indian port sector-1
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Indian Port Sector
By Hans Ole Madsen CEO, South Asia for A.P. Moller-Maersk
Port Pipavav
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About A.P. Moller-Maersk
> Established in Svendborg, Denmark in 1904
> More than 110,000 employees in over 125 countries
> Global group turnover of USD 40 Billion
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Main Business Activities
Other Shipping related activities
> Transport of crude oil, refined productsand gas by Maersk Tankers
> Maersk Supply provides supply vessels
for anchor-handling, cable laying etc
> Maersk Contractors is involved inmobile production units and drillingrigs
> Over 260 vessels and rigs operated
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Main Business Activities
Energy
> Production and exploration of oiland gas
> Production Activities in Denmark,United Kingdom, Qatar, Algeria andKazakhstan
> Exploration activities in the NorthSea (Denmark, United Kingdom,Norway and Germany), Algeria,
Morocco, Angola, Oman, Brazil,Surinam, Colombia andTurkmenistan
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Main Business Activities
Retail and other industry
> Supermarkets and hypermarkets inEurope and UK
> Brands include the Ftex stores, theNetto stores and the Bilka hypermarkets
> Shipyards in Denmark, Germany and theBaltic countries
> Industrial production of plastic products
> Star Air engaged in contract parcel flyingin Europe
> 50% ownership of Martinair Hollandengaged in air freights and charterservice for passenger
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Our Presence in India
> Maersk Line operating in India since 1952
> The leading container shipping line in India
> Nationwide presence through 33 offices
> Employs over 5,500 people in India
> Established the 1st Private CFS in Nhava Shevain 1994
> Pioneered the back-office (BPO) concept in themaritime industry
> Established the 1st Maritime Training Academyby a foreign shipping line in India
> Among the 1st participants in the privatisation
of rail freight in India
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> The 3rd Container Terminal at NhavaSheva harbour within JNPT
> Converted existing bulk terminal onBOT for 30 years
> Joint Venture with CONCOR
> Handling capacity to be 1.4 mio TEU
> Total quay length 712 metres
> Draft limited to channel draft of 12.5metres
> Located in Gujarat on the west coast ofIndia to handle containers, bulk andliquid cargo
> Container volumes handled to exceed250,000 in 2006
> Projected Container terminal capacityof 1.3 mio TEU
> Bulk cargo in 2006 apx 2.5 mio tons
> Total quay length of725 metres
APM Terminals in India
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Current Scenario
> Growth projections indicate continued demand for capacity
> Encouraging response from both local & international companies for Portdevelopment projects in India
> Major international container port operators have a presence in India and are eyeingnew projects
Demand Projection
0
2000
4000
6000
8000
10000
12000
14000
2006 2007 2008 2009 2010 2011 2012
Year
Teus
in
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Regulatory Environment
> Model Concession Agreement
> Major v/s Minor Ports
> Tariff Regulation
> Major Port Trusts Act
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Financing
> Need for long term financing/debt options
> Current interest rates high thus increasing the overall cost and risk
> Viability gap funding scope to be broadened
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Public Private Partnership in Ports
> Private investment attracted towards port projects with reasonable returnsand payback period
> Support infrastructure to be developed by the Government to ensure successof the PPP model
> Government to undertake infrastructural development where payback iscommercially unviable but essential for overall development such as capitalchannel dredging, breakwater, rail/road linkages etc
> PPP to be used as a tool to speed up infrastructure development and not as areplacement of Government spending
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Productivity and Efficiency
> Berth productivity has improved at some Indian ports from 20 moves perhour in the 90s to 70-80 moves per hour
> The benchmark is now higher
> Emma Maersk, the worlds largest container vessel, had berth productivity of540 moves per hour at Yantian