Ports & Shipping

India Infrastructure Publishing

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Tel: 91-11-4103 4600 / 4601
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E-mail: info@indiainfrastructure.com
News
April 16, 2012 April 22, 2012

Ports
Reportedly, the construction of the fourth container terminal at the Jawaharlal Nehru Port Trust
(J NPT) may be delayed further with the dissolution of the joint venture (J V), which was awarded the
contract. The Rs 67-billion project was awarded to a J V of PSA International of Singapore and Mumbai-
based ABG Ports Private Limited. According to sources, PSA International is likely to take sole
responsibility for the construction of the terminal on receiving the port trust approval. The project involves
a capacity addition of 4.8 million twentyfoot equivalent units (TEUs) at the J NPT.
The Chennai International Termi nals Private Limited (CITPL) has received four new ship to
shore quay cranes (QC) and eight new rubber tyre gantry cranes (RTGCs). With these acquisitions,
CITPL has a total of seven QCs and 18 RTGCs and more than double its existing terminal handling
capacity. Each crane will undergo commissioning tests and will be progressively deployed for operations
from May 2012. The four Post Panamax STS cranes are capable of lifting two 20-foot containers per
move. The private container terminal located at Chennai port is owned and managed by PSA
International, Singapore.
The container terminal of Larsen and Toubro's (L&T) Kattupall i shipyard-cum-captive port is
ready for commissi oning. Currently, the terminal is awaiting communication from the Customs
department notifying the terminal. Reportedly, the company is ready with its container terminal (berth
two). The six-line gate complex is connected to two container berths by a four-lane road. In December
2011, three rail-mounted quayside cranes (RMQCs) arrived at the L&T terminal from China, and are
ready for operations. The port facility also has 15 RTGCs, two reach stackers and 420 reefer plug points.
On April 12, 2012, L&T received Zhen Hua 20, a heavy lift vessel, with three more RMQCs to be
installed at the second berth.
The Cochin Port Trust (CPT) plans to increase its throughput to 50 mi llion tonne per annum
(mtpa) from the current level of 20 mtpa over the next two to three years. The port recorded a 12.4-
per cent growth in the last fiscal year, 2011-12. The liquefied natural gas (LNG) terminal which is nearing
completion is expected to add a cargo capacity of five mtpa. Further, the Bharat Petroleum Corporation
Limited (BPCL)-Kochi Refinery expansion is likely to add another 10 mt in the next two-three years.
Meanwhile, the port is planning to award the contract for four mt general cargo berth on the Q8-Q9
berths by December 2012. The contract for the 45-acre ship repair yard is also likely to be awarded in
the current fiscal.
Maersk Li ne has included Port of Pipavav in its MECL1 servi ce starting April 2012. Maersk
Wisconsin was the first vessel to make the maiden call for the MECL1 service. The new service will
connect customers in Gujarat and the North Indian hinterland directly to the USA. The ports of call for the
MECL service are Mumbai-Nhava Sheva (J NPT), Salalah, New York, Charleston, Norfolk, New York,
J ebel Ali, Karachi - Port Muhammad Bin Qasim, Pipavav, Mumbai - Nhava Sheva (J NPT).
The State Cabinet of Kerala has approved a detailed project report to devel op the Thangassery
port near Kollam. Moreover, the cabinet has also given the go-ahead to a revised request for proposal
document and a draft concession agreement with respect to the project. The development of the port will
be taken up in two phases, with an initial thrust on basic infrastructure. A wharf will be laid out to the
southeast of the port periphery in the second stage of development of the project. The first and second
phase of the project will require an investment of Rs 1.11 billion and Rs 1.25 billion respectively. The
government has already invested Rs 710.6 million as part of the first phase.
According to reports, Spanish engineeri ng group Duro Felguera has won a Euro 62 mil lion
contract from the Gangavaram Port Limited to expand the port terminal. The contract aims to
increase the coal handling capacity of the terminal, whose construction was undertaken by Duro
Felguera through its Division of Plant Industry between 2006 and 2008. The project will be executed on a
turnkey basis. As part of the project, capacity of both ship unloading and storage of coal in the yards of
the harbour will be doubled.
Reportedly, the state government has asked the Welspun consortium, the sole bidder for the
Vizhinjam deepwater seaport and international container transshipment terminal (ICTT) proj ect to
rework the financial bid and submit the best offer. The consortium had sought an upfront grant of Rs 4.80
Ports & Shipping
India Infrastructure Publishing
B-17, Qutab Institutional Area
New Delhi 110016
Tel: 91-11-4103 4600 / 4601
Fax: 91-11-2653 1196
E-mail: info@indiainfrastructure.com
News
April 16, 2012 April 22, 2012

billion from the government over 16 years to operate the port. The project will be undertaken on a
landlord port model. The government will invest Rs 30.4 billion in creating the basic port infrastructure,
including the construction of a breakwater and reclamation of land for the port terminals, quay walls, and
berths. The infrastructure and assets will be leased to a private operator who will have to invest Rs 9.7
billion on building the superstructure and installing equipment such as cranes and lifts. The revenues
from the port operation will be shared by the operator and the government during the lease period of 30
years. The government plans to commission the first phase of the project by 2015.
The Central Warehousing Corporati on (CWC) has started a new inland contai ner depot at
Kannur. At present, CWC is operating 37 container freight stations (CFSs)/internal container depots
(ICDs) and air cargo complexes in the country. The ICD Kannur will be the 38
th
unit catering to exim
container clearance facilities. The Kannur facility, set up at an investment of Rs 40 million, is capable of
handling more than 3,000 TEUs a year. The total area of the ICD is 4.84 acre with an open container
yard spread over 2,500 sq metre.
Angre Port in Maharashtra's coastal district of Ratnagiri is expected to commence operations
from April 24, 2012. The port is expected to ease the problem of congestion at J NPT and reduce the
logistics costs. Chowgule Ports & Infrastructure Private Limited has invested Rs 5.20 billion to develop
the all-weather port with a natural draught of around 10 metre (m), which will subsequently be increased
to 13 m. On completion, the Angre port will be able to handle vessels up to 80,000 deadweight tonnage
(DWT).
The Contai ner Corporation of India (Concor) has started operation of contai ner rakes from the
New Mangalore Port Trust (NMPT) to Bangalore. The first container rake from Mangalore to
Bangalore began operations on April 10, 2012.
Shipping
The Shipping Corporation of India Limi ted (SCI) has extended the contract for two multi-
support vessels (MSVs) with Dolphin Offshore Enterprises (India) Limited (DOEIL). The contract for
two MSVs, Samudra Sevak and Samudra Prabha, has been extended for a period of one year with
effect from March 24, 2012 to March 23, 2013 with DOEIL. SCI has the option to extend it for a further
period of six months in two extensions of three months each on the same rates, terms and conditions.
The projected contract value for this contract for the year 2012-2013 is estimated at Rs 575 million.
Meanwhile, SCI has taken the del ivery of M V SCI Kundan, an anchor handl ing, towing and
supply vessel (AHTS). The vessel has a capacity of 120 tonne bollard pull. The vessel has a gross
tonnage of 2,067 tonne and deadweight of 1,994 tonne. The company had signed contracts for
acquisition of two 120 tonne AHTS vessels with Cochin Shipyard Limited. The first vessel, M V SCI
Pawan was delivered to SCI in 2011.
SCI has commenced its di rect European service through ICTT Vallarpadam with vessel, SCI
Chennai. The rotation of service will be Colombo-Kochi-J NPT-Mundra-Salalah-Gio Tauro-Felixstowe-
Hamburg-Antwerp-Gio Tauro-Colombo. The new service will facilitate direct loading for European
markets from Cochin. SCI Chennai is a mainliner of 4,400 TEUs capacity.
Essar Shipping Limited (ESL) has secured a drilling contract for two drill rigs for $25 mill ion.
The company has won a contract from New Sino Oil Company (NSOC) to drill five wells in Brunei. Essar
Oilfield Services India Limited (EOSIL), a wholly-owned subsidiary of ESL will execute the drilling of
these vessels. The company will deploy its deep drilling land rig LR4 from August 2012 onwards for
NSOC. This contract, expected to last initially for about nine months, includes the option of extending it
to drill three additional wells in and around the same area. The extension will bring the total duration of
the drilling programme to 15 months. In addition, the company has won another contract for its rig LR3
from B G Shirke Limited, who will commence drilling operations in its first exploration venture in India
from May 2012. The two contracts are expected to generate total revenues of $25 million over a period
of about 15 months.

Note: Rs 1 crore =Rs 0.01 billion; Rs 1 lakh =Rs 0.1 million; Rs 1,000 million =Rs 1 billion