Mechanization of Okha

Port

Port, Port Services and

Logistics
Government of Gujarat

Contents
Project Concept

Market Potential

Growth Drivers

Gujarat Competitive Advantage

10

Project Information

12

- Location/ Size
- Infrastructure Availability/ Connectivity
- Manpower
- Potential Collaboration / Key Maritime Clusters
- Key Players/Stakeholders
- Key Considerations

Project Financials

18

Approvals & Incentives

19

Key Department Contacts

20

Page 2

Project Concept
Mechanization Imperative to meet Demand
Gujarat with its favourable location and availability of a long coastline is a prime destination for
executing maritime economic activities. The increasing importance attached to maritime economic
activities has further led to the development of many container terminals.
Constantly increasing volume of global trade and the inflow of economic activities towards India and
the State have reinforced the need for advanced and efficient infrastructure facilities at the States
ports. The traffic at Gujarat ports have increased at a brisk rate as compared to the national port
traffic in the last decade.

Okha Port: Brief Overview

Okha

Okha port is an all-weather, non-major intermediate

port handling dry-bulk cargo, owned and managed by
the Gujarat Maritime Board (GMB).
It is located in the North-West coast of Saurashtra
Peninsula, at the mouth of Gulf of Kutch, Devbhumi
Dwarka District, Gujarat.
Latitude: 22o 27 59 N
Longitude: 60o 04 10 E
The port primarily imports: coal, coke, wheat, sulphur,
fertilizers, lime stone and exports: calcium bauxite,
onion, clinker, raw bauxite, chemicals, soda ash.

What is Mechanized Handling?

Efficient handling of dry-bulk cargo through the use of mechanized equipments such as ship unloaders/ loaders, conveyor belts, stackers, reclaimers, wagon loaders & tipplers, which effectively
eliminates the conventional and less efficient method of unloading of dry bulk cargo at jetty and from
jetty to stacking yard or wagon transported via dumpers.

Impact of Non Mechanization

Deployment of conventional equipment like Excavator for handling bulk cargo adversely affects
efficiency parameters like:
Average Ship Turnaround Time
Berth Occupancy and Output
Cargo Contamination
Environmental Issues

Page 3

Project Concept
Mechanization at Okha Port

Mechanization of the existing facility at Okha Port to improve productivity, take environmental
friendly measure and safe cargo handling.
Till now majority of the cargo is being handled through conventional equipment, which adversely
affect efficiency parameters such as average ship turnaround time, berth occupancy and output,
and resulted in cargo contamination, pollution and fire hazards.
Mechanized handling at Okha Port will require the installation of the following equipment at
various stages of the cargo handling value chain.

Ship To
Barge

Barge
To Jetty

Floating
Crane

Mobile
Crane

Jetty To Truck
Mobile
Hopper

Pipe/ Belt
Conveyor

Stacking
Area
StackerReclaimer

Dust
Suppression
Fog
Canon

Apart from this a storage shed, truck and wagon loading systems would also required to be
installed at the port.

Page 4

Note: Extent of mechanisation will be dependent on land availability on the backside of jetty

Market Potential
Port Scenario
Ports in India
The port sector of India is one of the important and prominent sector as it has coastline spanning
about ~7,516.6 km, forming one of the biggest peninsulas in the world.
Around 70% of Indias trading by value and 95% by volume is done through maritime transport.
By FY17, cargo capacity of India is expected to increase to 2,493.1 MMT from 1,806.8 MMT in
FY15.
By FY17, cargo traffic at major ports is expected to rise to 943.1 MMT from 581.3 MMT in FY15.
By FY17 cargo traffic at non-major ports in India is expected to grow to 815.2 MMT from 471.2
MMT in FY15.
India is strategically in prime location well connected and benefited by more than 200 ports
across the coastline as most cargo ships sails between East Asia, America, Europe, Australia
and Africa.

Classification of Ports
Major ports: India has about 12 major ports in the country, 6 on the Eastern
coast and 6 on Western coast. Major ports are under jurisdiction of the
Government of India.

Ports in India
Non-major ports: India has about 200 non-major ports of which one-third are
operational. Non-major ports come under the jurisdiction of the respective states.
a) Governments Maritime Boards (GMB) ports, b) Private ports.

Ports in Gujarat

Cargo handled at major and non-major ports

of Gujarat (MMT)
340

336

310

94

87

92

100

259
83

82

231

313

80

206

286

288

382
342

440

428

397

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

Major ports

Non-major ports

Total

Gujarat has coastline of 1,615 km,

about 1/6th of total Indian coastline.
The state has 45 ports of which 44
are non-major and 1 major port
(Kandla).
During the FY 07-16, cargo traffic in
Gujarat increased at CAGR of
10.17% to reach 440 MMT in FY 16.
The cargo traffic at non-major port
of Gujarat is envisaged to reach 864
MMT by FY20.
Share of GMB ports in the national
traffic is 32%.

Source: IBEF, GMB, Shipping ministry. *MMT- million metric tonne, FY- financial year, km- kilo meter,

Page 5

Market Potential
Demand Supply

Traffic Handled at Non-Major Ports in Gujarat

Cargo handled at non major port of Gujarat (MMT)
CAGR: 11.2 %

206.0
131.0

FY 07

151.0

153.0

FY 08

FY 09

FY 10

231.0

259.0

FY 11

FY 12

288.0

FY 13

310.0

FY 14

336.0

339.7

FY 15

FY 16

Source: GMB

The state has 1 major port and 44 non major ports, totalling to 45 ports. The state has the
highest number of operational ports and commercial cargo ports.

Gujarat is the first state in India to invite Private sector participation through competitive bidding.
Gujarat ports account for 40.7% of traffic in the total national port traffic which is more than any
other state. The non-major ports of Gujarat constitutes 32% share.

Gujarat accounts for 74.1% of traffic for non-major ports of India in 2014-15. The traffic handled
at non-major port in Gujarat has increased by CAGR 11.2% from FY 07 to FY 16 to reach 339.7
MMT.
Traffic handled at Okha Port (MMT)

CAGR: 32.7 %

4.5

5.0

2.5
1.6

1.7

FY12

FY13

FY14

FY15

FY16

Source: GMB

Bauxite, Coal and Lime stone comprised large amount of the total import cargo volume handled
at Okha port.

Bauxite comprises large amount of total export cargo handled at Okha port.

The current cargo handling at Okha port is 5.0 million metric ton per annum.

The estimated traffic at Okha port in FY 20 is about 9 MMT which can be achieved by
mechanization of handling the bulk cargo.

Page 6

Source: IBEF, GMB, Shipping ministry. *

MMT- million metric tonne, FY- financial year, km- kilo meter

Market Potential
Demand Supply
Coal Imports by India (MMT)
212.1

The coal imports in India registered more than two fold

rise in last four years

Coal consumption and imports by India are expected to

witness robust growth rates owing to greater demand
from thermal power plants and industrial setups.

Numerous proposed and under construction power

plants in Gujarat and other adjoining states rely on
imported coal to suffice their fuel requirement.

GMB operated ports handle ~20% of Indias coal

imports.

Bauxite production in India registered 21666 thousand

tonnes in FY 13-14, which registered 30% increase as
compared to FY 12-13.

Bauxite mineral from Gujarat has 32% share in total

production of Bauxite in India.

166.9
145.8
102.9

FY12

FY13

FY14

FY15

Source: Ministry of Coal

Rapid growth in imported coal volumes present an attractive business potential

of mechanized handling systems at Indian Ports
Okha Port primarily handles Coal and Bauxite

At Okha port the major cargo commodity

handled are Bauxite 58.17%, Limestone
20.35%, Coal 16.5% of the total cargo
traffic handled at port.
The demand of Bauxite is going to
increase at the CAGR of 7.63% from
FY15-20E and coal will increase at
CAGR of 14.71% from FY 15-20E.

Coal Handled at Okha port (MMT)

Port Traffic (%) Commodity wise FY 16

4.9

Coal

16.5

Lime stone
Coke

20.4
58.2

Others

Bauxite Handled at Okha port (MMT)

1.4
3.9
0.7

FY 15

0.8

FY 16

FY 20E

2.7

2.9

FY 15

FY 16

Source: IBEF, GMB, Shipping ministry.

*MMT- million metric tonne, FY- financial year, km- kilo meter, FY 20E- Estimated

Page 7

FY 20E

Market Potential

1
Okha port current
trends

2
Need for
mechanization

3
Proximity to
Mining Area

The Okha port imports coke, coal, wheat, sulphur, fertilizers, lime
stone and exports calcium bauxite, onion, clinker, raw bauxite,
chemical and soda ash. The port is not mechanized in terms of
handling the cargo which has adverse effect on the total cargo
handling around the year.

To meet the future market scenario for import and export of bulk
cargo in Gujarat, the ports should be mechanized for better
efficiency in terms of million metric Tonnes of cargo handling in the
year, quicker turnaround time of the vessels and with improved
safety and healthy environment.

The location of Okha port is strategically at the mouth of Gulf of

Kutch in district Devbhumi Dwarka in Gujarat. It is well connected by
road and rail network. The port is closer to bauxite mining area
(~135 km) and in proximity of coal based Thermal power plants in
Gujarat.

Installation of
Mechanization

The mechanization may include but not limited to mobile crane up

gradation with high capacity, mobile hopper, conveyor belt, stackerreclaimer, electrical MCC & control system, dust suppression
system, and fire fighting system.

Focus on to meet
the Future Needs

To meet the traffic to be handled at Gujarat Maritime Board ports

envisaged in FY 20 and to full fill Gujarat Pollution Control Board
(GPCB) norms, the Gujarat Maritime Board has planned to
mechanize its coal handling ports for an environment friendly, safe

& secured cargo handling with improved efficiency and better

output.

Page 8

Growth Drivers
Location Advantage of Gujarat

Gujarat acts as a
gateway to West and
to major states across
India

44 non-major and 1 major port are strategically located across a 1600 kms coastline, which is
the longest among the Maritime States of India
Nearest maritime outlet to Middle East, Africa and Europe
Highest number of commercial cargo ports
Acts as a gateway to northern and central India; connecting them via road, rail and air - thereby
providing immense trading opportunities
Handled 40% of national maritime trade in FY15

Robust Future Development of Ports in Gujarat

Page 9

Capacity Augmentation: Gujarats non-major ports

capacity is expected to reach 864 MMTPA by FY20,
which would require ~52% of the total capacity
augmentation at all non-major ports of India.
Development of Port Cities and Port based
SEZs: Government of Gujarat (GoG) and GMB have
planned to develop port cities and SEZs at Mundra
and Pipavav.
Maritime Cluster and Maritime University to
promote positive synergies between participating
entities (both port and non-port based), enhance
competitiveness and grow the local maritime
economy.
Shipbuilding parks: Gujarat being hub for
Shipbuilding in India and with the special incentives
declared by GoI for Shipbuilding yards, many
shipyards shall set their base in Gujarat.

Gujarat - Competitive Advantage

Gujarat has 45 ports and both Gujarat

and Maharashtra constitute 47% of the
total national port numbers.
The total traffic volumes of non-major
ports continued their upward trajectory
with 45% share in traffic handled at Indian
ports in 2014-15.
Traffic at GMB ports have increased at
CAGR of 13% from 2003-04, while for
Major ports, the traffic has increased at a
CAGR of only 4.9%.
Contrary to the sluggish pace of economic
development during 2014-15 in India and
around the world, GMB has achieved a
fair increase of 8.5% in the traffic, while
the traffic at Major Ports has grown by 4.7
% during the year 2014-15.

Share of GMB in Total Maritime

traffic in India

32%

68%

Traffic at GMB
Ports

National
maritime traffic
excluding GMB

Gujarat ports account for 40.7% of traffic

in the total national port traffic more
than any other State. Out of this, the NonMajor ports of Gujarat constitutes 32%
share. With 336.1 MMT, Gujarat
accounts for 71.4 % of traffic for nonmajor ports of India in 2014-15.
Indias most advanced VTMS unveiled in
the Gulf of Khambhat
The traffic at private ports under GMB
has grown at an impressive CAGR of
24% during past five years
Share of GMB in Total Traffic at
Non-Major Ports

The major share in Indian bunker market

is taken up by Mundra port located in
Gujarat. Bunkering is available majorly at
Mundra and Kandla and to some extent at
Bedi, Jamnagar, Rozi, Sikka, Vadinar &
Navlakhi.

Source: GMB

Page 10

26%

Traffic at GMB
Ports
Traffic at NonMajor Ports

74%

Gujarat - Competitive Advantage

Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many
areas of manufacturing and infrastructure sectors. Gujarats SDP (State Domestic Product) at
current price registered a growth of 11% during the year 2014-15.
Gujarat contributes around 17.2 % to the countrys industrial output whereas the value of output
registered is about 18.5%.
Ease of Doing Business: Only state which comply 100% with Environmental procedures.
Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a
construction permit
Gujarat is the one of the power surplus states in the country as a result it helping in bringing huge
amount of investment from the industries and tagged as preferred investment destination in the
country
Gujarat contributes around 19.1 per cent to Indias total exports of goods in 2014-15.
Gujarat credited with Indias First LNG chemical port terminal at Hazira

Geographical advantage due to location on the west coast of India. The state is well connected
to the major cities of the world by air and sea routes. The state has 45 operational ports, 12
domestic airports and 1 International airport in addition to an extensive rail and road
network.

Gujarat is one of the leading Industrialized States in India and the State has attracted cumulative
FDI worth US$ 12 billion from April 2000 to March 2015
Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical,
auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.

'Petro Capital' of India, contributing significantly

to the country's production of Petrochemicals
(62%),
Chemicals
(53%)
and
pharmaceuticals (45%).
Gujarat has Worlds Largest grass root
petroleum refinery at Jamnagar by Reliance
Industries Limited with a crude processing
capacity of 1.24 million Barrels Per Stream
Day (BPSD)
Page 11

Source: Socio Economic Review of Gujarat 2015-16, DIPP, RBI

Project Information
Port Details
Site Image

Source: GMB

Page 12

Project Information
Port Details

Anchorage: Anchorage is 2.4 km off shore. Vessel upto 7.5 m draught can be berth at this port.
Pilotage: Pilotage is compulsory at the port
Harbour Structure

Sayaji Pier

Length

180 Meter

Width

20.5 Meter

Approach

114 Meter

Berthing Capacity

2 Nos. of Vessels at a Time; One on the Eastern and Other on the

Western Side

Draught

8 Meter

Dry Cargo Berth (DCB)

Length

146 Meter

Width

13.72 Meter

Approach

216 Meter

Berthing Capacity

2 Nos. of Vessels at a Time; One on the Eastern and Other on the

Western Side

Draught

4 Meter

New Lighter Wharf : Length : 100 Meter

Facilities and Equipment's
Tug

2 Nos. 1,600 BHP (Rukmani & Gopnath)

Launch

1 No.- M.L. Gomti (Ferry Service Boat)

Barges

Private Barges are available (No Port Barges)

Launch

1 No. Passenger Launch 470 BHP

Cranes

1 No. of Mobile Crane with Capacity of 12.5 Tonnes

Dredger

1 No. of Grab Dredger

Warehousing & Storage Facilities

16 Godowns & Two Open Sheds

Stacking Area

50,000 Sq. Meter

Source: GMB

Page 13

Project Information
Utility

Power

Water

Fresh Water is supplied by Private

Barges.
Water supply for industry is provided
by Gujarat Water Supply and
Sewerage Board (GWSSB)

The power is supplied by Paschim

Gujarat Vij Company Ltd. (PGVCL)
at the yard.
DG sets installed in yard may be
used in case of power failure.

Logistics & Connectivity

Rail

Okha is well connected with rest

of India by broad gauge railway
line.
Okha is connected to Delhi via
Jamnagar on Western Railway
route.

Road

Existing Infrastructure

Air

~483 km from international airport

at Ahmedabad.
~175 km from domestic airport at
Jamnagar and ~260 km at Rajkot.
Airstrip at Mithapur ~10 km away.

*Source: Socio Economic Review of Gujarat 2015-16, GMB

Page 14

Okha is connected by road to

Jamnagar and Porbandar by State
Highway 6A and SH-6B.
NH-8E passes through the district of
Jamnagar, connecting Somnath
Porbandar - Dwarka. NH-8E is 30
Km away at Dwarka.

The port has 2 jetties for which it can

accommodate total 4 vessels at a
time (East and West on both the
jetty).
The current capacity of cargo
handling is 5 MMTA.
Stacking area of 50,000 sq.m.

Project Information
Current Handling Process
2

Excavator

Dozer

Barge

Jetty

Dozer

Stack Yard

9
Excavator
for Stacking

Truck

Truck

10
Wagon
Loading
Area
11

Excavator

Multiple Handling
Handling in open in all stages
Creation of Dust
Dusty Area
Creation of Pollution

Final
Destination

Mechanized Handling Process

2

4
Grab Crane

Conveyor

Barge

Conveyor

5
Hopper

Single Handling
Handling by Closed System
Page 15 Source: GMB

Stacker
Loading Area

No Dust
No Pollution

Final
Destination

Wagon/ Truck
Loading

Project Information
Key Processes to be Mechanized and its Benefits
Equipment's

Description

Advantage

Mobile Harbour
Crane

Grab Material from Barge and

feed to Hopper

Stacker/ Reclaimer

Stacking and Reclaiming of

Cargo in Stack Yard and
transfer to Truck/Wagon
Loading System.

1. Stacking and Reclaiming can be possible in

environment friendly manner.

Pre-Engineering
Build Shed

Storage of Cargo

1. Storage of Cargo up to height of 12 to 14

Mtr.
2. Zero effect of Wind hence less Air
Pollution.

Truck and Wagon

Loading System

Rapid Loading of Truck and

Wagon

1. Easy and rapid transfer of cargo from

Stack Yard to Truck/Wagon.
2. Fast evacuation from Stack Yard

1.
2.
Hoppers with Dust Received Material from Crane
3.
Suppression System and feed to Conveyor
4.
5.
Closed Type Belt
Receive Material from Hopper
Conveyor System
and transfer to Stack yard.

Speedy Handling
No Spillage
Less Pollution
Ship Turnaround Time Reduced
Less Manpower

Manpower
Floating Crane Handler

No.

Mobile Hopper Machine Handler

No.

Conveyor Belt Surveyor

No.

Stacker & Reclaimer Handling

No.

Material Handling

No.

Administrative Staff

No.

On-shore and Executive Supervisor

No.

Other staff (Guard & Peon)

No.

Total
Page 16

24

Project Information
Project Structure & Implementation Model
Port mechanization projects are usually funded through a PPP model, in which private players can
charge operating charges per ton of cargo handled.
Gujarat Maritime Board (GMB) is contemplating to develop the mechanization project at Okha Port
on a stand alone basis.

Possible Collaboration
Key Technology / Machinery Suppliers / Material Handling System Suppliers
Murata Machinery Limited

Godrej Efacec Automation & Robotics Limited

Schaefer Holding International GmbH

Voith Turbo GmbH & Co. KG

Beumer Group GmbH

ABB Crane Systems

Elecon Engineering Company Limited

Craneports Limited

Aegis Eng. Co. Private Limited

Konecranes

Transflex Conveyors Private Limited

Shree Techno Engineers

Port Operations and Management

JSW Infrastructure

TM International Logistic limited (TMILL)

Sical logistics limited

Essar Logistic Ltd (ELL)

PSTS Logistics Private Limited

Elecon EPC Projects Limited

Boxco Logistics India Private Limited

LD Ports and Logistics

Key Considerations

The project viability is subject to availability of natural resources vis--vis coal and bauxite.

Key project variables such as demand and supply of the minerals, national and international
economic conditions, international trade, Indian exports and imports are subject to variation and
change.

The execution of the project is subject to necessary approvals from regulators.

The cost for the project is indicative only and based on assumption & benchmarking the project
with similar project and subject to change with alteration in any criteria.

Attractiveness of the Region depends on regional development which includes following

parameters: conducive environment for the investors, talent attractiveness for the region, social
infrastructure

Page 17

Project Financials
Project Cost

The total cost for the mechanization of existing jetties is estimated to be ~INR 120 crores,
below is a detailed break down of the equipment to be procured.
Metric

Total Estimated Cost (INR million)

Mobile Harbour Crane Two (2) Nos

425.0

Stacker and reclaimer -2 Nos each including

the belt conveyors

400.0

Dust Suppression System

30.0

Space Frame Shed

100.0

Rapid Wagon Loading System One (1) No.

30.0

Static Truck Loading System including Steel

Structure and Bins One (1) No.

30.0

Civil Works

120

Utilities & Others

10.0

Contingencies (5%)

57.0

Total Cost

INR ~1,202 million or ~120 crores

Benchmark Financial Data for a Similar Project

Mechanization and expansion of a solid cargo terminal at Dahej port
In 2014, Adani Petronet (Dahej) Port Private Ltd. (APPPL) proposed Phase III expansion
involving mechanization of south berth and facilitating backup storage yards. Below is a broad
level breakdown of the key cost components.
APPPL Mechanization and Expansion Cost Estimates
(INR million, 2014)

% of total cost

Civil Works

1,247.5

27%

Mechanical Handling System (Equipment)

2,170.2

47%

Electrical & IT Work

358.6

8%

Utilities & Others

245.6

5%

Miscellaneous & Contingency

621.3

13%

4,643.2

100%

Total
Page 18

INR 68 = 1 USD

Approvals & Incentives

Approvals

Approval Procedure

Approval from the Board Members of the Gujarat Maritime Board

and approval from the Port & Transport Department, Government
of Gujarat.

License

License for implementation of Mechanized Handling System for

handling and evacuating the cargo.

Power & Water

Connection

Additional power can be procured from the existing supplier

Paschim Gujarat Vij Company Ltd. (PGVCL). Similarly, water for
can be procured from the Gujarat Water Supply and Sewerage
Board

Environmental
Clearance

CRZ Clearance (Coastal Clearance) needs to be obtained from

Gujarat Coastal Zone Management Authority (GCZMA).
Additionally, pollution clearance from Gujarat Pollution Control
Board (GPCB) is also required

Performance Standard

Approval to be availed by forwarding a copy of the Performance

Standards to the concerned users/ organization bodies

Tariff

Approval for the upfront tariff for mechanical handling of different

cargoes

Incentives

GOI has allowed foreign direct investment of up to 100 per cent under the automatic route for
projects related to construction and maintenance of ports and harbours;
Permission granted for formation of joint ventures between Major Ports and foreign ports, Major
Ports and Non-Major Ports, and Major Ports and companies;
Various incentives, such as, ten year tax holiday for enterprises engaged in development of Port
sector
Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax
Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer.
Reduced service tax incidence on coastal shipping

Page 19

Ports & Transportation Department, Government of Gujarat

www.pnt.gujarat.gov.in
Gujarat Maritime Board
www.gmbports.org
Industries & Mines Department
www.imd-gujarat.gov.in

Office of Industries Commissioner

www.ic.gujarat.gov.in
Industrial Extension Bureau

www.indextb.com
Gujarat Infrastructure Development Board
www.gidb.org
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

SAGAR BHAVAN Sector 10-A,

Gandhinagar - 382010. Gujarat (India)
Phone: +91 79 23238346 +91 79 23238347
Fax: +91 79 23234703
Email: info@gmbports.in
www.gmbports.org