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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

“Twiggy” Baker Wins BWT Puerto Escondido Challenge

Grant “Twiggy” Baker (ZAF) claimed victory today at the Puerto Escondido Challenge, besting a field of 24 of the world’s best big wave surfers in towering 20-to-35

Winners of International Seafarers' Welfare Awards

The winners of ISWAN's International Seafarers' Welfare Awards 2016 were announced on 24th June at a high-profile ceremony held in Manila, the Philippines. The

Maritime Needs More Women Power

United Nations  International Maritime Organization (IMO) Secretary- General Ki Tack Lim pushed for the increased involvement of women in the seafaring industry

Ports

More PPPs Needed to Enhance Dubai Maritime

The Marine Advisory Council has met to discuss the best ways to continue leading the march to excellence pursued by the Dubai Maritime Authority in upgrading the

210 Ships Pass Through Suez Canal Last Week

Suez Canal traffic data revealed that 210 ships transited the canal, with a total load of 12.8m tonnes, from 19 to 23 June.   An average of 42 ships transited the canal per day during that period,

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Container Ships

MSC Jade Sails with MAN's Biggest Engine

The largest and most powerful engine from MAN Diesel & Turbo’s portfolio ever designed and built has entered service.   Built by Doosan Engine in Korea and rated at 75,

Slowing Shipping Fleet Growth to Ease Officer Shortage

Slowing growth in the size of the shipping fleet will reduce the shortage of officers over the coming years, according to the latest Manning report published by global shipping consultancy Drewry.

Kuriyama Joins Matson Board of Directors

The Board of Directors of Matson, Inc. has appointed Stanley Kuriyama as a director of the company, effective June 23, 2016.   Kuriyama is the Executive Chairman of Alexander & Baldwin, Inc.

Logistics

More PPPs Needed to Enhance Dubai Maritime

The Marine Advisory Council has met to discuss the best ways to continue leading the march to excellence pursued by the Dubai Maritime Authority in upgrading the

210 Ships Pass Through Suez Canal Last Week

Suez Canal traffic data revealed that 210 ships transited the canal, with a total load of 12.8m tonnes, from 19 to 23 June.   An average of 42 ships transited the canal per day during that period,

Maersk Takes Coffee Very Seriously

Maersk acknowledges that coffee is very special, mainly in regards to the processes and requirements involved for it’s shipping. "So we have adapted the way we work so we can meet your needs,

Consulting

LR Suggests Locations for In-water Surveys

Lloyd’s Register has recently re-appraised its guidance on locations where an In-Water Survey may be carried out.   Traditionally, these locations were known as ‘Approved Locations’,

GTT, Endel Team-up to Roll-out Membrane Containment Systems

21 June 2016. GTT and the Endel company1 reaffirmed their collaboration in the area of LNG as a marine fuel, following the recent signature of a Technical Assistance

IAMPE Certifies Port Professionals

The International Association of Maritime and Port Professionals (IAMPE) has informed about the Accredited Marine Port Executive Professional Certification. This

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.1038 sec (10 req/sec)