The Expansion and Modernization of Indian Ports during 2007

by OldSailor on December 23, 2007



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With vast coast line of 7500 km, Indian Shipping and Ports are bound to see growth. Private shipyards are poised to expand. Press release of Year End Review 2007,dated December 20, 2007 by the Indian Ministry of Shipping, Road Transport & Highways is given below:

Year End Review –07
The expansion and modernization of Ports remained amongst the top priority areas of the Government during the year 2007. Several developmental projects got underway at the major ports during the year. The year also witnessed significant growth in traffic and capacity at ports and also the growth in Indian Tonnage. During the year, the Perspective Plans have been prepared for 12 Major Ports alongwith a consolidated National Development Plan.

Port Sector
Preparation of Perspective Plans for Major Ports

Pursuant to the decision of the Committee on Infrastructure (COI) headed by the Prime Minister, the 12 Major Ports engaged international consultants for preparation of their respective Perspective Plans (Business Plans) for 20 years which would include an Action Plan for 7 years also. The Perspective Plans have been prepared for 12 Ports alongwith a consolidated National Development Plan. These plans are expected to serve as guides for the Major Ports in preparing their Annual Plans and undertaking various developmental projects in future.

Growth in Traffic and Capacity

In the first eight months of financial year 2007-08 i.e. April-Nov., 2007, the traffic handled was 333.27 MT as against 294.60 MT in the corresponding period in the previous years registering a 13.13% increase

Mumbai Port Trust

Construction of Offshore Container Terminal on BoT basis at a estimated cost of Rs. 1228 crore. The Mumbai Port Trust’s component of work of Rs. 366 crore.

Construction of 2nd Chemical Jetty at a cost of Rs. 116 crore through Internal Resources of Mumbai Port Trust approved by the GOI. It will have a capacity of 2.0 MTPA.

Redevelopment of 18 to 22 Indira Docks at an estimated cost of Rs. 355 cr. Has also been approved.

Paradip Port Trust

- The approval of the Government was granted to the Revised Cost Estimate proposal of ‘Deepening of Channel at Paradip Port’ on 29.11.2007.

- The proposal of Deep Draught Iron Ore Berth on BoT basis was approved by PPPAC (in principle) at estimated cost of Rs. 504.76 crores on 30.3.2007.

- The proposal of construction of Deep Draught Coal Berth on BoT basis was approved by the PPPAC (in principle) at an estimated cost of Rs. 612.22 crores on 30.3.2007.

Visakhapatnam Port Trust

Modernisation of Outer Harbour at VPT at an estimated cost of Rs. 185. 15 crore approved .

Tuticorin Port Trust

- Construction of Berth No.9 and North Cargo Berths are in progress.

-‘In-principle’ of approval of Planning Commission obtained for Deepening of Channel and Basin project at Tuticorin Port.

- Approval of Public Private Partnership Appraisal Committee (PPPAC) received for the project of Development of 8th Berth as the Second Container Terminal at Tuticorin Port on BOT basis. Further action is under process.

- The old Tug Rajaji was replaced with a new Tug MT Tuticorin. TBP at total cost of Rs. 25 crores.

Iron Ore, Coal and Marine Liquid Terminals at Ennore Port

-A Marine Liquid Terminal of capacity 3 MTPA has been awarded at a Cost is Rs. 196.25 crores.

-EPL has also signed the Concession Agreement with the selected bidders for development of an 8 MTPA Coal Terminal and 12 MTPA Iron Ore Terminal on BOT basis. The estimated capital cost of these projects is Rs. 348.00 crores and Rs. 480.00 crores respectively.

-The Government has approved the project for undertaking Capital Dredging- Phase-I by EPL at an expenditure of Rs. 91 Crores.

- Contract for shore protection completed

- LOI issued for package covering Fishing Harbour Road, MOR road, northern segment of Inner Ring Road and 3 additional groint

-Project completion by December, 2008

Second Container Terminal at Chennai Port

-Estimated Cost – Rs. 495 crores

-License agreement signed on 7.3.2007 and Project will become operational from April, 2009

Creation of additional open storage area by reclamation at an Estimated cost Rs. 200 crores

Modernisation of Chennai Port At an Estimated Cost – Rs. 200 crores
Construction of new bridges across Ponnai River at Tiruvalam on NH-4 near Vellore

- Chennai-Ennore Port Road Connectivity of 30 Kms. Length with an estimated project cost of Rs. 309 crores. A progress of 9.7% in case of Phase I has been achieved upto November 2007.

- 4-laning of NH-7A connecting Tuticorin Port of 47.2 kms. Length with estimated project cost of Rs. 231 crores is under implementation.

- 4-laning of Tuticorin-Madurai Road (NH-45B) with road length of 144 kms at an estimated cost of Rs. 629 crores has been sanctioned, work awarded and Financial Close achieved.

- Doubling of Madurai-Dindigul section of railway line connecting Tuticorin Port of 62.06 kms. Length with estimated project cost of Rs. 126 crores has been sanctioned and the work has been awarded. Scheduled completion date is December, 2008.

- Project Report for Puttur-Attipattu Chord Line connecting Ennore Port 144 kms length at an estimated cost of Rs. 435 crores is under preparation.

- Elevated Expressway from Chennai Port to Maduravoyal on National Highway 4 is under consideration.

Kolkata Port Trust

- Construction of Berth No. 2 at a cost of Rs. 46.80 cr. has been completed which will add a capacity of 2 MTPA.

- Construction of Berth No. 13 at a cost of Rs. 39.56 cr. has been completed which will add a capacity of 2 MTPA.

Modern Deep Sea Port in West Bengal

For undertaking the development works, at Indian Ports a provision of Rs. 2000 crores is made in the 11th Five Year Plan period.

One of the initiative in this direction is the proposal for setting up of a deep draft port in West Bengal, keeping in view that the Major port of Kolkata, which suffers from draft limitations. The project as conceived envisages ‘Development of a deep-sea port on the coastline of the State of West Bengal, India with the facility to receive and berth vessels requiring a minimum draft of 17m at all times and 50 years perspective’. D/O Shipping is working for selecting consultants for the Project.

Sethusamudram Ship Channel Project (SSCP)

Dredging work on a stretch of channel in Palk Strait viz. Package ‘D’ which was awarded to M/s Dredging Corporation of India (DCI) was under progress in 2006-07. Dredging Contract for dredging at Adam’s Bridge and Southern Parts of Palk Bay/Palk Strait (Package ‘A’, ‘B’ & ‘C’) under Sethusamudram Ship Channel Project (SSCP), were also awarded to Dredging Corporation of India (DCI). About 28 Million Cu.mtrs. of dredging has been undertaken so far. Dredging in Adam’s Bridge has been suspended in view of order of Hon’ble Supreme Court of India dated 31.08.2007 and 14.09.2007.

Rail Road Connectivity of Major Ports

During the year 2006-07, Railways completed projects for Rail connectivity to the Major Ports at Haldia, New Mangalore, Kandla and JNPT. The project for Road connectivity to VPT was also completed.

Rail Connectivity to International Container Transshipment Terminal at Vallarpadam, Cochin Port India has been approved on 22.3.2007 at cost of Rs. 245.67 crore.

Tsunami Rehabilitation Programme

Rs. 897.31 crores for Tsunami Rehabilitation Programme in Andaman & Nicobar Islands upto 2008-09 was approved and Rs. 31.02 crores was approved for other organizations under Deptt. of Shipping. Various projects are under implementation in Andaman & Nicobar Islands.

Model Concession Agreement (MCA) for Ports

The draft MCA for Public Private Partnership projects has been finalized and is under process for obtaining approval of the Government.

The Retirement Age of Port and Dock Workers and Employees was raised to 60 years from 58 w.e.f. 30.9.2007

Department Of Shipping

Growth in Tonnage
The Indian tonnage has been continuously growing during the last two years due to the introduction of Tonnage Tax for Shipping industry and also the current shipping boom. At present (1.12.2007) the tonnage is 9.06 million Gross Tonnage (GT) as against the last year’s tonnage of 8.3 million GT.

Indian Maritime University

The establishment of Indian Maritime University is under active process.

Cruise Shipping policy
The National Cruise Shipping policy is on the anvil

IMO Council

-India won election to the IMO Council in Category’B’ which second highest

Number of votes with 127 votes cast in favour out of 138 valid votes.

Shipping Corporation of India Ltd.

The Shipping Corporation of India (SCI) has placed orders for the construction of 16 vessels Also Tonnage Acquisition of two Capesize bulk carriers, four Panamax Bulk Carriers, two Container vessels in pipeline

The SCI won the Best International Solution Award and Shipowner/Operator of the year 2007 Award and also the “ Shipower of the Year 2007”.

Profit of Public Sector Undertakings.

- Shipping Corporation of India (SCI), declared a profit of Rs.1015 crore for the year ended March, 2007 and declared a Dividend of 85%.

- Cochin Shipyard Ltd. (CSL) has made a profit of Rs.58.07 crores during 2006-07 which is more than 3 times of the previous years and also paid dividends of Rs.8.34 crore

- Hooghly Dock & Port Engineers Ltd. have posted operating profit of Rs.16.80 crore during 2006-07 after 2002-03 inspite of all odds.

Shipbuilding Sector

The Cochin Shipyard Ltd (CSL) achieved a production of 127022 DWT during six month of the year. The CSL has also achieved ship repair turnover of Rs.182 crore.

Ship repair activities have commenced in Southern NW works in HDPEL after a decade and some of the old machinery has been made functional / operational and the system has been restored.

The HDPEL has been able to obtain / won orders amidst stiff the orders from Indian Navy amounting to Rs.99.61 crores and of Rs.28 crores from Inland Waterways Authority of India for construction of Work Boats.

The Shipbuilding Subsidy scheme expired on 14th August,2007. In order to give a boost to Shipbuilding Industry, revival of the subsidy scheme is on anvil.

Central Inland Water Transport Corporation(CIWTC)

Based on the recommendations of Board for Reconstruction of Public Sector Enterprises (BRPSE), the Govt. has taken a decision to disinvest the Central Inland Water Transport Corporation(CIWTC). The Rajabagan Dockyard (RBD) has been handed over to Garden Reach Shipbuilders & Eingineers (GRSE) and financial restructuring of CIWTC is being undertaken before the disinvestment. The action to assess the viability of Disinvestment of CIWTC is under process.

Inland Water Transport

Development of National Waterways.

- National Waterway (Lakhipur-Bhanga Stretch of the Barak river) Bill 2007was introduced in Lok Sabha on 29.8.2007 which has been referred to the Standing Committee..

- Protocol Renewal meeting held on 31st March and Ist May, 2007 in New Delhi between India and Bangladesh to review Indo-Bangladesh Protocol on Inland Water Transit and Trade (IWT&T). The Protocol was renewed for a period of 2 years upto 31.3.2009 after many short term renewals.

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