Open Private Partnership in Ports By A.K. Mohapatra Secretary Department of Shipping
Slide 2Port division in India Major Ports – (under Government of India) 12 Major Ports 259 billets represent around 75% of aggregate activity Cargo took care of – 423 MT (2005-06) Non-Major Ports (under State Governments) 187 non real ports (61 payload taking care of); 97 compartments represent around 25% of aggregate movement Total Cargo took care of 568 MT (2005-06)
Slide 3Capacity Required Present Capacity - 600 Million Tons (approx.) Total Capacity required by 2011-12 would be - 1100 MT Assuming 7.7% CAGR Total Capacity required by 2016-17 would be - 2000 MT Assuming 8% CAGR upto 11 th arrange and 12% for 12 th arrange
Slide 4Why PPP ? I nduct Additional Resources Bring in private segment proficiency Client-Port Symbiosis for Port advancement and enhancement Strong Global systems administration New business openings
Slide 5PPP Framework Private segment support and Joint Ventures allowed under Major Port Trusts Act 1963 Comprehensive rules 1996 Joint Venture Guidelines 1998 Model Bidding Documents 2000
Slide 6Scope AREAS FOR PRIVATE SECTOR PARTICIPATION Construction and Operation of : Container Terminals Bulk, Break-Bulk, Multipurpose and particular payload billets Warehousing, Container Freight Stations, Storage Facilities and Tank Farms, Dry Docking Facilities Ship Repair Facilities Leasing of hardware for port taking care of and gliding creates from private division Auxiliary Port Services (like Pilotage, Tugging and Mooring) Captive offices for port based enterprises
Slide 7Principles 100% FDI Open Competitive offering Lease Period of BOT upto 30 years No Government ensures on ROI Discourage private restraining infrastructure Independent Tariff Regulatory Authority Protection of work premium
Slide 8Procedure For Terminals and Berths Request for Qualification (RFQ) Request for Proposal (RFP) Draft Concession Agreement finished in pre-offered meeting Approval of PPPAC Selection Criterion - Highest Revenue Share to Port
Slide 9Present Status of Private Investment Already Operational 14 ventures with speculation of Rs.3,516 crores Container terminals Liquid load compartments General load billets Container Freight Station(CFS) Under Implementation 4 ventures with venture of Rs. 2,898 crores Container terminals Single Point Mooring (SPM)
Slide 10Berth Construction Plan 2006-07 15 Berths to be granted amid 2006-07 Total Capacity Addition – 94 MT Total Investment – Rs.6497 crores 2007-08 13 Berths to be granted amid 2007-08 Total Capacity Addition - 107.65 MT Total Investment - Rs. 7664 crores
Slide 11Berth Construction Plan – 2006-07 Construction of two seaward compartment billets - Mumbai LNG Re-Gassification Terminal - Cochin International Bunkering Terminal - Cochin Construction of 4 load compartments - Kandla Creation of Berthing & Allied offices off Tekra - Kandla Construction of journey cum-holder billet - Mormugao Construction of Deep Draft billet for taking care of iron-metal and coal - Paradip Construction of Bulk Coal Terminal - New Mangalore Development of existing 8 th billet as Container Terminal - Tuticorin Marine Liquid Terminal - Ennore Coal Terminal - Ennore Iron-Ore-Terminal - Ennore Second Container Terminal - Chennai Construction of WQ-8 Berth - Vizag Construction of EQ-10 Jetty at Inner Harbor - Vizag
Slide 12Berth Construction Plan – 2007-08 Construction of 2 nd compartment for taking care of chemicals/particular level of POL – Mumbai Extension of compartment billet by 330 m - JNPT International Container Transhipment Terminal – Cochin International Cruise Terminal – Cochin Development of one billet in East Docks – Vizag Construction of billets at Vasco Bay - Mormugao Construction of compartment for clean freight - Paradip POL Berth in Oil Dock Arm - New Mangalore Construction of six compartments - Tuticorin Construction of three Shallow Draft Berths – Tuticorin Construction of Coal Berth - Tuticorin LNG Terminal - Ennore Container Terminal - Ennore
Slide 13Dredging Plan 2006-07 7 Capital Dredging Projects to be granted amid 2006-07 Paradip, JNPT, Mumbai, Tuticorin, Ennore & Vizag Total Investment - Rs. 2040 crores 2007-08 6 Capital Dredging Projects to be granted amid 2006-07 Kolkata, Mumbai, Chennai, Cochin, Vizag & Mormugao Total Investment - Rs. 1105 crores Target draft - 14 meters (in stages)
Slide 14Port Connectivity Projects - under usage Road 9 availability ventures (finish in 1to3 years) 286.12 kms Total cost of Rs.1661 crores Rail 8 network projects(completion inside 2 years) 961.56 kms Total cost of Rs.1780.68 crores Dedicated High Axle Load Freight Corridor on Western and Eastern courses at an expected cost of Rs.22,000 crore
Slide 15ISSUES Faster basic leadership Criterion for determination Revenue share/MGT Mergers and Acquisitions Tariff Regulation Post choice change in extent of business Captive offices Dispute Resolution Mechanism
Slide 16Thank You
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