Vibrant Gujarat Global Investors¶ Summit 2011 Gujarat Maritime Board: Top 10 MoUs

Company/MoU Agency Adani HPPL Ltd Project Details Location Proposed Investment (Rs. Crore) 8000 Commodity Capacity (mmtpa) CapacityShipyard Project (DWT)

Employmen

Sterling Port Ltd

Shapoorji Pallonji Co. Ltd. GVK Power & Infrastructure Ltd.

Essar Bulk Terminals Ltd MPSEZ

Development of Bulk /General Cargo Terminal Subsequent Phase development of SEZlinked Port facilites Development of Greenfield port New Port Facilities, maritime City and private coal terminal and LNG terminal Expansion of existing 550 m deepwater Jetty Subsequent phase development Shipbuilding/repairing yard Complex Additional investment in development of Floating Storage and Regasification Unit (FSRU) facilities Additional Facilities at Vadinar and Tuna Extension of captive coal jetty and new port facilities Total

Hazira Dist. Surat Dahej, Dist.Bharuch Chhara, Dist. Junagadh Okhamadhi, Dist-jamnagar

Bulk/General Cargo Coal, POL & Container Coal Coal & LNG

80

1000

5400

50

1000

5000 7000

8 150.5

200 5000.

Hazira, Dist.Surat Mundra, of South Port Jodiya, DistJamnagar Dist-Amreli

4057 Container Dist.-Kutch

Bulk & Container & General Cargo General Cargo Shipbuilding LNG

44 60

4500 800

POL India Agencies Pvt. Ltd., SWAN Energy Ltd. & GPPL (GMB is not signatory to the MoU) Kandla Port Turst Essar Bulk Terminals (Salaya) LTD

Dist.-Kuttch 3000 4500

250000

2500

13

100

Kandla Salaya, Distjamnagar

3710 4043

Dry Cargo & Crude Oil Coal & Container

59

4500

49210

464.5

250000

19600

Vibrant Gujarat Global Investors¶ Summit 2011 Gujarat Maritime Board: Top 10 MoUs
Sr. No Company/MoU Agency Project Details Location Proposed Investment (Rs crore) Commodity Capa city (mmt pa) Capacity Shipyard projects (DWT)

11

Mundra Port and SEZ

12

Shiva Shipbuilders Pvt. Ltd. Maritime Infrastructure Lanco Infratech Ltd. OPG Power & Infrastructure Ltd. Gujarat Pipavav Pfcccc ort Ltd. GoodEarth Shipbuilding Pvt. Ltd. Universal Success EL Ltd.

Subsequent phase development of North port, in Bocha creek, Mundra. Shipbuilding yard along Gujarat Coast Shiprepair yard at Ghogha Bhavnagar Port facilities along Gujarat coast Coal jetty along the Gujarat coast Expansion of facilties at Port Pipavav Shipyard project, Old Port Bhavnagar Development of shipbuilding yard for post-Panmax & Aframax vessel along the Gujarat coast Development of Shipbuilding Park along Gujarat coast Development of shipbuilding/repair Dahej Phasewise Expansion of New Shipyard at Suva Port facilities along Gujarat coast Shipbuilding, shiprepair and fabrications, MSPDahej Expansion of facilties at Jageshwar shipyard, Jageshwar Setting up a SPM and COT by HPCL Mittal Pipelines Ltd. Shipyard/Offshore Fabrication yard,Dahej SEZ

Mundra,

2500

Container Dist-Kuttch

30 & Gen eral 250000

Not Specified

2500

Shipyard

13

14 15

Ghogha, DistBhavnagar Not Specified Not Specified

2500

Shipyard

2000 2000

Coal Coal

15

16

Pipavav, Dist.-Amreli West of Gulf of Khambat of Khambat Not Specified

1700

17

1625

Container, Bulk & Liquid Shipyard

30

50000

18

1500

Shipyard

250000

19

20

Technopolis Township Pvt.Ltd. Ranjit Buildcon Ltd. ABG Shipyards Ltd. Indian Potash Ltd. Global Marine Cambay Services P. Ltd. ABG Shipyard Ltd. MPSEZ

Not Specified East of Gulf of Khambat East of Gulf of Khambat Not Specified East of Gulf of Khambat

1500

Shipyard

50000

1500

Shipyard

50000

21

2500

Shipyard

50000

22 23

1200 1200

Fertiliser Shipyard

10 70000

24

East of Gulf of Khambat North of Gulf of Kuttch East of Gulf of Khambat

1200

Shipyard

50000

25

1100

Crude oil

5

26

Dahej Offshore Infrastructure SEZ Ltd.

1000

Shipyard

5000

27

Rail Vikas Nigam Ltd.

28

Adani Petronet (Dahej Port Pvt. Ltd.) Ltd. Bajaj Hindustan Ltd. Jai Hind

Last mile port railway connectivity at Nargol (24 km ), Mahuva (8.5 km), Chhara (48 km) Expansion of SCPT at Dahej New port facilities for coal and sugar ODC Cargo and Offshore facility

Not Specified

991

Railway

East of Gulf of Khambat Not Specified East of Gulf of Khambat

900

Bulk cargo

12

29 30

800 800

Coal & Sugar ODC Cargo

15 0.3

Total

31016

117. 3

825000

he Fourth µVibrant Gujarat Global Investors¶ Summit¶ (VGGIS), 2009, which concluded on January 13, has brought out the fact that industry ² Indian and global ² has begun to see the 1,600-km-long coastline of the State, situated off the Arabian Gulf, as the new hub of developmental activity. If these promised investments come through as planned, Gujarat may well emerge as an important shipping destination of South Asia, a la Singapore and Hong Kong. For, the coastline, which is visited by 4,800 ships and 1,000 sailing vessels annually, has attracted investment proposals worth Rs 3 lakh crore in the two-day Summit. They include Rs 85,750 crore for port projects and Rs 20,355 crore for shipbuilding projects. Other projects along the Gujarat coast include the Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR), which may attract Rs 30,000 crore, besides Rs 40,000 crore worth of investments proposed by the Hindustan Construction Company (HCC) for its waterfront city at Dholera (Gulf of Cambay), cement projects (Rs 35,000 crore) and heavy engineering projects (Rs 8,000 crore). That the port sector in Gujarat may have come of age became apparent with the proposed investments increasing from Rs 13,400 crore during VGGIS-2007 to Rs 85,750 crore. The new proposals include development of four green-field ports (Rs 21,700 crore), expansion of the existing ports at Mundra, Hazira and Pipavav (Rs 20,650 crore) and development of private port terminals and jetties at various locations. After the VGGIS-2007, several companies were short-listed for formation of Special Purpose Vehicles (SPVs) to undertake dredging with an investment of $75 million. Expansion of captive jetties and installation of Single-Buoy Mooring (SBM) were under way and work on proposals received for establishment of captive jetties for cement plants, at a cost of Rs 500 crore ($110 million) was progressing.

A Vehicle Traffic Monitoring System in the Gulf of Cambay at an estimated cost of Rs 310 crore was also proposed. Port-related activity Gujarat has 48 ports of which 42 are functional; they include one major port (Kandla) and 41 non-major. The importance of Gujarat ports in India¶s traffic performance could be gauged by the fact that its cargo movement increased from 3.18 million tonnes in 1982-83 to 147 million tonnes in 2007-08, making the State rank first in terms of cargo amongst all Indian ports. Gujarat was the first State in India to open the ports to private sector, with Pipavav being the first of them. It is also the first to have a chemical terminal and facility to handle liquid cargo. The State also has one of the world¶s largest ship-recycling yards at Alang near Bhavnagar and is home to two of India¶s three LNG terminals. Among the newly emerging ports are the 14 private sector ports at Mundra, Sikka, Positra, Sutrapada, Simar, Pipavav, Mahuva, Mithivirdi, Dholera, Khambhat, Dahej, Hazira, Vansi Borsi and Maroli. Gujarat Maritime Board (GMB), the State¶s nodal agency for ports, runs 12 ports while four ports are being developed in joint sector. According to GMB sources, Gujarat handled a majority share of 79.84 per cent traffic in India¶s minor and intermediate ports in 2006-07 and 71.5 per cent of the total cargo traffic in India¶s non-major ports. The State also handled 11.5 per cent of the total cargo traffic in the country¶s major ports. The total port capacity of Gujarat grew at 46.6 per cent, from 135 million tonnes in 2001 to 198 million tonnes in 2007-08. Shipbuilding industry With so much activity happening along the coastline, ship-building industry was the natural extension. On this front, MoUs worth Rs 20,355 crore were inked for proposed shipyards at 14 locations by major players such as Port of Rotterdam, ABG Shipyard, Jindal Shipyard, GVR Infrastructure, Reliance and Essar Groups and Shapoorji Pallonji. The new private sector shipbuilding entities and their proposed capacities in Gujarat are: ABG Shipyard Ltd (1.20 lakh deadweight tonnage, or DWT), Pipavav Shipyard Ltd (3 lakh DWT) and L&T Hazira (10,000 DWT). Besides, Alcock Ashdown (Gujarat) Ltd, a State Government Undertaking, which turned around two years ago and postponed proposed disinvestment, has acquired prestigious clientele in India and abroad, including the Indian Navy. New projects are planned to be accommodated in a cluster of shipyards called µMarine Shipbuilding Parks¶ with common infrastructure and all ancillary facilities.

Mega marine shipyards are proposed to be built at Dahej and in the Gulf of Kutch. Mundra, too, is poised to emerge as a significant port for shipbuilding activity. Gujarat is also witnessing port-led Special Economic Zone (SEZ) development activities at an accelerated pace. There are six multi-product SEZs proposed near Gujarat ports: Kandla Port SEZ (400 hectare), Mundra SEZ (2,733 hectare), Dahej SEZ (1,718 hectare), Sterling (1,263 hectare), Essar Hazira SEZ (1,263 hectare) and Reliance SEZ (1,764 hectares). Growth industries Key industries for development at these SEZs are light and heavy engineering, textiles, chemicals and pharmaceuticals, logistics, petroleum refinery, downstream processing industries, gems and jewellery, glass and ceramic, agro and food processing, flat steel products, wide-steel plates, EPC and fabrication, saw pipes and polypropylene plant. With such ambitious plans lined up for the port sector in Gujarat, the large industrial base of the State is looking forward to reap its benefits. The success of the plans will also depend on the availability of skilled manpower, which the government is planning to ensure by establishing a Maritime Training Institute in collaboration with private companies and institutions.

Sanas Cranes Pvt Ltd (SCPL), a leading crane hiring company from Pune and formerly known as Sanas Crane Service, is into crane hiring sector with a fleet of 23 equipment in the range of 8 tonnes to 125 tonnes capacity. Most of SCPL's cranes are hydraulic cranes with a variety of lattice boom cranes and equipment like man-lift. To maintain this equipment SCPL has its own set-up which includes mechanic staff, adequate inventory, vendors and the maintenance area of 20,000 sq. ft in Ambegoan near Pune- Bengaluru highway. SCPL is into this business from 1996 and till today has got adequate customer-base to their satisfaction. SCPL is presently working in four states viz. Maharashtra, Gujarat, Karnataka and Goa. The company had also worked in Madhya Pradesh and Bihar. Some of the client base includes Reliance Engineering Associates from Jamnagar; Tata Motors from Pimpri in Pune; Renuka Sugars in Athani in Karnataka; L&T ECC Division in Nagar; China Petrolium Perue in Shikrapur and Chakan near Pune; and B.G.Shirke Construction in Kagal near Kolhapur. SCPL has a local customer base of more than 500 customers. The main focus of SCPL lies in providing services as per the requirement of the customers and since last twelve years the company is doing it professionally. Infrastructure sector offers tremendous opportunity for growth of business and operations. Mobile crane business is capital intensive, complex and fiercely competitive. It calls for agility, a diversed and balanced fleet, a good grasp and command over the market. Sector growth In the last five years, the sector has shown a steady rise of 20 per cent y-o-y growth rate. With multicrore projects underway and announced all over India, there has been steady increase in the crane hiring segment. The mobile crane hiring business has been quite eventful and reassuring in the last five years. Policy makers are striving to take and implement appropriate measures that will improve the infrastructural facilities across various segments. Mobile crane business is very much tuned into the incremental investments and development in construction, roads, airports, power, cement, & windmill segments. Future prospects & scope Crane hiring has a good market in India with growth in infrastructure, new projects announced across the country in construction, heavy engineering, and industrial projects. There is predicted 20 per cent yo- y growth rate for the earth moving equipment industry for the next 10 years.

SCPL's scope of expansion The company has been set up with the objective of building a vibrant, professional and forward looking organisation that will offer earth moving, material handling, and other solutions to the growing infrastructure sector. SCPL has a growing modern fleet of heavy duty mobile cranes incorporating the contemporary technology and striving towards becoming one of the top 10 crane hiring companies by 2015. SCPL has prepared a long term business plan for the next six years, essentially aiming at: Re-evaluation and restructuring of the existing fleet strength; redeployment of the existing fleet strength; acquire new mobile cranes that will execute complex jobs with higher capacity; upgradation of the technology configuration of fleet strength; professionalisation of the whole organisation; attain higher level of IT support. The next 3-5 years would see substantial capital expenditure for acquisition of fresh tonnage. The company proposes to spend over Rs 10 crore on fleet expansion. This will take the total fleet strength from 22 to 30. Most of the capex would finance acquisition of mobile cranes in 80 tonnes to 200 tonnes range and include all terrain and lattice mobile cranes, which will mark SCPL's entry in the less crowded complex projects and higher margin segment. Fleet deployment utilisation, revenue generation and monitoring of major operating costs which is now managed with adequate software systems support, more sophisticated support system would be adopted in the coming years ahead. The company also plans to venture into the more profitable and noncrowed sector, the crawler cranes, this sector is massive and scope of expansion is more. The crawler crane has a wide range of multifunctional jib system, which gives it an edge over the other cranes; also it can be used where the hydraulic cranes have limitation. The crawlers can efficiently work in muddy water logged areas, in rainy season also, it can work in difficult conditions and round the calendar. Also we see that the maintenance part of the crawler cranes is less, as the boom of these cranes is mechanical. As many of the functions are mechanical based involvement of hydraulics is less. It is not the conventional truck mounted crane with tyres, but with the crawler chains, making it easy to negate in difficult areas