Chapter 6: Selection of Minor Ports
6- 18
a) Major ports with their present strengths and preoccupation with international trade
can act as powerful drivers of coastal shipping provided they could accommodate
coastal vessels without any berthing delays.
b) These ports will turn more coastal shipping friendly allowing concessions in tariffs,
priority berthing of coastal vessels and improved productivity.
c) Earmarking, where possible, dedicated berths of sufficient draft for coastal vessels.
This matter falls within the purview of the Port Trust Boards and the Central
Government. In the present environment of liberalization when strenuous efforts are
being made to improve the delivery of services at economic costs the policy makers
would have to weigh the consequences of these changes carefully as reforms for
corporatisation and commercialisation of major ports are on the anvil. A look at the traffic
statistics handled in major ports and their future capacities in the Table below makes it
apparent that major ports of Mumbai, Cochin, Kandla, Paradip, New Mangalore and
Ennore will have some surplus capacities. But whole or most of it may not be compatible
because some of it is commodity specific like coal and iron ore for example. This requires
detailed analysis in each case. With all that these ports may have some surplus capacity
available for servicing bulk coastal cargo traffic. Its patronage by coastal shipping will
depend on the willingness of major ports to extend the facility of tariff reduction and
priority in berthing.
Table 6.20 Major Ports Traffic Forecast
(in Million Tonnes)
Traffic Handled Projected Traffic Ports
in 2001-02 2006-07
Capacity planned to be
achieved by 31/03/2007
Kolkata 30.4 54.8 43.60
Mumbai 26.43 30.4 49.00
Jawaharlal Nehru 22.52 34.5 43.00
Chennai 36.12 40 32.07
Cochin 12.06 17.2 27.90
Vizag 44.34 60 46.70
Kandla 37.73 51 60.55
Mormugao 22.93 26.3 26.98
Paradip 21.13 28.9 38.05
New Mangalore 17.51 32.7 40.45
Tuticorin 13.02 18.7 18.30
Ennore 3.4 20.5 29.00
Total 287.59 415 455.60 *
This includes 15 MT as capacity achieved due to increase in productivity
Source: Lok Sabha Starred Question No. 311 dated 11.12.2002.
6.8 Ro - Ro Service
Another aspect to be considered in the future development scenario of the country can be
Ro Ro transport. Ro Ro berths at strategic locations along the coast can play a role in the
development of intermodalism and integrating water and surface transport modes.
Ro Ro is an abbreviation of Roll On Roll Off and is also called a vehicle ferry. It is
designed for the conveyance of road vehicles and private cars. At each terminal port a
link span is provided enabling these vehicles to drive on or off the vessel. The other
advantages of plying a Ro Ro service are
Chapter 6: Selection of Minor Ports
6- 19
• Brings savings in distance traveled time taken and fuel expended.
• Involving Coastal Shipping in the movement of small parcel loads
• Reduces wear and tear of vehicles, road surfaces.
• Sharp decrease in turn around times
• Reduces driver fatigue and road traffic congestion
• Minimises environmental damage in terms of noise and pollution from automobile
exhaust fumes.
For a cargo Ro Ro service the infrastructural facilities required are
• A link span to negotiate tidal height difference so that a truck can roll on and off with
ease.
• Adequate parking space for incoming and out going trucks.
• Approach road of adequate width to the link span
• Easy access to adjacent road network.
Other facilities required from the vessel operators’ point of view would be
• Berthing facilities at subsidised berthing and wharfage charges
• Bunkers
• Water Supply ( Fresh as well as for other purposes)
• Vessel Repair Facilities
• Night Navigation facilities
Operation of a cross-harbour Ro Ro service has been debated for long. Several attempts
in running passenger and cargo Ro Ro services did not materialise. Even in Mumbai
passenger ferries have not taken off so far. However internationally Ro Ro operations in
different ports of Japan, Europe and Hongkong are popular but for its application to the
Indian scenario it requires a proper study in all aspects of freight transportation, its
clientele profile and driving habits of the drivers. The Konkan Railway had already
introduced its “ Conraj” services, which is literally a similar version except that the
transport moves on rail rather than in a vessel.
The Consultants have not examined this issue in depth. Yet in our view it merits a
detailed study.
6.9 Transshipment Hubs and Coastal Shipping.
A large number of ports in the world aspire to graduate to the hub status and most of these
can claim some particular advantage.
The essence of a hub and spoke concept is that there are very few hubs and many ports on
the periphery of the system. In the battle for hub status there are two great advantages that
are difficult, even impossible to duplicate: location that is directly on a major sea lane and
dense network of established services that allows cargo to move freely and speedily to
and from cargo generating centres deep in the hinterland.
India is developing two gateway ports JNPT and Chennai, which are already on the way
to become the mantle holders of “Container Transshipment Hubs”. Future identified
Chapter 6: Selection of Minor Ports
6- 20
container terminals include those of Vallarpadam or Vizinjam in the State of Kerala,
which fall on the international trade routes. Once developed they will save the country
valuable foreign exchange by providing transshipment facility within the country thus
eliminating the need for dependence of India’s international trade on hub ports of
Colombo, Dubai and Singapore. Recent estimates by the Government of Kerala for the
proposed deepwater transhipment terminal of Vizhinjam show that about 80 percent of
Indian containers are transhipped at Singapore, Salalah and Colombo and also that about
60-70 percent of containers handled at Colombo are of Indian origin and destination and
the estimated annual loss to the country is around $ 200 Million. While all the Indian
ports together handled 3.36 Million TEUs in 2002-03 Colombo alone handled about 2.0
Million TEUs.
The successful implementation of the project for development of container transshipment
hubs will also augur well for Indian coastal shipping as with the establishment of these
hub ports container volumes will flow to all ports at a faster rate than before.
6.10 BROAD COST ESTIMATES
Financial Estimates for proposed Facilities in selected ports
This section details the broad estimate of cost for the selected ports for construction /
rehabilitation of basic infrastructure i.e.
1. Capital Dredging.
2. Berths and Wharves.
3. Breakwaters.
4. Back up space for storage, marshalling yard etc.
Future requirement of costs for other civil works, utilities and other miscellaneous costs
has been detailed in Annexure A6.8. Dredging costs are based on direct berthing of
vessels of 10,000 DWT having 8.0 m drafts. For lighterage ports more than 2.0 m drafts
for barges should suffice.
The following minor ports to begin with are eligible for financial assistance for
development of basic infrastructural facilities outlined above
• Gopalpur
• Cuddalore
• Vizhinjam
• Azzhikal
• Malpe
• Karwar
• Ratnagiri
• Dharamtar
• Magdalla
The cost estimates are conservative yet should in our view suffice for the purpose of
kickstarting the development of these minor ports which largely for want of funds have
been languishing over the years. The investment on infrastructure augmentation will not
bring any returns in the first 8-10 years after the port commences operations but will
Chapter 6: Selection of Minor Ports
6- 21
enable it to attract and sustain the private sectors interest in investment in the project with
a 5-6 percent return on his part of the investment in the facility within 4-5 years. Payback
method would seem to be the preferred option. As and when the ports start handling
larger volumes of cargo better facilities can be created for itself and the cost estimates
related to other civil works, utilities, handling equipment and miscellaneous items
implemented in a phased manner.
This option in which ports will be upgraded and modernized selectively to begin with is
detailed in the modelling exercise for selection of minor ports. The underlying
assumptions are:
1. The central government may come forward to fund only physical infrastructure of the
selected ports viz. berths, wharves, breakwaters and capital dredging where necessary
to kick start the development process. This would require investments of over Rs 185
crores by the Government in the basic infrastructure as detailed in Table 6.21.
2. The concerned maritime state or the state in partnership with the private sector would
finance the developments of other facilities and equipments. Approximate costs for
such development of proposed facilities and equipments for selected ports by the
investor is detailed in Table 6.22
The private ports of Mundra and Pipavav, captive jetties of Sikka in the state of Gujarat
and Kakinada Deep Water Port in the state of Andhra Pradesh are well developed with
advanced facilities and handling large volumes of cargo. The private port of
Krishnapatnam in Andhra Pradesh has also been given on lease by the state government
and facilities are being developed and expected to become operational early next year.
These ports can cater to coastal shipping without any fresh capital investments for the
present.
Table 6.21 Cost of Basic Infrastructure
Selected Minor Port Civil Works (Dredging, Breakwater and Berths and Storage).
Rs. (crore)
Gopalpur 34.90
Cuddalore 29.17
Vizhinjam 17.25
Azzhikal 29.96
Malpe 13.40
Karwar 5.05
Ratnagiri 23.94
Dharamtar 15.11
Magdalla 16.80
Total 185.58
Chapter 6: Selection of Minor Ports
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Table 6.22 Broad Costs of Proposed Other Facilities and Equipments
Selected Minor Port Broad Cost Heads Rs (crore)
Gopalpur 1. Other Civil Works
1. Utilities and Handling Equipments
2. Miscellaneous
10.20
48.60
18.50
77.30
Cuddalore 1. Other Civil Works
2. Utilities and Handling Equipments
3. Miscellaneous
5.85
44.10
1.40
51.35
Vizhinjam 1. Other Civil Works
2. Utilities and Handling Equipments
3. Miscellaneous
14.30
30.85
27.00
72.15
Azzhikal 1. Other Civil Costs
2. Utilities and Handling Equipments
3. Miscellaneous
10.50
40.10
34.50
85.10
Malpe 1. Other Civil Costs
2. Utilities and Handling Equipments
3. Miscellaneous
7.30
46.35
5.75
59.4
Karwar 1. Other Civil Costs
2. Utilities and Handling Equipments
3. Miscellaneous
4.50
7.00
45.75
57.25
Ratnagiri 1. Other Civil Costs
2. Utilities and Handling Equipments
3. Miscellaneous
5.35
34.85
66.93
107.13
Dharamtar 1. Other Civil Costs
2. Utilities and Handling Equipments
3. Miscellaneous
6.60
33.60
32.75
72.95
Magdalla 1. Other Civil Costs
2. Miscellaneous
1.51
2.48
3.99
Total 586.62
6.11 SUMMARY
Besides 12 major ports, there are 185 minor ports in the country. Out of these 185 minor
ports only 61 ports are functional.
One of the terms of reference of this study requires the Consultants to identify the minor
ports that are conducive to coastal shipping. In order to arrive at a list of such minor ports
the Consultants have adopted the “ranking and rating” method. This method primarily
focuses on identifying the parameters on which such selection can be made and thereafter
assigning weightages to these parameters. Individual ports are then rated against these
Chapter 6: Selection of Minor Ports
6- 23
parameters and according to the extent to which they satisfy these parameters they are
assigned a rating from 1-5. Finally a weighted average is calculated on the basis of the
weightage and ratings and average weighted scores calculated. The highest weighted
scoring ports are the minor ports selected.
The Consultants as part of the study have visited all the nine maritime States and two
Union territories and have altogether undertaken onsite visits of 50 minor ports in
addition to 9 Major ports. Through the distribution and the collation of standard
questionnaires at these ports the Consultants have succeeded in capturing relevant
information pertaining to all these ports.
The final outcome of the model was the selection of the below illustrated 14 minor ports
that can drive coastal shipping initially. A sensitivity analysis was also carried out by
varying the parameter weightages. However, there was no significant difference in the
initial list of selected minor ports.
1. Gopalpur
2. Cuddalore
3. Vizhinjam
4. Azzhikal
5. Malpe
6. Karwar
7. Ratnagiri
8. Dharamtar
9. Magdalla
10. Kakinada Deep Water Port (Kakinada
Seaports Limited)
11. Krishnapatnam
12. Sikka
13. Pipavav (Gujarat Pipavav Port Limited)
14. Mundra (Gujarat Adani Port Limited)
Funds to the extent of Rupees 185 Crores may be provided by the Central Government to
develop basic infrastructure (for rehabilitation/new construction) at 9 minor ports as
illustrated above in serial number 1-9. This includes capital dredging, breakwater, berths
and wharves. The Consultants believe that this would attract private sector investment in
the development of other facilities. The ports from serial number 10-14 i.e.
Krishnapatnam, Kakinada Deepwater Port, Sikka, Pipavav and Mundra are under private
management. It is assumed that their future developmental programs will be finalised by
the parties concerned.
The Consultants also feel that once these 14 ports reach a threshold traffic demand of 50
percent of their capacity a new set of ports may be taken up for development. These new
set of ports include
15. Kulpi
16. Dhamra
17. Kakinada Anchorage Port
18. Nagapattinam
19. Pondicherry
20. Thangassery
21. Neendakara
22. Old Mangalore
23. Bhavnagar
24. Jafrabad
25. Dahej
Chapter 6: Selection of Minor Ports
6- 24
26. Porbandar
27. Bedi
28. Okha
For the State of Maharashtra either Vadhavan or Dabhol or Jaigad can be developed as
the next set of ports.
