ERA of COASTAL SPLIT OF CONTAINER THROUGHPUT IN INDIA transformation
Indian container market is attracting huge investments for capacity building. Box business dynamics are rapidly transforming into new era that embrace advanced infrastructure, digitisation, innovative business practices, process automation and transparency.
As per Indian container market trend over the last few years, installed capacities and handled volume have been growing proportionately showing a positive sign for the industry apart from achieving best capacity utilisation levels of almost 65 per cent. Total Indian container terminals installed capacity and throughput have grown 11 per cent each respectively. Global and Indian operators are trying to attract transhipment cargo which could trigger inclusive growth in box trade. Few major and private players are also trying hard to establish themselves as transhipment hubs apart from serving as Gateway Port. This transformational change in box business is aiding Indian container market to reach the next level in Indian shipping business.
For the first time in Indian shipping industry, Gateway Media Pvt Ltd and Drewry have tried to analyse and present Indian container terminal market by operator. Global and Indian Operators are one of the key stakeholders of the industry, aiming high with their big ticket investments in India for the betterment of the industry in spite of industry headwinds. In this report, total Indian throughput is segregated by each operator as per their equity share in the terminal. Thus, could derive the exact picture of each operator share in Indian total throughput.
DP World India, APSEZ Ltd, APM Terminals India, JNPT, PSA International and MSC India Pvt Ltd contributed around 90 per cent of the throughput as per their equity share in Indian container terminals. The rest is shared among other players like JM Baxi, KPCL, CMA CGM Terminals, ABG Infra Logistics and Bollore Africa Logistics. DP World
DP world portfolio comprises of 78 marine and inland terminals along with around 50 related businesses in 40 countries across six continents with a significant presence in both high-growth and mature markets. Container handling is the company’s core business and generates more than three quarters of its revenue. In 2016, DP World handled around 64 million teu across its global portfolio. With its committed pipeline of developments and expansions, the current global gross capacity of 84.6 million teu is expected to rise to more than 100 million teu by 2020, in line with market demand.
Dubai government owned DP World is currently the biggest foreign port operator in India, reported 3.5 million teu as per their equity shareholding in Indian portfolio of terminals in FY 2016-17 while capturing 30 per cent share in Indian total throughput. DP world is running six container terminals in Indian ports in almost all biggest major container ports across Indian coast such as Mundra, Jawaharlal Nehru Port (two facilities), Cochin, Chennai and Visakhapatnam. One of the major contributor, Mundra International Container Terminal has registered a growth of 18 per cent year over year in FY 2016-17.
These six terminals have a combined market share of about 30 per cent of the 13.5 million teu handled by Indian ports during 2016-17. DP World is seeking opportunities in the country worth over $1 billion in the next few years. This will be aimed at development of port infrastructure of the Sagarmala project, creation of the Delhi – Mumbai
Industrial Corridor, river transportation and cold chain storage, investing in port-led special economic zones, free trade zones, ICDS and cruise terminals.
APSEZ Ltd is the only major Indian operator among other operators in India with highest portfolio of owning and operating ports and terminals across Indian Coast. APSEZ has their presence in almost all coastal states of India. Almost around 30 per cent of Adani’s portfolio is box business in its portfolio of diversified cargo types handled. In India, Adani is owning and operating 5 container terminals and 4 new terminals are in the anvil at Dhamra, Ennore, Mormugao along with one transhipment terminal at Vizhinjam. Adani total container terminals throughput by equity share is accounting around 20 per cent of the Indian total throughput, ranked 1st biggest Indian operator.
Joint venture of Terminal Investment Ltd (MSC) and APSEZ Ltd, Adani International Container Terminal handled 1,160,000 teu in FY 2016-17 with a year over year growth of 8 per cent, another joint venture facility of CMA CGM terminals and APSEZ Ltd is Adani CMA CGM Mundra Terminal registered one of the highest first year throughput of 276,630 teu and in contrary, Adani 100 per cent owned terminal has registered a negative growth of 9 per cent in the same period. Adani Kattupalli container Terminal has registered around 200 per cent growth and Adani Hazira container terminal witnessed 37 per cent year over year growth in FY 2016-17.
APM Terminal's is one of the largest container terminal operators in the world, offers the global shipping community an integrated Global Terminal Network of 56 ports and 154 inland facilities in 63 countries. With a presence in every major market, APM Terminals serves all major trade lanes providing wide clientele with the most advanced terminal technology, equipment and operations in the industry.
APM terminal's Indian portfolio consists of two terminals in India, currently - India's largest and most successful container terminal, APM Terminals Mumbai (earlier known as Gateway Terminals India), in JNPT at Nhava Sheva, Mumbai; and Port Pipavav in Gujarat. APM terminal's total installed capacity is 3.15 million teu where in total throughput share by equity holding is 1.61million teu in FY 2016-17.
APM terminals Mumbai and Pipavav clocked highest throughput in its history in the FY 2014-15 especially APM terminals Mumbai volume touched the highest ever handled by a single container terminal of 2.01 million teu in the Indian shipping industry, since after the two terminals fall a prey to the negative growth trend till this year. In addition, Global cyber-attack, ransomware hit the APM terminals operations across the globe that could further pull down the growth of the terminals in the current year. Notwithstanding to its downfall, still APM terminals Mumbai has registered a highest throughput handled by a single terminal in India of 1.7 million teus in FY 2016-17.
Jawaharlal Nehru Port Trust owned and operated Jawaharlal Nehru Port Container Terminal has witnessed a positive year over year growth of 10 per cent in FY 201617. JNPT as an operator has contributed 13 per cent of throughput by equity share holding to the total volume handled in India. JNPT'S transformational changes and adaptability to the new technology and enhancement of port infrastructure intensified the operations across its container terminal to record one of the highest throughput in India. Still many progressive plans are in progress for the betterment of the port and terminal to ease the congestion issues for the speedy evacuation of cargo apart from streamlining the operational processes.
PSA International is eying to increase its dominance in Indian container market with slew of measures undertaken while adding new services and also with its high investments by adding further capacities across Indian coast. PSA’S position in India will be beefed up further when
Phase 1 of the Bharat Mumbai Container Terminal in Jawaharlal Nehru Port becomes operational in FY 2017-18.
In India, PSA achieved equity throughput of more than 1.15 million teu and garnered 5th position among other operators in India. In the last fiscal 2016-17, PSA’S Chennai International Terminal clocked around 21 per cent of impressive growth rate year over year, while registering throughput of around 0.85 million teu in FY 2016-17. In addition, its Bharat Kolkata Container Terminal achieved an uptick of 10 per cent growth rate, and its Tuticorin Container Terminal witnessed 5per cent growth year over year with 0.53 million teu in FY 2016-17.