NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES

111

MATERIAL HANDLING

PIPAVAV PORT IN GUJARAT

Submitted To: Prof. Rajiv Wad

Submitted By: Pankaj Shirsat (52)

Mitali Mazgaonkar (87)

Faisal Siddiqui (111)

Specialization: Operations

Date: 29th October 2009

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INDEX

Sr. No.

Contents Page No.

1 Introduction 3-5

2 Pipavav port-present status

a. Oceanography 6

b. Current Facilities 7-12

c. Operations 13-14

3 Future Developments 15

4 Connectivity 16-17

5 Daily Vessel Positions 18-20

6 Pipavav Shipyard 21

7 Business Strategy 22-25

8 Activities at Shipyard 26-30

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INTRODUCTION:

Pipavav Port is a successful public – private enterprise, and is emerging as an important

gateway port on the West Coast of India for containers, bulk and liquid cargo. With less than

ten hours steaming time from the Nhava Sheva Port in Mumbai, Port Pipavav provides

excellent access to the main trade lines in the North Western region of India.

Port Pipavav is operated by APM Terminals, part of the A.P. Moller-Maersk Group one of

the largest container terminal operators in the world. APM Terminals has operations spread

over more than 50 terminals in 31 countries, on five continents. With a 54% stake, APM

Terminals is the largest shareholder in Port Pipavav. The other shareholders of the company

include New York Life International India Fund (Mauritius) LLC, IDFC Infrastructure Fund,

The Infrastructure Fund of India, IL&FS Trust Company Ltd., Jacob Ballas Capital India Pvt.

Ltd., Unit Trust of India, Industrial Development Bank of India and India Infrastructure

Fund.

The Waterfront

Port Pipavav offers a total quay length of 1,075m and accepts vessels up to 14.5 metre Draft.

There is an on-dock rail facility with dedicated sidings to handle containers, bulk and break-

bulk cargo. It also offers extensive back – up infrastructure, including warehousing facilities,

open stack yards, weigh bridges and dedicated rail slidings.

Excellent Connectivity

Port Pipavav is well connected by road and rail to the rest of the country. It is directly

connected by the broad gauge rail network of the Indian Railways. Port Pipavav has set up a

joint venture with the Indian Railways – Pipavav Rail Corporation Limited, making it

possible to offer the most competitive rail freight and transit times in the western coast. The

hinterland capabilities have also been augmented with new scheduled services being provided

by the Container Corporation of India (CONCOR).

Port Pipavav has built an 11 km long four-lane expressway connecting the port to the

National Highway.  The Government of India has undertaken a project to construct the

Ahmedabad-Dholera central spine road, extending up to Port Pipavav.

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History:

In 1996, the port was set up by an entrepreneur as India’s first private port. While some

inroads were made in port services, progress was slow. In 2001, APM Terminals

demonstrated its initial interest in the port and in 2004, APM Terminals invested in a 54%

partnership and made substantial investments in machinery and infrastructure expansion.

Within a short period of time, Port Pipavav has enhanced the capability to include 2 modern

container terminals, 2 bulk terminals, eight Quay Gantry cranes, five of which are Post-

panamax Quay Gantry Cranes with an outreach of 18 across and twin lift capacity. The

container yards have 18 Rubber tyred gantries, reefer handling facilities, a CFS and an on-

dock rail facility. A hi-tech fertilizer bagging plant, raising the bagging capacity from 1,000

to 10,000 tones per day, has recently been installed.

Location:

Port Pipavav is located at Latitude 20 54'N and Longitude 71 30'E on the west coast of

India, at a distance of 140 Kms South west of Bhavnagar.

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Pipava Port Layout:

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PIPAVAV PORT- Present Status:

OCEANOGRAPHY:

Port Pipavav is protected by islands Shial Bet and Savai Bet, which act as a natural

breakwater making the port safe in all weather conditions. The presence of these islands also

leads to the tranquillity in the harbour as well as ensures the wave height is less than 0.5m

most of the time. Port Pipavav has now increased the Draft to 14.5 metres from 12.5 metres.

Tides:

High High Water Springs (HHWS) +3.92 M

Mean High High Water (MHHW) +3.19 M

Mean Sea Level (MSL) +1.76 M

Mean Low Low Water (MLLW) +0.50 M

Low Low Water Springs (LLWS) -O.O1 M

Note: All levels are with reference to Chart Datum

Currents:

The water currents are between 2.5 to 3 knots during peak tidal conditions. These favourable

oceanographic conditions at Port Pipavav ensure easy and safe navigation of ships round the

year. Thanks to the islands Shial Bet and Savai Bet, Port Pipavav can offer its services

throughout the year, even during the monsoons, which provides an added advantage to its

customers.

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Current facilities

a. MARINE INFRASTRUCTURE

Draft:

Port Pipavav currently has a vessel acceptance draft of 12.5m, with an outer channel depth of

12.5m and a turning basin depth of 11.5m at chart datum.

The draft at the bulk and container berths is 13.5m and at the LPG berth the draft is 15.5m at

chart datum.

Pilotage & Towage:

Pilotage at Port Pipavav is compulsory. Port Pipavav provides the pilotage and towage

services at the port and has deployed three tugs for this purpose.

Channel:

The channel length at the port is 4,550 meter and due to the favourable oceanographic

conditions, the port offers day and night navigation to all vessels other than LPG vessels

which are berthed or de-berthed during the day only.

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b. CIVIL INFRASTRUCTURE

Berths:

The port offers 340m of quay length for handling bulk and break-bulk cargo. 735m of quay

length has been dedicated for container handling. The port also has a dedicated LPG cargo

handling berth which measures 65m in length.

Backup Infrastructure:

The port has developed an extensive backup infrastructure in the form of warehouses, open

stack yards and a port users building to accommodate the offices of customs, stevedores

agents and shipping lines.

Storage Infrastructure:

Bulk and Bulk Break Cargo:

The port has constructed 7 warehouses of 600 square meters each and 2 warehouses of 3,657

square meters and 3,252 square meters respectively. These warehouses are located behind the

dry cargo berths. Six additional warehouses of approximately 6,690 square meters each have

been constructed in the warehousing zone, approximately 5 kilometers from the berths.

Central Warehousing Corporation (CWC) operates 4 of these warehouses located in the

warehousing zone. The port has leased three of these warehouses from CWC.

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The port also has an open stack yard of 148,500 square meters dedicated to the storage of

bulk cargoes such as coal.

Container Cargo:

The port has dedicated container stack yard of 108,100 sq.mts, which is equipped with 1,708

twenty–foot ground slots and 140 forty–foot powered ground slots for reefer container

storage.

CFS Operation:

Port Pipavav operates a Container Freight Station (CFS) within the port limits for the

consolidation of cargo moving from the immediate hinterland of the port. The port has

dedicated 11,000 sq.mts of covered warehousing space and an area of paved stack yards to

handle the CFS operations.

The CFS at the port is currently handling a wide range of cargo ranging from cotton, wood

pulp, sesame seeds, cattle feeds, agricultural products, ceramic tiles to soda ash all generating

from the Saurashtra and other regions of North West India.

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Liquid Storage:

Land within the port area has been dedicated for the construction and development of tank

farms for the storage of Liquid cargo by the port users.

Port Users Complex:

The port has developed a port user’s complex within the port limits to accommodate the

offices of customs, banks, agents, stevedores, shipping lines and other service providers.

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c. EQUIPMENT:

Bulk & break bulk cargo handling:

The port has deployed one mobile-harbour Mannesman Gottwald Harbour Crane (HMK

296E) from Germany and two rail mounted Electric Level Luffing (ELL) cranes from B M

Titan of Belgium for the efficient handling of bulk and break-bulk cargo.. The ELL type

cranes are equipped with a built in hopper and a cross conveyor with a rated handling

capacity of 1,000 MT per hour per crane.

The two ELL cranes are supported by a conveyor system, 1,260 meters in length, which

connects the dry cargo berths to the storage areas. The rated handling capacity of this

conveyor system is 2,000 MTs per hour. The port has installed sufficient weighbridges to

support the bulk cargo operations. The port also offers an in-motion weighbridge on rails.

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Container Handling:

The container berth which measures 735m in length is equipped with six Quay Gantry

Cranes. Three of these quay cranes are post – panamax quay cranes having an outreach of

53m (18 across), total lift of 58m (40m above crane rail) and a capacity of 61 tons under the

spreader with twin-lift capability of handling two twenty – foot containers simultaneously.

The other three quay cranes deployed on the container berth are panamax cranes having a

safe working load (SWL) of 40T and an outreach of 13 containers across on a ship.

The container yard is equipped with 18 RTGs. Ten of these RTGs are environmentally

friendly and is expected to achieve fuel savings of upto 45% as compared to regular RTGs.

Port Pipavav is the first port in India to receive eco-friendly RTGs. The port has also

deployed 5 reach stackers for operations to be carried out at the dedicated container rail

siding.

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Operations

Bulk operations:

Port Pipavav handles a variety of bulk and break bulk cargo such as Coal, Cement, Clinker,

Fertilizers, Steel, Iron Ore, Agri products, Salt and Soda Ash. The key customers at the port

include IFFCO, Ultra Tech Cement Limited, Essar Steel, Gujarat Heavy Chemicals Limited

etc.

Container Operations:

Container Operations at the port commenced in April 1998. With road and rail connectivity

to its hinterland, Pipavav has emerged as an important gateway port for containers on the

West Coast of India. The port has developed extensive facilities to handle reefer and general

cargo containers. Port Pipavav has dedicated 735m of quay length for container operations

and has deployed six quay cranes to handle ship-to-shore operations. Operations at the

container yards are performed by the 18 RTGs and the rail siding operations are performed

by reach stackers. Port Pipavav has also leased out land in the port to private reefer

technicians, who offer repair, maintenance and pre – trip inspection services.

The port today offers direct weekly mainline services to Europe, US East Coast and the Far

East. Pipavav offers the fastest transit time to Shanghai and the US East Coast from the West

Coast of India. Some of the major shipping lines operating at the port include Maersk Line,

Safmarine, NYK, RCL, United Arab Shipping Company, Hanjin, K - Line, Hyundai

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Merchant Marine, Mitsui OSK Line, Coastal operators like Shreyas Shipping and Jindal

Waterways are also calling the port.

LPG Berth:

The LPG cargo berth is currently being remodelled and relocated to allow access to off-shore

supply vessels and ensure better berth availability and improved berth utilization.

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Future Developments:

Vision:

To develop pipavav into a modern container terminal capable of competing with the

best ports in the world.

One of the unique features of Port Pipavav is the availability of large tracts of land. This is

attractive to several customers who wish to set up tank farms or warehouse facilities on site.

2013 - On approval from GMB

Additional dedicated bulk berth of 200m

Additional container cargo berth of 365m

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Connectivity:

Rail:

Port Pipavav is now connected to its hinterland via Surendranagar by the broad gauge rail

network of Indian Railways. The broad guage rail connectivity project has been undertaken

by Pipavav Rail Corporation Limited (PRCL) promoted by Gujarat Pipavav Port Limited and

the Ministry of Railways. Port Pipavav has an equity stake of 38.8% in PRCL. The Port can

handle incoming and outgoing trains simultaneously and the current capacity of the rail link

is 22 trains per day. At present, the port is handling on an average 2 trains per day.

The station code for the Gujarat Pipavav Port Rail Siding is PPSP - 08424130 and it falls

under the Bhavnagar Division.

Port Pipavav is the first port in India to receive double stacked container trains (March 2006),

which have a capacity of carrying 180TEUs as against 90TEUs carried in a single stack train.

At present, the double stack container trains run between ICD Kanakpura (Jaipur) and the

port.

Railway:

Port Pipavav has been receiving container trains from all the major North India ICD’s. In

November 2003 the port received its first train from ICD Tughlakabad and from February

2004 regular train services between ICD Sabarmati, ICD Dhandarikalan (Ludhiana) and ICD

Kanakpura (Jaipur) to Port Pipavav commenced.

Port Pipavav is now connected by rail to all the major ICD’s in North West India which

include:

ICD Tughlakabad (New Delhi)

ICD Dhandarikalan (Ludhiana)

ICD Sabarmati (Ahmedabad)

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ICD Kanakpura (Jaipur)

ICD Jodhpur (Jodhpur)

ICD Agra (via ICD TKD)

ICD Moradabad (via ICD TKD)

RCT Vadodra (Vadodra)

Port Pipavav has the most competitive rail freights from North India coupled with excellent

transit times as compared to other gateway ports on the West Coast of India.

Rail Distances

  Pipavav

Tughlakabad 1,333

Sabarmati 398

Jaipur 980

Jodhpur 810

Amritsar 1,726

Ludhiana 1,590

Indore 910

All Distances in Kms

Road:

GPPL has developed a four lane expressway which connects the port to the National

Highway 8E. The National Highway 8E was previously Coastal Highway 6 and has

undergone significant up-gradation after conversion.

Road Distances  PipavavDelhi 1115RAJASTHANJaipur 873Jodhpur 775Udaipur 506GUJARATRajkot 211Ahmedabad 302Vadodara 321PUNJAB

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Amritsar 1432All Distances in Kms

Daily Vessel Position:

27/10/2009

Berth No. Vessels Agent Next Port ATB Cargo Qty/Mt

GP-4MV Maersk

KushiroMIPL Salalah

27/10/09 0342

Containers 800 Boxes

Berth No. Vessels Agent Last Port ATB Cargo Qty/Mt

GP-2 MV Vita FaithCompass Shipping

Aqaba23/10/09

2315DAP 23000 MT

GP-4MV Maersk

KushiroMIPL Nhava Sheva

27/10/09 0342

Containers 400 Boxes

GP-1 MV LOK PremParekh Marine

AgenciesMumbai

27/10/09 0524

Steel Plates 622 Plates

Berth No. Vessels Agent Last Port ATB Cargo Qty/Mt

GP-4Tug ASL

Sentosa+Barge Swiber-283

Arya Offshore Mumbai05/06/09

0730Nil For Maintenance Work

Vessels Name Vessel Agent Anchored Cargo Type Import Export

Tug Maritime Chandra 25/10/09 Nil Nil Nil

 

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Ratna + Cargo Barge Maritime

HawkShipping 1315

Mv OlympiaMOL India

Pvt. Ltd27/10/09

1200Containers

100 Boxes

150 Boxes

MV Charlotte Bulker

J M Baxi & co27/10/09

1650Urea

28724 MT

Nil

Vessels Name Vessel Agent ETA Cargo Type Remarks

MV Lal Bahadur Shastri

J M Baxi & co27/10/09

1900Containers

Imp 200 Exp 250

MV Hyundai Bridge

Seabridge Maritime

28/10/09 0200

ContainersImp 25 Exp 200 Boxes

MV Jindal TaraSeabridge Maritime

28/10/09 AM

ContainersImp 160 Exp

140

MV AL Mariyah

UASC (I) Pvt Ltd

30/10/09 AM

ContainersImp 75 Exp

120

MV Josco Suzhou

Compass Shipping

30/10/09 0600

CoalImp 47358

MT

MV Target J M Baxi & co30/10/09

2200Nil

For Flag Conversion

MV Maersk Kimi

MIPL03/11/09

0400Containers

Imp-500, Exp-900 Boxes

MV Nedlloyd Asia

MIPL30/10/09

0600Containers

Imp-300, Exp-300 Boxes

MV Nedlloyd Drake

MIPL02/11/09

1300Containers

Imp-800, Exp-600 Boxes

MV SCI Kolkata

J M Baxi & co02/11/09

AMContainers

Imp 100 Exp 100

MV Bunga Raya Satu

Crescent Shipping Agency

03-11-2009

ContainersImp 300 Exp

300

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MV Hyundai Sprinter

Seabridge Maritime

03-11-2009

ContainersImp 20 Exp

200

MV Thomas Mann

Tai Pan Shipping

03/11/09 PM

ContainersImp 50 Exp

100

MV Al Ihsa'aUASC (I) Pvt

Ltd04/11/09

1100Containers

Imp 47 Exp 190

Vessels Name Date

MV Houma Belle

25/10/09 0900

OSV Pacific Sword

25/10/09 1850

MV Pacific Nickel

25/10/09 1910

MV Nord Mariner

25/10/09 2100

Bei Hai 26/10/09 1045

MV Emirates Marina

26/10/09 1127

MV Nedlloyd Merctor

26/10/09 2145

OSV Pacific Sword

27/10/09 1635

OSV Pacific Nickel

27/10/09 1645

 

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Pipavav Shipyard:

Pipavav Shipyard Limited (PSL) is a testimony to the vision and active participation of the

private sector in India’s quest to become a major player in the global maritime industry.

PSL is currently completing the setting up of an integrated shipbuilding facility which, upon

completion, will be the largest in India and among the largest in Asia.

PSL is spread over an aggregate area of 198.92 hectares (approximately 491.53 acres),

comprising an SEZ unit spread over 95 hectares (approximately 234.75 acres) and an EOU

spread over 103.92 hectares (approximately 256.79 acres). The two sites are connected by a

dedicated corridor road of approximately 4.5 km length built by the Company.

Commercial operations at PSL commenced on 1st April 2009

The shipyard complex is located on the South Western coast of Gujarat, about 130

kms from Bhavnagar to its east and Diu, about 90 kms to its west. It is adjacent to Pipavav

Port, the first private sector port in India, which is controlled and operated by the A.P. Møller

Group (Maersk) of Denmark,one of the largest maritime groups in the world.

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Business Strategy:

PSL’s long-term strategy is to have four pillars to stand on, each capable of supporting the

Shipyard on its own. The Company has engaged in activities in the following business

sectors:

Commercial shipbuilding

Offshore fabrication and servicing

Naval Vessel

And in the next two years, will also add the following:

Ship repair

This strategy will insulate PSL from the the risks of relying on one market segment alone,

and also allow for profitable business opportunities in each segment to be grasped as market

conditions dictate.

PSL has been set up with the in-built flexibility to switch from one product type to another,

without compromising on the efficiency or cost-effectiveness of the yard operations.

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Accordingly, there will be capability to build and repair (dry dock & afloat) most kinds of commercial

dry and liquid cargo ships such as:

Very Large Crude Carriers ("VLCC")

Capesize bulkcarriers

Suezmax tankers

Aframax tankers

Panamax bulkcarrier and tankers

Handymax and handysize bulkcarriers and tankers

Containerships

Chemical Tankers

Platform Supply Vessels and anchor handling tugs

Dredgers

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In Naval shipbuilding and repair, PSL has the necessary infrastructure and facility to build all

kinds of naval vessels .

Given the increasing focus on offshore exploration for oil and gas around the coast of India,

and in the Middle East, the Shipyard has been designed to exploit the opportunities that this

sector has to offer. Our capabilities in this regard include fabrication / construction of

offshore platforms, SBM’s, rigs, jackets, vessels, etc. for upstream oil and gas sector /

companies both in India and abroad.

PSL has teamed up with one of India’s leading engineering companies involved in the

offshore sector, Punj Lloyd Limited. This will help the Company fast-track into this growing

sector since Punj Lloyd is pre-qualified with the major exploration and development

companies operating in Indian waters. Punj Lloyd has taken a substantial shareholding in

PSL.

At its site at Pipavav, PSL has installed and commissioned some of the most modern

shipbuilding equipment that can be purchased – inter-alia, from leading companies in

Norway, Japan, Italy and Norway. Two Goliath cranes, each having a lifting capacity of 600

tonnes, the largest in India, are being erected at the site.

This modern plant, when combined with PSL’s highly experienced management team,

comprising Indians and multi-national expatriates and the competitively priced skilled labour

available in India, have enabled PSL to make an impressive beginning in the various business

segments.

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PSL has teamed up with two world-leading technical associates:

SembCorp Marine, Singapore

SembCorp Marine is a leading global marine engineering and shipyard group, specialising

in a full spectrum of integrated solutions in ship repair, shipbuilding, ship conversion, rig

building, topsides fabrication and offshore engineering. SembCorp been advising PSL on

yard layout and manufacturing processes in relation to the Company’s start-up commercial

shipbuilding operations.

KOMAC, Korea

Korea Maritime Consultants Co., Ltd. (KOMAC) was established in 1969 as Korea’s first

and only private organization of naval architects and marine engineers. KOMAC has

designed more than 1,200 different classes and type of ships. PSL has a technical services

agreement with KOMAC to provide designs as well as assist with procurement of equipment

and materials for the commercial ships being built, thus minimizing potential problems areas

during the start-up phase.

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Activities Carried:

Dry-docks:

The dry dock and surrounding facilities are located on 103.92 hectares (approximately

256.79 acres) adjoing 800 meters of dedicated waterfront. This entire area has been

approved as an Export Oriented Unit (EOU) by the Government of India.

Workshops and Facilities:

By having located the workshops and fabrication facilities in a SEZ away from the

dockyard site, PSL has the dual advantage of having been able to reserve the maximum

area of water frontage available at the shipyard site for ship assembly, offshore

fabrication and ship repair activities whilst carrying out its fabrication and other

similar activities through a highly tax-efficient SEZ unit.

The blocks manufactured at this site are pre-outfitted to the maximum extent. This is done in

the ideal working conditions offered by covered fabrication shops. When ready, the blocks

The Pipavav Shipyard originally consisted of two wet basins – one approximately 680 meters

long and 65 meters wide, and the other approximately 680 meters long and 60 meters wide.

The first of these has been converted into a dry dock measuring 662 meters longs, and 65

meters wide.

Two Goliath cranes, each having a lifting capacity of 600 tonnes, and two level luffing cranes

are being erected to service this dry dock.

To facilitate afloat fit-out and commissioning of ships, including afloat repairs, a 300–meter

long quay, with the capacity for berthing on both sides, has been constructed with adequate

draft and serviced by a level luffing crane. The entrance of the dry dock will also have a 100

meter extension track for the Goliath cranes for unloading heavy machinery and equipment

weighing up to 1200 tonnes directly from ships and heavy lift barges.

Approximately 4.5 kilometers away from the dry-dock, and located on 95 hectares of land in

a Special Economic Zone approved by the Government of India, a state of the art block-

making facility has been set up for fabrication of hull blocks

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are moved to the dock-side for pre-erection of mega/giga-blocks followed by lowering them

on the dock floor for final assembly and vessel launching.

The block-making site is equipped with, among others, the following facilities:

Central Steel storage, surface treatment and CNC marking shop

Hull shop comprising of panel line, sub assembly, curved block

assembly, 3D block assembly cells

Pipe fabrication shop

Electrical shop

Shipwright shop

Machine shop

Outfitting shops

Blast cells

Paint cells

Equipment storage shed

Inflammable and paint stores

Transport workshop

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In addition, the Shipyard’s utility infrastructure includes the following:

2 x 66 KVA power line along with switchyard,

transmission and distribution systems

Water pipeline and fire fighting system along with

pumps, overhead tanks and pumping systems

Low pressure compressed air system

Infrastructure relating to consumable gases such as

O2, CO2, LPG and nitrogen

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Ship Building:

Potential PSL Product Range:

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Category Ship type

   

Tankers VLCC's

  Suezmax

  Aframax

  Panamax

  Products

  Chemical

   

Bulkcarriers Capesize

  Panamax

  Handymax

  Handysize

   

Specialised LNG carriers

  LPG carriers

  Reefers

  Containerships

  Offshore support

  Ferries

  Dredgers

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Offshore Group

Offshore Platforms

Rigs

Jackets

Single Buoy Mooring Systems (SBM)

Naval Vessels:

In Naval shipbuilding and repair, PSL can build all kinds of vessels required by the Indian

Navy and Coast Guard

Ship Repair:

Refit/dry docking

Afloat Repair

Conversions