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Indian Port Industry


Coverage on Mundra Port SEZ


(MBA-FINANCE) (2007-09)

At Antique Stock Broking Limited, Mumbai

In Partial Fulfillment Of

Post Graduate Degree Course MBA (Finance)

University of Pune


PUNE: 411038
I, Mr. Ritesh T. Bhusari hereby declare that this project is the record of authentic work carried out by

me during the academic year 2007-09 & has not been submitted to any other university or institute

towards the award of any degree.

Ritesh T. Bhusari

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A ny purpose and its fulfillment require deep routed efforts for its completion. Many characters
play a vital role. This is more when a project undertaken is directly to a cause.

First of all I would like to acknowledge my sincere thanks to Mr. Prasad Dahapute, Vice President of
Antique Stock Broking Ltd., Mumbai, who gave me an opportunity to carry out this project and had
been a constant source of inspiration.

I also extend my gratitude and thanks to Mr. Amit Jain, Manager-Research, Antique Stock Broking
Ltd., Mumbai, for his constant support and guidance throughout the tenure of this project.

I would like to put forth my sincere acknowledgement to my Project Guide Mrs. Kshitija Soman, Sr.
Lecturer (Finance) MIT-SOM for her path finding guidance & a special thanks to Mrs. Anjali
Vamburkar, Sr. Lecturer (Finance) MIT-SOM for her strong academic support. Without their support it
would have been a difficult task to accomplish this project.

Finally I would like to thank all those who were directly and indirectly concerned in making my
project successful. To put it in a nutshell a difficult and arduous journey was made simple and quiet
enjoyable due to their support

Ritesh T. Bhusari

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Sr. No. Particulars Page No.
1 GDP growth trend 17

2 Rising per capita income 18

3 Population projections 18

4 India’s demographic pattern 19

5 IIP movements 19

6 Indian Port Overview 21

7 Port Distribution 21

8 Ranking of Indian Ports 22

9 SWOT Analysis 22

10 Location of Indian Ports 23

11 Port Management Models 24

12 Port Traffic 25

13 Trends in Traffic at all Indian Ports 25

14 Commodity-wise share at Major port 25

15 EXIM Data 26

16 EXIM Share 27

17 Laden Container Trade Share 28

18 Crude Oil Expected Import 29

19 Demand projection by 2011-12 for iron ore & pellet 30

20 Total non coking coal traffic for 2011-12 31

21 Total container traffic by 2015-16 32

22 Increasing Container Traffic 32

23 Port wise traffic projections 35

24 Commodity wise traffic projection 35

25 BOF 36

26 Present Comparison of ports for different parameters 37

27 Future Comparison of ports for different parameters 37

28 Port’s Ability Comparison 38

29 NMDP 40

30 Funding Under NMDP 40

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31 Other ongoing projects 40

32 Upcoming projects 41

33 Dredging Requirements 41

34 Funding Pattern for projects at ports 43

35 Financial Strategy 44

36 Available Funds 44

37 Allocation of traffic from Hinterland 45

38 Trends in traffic share 48

39 Share in Transshipped cargo 52

40 Portwise Transshipment Cargo 52

41 International shipping routes 53

42 India’s proximity to international shipping routes 53

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Sr No. Abbreviation Explanation

1. JNPT Jawaharlal Nehru Port Trust

2. NSICT Nhava Sheva International Container Terminal

3. BOT Build Operate Transfer

4. PPP Public Private Partnerships

5. IWT Inland Water Transport

6. EXIM Export Import

7. CAGR Compounded Annual Growth Rate

8. SEAP South East Asia Pacific

9. MoC Ministry of Commerce

10. GoI Government of India

11. FTP Foreign Trade Policy

12. DEPB Duty Entitlement Pass Book

13. TEU Twenty Equivalent Pass Book

14. DFC Dedicated Freight Corridor

15. POL Petroleum, Oil, Lubricants

16. MT (MMT) Million Metric Tonne

17. LPG Liquified Petroleum Gas

18. LNG Liquefied Natural Gas

19. MTPA Million Tonne Per Annum

20. MTOE Million Tonne Oil Equivqlent

21. CEA Central Electricity Authority Of India

22. CIL Coal India Limited

23. CPP Captive Power Plant

24. ESCAP Economic And Social Commission For Asia And The Pacific

25. FAI Fertilizer Association Of India

26. CIER Center For Integrative Environmental Research

27. L&T Larsen And Tubro

28. SAIL Steel Authority Of India Limited

29. NALCO National Aluminum Corporation

30. TCS Tata Consultancy Services

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31. UAIL Utkal Aluminium Industries Limited

32. DWT Dead Weight Tonnage

33. CIF Cost Insurance & Freight

34. NMDP National Maritime Development Programme

35. DOS Department Of Shipping

36. SBM Single Buoy Mooring

37. GTI Gateway Terminal India

38. PSA Port Of Singapore Authority

39. GACL Gujarat Ambuja Cements Limited

40. NCCL Narmada Cement Company Ltd

41. IPCL Indian Petrochemicals Corporation Limited (IPCL)

42. DCC Digvijay Cement Company

43. BPCL Bharat Petroleum Corporation Limited

44. IOC Indian Oil Corporation

45. ASTA Average Ship Turn Around Time

46. RORO or ro-ro ships Ferries Designed To Carry Wheeled Cargo

47. lo-lo (lift on-lift off) ships Vessels Which Use A Crane To Load And Unload Cargo

48. INR Mn Indian Rupee in Million

49. INR bl Indian Rupee in Billion

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Bleeding Conveyor Lines Conveyor Hues Used Pursuant To Bleeding Of Bagged Cargo

BP Bollard Pull

Container Freight Station Bonded Area Where Container Boxes Are Packed And Unpacked

Container Terminal Comprises Container Berth And The Container Storage Yard Area

Cup Pigging System Cup Shaped Pig (Foam) Used For Cleaning Pipelines
Destuffing Unpacking the container box

DWT Deadweight Tonnage, Denoting Maximum Tonnage That Can Be

Handled By A Ship

Export-Import Conveyor Material Handling System For Export And Import Of Bulk Cargo

Forkiifts Mobile Equipment Having Fork Type Structure For Lift On And Lift

Gantry Cranes Cranes With An ‘A’-Frame Structure

Grab Attachment With Cranes Used For Handling Bulk Cargo

IMPS Integrated Port Management System

IC D Inland Container Depots

ISPS International Code For the Security Of Ships And Port Facilities

Jetty Civil Structure Jutting Out Of Shore And Having Berths At Other End

Major Port Ports Administered By The Government Of India And Managed By A

Port Trust

Mobile Bagging Unit Mobile Equipment Used To Bag Bulk Cargo

Mobile Hoppers Mobile Equipment Connected To Conveyors

Navigation Buoys Floating Structures Demarcating Channels, Port Limits Etc.

Non Major/Minor Port Ports Administered By The State Governments

Oil Spill Booms Equipment In Tug To Disperse Oil Spill

Pilotage Guiding Ships Within The Port Limits

Portainers Alternative Name For Rail Mounted Quay Cranes

Post Panamax Rail Mounted Cranes Placed On Berths Having An Outreach To Service Post
Quay Cranes Panamax Vessels And Moving On Rails

Reach Stackers Mobile Equipment With Spreaders To Lift On And Lift Off Container

Reefer Container Storage Container Storage Area Having Electric Points Which Can Be Used
For Refrigerated Containers

Ship Loaders Chutes For Loading Of Bulk Cargo In The Ships

Single Poir.T Mooring Deep Sea Floating Structure For Berthing Very7 Large Crude Earners

Spreader Attachment With Cranes/Reach Stacker For Lifting Container Boxes

Stacker Reclaimer System Equipment Used To Reclaim And Stack Bulk Cargo Within The
Storage Area
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Stacking Piling Up One Above The Other

T here are 2,814 international ports catering to freight traffic registered in the world port traffic
increase at an average rate of about 3% per year. Nearly 90% of goods exchanged through
international trade in the world rely on maritime transport along the logistic chain that takes them from
their origin to their destination. A large share of that trade would not exist without the port
infrastructure, which is at the interface between maritime transport & land transport as economic &
service units of notable importance in the global economy.

India was a rather marginal participant in world trade during the early years after independence. Since
1980, however, the structure and orientation of Indian export trades have undergone fundamental
changes in line with world trend in the industry adopting new maritime transport technologies as they
emerge & searching for organizational form which allows them to improve their efficiency & ease
their integration in the transport component of the logistic chain. Substantial progress has been made in
diversifying the export base - manufactured goods have increased.

The national economic development of India requires a well functioning seaport system, realizing this
fact & due to the foreseen national economic development and increasing EXIM trade in the coming
decades, GoI along with Private Participation initiated several reforming steps to improve port’s
functional efficiency which ultimately results in a strong further growth of the Indian port sector.

One among the private players is MUNDRA-SEZ, which has shown a phenomenal growth trajectory
over a period of time MPSEZ has shown a CAGR of 46% in the top line & 77% in the bottom-line in
the last 3 years (FY06- FY08). So I decided to value its present stock price using Two Stage Valuation
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Method. From my valuation I derived the equity value per share at INR 607.41 from current financials
(FY08), whereas stock is trading at INR 570.75 (5/09/08), which seems to be undervalued & hence
very attractive to bag, it. I have also done competitors analysis of MP-SEZ with Mumbai & Kandla

Name: Antique Stock Broking Ltd.
Address: 6th floor, Nirmal Building, Nariman Pt. Mumbai
Type of Organization: Broking Firm
Type of Industry: Financial Services
Antique Stock Broking Ltd. was founded as a small sub-broking unit, with just three people running
the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for
professionalism, research-based value investing and implementation of cutting-edge technology has
enabled us to blossom into an almost 1000 members team.
Today, Antique is a member of both NSE & BSE and offers a well diversified financial services firm
offering a range of financial products and services such as

1. Equity (cash and derivatives)

2. Commodity broking
3. Portfolio Management Services
4. Distribution of financial products
5. Depository Services

Antique has diversified client includes High Net worth Individuals, Mutual Funds, Foreign
Institutional Investors, Financial Institutions and Corporate Clients. As of end of financial year 2008,
the group net worth was INR 5.

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Focus on Research
Research is the solid foundation on which Antique advice is based. Almost 15% of revenue is invested
on equity research. At present Antique has 20 equity analysts researching over 20 sectors from a
fundamental, technical and derivatives research perspective.

Strong Management Team

The organization finds its strength in its team of young, talented and confident individuals. Qualified
professionals carry out different functions under the able leadership of its promoters, Mr. Rohit
Chaturvedi and Mr. Gagan Doshi. Along with this Antique has talented pool of people comprises
qualified and experienced professionals with an established track record, it believe that their
management's entrepreneurial spirit, strong technical expertise, leadership skills, insight into
market/customer needs provide us with a competitive strength which will help us implement Antique’s
business strategies.

 To briefly study the Indian Economy specifically Export Import (EXIM)
 To study the Indian Port Industry
 To study the Mundra Port SEZ & thereby value it, based on various Financial as well as Non
Financial measures

 Scope of this report is a bit broad, as this Project report tried to unearth various investment
opportunities in whole Port Business
 It helps investor to understand Industry, Company, Business Models through financial as well
as non financial analysis
 All in all, Report gives a brief idea about an emerging avenue to an investor to invest his hard
earn money

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 Duration of four months weren’t enough to understand the whole new business sector, related
companies, their business model & operations
 It was very difficult for a novice to access the complete data of companies



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Indian Port


T he role of a modern seaport can be summarized in the following UNCTAD definition (United
Nations Conference on Trade and Development): "Seaports are interfaces between several
modes of transport, and thus they are centers for combined transport. Furthermore, they are multi-
functional markets and industrial areas where goods are not only in transit, but they are also sorted,
manufactured and distributed. As a matter of fact, seaports are multi-dimensional systems, which must
be integrated within logistic chains to fulfill properly their functions. An efficient seaport requires,
besides infrastructure, superstructure and equipment, adequate connections to other transport modes, a
motivated management, and sufficiently qualified employees."

There are 2,814 international ports catering to freight traffic registered in the world port traffic increase
at an average rate of about 3% per year. Nearly 90% of goods exchanged through international trade in
the world rely on maritime transport along the logistic chain that takes them from their origin to their
destination. A large share of that trade would not exist without the port infrastructure which is at the
interface between maritime transport & land transport as economic & service units of notable
importance in the global economy.

India was a rather marginal participant in world trade during the early years after independence. Since
1980, however, the structure and orientation of Indian export trades have undergone fundamental
changes in line with world trend in the industry adopting new maritime transport technologies as they
emerge & searching for organizational form which allows them to improve their efficiency & ease

14 | P a g e Ritesh Bhusari
their integration in the transport component of the logistic chain. Substantial progress has been made in
diversifying the export base - manufactured goods have increased.

The national economic development of India requires a well functioning seaport system, realizing this
fact & due to the foreseen national economic development and increasing EXIM trade in the coming
decades, GoI along with Private Participation initiated several reforming steps to improve port’s
functional efficiency which ultimately results in a strong further growth of the Indian port sector.


I ndian economy continues its growth journey even in the scenario of global slowdown led by
possible recession in the US. The strong domestic demand is the real strength of the Indian
economy, which makes India one of the fastest growing nations in the world. However, there are
several challenges facing Indian economy that needs to be address for sustainable economic growth.
One of the key challenges that Indian economy is facing is increasing inflation rate. Globally, sharp
rise in prices of commodities and primary articles fuels the inflation and India is no exception to that.
Poor infrastructures, higher liquidity in the market are other key challenges that India is facing.

Despite several challenges, Indian economy is resilient enough to grow at a higher rate in the last
couple of years. Over the past several years, Indian economy grew faster than average growth rate of
the world and this was largely due to factors such as increasing level of domestic demand, solid
economic growth in all economic sectors, emergence of low cost manufacturing destination, etc.
India’s real GDP growth rate for the last five years from 2003-04 to 2007-08 averaged 8.7%.

The growth trajectory continued even in 2007-08 but at moderate rate. During FY2008, India’s real
GDP grew by 9.0% compared to 9.6% in FY2007 and expected grow at 7.5-8% in FY2009. However,
Indian economy witnessed some slowdown in industrial activities largely on manufacturing front.

Chart 1: GDP growth trend

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Yearw ise GDP Grow th rate
9.00% 9.40% 9.00%
8.00% 7.50%

4.00% 3.80%
2002 2003 2004 2005GDP Grow2006
Year th rate 2007 2008 2009
Source: RBI

Increasing per capita income

The per capita income of India is also rising rapidly mainly attributed to sharp economic growth.
Growth in per capita income accelerated from 7.4% in 2005-06 to 8.4% during 2006- 07 and stood at
INR 34, 271. Per capita income growth averaged 6.1% per annum during the Tenth Plan period (2002--
07) and 7.1% per annum during the last four years (2003-04 to 2006-07), which was more than double
of 3.4% per annum recorded during 1980s and 1990s. As the strong growth in the economic activities
is expected to continue, per capita income is also expected to grow rapidly and is likely to reach INR
43, 000 by the end of current fiscal.

Chart 2: Rising per capita income

Per Capita Income (INR)




2005 2006 2007 2008
Y ear

Source: Economic Survey 2006-07

Improving Purchasing Power

With rising per capita income and increasing size of earning class, people’s spending power has also
risen substantially in recent years. Indian middle class, which includes households with annual
disposable income of INR 1, 88,340 to 9,41,270 is expected to go up to 583mn by 2025 from current
50mn. Per capita income of India is expected to triple over the next two decades and India would
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become the 5th largest consumer market by 2025, from the current 12th place, surpassing Germany.
Besides this, increasing urbanization also boost spending power of the people and results in rising
consumer class. All these factors make India big consumer market thus attracting global corporate
giants towards it.

Demographic pattern an Advantage to India

India’s current population is expected to be around 1.18bn and it is the second most populated nation
in the world. India’s population is amongst the youngest population in the world. The average age of
India’s population is 24.8 years.

Table1: Population projections (in Mn.)

Year 2001 2006 2011E 2016E 2021E 2026E

Below 15 365 357 347 340 337 327

15 to 64 619 699 780 851 908 987

Above 65 45 56 66 78 95 116

Total 1029 1112 1193 1269 1340 1400

Source: Economic Survey 2006-07

Major portion of India’s population falls into the age group of 15-64 which is earning population. In
2006, this particular age group constituted around 62.9% of total population and is expected to
constitute around 68.4% by 2026. The rapid rise in young population will boost domestic consumer
spending, which will be the main driver of Indian economy. Due to larger portion of population falls
into earning class, India’s dependency ratio is also very low compared to other emerging economies.

Chart 3: India’s demographic pattern

Demographic Pattern 0-14


5% 65+



Source: Economy Survey 2006-07

Normalization in industrial production

During FY2008, industrial production has witnessed some slowdown largely because of slowdown in
manufacturing and electricity sector. Index of Industrial Production (IIP) grew by 8.1% during FY2008

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compared to 11.2% in FY2007. Manufacturing sector grew by just 8.6% compared to 12.2% in
FY2007 and electricity sector grew by 6.4% compared to 7.2% in previous year.

In March 2008, IIP grew by only 3% compared to 14.8% in March 2007. This growth was the weakest
growth in the past six years since February 2002. This moderation in growth was largely due to lower
growth in manufacturing and electrical sector and to some extent higher base effects. During the
month, manufacturing sector grew just by 2.9% compared to 16% growth in March 2007. Electricity
sector also witnessed slower growth of 3.7% in March 2008 compared to 7.9% in March 2007. Despite
moderation in IIP, interest rate cut in the near future is unlikely due to current high inflationary

Chart 4: IIP movements Source: Economy Survey 2006-07

Growth-Inflation maintaining a tradeoff

India has witnessed inflationary pressure since the past four months. Inflation in India is now at
highest point since last three and half years. Increasing commodity prices especially food articles and
crude oil price is fueling inflation globally and India is no different story.

Preemptive steps taken by the government to curbed the inflation to some extent in first half of 2007-
08 but rising crude oil prices and supply side constrains of primary articles fueled up inflation so
sharply that it crossed the past three and half years inflation figure. As per latest data available, the
wholesale price-based annual rate of inflation rose to 11.89% for the week ended July12-2008, its
fastest pace since February 2001.

With an intention to curb the inflation the government started taking fiscal measures like scraping the
import duty on crude edible oil, banning export of rice and pulses to boost the supply side and drive
down the prices. Indian government also requested steel makers to reduce or hold the prices of steel.
Additional fiscal measures are expected in the coming days to curb the inflation. The government has a
clear choice between inflation and growth. The government is ready for slower growth but not higher
inflation as this will affect large sections of Indian society. The Indian government expects economic
growth to slow, for the first time in last three years. Indian economy expected to grow at 7.5-8% for
FY2009, lowest in last three years.

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RBI’s Role in managing liquidity
Recently, Reserve bank of India (RBI) hiked cash reserve ratio (CRR) for banks by 75 bps to 9% (as
on 30/08/08) to control the rising inflation. CRR hike move followed by duty cuts on imports and
export bans of key commodities which fuelled the inflation to three year high. It is estimated that this
move by RBI would suck around INR bn 185 from the banking system, which is flooded with excess
liquidity of around INR bn 500. Further in its recent move RBI hiked repo rate by 25bps to 8%.

Looking Forward
In a healthy domestic demand environment and global demand, the Indian economy continued to
exhibit robust growth for the next 5-6 years. Real GDP growth accelerated to 9.6% in 2006-07 from
9.0% in 2005-06. The good thing about this growth trajectory was, this economic growth achieved
despite challenges like rising inflation, fear of global slowdown and infrastructure constraints.

India has the potential to grow at a sustainable rate of ~8% in the next couple of years provided the
government continues its fiscal measures to boost the economy also government need to address issues
like higher inflation, poor infrastructures and employment creation on urgent basis. Further,
government needs to improve performance of agricultural sector on which larger portion of population


T he objective of this report is to bring one of the emerging components of an Indian Trade System
in to limelight i.e. Port Industry.
So, let us see how Indian Port Industry is all about
Indian ports are divided primarily into Major Ports and Minor Ports (Non- Major). As of 5th of July
2008, there were 12 major and 187 minor and intermediate ports spread across nine coastal states
along its 7,517 kms coastline (excluding Andaman & Nicobar Island). The classification of a Major
Port compared to a Minor Port is not based on the capacity or cargo traffic but on control and
governance. Port trusts, which are regulated by the Central Government, manage 11 out of the 12
Major Ports. They come under the purview of the Major Port Trusts Act, 1963. Only exception is
Ennore, Major Port at Ennore is a corporate entity incorporated under the Companies Act, 1956 while
all Minor Ports are regulated by the respective state governments and many of these ports are private
ports or captive ports.

Other than the ports in the public sector, there are a number of public-private joint venture ports and
private sector ports. Over the last seven years, there have been significant developments in minor
ports, which are under the respective state government jurisdictions. This has been possible because of
the proactive policies of the state maritime boards, more particularly in states such as Gujarat, Andhra
Pradesh and Orisa etc. The three such minor ports under the state government jurisdiction in the
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private sector are located at Mundra in Gujarat, Pipavav in Gujarat and Kakinada in Andhra Pradesh.
The state government of Gujarat has been a pioneer in formulating proactive policies for development
of ten minor ports in joint and/or private sector along its coastline out of which two commercial cargo
ports are operational.

Table2: Indian Port Overview

Major Ports 12 Non Major Ports 187

Berths 259 Berths 97

% Of Total Traffic 71.5% % of Total Traffic 28.5%

Cargo Handle MT 464 Cargo Handle MT 185

Total Cargo MT 649

Table3: Port Distribution

Port Type West Ports South West Ports South East Ports East Ports

Major Ports JNPT, Mumbai, Kandla Cochin, New Vizag, Chennai, Kolkata, Haldia,
Mangalore Tuticorin Paradip

Minor Ports Mundra, Pipav

Up-coming Ports Hazira, NSICT, Vallarpaddam, Ennore, Gangavaram


Ranking of Indian Ports:

From the chart shown below it is very clear that Kandla & Visakhapatnam Port stands ahead among all
major ports in India with a total cargo 65 MT in the year 2007-08

Chart5: Ranking of Indian Ports (Based on Total cargo handled in 2007-08)

SWOT Analysis for Ports in India:

Chart6: SWOT

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Strengths Weaknesses
 High growth  Old infrastructure
 High market share  Limited water depth
 Financial means available  Old and inefficient cargo handling systems
 Most ports located at
strategic locations
 Poor hinterland connections

 Rigid institutional framework

 High tariffs
 Poor quality of services / business attitude
 Overstaffing
 Lack of capacity
 Lack of extension possibilities
Opportunities Threats
 To emerge as GATEWAY PORT  International contenders
 Huge Indian market, and  Organizational setup
landlocked countries in the North  Bureaucracy
 Delay in operations
 Improve organization:
training, IT, downsizing
 Port reform – more autonomy
 PPP other than BOT
 Invest in infrastructure, lower
costs for port users
 Introduce competition

Fig1: Location of Indian Ports


Organizational modes for seaports:

There are several organizational modes for seaports, depending on the role that port authorities
assume. These are usually labeled as landlord port, tool port and services port
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1. Landlord port: In this model, port infrastructure is owned by the port authority, which is also in
charge of its management. Meanwhile, remaining port services are provided by private firms that
own the assets conforming to the port superstructure and all equipment required for service
provision (cranes, vans, forklifts, etc). Examples of this type of port organization are Buenos
Aires (Argentina) and Rotterdam (Netherlands). In general, this is the most common form of
organization for large ports.
2. Tool port: As in the landlord model, port authorities are also the owners of infrastructure, but in
this mode of organization, they also own the superstructure (buildings, etc) and the equipment
(cranes, etc). Private firms provide services by renting port assets, through concessions or
licenses. Examples of this category are Antwerp (Belgium) and Seattle (US).
3. Services port: In this model, port authorities are responsible for the port as a whole. They own
the infra- and superstructures, and they also hire employees to provide services directly. The port
of Singapore has usually been used as an example to illustrate this type of organization, since its
port authority (PSA) is the owner of all assets and it provides all services. However, there are
already advanced plans for PSA to introduce private participation and thus become a tool port.
If a connection between the type of port and ownership is to be established, it can be concluded that
port authorities of the landlord and tool models are generally public, while the port operators are
private firms. Therefore, these two types could be classified as mixed ownership, since although the
basic infrastructure is generally public, many elements of the port can be owned by operators.
Meanwhile, services ports are more likely to be privately owned, where there is a single private firm
operating the port as a single unit.

Table 4: Port Management Models

Model Type Infrastructure Superstructure Stevedoring/labor Other function

Landlord port Public Private Private Public/private

Tool port Public Public Private Public/private

Public service port Public Public Public Majority public

Private service port Private Private Private Majority private

(Source: DoS, GoI)

Drivers for Port Industry:

P orts handle approximately 95% of India’s total trade in terms of volume and 70% in terms of value
so it becomes very important to see what actually drives the port industry.
1. Passenger Traffic (Tourism)
2. Inland Water Transport ( IWT )
3. Cargo Traffic (EXIM)

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Out of these above two factors Passenger traffic & Inland Water Transport (0.12% of total cargo handle
by Indian Ports) accounts very less & can be neglected while looking for the future prospectus of Port
Business. But Cargo traffic plays a crucial role in estimating the fortune of Port Business.

Cargo Traffic:
1. Total cargo traffic carried by both major and minor ports in fiscal 2007 was approximately 649
million tonnes, of which approximately 464 million tons, or approximately 71.5%, passed
through Major Ports and the remaining 185 million tones passed through the Minor Ports. Over
the last seven years, cargo traffic at Major Ports has grown at a CAGR of 7.6%. In comparison
cargo traffic at Minor Ports has grown at a CAGR of 13.3%. As a result the share of minor ports
in total volume has increased from 23.6% in fiscal 2000 to 28.5% in fiscal 2007
2. Major Ports handled a total traffic of 464 million tons during fiscal 2007. Petroleum products
remain the largest principal commodity of the cargo with one-third of the total cargo traffic at
port during fiscal 2007 being petroleum products. Container traffic increased to 16% during the
same period, over the 14% during fiscal 2006

Table 5: Port Traffic

Ports 2007-08 2006-07 Growth%

Kolkata, including Haldia (Ko) 57.28 55.05 4.05

Paradip (P) 42.43 38.51 10.18

Visakhapatnam (V) 64.59 56.38 14.56

Ennore (E) 11.56 10.71 7.94

Chennai (Ch) 57.15 53.41 7.00

Tuticorin (T) 21.48 18 19.33

Cochin (Co) 15.31 15.25 0.39

New Mangalore (NM) 36.01 32.04 12.39

Mormugao (M) 35.12 34.24 2.57

Mumbai (Mum) 57.03 52.36 8.92

JNPT 55.75 44.81 24.41

Kandla (Ka) 64.89 52.98 22.48

(Source: DoS, GoI)

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Chart 7: Trends in Traffic at all Indian Ports (Source: DoS, GoI)

Port Traffic Growth


500 CAGR 7.6%

Traffic MT



1981 1991 Year 2001 2007

Chart8: Commodity-wise share at Major port

Commodity Share %



16% 17%
POL Iron Ore Container Coal Fertilizer Other Cargo

Reasons for increase in cargo traffic are as follows:

1. The strong economic growth driven by liberalization policies has led to India’s trade in goods
increasing at a five-year CAGR of 11.49% to INR bl 15,746.85 in fiscal 2007.
2. Exports have increased at a five-year CAGR of 17.7%; imports have increased at a five-year
CAGR of 22.6%. There has been sustained rise in volume of exports with revival of growth in
the manufacturing sector and improved export competitiveness
3. Oil imports during April- March, 2008 were valued at INR bl 3,312.44 which was 35.27% higher
than the oil imports of INR bl 2,448.64 in the corresponding period last year.
4. Non-oil imports during April-March, 2008 were valued at INR bl 6,831.71 which was 23.36%
higher than the level of such imports valued at INR bl 5,537.95 in April- March, 2007
5. Ministry of commerce (MoC) under FTP (Foreign Trade Policy) announced extension of the
Duty Entitlement Pass Book (DEPB) scheme till May 2009 and tax exemption to 100 per cent for
Export Oriented Units till 2010 which expects to boost exports & will help to achieve 5% share
in world’s trade by 2020

24 | P a g e Ritesh Bhusari
6. As a result of liberalization and economic reforms undertaken by the government, India has
become fastest growing economy after China
7. GDP has grown from 4.4% for the year 2000-01 to 8.4% for 2007 & more specifically 11.4% in
case of trade, hotels, transport and communication whereas Growth in manufacturing is 8.6 %.
But recently India’s GDP growth rate experiencing some slow down ~8% due to inflationary
scenario, but still transportation sector would be least affected & will continue to show ~11%
growth rate
8. India’s liberalization policies have led to a volume growth of 8% per year in foreign trade and
India is expected to sustain this growth rate in the coming decade as well
9. India’s Total Export Import data as mentioned in table below
(Table 6: EXIM Data)
Source: MoC&I, GoI
Export INR bl Import INR bl Total Trade INR bl Trade INR bl

2006-07 5,717.79 2006-07 8,405.06 2006-07 14,122.85 2006-07 (-) 2,687.27

(April-March) April-March)

2007-08 6,254.71 2007-08 9,491.33 2007-08 15,746.05 2007-08 (-) 3,236.62

(April-March) (April-March)

% Growth 9.39 % Growth 12.92 % Growth 11.49 % Growth 20.44

Fig 2: EXIM Share

Source: Directorial General of Foreign Trade

India’s international trade volumes indicate that trade with Asian countries contributes more than 35%
of the total trade, which is higher than any other continent. Also, the CAGR of trade with Asian

25 | P a g e Ritesh Bhusari
countries is in the range 23 to 27 per cent, which is higher than the rest of the world and it is expected
to remain higher than the CAGR of trade volumes with the US and Europe. India’s trade with Asia is
expected to continue to grow at a higher rate than the rest of the world. The point to note here is that,
while the average proportion of intra-Asian trade for Asian countries is 51 per cent of their total trade
with the world, India’s share of trade with rest of Asia, on a standalone basis, is only 35 per cent. This
clearly indicates that there is substantial headroom for India to increase its trade with the rest of Asia.
The Asian economy is growing (marked by growing consumption levels) at a higher rate than that of
North America and Europe. As a result, there is a higher trade growth in Asia than in North America
and Europe; in 2006-07, trade growth by volumes in Asia was 11 per cent as against 7 per cent in North
America and 6 per cent in Europe. This enhances India’s potential to increase its trade with other Asian
countries. An important aspect of this phenomenon is that China alone is the major contributor to the
positive balance-of-trade of Asia. China’s balance-of-trade with the US & Europe is positive, while it
is negative with that of rest of Asia.

Based on the total commodity wise, container export / import volumes and the above analysis of trade
growth projections of India’s international trading volumes for the period 2015-16 reveal that its
largest trading partners would be north Asian and SEAP nations.

A snapshot of India’s expected Laden Container trade with various external regions is exhibited

Fig 3: Laden Container Trade Share

26 | P a g e Ritesh Bhusari
(Source: MoC&I GoI)

Indian EXIM comprises of many commodities, so let us have a detail analysis of which commodity
contribute (present contribution) & will likely to contribute in port traffic.

Commodity wise demand forecasting (MT):

Liquid Bulk:
POL: India is an important energy consuming country. Oil and gas with a total share of 40%
appear to be primary energy sources. POL import (160 MT) amount to some 26% of the total
import of India and POL export some 8% of the total export.

1. Crude Oil:
 The production of crude oil remained stagnant during past sixteen years whereas the refinery crude
throughput has increased 2.5 times during the same period.
 Taking into consideration the fact that indigenous production is likely to move at the same
laggard pace, the imports of crude oil are estimate at 198.60 MT & total crude traffic through the
ports including coastal movements as 230 MT by 2011-12. In addition to the EXIM, The Bombay
High supplies the crude to Vizag & Kochi refineries through ships.
 No. of registered vehicles on road stood at 92.94 million in 2007 with CAGR of 8.52% &
especially demand for luxurious vehicle has gone up recently ( Luxurious vehicles consumes more
fuel )
 In Rupee terms, the crude oil imports cost INR bl 2,448.90 during 2006-07 against INR bl 1,717.02
in the previous year

Table 7: Crude Oil Expected Import

Item (MTPA) 1990-91 2001-02 2005-06 2006-07 2011-12E

Refinery crude 51.772 107.274 131.6 154.85 230


Crude oil 32.16 32.03 32.19 33 31.4


Crude oil imports 78.17 99.41 121.85 198.60

Source: Ministry of Petroleum & Natural Gas

2. Petroleum Products:
The consumption of petroleum products has grown at CAGR 2.7% during the period of 2002-06 &
will likely to move with increased pace of CAGR 3.8% with estimated consumption of 135 MT
from present 112 MT. Projection for 2011-12 of export of petroleum product will move up from
present 32.39 million tons worth INR bl 801.72 to 90.39 MT & oil product imports at 16.96

27 | P a g e Ritesh Bhusari
million tons for INR bl 403.89 in 2006-07 were up 45.2 per cent over 11.67 million tonnes of
products worth (INR bl 255.75) imported last year

3. Liquefied Petroleum Gas (LPG):

LPG is used for household cooking purpose as well as for industries such as glass, petro chemicals,
baking & confectionary, ceramics, printing, beverages, auto, etc., Demand for LPG is on uphill,
prevailing growth rate in LPG consumption is ~10%. Projected domestic demand for LPG is 11.9
MT for the year 2007-08 as compared to consumption 10.30MT (2006-07) & imports will be
3.58MT (INR bl 90.34) as compared to previous year imports of 2.719 MT. With above scenario,
the projected traffic for LPG imports during 2007-12 will be 4.728MT which in turn to increases
port traffic.

4. Liquefied Natural Gas (LNG):

The consumption of natural gas in 2005-06 is 31.33 MTOE & is expected to rise to about 55
(MTOE) million tonnes oil equivalent with imports reaching 20 MTOE by 2011-12 (which
includes 5 MT for New Mangalore) from present 5 million tonnes.



The existing level of traffic in respect of edible oil, chemicals & other liquids is about 18.63MT at
major ports in 2006-07. In addition non major ports are also handling edible oil & other liquid
cargoes to the tune of 4MT making the total other liquid cargo traffic to 22.63MT. Government is
contemplating to set-up two mega petro-chemical hubs, additional chemical traffic to the tune of
10MT may be expected. Thus total chemical & other liquid traffic by 2011-12 will be 42MT.

Dry cargo:
1. Global trade in iron ore has increased with some 505 M tons in the period from 2001 to 2005.
Iron ore import by China has grown by 31% per year in this period in order to feed China’s steel
industry. Australia and Brazil are prime sources of iron ore. India is another main producer of
iron ore catering for the Indian domestic (steel producing) market and for export. The main
mining areas are located largely in Eastern and Central India (Jharkand, Orissa and Chhatisgarh)
and in Karnataka in South India. Goa and Andhra Pradesh are other iron ore producing areas
2. The steel production in India is estimated to be of the order of 79MT by 2011-12. This will
require about 119 MT of iron ore by the steel industries (assuming 1.5 tonnes of iron ore required
for per tonnes of steel. Presently, about 13% of iron ore required by Indian Steel Industry is
moving by coastal shipping. Assuming the domestic iron ore resources will be consumed on a
higher level & to be moved through hinterland modes, the coastal share may be reduced to 9-

28 | P a g e Ritesh Bhusari
3. The pellet movement will be around 7MT on account of palletisation plants. Hence the total
overseas & coastal movement of iron ore & pellet traffic through Indian ports during 2011-12
given in the table below
4. Other broad reason for increase in iron ore demand is growth in steel & steel based industries like
infrastructure, automotive, real estate, etc.
Table 8: Demand projection by 2011-12 for iron ore & pellet

Item Base case (MT) Upper case (MT)

Oversea exports 100.00 120.00

Coastal movement 21.04 35.00

Palletisation plants 7.00 7.00

Total 128.04 162.00

Source: DoS, GoI

1. Coal production is nationalized at present and private investment in coal mining is only allowed
for captive mines supplying coal to designated sectors as power, steel and cement.
2. Next to crude oil, thermal coal mainly from Orissa is another key energy resource for the power
sector. India’s coking coal usually lacks the quality needed for steel production. Poor quality
domestic coking coal therefore is blended with imported coal which leads to increased import of
coal. Due to the increasing demand for power (since industrial growth & changing lifestyle,
people are moving more towards luxurious utilities which consumes more power), import of coal
has shot up recently to many folds
3. India present imports of thermal coal mainly from Indonesia (13 MTPA), China (4 MTPA),
South Africa(5 MTPA), & Australia(3 MTPA), but China’s share will be lesser in future & all
other sources’ contribution will increase which tend to increase in trade through sea route.
1. Coking coal:
Coking coal is primarily utilized by steel industries which requires about 0.9 tonne of coking coal
for producing one tonne of steel. The projected steel capacity by 2011-12 under two scenarios
given by two different studies namely “Iron & Steel Review” and “Indian Infrastructure” are
78.6MT & 125.10MT respectively. So under these two scenarios 50MT & 78.8MT will be the
import respectively (assuming 0.9 tonnes of coking coal for per tonne of steel & 70% of
requirements would be met by imports)

2. Non coking coal:

In the year 2006-07 over 80.5% of country’s total electricity generation came from thermal station
& the reliance on thermal generation is expected to continue. According to CEA about 20MT
(2006-07) of non coking coal was imported to meet the shortfall in the year 2006-07. As per the
study conducted by the CEA need based installed capacity of coal fired stations would be 1, 14,806

29 | P a g e Ritesh Bhusari
MW is required by 2011-12 for which the requirement of coal for 2011-12 as 537MT & the likely
availability of coal from coal companies & captive mining will be of the order 492.56 MT
assuming distribution of 72% of CIL coal to power sector (except CPPs), so the remaining coal to
the tune of 40-44 MT (2011-12) needs to be imported.

Presently 5% of overall coal production (other than coking coal) is moving though coast. However
future plants are planned to come up in coastal areas & also the existing coastal power plants are
going to rely more on import coal, the coastal movement of domestic coal is likely to come down
in future. Hence domestic movement of coal by coastal route in future has been assumed to be
around 3% of the overall coal production. Accordingly, the coastal movement of coal will be in the
order of 15 MT. Therefore, the port traffic has been assumed at the level of 30MT of coastal

The total non coking coal traffic for 2011-12 is projected as follows on the basis of above analysis

Table 9: Total non coking coal traffic for 2011-12

Item Base case (MT) Upper case (MT)

Power/ Cement Plant 40.00 44.00

Steel plants 18.94 30.00

Coastal movements 30.00 40.00

Total 88.94 114.00

Source: DoS, GoI

1. The economic modernization in India has resulted in strong growth in the value of India’s
exports. India’s export mix is changing with higher value goods (e.g. high tech, pharmaceuticals,
engineering and automotive components) growing at a faster pace than resource based and
agricultural products. The growth and changing mix of cargoes will logically result in further
unitization of the country’s general cargo trades
2. Share of containerized cargo at major ports has gone up from 8% in 1996 to 16% in 2007 & will
likely to move with this pace. Present container traffic is 5 MTEU out of which 4.11MTEU
(82.1%) contributed by Laden container, 0.71 MTEU (14.3%) by Empties & 0.18 MTEU (3.6%)
by Transshipment
3. Increasing containerization in general cargo (consumer durables, engineering comp. machinery,
auto comp., food products, infrastructure I/P, apparel)
4. According to a study conducted by ESCAP, the rate of growth in container traffic projected for
India is 9.4%. However, the estimate for container traffic has been made based on future growth
in GDP (8%) and past growth in General Cargo traffic. The level of containerization has been

30 | P a g e Ritesh Bhusari
assumed to grow @ 2% every year from the present level of 64% of the projected general cargo
traffic and is expected to get stabilized at 75%.
5. Further, according to ESCAP study, the transshipment traffic from Colombo to India is estimated
to reach 4 million TEUs by 2011, of which 80% is expected to either originate or destined to
Indian ports.
6. By Regression Analysis Total Container traffic including Laden, Empties & Transshipment cargo
(Port Region-wise) can be projected for the year 2015-16 as given in table: (Mn TEU)
Table 10: Total container traffic by 2015-16

Port Region Laden Empties Transshipment Total (Mn TEU)

Maharashtra 7.38 2.57 0.39 10.33

Gujarat 4.46 1.51 0.24 6.21

South West 3.80 0.54 0.20 4.54

South East 0.52 0.15 0.03 0.70

East 1.14 0.21 0.06 1.41

Total 17.29 4.98 0.92 23.19

Source: DoS, GoI

Chart 9: Increasing Container Traffic

2004-05 2004-05

2002-03 2001-02

2001-02 2000-01


0 1 2 3 4 5 6

Source: Shipping Corporation of India (SCI)

Fertilizers & Fertilizer Raw Materials:

As per CIER market study, the demand for finished fertilizers will be around 28.4 MT by 2011-12.
The capacity as indicated by FAI is around 17.72 MT by Indian fertilizer plants. Accordingly, the
import of finished fertilizers is assessed as 11 MT tonnes. The present level of fertilizer raw materials
imports at major ports is around 8.49 MT traffic in 2006-07. Since, there is no specific indication from
FAI regarding creation of additional capacity; therefore, assumed that same level of import for FRM
(i.e. 8.49 MT) will remain till 2011-12.

There is proven reserves of Bauxite in district of Orissa. Three firms namely, UAIL, L&T and Vedanta
International have formulated definitive course of action for establishment of Alumina plants for
exports of initially 1 MT each and 2 MT in the subsequent years. NALCO is already exporting
31 | P a g e Ritesh Bhusari
Alumina to the tune of 1 MT and is poised to reach 2 MT by 2007. Accordingly, the total export of
Alumina is assessed at 6 MT by 2011-12.

Steel Products:
As per the report by SAIL, consumption of steel in India is expected to reach around 55 to 60 MT per
annum by 2011-12 & likely to touch 66 MT by 2013-14. Besides the likely import of steel on the basis
of CAGR of 7.1% as indicated in the National Steel Policy by 2011-12 will be around 3 MT. In
keeping with likely production of 78 MT of steel in our country by 2011-12, import of about 3 MT &
consumption of about 57 MT, likely export of steel product by 2011-12 will be about 24 MT (78+3-57)

According to a report by TCS, 2% of the country consumption will be moved by coastal shipping.
Considering 57 MT of steel as projected consumption during 2011-12, the overall coastal movement of
steel will be about 1.5 MT by 2011-12

Other Dry Bulk:

1. Cement, whose imports has increased recently due to low supply from domestic manufacturers
irrespective of high demand & also Govt. has reduce the import duties substantially on import of
2. Nylon, whose use has increased for many industrial as well household goods
3. PVC (Polyvinyl chloride) use for manufacturing wires & pipes
4. PET (Polyethylene terephthalate) for PET bottles
5. Other like Polyethylene (P/E), Polystyrene (P/S), Polypropylene (P/P), ABS Acrylonitrile
butadiene styrene), Silica gel catalyst

Other Liquid Bulk:

Common liquid bulk includes many chemicals like Glycols, Lube oils, Cleaning agents, Plasticizers,
Surfactants, Amines, Epoxy resins, Fuel additives, Solvent, other intermediate chemicals all of these
above chemicals are use in one or the other way

1. It mainly use for manufacturing of plastic & in recent days there is tremendous growth in usage
of plastic-made utilities & equipments
2. Many chemicals are use to manufacture medicinal drugs whose demand has increased
exponentially in the market
3. Also household population led to increase in demand of chemicals used for cosmetic products,
daily needs, toilet cleaner, etc.
Other Factors Which Contribute To The Growth Of Port Business Are As Follows:

32 | P a g e Ritesh Bhusari
1. Increasing efficiency, including larger vessels(10,000 TEU), deeper drafts at ports and improved
equipment and technologies
2. Growth in Inter-modal logistics
3. Increased privatization, regulatory reforms and other institutional dynamics: With increasing
privatization, there has also been a shift from the “service port” model to “landlord” model,
under which port authorities continue to own the land and infrastructure assets, but have divested
themselves of developing and operating the commercial facilities
4. Foreign investment of 100% is permitted for construction and maintenance of ports and harbors
and in projects providing support services to water transport
5. Foreign direct investment of up to 100% is allowed on automatic basis in support services like
operation and maintenance of piers and loading and discharging of vessels
6. Private sector entities are allowed to establish captive facilities

1. As per an ESCAP(The Economic and Social Commission for Asia and Pacific) study conducted
in 2005, it is estimated that by 2015, Asia’s share of containerized exports will increase from
55% of the world total in 2002 to 64%, while the share of containerized imports is expected to
rise from 46% to 53% during the same period
2. The ESCAP study estimates that the total volume of containers trans-shipped within the ESCAP
region will increase from an estimated 42.2 million TEU in 2002 to 109.6 million TEU in 2015
3. The strong growth in India’s port traffic is expected to be sustained, with growth of
approximately 12% to 15% per year expected during the next two to three years. Growth is
expected to be driven by high growth in exports and higher oil imports.
4. As per the Ministry of Shipping, Road Transport and Highways estimates, the traffic at ports in
India is expected to increase to 1,009 M tonnes per year by fiscal 2012 and 1,225 million tonnes
per year by fiscal 2014 from the current 649 million tonnes per year in fiscal 2007. The
additional capacity expected to be built by fiscal 2012 is approximately 763 million tonnes
Port-wise Traffic projections (MT):
Table 11: Port wise traffic projections

Port 2007-08 2011-12E 2025-26E

Kandla 70.63 98.13 204.51

Mumbai 52.38 76.13 128.61
JNPT 49.98 88.77 305.99
Mormugao 49.15 52.25 78.30
New Mangalore 37.41 52.17 84.14
Cochin 15.36 24.63 53.49
Tuticorin 21.20 30.80 71.80
Chennai 54.75 64.17 87.11

33 | P a g e Ritesh Bhusari
Ennore 11.30 40.64 136.40
Visakhapatnam 57.70 81.70 146.80
Paradip 45.60 71.55 125.60
Kolkata 45.01 58.47 172.32
Total (MT) 510.47 739.41 1595.07
Source: IPA’s Port Development Plan

Commodity-Wise Traffic Projections (M Tons):

Based on the below projections, CAGR likely to be achieved from 2005-06 till 2011-12 will be
11.91% for all ports, 10.82 for major ports and 14.76 for Non-Major ports. Thus good demand for all
types of commodities makes the overall picture positive for growth of port business

Table 12: Commodity wise traffic projection

Commodity Existing Traffic 2005-06 (MT) Overall Major portsShare Estimated capacity at
Traffic by by 2011-12 (MT) major ports
Major Ports Non-Major Overall
Traffic 2011-12 MT By 2011-12 (MT)

POL 149.09(66%) 74.84 216.93 378.45 215.33 (56.9%) 294.03

Iron Ore & Pellets 79.17 (74%) 27.84 107.01 128.04 98.60 (77.0%) 121.50
Coal 58.76 (82.4%) 12.55 71.31 138.94 109(78) 115.33
Container 61.98 (94%) 4.13 66.11 169.93 144.42(85.0%) 223.54

(Million TEUs) (4.613) (0.293) (4.906) (14.23) (12.04) (17.7)

Other cargoes* 81.57 (72%) 31.77 113.34 193.59 140.74(72.7%) 247.40

TOTAL 423.57(74.4%) 151.14 574.7 1008.95 708.09 (70%) 1001.80

*Including Iron & steel, Fertilizers & its raw materials, other liquids, Food grains, Alumina

Source: Planning commission’s 11th Five year plan

Indian Port Performance

1. Indian ports lag behind their foreign counterparts. Earlier, Average Ship Turn Around time
(“ASTA”) in India used to be exceptionally high (11.9 days in fiscal 1985), and despite having
progressively declined, stood at approximately 3.5 days in fiscal 2007, which is the highest
among Asian ports which have an average turnaround time for container vessels of
approximately 13 hours, and where ports such as Hong Kong have a turnaround average as low
as 10 hours.
2. Inefficiency of Indian ports resulted in higher through-port and sea transport costs, making cargo
shipped from Indian ports cost-inefficient and non-competitive in international markets. Coupled
with this, the long waiting time discouraged large cost efficient vessels and ship liners from

34 | P a g e Ritesh Bhusari
touching the Indian ports. Consequently, Indian container cargo had to be transshipped in
Colombo, Dubai or Singapore, resulting in additional costs and transit times

Performance parameters:
The readiness of ports to handle increased quantum of container traffic is based on the following
1. Favorable physical infrastructure:
a. Availability of adequate draft to handle large vessels, 15 Meters or above is considered

b. Adequate backup land area (Hinterland Markets)

2. Mechanical infrastructure: Availability of high speed equipment – benchmark for performance has
been taken as 50 crane moves per hour
3. Adequate road and rail connectivity to hinterland

4. Efficiency parameters:
a. Average turnaround time for ships, benchmark – less than 12 hours
b. Average pre birthing time, benchmark – less than 3 hours
c. Average parcel size, benchmark – more than 20,000 tonnes
5. Berth Occupancy Factor (BOF):
The berth occupancy factor is the time that the berth is utilized divided by the total available time.
UNCTAD guidelines for BOF for conventional general cargoes as given in table: (Source: IPA)
Table 13: BOF

Number of berths Max BOF % Types of berths Max BOF %

1 40 Dedicated berths

2 50 One berth 60

3 55 More than berth 70

4 60 Common berth

5 65 Up to 3 berths 70

6-10 70 More than 3 berths 75

Benchmarking of ports based on availability of draft & efficiency parameters:

 Present readiness levels of Indian Ports to handle large vessels

Table 14: Present Comparison of ports for different parameters Source: IPA’s Port Development Plan

Parameter Bench mark East Region South Region West Region

Ko H P V E Ch T Co NM M Mu JN K Pi Mn

Draft 15m N N N N N N N N N N N N N N A

35 | P a g e Ritesh Bhusari
MVS 355-360m A A A A A A N A N N A A A A A

HSE 50 mvs/hr/crn N N N N N N N N N N N N N N N

CQC - - - - 1.2 0.9 1.2 1.4 - - 1.1 2 2.1 - -

NBA 33 17* 14 22 2 21 13 15 13 6# 49 12 21@ - 12


ATT 12hrs N N N N N N N N N N N N N N N

APT 2-3hrs N N A A N N N N A A N N N A A

APS 20,000-25,000 N N N N N N N N N N N N N N N

Availability N N N N A Cn A N A N N N A A A
of Land

Rail Access A N N A A A N PU PU A Cn TR A A A

Road Access A PU N A A Cn A A A A Cn SW A A A

Source: IPA

 Future readiness levels of Indian ports to handle large vessels

Table 15: Future Comparison of ports for different parameters

Parameter Bench mark East Region South Region West Region

Ko H P V E Ch T Co NM M Mu JN K Pi Mn

Draft 15m N N A A 13.5 A 14 14.5 A N N 14 N A A

MVS 355-360m A A A A A A N A A N A A N A A

HSE 50 N N N N A N N A N N N A N A A

Source: IPA

NOTE: A=Available, N=Not Available mvs/hr/crn=Moves per hour per crane Ko=Kolkatta, H=Haldia,
P=Paradip, V=Vizag, E=Ennore, Ch= Chennai, T=Tuticorin, Co=Cohin, NM= New Mangalore,
M=Mormugao, Mu=Mumbai, JN= JNPT, K=Kandla, Pi=Pipavav, Mn=Mundra D=Draft,
MVS=Max Vessel Size, HSE=High Speed Equipment, 24/7 Ops=Round the Clock Operations,
ATT= Average Turnaround Time, APT=Average Pre-berthing Time, APS= Average Parcel Size,
PU=Project Underway, Cn=Constrained, TR=Tripling planned, SW=Strengthining & Widening
of NH4B, SH54, CQC=Container quay (Loading & Unloading) capacity (TEU/m/hr),
NBA=No. of Berths Available (*=2 barge jetties; @=3 Single Buoy Mooring(SBM); # =
(Information on HSE and other efficiency parameters is based on IPA report on “Major Ports in India, in formation on Minor Ports from
various published sources, benchmarks for ATT and APT based on performance of Honk Kong and Colombo / Singapore ports
respectively, Future readiness estimated based on publicly announced investment plans of ports)

Based on the above analysis of port infrastructure, efficiency parameters, and hinterland connectivity,
ports in the western, southern and eastern regions have been categorized into three classes, signifying
their ability to gain container traffic. The ports most likely to gain container traffic among the western
ports are JNPT, Mundra and Pipavav, among the southern ports Cochin (planned development of
Vallarpadam) on the west coast and Ennore on the east coast are likely to be favorable places.
36 | P a g e Ritesh Bhusari
Table 16: Port’s Ability Comparison

Category West South East

A (Greatest ability) JNPT, Mundra, Pipavav Cochin(V), Ennore
B(Moderateability) Kandla, Hazira,Mumbai Chennai, Tuticorin, Vizag / Haldia, Paradip
C (Low ability) New Mangalore, Mormugao Kolkata, Kulpi
Source: IPA

Obstacle to the growth of Indian Port Industry

T he analysis of the performance of the ports when examined through different indicators
described above clearly lead to the conclusion that even though there is huge growth in port
traffic during last 5-6 years period, ports shown a dismal performance in comparison with International
counterparts. So it is worthwhile to take a note that, what actually hurdles the growth of Indian ports.

1. Poor infrastructure is the single biggest obstacle to Indian companies’ ability to scale up their
2. In addition, a complex administrative and tax law environment and unfavorable labor laws are
some of the other factors affecting the global competitiveness of Indian companies.
3. Major Ports have generally suffered from inadequate capacity and operating inefficiencies
(resulting in poor utilization of existing facilities). The Major Ports are also characterized by
qualitative inadequacies.
4. Outdated layout of berths, outmoded cargo handling equipment, insufficient maintenance and
inadequate operational dredges rendered Indian ports operationally unsuitable for modern cargo
5. Attachments for handling specialized cargo as well as the number of technicians trained to handle
modern equipment were in short supply.
6. Poor Rail & Road linkages with ports also impeded the flow of cargo. Apart from serious
obstacles posed by inadequate capacity, Major Ports were also characterized by poor utilization
of existing facilities
7. Many Indian ports lack the deep water draft facility. Thus, the large vessels are berthed at
Colombo, Singapore or Dubai and the cargo is later shipped to India in smaller vessels, which in
turn increases the freight cost. In India, Mundra Port is the only port with an adequate deep water
draft facility (14.5m)
All these results in India’s ranking of 29 on the list of “world merchandise trade” in 2005 published by
World Trade Organization (WTO), India’s share of world goods exports in 2005 was approximately
0.9%, which is lower than the exports of many other countries with much smaller economies,
including Thailand.

What are we doing to accelerate the growth of Ports?

37 | P a g e Ritesh Bhusari
P orts in many countries, including in India are increasingly confronted with the need to expand
their facilities and cargo handling capabilities. Continued growth of sea borne trade, and in
particular growth of container traffic, is forcing port authorities to develop their facilities and
capacities without further delay. The need for port expansion and modernization is also driven by
increasing deployment of large oil tankers and other mega-container ships (up to a capacity of 10,000
TEUs and more), which require deep draft facilities and sophisticated cargo equipment for handling
containers. Port authorities are also under pressure to improve productivity of port services and to
reduce handling charges from vessel operators and shippers, who are themselves operating in a highly
competitive market.

The Indian ports industry is not been isolated from such international developments and there is a need
to develop port facilities in India to service the large container ships. Also one another reason which
makes capacity addition necessary is-

Indian ports are running at full capacity

Since the last few years’, Indian ports are running at their full capacity. The capacity utilization of
Indian ports in 2006-07 was 91% and it was as high as 97% and 93% in 2004-05 and 2005- 06
respectively. The higher capacity utilization was largely due to relative higher growth in traffic
compared to total capacity available and this demands huge capacity augmentation of Indian ports to
cope up with rising traffic in the coming years.

To handle tremendous traffic growth in the next 5 to 6 years, it is necessary that major ports should be
having total capacity of 1,009 MT by 2011-12. Hence a capacity addition of 545 MT is required in the
next five years. The Ministry of Shipping, Road Transport and Highways have taken a number of steps
in this direction. Some major projects are in pipeline & expected to complete in next 5-6 years.

National Maritime Development Programme:

 Under this plan, the total capacity of all ports is expected to increase 2.14 times from 736.9 Mn
tones currently to 1575.3 Mn tones by 2011-12
Table 17: NMDP

Port Type Existing capacity (Mn T) Addition capacity (Mn T) Capacity in 2011-12E

Major 508.6 493.2 1001.8

Minor 228.31 345.19 573.5

Total 736.91 838.39 1575.3

Source: DoS, GoI

38 | P a g e Ritesh Bhusari
 NMDP has envisaged an outlay of INR bl 558.04 till FY14 for the development and capacity
expansion of 12 major ports. Under this programme, 276 projects have been outlined for all ports
put together.
 Private sector participation: Under NMDP, major thrust is on private sector participation; hence,
~62% (INR bl 346) of the total investment outlay is expected to be contributed from the private
 Funding plan under NMDP (INR bl)
Table 17: Funding Under NMDP

Project Head No. of Budgetary Internal Private Others Total

project support resources investment

Dredging 25 27.31 33.40 1.9 0.43 63.04

Construction/ 76 5.6 38.7 280.8 0.5 325.6

reconstruction of

Procurement of 52 0.0 14.3 10.8 1.3 26.3


Rail & road 45 0.9 22.3 0.0 36.3 59.6


Others related 78 2.3 29.0 51.6 0.6 83.5


Total 276 36.1 137.7 345.1 39.13 558.04

Source: DoS GoI

Other Ongoing projects:

Table 18: Other ongoing projects

Project Major port Private developer Project cost (INR bl) Capacity

International Cochin India Gateway Terminal (D P 21.2 From 5 to

Container World) 40 Mt
Transshipment at

LNG terminal Ennore Indian Oil Corporation 27.0 5.0

Container Terminal Kandla ABG Heavy Industry 1.6 7.5

Second terminal Chennai Chennai International terminal 5.0 10.0

Iron Ore terminal Ennore Sical iron ore terminal 4.8 12.0

Coal terminal Ennore Chettinad International Coal 3.5 8.0


Source: DoS GoI

Upcoming projects:
Table 19: Upcoming projects

39 | P a g e Ritesh Bhusari
Project Port Developer Cost (INR bl) Capacity MT

Marine terminal Ennore Ennore tank terminal 2.0 3.0

LNG Terminal Cochin Petronet LNG 28.0 5.0

Container terminal Mumbai (offshore) Gammon India led consortium 12.3 10.0

JNPT (fourth) Planning stage 52.3 52.8

Ennore (first) Selection is under processes 13.0 18.0

Tuticorin (second) Not awarded 5.1 4.8

Cargo berth Pradip ( iron ore berth) Not awarded 5.1 10.0

Pradip (coal berth) Not awarded 6.1 10.0

Source: DoS GoI

Projected dredging requirement of major ports, State ports and Fishing harbor during the period
2011-12 is summarized as under: (Quantity in Million Cubic Meters)

Table 20: Dredging Requirements


Capital Maintenance Capital Maintenance Capital Maintenance

2007-08 123.45 61.02 101.22 3.30 3.64 0.75

2008-09 93.62 61.91 51.89 3.25 3.48 0.22
2009-10 45.55 79.61 79.39 3.96 0.23 0.22
2010-11 25.81 89.01 71.51 10.30 0.17 0.32
2011-12 9.85 88.51 55.50 10.75 0.15 0.82
TOTAL 298.28 380.06 359.51 31.56 7.67 2.33
Source: DoS GoI

Some Major projects Port-wise:

Visakhapatnam Port:

 Expansion of Outer harbor project (Up gradation of outer harbor to handle 2,00,000 DWT vessels)
is planned for completion by 2010
1. Mechanization General Cargo Berth;
2. Upgrading iron ore jetty
3. Handling facility for crude oil and POL (SBM);
4. Extension Container Terminal.

 Improvement of Internal Port Roads to upgrade the road connectivity at an estimated cost of INR
bl 0.35 is expected to be completed by March 2009.
 Investment of 8 INR bl proposed for dredging project at JNPT to increase draft from 12.5 mts to
14.0 mts to handle up to 6000TEU capacity container vessel
 Completion of Container Terminal GTI & Expansion berth towards NSICT;
 Construction of Container Terminal 4, Marine Chemical Terminal, Second Chemical Terminal
 Road, Rail and pipeline connectivity projects and programme.
Mumbai Port:

40 | P a g e Ritesh Bhusari
 Mumbai Port plans to take up the project of laying a dedicated freight rail line from Wadala to
Kurla at an estimated cost of INR bl 1.3

Kandla Port:

 Four multipurpose cargo berths at Kandla Port estimated investment of INR bl 4.21
 Four lanes of existing road of NH-8A to oil jetties which is known as Kandla – Kharirohar road
with bye-pass and one ROB is going on which is likely to be completed by mid 2008
 Development of container terminal at Kandla port on BOT basis is underway of estimated
investment INR bl 2.58
 Extend the Custom Bounded area by reclaiming area behind Cargo berth no. 7 to 10 with all
infrastructure facilities, the completion of which will increase the open storage area by about
65,000 Sq.m. The cost of the project would be INR bl 0.38 this project ha already started in April,

Tuticorin Port:

 Investment of INR bl 27 has been earmarked to dredging at Tuticorin Port which is on account of
development of outer harbor project
 Deepening of existing channel and harbor basin
 On version of berth 8 into Container Terminal also North Cargo Berth for thermal coal handling

Mormugao Port:

 Cruise cum container terminal at Mormugao estimated investment of INR bl 1.76

 Bulk cargo berth at Mormugao Port at estimated investment of INR bl 1.33
 Integration of berth 8 and 9 for iron ore handling
 Introduction railway wagon tippler for iron ore transfer
 Additional iron ore storage capacity & mooring dolphins
 Mobile crane for general cargo berth 11
 New coal berth, Liquid bulk berths, Cruise vessel berth, Port craft jetty
New Mangalore Port:

 Mechanization of the new iron ore berth 14;

 Berth 15 of new Western Dock for handling coal;
 Restructuring of berth 1 and 2 for container handling;
 Construction/conversion of berth 13 for handling liquid bulk;
 Deepening of channel and turning basin;
 Marshalling yard near new Western Dock;
 Development of SBM facilities for crude oil imports;
 Construction of LNG Terminal, Container terminal in Western Dock
 National road and railway connectivity plans
Cochin Port

 Development of SBM facilities for crude oil imports

 Development of LNG and LPG Terminals, Bunkering Terminal
 Vallarpadam Container Terminal
 Development of Cruise Terminal & upgrading Willingdon Island
 National road and railway connectivity plans
Chennai Port:
41 | P a g e Ritesh Bhusari
 Development of Container Terminals 2, 3, 4 and 5
 Off-dock facility Tondiarpet
 Ennore – Manali Road & Elevated Expressway to Poonamallee;
 Railway Terminal at Tondiarpet and shuttle train connection between Port and Railway terminal
Ennore Port:

 Upgrading existing Coal berths for handling thermal coal;

 Construction of Marine Liquid Terminal & Container Terminal
 Dredging and reclamation works
 National and state road and railway connectivity plans
Paradip port:

 Two PPP projects, both relating to the development of deep draught berths, one for handling iron
ore and other for handling of coal on BOT basis at an estimated cost of INR bl 5.20 and INR bl
4.15 respectively
 Deepening of entrance channel to handle 1,25,000 DWT vessel estimated cost INR bl 1.46 &
Extension of breakwater;
 Construction of Iron ore and coal mechanized terminals; Container Terminal; Fertilizer Terminal
Kolkata Port:

 Two riverine multipurpose jetties near Haldia Dock Complex

 Three riverine multipurpose jetties at Diamond Harbor
 Three riverine multipurpose jetties at Saugor

Financing Projects

T he overall requirement of funds during period 2011-12 for the whole port sector (Major + Non
Major Ports) is estimated to be around INR bl 689.72, also a provision of INR bl 10 earmarked to
create a Corpus Fund
Table 21: Funding Pattern for projects at ports

Internal Resources 145.02

EBR & Others 120.54

Budgetary Support 55.47

Private sector 368.68

Total Outlay 689.71

Source: DoS GoI

Financial strategy Port-wise:

Table 22: Financial Strategy

Port Trust Total Funding (INR bl) Available

investments in Funds for
fixed assets Internal Private Government Debt investments in
by 2007-14 resources sector fixed assets
(INR bl) 2014

(INR bl)

Kandla 56.23 6.00 50.23 84.63

42 | P a g e Ritesh Bhusari
JNPT 151.01 43.79 107.22 79.63

Mumbai 45.31 28.97 16.34 106.07

Mormugao 27.90 5.54 1.40 20.94 8.90

New Mangalore 16.87 3.67 13.20 26.33

Cochin 10.21 5.56 4.65 21.55

Tuticorin 26.36 23.18 3.18 -3.08

Chennai 5.18 4.53 0.45 0.20 51.15

Ennore 33.24 7.48 25.76 22.91

Vishakhapatnam 27.63 10.96 16.67 27.76

Paradip 36.10 11.97 16.39 43.52

Kolkata 21.07 8.94 6.08 5.51 0.54 50.45

Source: IPA’s Port Development Report

Available funds investment in fixed asset:

Table 23: Available Funds

Particulars INR bl

Available for investments 73.70

Blocked for pension etc 73.14

Available funds 2007 (investments & liquid means) 146.84

Investment in financial assets 2014 170.85

Liquid means 2014 66.23

Available funds 237.08

Blocked for pensions -73.14

Available for investments 2014 163.94

Equity = borrowing capacity (1:1) 382.33

Existing loans -26.05

Balance 356.28

Available in 2014 in funds & borrowing capacity

Net from investments & liquid 163.94

From unused borrowing capacity 356.28

Total available investment in fixed assets in 2014 520.22

Source: IPA’s Port Development Report

Strategies for port development projects

For implementation of above projects effectively it is very important to draw a well define strategy for
the same, three strategies could be worked out as follows…

1. Develop large port in Mumbai System (JNPT IV/Rewas)

43 | P a g e Ritesh Bhusari
2. Develop terminals in Gujarat (Mundra/Kandla) and Maharashtra systems
3. Strategy for East Coast
Prior to have an insight of these strategies it is better to understand rational behind it…

Present & Expected allocation of traffic from India’s hinterland clusters to port systems, backed by
rational is summarized in table below:

Table 24: Allocation of traffic from Hinterland

Region Sub Region Ports / Port Current traffic Expected flow Rational
systems flow in future
North / West Delhi and surrounding Gujarat, 70% Mumbai ports, 20-30% Mumbai Likely shift to Gujarat: Delhi / Faridabad / Panipat
(NCR / Harayana & Maharashtra 30% Gujarat ports ports, 70-80% around 250 km closer to Mundra than JNPT
Punjab / J&K) Gujarat Ports
North / Rajasthan Gujarat, 90% Mumbai ports, 20-30% Mumbai Traffic will till in favour of Gujarat system: on
West Maharashtra 10% Gujarat Ports ports, 70-80% the basis of proximity. Jodhpur has a natural
Gujarat Ports proximity to Mundra, proximal to DFC at Pali

North / UP Gujarat, 90% Mumbai ports, 90% Mumbai ports, Unlikely to shift to Gujarat system: 1) already
West Maharashtra 10% Gujarat Ports 10% Gujarat Ports shipping to JNPT, and closer to JNPT; 2) natural
access from Kanpur to JNPT
North / MP/Central India Gujarat, 90% Mumbai ports, 90% Mumbai ports, No shift to Gujarat ports -centres in MP (Indore
West Maharashtra 10% Gujarat Ports 10% Gujarat Ports / Gwalior / Bhopal) are 200 -300 km closer to
Mumbai than Gujarat ports. Region already
North / Gujarat (Ahmedabad) Gujarat, 78% Mumbai ports, 20-30% Mumbai Traffic likely to shift in favour of Gujarat ports-
West Maharashtra 22% Gujarat Ports ports, 70-80% Ahmedabad is around 100 to 200 Km closer to
Gujarat Ports Gujarat ports than Mumbai (Ahmedabad is
closest to Pipavav)
North / Gujarat (South Gujarat) Gujarat, 94% Mumbai ports, 94% Mumbai ports, No Shift to Gujarat likely: Surat and Vapi are
West Maharashtra 6% Gujarat Ports 6% Gujarat Ports much closer to Mumbai than Gujarat, Vadodra is
almost equidistant.
North / Gujarat (Kutch & Gujarat, Saurashtra: 34% to All Traffic to All traffic expected to move away from Mumbai
West Saurashtra) Maharashtra JNPT, 66% to Gujarat Ports to Gujarat Ports due to proximity
Gujarat Ports;
Kutch: All traffic to
Gujarat Ports
North / Maharashtra Maharashtra All traffic to All traffic to Traffic will continue to access Mumbai ports
West Mumbai Ports Mumbai Ports
East WB, Orissa & Kolkata / Haldia All Traffic to All Traffic to
Jharkhand Kolkata/Haldia Kolkata/Haldia
South Kerela Cochin All traffic to Cochin All traffic to
West Cochin
South Karnataka, AP, TN Chennai, All Traffic to Traffic to
East Tuticorin, Vizag Chennai, Tuticorin, Chennai/Ennore,
Vizag Tuticorin, Vizag/

1. Develop large port in Mumbai System (JNPT IV/Rewas): The Maharashtra port system
handled around 56% of all container traffic in 2005-06, the port system is expected to maintain
it’s dominance in overall container trade in future. The two new capacities being created at the
Maharashtra system are – the fourth container berth at JNP (JNPT IV) and the Rewas Port. While
Rewas Port is being developed privately, JNPT IV presents a substantive investment opportunity.
After completion of its second phase, JNPT IV is expected to have a handling capacity of 4.4

44 | P a g e Ritesh Bhusari
million TEUs. Phase 1 and Phase 2 capacities if 2.2 million TEUs each are expected to come on
stream in 2010-11 and 2012-13 respectively. There is a high degree of certainty of cargo build up
at JNPT 4. The existing 2 terminals at JNP - JNPT and NSICT (DPW) – are already operating at
full capacity. Being the largest container port in the country, there is presence of entire logistics
value chain serving the port. The port is also well connected by important liner services. The
upcoming projects of NMSEZ/MiSEZ can also add to cargo potential. On the other hand, JNPT 4
may face high competition in case large capacities are planned at Rewas Port, as of now plans for
Rewas are not clearly known. Also, Backup land area and cargo evacuation facilities at JNP are
constrained. New terminal development will need to rely on NMSEZ for additional backup land.
2. Develop terminals in Gujarat (Mundra/Kandla) and Maharashtra systems: While ports in
Maharashtra will continue to handle the highest container volumes, Gujarat ports are expected to
see the highest growth in traffic as they are close to the Northern hinterland and presently handle
relatively low container volumes. Existing transport infrastructure to Gujarat ports is constrained,
as there is a need for change in traction from electric to diesel locomotives, which makes transit
time higher from TKD vis-à-vis JNP. This constraint, however, will be addressed with the
construction on the western DFC, as Ahmedabad-Palanpur has been identified as the preferred
alignment, this will better serve Gujarat ports as compared to than the other alignment option via
Ratlam (MP)-Kota. The construction of DFC will facilitate the shift of Northern Hinterland cargo
to Gujarat ports. Currently, the two ports in the Gujarat system with announced capacity
expansion plans are Mundra and Kandla; therefore, these present an investment opportunity. The
port of Hazira is also being developed, and is planned to have a container terminal, the port is
situated around 25 Km from Surat and 120 nautical miles north of Mumbai. The port of Mundra
offers good core infrastructure of draft, birth length and availability of backup land that would be
useful for future expansions. The immediate investment opportunity, however, is for investing at
JNPT 4, which envisages an addition of 4.4 million TEUs. Thus if both opportunities for
investing in Gujarat and Mumbai are perused then this will involve large capital investments.
3. Strategy for East Coast: On the East Coast, terminal opportunities are likely in Chennai/
Ennore systems. Both Chennai/ Ennore are likely to play a leading role in Intra-Asia trade.
Ennore as a site would be preferable to Chennai, as Chennai has land constraints and would face
congestion problems. In addition, Ennore is adjoining an industrial area that can provide captive
traffic and has good transport connectivity.

Privatization of ports

I n the last decades, we have witnessed profound changes in maritime transport, which have
modified the balance between capital and labor at seaports. Ports are now increasingly becoming
capital-intensive industries, while in the past they used to be labor-intensive. This change has
generated an excess of employees in most ports around the world. The development of containerized
transport is another factor that has significantly modified ports' operations. Containers have allowed

45 | P a g e Ritesh Bhusari
large cost reductions in cargo handling, but they have also imposed new needs on ports in terms of
equipment (gantry cranes, specialized terminals improved pavements, etc). On the other hand,
economies of scale obtained by the transport of large quantities of containers and bulk cargoes have
led to the building of increasingly larger specialized ships that require substantial port investments in
new infrastructures and equipment which bring the concept of PPP (Public Private Participation) in
port industry.

Even though the public sector has usually been present as port organizer, it is not evident that public
organization of this industry is necessarily the best option. In particular, tighter public budgets and
increasing fiscal needs have led many countries to seek private participation in seaports. Private firms'
involvement in ports is not new for the provision of services, since many firms were already present in
ports around the world, but it is quite innovative in the construction of port infrastructures.
International experiences have shown that private participation in both these aspects (operations and
infrastructure) has improved significantly the outcomes of some seaports. These experiences make a
case for a revision of the traditional organization of seaports around the world, changes that will
prepare ports for a more competitive market and less financial help from governments

Reasons for Private Participation:

1. First, the private sector is able to provide services at lower costs than the public sector, since it
usually is more productive and efficient.
2. If private capital is used to finance costs, the public sector can devote its scarce resources to other
priority areas.
3. Last, the private sector is generally more able to search for business opportunities, and to respond
more swiftly than the public sector to changing conditions in competitive markets
Due to above reasons Major ports experiencing a fall in traffic while on other side there is a significant
growth in traffic at Minor ports which can be understood from under mentioned chart.

Chart10: Trends in traffic share

46 | P a g e Ritesh Bhusari
Trend in Traffic Share





1996 1998 2000 2002 2004 2006 2008

Major Port Traffic Share % Minor Port Traffic Share %

Source: DoS GoI

Currently, share of major ports is around 71.5% of the total traffic flows while for non major ports it
was 28.5% in 2006-07. Over the last seven years, cargo traffic at major ports grew at a CAGR of 8.6%
and in comparison; cargo traffic at non major ports grew at a CAGR of 13.3%. As a result, the share of
minor ports in handling the cargo has increased from 18.9% in FY2000 to 28.5% in FY2007.

Forms of private participation at seaports and regulation needs:

1. Selling the seaport as a whole (full privatization)

2. Transferring to the private sector parts of the seaport for their development by private operators
(Build, Operate and Own, BOO). Short-term financial needs justify the use of this form of
3. Introducing private participation in the port in order to build or renovate facilities required for
service provision (Build/Rehabilitate, Operate and Transfer, BOT or ROT)
4. Captive Jetties Model: To encourage the port based industries, private companies have been
granted permission to construct captive jetties. As per this model, port based industries created
port facilities to import their industrial raw material and to export finished products. This jetties
are allowed to use till the industry continued by the respective companies.
Under this model:

I. Jetties are Develop & Maintain by Port based industries

II. Concession in port charges, Operational freedom
III. The current captive jetty policy allows 80% set-off on wharfage against the capital cost
including interest during construction period.
IV. Examples: Koteswar (Sanghi), Sikka (Reliance -DCC), Muldwarka (GACL), Pipavav
(L&T-NCCL), Dahej (Indo Gulf, IPCL) Hazira – (Reliance- Essar-L&T GACL)
5. Creating a new independent company, from the combination of efforts from two or more firms:
Joint-Venture. However this mode has not been popular, mainly because no reliable
47 | P a g e Ritesh Bhusari
parameters have crystallized for benchmarking the terms for entering in to a joint venture. JV
route is ideal in case where Government shareholding should be at max 49% & the
management control should be with the private operator.
6. Leasing: in some cases, port authorities simply rent port assets to be used by private operators
during a fixed period, and thus they obtain income from contract fees
7. Licensing: in this case the port authority allows operators to provide some services which only
require relatively simple equipment, and thus assets are generally owned by private operators
8. Management contract: The port of Bristol (UK) is an example of this type of contract, where
facilities are owned by the local government, but the port is managed privately
While choosing among the various options for private participation one need to consider
following two cases:

I. Services that do not require an exclusive use of infrastructure or superstructure port facilities:
Within this group, there are services such as pilotage, towing, and the other ancillary services to
ships and crew

II. Services that require exclusive use of assets: These services require the use of one of the
scarcest resources at seaports (space). Thus, within this group, we would include terminals for
cargo handling, storage areas, repairing docks and fuel suppliers. It is more complicated to
introduce private participation in these services, since operators need to use assets that are
considered to be optimally owned by the port authority

PPP in Indian Context:

The Major Port Trust Act, 1963 permits private sector participation in ports. Also, FDI up to 100%
under automatic route is permitted for construction & maintenance of ports & harbors. The
Government has put in place a scheme for private sector participation in major ports, mainly in
container terminals, specialized cargo berths for handling bulk, break bulk, multipurpose & specialized
cargo, warehousing/storage facilities, dry docking & ship repair facilities. The preferred route under
the scheme for selection of the private operator is through open competitive bidding & the mode of
participation is on BOT basis, with a concession period not exceeding 30 years. Other than full
controlling or operating private participation in ports two more new areas could be Polatage &
Dredging Operations.

Privatization Experience: Major ports

Till date, the government has approved 17 private or captive projects worth INR bl 61. Of these, 13 are
with a total capacity addition of around 38.8 million tonnes per annum (mtpa) and an investment of
around INR bl 26 is operational. Private interest has mainly been restricted to container terminals.
P&O was the first company to sign a BOT contract for a container terminal with a major port, when it
received the contract to develop a container terminal at JNPT in 1997. There has been interest in

48 | P a g e Ritesh Bhusari
setting up captive facilities in major ports since the late 1980s. BPCL and IOC have captive oil jetties
in several major ports.

Privatization Experience: Minor Ports

The state of Gujarat has been most successful in attracting private sector interest. Gujarat Pipavav Port
Limited (Maersk, PSA), Mundra Port & SEZ (the Adani Group) and Gujarat Chemical Port Terminal
Limited have been developed as joint venture with private players. Reliance operates captive jetties at
Jamnagar port, Gujarat, to cater to Reliance's refinery in Jamnagar. It has also invested in captive
jetties at Sikka port. However, the last two years have seen an increase in private activity in minor
ports all over the country.

Institutional Reforms & Corporatisation:

Corporatisation of Port Trust is expected to result in better accessibility to funds; creation of a Board-
managed corporate entity & facilitates disinvestments. On the other hand, corporatisation with
revaluing asset will push up tariffs while port users will not see any change in the quality of service, if
such move is not supported by reforms required to achieve the desired result. So Institutional reforms
need to be gradual & involved the following process:

1. Granting financial & operational autonomy to individual port management, thereby limiting
Governmental interventions
2. Separation of regulatory & management functions so as to commercialize the latter area
3. Improved access to long term capital & project finance
4. Unbundling of various services & privatization of identified areas including disinvestments

Gateway port an emerging opportunity

A round 50% to 55% of India’s container traffic volume is transshipped over international hub
ports. Of this transshipped container traffic, ports of Singapore, Colombo, and Dubai account
for more than 50% of the volume As a step back from international transshipment hubs, a few large
container ports in India will emerge as “gateway ports”, these in turn will be aggregation points for
India’s EXIM container traffic. These gateway ports would be serviced by either mainline vessels, or
will be serviced by liners transporting between them and larger transshipment hubs. Currently nearly
all domestic transshipment traffic is handled at Jawaharlal Nehru Port (the port also handles 53 % of
all laden container cargo). In 2005-06 JNP handled (176,000 TEU) 97% of all transshipment cargo
handled at Indian ports. The only other ports handling transshipment cargo were Mumbai (5,000 TEU)
and Visakhapatnam.

The likeliness of ports emerging as gateways will depend on a multitude of factors, these are:

49 | P a g e Ritesh Bhusari
 Infrastructure: Draft availability, Berth size, Backup land area
 Multimodal access: Rail and Road connectivity, Efficiency of cargo evacuation
 Operational efficiency
 Patronage by major liners / global terminal operators
 Proximity to East-West trade route
 Container traffic potential of immediate hinterland
After critically analyzing Indian ports for above mentioned factors the ports of JNP, Vallarpadam,
Mundra, Ennore, and Chennai are the most likely candidates for emerging as gateway container ports.
Following observations can be made by critically analyzing the strengths & weaknesses of different
ports to emerge as a strong contender for “Gateway Port”

1. Mundra port in Gujarat has seen swift increase in traffic flows in recent years, in 2005-06 it
handled around 0.3 million TEUs of containers (more that the combined traffic of Kandla and
Pipavav). The port has excellent core infrastructure in terms of draft, birth size and backup area.
It however currently suffers from less than optimal cargo evacuation efficiency, and is also
distant from the East-West container route. Also, its current level of cargo traffic is far less than
ports in Maharashtra
2. Currently, the ports on the western coastline transship majority of their containers to Dubai,
Colombo. Only JNPT handles some trans-shipment on its own. While the port has many
positives in terms of traffic volumes and efficiency of existing private operators, it is constrained
due to shortage of backup area and congestion in evacuation of cargo.
3. Chennai handles more than half of the total traffic of the hinterland. However, like Mumbai, the
port suffers from a huge congestion problem. There is also not adequate storage infrastructure.
The connectivity to the NH is through city roads which remain congested. Moreover, the port has
a draft of only 10.7 –11.4m which is not suitable for larger vessels.
4. With the center's go-ahead Vallarpaddam is expected to start operations by 2010 with an initial
capacity of 1 mn TEUs. The port has a planned deep draft of 15m, and is proximal to the East-
west trade route. With the uncertainty over Vizhinjam, it is safe to assume that Vallarpaddam will
be the most probable site for emergence as a gateway port along the western coastline. The port,
however, is yet to come on stream and its immediate hinterland has limited cargo potential.
5. Ennore has not yet started its container terminal. However, going forward Ennore shall assume
great importance on account of its proximity with one of the largest ports in South India:
Chennai. The port also has a draft of 15m and an ability to handle vessels greater than 8000
TEUs. The port however, is at an early stage of development and its immediate hinterland has
moderate cargo potential.

Strong International contenders of Indian Ports for Transshipment:

50 | P a g e Ritesh Bhusari
Ports of Singapore, Dubai & Colombo are the strong competitors of Indian Ports in the race of
becoming Gateway Ports, due to their superior Infrastructure & Operational efficiency over Indian
Ports. In the present scenario around 50% to 55% of India’s container traffic volume is transshipped
over international hub ports. Of this transshipped container traffic, ports of Singapore, Colombo, and
Dubai account for more than 50% of the volume. Currently nearly all domestic transshipment traffic is
handled at Jawaharlal Nehru Port (the port also handles 53 % of all laden container cargo). In 2005-06
JNP handled 97% (176,000 TEU) of all transshipment cargo handled at Indian ports. The only other
ports handling transshipment cargo are Mumbai and Vishakapatnam. (Source: MoC&I GoI)

Chart 11: Share in Transshipped cargo

% Share in Transshipped Cargo




Singapore Colombo Dubai Port Kelang Port Salalah Others

Source: MoC, GoI

Chart 12: Portwise Transshipment Cargo

Portwise Transshipment Cargo

200 178


3 0 3
Loaded Container Empties Total Transshipment
Type of Container
JNPT Momugao

Source: MoC, GoI

Advantage India:

Even though due to infrastructural and operational inefficiency Indian Ports are lagging behind in the
race of becoming Gateway Port, but one unbeatable advantage that India has which gives India an
incomparable edge over other competitive ports is strategic geographical location, as India is at
midway in shipping routes to join East-West seaports.

International Shipping Routes:

Fig 4: International shipping routes

51 | P a g e Ritesh Bhusari
Source: International Maritime Organization

India’s proximity to international shipping routes:

Fig5: India’s proximity to international shipping routes

Source: Source: International Maritime Organization

Financial Statistics
1. EBITDA margins for all major ports, put together, are expected to rise steadily from 32% in
2007-08 to 49% in 2011-12. Robust margins are expected on the back of decreasing employee
costs, change in business model towards higher contribution from concession fee income, and
operating leverage. Net profit for the 12 major ports, put together, is expected to increase from

52 | P a g e Ritesh Bhusari
INR 14.9 bl in 2007-08 to INR 31.1 bl in 2011-12 at a CAGR of 20%. The net profit margin is
also expected to improve from 27% in 2007-08 to 38% in 2011-12
2. Cargo related charges are the most important category of revenue, in 2007- 08 this is INR bl
25.61 & for 2013/14 it will be INR bl 31.84 this is 34% of total revenue. Vessel related charges
form the second category is important. It will be around INR bl 26.64 for 2013-14, which is 28%
of revenue. But all ports planned to use BOT contracts for development in terminals. As a result
the incremental revenue for cargo related charges will be collected by the BOT operators on their
3. The highest increase is projected to be in concession fees and lease, and 4 fold increase to INR
21.46, which makes it the most important category of revenues. The highest increase in operating
revenue comes from Ennore, however the starting point for Ennore is rather low since this a
relatively new port. Other ports with high increases in operating revenue are Kandla, JNPT,
Cochin and Tuticorin, but relatively low increases are coming from Paradip and Mormugao (each
4% per year)
4. Total operating expenses increased from INR bl 37.29 in 2007-08 to INR 44.41 in 2013-14.
Profit after tax (net earnings) for the 12 Major Ports of India is projected at INR 14.94 in 2007-
08, rising to INR 39.50 in 2013-14. The highest increase is in Ennore with 137% each year,
followed by Cochin (91% per year). Only Kolkata and Tuticorin are projected with a decrease in
5. The solvency for Kandla and JNPT will increase to 98% in 2013-14; the solvency for all Ports
will increase except for Tuticorin, in Tuticorin the solvency will decrease to 42%, which will be
the lowest ratio of all ports. By the year 2013-14 there will be 4 ports without long-term loans,
these ports are not using their borrowing capacity, only one port (Tuticorin) increasing their long-
term loans with a substantial amount.
6. The 12 Major Ports of India project to invest more than INR bl 160 from their own resources
during the 7-year period (2007-08 to2013-14), over the same period the 12 major Ports expect
the private sector to invest some INR bl 250 via BOT contracts. At the end of the 7- year period
the internal funds available for investments in fixed assets have augmented to INR 160. The own
equity for the 12 Major Ports at the end of the 7-year period amounted to more than INR bl 380.
Assuming a normal debt equity ratio as 1 to 1 (in line with TAMP); which indicates a borrowing
capacity of INR bl 380. At the end of the 7-year period the outstanding long term loans amounted
to INR bl 26.05. The unused part of the borrowing capacity is more than INR bl 350.


I ndia's fast-accelerating trade will create huge opportunities in port infrastructure. Traffic in all ports
is estimated to increase at a CAGR of 11.1 per cent - from 469 MT in FY07 to 1008.95 MT in
FY12. The Planning Commission states that major ports need to add a 546 MT capacity during FY07
53 | P a g e Ritesh Bhusari
also during period of 2011-12, taking the total capacity to 1,002 MT from 456 MT in FY06. The total
required investment in major ports during 2007-12 is estimated to be INR bl 689, INR bl 129 towards
container terminals; INR bl 129 towards berths for petroleum oil and lubricants; INR bl 129 towards
other cargo berths and INR bl 86 for capital dredging. A major proportion of investment, INR bl
368.68 (over 50 per cent of the total), is expected to come from public-private participation

So, on concluding this study report I believe that Indian Ports have been performing well from last
decade due to Policies adopted by the Government mainly due to Liberalization, but still Indian Ports
are way behind as compared to International counterparts this is mainly due to Operational inefficiency
& Infrastructural inadequacy. Reason behind this is very apparent, that is scarcity of funds coming
from Government, now to overcome this problem Port’s organizational setup is in transformation
phase, from Public Service model to Landlord model where in Private sector participation will play a
crucial role & thus help Indian Ports not only to match but to overtake International Ports & becomes a
strong contender to emerge as a Gateway Port & Transshipment Hub for Asia Pacific. All these
indicating towards a good investment opportunity in the Indian Ports which we must welcome

54 | P a g e Ritesh Bhusari

COVERAGE CMP INR 570 (5/09/08)

Scrip code:
592921 (BSE),
MSEZ.IN (Bloomberg),
MPSE.BO (Reuters),
Mkt Cap: 334 bn,

Avg. daily vol: 1.56 mn shares
52 week H/L:

Share holding pattern:

From the below Share holding

Pattern it can be conclude that

Controlling stake is in the hands
of promoters & hence on the
positive side it increases
operating efficiency & quick
decision making process. But on

negative side of coin company
has risk associated with

Stock Movement:

Monthly Returns:


Investments Rationale:
Growing Financials (from FY07 to FY08):
 Net sales increased by 41% from 5.8 INR bl to 8.7 INR bl
led by growing EXIM in the country & back up by
55 | P a g e Ritesh Bhusari
hinterland connectivity also due to strategic location & improved operating efficiency, which
fetches traffic from Mumbai, Kandla & JNPT.

 Improvement in EBIT margin from 40% to 60% for port operations was led by a better cargo
mix and productivity gains. The contribution from high margin cargo (crude and container) to
overall traffic increased from 48% in FY07 to 53% in FY08. Also EBITDA margin grew by
20% from 68 to 81%.

 Capex has increased by 140% from 5.7 to 13.7 INR bl which signifies strong investments

 Equity capital has diluted by 11%, but company has given an indication that there will be no
further Equity dilution. Where as management can raise funds through more debt as there is
sufficient headroom to raise more debt since company’s Net-worth is 26.17 INR bl & its
present debt 20.68 INR bl

 PAT grew by 12% from 1.8 INR bl to 2.1 INR bl (197% CAGR from FY04-FY08). Whereas
PBT shows a robust growth trend it grew by 108% YoY from 1.7 to 6.3 INR bl (221% CAGR
from FY04-FY08

 EPS grew by 7% from 5.19 to 5.51 which again indicating improving earning for company

 Upfront premium income from the lease of land to SEZ units for the year stood at Rs 828mn
(Rs 309.8mn pertaining to premium income for agreements was signed prior to FY08). Against
the 150 acres that were leased to SEZ units in FY08, I have forecasted 300 acres & 750 acres
for FY09E & FY10E respectively. Expected earning for FY10E depends heavily on the
income from SEZ operations (~55% contribution).

 Market Cap grew by 59% from 139.25 INR bl to 221.54 INR bl which signifies better liquidity
in Market

Due to economies of Scale Company’s operating expenses has decline by 6% from 1.94 to 1.83 INR
bl, whereas it’s financial cost increased by 71%, but PBT grew by 108% which subdue interest

56 | P a g e Ritesh Bhusari
Current ratio increased by 44% from 2.42 to 3.49, Acid test ratio increased by 45% from 2.37 to 3.44,
Cash ratio up by 735% from 0.28 to 2.32, Debt to Equity & Debt ratio has fell by 54 & 30%
respectively. Whereas Interest coverage ratio has improved marginally by 16% from 3.77 to 4.37

Growth driven by Cargo:

T otal cargo volumes grew by 56% CAGR from 11.8 MMT to 28.8 MMT from FY06 to FY08. I
expect cargo volumes to register ~40% CAGR over FY08-10E, mainly led by better cargo
throughput at new terminals.

Specifically crude cargo grew by CAGR 742% from 0.1 MMT (FY06) to 7.1 MMT (FY08) &
container traffic grew at CAGR 54% from 3.6 MMT (FY06) to 8.5 MMT (FY08), which led to higher
profit margin.

Traffic at port 1,624 vessels called at port which is 43% more than a year back (1,138)

From above graphs it is very much clear that traffic at port has shown CAGR 55% from FY06-FY08 &
stands on 29 MMT in FY08 with 7th rank among all ports. More specifically the traffic of Crude &
Container has gone up which led to high profit margin.

57 | P a g e Ritesh Bhusari
From the chart below it is clear that for FY08 most of the revenue came from SEZ business & next to
that crude contribute 17% & 12% contributed from container cargo handling. With the growing
containerization this contribution will further improve.

Macro Economic Factors:

I ndian Ports growing at a CAGR of 11% for last 5 years FY08 Total cargo handled ~ 649 MMT
(Major Port 464 MMT & Minor Port 185 MMT) YOY growths 11.9%

Only two privately owned fully operational landlord ports: Mundra & Pipav combine Cargo handled
32.9 MMT which is 18% of cargo handled by Minor Ports

Current Capacity of Indian Ports is 765 MMT which currently operating at 85%, still shortfall of 150
MMT. According to Planning Commission Report capacity addition of 1575 MMT by 2012

Areas of business:

58 | P a g e Ritesh Bhusari
Port: Mundra Port & Dahej Port
SEZ: Special conomic Zone – Mundra
ICD’s: Dry Port Network
Logistic: Container Train Operations
Subsidiaries of company:

SN Name of Company Country of Proportion of

Incorporation Ownership Interest


1 Mundra Aviation Limited Cayman 100.00


2 MPSEZ Utilities Private Limited India 100.00

3 Rajasthan SEZ Private Limited India 100.00

4 Inland Conware Private Limited India 100.00

5 Adani Logistics Limited India 100.00

6 Gujarat Adani Aviation Private Limited India 100.00

7 Inland Conware (Ludhiana) Private Limited (Subsidiary of Inland India 100.00

Conware Private Limited)

8 Mundra SEZ Textile and Apparel Park Private Limited (MITAP) India 88.53

9 Adani Petronet Dahej Pvt. Ltd. (Joint Venture) India 50.00

MPSEZ was incorporated as Gujarat Adani Port Ltd in 1998. The company commenced phase
operations in October, 1998 and full operations in October, 2001. MPSEZ was initially promoted by
Adani Port Ltd (APL) and Gujarat Port Infrastructure Development Company Ltd (GPIDC), a Gujarat
government undertaking. APL promoters bought out the stake of GPIDC’s stake in MPSEZ and APL
was merged with MPSEZ. Further Mundra Special Economic Zone (MSEZ) and Adani Chemicals Ltd
(ACL) were merged with MPSEZ in April, 2006.

The company has an exclusive right to develop and operate Mundra Port and related facilities for 30
years pursuant to the Concession Agreement entered on February 17, 2001 with the Gujarat Maritime
Board (GMB) and the Gujarat government, making it one of the first port-based multiproduct SEZs in

MPSEZL’s port is principally engaged in providing port services for: (i) Bulk cargo, (ii) Container
cargo, (iii) Crude oil cargo & (iv) Value added port services, including railway services between
Mundra Port and Adipur. In addition, MPSEZ also generates income from land related & infrastructure
activities also from rail related services.

Advantage Mundra:

59 | P a g e Ritesh Bhusari
MPSEZ is one of the first private sector ports in India. With a strong competitive edge such as deep
water draft facility, connectivity to the hinterland, SEZ and the increasing industrial area close to the
port, the company is one of the early entrants in the port business. The growing industrial base in the
country has increased the volumes at a CAGR of 43 percent from FY03-FY07. The entry of MPSEZ
into container business and ICD business will provide end-to-end logistics solutions to its clients.

Location Advantage:

Mundra Port has a depth of 17.5 meters which offers the deepest waters on the Indian coast. Mundra
Port has a deep water draft which ranges from approximately 15 meters to 32 meters in depth at a short
distance from the shore. This makes it one of the deepest water draft depths on the west coast of India,
which enables it to handle the future generation of large size vessels carrying bulk, container and crude
oil cargo. Further, because of the natural protection provided by its location, Mundra Port is able to
handle cargo throughout the year in all weather conditions, including during severe weather of the
Monsoon season characterized by high rains, winds and waves, with minimal costs, delays and
damages that often impact other more exposed ports.

Mundra Port is strategically located with respect to the northern and western hinterland, to which it is
well-connected by both railways and roadways. This area generates nearly 70 percent of India's
containerized international trade. Mundra Port's location near the entrance of the Gulf of Kutch on the
northwest coast of India places it near major maritime trade routes. It is ideally positioned as an
important hub for foreign trade to serve imports from and exports to the Middle East, Asia, Africa and
other foreign destinations. Thus MPSEZ is well positioned to handle the increased foreign trade from
northern states.

Mundra Port is connected by rail, road and pipeline to the transportation network of India, particularly
the inland regions of western and northern India. Mundra port is connected to Indian railways through
a broad gauge link, having a distance advantage through Gandhidham-Palanpur route of 218 kms.
Further there is a certain gauge conversion being implemented by Indian Railway which enables the
direct rail connectivity of Mundra Port to upper Punjab regions resulting in distance advantage of 450
Kms over ports in Mumbai. There is a four-lane approach road connected to Mundra which is linked to
national and state highway thus reducing the travel distance by 206 km from Mundra to Delhi. Mundra
port is directly connected to IOCL’s refinery in Panipat and HPCL transports liquid petroleum from
Mundra to inland regions in Northern India. Thus the existing rail, road, pipeline network and
available land for future transportation provide MPSEZ a competitive advantage in attracting larger
volumes of Cargo.

Relationship Advantage:

60 | P a g e Ritesh Bhusari
MPSEZL will benefit from its strategic arrangements and relationships with wide range of third-party
customers that operate at or use the port, including the container sub-concessionaire MICT and the
Indian Railways. Indian Oil Corporation, Indian Farmers Fertilizers Cooperative, Food Corporation of
India and some of the Adani Group companies such as Adani Enterprises and Adani Wilmar are the
major users of the port services. Strategic arrangement with the Indian Railways and MICT allows
Mundra Port & SEZ to get revenue share for the infrastructure created by it. It gets a share of the
revenue on the cargo moved on Mundra-Adipur railway track. Similar revenue-sharing agreement is in
place for the private container terminal operation at the port. Mundra Port is connected by rail, road &
pipeline to the transportation network of India, particularly the inland regions of western & northern
India including Delhi. Railways & roadways are important links for the transportation of goods to &
from any port to the cargo centers at Mundra Port. The multi-model connectivity through sea, air and
rail link in the SEZ would make product delivery efficient and cheap.

Growing order book:

The company has already entered into a few strategic long term contractual agreements, which provide
the company with guaranteed cargo volumes and revenues. The company already has long term
arrangements with MICT, as Container Sub-concessionaire for its container operations at Mundra Port
and IOCL for its crude oil cargo operations. Going forward, the company signed a MoU with Maruti –
Suzuki India to board 2, 00,000 cars per annum, also port has entered in to agreement with Adani
Power & TATA power importing coal for their new power plant each having a capacity of 2600MW &
2000 MW

Tariff Advantage:

Mundra port is not classified as a “Major Port” and is therefore not governed by TAMP (which
regulates and fixes various port-related tariffs for major port). Since Mundra port falls out of the ambit
of TAMP, it can set its tariffs and changes in accordance with the market rates. Thus as a result the
profitability of the port is not constrained by the TAMP rates further MPSEZ is a private enterprise
where 100 percent of the revenue goes to the company unlike other government operated ports (With
regards to JNPT 50 percent of revenue is shared with the government).

Expanding Capacities:

MPSEZL plans to handle cargo volume of 50 million tonnes by 2010 from the present 19.8 million
tonnes. Long term development plans include waterfront for an additional 14 Berths Basin, which can
handle Cape-size vessels. Approximately 15,665 acres of land is available with the port. Its portfolio of
land area includes approximately 4,000 meters of undeveloped waterfront land, which can be utilized
to expand port operations.

61 | P a g e Ritesh Bhusari
Presently ~22 percent of containerized cargo moves by rail, CONCOR was the only container train
operator in India. The Indian Railway’s than permitted private agencies to run container train
operations for Category I and Category II routes. The licence fees for Category I and Category II are
Rs 50 crore and Rs10 crore respectively. Adani Logistics have obtained License for container train
operations on Category-1 routes (JNPT/Mumbai ports to the National Capital region and consequently
all over India). Adani Logistics proposes to procure 20 rakes for which orders have been placed with
suppliers. Under the Joint Venture MPSEZ will hold 50% in Adani Logistics

The current name plate capacity at the port is estimated at 75mn MT (20mn MT bulk, 30mn MT
container and 25mn MT crude). Although maximum throughput at the current product mix is estimated
at 55mn MT Given that the forecasted cargo traffic will reach 47mn MT in FY10E, a further expansion
of port capacity is expected in FY11.

SEZ land currently under possession is 18,480 acres and an additional 13,873 acres is still being
acquired. Total notified area for the multi-product SEZ stands at 6753 acres. According to the
management, more than 1000 acres of land have been already allocated to co-developers and industrial

The bulk cargo facility includes multipurpose terminal I berth and Terminal II berth which is fully
operational from March, 2007. Terminal I comprises of four cargo berths and one barge berth capable
of handling four bulk cargo vessels simultaneously. The Terminal II comprises of four berths used for
bulk cargo. MPSEZ uses a mechanized system for handling cargo. MPSEZ has a storage capacity of
more than 800000 square meters in the back up area at Mundra port.

The bulk liquid tank is comprised of 81 tanks with a combined capacity of 342000 kilolitres to store
various liquid. The container cargo operates through container terminal 1 and Container Terminal 2.
The container Terminal 1 is sub-commissioned to MICT and the terminal is designed to handle direct
berthing of large vessels with capacity of up to 8000 TEU’s. Terminal 1 is designed to handle
approximately 1.25 million TEU’s per year. In August, 2007 the construction of Container terminal II
was completed with a 450 meters of berth length and an additional 181 meters of berth length is
expected to be constructed. Terminal II can handle ~ 1.25 million TEU’s per year.

Solid Cargo Port Terminal is under sub-concession by Petronet LNG Limited (30 year concession,
starting 2005). Cargo profile comprises of coal, cement/clinker, fertilizers, food grains, steel products,
iron ore and other minerals etc.MPSEZ intends to acquire 74 percent stake in Joint Venture. The port
Terminal has a total capacity of 15 million tones (Jetty with two berth of 260 mts and 180 mts, with
Mechanized cargo handling system).The Port terminal is Strategically located in Highly Industrialized
Zone (Baroda – Mumbai).

62 | P a g e Ritesh Bhusari
The crude oil facility at Mundra port is currently focused on one single point mooring terminal (SPM).
The SPM is operated through a long term agreement with IOCL. The SPM can handle large crude
carriers of 360000 deadweight tonnage (DWT) and an overall capacity of 25 million tones per year

MPSEZ has received approval to develop a multi-product SEZ at Mundra and the surrounding areas
making it one of the first ports based multi-product SEZ in India. The company has received
notification from the GOI aggregating 2658 hectares. With the merger of ACL and MSEZ with
MPSEZ, the company now has ~ 15665 acres of land and 16688 acres of additional land are at various
stages of being transferred.

Double stacking on trains to aid container traffic growth - the Bhildi and Luni gauge conversion is to
be completed by Jan 2009. This will enable double stacking of container trains leaving from Mundra to
Bathinda and will also reduce transit time vis-à-vis Mumbai to Batinda.

MPSEZ has signed the port service agreement with coastal Gujarat Power ltd in April, 2007 for
Construction of terminal for handling coal & other cargo in the vicinity of power projects at Mundra
Port This Terminal will predominantly handle coal for Tata’s 4000 MW thermal UMPP Project The
terminal has a Capacity of 30 MT, with provisions for expansion. Terminal comprises of Jetty with an
approach road with a depth of approx 22 meters. The terminal will be capable of berthing 2 vessels
simultaneously with a capacity of 220,000 DWT (Cape Size). The terminal will have an Elaborate Ship
Un loader, Conveyor System at berth and stacker reclaimer at yard for mechanical handling. The
Commercial operation of the firm is targeted to commission by January 2011.

MPSEZ will hold 50 percent stake in ICPL a company involved in the business of Inland Container
Depots. ICPL’s project will involve in development of ~ 14 inland container depots to handle
international and domestic trade. The initial phase of development has created a network of ICD
including seven in the northern hinterland of upper west coast ports of India

ICPL, a wholly owned subsidiary for ICD (Inland Container Depots) operations, has acquired 600
acres of land in 14 locations. The construction of its 1st depot at PATIL has been completed and
notification was received in April 2008. Considering the current investment phase and execution
delays, we expect significant revenue contribution only from FY10.

ALL (Adani Logistics Ltd), a wholly owned subsidiary for container train operations has 2 rakes under
operation and an additional 4 have already commenced operation from June 2008. The management
intends to increase the total number of rakes to 20 by FY09.

63 | P a g e Ritesh Bhusari
Two Stage Valuation Model for MUNDRA PORT SEZ:
I chose two stage valuation model for the valuation of Mundra Port SEZ, assuming the firm as a
growing entity. The port presently in high growth & will be in high growth stage for next 10 years. But
after 10 years Mundra may not be able to continue the same growth rate, because of competition &
privatization of other Govt. ports & hence based on these assumptions, 10 years hence the company
may experience stable growth rate

Current Inputs

Current EBIT INR 4,717,080,000.00

Current Depreciation INR 1,022,870,000.00
Current Tax Rate 42.17%
Current Revenues INR 8,170,230,000.00
Capital Invested (Book Value) INR 51,358,792,000.00
High Growth Period

Length of high-growth period (n) 10

Reinvestment Rate (as % of EBIT(1-t)) 71%
Growth rate during period (g) 83%
Cost of Equity during period 50%
After-tax Cost of Debt 17%
Debt Ratio (D / (D + E)) 44%
Stable Growth Period

Growth rate in steady state 5.73%

Return on equity in stable growth 8%
Reinvestment Rate in Stable growth 10%
Cost of Equity in steady state 50%
After-tax Cost of Debt 17%
Debt Ratio (D / (D + E)) 44.10%

64 | P a g e Ritesh Bhusari

Enterprise Value INR 251,582,328,990.58

EV/EBIT 53.33
EV/EBIT(1-t) 92.22
EV/Sales 30.79
EV/Capital Invested 4.90
Equity Value INR 230,902,128,990.58
Equity Value Per Share INR 607.64

From this valuation model the present equity value per share comes as INR 607.64

Financial Overview of MUNDRA PORT SEZ: Figures in INR (Figures in bracket

indicate negative value)

Variance Variance
03/2008 03/2007 03/2006
(%) (%)
Net Sales 8,170,230,000.0 0.41 5,811,740,000.0 0.51 3,845,400,000.0
Cost Of Goods Sold 1,835,850,000.0 (0.06) 1,943,700,000.0 0.81 1,072,290,000.0
Gross Profit 6,334,380,000.0 0.64 3,868,040,000.0 0.39 2,773,110,000.0
Operating Expenses 1,835,850,000.0 (0.06) 1,943,700,000.0 0.58 1,231,660,000.0
Operating Ratio 22% (0.33) 33% 0.04 32%
Operating Profit 6,334,380,000.0 0.64 3,868,040,000.0 0.48 2,613,740,000.0
Other Income
279,040,000.0 3.82 57,850,000.0 (0.63) 158,130,000.0
CapEx 13,709,670,000.0 1.40 5,716,530,000.0 0.40 4,087,430,000.0
EBITDA 6,613,420,000.0 0.68 3,925,890,000.0 0.42 2,771,870,000.0
EBITDA Margin 81% 0.20 68% (0.06) 0.7
Less: Depreciation &
1,022,870,000.0 0.27 807,000,000.0 0.31 614,170,000.0
EBIT 4,717,080,000.0 0.98 2,378,050,000.0 0.39 1,712,770,000.0
EBIT Margin 0.6 0.41 0.4 (0.08) 0.4
Less: Interest 1,078,790,000.0 0.71 631,000,000.0 0.14 551,170,000.0
PBT 3,638,290,000.0 1.08 1,747,050,000.0 0.50 1,161,600,000.0
Less: Tax 1,534,090,000.0 (13.31) (124,640,000.0) (1.25) 489,190,000.0
PAT 2,104,200,000.0 0.12 1,871,690,000.0 1.78 672,410,000.0
Equity Share Capital
4,006,800,000.0 0.11 3,604,290,000.0 0.97 1,830,200,000.0
(INR 10 par)
Reserve & Surplus 22,164,490,000.0 4.77 3,842,800,000.0 (0.08) 4,155,370,000.0

65 | P a g e Ritesh Bhusari
Net worth 26,171,290,000.0 2.51 7,447,090,000.0 0.24 5,985,570,000.0
Total Shareholder Funds 26,215,770,000.0 2.51 7,475,200,000.0 0.25 5,985,570,000.0
Total Debt 20,680,200,000.0 0.61 12,822,400,000.0 0.33 9,618,200,000.0
Capital Employed 51,358,792,000.0 1.00 25,665,370,000.0 0.37
Net Fixed Assets 36,672,830,000.0 0.53 24,019,700,000.0 0.27
Investments 8,886,270,000.0 10.25 789,900,000.0 (0.36) 1,228,200,000.0
Current Asset 13,583,472,000.0 1.56 5,315,690,000.0 0.97 2,696,800,000.0
Current Liability 3,891,460,000.0 0.77 2,200,510,000.0 0.07 2,052,610,000.0
Net Current Assets
9,692,012,000.0 2.11 3,115,180,000.0 3.84 644,190,000.0
(Working Capital)
Non Cash Working
662,942,000.0 (0.74) 2,503,780,000.0 (9.02) (312,310,000.0)
Total Assets 55,250,252,000.0 0.98 27,865,880,000.0 0.34
Market Price Per Share 583.0 (0.39) 962.9 -
Average Total No. of
380,000,000.0 0.05 360,429,000.0 0.97 183,020,000.0
Outstanding Equity Shares
Market Capitalization 221,540,000,000.0 (0.36) 347,057,084,100.0
Cash & Bank 9,029,070,000.0 13.77 611,400,000.0 (0.36) 956,500,000.0
CPS 23.76 13.01 1.70 (0.68) 5.23
EPS 5.54 0.07 5.19 0.41 3.67
CEPS 4.29 12.14 0.33 (0.77) 1.42
Price/Earning (P/E) 105.29 (0.43) 185.38
BVPS 68.87 2.33 20.66 (0.37) 32.70
P/BVPS 8.47 (0.82) 46.60
Minority Interest 17.31 0.22 14.22 0.00
(0.39) 346,445,684,114.22
Equity Value 1
(0.35) 359,268,084,114.22
Enterprise Value (EV) 1
EV/EBIT 49.44 (0.67) 151.08
EV/EBITDA 35.26 (0.61) 91.51
EV/Sales 28.54 (0.54) 61.82
EV/Capital Employed 4.54 (0.68) 14.00
DPS 1.58 0.58 1.00 (0.49) 1.97
Dividend Payout Ratio 28.56% 0.48 19.25% (0.64) 53.60%
Plough back Ratio 71.44% (0.12) 80.75% 0.74 46.40%
Dividend Yield 0.27% 1.61 0.10%
Key Ratios
Liquidity Ratios
Current Ratio 3.49 0.44 2.42 0.84 1.31
Acid-test Ratio 3.44 0.45 2.37 0.83 1.29
Cash Ratio 2.32 7.35 0.28 (0.40) 0.47
Leverage Ratios
Debt-Equity Ratio 0.79 (0.54) 1.72 0.07 1.61
Debt Ratio 0.44 (0.30) 0.63 0.02 0.62
Debt Asset Ratio 0.37 (0.19) 0.46 (0.00) 0.46
Interest Coverage Ratio 4.37 0.16 3.77 0.21 3.11
Modified Interest
6.13 (0.01) 6.22 0.24 5.03
Coverage Ratio
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Tax Rate 0.42 (6.91) (0.07) (1.17) 0.42
Fixed Charge Coverage
0.18 0.04 0.17 0.07 0.16
Turnover Ratios
Fixed Assets T/O Ratio 0.22 (0.08) 0.24 0.19 0.20
Total Asset T/O Ratio 0.15 (0.29) 0.21 0.13 0.18
Inventory T/O Ratio 9.93 (0.47) 18.64 (0.20) 23.26
Debtors T/O Ratio 2.71 0.50 1.80 (0.63) 4.91
Profitability Ratios
Gross Profit Margin
77.53% 0.16 66.56% (0.08) 72.11%
Net Profit Margin Ratio 25.75% (0.20) 32.21% 0.84 17.49%
Earning Power 8.54% 0.00 8.53% 0.04 8.22%
ROA 3.81% (0.43) 6.72% 1.08 3.23%
ROC/ROIC/ROCE 9.18% (0.01) 9.27% 0.02 9.11%
RONW 8.04% (0.68) 25.13% 1.24 11.23%
Growth Rate 5.73% (0.72) 20.22% 2.88 5.21%
ROE 8.03% (0.68) 25.04% 1.23 11.23%

Equity Value (0.39) 346,445,684,114.22
Equity Value Per Share 559.2392895 (0.42) 961.2036881

Mundra Competitor Analysis:

From above data it is clear that though MUNDRA PORT SEZ is lagging behind from these two strong
contenders on many fronts mainly because they are well established & working over a period of time
in this port business still MUNDRA has surpass them on Capital employed parameter which indicates
heavy investments & thus transforming this investment into future growth. Moreover Mumbai &

67 | P a g e Ritesh Bhusari
Kandla are operating at full capacity whereas Mundra till date has not achieved full capacity utilization
& further management is intending to add more capacity, which signaling better future prospectus.

Balance Sheet of MUNDRA PORT SEZ:

Q1 FY09 Q1 FY09 Q4 FY08
Audited Unaudited Unaudited 2008/03 2007/03 2006/03 2005/03 2004/03
Share Capital Equity 3,632.30 4,006.79 4,006.79 4,006.80 3,604.29 1,830.20 1,830.25 1,428.10
Share Capital Preference 0.00 0.00 0.00 28.11 28.11 0.00 0.00 0.00
Total Share Capital 3,632.30 4,006.79 4,006.79 4,034.91 3,632.40 1,830.20 1,830.25 1,428.10
Share Application Money 16.37 0.00 0.00 0.00 0.00
Reserves & Surplus 22,164.49 3,842.80 4,155.37 3,893.90 3,254.80
Total Shareholders Funds 3,632.30 4,006.79 4,006.79 26,215.77 7,475.20 5,985.57 5,724.15 4,682.90
Secured Loans 20,442.45 12,813.40 8,919.20 5,898.50 2,841.90
Unsecured Loans 237.75 9.00 699.00 345.30 0.00
Total Debt 0.00 0.00 0.00 20,680.20 12,822.40 9,618.20 6,243.80 2,841.90
Deferred Tax Assets 0.00 0.00 319.90 389.40 0.00
Deferred Tax Liability 1,770.83 507.00 924.20 604.60 0.00
Net Deferred Tax 0.00 0.00 0.00 1,770.83 507.00 604.30 215.20 0.00
Amount Received Under
Long Term Infrastructure 6,567.91 7,158.73 4,634.50 4,586.80 4,552.80
Usage agreement
Minority Interest 17.31 14.22 0.00 0.00 0.00
Total Liabilities 3,632.30 4,006.79 4,006.79 55,252.02 27,977.55 20,842.57 12,077.60

Gross Block 33,394.90 22,349.40 16,457.60 12,211.80 7,282.20
Less : Accumulated
3,656.02 2,509.10 1,608.10 948.90 339.80
Less: Impairment of
0.00 0.00 0.00 0.00 0.00
Net Block 0.00 0.00 0.00 29,738.88 19,840.30 14,849.50 11,262.90 6,942.40
Add: Capital Work in
6,933.95 4,179.40 4,121.70 4,371.50 1,965.50
Lease Adjustment 0.00 0.00 0.00 0.00 0.00
Fixed Assets (Net) 0.00 0.00 0.00 36,672.83 24,019.70 18,971.20 8,907.90
Investments 8,886.27 789.90 1,228.20 320.30 2,060.60

Current Assets, Loans &

Inventories 184.93 104.30 46.10 30.50 1.60
Sundry Debtors 3,018.89 3,221.20 783.80 426.80 24.70
Cash and Bank 9,029.07 611.40 956.50 305.80 41.60
Loans and Advances 899.14 1,260.61 809.60 691.40 1,741.50
Other Current Assets 451.44 118.18 100.80
Non Cash Current Assets 0.00 0.00 0.00 4,554.40 4,704.29 1,740.30 1,148.70 1,767.80
Total Current Assets 0.00 0.00 0.00 13,583.47 5,315.69 2,696.80 1,454.50 1,809.40

Less : Current Liabilities

and Provisions

68 | P a g e Ritesh Bhusari
Current Liabilities 2,938.72 2,022.09 1,464.40 677.99 826.90
Provisions 952.74 178.42 588.21 74.91 6.90
Total Current Liabilities 0.00 0.00 0.00 3,891.46 2,200.51 2,052.61 752.90 833.80
Non cash Working
0.00 0.00 0.00 662.94 2,503.78 (312.31) 395.80 934.00
Net Current Assets
0.00 0.00 0.00 9,692.01 3,115.18 644.19 701.60 975.60
(Working Capital)
Miscellaneous Expenses
0.86 58.90 0.00 113.70 133.30
not written off
Total Assets 0.00 0.00 0.00 55,250.25 27,865.88 20,843.59 11,810.80

Profit & Loss A/C for MUNDRA PORT SEZ:

Q1 FY09 Q1 FY09 Q4 FY08
2008/03 2007/03 2006/03 2005/03 2004/03
Audited Unaudited Unaudited

Sales Turnover 1,238.20 2,537.27 3,286.49 8,170.23 5,811.74 3,845.40 2,640.90 1,056.48
Excise Duty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Sales 1,238.20 2,537.27 3,286.49 8,170.23 5,811.74 3,845.40 2,640.90 1,056.48

Other Income 13.40 200.40 209.10 279.04 57.85 158.13 108.50 53.95
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Income 1,251.60 2,737.67 3,495.59 8,449.27 5,869.59 4,003.53 2,749.40 1,110.43

% of Net Sales 101% 108% 106% 103% 101% 104% 104% 105%

293.90 456.40 594.63 1,835.85 1,943.70 1,072.29 697.50 238.73
Staff Cost 61.01 86.08 87.08 266.10 147.92 88.24 95.90 50.20
176.40 223.93 255.84 710.68 577.45 529.25 228.60 110.10
& Other Expenses
Financial Cost
188.30 396.04 319.47 1,078.79 631.00 551.17 335.85 450.94
Depreciation &
207.78 311.60 291.47 1,022.87 807.00 614.17 481.04 241.88
Loss on Sale of
Investment in an 0.00 0.00 0.00 0.35 0.00 0.00 0.00 0.00
Total Expenditure 927.39 1,474.05 1,548.49 4,914.64 4,107.07 2,855.12 1,838.89 1,091.85

% of Net Sales 75% 58% 47% 60% 71% 74% 70% 103%

Profit Before Tax

, Extra ordinary Items & 324.21 1,263.62 1,947.10 3,534.63 1,762.52 1,148.41 910.51 18.58
Prior Period
Add: Prior
0.00 0.00 (12.95) (15.47) 13.19 (5.80) 15.74
Period Income (Expenses)
PBT & EO 324.21 1,263.62 1,947.10 3,521.68 1,747.05 1,161.60 904.71 34.32
Add:EO 76.98 0.00 116.61 0.00 0.00 0.00 0.00

PBT 401.19 1,263.62 1,947.10 3,638.29 1,747.05 1,161.60 904.71 34.32

% of Net Sales 32% 50% 59% 45% 30% 30% 34% 3%

Less: Tax 129.61 295.57 1,036.00 1,534.09 (124.64) 489.19 286.10 6.92
PAT 271.58 968.05 911.10 2,104.20 1,871.69 672.41 618.61 27.40

% of Net Sales 22% 38% 28% 26% 32% 17% 23% 3%

Add: Goodwill 0.00 12.90 0.00 0.00 10.80 0.00

Add: Share in
0.00 (13.00) 0.40 0.00 0.00 0.00
Profit (Loss) of Associates
Net Profit
Attributable to 271.58 968.05 911.10 2,104.10 1,872.09 672.41 629.41 27.40

69 | P a g e Ritesh Bhusari
Add: Balance
Forward from Previous 0.00 948.10 876.20 670.13 51.91 12.00
Preoperative & 0.00 0.00 36.09 0.00 0.00 0.00
Miscellaneous Expenses
Available For 271.58 968.05 911.10 3,052.20 2,712.20 1,342.54 681.32 39.40

Appropriation A/C
Less: Transfer to
(from) Debenture 0.00 0.00 20.13 3.50 9.70 (12.50)
Less: Transfer to
Capital Redemption 0.00 1.40 1.41 1.41 1.40 0.00
Less: General
0.00 106.71 0.00 50.43 0.00 0.00
Less: Transfer
for Issue of Bonus Equity 0.00 0.00 1,382.14 0.00 0.00 0.00
Less: Transfer to
0.00 0.00 0.00 0.03 0.03 0.00
Preference Dividend
Less: Equity
0.00 601.02 360.43 360.43 0.00 0.00
Less: Tax On
0.00 0.00 0.00 50.55 0.00 0.00
Balance Carried
271.58 968.05 911.10 2,343.07 948.09 876.19 670.19 51.90
to Balance Sheet

EPS (Basic &

Average No. of
363.23 400.68 400.68 380.00 360.43 183.02 183.03 142.81
Equity Shares
EPS Including
0.75 2.42 2.27 5.54 5.19 3.67 3.44 0.19
Extra Ordinary Items
EPS Excluding
0.54 2.42 2.27 5.33 5.19 3.67 3.43 0.19
Extra Ordinary Items

DPS (Equity) 0.00 0.00 0.00 1.58 1.00 1.97 0.00 0.00
Dividend Payout
0.00% 0.00% 0.00% 28.56% 19.25% 53.60% 0.00% 0.00%
Ratio (Equity)

70 | P a g e Ritesh Bhusari
Any unfavorable regulation regarding working of SEZs could severely hamper MPSEZ’s valuations.
MPSEZ operates its businesses as concessions from various government and quasi government
organizations like Gujarat Maritime Board. Cancellation, termination, or non-renewal of such
concession agreements could impact MPSEZ’s business.

 With Indian merchandise export and import registering healthy double digit growth, the
country’s port traffic’s growth momentum is expected to continue and the traffic is estimated to
reach 980 mn tonnes (at CAGR of 12%) over 2011-12E.

 MPSEZ is one of the leading non-captive private sector ports in India, providing services for
various cargo categories. Along with diversifying cargo, MPSEZ has access to rail, road, and
pipeline network across India, which has helped it tie up strategic arrangements with customers
and position itself as the preferred destination for customers. The company’s SEZ development
and future capacity expansion plans are expected to keep it ahead of the industry.

 MPSEZ has shown a CAGR of 46% in the top line & 77% in the bottom-line in the last 3 years
(FY06- FY08). Mundra Port & SEZ has a double advantage of an operator of a functioning
port as well as a developer of SEZ. EPS on post issue equity of Rs 400.68 crore is Rs 5.19
which now has reached to Rs 5.54 (2008/03) which signaling improving earnings.

 MPSEZ competes primarily against Kandla port, Mumbai port, JNPT and GMB managed
ports. The key competitive advantage to MPSEZ is its cost advantage because of the location of
the port, good proximity, connectivity and natural characteristics such as deep draft capable of
handling large vessels. Adding to advantage, its integrated business model makes it
advantageous over its competitors. Further MPSEZ is a private enterprise where 100 percent
of the revenue goes to the company unlike other govt. operated ports.

71 | P a g e Ritesh Bhusari
 From valuation model I derived the equity value per share
at INR 607.41 from current financials (FY08), whereas stock
is trading at INR 570.75 (5/09/08) which seems to be
attractive to bag it while looking at its future growth

1. 11th Five Year Plan 2007-12

2. A Report on Emerging Investment Opportunity in Port Development By DoS, GoI

3. A Report on National Maritime Development Programme by DoS, GoI

4. A Review by RBI on 2006-07 and Revised Estimates of National Income 2007-08

5. Economic Survey 2006-2007

6. Foreign Trade EXIM Data

7. Foreign Trade Policy 2004-09

8. India Container Potential Study - Final Report - May 2007

9. International Maritime Organization (IMO)

10. Indian Port Association Port Development Plan- Volume 1

11. Ministry of Petroleum & Natural Gas, GoI

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