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    Background paper onport connectivity in

    Gujarat

    Confederation of Indian Industry

    Background Paper Prepared byDeloitte Touch Tohmatsu India Private Limited

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    Contents

    1. Executive summary

    2. Introduction

    3. Indian ports scenario

    3.1. Traffic handled

    3.2. Overview of port connectivity

    4. Ports in Gujarat

    4.1. Traffic handled

    4.2. Hinterland & O-D analysis4.3. Issues

    5. State inland connectivity

    5.1. Road linkage

    5.2. Rail linkage

    5.3. Storage facilites

    6. Measures required

    3

    4

    5

    5

    7

    9

    9

    911

    12

    14

    14

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    2. Introduction

    4

    The impressive economic performance of the country

    has directly impacted the encouraging growth rate in

    sea port cargo volumes. It is accepted that around 95

    per cent of the country's trade by volume (70 per cent in

    terms of value) is moved by sea. India's maritime sector

    has significantly expanded in the last two decades, both

    in terms of number of ports operating and cargo volume

    handled. The governments both state & central in

    collaboration with various stakeholders have accordingly

    taken steps for accelerating capacity creation at Indian

    ports. While the priority for improved port performance

    usually focuses on its waterfront and other landside

    development within the perimeter of the port;

    development of the supporting infrastructure in terms of

    road and rail connectivity also acts as an impetus and a

    catalyst to a superior port performance.

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    3. Indian ports scenario

    3.1. Traffic handled

    India is endowed with an extensive coastline of 7,517

    km. There are 12 major ports under the jurisdiction of

    the union government and 187 non major ports spread

    across nine coastal states regulated by the respective

    State Government. However only 48 non-major ports are

    handling cargo. While major ports handle approx 73%

    of total cargo traffic, non-major ports account for the

    balance 27 %( in 1996-97, the share was around 10%).

    (As on Mar 31,2007)

    Kandla

    Mumbai

    JNPT

    Mormugao

    New Mangalore

    Cochin

    Tuticorin

    Chennai

    Ennore

    Vizag

    Paradip

    Kolkatta / Haldia

    Total

    67.00

    43.75

    51.70

    29.50

    38.00

    19.35

    20.55

    48.80

    13.00

    55.75

    66.40

    54.80

    508.6

    Table 1: Capacity & cargo traffic at major ports

    Source: Indian Ports Association (IPA) and CMIE

    45.91

    44.19

    37.83

    31.69

    34.45

    13.89

    17.14

    47.25

    9.17

    55.80

    33.11

    53.14

    423.57

    2005-06 2006-07 April-Nov2007

    52.98

    52.37

    44.82

    34.24

    32.04

    15.31

    18.00

    53.41

    10.71

    56.39

    38.52

    55.05

    463.84

    41.90

    38.16

    35.17

    19.70

    24.27

    10.40

    13.48

    37.80

    7.63

    42.13

    26.86

    36.04

    333.54

    Port Capacity Cargo traffic

    Existing capacity and cargo traffic at major ports (Million tonnes)

    During the year 2006-07, the combined cargo traffic

    handled by all major and non-major ports amounted to

    634.84 Million Tonnes (MT) with a growth of 10.24%

    over the previous year. The major ports have handled a

    traffic of 463.84 MT registering a growth rate of 9.69%

    over 2005-06. The share of non-major ports cargo

    traffic was 171 MT with a growth of 11.76% over

    2005-06.

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    As per the report by the Committee of Secretaries GoI,

    it is estimated that the traffic for all the ports is likely to

    grow at a compounded annual rate of growth (CARG)

    of 7.57% till 2013-14 and would reach around 961.55

    MT by 2013-14.

    The CARG for traffic at major ports for the same period

    is estimated at 7.43% and would have cargo traffic of

    around 705.84 MT, while the CARG for the non-major

    ports would be around 8.47% with cargo volume of

    about 250 MT. The highest CARG is expected in

    container traffic, which is at 17.30%.

    At present, the country has an annual capacity of

    around 750 MT of which 508 MT is of the Major Ports

    and the balance 242 MT is of the non-major ports.

    The government has envisaged the need for increasing

    the total port capacity to 1,500 MT by the end of the

    eleventh Five Year Plan (2011-12) and to 2,000 MT by

    the end of Twelfth Five Year Plan (2016-17)

    Figure 1 : Growth of traffic at Indian ports

    Source: Indian Ports Association (IPA)

    Growth of traffic between :1950-51 and 1980-81 (30 years) + 61 million tonnes1980-81 and 1990-91 (10 years) + 72 million tonnes1990-91 and 2000-01 (10 years) + 217 million tonnes2000-01 and 2006-07 (07 years) + 266 million tonnes

    Major ports Non-major ports

    91 50-5

    196

    -611

    0 7197

    0-19

    -811 8

    0200

    0-010

    22 0

    1-0 002-03

    2 0-

    2 03 0

    4004

    -052 02 0

    5-0600

    -072

    6 0-0

    2 07

    8

    0

    100

    200

    300

    400

    500

    600

    In Mn tonnes

    Figure 2 : Commodity wise cargo traffic at majorports (2006-07) (%)

    Source: Indian Ports Association (IPA)

    POL Iron ore

    17.36

    33.27

    12.98

    15.84

    17.51

    3.04

    Coal

    Container Fertilizers Other cargo

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    7

    3.2. Overview of port connectivity

    Resulting from the dynamic growth registered by the

    ports in cargo volumes, enhanced port connectivity has

    become essential to facilitate an improved port

    performance.

    Cargo Group Moved By

    Crude Oil

    POL

    LPG

    LNG

    Thermal Coal

    (Loading Port)(Unloading Port)

    Coking Coal

    Iron OreMormugao

    New MangaloreTamil NaduAndhra PradeshOrissa, W.B

    Food Grain

    Fertilizer Raw Material

    Other Dry Bulk

    Other Liquid Bulk

    Containers(Share of Railwaysincreases, when traffic ordistance increases)

    Pipeline 100%

    Railway 25%Road 25%Pipeline 50%

    Railway 50%Road 50%

    Pipeline 100%

    Railway 100%Conveyor 80%Railway 20%

    Railway 100%

    IWT 80%Railway 20%Pipeline 100%Railway 100%Railway 100%Railway 100%

    Railway 70%

    Road 30%

    Railway 30%Road 30%IWT 15%Conveyor 15%

    Railway 30%Road 70%

    Pipeline 20%Railway 20%Road 60%

    Railway 45%Road 55%

    Table 2: Indicative mode of evacuation /transportation for respective cargo group

    Source: Report of the Committtee of Secretaries, GoI

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    Congestions near the ports are not an uncommon

    phenomenon. This problem is further aggravated by

    poor rail and road connectivity / capacity.

    National Highways Authority of India (NHAI) has the

    mandate for providing road connectivity to the major

    ports. The port connectivity project was included under

    Phase I of the National Highways Development

    Programme (NHDP). Of the 380 kms envisaged, NHAI

    has so far completed 112 kms, while projects covering

    248 kms are under implementation and balance yet to

    be awarded.

    Rail Vikas Nigam Limited (RVNL), incorporated in 2003 is

    the nodal agency for boosting the rail connectivity toports and development of corridors to hinterland

    including multi-modal corridors for movement of

    containers. Details of rail port connectivity projects in

    Gujarat, Rajasthan & North undertaken by RVNL are

    indicated in Table 4.

    Some of the other major rail projects that have been

    planned include the Eastern dedicated rail corridor from

    Ludhiana to Sonnagar; the Western Dedicated Freight

    Corridor originating from JNPT to Dadri.

    Stretch NH No

    Gandhidham - Samakhiali

    Package I

    Gandhidham - SamakhialiPackage II

    Gandhidham - SamakhialiPackage III

    Total

    8A

    8A

    8A

    Table 3: Port connectivity projects undertaken byNHAI in Gujarat

    Source: NHAI

    Length (Km)

    18.00

    22.00

    16.16

    56.16 Project Type ofProject

    Delhi-Rewari

    Ajmer - Phulera-Ringus-Rewari

    Bhildi- Samdari

    Gandhidham -Palnapur

    Bharuch-Samni-Dahej

    Surat-Hajira

    GaugeConversion

    GaugeConversion

    GaugeConversion

    GaugeConversion

    GaugeConversion

    New Line

    Table 4: Rail port connectivity projects of RVNL inGujarat, Rajasthan & North Ind ia.

    Source: RVNL

    572.0

    295.0

    1,400.0

    313.0

    62.0

    30.0

    Length(Km)

    Est. Cost(Rs. Cr)

    State

    144.0

    480.0

    231.0

    453.0

    161.0

    130.0

    Delhi /Hary

    Raj

    Raj

    Guj

    Guj

    Guj

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    4. Ports in Gujarat

    9

    4.1. Traffic handled

    Gujarats port sector has shown rapid development due

    to the astute planning, clear policies, and focussed

    investment initiatives announced & driven by Gujarat

    Maritime Board and facilitated by the entrepreneurial

    spirit of the states businessmen. The state of Gujarat

    boasts of four important private ports viz Pipavav (Indias

    first private port), Mundra Port & SEZ, Dahej and Hazira.

    The state has 43 ports, of which Kandla is the major

    port, while the balance are non-major ports. Of the 42

    non-major ports, 19 are operational.

    In 2006-07, Gujarat handled around 185.42 million

    tonnes of cargo, with Kandla accounting for 29 % and

    the remaining 71 % being handled by the non-majorports. Gujarat has the distinction of handling the

    maximum non-major port cargo traffic in India. Figure 4

    indicates the growth trends in the traffic at the GMB

    ports (excluding Kandla & Vadinar)

    Estimates show the GMB ports are expected to handle

    cargo traffic to the tune of 324 MMTPA by 2015-16. To

    facilitate and meet the cargo projections, GMB has

    proposed the development of some new ports at

    Dholera; Positra; Simar; Vansi-Borsi; Mithivirdi; Bedi;Maroli; Suthrapada; Modhawa; Khambhat; Mahuva. The

    huge investments in the port sector would demand

    investments in the infrastructure facilities like roads and

    railways for faster and efficient handling of the cargo

    movement. With the development of the new ports

    with modern handling facilities, many of the ports in

    Gujarat would be acting as gateway ports for rest of the

    country, especially the North-West hinterland.

    Magdalla, Jafrabad, Mul-Dwarka, Sikka, Dahej and

    Jakhau are the locations of captive jetties currently used

    by various companies including Essar, Reliance, GujaratAmbuja, L&T, Kribhco, GSFC, IPCL, Sanghi Industries.

    The rest of the operational ports service the cargo from

    parts of Gujarat and from the North and Central India.

    An overview of the referred cargo belts is presented in

    the subsequent section.

    The hinterland for which the port acts as the Gateway

    can be classified into the three regions of primary,

    secondary and tertiary depending on the proximity of

    the hinterland to the port. The primary hinterland would

    be the immediate geographical area close to the port

    and a source of assured cargo to the port (say in the

    vicinity of 40-50 kms); the secondary hinterland can be

    defined as areas that have an option of two or more

    ports close by on a single coastline, while the tertiary

    4.2. Hinterland & O-D analysis

    Figure 3 : Port map of Gujarat

    Source: Gujarat Maritime Board

    Figure 4 : Growth trends in GMB Ports

    Source: Gujarat Infrastructure Development Board

    9189

    20

    199920

    0020

    01020220

    3020

    0420

    0520

    0620

    07020820

    090

    40

    60

    80

    100

    120

    140

    160

    180

    200

    In Mn tonnes

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    hinterland would be termed as geographical areas that

    have the alternative of using multiple coastline / ports.

    The cargo hinterland for the ports of Gujarat usually

    stretches from the areas of Gujarat, Rajasthan, Western

    U.P & Madhya Pradesh upto NCR, Punjab and Haryana.

    An overview of the profile of these cargo belts is

    indicated below.

    Gujarat Cargo Belts

    As per Gujarat Industries Commissionarate, the state

    accounts for 17.2% of fixed capital investment, 15.6%

    of value of production, 20.0% of Indias industrial

    output and 22.0% of Indias exports. Gujarat has

    achieved the distinction of being the most industrially

    developed state in India in respect of investment in

    industrial sector.

    In 1960s only four cities namely Ahmedabad, Baroda,

    Surat and Rajkot and some isolated locations witnessed

    industrial development.

    Today, the industrial development is widespread

    throughout the state.

    Saurashtra & Kutch Cargo belt

    The cargo regions of Saurashtra and Kutch include

    Amreli, Bhavnagar, Porbander, Veraval, Junagadh,

    Rajkot, and Surendranagar. While cargo belts in

    Saurashtra act as the primary hinterland to the port of

    Pipavav; those in Kutch & areas close to Central Gujarat

    act as the primary hinterland for Kandla & Mundra.

    The commodities imported in this belt are coal,

    fertilizers and food grains. Exports commodities include

    agriculture products and containers. The preferred mode

    of cargo movement of these belts to the ports of

    Kandla, Pipavav & Mundra is by road.

    Central & North Gujarat Belt

    This belt comprises of areas of Vadodara, Ahmedabad,

    Mehsana, Godra, Palanpur, Kadi, Anand, Khambat,

    Himat Nagar.

    Figure 5 : Growth Centres & Industrial Estates ofGujarat

    Source: Maps of India

    Figure 7 : Central & North Gujarat Cargo Belt

    Source: Maps of India & Deloitte Research

    Figure 6 : Kutch-Saurashtra Cargo Belt

    Source: Maps of India & Deloitte Research

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    11

    The containerized cargo export from this region moves

    through JNPT through ICD Ahmedabad due to good rail

    connectivity & availability of mother vessels. Import of

    bulk commodities like coal, fertilizers and food grains for

    this belt is usually through ports of Bedi, Magdalla,

    Mundra, Navlakhi, Pipavav and Kandla. Exports from this

    belt include pharmaceutical products, machinery,

    engineering goods etc.

    South Gujarat

    The regions in this cargo belt include Baruch, Ankleswar,

    Vapi, Valsad, and Surat. Most of the containerized

    exports from this region are routed to JNPT. Due to the

    proximity of the Mumbai ports for this region, it makes

    more economic sense to ship through Mumbai / JNPT.

    Road is the preferred mode of transport to JNPT for the

    cargo emanating from this belt.

    Other cargo belts

    Rajasthan Cargo belt under Southern Rajasthan

    (Chittodgarh, Udaipur, Kota, Siroi, Bilwara) is the primary

    hinterland for the ports of Kandla & Mundra and mode

    of inland transport is through road. The cargo belts of

    North Rajasthan (Jaipur, Jodhpur, Alwar, Bikaner) prefer

    JNPT due to good rail road network.

    National Capital Region Delhi, Dadri, Rewadi,

    Noida, Gaziabad, Gurgaon, Faridabad fall under this

    cargo belt. Around 75% of the containers from this

    cargo belt are routed through JNPT; with the balance

    routed to the ports of Pipavav, Mundra & Kandla in

    Gujarat.

    Western U.P & M.P The western U.P belt comprising

    of Moradabad, Saranpur, Meerut generates reasonable

    volume of EXIM cargo of which again around 75% are

    routed through the Mumbai region ports mainly

    because of good road connectivity. Cargo from Indore /

    Bhopal and parts of M.P are routed through Gujarat.

    Punjab, Haryana The cargo belt region comprises

    large volume of containerised cargo due to the presence

    of industrial towns of Ludhiana, Jalandhar and Amritsar.

    Majority of the cargo is routed to JNPT

    As observed from the above, a significant portion of thecargo from the secondary and tertiary hinterland

    especially the containerized cargo is routed to JNPT,

    though these belts are closer to ports in Gujarat. Some

    of the reasons why ports in Gujarat are unable to attract

    cargo from these belts are due to factors like lack of

    adequate shipping lines options, mother vessels not

    calling on ports in Gujarat, unavailability of direct

    connections by the existing shipping lines to important

    destinations, preference to FCL cargo over LCL cargo by

    ports in Gujarat, inadequate equipments available for

    stuffing & loading at ports, greater transit time, low

    awareness about the port facilities in Gujarat amongstthe shippers (importers / exporters), preference of the

    forwarders for JNPT. In addition, better inland

    connectivity to JNPT also acts as a significant factor that

    influences the decision of the Shippers to route their

    cargo to that port.

    4.3. Issues

    Figure 8 : South Gujarat Cargo Belt

    Source: Maps of India

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    Ports require an excellent supporting inland

    infrastructure to offer cost competitive solutions to its

    clients. While most of the ports in Gujarat are no doubt

    connected through rail and road as depicted in Table 5,

    there are issues related to the quality of inland

    connectivity that acts as the stumbling block in

    attracting more cargo and challenges seamless

    movement.

    It is imperative that with the development of growth

    centres like ports and industries, the supporting

    infrastructure of roads and railways must also beupgraded to reap the benefits of development driven by

    the referred growth centres. A significant portion of the

    containerized cargo generated within the state of

    Gujarat (and that which could be served by the ports in

    Gujarat, especially that of Central Gujarat) is serviced by

    JNPT.

    If these cargo volumes are routed through the ports in

    the state, the overall savings in transportation cost

    would have a ripple effect on the States GDP and

    facilitate further economic growth. In the event of

    better road & rail connectivity of the Gujarat cargo belts

    to these ports, the manufacturers would have a lessertransit time and hence a faster turnaround time of their

    cargo goods.

    5. State inland connectivity

    In addition, the hassles and time lost in interstate

    movement especially at the Octroi Check posts in

    Maharashtra would be averted. Ports of Pipavav &

    Mundra also offer the facility of double stack container

    trains, which can be leveraged by the shippers to reduce

    their overall transportation & shipment cost. The social

    benefits accrued due to the routing of the cargo to the

    Gujarat ports in terms of employment generation &

    technical skills upgradation of the personnel involved in

    the supply chain, development of ancillary support

    infrastructure around the port locations would also lead

    to a direct impact on the States economy & in turn theNational productivity.

    Superior & a dependable inland transportation

    infrastructure allow businesses to receive inputs to

    production facilities and to transport finished goods to

    overseas/ domestic market in an eff icient manner. A

    seamless inland transport system allows companies to

    lower overall transportation costs, which lowers

    production costs and enhances productivity and profits.

    It is therefore vital that the quality of the rail and road

    connectivity to the ports is enhanced.

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    13

    Ports Nearest rail link

    Bedi

    Bhavnagar

    Dahej

    GAPL

    GPPL

    Jafrabad

    Jakhau

    Mandvi

    Magdalla

    Mundra (Old)

    Navlakhi

    Okha

    Porbander

    Simar

    Vansi -Borsi

    Veraval

    Jamnagar Rly Station ( 7 Kms fromBedi)

    Connected by Broad Gauge (B.G)Line

    Bharuch Station

    57 k B.G rail line from Mundra portto Adipur station provides railconnectivity to National Railway grid

    Directly connected to hinterland byB.G rail network of railways

    B.G line available from Rajula whichis 22 kms away

    Nearest Railway station is Malaya

    -

    15 kms away from Magdalla Port (Sachin Yard)

    B.G line available from Gandhidhamto Adani Port

    Connected by BG railway line viaMaliya

    Connected by Broad Gauge (B.G)Line

    Connected by Broad Gauge (B.G)Line

    Nearest meter gauge railway line isat Delvada about 20 km

    BG rail is at a distance of 13 km atNavsari

    Narrow gauge line in port

    Source: Gujarat Maritime Board

    Road link

    Table 5: Existing Inland connectivity to some of the Gujarat Ports

    Connected to NH from Rajkot

    Connected with the State Highway

    Connected to Bharuch ( 45 kms) andVadodara ( 108 km) by road

    Connected to N H network via SH no 50via Anjar and SH no 6 via Gandhidham

    Port Pipavav has built a 11-km long 4 laneexpressway connecting port to NH 8E

    -

    120 km from Bhuj. Port connected toJakhau village ( 12 km away) by road

    52 kms away from Bhuj town &connected with coastal highway

    S.H - 2 kms from Port N.H 8 - 15 km awayfrom Port

    Connected to Gandhidham by road andthen by National Highway

    Road from port available connectingNational Highway at Morbi

    Connected by road to Jamnagar /Porbandar and from there by NationalHighway (NH)

    Connected by road to Rajkot and fromthere by National Highway (NH)

    Connected with coastal highway by avillage road of 8 km

    NH no 8 is about 35 km from the site

    Connected with Ahmedabad & coastalhighway by road

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    5.1. Road linkage

    Gujarat has an extensive road network and boasts of the

    largest percentage of paved roads in the country

    The Committee of Secretaries (CoS), GoI has

    recommended that minimum 4-lane road and double

    line rail connectivity must be provided for major ports.

    One can vouch for the recommendation of the CoS for

    the Kandla Port Trust road connectivity.

    The existing road linkage to the major port of Kandla is

    good. Internal Roads in Kandla Port have been

    broadened and strengthened and there is a four-lane

    smooth road connectivity to all the Port Trust Gates. This

    has been triggered by the Gandhidham - Samakhiali

    Packages I, II & III covering 56.2 km under the port

    connectivity scheme of NHAI. These port-road

    connectivity projects are being implemented through

    Special Purpose Vehicles (SPVs) formed by NHAI.

    It may be also worthwhile to consider implementing the

    recommendation of the CoS of having 4-lane road

    connectivity to the other ports in Gujarat that are

    already handling a reasonable cargo volume including

    Bedi, Dahej, Mundra, Pipavav, Hazira, Jafrabad,

    Magdalla, Mul-Dwarka, Navlakhi, Okha & Sikka. Most of

    the roads connecting the referred ports are either

    district roads/ village road.

    The Gujarat government had initiated a World Bank loan

    in 2000 to upgrade 850 km and periodic maintenanceof around 1,000 km of State Highways. However in

    spite of the said efforts of the Government, the present

    conditions of the roads to some of the above referred

    ports are not in a good shape, with the roads practically

    becoming inaccessible during the monsoons due to

    inadequate maintenance. The poor condition is

    compounded with the movement of heavy trailer axle

    load to & from the port and inherent deficiencies in

    structural thickness. For e.g. a stretch of road to Mundra

    10 kms prior to the port is damaged; certain portions of

    the road leading to Pipavav are congested. In case of

    cargo originating from South Gujarat, there is hugecongestion and bottleneck near Surat due to the

    presence of only one bridge connecting Surat Mumbai

    by road.

    The railways have always provided a crucial link to the

    various growth centres / economic hubs including ports.

    Railways have provided an efficient and safe mode of

    cargo transportation and over the past few years has

    attracted cargo traditionally moving by road.

    5.2. Rail linkage

    Figure 9 : Road network in Gujarat

    Source: Maps of India

    Road type

    National highway

    State highway

    Major district road

    Other district road

    Village road

    Total length

    Table 6: Status of road network in Gujarat

    Source: Roads & Building Dept, GoG

    Length (Km)

    3,260

    19,163

    20,858

    10,599

    21,042

    74,922

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    15

    At the moment there are no regular train services by

    CONCOR from ICD Ahmedabad / Vadodara to ports of

    Kandla, Mundra and Pipavav. This leads to the

    movement of the cargo from Ahmedabad /Vadodara

    ICD to JNPT. With the introduction of private container

    operators and increasing containerization of cargo,

    hopefully things should change. As indicated in Table 5,

    very few ports in Gujarat have an existing Broad Gauge

    rail siding at their port (though in some ports like

    Jafrabad, Magdalla which are captive ports, rail

    connectivity may not be required).

    There have been initiatives taken by the government

    and private entities to implement rail connectivity

    project to ports. These rail-port projects can be

    implemented through the SPV route, build-own-operate-transfer (BOOT) model, BOT annuity route or

    through private port railways.

    Port Rail SPVs

    i. Pipavav Railway Company Limited (PRCL)

    PRCL was established in 2000 and is the 50:50 Joint

    Venture Company of Indian Railways and the Gujarat

    Pipavav Port Ltd (GPPL). PRCL is the first infrastructure

    model of Public - Private Partnership in rail

    transportation and was set up to construct, maintain

    and operate 271 km long broad gauge railway line

    connecting Port of Pipavav to Surendranagar Junction.

    PRCL had initiated the first double stack train on Indian

    railways. PRCL are also planning to design special

    wagons for the movement of double stack and triple

    stack containers.

    ii. Kutch Railway Company Limited (KRC)

    Established in 2004, KRC is the joint venture of Rail

    Vikas Nigam Limited (RVNL), Kandla Port Trust (KPT),

    Gujarat Adani Port Ltd. (GAPL) and Government of

    Gujarat (GoG) for the gauge conversion of Gandhidham

    - Palanpur. The Gandhidham- Palanpur railway link is a

    crucial link connecting the Kandla Port & Mundra Port.

    The project involves providing Broad Gauge (BG) rail

    connectivity between Palanpur Jn station to

    Gandhidham Jn and dismantling of MG track and other

    work from Gandhidham Jn. KRC has already

    commissioned the Gandhidham-Palanpur Gauge

    Conversion Project by November, 2006 and the project

    in the very first year of operation has moved 8.5 MT of

    freight traffic. KRC has also obtained the mandate of

    gauge conversion of 223 Km meter gauge line from

    Bhildi in Gujarat to Samdari in Rajasthan, with an

    estimated cost of Rs. 345 Cr. These projects would bring

    Kandla and Mundra ports closer to North by more than

    250 Kms, making transportation through these ports

    more cost effective.

    iii. Bharuch Dahej Railway Company Ltd (BDRCL)

    Established in Jan-2007, the SPV is to implement the

    62.36-km Bharuch-Samni-Dahej gauge conversion

    project. The equity partners of the project are RVNL,

    Dahej SEZ Limited, Gujarat Maritime Board, Adani

    Petronet Port Private Limited and Gujarat Narmada

    Valley Fertilizers Limited.

    iv. Surat Hazira Railway Company

    A SPV for the implementation of a port connectivity

    project between Surat and Hazira port in Gujarat isproposed. The length of the connectivity will be about

    30 km and the estimated cost of the project is Rs 130

    crore. The partners in the SPV include RVNL, Essar

    Group, Hazira port, Gujarat Government's industrial

    promotion agency and Kribhco.

    In addition, a SPV for the rail connectivity of Dholera

    Port (north of Bhavnagar) is also on the cards.

    v. Dedicated Freight Corridor Corporation of India

    Limited

    The Dedicated Freight Corridor (DFC) project was

    conceived mainly due to the capacity constraints faced

    by the existing railway network. At present the freight

    and the passenger trains are using the same tracks

    causing delays.

    Figure 10 : Rail Network in Gujarat

    Source: Maps of India

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    The Construction for Phase I of the project is proposed

    to be completed by 2012. A special purpose vehicle,

    Dedicated Freight Corridor Corporation of India Limited

    (DFCCIL) will execute the project. It is proposed that

    DFCCIL will implement the project through a mix of EPCand PPP modes. The main route on both the corridors

    will be developed by DFCCIL, while the feeder routes

    shall be developed by Indian Railways.

    The Western Rail Freight Corridor would comprise of

    1483 km of a double line diesel track from JNPT to Dadri

    via Vadodara-Ahmedabad-Palanpur-Phulera-Rewari.

    Junction Stations between the existing railway system

    and the Western DFC would be provided at Vasai Road,

    Kosad/ Gothangam, Makarpura (Vadodara), Amli Road

    (Sabarmati), Palanpur, Marwar Jn., Phulera, Rewari and

    Pirthala Road. The focus of the DFC is to ensure high

    impact developments within 150 km distance on either

    side of alignment of DFC

    The traffic on the Western Corridor mainly comprises of

    containers from JNPT and Mumbai Port and ports of

    Pipavav, Mundra and Kandla destined for ICDs located in

    northern India, especially at Tughlakabad, Dadri and

    Dandharikalan. Besides Containers, other commodities

    moving on the Western DFC are POL, Fertilizers, Food

    grains, Salt, Coal, Iron & Steel and Cement. The rail

    share of container traffic on this corridor is slated to

    increase from 0.69 million TEUs in 2005-06 to 6.2

    million TEUs in 2021-22. The other commodities areprojected to increase from 23 million tonnes in 2005-06

    to 40 million tonnes in 2021-22. Once commissioned,

    the DFC along with the feeder routes to the ports in

    Gujarat will ensure sufficient capacity for increasing

    demand.

    Apart from the inland transport connectivity, adequate

    and quality CFSs / ICDs are also a pre-requisite for good

    port connectivity, since these are considered as

    extensions of ports. The primary functions of ICDs / CFSs

    involve receipt and dispatch / delivery of cargo, stuffing

    and stripping of containers, transit operations by rail/

    road to & from serving ports, customs clearance,

    consolidation and desegregation of Less-than-Container

    load (LCL) cargo, temporary storage of cargo and

    containers, reworking of containers, and maintenance

    and repair of container units.

    Following are the details of some of the ICDs / CFSs in

    Gujarat

    i. CONCOR operated

    CONCOR has rail served ICDs at Ankleswar, Sabarmati

    (Ahmedabad), Vadodara and Channi (near Vadodara);port container terminal at Gandhidham (Kandla) and

    pure domestic terminal at Khodiyar (Ahmedabad).

    ii. Central Warehouse Corporation (CWC) Operated

    CWC operates ICDs/ CFSs at Adalaj (Ahmedabad),

    Kandla (Gandhidham), Dasrath (Vadodara), Vapi, Kandla

    Port and warehouses at Pipavav.

    iii. Private CFSs

    These include Mundra International Container Terminal

    (MICT) CFS, Seabird CFS, Honey Comb CFS, Mundhra

    CFS, Saurashtra Containers, Forbes CFS, Asuthosh

    Container Services CFS, Allcargo Global Logistics etc.

    Though there are adequate numbers of CFS/ ICDs in the

    state, it is essential that these are equipped with state-

    of-the-art material handling & scanning equipment,

    manned by professional qualified staf f, regulated by

    trained and experienced Customs officials and is free

    from the risk of pilferage and rodent menace.

    Support infrastructure related to Management

    Information system (MIS) / Electronic data Interchange

    (EDI) network and IT infrastructure for data processing is

    inadequate and steps are required to upgrade the same.The ratio of containerized exports to import in Gujarat

    ports is skewed and hence this results in shortfall of

    empty containers.

    5.3. Storage facilites

    Figure 11 : Dedicated Railway Freight Corridors.

    Source: Dedicated Freight Corridor Corporation of India Ltd

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    Following are some of the basic measures required to

    facilitate a seamless movement of EXIM cargo from the

    Gujrat cargo belts to & from the Gujarat Ports

    i. Establishing a minimum of four lane road connectivity

    and double line rail connectivity to those ports handling

    a reasonable cargo volume.

    ii. Regular container train service between ICDs

    (Ahmedabad / Vadodara) to the ports of Gujarat i.e

    Mundra / Pipavav.

    iii. Adoption of an EDI / MIS system integrating all the

    stakeholders (ports/ forwarders/ importers / exporters).

    iv. Better yard management and deputation of adequatenumber of Customs officials to the gateway terminals.

    V. Provision of support infrastructure for road cargo

    operators such as truck terminals, repair facilities etc.

    6. Measures required

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    Websites

    Others

    www.cewacor.nic.in

    www.concorindia.com

    www.customsgujarat.nic.in

    www.gidb.org

    www.gmbports.org

    www.ic.gujarat.gov.in

    www.india.gov.in

    www.indianrailways.gov.in

    www.infrastructure.gov.in

    www.ipa.nic.in

    www.jbic.go.jp

    www.kandlaport.gov.in

    www.kutchrail.org

    www.mapsofindia.com

    www.nhai.org

    www.pipavav.com

    www.pipavavrailway.com

    www.portofmundra.com

    www.rnbgujarat.org

    www.thfrc.gov

    ! Presentation on Delhi-Mumbai Industrial Corridor by

    Department of Industrial Policy & Promotion (DIPP) and

    Ministry of Commerce & Industry , GoI ( MOCI)

    ! Indian Infrastructure August 2007 Key

    Developments, Pg 36

    ! Presentation on Port Led Development in Gujarat by

    Shri H K Dash, IAS, CEO - GMB

    ! Report on Study of Containerised Marine Trade of

    Gujarat Based exporters & importers conducted by

    IIM-A (PGPX), B K School of Management with CII

    (Gujarat)

    ! Report of the Committee of Secretaries Road Rail

    Connectivity of Major Ports

    ! Towards Maritime Excellence Gujarat Maritime

    Board

    Bibliography

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    19

    For additional information, kindly contact

    Senior Director

    Deloitte Touche Tohmatsu India Private Limited

    31, Nutan Bharat Society,

    Alkapuri

    Baroda - 390007

    Tel : +91 (0) 265 2333 776

    Mobile: +91 (0) 98240 14075

    Fax : +91 (0) 265 2339 729

    Email: [email protected]

    Mr. Hemant Bhattbhatt

    Contacts

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