with ability to trade commodities at the most competitive rates will flourish . China being the prime example . Chinas ambition to rule the World market has been spear headed by their ports and associated free trade zones – Shanghai , Shenzhen ,Ningbo , Pudong ,etc .They have also Hongkong under their control . They aim to corner 10% of World trade by 2010. With this aim they have built World largest Transhipment Hub port in Bahamas .They are building Deep water ports in Pakistan (Gwader) and Bangladesh (Chittagong) .
The Honorable Prime Minister has recently announced a quantum jump in the declared targets to be achieved by India by 2010 . ie, 5% of World trade (equivalent to ~ US $500 Billion ) .To achieve this we need to increase five fold our current share in world trade. ( previously declared targets 1.5% equivalent to US $150 Billion )
Now Container ports and Ships have become the prime armamentarium in the trade wars of this Millennium .The speed , safety and efficiency offered by the containers have made them the de-facto carriers of world cargo.
The emerging trends in development of container ships indicate a consistent growth towards big ships – the recent advances in technology has made 10000 TEU ships with single engine a reality . They will rule the Great trade highways of ocean in short future . “A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be in service globally, out of which approximately 130 will be of 10,000 TEU and above”. Plans are afoot to build 13000 TEU ships .
While first six among the top ten container ports in the World are from the Asian region, India does not have a port even in Top 30! The eight Chinese ports among the top 30 container ports together handled about 70 million TEUs — that is, about 35 per cent of the 196 million TEUs handled by all the top 30 container ports. According to the Korea Maritime Institute, the Chinese container traffic will increase to 130 million TEUs by 2011 and, in all probability, Shanghai will emerge the world's largest container port by that year.
“India's container traffic which was 3.90 million TEUs in 2003-2004, is likely to rise to 4.5 million TEUs in 2004-2005 . India will have a growth rate of 16 per cent and India's box traffic would reach 10 million TEUs by 2010 with the western region accounting for 70 per cent of the traffic”
Today 80% of Indian containers are Transshipped at Colombo, Singapore and Dubai. 60-70% of containers handled at Colombo are Indian origin/destination. The estimated annual loss to India is around US $ 200 million ( Rs.1000 crores).
Can India meet the declared target of $500 Billion trade by 2010 without a Hub port – ie, without having any Mother ship calling in an Indian Port ? Can India match the challenges posed by the rising Chinese supremacy in the World market . Is the Government turning blind eye to a genuine problem ?
This brief write up will show that Vizhinjam Port is a true gift of nature and if the Government does not take active steps to help make it a reality the future generations will suffer from the loss of a golden opportunity in the destiny of this country . The role of Transshipment Hub Ports and free trade zones in revitalizing economy cannot be overemphasized .
The Government of India should recognize the national importance of this project and allocate a Special Economic Zone at Thiruvananthapuram to harness the export and industrial opportunities accorded by the port . A special economic assistance package of at least Rs.1000 crore should be made available by the GOI for the infrastructure development around the port ,so that the project can shape up as speedily as possible . The connectivity to the National Rail network and Golden quadrilateral should be taken up in earnest .
The Government should also take necessary steps to ease the burden of the local people when such mega projects shape up in densely populated regions . The underprivileged people forms the bulk of coastal population and their interests should be protected with utmost concern .So the Vizhinjam Harbour should also be completed as soon as possible.
Ports hold the key to World trade and form the Gateways of Nations . 90% of World trade is sea borne and only countries with ability to trade commodities at the most competitive rates will flourish . China being the prime example . Chinas ambition to rule the World market has been spear headed by their ports and associated free trade zones – Shanghai , Shenzhen ,Ningbo , Pudong ,etc .They have also Hongkong under their control . They aim to corner 10% of World trade by 2010. With this aim they have built World largest Transhipment Hub port in Bahamas .They are building Deep water ports in Pakistan (Gwader) and Bangladesh (Chittagong) .
The Honorable Prime Minister has recently announced a quantum jump in the declared targets to be achieved by India by 2010 . ie, 5% of World trade (equivalent to ~ US $500 Billion ) .To achieve this we need to increase five fold our current share in world trade. ( previously declared targets 1.5% equivalent to US $150 Billion )
Now Container ports and Ships have become the prime armamentarium in the trade wars of this Millennium .The speed , safety and efficiency offered by the containers have made them the de-facto carriers of world cargo.
The emerging trends in development of container ships indicate a consistent growth towards big ships – the recent advances in technology has made 10000 TEU ships with single engine a reality . They will rule the Great trade highways of ocean in short future . “A recent ESCAP study has revealed that by 2011 a total of 490 very large container vessels will be in service globally, out of which approximately 130 will be of 10,000 TEU and above”. Plans are afoot to build 13000 TEU ships .
While first six among the top ten container ports in the World are from the Asian region, India does not have a port even in Top 30! The eight Chinese ports among the top 30 container ports together handled about 70 million TEUs — that is, about 35 per cent of the 196 million TEUs handled by all the top 30 container ports. According to the Korea Maritime Institute, the Chinese container traffic will increase to 130 million TEUs by 2011 and, in all probability, Shanghai will emerge the world's largest container port by that year.
“India's container traffic which was 3.90 million TEUs in 2003-2004, is likely to rise to 4.5 million TEUs in 2004-2005 . India will have a growth rate of 16 per cent and India's box traffic would reach 10 million TEUs by 2010 with the western region accounting for 70 per cent of the traffic”
Today 80% of Indian containers are Transshipped at Colombo, Singapore and Dubai. 60-70% of containers handled at Colombo are Indian origin/destination. The estimated annual loss to India is around US $ 200 million ( Rs.1000 crores).
Can India meet the declared target of $500 Billion trade by 2010 without a Hub port – ie, without having any Mother ship calling in an Indian Port ? Can India match the challenges posed by the rising Chinese supremacy in the World market . Is the Government turning blind eye to a genuine problem ?
This brief write up will show that Vizhinjam Port is a true gift of nature and if the Government does not take active steps to help make it a reality the future generations will suffer from the loss of a golden opportunity in the destiny of this country . The role of Transshipment Hub Ports and free trade zones in revitalizing economy cannot be overemphasized .
The Government of India should recognize the national importance of this project and allocate a Special Economic Zone at Thiruvananthapuram to harness the export and industrial opportunities accorded by the port . A special economic assistance package of at least Rs.1000 crore should be made available by the GOI for the infrastructure development around the port ,so that the project can shape up as speedily as possible . The connectivity to the National Rail network and Golden quadrilateral should be taken up in earnest .
The Government should also take necessary steps to ease the burden of the local people when such mega projects shape up in densely populated regions . The underprivileged people forms the bulk of coastal population and their interests should be protected with utmost concern .So the Vizhinjam Harbour should also be completed as soon as possible.
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