JN Ports role in Development of Maharashtra

1
JN Ports role in Development of Maharashtra
Destination Maharashtra
Business Seminar Infrastructure in Maharashtra
S. S. Hussain, IAS Chairman, Jawaharlal Nehru
Port Trust Navi Mumbai
MMRDA Ground, Bandra Kurla Complex, Mumbai Jan.
9, 2008
2
Sections

• Economy Overview
• Indian Port Sector
• Sea Ports of Maharashtra
• Mumbai region Contribution in Countrys
  Development
• Maharashtra Sea Ports Capacity augmentation and
  Investment Opportunities
• About JN Port
• Developments through Port based industries

3
INDIAN ECONOMY GLOBAL FORCE

• According to Goldman Sachs, BRICs (Brazil,
  Russia, India, China) economies together could be
  larger than G-6 in less than 40 years. (G-6
  France, Germany, Italy, Poland, Spain U.K.)
• Indias economy could be larger than G-6 in next
  30 years.
• World Economic Forums Global
  Competitiveness Index (GCI) gives India higher
  ranking for 2006-07 among BRIC countries and
  place India at 43rd position, well ahead of
  Brazil (66), Russia(62) and China (54).
• Worlds 4th largest economy in terms of
  Purchasing Power Parity (PPP) next only to
  United States, Japan and China
• GDP growth 9.4 during year 2006-07 (SourceCSO)
• Foreign Direct Investment (FDI) 2006-07 US 15
  billion. FDI in India jumped 3 fold as compare to
  previous year 5.5 US billion
• India has emerged as one of the most attractive
  investment destination in the World.

4
Indian Port Sector

• India has an extensive coastline of 7,500 Km.
  EXIM Trade of India passes through sea ports 95
  by volume and 70 by value.
• It has 12 Major Ports, 6 each on East and West
  Coast.
• India has 187 Non-Major Ports, which are under
  administrative ambit of their respective State
  Governments. Non-Major Ports currently handles
  around 27 of the total port traffic.
• Traffic at Major Ports increasing at the rate of
  10 annually for last 5 years
• Port Development in India has been closely
  associated with the growth of the Countrys
  economy.
• Rapid growth in port sector with private sector
  participation is taking place.
• Model Concession Agreement (MCA) has been
  finalized by Cabinet, GOI.

5
Current Trends.

• Under the global liberalization, consumerism is
  increasing by leaps and bounds, at the same time
  consumers are expecting best quality products at
  the best price.
• This has prompted multinationals/manufacturers to
  find suitable site which will have the following
  advantages
• Availability of qualified technical work force
• Low capital cost
• Minimum logistic cost
• Hence multinationals predominantly changing over
  to consolidated manufacturing facility over
  multiple manufacturing units to supply products
  globally.

6
SEA PORTS OF MAHARASHTRA

• Maharashtra has 720 Kms of sea coast
• 2 Major Ports - Mumbai and JNPT
• 50 Non-Major Ports
• Priority to 7 sites for developments of Ports
• These are Vadhavan, Dighi, Dabhol, Jaigad,
  Ganeshpule, Redi and Vijaydurg

7
Requirement of Sea Ports..

• Unless there is logistic chain available for
  global supply, Industrialization will not
  materialize.
• As 95 volume of trade is through Sea Ports, Sea
  Ports became a vital link for development of the
  area.
• To boost the economy, SEZ will be main drivers of
  EXIM Trade
• Captive Terminals currently under operation
• Panvel (Ulwa-Belapur) Gujrat Ambuja Cement Ltd
  for bulk cement
• Dharamtar Ispat Industries Ltd. for Iron Ore,
  Clinker, Coke/Coal, Sponge Iron
• Revdanda Vikram Ispat Ltd. for Iron
  Ore/Pellets/fine, Hot Bracketed Iron, Direct
  Reduced Iron
• Ratnagiri (Pawas Ranpar) Finolex Industries
  Co. Ltd. For Etheylene-di-chloride, LPG

8
MAJOR PORTS CONTAINER TRAFFIC AND SHARE OF
MUMBAI REIGON
In 000 TEUs
9
NON - MAJOR PORTS PROPOSED CAPACITY ADDITION
INVESTMENT REQUIREMENT
10
About JN PORT

• The Port was planned with a view to decongest
  Mumbai and serve as a Hub Port for this region
• DPR finalised in 1981.
• Jawaharlal Nehru Port Trust (earlier known as
  Nhava Sheva Port Trust) formed in 1982.
• Construction activities commenced in 1984.
• Total Investment Rs. 11,090 million
• Total Land Area 2,584 Hectares
• Port commissioned for commercial operations on
  26th May
  1989

11
JAWAHARLAL NEHRU PORT
PROPOSED 330 M. EXTENSION OF BERTH
MASTER PLAN
NSICT
JNP CT
SHALLOW BERTH
GTIPL
BPCL JETTY
FOURTH CONTAINER TERMINAL
MARINE CHEMICAL TERMINAL
PROPOSED
12
JN Port Cargo handling facilities
13
CFSs IN AND AROUND JN PORT IN OPERATION
14
CFSs BEING SET UP IN AND AROUND JN PORT
15
CONTAINER TRAFFIC PROJECTIONS
Traffic in Million TEUs
Source KPMG Report
16
JN Port EXISTING FUTURE CAPACITY UP TO 2014-15
17
Port based Industries Industrial Parks and
Centres

• SEZ
• Agro Export Zones
• Fisheries and Sea Food Industries
• Development of Ship Building / Ship Repairing
  Industry

18
Advantages of Special Economic Zone (SEZ)

• Development of Infrastructure facilities
• Industrialization growth
• Reduce logistic cost
• Source of local raw material
• Development of interior area
• Generation of additional economic activity
• Promotion of investment from domestic and
  foreign sources
• Promotion of exports of goods and services
• Creation of employment opportunities
• Improvement in literacy
• Improvement in standard of living

19
Development through Ports and SEZ

• Core Demand / Dominant Industry Sectors which
  will get established
• Ship Building Activity
• Large Steel Metal Fabrication Industry
• Heavy Engineering
• International Textile Apparel
• Power Generation Hub
• Chemical Industry
• IT Industry
• Gem Jewelry Industry
• Pharmaceutical Industry

20
Developments through Ports and SEZs

• Development of Land
• Road and Rail network
• Power supply
• Water supply
• Telecom and Infocom network

Benefits from Sea Ports and SEZs

• Employment Direct and indirect employment
  generation
• Capital formation Investment by developers and
  various industrial units
• Boost to Economy By export and FDI

21
Navi Mumbais SEZ (Dronagiri)

• An ambitious Rs. 50 billion Duty Free SEZ at Port
  based Township with targeted goal of attracting
  8 billion FDI in next 10 years.
• Ideally located close to JN Port, the Countrys
  most high-tech and modern Major Sea Port, to
  provide high quality and world class
  infrastructure designed to render globally
  competitive services/products.

22
JN PORT SUPPORTS MAHARASHTRA

• Having ranked 25th among the TOP World Container
  Ports in the year 2006.
• Handled 3.89 Million TEUs during the calendar
  year 2007.
• Played a vital role in the development of
  Maharashtra by handling about 60 of Indias
  Container Traffic.
• Created opportunity for socio-economic
  development in the region.
• Up-liftment of Maharashtras image on world map.
• Created investment opportunities in
  infrastructure and service fields.
• Opened avenues for FDI.

23
Sum up .

• In the present world scenario, major developments
  are centered around Sea Ports, and, no doubt,
  maximum Sea Ports are in the developed countries.
• For Maharashtra to retain its prominence as a
  Maritime State, more Sea Ports with state-of-
  the-art infrastructure / facilities needed on its
  long coastline.
• JN Port promises to continue its role in
  development of Maharashtra.

24
Thank You
Jawaharlal Nehru Port Trust ISO Certified
ISPS Compliant Website www.jnport.gov.in