130 likes | 290 Views
Indian Port Sector By Hans Ole Madsen – CEO, South Asia for A.P. Moller-Maersk. Port Pipavav. About A.P. Moller-Maersk. Established in Svendborg, Denmark in 1904 More than 110,000 employees in over 125 countries Global group turnover of USD 40 Billion. Main Business Activities.
E N D
Indian Port Sector By Hans Ole Madsen – CEO, South Asia for A.P. Moller-Maersk Port Pipavav
About A.P. Moller-Maersk • Established in Svendborg, Denmark in 1904 • More than 110,000 employees in over 125 countries • Global group turnover of USD 40 Billion
Main Business Activities Container Shipping related activities • Maersk Line and Safmarine are market leaders in global container services • Network of more than 550 container vessels and 1.4 million TEU • APM Terminals operates more than 45 terminals • Multimodal Supply Chain Management services through Maersk Logistics
Main Business Activities Other Shipping related activities • Transport of crude oil, refined products and gas by Maersk Tankers • Maersk Supply provides supply vessels for anchor-handling, cable laying etc • Maersk Contractors is involved in mobile production units and drilling rigs • Over 260 vessels and rigs operated
Main Business Activities Energy • Production and exploration of oil and gas • Production Activities in Denmark, United Kingdom, Qatar, Algeria and Kazakhstan • Exploration activities in the North Sea (Denmark, United Kingdom, Norway and Germany), Algeria, Morocco, Angola, Oman, Brazil, Surinam, Colombia and Turkmenistan
Main Business Activities Retail and other industry • Supermarkets and hypermarkets in Europe and UK • Brands include the Føtex stores, the Netto stores and the Bilka hypermarkets • Shipyards in Denmark, Germany and the Baltic countries • Industrial production of plastic products • Star Air engaged in contract parcel flying in Europe • 50% ownership of Martinair Holland engaged in air freights and charter service for passenger
Our Presence in India • Maersk Line operating in India since 1952 • The leading container shipping line in India • Nationwide presence through 33 offices • Employs over 5,500 people in India • Established the 1st Private CFS in Nhava Sheva in 1994 • Pioneered the back-office (BPO) concept in the maritime industry • Established the 1st Maritime Training Academy by a foreign shipping line in India • Among the 1st participants in the privatisation of rail freight in India
APM Terminals in India • Located in Gujarat on the west coast of India to handle containers, bulk and liquid cargo • Container volumes handled to exceed 250,000 in 2006 • Projected Container terminal capacity of 1.3 mio TEU • Bulk cargo in 2006 apx 2.5 mio tons • Total quay length of 725 metres • The 3rd Container Terminal at Nhava Sheva harbour within JNPT • Converted existing bulk terminal on BOT for 30 years • Joint Venture with CONCOR • Handling capacity to be 1.4 mio TEU • Total quay length 712 metres • Draft limited to channel draft of 12.5 metres
Current Scenario • Growth projections indicate continued demand for capacity • Encouraging response from both local & international companies for Port development projects in India • Major international container port operators have a presence in India and are eyeing new projects
Regulatory Environment • Model Concession Agreement • Major v/s Minor Ports • Tariff Regulation • Major Port Trusts Act
Financing • Need for long term financing/debt options • Current interest rates high thus increasing the overall cost and risk • Viability gap funding scope to be broadened
Public Private Partnership in Ports • Private investment attracted towards port projects with reasonable returns and payback period • Support infrastructure to be developed by the Government to ensure success of the PPP model • Government to undertake infrastructural development where payback is commercially unviable but essential for overall development such as capital channel dredging, breakwater, rail/road linkages etc • PPP to be used as a tool to speed up infrastructure development and not as a replacement of Government spending
Productivity and Efficiency • Berth productivity has improved at some Indian ports from 20 moves per hour in the 90’s to 70-80 moves per hour • The benchmark is now higher • Emma Maersk, the worlds largest container vessel, had berth productivity of 540 moves per hour at Yantian