SECTOR PROFILE

Ports of Gujarat
1
Gujarat: Economic Snapshot
Gujarat An Enduring Strong Economy

Gross State Domestic Product : USD 45.3 Billion Industrial Growth Rate : 12.5% (2002 – 2007)
Exports : 19.2% of India Inflation : 9.3%
Per Capita Income : USD 722 Urbanisation : 37.36%

Composition of GSDP as per Economic Activity Well Balanced Growth across sectors

18.22% Tertiary 15.99%

44%
Secondary 17.95%
P r im a ry S e c t o r

S e c o n d a ry S e c t o r
37.78% Primary 11.36%
T e r t ia r y S e c t o r

GSDP: Gross State Domestic Product Source: Socio Economic Review 2007-08

Gujarat has exhibited a 12.5% high industrial growth rate from 2002 -2007. In India’s
10th Five Year Plan and has achieved a GDP growth of 10.2% as per the set target,
which was the highest amongst all States in India.

Source: Socio Economic Review 2007-08

2
 Robust Infrastructure
First State to privatize ports
Ports
§ 42 ports along 1600 km coastline, including 1 major port at Kandla and 41 minor ports
§ Cost efficient transportation of natural gas, crude oil and petroleum products from Middle East and Europe
§ Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited, Green field port at
Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej developed by Petronet LNG Ltd.
and Pipapav port developed by Gujarat Pipapav Port Ltd.

Gujarat is well connected to major cities in the USA, EU, Asia and other Indian
metropolitan cities Airports

§ 13 airports under the operational jurisdiction of Airports Authority of India (AAI), at Vadodara, Surat, Jamnagar,
Rajkot, Bhavnagar, Porbandar, Bhuj, Diu, Mandvi, Mundra, Kandla and Palanpur, including one international
airport at Ahmedabad

Rail & Road 71% of the road in the State is surfaced

§ State-of-the-art road infrastructure such as India’s first National Expressway from Ahmedabad to Baroda.
§ Total road length is 74, 111 Km
§ Total length of railways in Gujarat is 5,188 km (8.25% of India)

3
Robust Infrastructure
Power Electricity Generation Capacity – 9,561 MW (2007) and estimated to rise to
14,031 MW (2012)

§ Per capita power consumption is 1,354 units whereas India’s average is 665 units
§ Rich availability of natural gas (34 MMCD) and Lignite (1,072 MMT)
§ 24-hour power supply to 98% of the villages

Total length of the existing GSPL pipeline is 1,453.16 kilometers supplying to

18 districts Gas

§ The pipelines of Gujarat State Petronet Limited (GSPL) supply gas to 13 districts, 5 more districts are proposed
to be connected by the pipeline
§ Total length of Integrated Gas Grid supplying gas to all districts is 2,200 km, of which 1,200 km is complete
and 800 km is under construction

Water Only State to carry out interlinking of rivers

§ An extensive water grid network across the State

§ The water grid is a network of 75,000 km for water distribution for irrigation
§ 75% population proposed to be covered by the grid by 2010

4
 Invest in Gujarat : A world- class Business Destination
To Delhi

Banaskantha

Bio-Tech Cluster
Patan
Mehsana
Soda Ash & Salt Kutch Himmatnagar Gujarat International
Based Industries, Gandhinagar Finance Tec City
Cement & Steel Pipes Ahmedabad
Kheda Panchmahal Knowledge Corridor
Surendranagar
Dahod
202 Industrial Estates Anand Industrial Corridor
across Gujarat (DMIC)
Jamnagar
Vadodara Savli Biotech Park
Rajkot
Petroleum & Brass
parts Porbandar Narmada Petroleum, Chemicals
Bharuch and Petrochemicals
Engineering and Bhavnagar
Amreli Investment Region
Ceramics Junagadh (PCPIR)
Surat

Soda Ash and Salt Chemicals, Petrochem.

Based Navsari Pharma, Textiles &
Engineering
Special Investment Valsad
18 Captive Ports along
Region (SIR) 51 Special
1600 km coastline
Economic Zone
across Gujarat
(SEZs) across
To Bombay Gujarat

5
 Gujarat: A Thriving Industrial State
Contributing to India’s economy across all major Presence Across Industry Sectors
sectors…
Population 5%
Geographical Area 6% Petroleum products 34%
Employees 9.50% Chemical & Pharma 23%
Factorories 9.90%
Engineering 17.6%
Net Value 14%
Food processing 10.3%
Value of Output 15.60%
Fixed Capital Investment 17%
Textiles & Apparels 6.3%
Exports 19.20% Mineral based industries 2.50%
Longest Coastline 22% Others 6.30%
Stock market capitalisation 30%
Soda Ash Production 98%
Salt Processing 85%
Diamond Processing 80% …World’s largest producer of processed diamonds and wall
Plastic Industry 65%
clocks
Petrochemicals 58%
Chemicals 50%
…World’s largest gas based single location sponge iron plant
Groundnut 42.30% …World’s largest producer of castor and cumin
Cotton 35% …World’s 3rd largest producer of denim
Significant share in
Pharmaceuticals 28%
key industry sectors …Asia’s largest grass root petroleum refinery at Jamnagar
Sea Cargo 25%
& products …India’s largest producer of cotton
Textiles 18%
…India’s first LNG Chemical Port Terminal at Hazira

With 5% of population and 6% of Geographical

Area contributes 16% of output Source: Social Economic Review 2007-08

6
Indian Port Sector at a Glance
Major Ports, India
§ India along its coastline of 7,517 km, has 13 major
ports.

§ 12 major ports are Port Trusts, governed by the

provisions of Major Port Trust Act and 1 major port
is a corporate port.

§ In addition, there are 187 minor and intermediate

Kandla Kolkata
ports out of which, 41 minor ports are based in
Haldia
Gujarat.
Mumbai Paradip
Jawahar lal Nehru Port
§ Indian ports handle 95 per cent of India’s total Vishakhapatnam

foreign trade in terms of volume and 70 per cent in

Marmagoa Ennore

terms of value. Chennai

New
Mangalore
§ Indian ports handled cargo of 649 million tonnes in Cochin
Tuticorin
2006-07, a 14% increase over 2005-06 Major Ports

Source: Indian Port Association, National Maritime Development Program

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Story So Far….
Traffic Composition at Major Ports
§ The cargo handled at the ports has been growing at an Average Growth
Others
POL &
Rate of 11.1% over the period of 2004-06 13%
it’sProduc
Container ts
16% 34%
§ Growth rate of container traffic is growing at a rate of 19.3% in 2006-2007.
Food
Grain
§ There has been a significant increase in India’s maritime trade, with traffic 1%
Ferti.&FR
M IronOre
increasing from 165 MTPA in 1991 to over 649 MTPA in 2006-07. 4% Coal 17%
15%
Note: General cargo including Containers
§ Further, the Ministry of Shipping projects the port traffic to grow to a level of

790 MTPA by 2010 based on assumed GDP of 7%. As a result, the Indian Container Traffic at Ports
25 22.5
ports require capacity expansion. 20
15.2

Growth (%)
14.1
15 11.3
10.3 9.9 10.29.4 9.7
9 9.4
§ $13.5 billion (Rs.60,750 crore) of investments is envisaged for the major 10

5 2.5

ports under National Maritime Development Program (NMDP) to boost 0

2001- 2002- 2003- 2004- 2005- 2006-
2002 2003 2004 2005 2006 2007
infrastructure at these ports in the next 7 years. 64% of the proposed
Major Ports Non Major Ports
investment in major ports envisaged from private players.

Source: Indian Port Association

Source: Report on Containerization- Building Global Trade Competitiveness, October 2007

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 Gujarat - The Gateway of India
Gujarat : Strategic Location
§ Gujarat is strategically located with India’s longest coastline of
1600 km and is the nearest maritime outlet to Middle East, Africa
and Europe

§ The state has 42 ports which includes 1 major port and 41 non-
major ports

§ The state has highest number of operational ports and

commercial cargo ports Main Ports of Gujarat

§ The first state in India to invite Private Sector Participation

through competitive bidding
Gujarat
§ The first state in India to have Chemical Terminal
Kandla
Mundra
§ The first private port of India – Pipavav is in Gujarat. Navlakhi
Jamnagar
§ The state also has the world’s one of the largest ship recycling Okha Sikka

yards at Alang Porbandar

Dahej
§ Gateway of India’s two LNG Terminals amongst three in
Pipavav Hazira
India Magdalla

§ The state ranks first in terms of cargo throughput amongst all

Indian ports handling 147 MMT cargo in 2007-2008
Source: Gujarat Maritime Board

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Gujarat Ports- Structural Classification
Port structure
(Gujarat)

Ship
GMB Private Sector Joint Sector Harbour Ship Building
recycling
ports ports ports (Fisheries) Yard
yard

Jetty Classification
(Gujarat)

GMB Private Captive SPV in

Jetties jetties jetties Existing ports

10
Gujarat Ports- Classification

Gujarat Ports: Structural Classification Gujarat Ports: Operational Classification

Koteswar

Jakhau Kandla
Mundra
Mundra
Navlakhi Navlakhi
Jamnagar Jamnagar
Okha Khambhat Okha
Sikka Dholera Sikka
Positra
Bhavnagar
Mithivirdi Dahej Bhavnagar Dahej
Porbandar Magdalla Porbandar
Mahuva
Sutrapada Hazira Hazira
Pipavav Pipavav
Vansi Borsi Veraval Magdalla
Simar
Jafrabad
Maroli Jafrabad
Muldwarka

Major Port
Direct Berthing Commercial Ports
Private Sector Ports
Direct Berthing Captive Terminals
GMB* Ports
Lighterage Commercial Ports

11
Gujarat – The Current Scenario
Traffic Handled at Minor & intermediate
Ports (State wise)
§ Gujarat handled majority share of 79.84% of traffic in Karnataka Kerala Pondicherr
3.95%
India’s minor and intermediate ports in 2006-2007 and 0.11% y
Tamil Nadu 0.02%

71.5% of the total cargo traffic in India’s Non-major ports 0.49%

Goa
(Panjim)
§ Gujarat handles 11.5% of the total cargo traffic in India’s 8.62%

major ports Maharashtr

a
6.97%
§ The non-major ports of Gujarat handled a cargo traffic of Gujarat
79.84%
147. million tonnes in 2007-2008 an increase of 11.44%
Source: Major Ports of India – A Profile 2006-2007, Indian
over previous year Port Association
Cargo Traffic Gujarat Maritime Ports
§ The total port capacity of Gujarat grew at 46.6% , from 135 (in Million Metric Tonnes)

MMT from 2001 to 198 MMT in 2007-08 160

132.44
147.6

140
108.08
120 97.13
§ Port infrastructure like captive terminals, direct berthing 100 82.55 84.12
89.35
73.18
80

ports, rail linkages, private sector ports and private jetties 60

40

exhibited considerable growth 20

0
2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-
2001 2002 2003 2004 2005 2006 2007 2008

Source: Indian Port Association, Gujarat Maritime Board

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 Gujarat – Traffic Composition
§ The total imports traffic handled during the year 2007-2008 by the ports Cargo Composition

amounts to 86.75 million tones, while that of exports traffic during the year Others
15%
Container
is 50.10 million tones.
7%

§ Over and above container cargo of 1241617 TEU was been handled in the
Fertilizer
year 2007-2008 2%
POL
Coal
57%
§ The total port capacity is 198 mmtpa and the total cargo handled is 147 9%
Cement &
mmtpa (2007-2008). Clinker
Iron Ore
Imports from 6%
4%
Major Commodities Import from
LNG and LPG UAE, Qatar, Panama
Coal South Africa, Indonesia,Australia, China
Crude Oil and Petroleum Products UAE, Brazil, Mexico Commodity wise Traffic Handled (2006-2007)

General Cargo USA, Europe, Gulf

100%
Exports to 80%

Major Commodities Export to 60%

Petroleum & Chemical UAE, Europe, Singapore, Indonesia 40%

20%
Minerals UAE, China, Georgia, Japan
0%
Food grain & Agri Products USA, China, Indonesia, UAE, Japan POL Iron Ore B uild ing Coal Fertilizer & Others
M aterials FRM
General Cargo Europe, Sri Lanka, UAE,
C India
o mmo dGujarat
it y

Source: Indian Port Association, Gujarat Maritime Board

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Advantage Gujarat
First maritime board § Nearest gateway to landlocked states

§ Vast and fertile hinterland comprising of West, North & Central India constituting 40% of the
First port policy
total Indian trade

First private port & § Longest coastline in India: Multiple choice of ports along with wide range of cargoes
Model Concession § Gulf of Cambay and Gulf of Kutch, which provide natural navigational safety and logistical
Agreement
advantage to northern and central parts of India and proximity West Asia, Africa and Europe

First LNG terminal § Ease of port privatisation due to progressive and liberal policies which provide tariff freedom,
long-term commercial arrangements, attractive concessions on port charges, bankable project
First Chemical documents and lower service priced at market rate, among other benefits
Terminal
§ Excellent rail-road connectivity and ideal for multi-modal transportation with seamless

Biggest ship opportunities

breaking yard
§ Strategic thrust provided by the presence of large mineral deposits of lignite, bauxite,
bentonite and limestone
First double stack
container train & the § Opportunities from feeder operations from Europe – Asia Shipping route
first private port rail
§ Less congested hinterland connections
company
§ Large industrial base, thereby having high demand and potential for trade growth.

§ More than 4800 ships and 1000 sailing vessels visit the ports of Gujarat every year

Source: Gujarat Maritime Board

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Policy Initiatives – Key Features
Government Initiatives

Central Government
§ The Government of India has announced a slew of initiatives and measures for the growth of the Indian Ship
Building industry, such as:
Ø 100% FDI
Ø Introduction of tonnage tax for shipping companies
Ø Plans for the establishment of 2 international ship building yards on the east and west coast through public-
private partnership
State Government
§ The Gujarat Maritime Board has announced policy initiatives and measures for the growth of the Gujarat Ports,
such as:
Ø 1982 Formation of Gujarat Maritime Board
Ø 1987 Captive Jetty
Ø 1995 Port Policy
Ø 1996 Private Jetty Model
Ø 1997 BOOT Policy
Ø 1999 GID Law
Ø 2000 SEZ Policy
Ø 2004 SEZ Act (Gujarat)
Ø 2006 Coastal Area Development Authority
Ø 2008 Captive Jetty Expansion

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State Wide Connectivity to GMB ports – Rail, Road & Air
To Delhi

Gandhinagar
Kandla

Navlakhi
Mundra Jamnagar
Dholera
Rajkot
Okha Baroda

Bhavnagar
Dahej
Porbandar Mithivirdi

Veraval

Airport/Airstrips Pipavav Hazira

Railway Network Vansiborsi
National Highway Maroli
State Highway
To Mumbai

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Port Connectivity to Dedicated Freight Corridor

To Delhi
Palanpur
Existing Rail Line

DFC

Mahesana

Ahmedabad
Kandla
Mundra

Bharuch

Dahej

Surat

Hazira
Pipavav

Mumbai
To
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Ship Building Industry in Gujarat
Favourable parameters for development of ship building industry:

§ Rise in overseas trade resulting in demand of new ship /ship conversion and ship repair

§ Indian Peninsular coastline is facing international sea route

§ Availability of favorable locations for setting up of shipyards

§ Availability of resources in terms of steel, machineries, wood, non-ferrous metals etc.

§ Availability of skilled labour at comparatively lower wages

§ Business friendly atmosphere

§ Supportive role of Government to promote and facilitate the shipbuilding industry

Shipbuilding Entity and Present capacity:

§ ABG Shipyard Ltd. 1,20,000 DWT

§ Pipavav Shipyard Ltd. 3,00,000 DWT

§ L & T Hazira 10,000 DWT

Source: Gujarat Maritime Board

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Ship Building Industry in Gujarat
Proposed Projects
§ New ship building yards are being established at Pipavav & Hazira

§ Spread over an area of 165 acres of land with 1000 mtrs water front, ABG Shipyard is establishing a new facility in Dahej,
Gujarat with a capacity of upto 1.2 lakhs DWT.

§ New projects to be accommodated in a cluster of ship yards called Marine Shipbuilding Parks with common infrastructure
and all ancillary facilities

§ Mega Marine Shipyard proposed to be built at Dahej and at Gulf of Kutch.

Potential for development of link industries:

Growth of the shipbuilding sector will magnify industrial development in the following areas:
§ Steel Production
§ Engineering manufacturing
§ Machine building
§ Diesel generators
§ Steel castings and Forgings Gujarat
§ Marine propulsion machinery etc.
§ Paint industry
§ IT industry
§ Electrical and Electronics industry Dahej

§ Instrumentation
§ Pipes & Valves
§ Transport and Communication

Source: Gujarat Maritime Board

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Gujarat Ports : Emerging Areas

Gujarat Ports

Port Development Port Based Development Shipping Industries Other Development

•Ship Building/ •Privatization of Port Services

•Container Port Facilities •Special Economic Zone
Repairing •Inland Water Transport
•Energy Port Facilities •Road & Rail Linkages
•Ship Breaking •Port traffic control – VTMS
•Modern Fisheries Harbor •Container Freight Station
•Bunkering Facility •Maritime Institute
•Agri Jetties •Port based industrial park •Maritime Training
•Coastal Shipping
•Port Mechanisation •Storage Silos •Environment Control Waste
•Training Ships
•Cruise Liners •Controlled atmosphere Disposal
•Oil spillage & reception cold Storage & warehouses •Ro- Ro
facility •Ferry projects
•Fire and safety services
•Port Planning Consultancy
services
Source: Gujarat Maritime Board

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Port Led SEZ
There are six Multi product Special Economic Zones proposed near the Gujarat
ports. The details of SEZ are given below:

§ Kandla Port SEZ- 400 Hectare Multi-product Mundra Port SEZ Kandla Port SEZ

§ Mundra Port SEZ – 2733 Hectare Multi-product Gujarat

Reliance Port SEZ
§ Dahej SEZ : 1718 Hectare Multi-product SEZ
Sterling SEZ
§ Sterling SEZ – 1263 Hectare Multi-product SEZ Dahej Port SEZ

§ Essar Hazira SEZ – 1263 Multi-product SEZ

Essar Hazira SEZ
§ Reliance SEZ – 1764 Hectare Multi-product SEZ

Key Industries for development are Light & Heavy Engineering, Textiles, Chemicals
& Pharmaceuticals, Logistics, Petroleum Refinery, Downstream Processing
Industries, Gems & Jewellery, Glass & ceramic, Agro & Food Processing, Flat
Steel products, Wide steel plates, EPC & Fabrication, Saw pipes,
Polypropylene plant

Source: Industries Commissionerate, Gujarat Maritime Board

21
Stake Holders

A Maritime Training Institute is proposed to be established in Gujarat, in collaboration with

private companies and institutions, to provide the requisite manpower

Source: Gujarat Maritime Board

22
Investment Trends
Key Highlights of the Vibrant Gujarat Global Investors’
Summit 2007

§ The summit attracted Expressions of Interest (EoI) worth Rs.

24,000 crore (USD 5.8 Bn) in the port sector, out of which MoU’s
worth Rs. 13,400 crore (USD 3.3 Bn) were actually signed during 15585

the Summit 13658

§ Several companies have been shortlisted for formation of SPV to

undertake dredging with an investment of Rs. 300 crore

§ Expansion of captive jetties and installation of Single Buoy 1600

Mooring (SBM) facilities

2003 2005 2007

§ Proposals received for establishment of captive jetties for cement

plants totals Rs. 500 crore ( USD110 Mn)

§ Installation of a Vessel Traffic Monitoring System in Gulf of

Cambay, at an estimated cost of Rs.130 crore (USD 29 Mn) by an
ATASH- Norwegian firm joint venture

Source: Industries Commisionarate, Government of Gujarat

23
Gujarat’s Ports – Rising Opportunities
Port Development Opportunities Port Based Development Opportunities

Navlakhi
Mundra Mundra v
Jamnagar
Okha
Positra Dholera
Bhavnagar
₪ Dahej Dahej
Porbandar
Magdalla v
Pipavav
Simar Hazira vPipavav
Hazira
Vansi Borsi v
₪ Offshore Drilling Support
Container Port Facilities
Energy Port Facilities
Modern Fisheries Harbor Special Economic Zone
Agri Jetties Container Freight Station
Port Mechanisation Storage Silos
General Cargo Jetties at all GMB Ports v Controlled atmosphere cold storage & warehouses
Source: Gujarat Maritime Board

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Gujarat’s Ports – Rising Opportunities
Shipping Industries Opportunities Other Developments

Mundra
⋐
Okha Positra Jamnagar
Gulf of Kutch Dholera
Bhavnagar
Bhavnagar Khambhat
⋐⋐ Dahej v Dahej
v River Narmada
Pipava Mahuva
⋐
Hazira
v River Tapi
⋐
Jafrabad Simar
Sutrapada
Vansi Borsi
Gulf of Cambay
Maroli

Privatization of Port Services

⋐ Ship Building Inland Water Transport (Opportunity at South Gujarat)
Marine Ship Building Parks (Probable Stretches)
Port traffic control – VTMS
Ship Recycling Environment Control Waste Disposal
Bunkering Facility (opportunity at all the ports)
v v Ro Ro, ferry and coastal Shipping
Fire and safety services at Alang Ship Breaking yard

25 Source: Gujarat Maritime Board

Connecting Further….

Gujarat Maritime Board http:// www.gmbports.org

Industries Department, Govt. of Gujarat http:// www.gujaratindustry.gov.in

iNDEXTb -Industrial Extension Bureau http://www.indextb.com

Gujarat Industrial Development Corporation http://www.gidc.gov.in

Gujarat Infrastructure Development Board http://www.gidb.org

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Knowledge Partner