Ports and shipping in India

Navi Mumbai: Nerul Jetty likely to be completed by end of 2021​

The work on Rs 111 crores jetty in Nerul for water transport from Mandwa to Nerul and Nerul to Gateway of India is at the last stage and it is likely to be completed by end of the year. The project was delayed due to a delay in getting clearance from the Forest department and later imposition of the lockdown in 2020.

The water transport is believed to cut travel time by 30 minutes from travelling to Mumbai from Navi Mumbai. At present, by any mode, it takes around 90 minutes to reach south Mumbai from Navi Mumbai.

Last year, Thane MP Rajan Vichare and Dr. Sanjay Mukherjee, managing director of City and Industrial Development inspected the ongoing work and assured its completion in 2021.

“The work of Rs 111 crore jetty was started in 2018 and it was supposed to be completed in 24 months. However, it was delayed due to multiple reasons from the delay in getting Forest department clearance to sudden lockdown in 2020.

According to CIDCO which is developing the project, the completion of the project is at the last stage and it is likely to be completed by Diwali or the end of the year if all goes well.

After completion of the jetty work, it will be handed over to the Mumbai Maritime Board (MMB) for operation. However, the maintenance of the jetty will remain with the CIDCO.

The work on three water terminals, one each at Ferry Wharf, Nerul and Mandwa are already going on. MMB, the nodal agency for the project, has roped in the CIDCO and the Mumbai Port Trust (MbPT). MMB will fund the construction at Mandwa, Cidco at Nerul and MbPT at Ferry Wharf. All these will be connected to each other.
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Navi Mumbai: Nerul Jetty likely to be completed by end of 2021

Navi Mumbai: Nerul Jetty likely to be completed by end of 2021
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Govt starts work on box transshipment terminal in Great Nicobar Island

By P Manoj
Mumbai | Updated on September 05, 2021
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Photo: The Great Nicobar Island

WAPCOS has prepared a techno economic feasibility report

The Centre has taken the first steps to build a container transshipment terminal at Great Nicobar Island as it looks to set up more such hubs within the country to send and receive container cargo.

The Ministry of Ports, Shipping and Waterways has asked the Andaman and Nicobar Administration, which is helming the project, to engage AECOM (the consultant engaged by NITI Aayog for developing the master plan of the Great Nicobar Island) as the Project Management Consultant for constructing a container transshipment terminal at Campbell Bay in Great Nicobar Island, according to government sources.

A techno economic feasibility report for the project has been prepared by WAPCOS.

Of the more than 16.1 million twenty-foot equivalent units (TEUs) handled at India’s ports, nearly 75 per cent (12 million TEUs) was gateway cargo, while about 25 per cent was transshipped en-route to final destinations.

Currently, nearly 75 per cent of India’s transshipped containers are handled at ports outside India. Colombo, Singapore and Port Klang handle more than 85 per cent of this with Colombo alone handling about 2.5 million TEUs.

India needs to set up transshipment port alternatives that can match competing international ports with regard to location, draft and overall cost economics, according to the Maritime India Vision 2030, a ten-year blueprint for the maritime sector unveiled by Prime Minister Modi in March this year.

Loss of revenue

Indian ports lose up to $200-220 million of potential revenue each year on transshipment handling of cargo originating/destined for India. The loss is even higher when considering the opportunity to handle cargo emerging from other countries in the region, the vision document said.

“Given the extra port handling charges incurred at the transshipment hubs, transshipment of cargo results in logistic cost inefficiencies for Indian industry. The additional port handling cost is to the tune of $80-100 per TEU, which could be saved if the container was imported/exported as direct gateway cargo instead of being transshipped,” the document pointed out.

With 75 per cent of the country’s transshipment cargo being handled at international ports, it makes Indian industries vulnerable to increase in costs, potential inefficiencies, and congestion issues and creates long-term risks for India’s trade competitiveness, it said.

A strong economic case, therefore, exists for enabling a transshipment hub in Southern India that can attract Indian and regional transshipment traffic from the current hubs, save significant revenue loss, reduce logistics inefficiencies for Indian trade, reduce risks to the country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade.

Vizhinjam, Kanyakumari region and Campbell Bay are promising locations given their position at about 6-10 nautical miles (NM) deviation (0.5-1 hours) from the Suez route with potential for deep draft of 20 metres, factors that influence selection of transshipment locations.

Accordingly, the vision document suggested prioritising development of Vizhinjam in the short-term by providing required support from the Central government.

It also suggested setting up additional transshipment hubs in the Kanyakumari region and Campbell Bay in a phased manner and to enhance transshipment volumes at Vallarpadam.

Govt starts work on box transshipment terminal in Great Nicobar Island
 

For the first time in the history of major ports, Ship-to-Ship operation of LPG undertaken at Syama Prasad Mookerjee Port​

The restricted draft in the river channel necessitates offloading of part cargo at neighbouring ports before calling at Haldia Dock Complex (HDC) or Kolkata Dock System (KDS) of Sysma Prasad Mookerjee Port Kolkata (erstwhile Kolkata Port Trust). Consequent to two port discharge, vessels incur dead freight and additional steaming time. To obviate the inherent channel constraints, SMP Kolkata has endeavoured to open up opportunity for importers to bring in Cape Size or Baby Cape vessels at the deep drafted anchorages located at Sagar, Sandheads and X Point and enable handling of fully laden dry bulk vessels through deployment of Floating Cranes or ship cranes. Over the years good number of dry bulk vessels have been handled at the lighterage points.
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Due to the strategically advantageous location, HDC has witnessed incremental demand from trade in terms of catering to LPG, imported POL products and other liquid cargo.

The gradual increase in the volumes of LPG imports at HDC is placed below:

Quantity of LPG imports at HDC in MT :
FY 2016-17 : 20,22,520
FY 2017-18 : 24,90,374
FY 2018-19: 34,61,547
FY 2019-20: 40,16,894
FY 2020-21: 48,48,193

Several discussions with the senior management of the Oil Manufacturing Companies like BPCL, IOCL, HPCL and other leading private importers of LPG and other liquid products pointed to the intrinsic benefits that can be harnessed through extending the facility of Ship–to-Ship Transfer (STS) of LPG/ Liquid Cargo at the Deep drafted anchorage points of SMP, Kolkata. The Single Port Handling would not only enable to overcome draft restriction at Haldia thereby negating dead freight but also help in mobilization of more cargo thereby reducing unit costs.

HDC, SMP, Kolkata took a pioneering initiative to explore STS Operations of LPG within its limits to handle fully laden vessels and requested Customs Authorities to allow such operations. Matter was pursued with Customs and they kindly considered the request and issued necessary permission on 26.04.2021 allowing such STS Operations. Further, to promote lighterage operations in general, SMP Kolkata extended substantial discount in terms of vessel and cargo related charges and an additional concession towards Tug Hire Charges was extended by the port specifically for STS Operation at Sandheads.

As a result of this pioneering initiative, the first ever STS Operations of LPG in Indian Coast was undertaken by BPCL on 15th October, 2021. BPCL engaged service provider M/s Fendercare Marine to render the services at the offshore STS location.

M/s. Fendercare Marine Omega, a renowned company in STS operation of Liquid Cargo is providing the logistics support. Tug for berthing the vessel at STS site and towing/placing of large size Yokohama fenders is being provided by SMP Kolkata.

The Mother vessel MT YUSHAN with a parcel load of 44551 MT cargo carried out STS operation with Daughter Vessel MT HAMPSHIRE at Sandheads. The cargo operation commenced at 1248 hrs. on 15.10.20121 and completed at 0606 hrs. on 16.10.2021. Thus, within a short span of around 17 hrs., a quantity of 23051 MT of cargo was transferred to the daughter vessel.

The STS Operation for BPCL was earlier done at Male and by doing STS Operation at HDC, BPCL will save valuable foreign exchange. This Operation at HDC reduces the time taken for a daughter vessel by 7-9 days from BPCL’s other location for STS operations which consequently entailing savings of around US $ 3,50,000 per voyage on account of BPCL.

The instant STS operations is expected to open new business potential not only for the country’s oldest riverine Major Port but also benefit the trade and country as a whole in terms of saving substantial foreign exchange. Thus the STS operation at SMP, Kolkata is likely to emerge as a game changer in the overall economics in handling of imported LPG in the Indian Coast.
pib.gov.in

For the first time in the history of major ports, Ship-to-Ship operation of LPG undertaken at Syama Prasad Mookerjee Port

The restricted draft in the river channel necessitates offloading of part cargo at neighbouring port
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Shri Sonowal announces New Model Concession Agreement - 2021 for Public-Private-Partnership (PPP) Projects at Major Ports

80 on-going projects with investment of over Rs 56,000 crore to benefit

31 projects of over Rs 14,600 crore to be awarded on PPP till FY25 ​

Union Minister for Ports, Shipping & Waterways Shri Sarbananda Sonowal today announced the revised Model Concession Agreement (MCA) - 2021 for PPP projects at Major Ports. In a statement he said, the new MCA will be applicable to all the future PPP projects at major ports, as well as projects which are already approved by the Government but are still under bidding stage. He informed that at the moment, there are more than 80 PPP/landlord projects in the sector with investment of over Rs 56,000 crore at various stages. Of these, 53 projects of Rs 40,000 crore are under operation, whereas 27 projects of more than Rs 16,000 crore are at implementation stage.


The Minister informed that with many changes drawn from best practices from across the sectors and extensive stakeholder consultation, the Model Concession Agreement – 2021 (MCA), will bring more confidence of developers, investors and lenders and other stakeholders in the Ports sector and catalyze the investment in the sector. Looking ahead, Ministry of Ports, Shipping and Waterways has clearly defined pipeline of 31 projects of more than Rs 14,600 crore to be awarded on PPP till FY25, and it expects that the new MCA - 2021 will generate enthusiastic response from the stakeholders.


Talking about the key changes made in the Model Concession Agreement (MCA) – 2021, Shri Sonowal informed that provision of Change in Cargo due to Change in Law or Unforeseen Events has been introduction for the first time. He said, there have been cases in the past wherein due to external and unforeseen factors, traffic for a particular commodity has dropped during the concession period thereby impacting the overall viability of the terminal. The concessionaire did not have flexibility to handle a different cargo and the asset constructed was not being utilized optimally. The Minister said, this provision will give the flexibility to undertake change in cargo in such situation and reduces risk for the concessionaire.


Shri Sonowal added that under the new MCA, provision has been made for providing flexibility to the concessionaires to fix their tariff based on market conditions which will allow level playing field for the private terminals at Major Ports to compete with private ports for cargo. Further, to reduce risk to the lenders and make the project more bankable, provision of compensation for Concessionaire’s event of default before Commercial Operations Date (COD) has been added. Another provision which lays out process for extension of concession period on the basis of performance and mutual agreement has been introduced. Shri Sonowal said, overall, more clarity has been provided in terms of responsibilities of both public as well as private party while balancing the risks.


The first Public Private Partnership (PPP) Project in the Port sector was launched in 1997 when a terminal at Jawahar Lal Nehru Port Trust (JNPT) was awarded to a private party. There has been huge progress in the PPP environment in the Port sector of the country ever since. The Model Concession Agreement (MCA) governing the PPP Projects in the Ports Sector was first introduced in the year 2008 and was subsequently revised in 2018 based on the stakeholder feedback.
www.pib.gov.in

Shri Sonowal announces New Model Concession Agreement - 2021 for Public-Private-Partnership (PPP) Projects at Major Ports

Union Minister for Ports, Shipping & Waterways Shri Sarbananda Sonowal today announced the revised M
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