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STRATEGY
Gujarat envisages an integrated port development strategy, consisting of creation of port facilities, industrialization and development of infrastructure facilities like roads and railways in the hinterland. It is estimated that around 3 Billion Dollars (Rs.10,000 crores) would be required to create new port facilities alongwith necessary infrastructure in the coming 5 years. In view of the fact that ships of large sizes are used in the transportation, for economies of scale in international trade, ports would be developed with direct berthing facilities and speedy mechanical handling facilities, so as to reduce waiting period of the ships and saving in the cargo expenses. To expedite creation of port facilities by 2000 AD, it is proposed to have the participation of private enterprise in the development of port infrastructure. The following strategies are proposed :
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GUJARAT MARITIME MASTER PLAN
With the liberalization of trade and industrial policy, the cargo which are likely to be generated by 2000 AD. in Gujarat and hinterland Stated of Northern and Central India, are likely to increase enormously. The industrialization of Gujarat will coincide with port development and both these activities would be synchronized so that the port has assured cargo right from the beginning and industries avail port facilities immediately. It is expected that 50% of the entire cargo for each of the new ports will be provided by industries in the near vicinity of port locations.
As indicated earlier, Gujarat will be in apposition to handle 100 million tones of cargo by 2000 AD. 33 million tones of crude oil import and 14 million tones of petroleum products exports, from the two refineries located in Jamnagar district, are major assured future cargo. Besides this, mega cement plants under construction will contribute another 10 million tones of cargo, in terms of export of clinker/cement and import of coal.
Gujarat Maritime Board has undertaken a study to inventories, the likely cargo from the hinterland States as well as in co-ordination with the Departments of Agriculture, Fertilizers, Petroleum, Steel and Coal under various Ministries of Government of India. The assistance of Director-General of Foreign Trade will be sought to co-ordinate the projected cargo generation on behalf of various Departments of Government of India. The detailed projected traffic, by 2000 AD. commodity-wise and region-wise, which will specifically cater to Gujarat ports, will be available by end of January, 1996.
Gujarat Maritime Board will establish a marketing wing to assess likely new cargo generation from time to time and to look for new avenues to service Gujarat Ports. As indicated earlier, by 2000 AD. Gujarat will be in a position to handle 100 million tones of cargo which will account for 25% of the India's total cargo at that time.
Port development is an integrated approach covering industrial development, power generation and infrastructural
development. To co-ordinate this integrated approach and to achieve a balanced regional development, Gujarat Maritime Board will evolve a master-plan for each of the new port locations.
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PRIVATE INVESTMENT IN THE EXISTING MINOR AND INTERMEDIATE PORTS
The existing ports under Gujarat Maritime Board, which handle 16 million tones of traffic, have shown a growth rate of 22% during the last two years. The demand on these existing ports are increasing day by day. In order to handle as much cargo as possible, during the period of 5 years till new ports are likely to come into operation, it is decided to invite private investments in the existing minor and intermediated ports. General guidelines of privatization are as follows:
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Incomplete works of wharf/jetty/quay of GMB will be privatized.
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Private entrepreneurs will be permitted to install modern mechanical handling equipment on the wharf/jetty/quay.
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Privatisation of the construction of new wharves/jetties in selected sites.
The entrepreneurs making investment in these locations will be given 'outing priority' for period of 5 years from the date on which it is awarded. For Projects with higher investment, Gujarat Maritime Board will consider to enhance this period. The entrepreneurs should assure a minimum cargo handling from the said landing place. The party has to pay full wharfage charges to Gujarat Maritime Board for cargo undertaken on such structures. The Gujarat Maritime Board has already identified such sites and activities in the existing minor and intermediate ports. The privatization of these facilities will be done by open tender bids within one month.
With liberalization of Parallel Marketing of Petroleum products by Govt. of India, the demand for port facilities for handling LPG, Kerosene, HSD, other petroleum products and liquid chemicals have increased tremendously. Looking to the specialized facilities and high safety standards required for handling these commodities, the existing minor and intermediate ports are not found suitable to handle such cargoes. In the new port policy, specific new port locations have been identified to handle petroleum cargoes. Nevertheless, Gujarat Maritime Board has identified one location in one of the existing intermediate ports to extend facilities for handling these cargoes, by privatization.
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DEVELOPEMNT OF NEW PORT SITES
Gujarat Maritime Board has identified 10 "Green Field" sites for development as direct berthing deep water ports. These sites have been identified taking into consideration the availability of draft, general marine conditions, minimum burden on the existing infrastructure, proximity to the hinterland cargo and promotion of regional development concept. Looking to the location and generation of cargo, each port has been earmarked for specific commodities to facilitate the movement of cargo through the existing infrastructure and also to ensure the financial viability of each project. The following ports are identified and short details of draft condition, cargo and nature of the port are given below.
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Brief details of identified sites for development.
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DHOLERA
Dholera is situated on existing short route from Ahmedabad to Bhavnagar and is 30 kms. away from the nearest town of Dhandhuka. This port, in Malclon channel, can be developed for general cargo. At the suggested location, a draft of 10 mtrs. is available within a distance of 3 kms. from the off-take point on the shore - near village Jaswantpur. This will be an all weather direct berthing port for general cargo.
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MAROLI
This is a virgin site, north of Bombay, having favourable features for development as an all weather port with protective structure like breakwater. The development plan envisages the port facilities in 10 mtrs. depth at 3 kms. from the shore to handle industrial and general cargo, the major portion of the approach is running on high bank and shallow waters.
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VANSI-BORSI
This location is indentified for handling petroleum and liquid chemical cargo of immediate hinterland. it is suggested to provide adequate matching port facilities in 10 mtrs. depth at 5 kms. from the shore with break water arm.
The proposed site is 13 kms. from the nearest broad gauge railway link at Navsari and is 30 kms. south of industrial town of
Surat.
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HAZIRA
Magdalla (Surat), located on the bank of river Tapi, is an existing intermediate port handling general cargo. On the right bank of this river and near Hazira lighthouse, Mega Industrial Houses have established their own captive port facilities. On the western side of these facilities, and near Suvali point, a deep draft port is suggested. The berthing facility for industrial cargo will be provided in 15 mtrs. contour at a distance of 3 kms. from the shore. A protective structure in form of a breakwater will also be necessary.
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DAHEJ
Dahej, 42 kms. from the District Headquarters of Bharuch, is witnessing a massive industrialization with substantial capital investments. It is suggested to develop an all weather port for large ocean-going vessels at a location 2.0 kms. from the shore, where an adequate depth of 18 mtrs. is available. The port development envisages handling industrial cargo. Alternatively a 'lagoon' port is also possible with excavation on land and dredging of the channel for a 10 mtrs. deep
harbour.
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MITHIVIRDI
The site with a very favourable marine features, located 40 kms. south of Bhavnagar and 10 mtrs. north of the existing ship breaking yard at Alang, is suggested to be developed as an all weather port for steel and automobile exports. The port facilities will be provided in deeper elevation of 20 mtrs. available at an approximate distance of 3 kms. from the shore.
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SIMAR
Simar is 27 kms. south-west of existing minor port of Jafrabad and 90 kms. east of Veraval. The availability of draft at the location is quite favourable having running of 20 mtrs. contour, just at a distance of 1 kms. from the shore to accommodate ocean-going vessels of 1,00,000 DWT. This port is suggested for development to handle LNG, Coal and other fuel requirements for power generation to be located in the vicinity of the port. This site has a natural protection of "Diu" Island. Power can be "evacuated" or "displaced" by Power grid system catering to the rest of the country.
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POSITRA
Positra, situated near intermediate port of Okha, is at the entrance of Gulf of Kutch having natural protection from south-west monsoon conditions. It will consist of Positra-1, an exclusive modern container port at the historic Dwarka Beyt Island with 12 mtrs. draft. Positra-II will be a petroleum and coal port with a draft of 18 mtrs. The nearest railway broad gauge link is only 15 kms. from the port site.
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ROZI (BEDI)
The existing intermediate port of Bedi currently handles 2.5 million tones of cargo per annum by lighterage operations. It is proposed to develop an all weather direct berthing port near the anchorage to handle bulk carriers at a distance of 5 kms. from Rozi Pier at a depth of 15 mtrs. to be exclusively developed as an "Agriculture Port" with modern handling facilities.
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MUNDRA
Mundra, 70 kms. west of the major port of Kandla, is proposed for development as an all weather direct berthing port to handle general cargo. The location near Navinal Lighthouse hving a draft of 20 mtrs. at a distance of approximately 2.5 kms. is suggested for development of port facilities to accommodate large ocean going vessels of 40,000 tonnes. General cargo like salt, cement, minerals, food grains etc. can be handled at this port and it is the nearest location to Rajasthan.
In today's globalisation scenario, Dubai and Singapore have been developed as "Free Ports". Looking to the strategic Maritime location of Gujarat coast, one of the new port locations can ideally be developed as a "Free Port". Government of Gujarat will request Government of India to declare one of these port in Gujarat as "Free Port". Out of the identified 10 port locations, 4 ports will be developed by the State Government and 6 ports will be open for total private investment.
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Ports to be developed by Gujarat Maritime Board.
The following ports will be developed by Gujarat Maritime Board alongwith consortium of State Government public sectors and/or consortium of private sector companies.
1. Rozi (Bedi)
Agriculture Port
2. Positra
Container & Petroleum Port
3. Dahej
Industrial Port
4. Mundra
General Cargo Port
Gujarat Maritime Board will initiate a techno-economic feasibility study on these port locations and would undertake the construction of wharf/jetty/quay and its maintenance. The superstructures like handling facilities and on-shore facilities in the form of warehousing, tank farms etc. will be privatized. Preference will be given to State Government and Central Government organizations on a negotiable basis.
The remaining facilities for privatization will be done by inviting tender bids. An initial premium will be charged for the land and wharf facility and an annual lease rent would also be stipulated. The detailed terms and conditions for privatizing these services will be finalized by Gujarat Maritime Board.
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The ports to be developed by private sector.
The following ports are identified for exclusive investments by private sector.
1. Simar
Power Port
2. Mithivirdi
Steel and Automobile Port
3. Dholera
General Cargo Port
4. Hazira
Industrial Port
5. Vansi-Borsi
Petroleum & Liquid Chemical Port
6. Maroli
Industrial Port
The ports will be privatised through a global tender bid. Gujarat Maritime Board will do a preliminary techno-economic feasibility report of all these five locations except Dholera, through a global bid to facilitate prospective bidders. Dholera, being an ancient port and privatization bids were invited in the past, no techno-economic feasibility will be done for this location. Dholera port will be the first port to be opened up for privatisation by global tendering. For remaining locations based on the preliminary techno-economic study, global tenders will be invited for privatization. General guidelines are given below :
These port locations are to be given BOMT (Build, Operate, Maintain and Transfer) basis. The investment in infrastructure projects like ports being capital intensive, with higher gestation period compared to other sectors of investment, Government of Gujarat is very particular that the port projects taken up by private entrepreneurs should be profitable proposition to them. The viability of port project depends upon the location, the maritime conditions, scale of investment and the kind of cargo to be handled. The port project has to be assured at a reasonable rate of return after accounting for capital recovery and interest repayment. Hence, it is essential that each port project is evaluated based on an investment analysis; consisting of capital cost, revenue receipts, revenue expenditure and capital recovery. Gujarat Maritime Board will study the financing pattern adopted by the World Bank and the Asian development Bank and other Financial Institutions to evolve a comprehensive package.
Only the wharfage charges/waterfront charges will be as per the schedule decided by Gujarat Maritime Board. The promoters will be free to charge any other service charges with the prior approval of the Gujarat Maritime Board. After BOMT period. the ownership of the port and its assets will get transferred to Gujarat Maritime Board and they will examine to give it further on lease basis to the same promoter. The terms and conditions will be finalized at that time. The general guidelines for investment analysis and capital recovery for the port projects to determine BOMT period will be announced within 2 months.
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Privatization
