Mechanization of Okha
Port
Port, Port Services and
Logistics
Government of Gujarat
Contents
Project Concept
Market Potential
Growth Drivers
Gujarat Competitive Advantage
10
Project Information
12
- Location/ Size
- Infrastructure Availability/ Connectivity
- Manpower
- Potential Collaboration / Key Maritime Clusters
- Key Players/Stakeholders
- Key Considerations
Project Financials
18
Approvals & Incentives
19
Key Department Contacts
20
Page 2
Project Concept
Mechanization Imperative to meet Demand
Gujarat with its favourable location and availability of a long coastline is a prime destination for
executing maritime economic activities. The increasing importance attached to maritime economic
activities has further led to the development of many container terminals.
Constantly increasing volume of global trade and the inflow of economic activities towards India and
the State have reinforced the need for advanced and efficient infrastructure facilities at the States
ports. The traffic at Gujarat ports have increased at a brisk rate as compared to the national port
traffic in the last decade.
Okha Port: Brief Overview
Okha
Okha port is an all-weather, non-major intermediate
port handling dry-bulk cargo, owned and managed by
the Gujarat Maritime Board (GMB).
It is located in the North-West coast of Saurashtra
Peninsula, at the mouth of Gulf of Kutch, Devbhumi
Dwarka District, Gujarat.
Latitude: 22o 27 59 N
Longitude: 60o 04 10 E
The port primarily imports: coal, coke, wheat, sulphur,
fertilizers, lime stone and exports: calcium bauxite,
onion, clinker, raw bauxite, chemicals, soda ash.
What is Mechanized Handling?
Efficient handling of dry-bulk cargo through the use of mechanized equipments such as ship unloaders/ loaders, conveyor belts, stackers, reclaimers, wagon loaders & tipplers, which effectively
eliminates the conventional and less efficient method of unloading of dry bulk cargo at jetty and from
jetty to stacking yard or wagon transported via dumpers.
Impact of Non Mechanization
Deployment of conventional equipment like Excavator for handling bulk cargo adversely affects
efficiency parameters like:
Average Ship Turnaround Time
Berth Occupancy and Output
Cargo Contamination
Environmental Issues
Page 3
Project Concept
Mechanization at Okha Port
Mechanization of the existing facility at Okha Port to improve productivity, take environmental
friendly measure and safe cargo handling.
Till now majority of the cargo is being handled through conventional equipment, which adversely
affect efficiency parameters such as average ship turnaround time, berth occupancy and output,
and resulted in cargo contamination, pollution and fire hazards.
Mechanized handling at Okha Port will require the installation of the following equipment at
various stages of the cargo handling value chain.
Ship To
Barge
Barge
To Jetty
Floating
Crane
Mobile
Crane
Jetty To Truck
Mobile
Hopper
Pipe/ Belt
Conveyor
Stacking
Area
StackerReclaimer
Dust
Suppression
Fog
Canon
Apart from this a storage shed, truck and wagon loading systems would also required to be
installed at the port.
Page 4
Note: Extent of mechanisation will be dependent on land availability on the backside of jetty
Market Potential
Port Scenario
Ports in India
The port sector of India is one of the important and prominent sector as it has coastline spanning
about ~7,516.6 km, forming one of the biggest peninsulas in the world.
Around 70% of Indias trading by value and 95% by volume is done through maritime transport.
By FY17, cargo capacity of India is expected to increase to 2,493.1 MMT from 1,806.8 MMT in
FY15.
By FY17, cargo traffic at major ports is expected to rise to 943.1 MMT from 581.3 MMT in FY15.
By FY17 cargo traffic at non-major ports in India is expected to grow to 815.2 MMT from 471.2
MMT in FY15.
India is strategically in prime location well connected and benefited by more than 200 ports
across the coastline as most cargo ships sails between East Asia, America, Europe, Australia
and Africa.
Classification of Ports
Major ports: India has about 12 major ports in the country, 6 on the Eastern
coast and 6 on Western coast. Major ports are under jurisdiction of the
Government of India.
Ports in India
Non-major ports: India has about 200 non-major ports of which one-third are
operational. Non-major ports come under the jurisdiction of the respective states.
a) Governments Maritime Boards (GMB) ports, b) Private ports.
Ports in Gujarat
Cargo handled at major and non-major ports
of Gujarat (MMT)
340
336
310
94
87
92
100
259
83
82
231
313
80
206
286
288
382
342
440
428
397
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
Major ports
Non-major ports
Total
Gujarat has coastline of 1,615 km,
about 1/6th of total Indian coastline.
The state has 45 ports of which 44
are non-major and 1 major port
(Kandla).
During the FY 07-16, cargo traffic in
Gujarat increased at CAGR of
10.17% to reach 440 MMT in FY 16.
The cargo traffic at non-major port
of Gujarat is envisaged to reach 864
MMT by FY20.
Share of GMB ports in the national
traffic is 32%.
Source: IBEF, GMB, Shipping ministry. *MMT- million metric tonne, FY- financial year, km- kilo meter,
Page 5
Market Potential
Demand Supply
Traffic Handled at Non-Major Ports in Gujarat
Cargo handled at non major port of Gujarat (MMT)
CAGR: 11.2 %
206.0
131.0
FY 07
151.0
153.0
FY 08
FY 09
FY 10
231.0
259.0
FY 11
FY 12
288.0
FY 13
310.0
FY 14
336.0
339.7
FY 15
FY 16
Source: GMB
The state has 1 major port and 44 non major ports, totalling to 45 ports. The state has the
highest number of operational ports and commercial cargo ports.
Gujarat is the first state in India to invite Private sector participation through competitive bidding.
Gujarat ports account for 40.7% of traffic in the total national port traffic which is more than any
other state. The non-major ports of Gujarat constitutes 32% share.
Gujarat accounts for 74.1% of traffic for non-major ports of India in 2014-15. The traffic handled
at non-major port in Gujarat has increased by CAGR 11.2% from FY 07 to FY 16 to reach 339.7
MMT.
Traffic handled at Okha Port (MMT)
CAGR: 32.7 %
4.5
5.0
2.5
1.6
1.7
FY12
FY13
FY14
FY15
FY16
Source: GMB
Bauxite, Coal and Lime stone comprised large amount of the total import cargo volume handled
at Okha port.
Bauxite comprises large amount of total export cargo handled at Okha port.
The current cargo handling at Okha port is 5.0 million metric ton per annum.
The estimated traffic at Okha port in FY 20 is about 9 MMT which can be achieved by
mechanization of handling the bulk cargo.
Page 6
Source: IBEF, GMB, Shipping ministry. *
MMT- million metric tonne, FY- financial year, km- kilo meter
Market Potential
Demand Supply
Coal Imports by India (MMT)
212.1
The coal imports in India registered more than two fold
rise in last four years
Coal consumption and imports by India are expected to
witness robust growth rates owing to greater demand
from thermal power plants and industrial setups.
Numerous proposed and under construction power
plants in Gujarat and other adjoining states rely on
imported coal to suffice their fuel requirement.
GMB operated ports handle ~20% of Indias coal
imports.
Bauxite production in India registered 21666 thousand
tonnes in FY 13-14, which registered 30% increase as
compared to FY 12-13.
Bauxite mineral from Gujarat has 32% share in total
production of Bauxite in India.
166.9
145.8
102.9
FY12
FY13
FY14
FY15
Source: Ministry of Coal
Rapid growth in imported coal volumes present an attractive business potential
of mechanized handling systems at Indian Ports
Okha Port primarily handles Coal and Bauxite
At Okha port the major cargo commodity
handled are Bauxite 58.17%, Limestone
20.35%, Coal 16.5% of the total cargo
traffic handled at port.
The demand of Bauxite is going to
increase at the CAGR of 7.63% from
FY15-20E and coal will increase at
CAGR of 14.71% from FY 15-20E.
Coal Handled at Okha port (MMT)
Port Traffic (%) Commodity wise FY 16
4.9
Coal
16.5
Lime stone
Coke
20.4
58.2
Others
Bauxite Handled at Okha port (MMT)
1.4
3.9
0.7
FY 15
0.8
FY 16
FY 20E
2.7
2.9
FY 15
FY 16
Source: IBEF, GMB, Shipping ministry.
*MMT- million metric tonne, FY- financial year, km- kilo meter, FY 20E- Estimated
Page 7
FY 20E
Market Potential
1
Okha port current
trends
2
Need for
mechanization
3
Proximity to
Mining Area
The Okha port imports coke, coal, wheat, sulphur, fertilizers, lime
stone and exports calcium bauxite, onion, clinker, raw bauxite,
chemical and soda ash. The port is not mechanized in terms of
handling the cargo which has adverse effect on the total cargo
handling around the year.
To meet the future market scenario for import and export of bulk
cargo in Gujarat, the ports should be mechanized for better
efficiency in terms of million metric Tonnes of cargo handling in the
year, quicker turnaround time of the vessels and with improved
safety and healthy environment.
The location of Okha port is strategically at the mouth of Gulf of
Kutch in district Devbhumi Dwarka in Gujarat. It is well connected by
road and rail network. The port is closer to bauxite mining area
(~135 km) and in proximity of coal based Thermal power plants in
Gujarat.
Installation of
Mechanization
The mechanization may include but not limited to mobile crane up
gradation with high capacity, mobile hopper, conveyor belt, stackerreclaimer, electrical MCC & control system, dust suppression
system, and fire fighting system.
Focus on to meet
the Future Needs
To meet the traffic to be handled at Gujarat Maritime Board ports
envisaged in FY 20 and to full fill Gujarat Pollution Control Board
(GPCB) norms, the Gujarat Maritime Board has planned to
mechanize its coal handling ports for an environment friendly, safe
& secured cargo handling with improved efficiency and better
output.
Page 8
Growth Drivers
Location Advantage of Gujarat
Gujarat acts as a
gateway to West and
to major states across
India
44 non-major and 1 major port are strategically located across a 1600 kms coastline, which is
the longest among the Maritime States of India
Nearest maritime outlet to Middle East, Africa and Europe
Highest number of commercial cargo ports
Acts as a gateway to northern and central India; connecting them via road, rail and air - thereby
providing immense trading opportunities
Handled 40% of national maritime trade in FY15
Robust Future Development of Ports in Gujarat
Page 9
Capacity Augmentation: Gujarats non-major ports
capacity is expected to reach 864 MMTPA by FY20,
which would require ~52% of the total capacity
augmentation at all non-major ports of India.
Development of Port Cities and Port based
SEZs: Government of Gujarat (GoG) and GMB have
planned to develop port cities and SEZs at Mundra
and Pipavav.
Maritime Cluster and Maritime University to
promote positive synergies between participating
entities (both port and non-port based), enhance
competitiveness and grow the local maritime
economy.
Shipbuilding parks: Gujarat being hub for
Shipbuilding in India and with the special incentives
declared by GoI for Shipbuilding yards, many
shipyards shall set their base in Gujarat.
Gujarat - Competitive Advantage
Gujarat has 45 ports and both Gujarat
and Maharashtra constitute 47% of the
total national port numbers.
The total traffic volumes of non-major
ports continued their upward trajectory
with 45% share in traffic handled at Indian
ports in 2014-15.
Traffic at GMB ports have increased at
CAGR of 13% from 2003-04, while for
Major ports, the traffic has increased at a
CAGR of only 4.9%.
Contrary to the sluggish pace of economic
development during 2014-15 in India and
around the world, GMB has achieved a
fair increase of 8.5% in the traffic, while
the traffic at Major Ports has grown by 4.7
% during the year 2014-15.
Share of GMB in Total Maritime
traffic in India
32%
68%
Traffic at GMB
Ports
National
maritime traffic
excluding GMB
Gujarat ports account for 40.7% of traffic
in the total national port traffic more
than any other State. Out of this, the NonMajor ports of Gujarat constitutes 32%
share. With 336.1 MMT, Gujarat
accounts for 71.4 % of traffic for nonmajor ports of India in 2014-15.
Indias most advanced VTMS unveiled in
the Gulf of Khambhat
The traffic at private ports under GMB
has grown at an impressive CAGR of
24% during past five years
Share of GMB in Total Traffic at
Non-Major Ports
The major share in Indian bunker market
is taken up by Mundra port located in
Gujarat. Bunkering is available majorly at
Mundra and Kandla and to some extent at
Bedi, Jamnagar, Rozi, Sikka, Vadinar &
Navlakhi.
Source: GMB
Page 10
26%
Traffic at GMB
Ports
Traffic at NonMajor Ports
74%
Gujarat - Competitive Advantage
Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many
areas of manufacturing and infrastructure sectors. Gujarats SDP (State Domestic Product) at
current price registered a growth of 11% during the year 2014-15.
Gujarat contributes around 17.2 % to the countrys industrial output whereas the value of output
registered is about 18.5%.
Ease of Doing Business: Only state which comply 100% with Environmental procedures.
Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a
construction permit
Gujarat is the one of the power surplus states in the country as a result it helping in bringing huge
amount of investment from the industries and tagged as preferred investment destination in the
country
Gujarat contributes around 19.1 per cent to Indias total exports of goods in 2014-15.
Gujarat credited with Indias First LNG chemical port terminal at Hazira
Geographical advantage due to location on the west coast of India. The state is well connected
to the major cities of the world by air and sea routes. The state has 45 operational ports, 12
domestic airports and 1 International airport in addition to an extensive rail and road
network.
Gujarat is one of the leading Industrialized States in India and the State has attracted cumulative
FDI worth US$ 12 billion from April 2000 to March 2015
Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical,
auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.
'Petro Capital' of India, contributing significantly
to the country's production of Petrochemicals
(62%),
Chemicals
(53%)
and
pharmaceuticals (45%).
Gujarat has Worlds Largest grass root
petroleum refinery at Jamnagar by Reliance
Industries Limited with a crude processing
capacity of 1.24 million Barrels Per Stream
Day (BPSD)
Page 11
Source: Socio Economic Review of Gujarat 2015-16, DIPP, RBI
Project Information
Port Details
Site Image
Source: GMB
Page 12
Project Information
Port Details
Anchorage: Anchorage is 2.4 km off shore. Vessel upto 7.5 m draught can be berth at this port.
Pilotage: Pilotage is compulsory at the port
Harbour Structure
Sayaji Pier
Length
180 Meter
Width
20.5 Meter
Approach
114 Meter
Berthing Capacity
2 Nos. of Vessels at a Time; One on the Eastern and Other on the
Western Side
Draught
8 Meter
Dry Cargo Berth (DCB)
Length
146 Meter
Width
13.72 Meter
Approach
216 Meter
Berthing Capacity
2 Nos. of Vessels at a Time; One on the Eastern and Other on the
Western Side
Draught
4 Meter
New Lighter Wharf : Length : 100 Meter
Facilities and Equipment's
Tug
2 Nos. 1,600 BHP (Rukmani & Gopnath)
Launch
1 No.- M.L. Gomti (Ferry Service Boat)
Barges
Private Barges are available (No Port Barges)
Launch
1 No. Passenger Launch 470 BHP
Cranes
1 No. of Mobile Crane with Capacity of 12.5 Tonnes
Dredger
1 No. of Grab Dredger
Warehousing & Storage Facilities
16 Godowns & Two Open Sheds
Stacking Area
50,000 Sq. Meter
Source: GMB
Page 13
Project Information
Utility
Power
Water
Fresh Water is supplied by Private
Barges.
Water supply for industry is provided
by Gujarat Water Supply and
Sewerage Board (GWSSB)
The power is supplied by Paschim
Gujarat Vij Company Ltd. (PGVCL)
at the yard.
DG sets installed in yard may be
used in case of power failure.
Logistics & Connectivity
Rail
Okha is well connected with rest
of India by broad gauge railway
line.
Okha is connected to Delhi via
Jamnagar on Western Railway
route.
Road
Existing Infrastructure
Air
~483 km from international airport
at Ahmedabad.
~175 km from domestic airport at
Jamnagar and ~260 km at Rajkot.
Airstrip at Mithapur ~10 km away.
*Source: Socio Economic Review of Gujarat 2015-16, GMB
Page 14
Okha is connected by road to
Jamnagar and Porbandar by State
Highway 6A and SH-6B.
NH-8E passes through the district of
Jamnagar, connecting Somnath
Porbandar - Dwarka. NH-8E is 30
Km away at Dwarka.
The port has 2 jetties for which it can
accommodate total 4 vessels at a
time (East and West on both the
jetty).
The current capacity of cargo
handling is 5 MMTA.
Stacking area of 50,000 sq.m.
Project Information
Current Handling Process
2
Excavator
Dozer
Barge
Jetty
Dozer
Stack Yard
9
Excavator
for Stacking
Truck
Truck
10
Wagon
Loading
Area
11
Excavator
Multiple Handling
Handling in open in all stages
Creation of Dust
Dusty Area
Creation of Pollution
Final
Destination
Mechanized Handling Process
2
4
Grab Crane
Conveyor
Barge
Conveyor
5
Hopper
Single Handling
Handling by Closed System
Page 15 Source: GMB
Stacker
Loading Area
No Dust
No Pollution
Final
Destination
Wagon/ Truck
Loading
Project Information
Key Processes to be Mechanized and its Benefits
Equipment's
Description
Advantage
Mobile Harbour
Crane
Grab Material from Barge and
feed to Hopper
Stacker/ Reclaimer
Stacking and Reclaiming of
Cargo in Stack Yard and
transfer to Truck/Wagon
Loading System.
1. Stacking and Reclaiming can be possible in
environment friendly manner.
Pre-Engineering
Build Shed
Storage of Cargo
1. Storage of Cargo up to height of 12 to 14
Mtr.
2. Zero effect of Wind hence less Air
Pollution.
Truck and Wagon
Loading System
Rapid Loading of Truck and
Wagon
1. Easy and rapid transfer of cargo from
Stack Yard to Truck/Wagon.
2. Fast evacuation from Stack Yard
1.
2.
Hoppers with Dust Received Material from Crane
3.
Suppression System and feed to Conveyor
4.
5.
Closed Type Belt
Receive Material from Hopper
Conveyor System
and transfer to Stack yard.
Speedy Handling
No Spillage
Less Pollution
Ship Turnaround Time Reduced
Less Manpower
Manpower
Floating Crane Handler
No.
Mobile Hopper Machine Handler
No.
Conveyor Belt Surveyor
No.
Stacker & Reclaimer Handling
No.
Material Handling
No.
Administrative Staff
No.
On-shore and Executive Supervisor
No.
Other staff (Guard & Peon)
No.
Total
Page 16
24
Project Information
Project Structure & Implementation Model
Port mechanization projects are usually funded through a PPP model, in which private players can
charge operating charges per ton of cargo handled.
Gujarat Maritime Board (GMB) is contemplating to develop the mechanization project at Okha Port
on a stand alone basis.
Possible Collaboration
Key Technology / Machinery Suppliers / Material Handling System Suppliers
Murata Machinery Limited
Godrej Efacec Automation & Robotics Limited
Schaefer Holding International GmbH
Voith Turbo GmbH & Co. KG
Beumer Group GmbH
ABB Crane Systems
Elecon Engineering Company Limited
Craneports Limited
Aegis Eng. Co. Private Limited
Konecranes
Transflex Conveyors Private Limited
Shree Techno Engineers
Port Operations and Management
JSW Infrastructure
TM International Logistic limited (TMILL)
Sical logistics limited
Essar Logistic Ltd (ELL)
PSTS Logistics Private Limited
Elecon EPC Projects Limited
Boxco Logistics India Private Limited
LD Ports and Logistics
Key Considerations
The project viability is subject to availability of natural resources vis--vis coal and bauxite.
Key project variables such as demand and supply of the minerals, national and international
economic conditions, international trade, Indian exports and imports are subject to variation and
change.
The execution of the project is subject to necessary approvals from regulators.
The cost for the project is indicative only and based on assumption & benchmarking the project
with similar project and subject to change with alteration in any criteria.
Attractiveness of the Region depends on regional development which includes following
parameters: conducive environment for the investors, talent attractiveness for the region, social
infrastructure
Page 17
Project Financials
Project Cost
The total cost for the mechanization of existing jetties is estimated to be ~INR 120 crores,
below is a detailed break down of the equipment to be procured.
Metric
Total Estimated Cost (INR million)
Mobile Harbour Crane Two (2) Nos
425.0
Stacker and reclaimer -2 Nos each including
the belt conveyors
400.0
Dust Suppression System
30.0
Space Frame Shed
100.0
Rapid Wagon Loading System One (1) No.
30.0
Static Truck Loading System including Steel
Structure and Bins One (1) No.
30.0
Civil Works
120
Utilities & Others
10.0
Contingencies (5%)
57.0
Total Cost
INR ~1,202 million or ~120 crores
Benchmark Financial Data for a Similar Project
Mechanization and expansion of a solid cargo terminal at Dahej port
In 2014, Adani Petronet (Dahej) Port Private Ltd. (APPPL) proposed Phase III expansion
involving mechanization of south berth and facilitating backup storage yards. Below is a broad
level breakdown of the key cost components.
APPPL Mechanization and Expansion Cost Estimates
(INR million, 2014)
% of total cost
Civil Works
1,247.5
27%
Mechanical Handling System (Equipment)
2,170.2
47%
Electrical & IT Work
358.6
8%
Utilities & Others
245.6
5%
Miscellaneous & Contingency
621.3
13%
4,643.2
100%
Total
Page 18
INR 68 = 1 USD
Approvals & Incentives
Approvals
Approval Procedure
Approval from the Board Members of the Gujarat Maritime Board
and approval from the Port & Transport Department, Government
of Gujarat.
License
License for implementation of Mechanized Handling System for
handling and evacuating the cargo.
Power & Water
Connection
Additional power can be procured from the existing supplier
Paschim Gujarat Vij Company Ltd. (PGVCL). Similarly, water for
can be procured from the Gujarat Water Supply and Sewerage
Board
Environmental
Clearance
CRZ Clearance (Coastal Clearance) needs to be obtained from
Gujarat Coastal Zone Management Authority (GCZMA).
Additionally, pollution clearance from Gujarat Pollution Control
Board (GPCB) is also required
Performance Standard
Approval to be availed by forwarding a copy of the Performance
Standards to the concerned users/ organization bodies
Tariff
Approval for the upfront tariff for mechanical handling of different
cargoes
Incentives
GOI has allowed foreign direct investment of up to 100 per cent under the automatic route for
projects related to construction and maintenance of ports and harbours;
Permission granted for formation of joint ventures between Major Ports and foreign ports, Major
Ports and Non-Major Ports, and Major Ports and companies;
Various incentives, such as, ten year tax holiday for enterprises engaged in development of Port
sector
Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax
Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer.
Reduced service tax incidence on coastal shipping
Page 19
Ports & Transportation Department, Government of Gujarat
www.pnt.gujarat.gov.in
Gujarat Maritime Board
www.gmbports.org
Industries & Mines Department
www.imd-gujarat.gov.in
Office of Industries Commissioner
www.ic.gujarat.gov.in
Industrial Extension Bureau
www.indextb.com
Gujarat Infrastructure Development Board
www.gidb.org
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
SAGAR BHAVAN Sector 10-A,
Gandhinagar - 382010. Gujarat (India)
Phone: +91 79 23238346 +91 79 23238347
Fax: +91 79 23234703
Email: info@gmbports.in
www.gmbports.org
