A New Era in Container Terminals

Corporate Profile

• Part of ‘CVR’ and Navayuga Group of Companies, whose strong

credentials include:

– Diversified portfolio consisting of public infrastructure (roads, bridges, metro

rail, marine), IT/ITES, Ports, Power, SEZ, Steel and GIS

– Annual turnover of US$ 1 Billion

– Top line to touch US$ 10 Billion in next 5 years

• Krishnapatnam Port

– Current valuation of approx US$ 4 Billion

– Total Investment planned US$ 3 Billion

– Constructed & commissioned in record 18 months

– India’s Largest port by 2016-17 with annual capacity of 200 MTPA and 42 berths

– Container Terminal with final capacity of 7 Million TEUs per annum

- Immediate Hinterland

– Southern Andhra Pradesh, Eastern

Karnataka, Northern Tamil Nadu

– Important centers – Bangalore, Hyderabad

Ongole, Guntur, Kadapa, Chittor, Bellary

- Secondary Hinterland

– Southern Maharashtra, Chattisgarh

– Important centers – Nagpur, Raipur, etc

- Tertiary Hinterland

– Northern parts of India

– Important Centers - Loni, Dadri,

Tuglakhabad

Hinterland Highlights

KPCT

Hinterland - KPCT

Connectivity to Hinterland

KPCT

JNPT

Potential Hub port for Bay of Bengal

Main HaulTuticorin

Vishakhapatnam

Paradip

Kolkata Chittagong

Yangon

KPCT

Future Global Transhipment Hub

Main Haul

• Deepest draft of 21 mts capable of handling 18,000 TEU mother vessels

• Indian GDP growing at 8.0%.

• By 2050 (Citi report) India to become 2nd largest trading nation with 8.4% of global trade from current 1.5%

• Visionary entrepreneurial drive and planning

KPCT Hinterland Cargo

Trade Characteristics

• Large volume shippers

• Bulk lots of 20-100 containers per shipment

• Both warehouse stuffing and Factory stuffing

• Transportation on round trip basis

• Import - Export balance

Immediate Hinterland Cargo Potential

Cargo Origin /

Destination Area

Export / month Import / monthCurrent

Gateway Port

Current Gateway Port KPCT

TEUs FEUs TEUs FEUs Distance (km) Cost (Rs)Distance (km)

Cost (Rs)

Granites Slabs + RB Ongole 1000       Chennai 320 32,000 145 15,000

Soda Ash Naidupeta     250   Chennai 130 15,000 70 9,000

Glass Naidupeta 400       Chennai 130 15,000 70 9,000

Barytes Kodur 500       Chennai 200 18,000 130 12,000

Maize Mehbobngar, Karimnagar

600       Chennai 600 26,000 420 15,000

Viscos Fiber Paper Pulp

Badhrachalam, Rajahmundry

      550 Chennai / Vizag 655/370 35,000/12,000 490/475 26000/10,000

Paper East & West Godavari

150 100   1000 Vizag 210 9,000 350 7,000

Timber Guntur, Vijayawada     200 400 Chennai 420 20,000 240 13,000

Groundnuts Ananthapur 100       Chennai 480 21,000 300 15,000

Mango Pulp Chittor 300       Chennai 170 12,000 165 11,000

Batteries Chittor 200   550 100 Chennai 170 12,000 165 11,000

Tobacco Guntur   1100     Chennai 420 28,000 240 14,000

Onions Guntur, Chilkaluripet 1200       Chennai 420 20,000 240 13,000

Chemicals Badhrachalam     270   Vizag 370 12,000 475 10,000

Pulses Guntur, Vijayawada     500   Chennai 420 20,000 240 13,000

Scrap Naidupeta     1750   Chennai 130 15,000 70 9,000

Cashew Palasa, Tuni     500   Kochi, Tuticorin 1600 50,000 830 26,000

Cement Kadapa 500       Chennai 280 12,000 200 8,000

Cotton, Yarn Guntur, Hyderabad   450     Chennai 420 28,000 240 14,000

Chilies Guntur   100     Chennai 420 28,000 240 14,000

Total   4950 1750 4020 2050          

• Imports– Paper from Europe / N.Atlantic / Med / Middle East– Paper pulp from Far East / Oceana / S.Africa– Timber from S.Africa / E & W.Africa – Batteries & allied products from Felixstowe / Australia / Korea / China / Malaysia

• Exports– Tobacco to Felixstowe / Antwerp / Rotterdam / Alexandria / St. Petersburg / New York / Durban

/ Hamburg / Le Havre / Varna / Gydnia / Brisbane / – Paper to Europe / USA / Med / Middle East– Yarn to Europe / USA / Med– Spices to USA / Europe

• Imports of about 2050 FEUs / month

• Exports of about 1750 FEUs / month– Tobacco trade ready to start exports by picking empties from Chennai & dropping at KPCT

• Hinterland movement of Paper imports & Tobacco exports– Imported Paper FEUs can move to Guntur ICD for destuffing– Same FEUs will be used for Tobacco Exports– De-stuffed paper to move from Guntur to East & West Godavari (170 kms only)

Inventory Balance - FEUs

• Imports– Scrap from USA / Europe / Med / Singapore / Malaysia / Middle East / Australia– Cashew from E & W.Africa – Soda Ash from E.Africa – Timber from S.Africa / E & W.Africa – Pulses from Yangoon / Canada– Batteries & allied products from Felixstowe / Australia / Korea / China / Malaysia

• Exports– Granite Slabs to New York / Felixstowe / Istanbul / Dubai / Jordan / Morocco / Italy– Granite Rough blocks to China / Far East– Glass to Australia / Europe / USA / Med– Barites to Brazil / USA / Middle East / Malaysia / Indonesia– Rice to Africa / Europe– Onions to Malaysia / Indonesia / Singapore / Middle East / Europe– Cement to Maldives / Colombo / Singapore / Malaysia – Maize to Malaysia / Indonesia / Vietnam / Far East– Mango Pulp to Europe / USA / Middle East

• Barite, Maize, Rice, Granite exporters are already using the port. They are eager to route their container exports through port due to easier consolidation

• Scrap, Soda Ash & Pulses importers are the closest to KPCT

Inventory Balance - TEUs

Interaction with Ex-Im Trade

Sno Interaction with Place Date

1 Meeting with Soda Ash Importer Naidupeta 27th Jan'12

2 Meeting of KPCT team with Tobacco Board & Exporters Guntur 30th-31st Jan'12

3 Meeting of KPCT team with Granite Exporters Ongole 2nd-4th Feb'12

4 Meeting of KPCT team with Cotton Exporters Guntur 6-7th Feb'12

5 Meeting with Barite Exporters Mumbai & Chennai13th & 28th Feb'12

6 Visit of Timber Importers Association Port 14th Feb'12

7 Meeting of KPCT team with Scrap Importers Naidupeta 14th - 17th Feb'12

8 Visit of Cashew Importers Port 26th & 29th Feb

9 Meeting with Soda Ash Importer Naidupeta 27th Feb'12

10 Meeting with Timber Importers Chennai 1st-2nd Mar'12

11 Trade Show with Paper Mills Association Rajahmundry 4th Mar'12

12 Meeting with Mango Pulp exporter Chennai 6th Mar'12

13 Meeting with Onion & Maize exporters Chennai 19th Mar’12

Major Customers – Immediate Hinterland

Barite

Oren Hydrocarbon

IBC Ltd

Varshini Enterprises

Gimpex

Tobacco

ITC Ltd

Polisetty Somasundar

Deccan Tobacco

ML Exports

Mittapalli & Sons

Alliance One

VST Industries

Bommidala

Godfrey Philips

Agri Cargo & Onions

Toepfer

Sarala

Emmsons

Agrocorp

Cargill

TVS Dynamic Trading

ADJ Agro

Olam

Granites

Pinani Granites

Hari Charan Granites

Satya Granites

Tulip Granites

Sri Vinayaka

BVL Granites

Krishna Sai

Scrap

Viki Industries

DRA Industries

Sri Amman Steel

Pulkit Steels

Vardha Steels

Balaji Steels

Anuradha Steels

Major Customers – Immediate Hinterland

Paper

ITC Ltd Andhra Paper Mills Delta Paper Mills Sri Laxmi Paper Mills Shree Paper Mills Sri Ramadasa Paper Ramachandra Paper Boards Suryachandra Paper Mills Seven Hills Papers Laxmi Prassana Paper SBS Paper Mills Rajhmundry Paper Mills Sameera Paper Mills Rolex Paper Mills Coastal Paper Mills Akula Paper Boards Aruna Straw Boards Sri Godavari Paper Mills Sanjay Kraft Venkata Naga Laxmi Paper Sri Ramalingeshwara Paper

Yarn

Suryalatha Spinning Mills Surya Jyothi Spinning Mills GTN Textiles Sanghi Textiles Priyadarshini Spinning Mills Suryavamshi Spinning Mills

Bangalore Cargo Potential

Origin Area

Cargo Export /month(TEUs)

Import/month(TEUs)

Current DistanceTo Gateway Port

(kms)

Distance to KPCT

(kms)

ICD B’lore Various 3000 2900 340 375

Hosur Autoparts 1000 50 315 365

Hosur Granites 1200 - 315 365

Mysore Road

Autoparts 500 2000 385 415

Tumkur Gherkins 600 - 440 460

Total 6300 4950

Bangalore connectivity

• Round trip transit time of 4 days from Bangalore to Chennai. High traffic areas to enter Chennai port – Sriperambadur, Tambaram, Red Hills

• Round trip transit time of 3 days from Bangalore to KPCT due to seamless and congestion-free connectivity

Major Customers – Bangalore

Granite

Tab India

Genex

M&G Granites

Koleman India

Madhucon Granites

Hilltop Granites

SVG Granites

Gherkin

Global Green

Exotic Agro

Ken Agritech

Neo Foods

Reitzal India

Green Agro

Unicorn Pickles

Coffee

Allanasons

Ramesh Exports

Badhra Coffee

NKG Jayanthi Coffee

Econ Gill Coffee

Olam Exports

Amalgamated Bean

Machinery & Automobile

TVS Motors Volvo Toyota Kamaz Vectra

L & T

Various

APC Times Group 3M Tyco Electronics Stovekraft Ltd Meredich TTP Radiators AIA Engineering

Hyderabad Cargo Potential

Origin Area

Cargo Export /month(TEUs)

Import/month(TEUs)

Current Distance

To Gateway Port

Distance to KPCT(kms)

ICD Various 2400 2600 600 480

CFS Various 1400 700 600 480

Round trip from Chennai / JNPT

Various 2000 1500 600 480

Total 5800 4800

• 7% of the above Exports (i.e. 400 TEUs) are East Bound• 41% of the above Imports (i.e. 1950 TEUs) are from East & Far East

Sector

Major Customers – Hyderabad

Various

AIG Glass

Sachdev Sports

Abedha Industries

Parker Hannifins India

Vijaya Electricals

BVG Industries

Samsung

Hyderabad Chemcials

Radiant RSC

Sneha Farms

April IMS

Pokarna Granites

Pitti Laminations

HBL

Mahi Granites

Paper & Paper Pulp

ITC Paper Boards Vijay Anand Kraft Jeevika Industries Décor Paper Mills

Andhra Paper Mills

Rubber & Tyres

Hartex Rubber

Aggarwal Rubbers

Goodyear

Transhipment Cargo – Vizag + Haldia

KPCT

• MLO can use KPCT as the TP for both Vizag & Haldia cargos

• Saves 72-96 hours (sailing + port stay) for the Mainline vessel

• Volume of 4000 TEUs Export & 4000 TEUs Import per month

• Feeder vessel from KPCT to Vizag & Haldia

• Significant cost saving for MLO

Summary of Cargo Potential @ KPCT

Cargo areas Import Export Total

Immediate Hinterland 8450 8120 16570

Bangalore 6300 4950 11250

Hyderabad 5800 4800 10600

Transhipment cargo (Vizag + Haldia)

4000 4000 8000

Total 24550 21870 46420

• Good cargo potential. Additional cargos can be routed once scheduled service starts

• Significant savings to Exporters / Importers due to logistical advantage• Faster turnaround of vessels • First mover advantage – potential for increased market share for MLO

KPCT Terminal Infrastructure

Layout of Master Plan

• Huge 6,500 acres of back-up area

• Vast protected water front of 12.5 kms, to develop 42 berths

• Deep draft of 18.0 mts. To be increased to 21.0 mts

• Straight channel of 6.5 NM

• One of largest turning circles of 550 mts

• Master plan designed in accordance to wind direction & meteorological variations

Snapshots of Krishnapatnam Port

Snapshots of Krishnapatnam Port

Snapshots of Krishnapatnam Port

Container Terminal – Phase I

Phase I

Date of CommissioningSeptember

2011

Container Berths 2

Total Berth Length 650

Terminal Capacity 1 Mn TEUs

Draft Alongside 13.5 mts

Total Area (hectares) 36 ha

Yard Ground slots 4600 TEUs

Yard Capacity 18400 TEUs

Reefer plugs 400

Harbour Mobile Cranes 4 Quay cranes (Super Post Pnmx) 5

Rubber Tyred Gantry 4

Reachstackers (Kalmar) 6 x 42 MT

Rail Siding 1 siding on dock

Snapshots of Container Terminal

Advantage KPCT

Current ports v/s KPCT

• Approach road to the Terminal – Congestion and Safety constraints– Average trailer queue of 6 to 8

kms outside the port entry– Average time taken to reach the

port entry – 2.5 days– Human habitat & settlement on

the approach roads

• Seamless congestion-free connectivity– 4-land dedicated road. Will be

upgraded to 6-lane road– Dedicated railway line. Doubling

work under construction

Manali Express Highway to Chennai Port

Current ports v/s KPCT

• Turnaround delays of trailers – Average of 24-36 hours from

entry to exit of the port – Lack of trailer parking bays– Less maneuvering space inside

the terminal

• Efficient terminal operations– Average trailer turnaround time

of 50 minutes from entry to exit of the port

– 4-lane connectivity in entire port– Continuous vehicle movement

monitoring

Current ports v/s KPCT

• Constraints in Marine front– Curved & narrow channels– Limited capacity tugs – 3200 to

3500 bhp– Shortage of pilots– Pre-berthing delays– Low drafts – smaller vessels

• World-class Marine Infrastructure– Wide & straight channel of 6.5 NM– Deepest draft port in India with 18.0

mts. To be increased to 21.0 mts– 4 nos. of most modern dedicated

tugs , with capacities from 4000 to 4800 bhp

– Port owned dredgers – 6 nos.

Challenges faced by Customers

“We are unhappy with the delays in Chennai Port. Such delays are leading to totally avoidable & unplanned costs in our import consignments”

“Entire Tobacco exports are being routed through Chennai. If a viable solution is provided, exports can be routed through such Terminal”

“Ready to route entire granite exports through KPCT, due to its proximity. We are awaiting for a line to schedule their call”

“Unpredictability due to connectivity bottlenecks is leading to loss of goodwill with our buyers, apart from financial losses”

“Faster clearance of containers is of utmost importance”

Advantage KPCT

• Strategic tie-up with:– Main Line Operators (MLOs) & Feeders– Freight Forwarders, CHAs, Logistic service providers & Transporters– Container Train Operators (CTOs)– Inland Container Depots (ICDs)

• CFS to be developed within port– Total Area – 48 acres. Provision to expand upto 300 acres– Capacity – 6,000 TEUs– Reefer points – 20 nos.– Covered warehouse space – 100,000 sqft– Servicing and Repairing Yards for Reefer and Ordinary Containers– Warehouse & yard management software– Rail siding within CFS– State-of-art security system with 24x7 CCTV monitoring

• Customs facility– Functional custom EDI 1.5 connectivity– Dedicated Customs staff within the Terminal

• First vessel of call – MV Maersk Dalton – 30th September 2011

• Marine:– Container vessels handled – 10 vessels– Total TEUs handle – 23,730 TEUs– Berth Productivity ~ 51 moves

• Rail – Total rakes handled – 124 with a total of 11,054 TEUs– Average rake unloading time – 29 minutes– Minimum rake unloading time – 9 minutes

• Road– Total by road containers – 12,676 TEUs– Average truck turn around time (port) – 50 minutes– Average truck turn around time (Container Terminal) – 20 minutes

Container Handling so far …

Container Terminal – Phase II

Phase II

Container Berths 7

Total Berth Length 2000 mts

Terminal Capacity 5 Mn TEUs

Draft Alongside 18.0 mts

Total Area (hectares) 600 acres

Yard Ground slots > 10,000 TEUs

Yard Capacity > 40,000 TEUs Quay cranes (Super Post Pnmx) 20

Rubber Tyred Gantry 40 x 42 MT

• Integrated Logistics park within port

• On completion of Phase II, the total capacity of the terminal will be 7 Mn TEUs

Awards & Accolades

Lloyd’s List – Global Port Operator of the Year 2011

2nd South East CEO Conclave & Awards 2010 – Non-Major Port of the Year

South East CEO Conclave & Awards 2009 – Non-Major Port of the Year

Q & A