East Coast India Ports Climb in the Ring: Analysis

By George Backwell
Tuesday, June 10, 2014
Container Handling Market Share of East Coast Ports in India, FY13: Image courtesy of DMER

Adani Ports has acquired an interest in Dhamra Port, situated between the major ports of Haldia and Paradip. Its deep-water container terminal, if developed, will be a major threat to nearby Kolkata and Vishakhapatnam, considers Drewry Maritime Research in its latest Container Insight Weekly, excerpted here:

Adani Ports and Special Economic Zone recently announced the much-anticipated acquisition of Dhamra Port Company Limited (DPCL), a joint and equal ownership by Larsen and Toubro and Tata Steel. DPCL is a concessionaire at Dhamra Port (in the state of Odisha on the east coast of India) and has been entrusted with the responsibility of building and operating a multi-user, multi-cargo port. DPCL holds a 34-year concession which can be renewed for two additional 10-year periods.

Adani Port reportedly had been awaiting environmental clearances (received early this year) for Phase 2 expansion at the port and has also been serving as management consultants to the port. Dhamra Port handled 14.3 million tonnes of bulk cargo in the year ending March 2014, ~70% of which included coal imports.

Drewry believes that the acquisition of Dhamra Port brings many  benefits for Adani Ports, such as:
1) Dhamra Port gives Adani a scalable 100 mtpa facility on the east coast of India, which, along with 101m tonnes handled at Mundra in FY14, will further strengthen its existing position in the Indian port sector;
2) Dhamra Port has sea-side infrastructure and rail connectivity already in place along with the environment clearance for the second phase, however it needs to improve road connectivity;
3) The port can handle capesize vessels;
4) The acquisition could enable Adani Enterprises to route greater amount of coal imports for SAIL to Dhamra Port from their current discharge at competing ports once the required capacity at Dhamra Port is in place;
5) Last, but perhaps the most important, is the ports’ proximity to the mineral belt of Jharkhand, Orissa and Chhattisgarh, along with proximity to end consumers.

In terms of container handling facilities, the proposed development pipeline has a provision for two container berths. It is worth noting that, in the past, APM Terminals was reportedly interested in taking a stake in Dhamra Port to  develop a 500 thousand teu (which could be expanded) container facility.

It is worth noting that Adani Ports’ east coast entry actually happened late last year when the company announced that it had completed the construction of the steam coal import terminal at the Vishakhapatnam port, eight months ahead of schedule. The company had entered a concession agreement with Vishakhapatnam Port Trust (VPT) in March 2011 to redevelop and operate the facility.

According to the company, the redeveloped terminal can handle ~6.5m tonnes, and it is expected to handle ~3m tonnes in FY15. The company’s existing port assets (prior to Vizag and Dhamra), which include Mundra Port, Hazira and Dahej, were all located on the west coast of India.

Drewry's View

Adani Ports benefits from acquiring a scalable facility on the east coast of India, with commodities and consumers in the proximity. Dhamra Port however needs to improve on its hinterland connectivity.

Source: Drewry Maritime Research
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all requisite

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

Delta "T" Hooks for Offshore Customer

Gaining further ground into the offshore crane market, Delta "T" Systems supplied Cranston Eagle hooks to crane manufacturer Appleton Marine, Inc.   These cranes

Ports

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Hull Cleaning Op'ns in Oman

GAC EnvironHull hull cleaning operations using the brush-and-diver-free HullWiper system starting at the port of Sohar, just outside the Gulf of Hormuz. This

Bulker Arrives to US on Her Maiden Voyage

The Port of Vancouver USA welcomed the Kypros Unity, commanded by Capt. Wilfredo F. Itable of Cyprus, on her maiden voyage Oct. 28. Capt. Itable and his 20-member

Container Ships

Asia-Euro Box Rates Jump 88 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped 88.2 percent to $1,312 per 20-foot container (TEU) in the week ended on Friday,

Seaspan Receives 5th 10K TEU Boxship

Seaspan Corporation announced yesterday that it accepted delivery of a 10000 TEU containership, the MOL Brightness.   The new containership, which was constructed

CMA CGM to Retrofit 10 More Bulbous Bows

The CMA CGM Group said it will retrofit 10 of its vessels’ bulbous bows to achieve improved energy efficiency for slow steaming. The modifications are in addition

Logistics

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

Consulting

SMC to Provide Marine Coordination for Siemens

Specialist Marine Consultants Ltd (SMC) have been working with Siemens, providing offshore marine coordination for a fifth Siemens Wind Power construction project.

Good Performance by Dun & Bradstreet in 3Q 2014

Dun & Bradstreet, the world's leading source of commercial information and insight on businesses, today reported results for the third quarter ended September 30, 2014.

Schlumberger Introduces New Well Integrity Service

Schlumberger announced today the release of Invizion Evaluation* well integrity service, which helps operators evaluate zonal isolation by using integrated drilling, cementing and well logging data.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2296 sec (4 req/sec)