indian port sector by hans ole madsen – ceo, south asia for a.p. moller-maersk
DESCRIPTION
Indian Port Sector By Hans Ole Madsen – CEO, South Asia for A.P. Moller-Maersk. Port Pipavav. 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. Main Business Activities. - PowerPoint PPT PresentationTRANSCRIPT
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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
Container Shipping related activities
> Maersk Line and Safmarine are market leaders in global container services
> Network of more than 550 container vessels and 1.4 million TEU
> APM Terminals operates more than 45 terminals
> Multimodal Supply Chain Management services through Maersk Logistics
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Main Business Activities
Other Shipping related activities
> Transport of crude oil, refined products and gas by Maersk Tankers
> Maersk Supply provides supply vessels for anchor-handling, cable laying etc
> Maersk Contractors is involved in mobile production units and drilling rigs
> Over 260 vessels and rigs operated
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Main Business Activities
Energy
> Production and exploration of oil and gas
> Production Activities in Denmark, United Kingdom, Qatar, Algeria and Kazakhstan
> Exploration activities in the North Sea (Denmark, United Kingdom, Norway and Germany), Algeria, Morocco, Angola, Oman, Brazil, Surinam, Colombia and Turkmenistan
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Main Business Activities
Retail and other industry
> Supermarkets and hypermarkets in Europe and UK
> Brands include the Føtex stores, the Netto stores and the Bilka hypermarkets
> Shipyards in Denmark, Germany and the Baltic countries
> Industrial production of plastic products
> Star Air engaged in contract parcel flying in Europe
> 50% ownership of Martinair Holland engaged in air freights and charter service 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 Sheva in 1994
> Pioneered the back-office (BPO) concept in the maritime industry
> Established the 1st Maritime Training Academy by 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 Nhava Sheva harbour within JNPT
> Converted existing bulk terminal on BOT 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 12.5 metres
> Located in Gujarat on the west coast of India to handle containers, bulk and liquid cargo
> Container volumes handled to exceed 250,000 in 2006
> Projected Container terminal capacity of 1.3 mio TEU
> Bulk cargo in 2006 apx 2.5 mio tons
> Total quay length of 725 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 Port development projects in India
> Major international container port operators have a presence in India and are eyeing new projects
Demand Projection
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2000
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2006 2007 2008 2009 2010 2011 2012
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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 returns and payback period
> Support infrastructure to be developed by the Government to ensure success of the PPP model
> Government to undertake infrastructural development where payback is commercially unviable but essential for overall development such as capital channel dredging, breakwater, rail/road linkages etc
> PPP to be used as a tool to speed up infrastructure development and not as a replacement of Government spending