DP World India

Focus on India
 Agenda

1. India overview
a. GDP
b. Container traffic
c. Port capacity & utilization
d. Containerization outlook
e. NMDP
f. Tariff environment
g. Key regulatory initiatives
h. DMIC
2. DP World India overview
a. Equipment
b. Infrastructure
c. Ancillary services
d. Responsible Business Practices
e. Awards & recognition
f. QHSE
g. HR initiatives
h. Customers
i. Key statistics
j. Expansion plans
k. Concession status
3. Summary
India overview
 India Is World’s Fastest Growing Economy…

India is the world‟s second largest country by population size and is currently the fourth largest economy measured
by GDP in PPP terms, expected to outgrow the globally top 12 largest economies over the next 10 years.
Population (m) – Second and Growing GDP (Nominal PPP GDP, US$ trillion) – Leading in Growth
2010E-20E
2010E-20E
CAGR
CAGR
1,407 0.5%
China 5.5% 24.8
1,339 United States
14.5
1,362 1.4%
India 10.1% 26.8
1,184 China
10.3
337 0.8%
United States 3.7% 6.2
310 Japan
4.3
207 0.7%
Brazil 10.3% 11.0
193 India
4.1
136 -0.4%
Russia 4.8% 4.6
142 Germany
2.9
122 -0.4%
Japan 6.2% 4.1
127 Russia
2.2
83 0.0%
Germany 7.3% 4.4
83 Brazil
2.2
67 0.7%
United Kingdom 4.6% 3.4
62 United Kingdom
2.2
65 0.4%
France 4.5% 3.3
63 France
2.1
60 -0.1%
Italy 3.7% 2.6
60 Italy
1.8
49 0.6%
Spain 4.4% 2.2
46 Spain
1.4
26 1.4%
Australia 5.5% 2.3
22 Canada
1.3
0 200 400 600 800 1,000 1,200 1,400 1,600
30 25 20 15 10 5 0
2010E 2020E
Source: EIU. 2010E 2020E
 … with a Strongly Growing Port Infrastructure
India has an extensive coastline populated with a growing network of major and non major ports. Major ports handle
the majority of port traffic, although non major ports are increasing their share. Throughput demand is outgrowing
capacity additions and will require investments into port infrastructure in the future.
Port Infrastructure – Increasing Private Participation Continental India Major Ports – Balanced Network
• 13 major and c. 200 minor and intermediate ports
– Major ports are managed by Port Trusts regulated by the
central government (except Ennore Port, which is corporatized)
– Non major ports are regulated by the state government and
many of these ports are private or captive ports
Kandla (78.0)
• Ports handle c. 95% of the total volume and 70% of the total
value of India's cargo(1)
• Major ports handle 70% of traffic, but share of minor ports is Calcutta (67.0)
increasing
– Historically, non major ports have been feeder ports, playing a Mumbai (49.7) Paradip (76.5)
supporting role to the major ports
– Major ports are already saturated in terms of capacity JNPT (58.0)
Vishakhapatnam (62.2)
(1) Source: India‟s Ministry of Shipping 2009-10 Annual Report.
Marmagoa (37.1)
Split of Traffic – Increasing Share of Minor Ports Ennore (16.0)
(Share in %) 100% Chennai (69.3)
12
24 25 25 25 26 26 29 30 28 32
80% Mangalore (44.2)
60%
88 Cochin (29.9)
40% 76 75 75 75 74 74 72
71 70 68 Tuticorin (22.8)
20%

0%
1997-98

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Port Name (Capacity in mnte)

Major Ports Minor Ports

Source: Citi Research, Crisil Research 2010 Report.
 Container Traffic Growth Outpacing
Economic Growth
Container traffic growth has picked up strongly since 2000 and has grown on average at a 1.6x multiple of foreign
trade and a 2.6x multiple of GDP. Recent surge in container throughput has lead to an increase in utilisation rates to
come close to capacity and will require further new building and expansion in the future.
Container Growth – Rapid Growth Straining Capacity India GDP, Trade and Container Traffic – Multiplier Effect
(GDP = Real GDP in US$, Trade = Exports FOB + Imports CIF in US$, Container Traffic = TEUs)
• Container traffic has grown at a multiple of GDP (Rebased to 100 in 1995)
– 2000-2010 GDP CAGR was 7.5% 1,000
– 2000-2010 trade CAGR was12.1%, which represents a 1.6x 800
multiple of GDP growth
600
– 2000-2010 container traffic CAGR was 19.4%, supposing a
1.60x multiple on trade growth and 2.6x multiple on GDP 400
growth
200
• Government is incentivising construction of new port capacity
– XI Five Year Plan initial goal to increase major ports capacity to -
1,000 mnte by 2011-2012 1996 1998 2000 2002 2004 2006 2008 2010
– Current lower expectations of reaching 743 mnte by March
2012 E Real GDP Trade Container Traffic
Source: EIU.
– Special emphasis on increasing road and rail connectivity
Throughput and Capacity in South Asia Major Indian Ports Capacity Utilisation
(Throughput and capacity in „000 TEUs) (Capacity Utilisation in % of Tonnes)
35 90% 140%
120%
30 100%
85%
25 80%
60%
20 80%
40%
20%
15 75% 0%

JNPT
Mumbai

Mormugao

TOTAL
Chennai

Ennore
Mangalore

Cochin

Paradip

Kolkata
Tuticorin

Visakhapatnam
Kandla

10
70%

New
5
0 65%
2009 2010 2011 2012 2013 2014 2015

Thorughput Capacity Utilisation 2009 2010

Source: Drewry 2010 Annual Review. South Asia: Bangladesh, India, Pakistan, Sri Lanka. Source: India‟s Ministry of Shipping, India Ports Association.
 GDP Forecasted to Maintain Growth
Momentum…
The Indian economy is expected to grow at near double digit rates in the future. The services sector is expected to
continue being the key driver of economic activity.
India Economic Growth – Amongst the World‟s Highest GDP Growth Forecast – India‟s Growth is Here to Stay
• India is expected to lead the way in GDP growth in the near future (Real GDP in US$)
12%
– Similar growth rate as China and significantly higher than the
currently booming Brazilian economy 10%

– Europe and US clearly lagging behind 8%

• Population is expected to grow at a 1.5% until 2014 6%
• Industrial production expected to grow slightly faster than the overall
4%
GDP
2%
– Slight expected increase of manufacturing share in a services
dominated economy with decreasing relevance of agriculture 0%
• Net importer with rising demand for containerised finished goods 2010 2011 2012 2013 2014
due to strong growth in disposable income India China Brazil US EU27
Source: EIU.

Industrial Production Forecast– Just Behind China India GDP Breakdown – Growing Weight of Manufacturing
(Manufacturing Index, Rebased to 2009)

CAGR
2007 2010 2014
India 8.8% 8.8%
13.5% 11.1%
China 13.0%
Brazil 5.9% 14%
US 2.8% 24.9%
EU27 3.0% 48.7% 24.9%
24.2% 49.6%
48% 51.5%
24%

13.5% 14.4%
14% 14.8%

2009 2010 2011 2012 2013 2014

India China Brazil US EU27 Agriculture Industry Manufacturing Services

Source: EIU.
Source: EIU.
 …Generating Increasing Trade Activity…
Foreign trade is expected to continue growing at above 15% until 2014 with imports outweighing exports. Petrol
products still dominate India‟s trade but demand for containerisable goods is rising.

India Trade Growth - Recovery and Beyond Trade Forecast – High Double Digit Growth
(Exports FOB + Imports CIF in US$, Rebased to 2009 )
• Exports have rebounded in many Asian countries while
domestic demand remains resilient CAGR
India 15.4%
• Less dependant on exports than the other BRICs, and more
China 16.7%
dependant on domestic consumption (driven by purchases Brazil 16.5%
of consumer durables and automobiles) US 10.8%
– Higher industrial output will increase the imports of raw EU27 6.1%

materials and exports of finished goods

– Raising disposable income will increase imports of goods
• Product mix will experience growth in containerisable
2009 2010 2011 2012 2013 2014
products, such as engineering goods, electronic goods and
machinery Source: EIU. India China Brazil US EU27

India Trade Industry Breakdown – More Containerisables India Trade Origin/Destination Breakdown
2005 15%
2009 2005 5% 2009
$103.1bn $218.6bn $103.1bn 11% $218.6bn
11% 14% 6% 5%
POL 11% China
35% 16%
37% 37% Engineering Goods US
21% 12%
23% Textile
12% UAE
23% 8%
Export

Gems & Jew ellery

Export 3% 3% Hong Kong
66% 4%
10% 69%
Other 69% Other
15% 16% 12%
14% 6%
$149.2bn
14% 31%
13% $340.3bn POL $149.2bn $340.3bn China
5%
7% 6%
Electronic Goods 10% US
42% 29% 5%
29% 3% Australia
Gold & Silver 6%
45% 1% Saudi Arabia
47% Machinery 5%
Import

Import

Other 5% Other
9% 10% 9% 74%
74%
8%7% 8%9% 9% 83%
8%
Source: EIU. Source: EIU.
 …and Translating into Sustained
Container Traffic Growth
Recent container throughput growth will continue into the future thanks to the combination of economic growth and
key favourable macro trends.

India Container Throughput – Backed by Macro South Asia Container Throughput Forecast
(„000 TEUs)
Trends 22,823
24,740
21,004
• Container growth in India to be driven by 17,727
19,301
15,959
– Considerable upside in containerisation levels to catch up with
fully developed economies
13.4%
– Expected over 25% growth in textiles over the next 5 years after 11.1%
Multi Fibre Agreement 8.9% 8.8% 8.7% 8.4%
– Expected decrease in rail freight rates after industry liberalisation
– High growth in auto component export to continue in the future
2010 2011 2012 2013 2014 2015
• Emergence of larger size vessels and requirement of deeper
droughts at ports Volume Grow th
• Growth in intermodal logistics and improved infrastructure
Source: Drewry forecast for South Asia region including: Bangladesh, India, Pakistan, Sri Lanka.

Private Consumption per Head Forecast – Catching Cargomix at Indian Ports – Upside for Containerisation
(% of Total Tonnes)
Up
(US$, Rebased to 2009 ) CAGR
India 11.7% 19.1% 18.2%
35,000 China 17.0%
Brazil 9.4% 13.8% 13.3%
30,000
US 2.6%
25,000 EU27 -0.2% 19.9% 17.7%
20,000
15,000 33.2% 70%
33.0%
10,000
5,000
14.3% 17.6%
0
2009 Real 2009 2010 2011 2012 2013 2014 2005 2009 Developed Economies
US$
India China Brazil US EU27 Cointainer POL Iron Ore Coal Other
Source: EIU. Source: IPA.
 NMDP

• The National Maritime Development Programme (NMDP) envisages large scale

planned investments, but its success depends on effective private sector
partnership
• Launched in 2005 with a total proposed investment of US $ 20.9 billion (INR
1,003 billion) covering 387 projects by FY12
• Out of the 251 port projects that were to be completed only 50 projects have
been completed as of March 2010

Source: Ministry of Shipping, EY report

 Tariff environment

• Tariff Authority for Major Ports (TAMP)

– Set up under Major Port Trust Act, 1963
– Regulatory authority
– 12 major ports fall under TAMP, 1 is corporatized

• Non major ports (state ports)

– 187 non major ports in India
– 50 active
– Governed by state maritime policies
– Freedom to set their own tariffs
 Key regulatory initiatives

• Draft Coastal policy by MoS

• The MoS has announced its plans to create the New Perspective Plan (NPP) for
the country‟s maritime sector up to 2020
• Corporatization of major ports
• Electronic Data Interchange (EDI)
- “e-trade” project to centralize web-based port community system

• Radiation monitoring portals in all major ports by 2012

Source: EY report, Maritime Gateway magazine

 Dedicated Freight Corridor (DFC)

• Currently, eastern & western corridors are

highly saturated with line capacity LUDHIANA
utilization varying between 115% and DELHI

150%
KOLKATA
• 3,300 km freight only network
MUMBAI
• High speed trains ~ 100 km/hr VIJAYAWADA
VASCO Sanctioned
• Heavier axle load upto 15,000 tons CHENNAI projects
Unsanctioned
projects
13
HARYAN PIRTHALA
REWARI

A REWARI
NIM KA THANA

UTTAR
RAJAST
RINGAS

PHULE PHULER PRADESH

PAKISTA
HAN
MARWAR
SENDRA

MARWAR
RA
AJMER
A
Eastern corridor timeline
N SIROHI

PALANPU
R
ABU RD.
PALANPUR • Phase – I commissioning of Ludhiana to Kanpur
MAHESAN MAHESANA

A
SANAD AHMADABAD

MADHYA
and Sonnagar to Mughalsarai by March 2016
VADODRA
MAKARPU
PRADESH
GUJRAT
RA
•
BHARUCH
SANJALI
SURAT GOTHANG Full commissioning of Ludhiana to Dankuni
VALSAD
AM
LEGEND
ARABIA
SANJAN
DAHANU
MAHARA
EXISTING LINE
DFC LINE (PARALLEL)
DFC LINE(DETOUR)
DFC JUNCTION STNS.
March 2017
N SEA SHTRA
EXISTING STNS.
VAS
AI PANVEL VASAI
JNPT

Western corridor timeline

• Phase – I commissioning of Rewari to
Vadodara by March 2016
• Full commissioning of J.N. Port to Dadri by
March 2017
 DMIC

• Delhi-Mumbai Industrial Corridor is a mega

infra-structure project of USD 90 billion with
the financial & technical aids from Japan,
covering an overall length of 1483 KMs
between Delhi and Mumbai
• Nine mega industrial zones of 250 sq km each
• High speed freight line
• 3 ports, 6 airports
• 4000 MW power plant
• Six lane expressway
• Logistics parks

Source: www.delhimumbaiindustrialcorridor.com
 Summary

• Foreign trade is expected to continue growing at above 15% until 2014 with
imports outweighing exports
• Demand for containerization is rising
• Capacity is constrained putting pressure for new developments and better
productivity
• Many government initiatives to make ports more attractive as an investment
• Support infrastructure is growing
• DP World‟s presence throughout India
• Focus on containers
• Presence in the Intermodal business and ancillary services
• Active participation in new projects

DP World is in a unique position to

capitalize on India‟s growth projections
DP World India overview
 DP World India

• First privatized container terminal in India

– Nhava Sheva at JNPT
Mumbai, Maharashtra

Delhi (CRRS)
• State of the art facility at the alternative
Mundra
gateway to India at Mundra, Gujarat
including CFS facility
• Successful takeover of brown field project
Nhava Sheva
Kulpi at Chennai including CFS facility
• Container Rail Road Services connecting
Vizag
the hinterland to ports via trains
Chennai • Partnership in Visakhapatnam on the
Cochin/Vallarpadam East coast of India
• International Transshipment hub
(Vallarpadam) at Cochin: our latest
offering to the trade
• New development in Kulpi, West Bengal

With the largest portfolio in the country, DP World supports 47% of India’s container trade
 State of the art equipment

Rail Mounted Gantry Crane 5

Quay Crane 29

Rubber Tyre Gantry Crane 94

Empty Container Handler 5

Rakes 7

Reach Stacker 12

Mobile Harbour Cranes 4

 Excellent infrastructure

Nhava Sheva Mundra

Quay length (meters) 600 Quay length (meters) 632
Berths 2 Cochin (RGCT) Berths 3
Capacity (million TEU)* 1.5 Quay length (meters) 540 Capacity (million TEU)* 0.9
Depth alongside (meters) 12.5 Berths 3 Depth alongside (meters) 14.5
Terminal area (hectares) 29 Capacity (million TEU)* 0.5 Terminal area (hectares) 25
Depth alongside (meters) 12.5
Terminal area (hectares) 9

Cochin (Vallarpadam)
Quay length (meters) 605
Chennai Visakhapatnam#
Berths 2
Quay length (meters) 885 Quay length (meters) 450
Capacity (million TEU)* 1.0
Berths 4 Berths 2
Depth alongside (meters) 14.5
Capacity (million TEU)* 1.5 Capacity (million TEU)* 0.3
Terminal area (hectares) 65
Depth alongside (meters) 13.4 Depth alongside (meters) 16.5
Terminal area (hectares) 21.1 Terminal area (hectares) 24
# 26% partnership

*Capacity data sourced to Drewry Global Container Terminal Operators 2010

 Beyond the gate initiatives

DP World Intermodal, also known as Container Ludhiana

Rail Road Services Daurai

Delhi

– 7 rakes Mundra

–
Mumbai
Connecting the hinterland to the ports

Container Freight Station (CFS)

– Chennai
– Mundra
 Responsible Business Practices

Township at Mundra
• State of the art township
• 360 families stay here
• Latest amenities like in-house doctor,
automatic bottling and filtration plant
for water, club house, movie facilities,
bus facilities, etc.

Phunde school
NSICT adopted the Veer Wajekar ASC College and T.H. Wajekar
School, in Phunde Village
• Rebuilding and refurbishing of the school and college
• A new school building with 25 class rooms, a computer hall, library
and staff office has also been added

Heart surgery for underprivileged children

• Memorandum of Understanding with the Malabar Institute of Medical Sciences Ltd (MIMS)
Charitable Trust, Calicut in Kerala

• Support the complete medical treatment of 20 children diagnosed with major heart conditions
 Awards & recognition

• 2010 Lloyd‟s List Awards

– DP World Chennai wins Terminal Operator Award

• National Safety Award under Scheme XI

– DP World Chennai received the award from Labour & Employment Minister, at National Safety
Awards in New Delhi on September 27, 2010

• 2010 Maritime and Logistics Awards

– MICT: Container Terminal Operator in a non-major port

– DP World Nhava Sheva: Health, Safety and Environment

– DP World Subcontinent: Container Terminal Operator pan India

• 2009 CNBC Infrastructure Excellence Awards

– MICT: Port of the year

• 2009 Seatrade Middle East and Subcontinent Awards

– DP World Nhava Sheva: Environmental Protection
 Pride in security, quality and welfare

DP World has been at the forefront of ensuring the highest standards of security at
its terminals and follows stringent international procedures:
• Only global marine terminal operator to be certified ISO 28000:2007 for Supply
Chain Security in India
• Only global marine terminal operator to be validated by C-TPAT (Customs -
Trade Partnership Against Terrorism) in India

Certification CT –PAT ISO 9001 ISO 14001 OHSAS 18001 ISO 27001 ISO 28000 ISPS *
Custom-Trade Quality Environmental Occupational Information Supply Chain International
partnership Management Management Health and Security Security Ship and Port
Location against System System Safety Management Facility
terrorism Management System Security Code
System
Nhava Sheva       
Mundra       
Cochin  
Chennai       
Visakhapatnam     
CRRS 

* The ISPS certificate is obtained as part of the respective Port Trust Certification
 We care about our people

• DP World Institute
– Comprehensive set of learning and development tools and programmes

• Highest employee engagement level within DP World regions at 87%

– “My World” survey done on a global level to gauge employee satisfaction

• Talent management scheme for growth, development and succession planning

• Strong HR policies and guidelines to attract and retain talent
• Rewards and recognition culture
• Simulator
– Induction and refresher training provided to
all crane operators
– Trains operators for real life situations and hazards
Our top ten customers
 Key statistics

2009 Throughput for India in '000 TEUs* • DP World is the single largest container
2008 2009 terminal operator in India with significant
DP World 3,473 3,730 market share
Others 4,327 3,770
Market share 45% 50% • Vallarpadam will augment our capacity and
capture additional market share

• Cochin and Mundra are the new gateways to

India
• ICTT being the only transhipment hub will
retain India‟s volume in India

DP World • DP World handles around 50% of India‟s

PSA/ABG containers with less than 25% of India‟s container
Government
quay length
APMT
MPSEZ • New developments will ensure that DP World
remains a leader for enabling container trade in
2009
India
*Capacity data sourced to Drewry Global Container Terminal Operators 2010
 Expansion plans

Current Pipeline
• Vallarpadam phase 1B and 2
• Kulpi, West Bengal
– Around 60 km south of Kolkata in India‟s Bay of Bengal
– 900m quay line and 34 hectares of paved yard, providing a capacity of 1.35 million
TEU
Subject to Regulatory Approval
–Mundra container terminal 2
–Chennai iron ore berth conversion to container terminal
Qualified bidders for:
– Chennai Mega Terminal
– JNPT 4th Terminal
– JNPT extension of 330 meters
In addition, active participation in ancillary services like CFS, ICD and rakes
 Concession status

Location License agreement date Period

Nhava Sheva July 3, 1997 30 years
Chennai August 9, 2001 30 years
Mundra January 7, 2003 28 years
Kulpi August 9, 2004 99 years
Cochin (Vallarpadam) January 31, 2005 30 years

• DP World Indian concessions are almost all in excess of 30 years

• Utilization rates are some of the highest in the world
• DP World has a presence in all India‟s Gateway terminals
• Nhava Sheva has set new benchmarks for efficiency based on which the
government has raised the performance level of license agreement parameters
 Thank You
“DP World's investments in India have been one of our major success stories. Our developments and
expansion in five major ports on India's east and west coasts follow a unique pattern of integrated
management that promote the port business and bring direct benefits to the local communities. As a global
economic power with a rapidly expanding domestic market, India offers immense potential for growth in the
maritime sector. DP World is privileged to be a partner in this progress.”
Mohammed Sharaf, Chief Executive Officer, DP World