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Ports & ShippingIndia Infrastructure PublishingB-17, Qutab Institutional AreaNew Delhi 110016Tel: 91-11-4103 4600 / 4601Fax: 91-11-2653 1196E-mail: info@indiainfrastructure.comNews

April 16, 2012 April 22, 2012

Ports Reportedly, the constructionof the fourth containerterminal at the Jawaharlal Nehru Port Trust(JNPT)may be delayed furtherwith the dissolutionof thejo int venture (JV), which was awarded thecontract. The Rs 67-billion project was awarded to a JV of PSA International of Singapore and Mumbai-based ABG Ports Private Limited. According to sources, PSA International is likely to take soleresponsibility for the construction of the terminal on receiving the port trust approval. The project involvesa capacity addition of 4.8 million twentyfoot equivalent units (TEUs) at the JNPT. The Chennai International Terminals Private Limited (CITPL) has received four new ship toshore quay cranes(QC) and eight new rubber ty re gantry cranes(RTGCs). With these acquisitions,CITPL has a total of seven QCs and 18 RTGCs and more than double its existing terminal handlingcapacity. Each crane will undergo commissioning tests and will be progressively deployed for operationsfrom May 2012. The four Post Panamax STS cranes are capable of lifting two 20-foot containers permove. The private container terminal located at Chennai port is owned and managed by PSAInternational, Singapore. The container terminalof Larsen and Toubro's (L&T)Kattupalli shipyard-cum-captive port isready for commissioning. Currently, the terminal is awaiting communication from the Customsdepartment notifying the terminal. Reportedly, the company is ready with its container terminal (berthtwo). The six-line gate complex is connected to two container berths by a four-lane road. In December2011, three rail-mounted quayside cranes (RMQCs) arrived at the L&T terminal from China, and areready for operations. The port facility also has 15 RTGCs, two reach stackers and 420 reefer plug points.On April 12, 2012, L&T received Zhen Hua 20, a heavy lift vessel, with three more RMQCs to beinstalled at the second berth. TheCochin Port Trust(CPT)plans to increase itsthroughput to50 million tonne per annum (mtpa) from thecurrent levelof20 mtpaover thenext twotothree years . The port recorded a 12.4-per cent growth in the last fiscal year, 2011-12. The liquefied natural gas (LNG) terminal which is nearingcompletion is expected to add a cargo capacity of five mtpa. Further, the Bharat Petroleum Corporation

Limited (BPCL)-Kochi Refinery expansion is likely to add another 10 mt in the next two-three years.Meanwhile, the port is planning to award the contract for four mt general cargo berth on the Q8-Q9berths by December 2012. The contract for the 45-acre ship repair yard is also likely to be awarded inthe current fiscal. Maersk Line has included Port of Pipavav in its MECL1 service starting Apri l 2012. MaerskWisconsin was the first vessel to make the maiden call for the MECL1 service. The new service willconnect customers in Gujarat and the North Indian hinterland directly to the USA. The ports of call for theMECL service are Mumbai-Nhava Sheva (JNPT), Salalah, New York, Charleston, Norfolk, New York,Jebel Ali, Karachi - Port Muhammad Bin Qasim, Pipavav, Mumbai - Nhava Sheva (JNPT). The State Cabinetof Keralahas approveda detailed project reportto developthe Thangasseryportnear Kollam. Moreover, the cabinet has also given the go-ahead to a revised request for proposaldocument and a draft concession agreement with respect to the project. The development of the port willbe taken up in two phases, with an initial thrust on basic infrastructure. A wharf will be laid out to the

southeast of the port periphery in the second stage of development of the project. The first and secondphase of the project will require an investment of Rs 1.11 billion and Rs 1.25 billion respectively. Thegovernment has already invested Rs 710.6 million as part of the first phase. According to reports, Spanish engineering group Duro Felguera has won a Euro 62 millioncontract from the Gangavaram Port Limited to expand the port terminal. The contract aims toincrease the coal handling capacity of the terminal, whose construction was undertaken by DuroFelguera through its Division of Plant Industry between 2006 and 2008. The project will be executed on aturnkey basis. As part of the project, capacity of both ship unloading and storage of coal in the yards ofthe harbour will be doubled. Reportedly, the state government has asked the Welspun consortium, the sole bidder for theVizhinjam deepwater seaport and international container transshipment terminal (ICTT) project torework the financial bid and submit the best offer. The consortium had sought an upfront grant of Rs 4.80

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Ports & ShippingIndia Infrastructure PublishingB-17, Qutab Institutional AreaNew Delhi 110016Tel: 91-11-4103 4600 / 4601Fax: 91-11-2653 1196E-mail: info@indiainfrastructure.comNews

April 16, 2012 April 22, 2012

billion from the government over 16 years to operate the port. The project will be undertaken on a

landlord port model. The government will invest Rs 30.4 billion in creating the basic port infrastructure,including the construction of a breakwater and reclamation of land for the port terminals, quay walls, andberths. The infrastructure and assets will be leased to a private operator who will have to invest Rs 9.7billion on building the superstructure and installing equipment such as cranes and lifts. The revenuesfrom the port operation will be shared by the operator and the government during the lease period of 30years. The government plans to commission the first phase of the project by 2015. The Central Warehousing Corporation (CWC) has started a new inland container depot atKannur. At present, CWC is operating 37 container freight stations (CFSs)/internal container depots(ICDs) and air cargo complexes in the country. The ICD Kannur will be the 38 thunit catering to eximcontainer clearance facilities. The Kannur facility, set up at an investment of Rs 40 million, is capable ofhandling more than 3,000 TEUs a year. The total area of the ICD is 4.84 acre with an open containeryard spread over 2,500 sq metre. Angre Portin Maharashtra's coastal distric t of Ratnagiri is expectedto commenceoperationsfromApri l 24, 2012. The port is expected to ease the problem of congestion at JNPT and reduce thelogistics costs. Chowgule Ports & Infrastructure Private Limited has invested Rs 5.20 billion to developthe all-weather port with a natural draught of around 10 metre (m), which will subsequently be increasedto 13 m. On completion, the Angre port will be able to handle vessels up to 80,000 deadweight tonnage(DWT). The Container Corporation of India(Concor) has started operationof container rakesfrom theNew Mangalore Port Trust (NMPT) to Bangalore. The first container rake from Mangalore toBangalore began operations on April 10, 2012.

Shipping The Shipping Corporation of India Limited (SCI) has extended the contract for two multi-support vessels(MSVs) with Dolphin Offshore Enterprises (India) Limited(DOEIL). The contract for

two MSVs, Samudra Sevak and Samudra Prabha,has been extended for a period of one year witheffect from March 24, 2012 to March 23, 2013 with DOEIL. SCI has the option to extend it for a furtherperiod of six months in two extensions of three months each on the same rates, terms and conditions.The projected contract value for this contract for the year 2012-2013 is estimated at Rs 575 million. Meanwhile, SCI has taken the delivery of M V SCI Kundan, an anchor handling, towing andsupply vessel (AHTS). The vessel has a capacity of 120 tonne bollard pull. The vessel has a grosstonnage of 2,067 tonne and deadweight of 1,994 tonne. The company had signed contracts foracquisition of two 120 tonne AHTS vessels with Cochin Shipyard Limited. The first vessel, M V SCIPawanwas delivered to SCI in 2011. SCI has commenced its direct European service through ICTT Vallarpadamwith vessel, SCIChennai. The rotation of service will be Colombo-Kochi-JNPT-Mundra-Salalah-Gio Tauro-Felixstowe-Hamburg-Antwerp-Gio Tauro-Colombo. The new service will facilitate direct loading for Europeanmarkets from Cochin. SCI Chennaiis a mainliner of 4,400 TEUs capacity.

Essar Shipping Limited(ESL) has secureda drilling contractfor two drill rigsfor $25 million.The company has won a contract from New Sino Oil Company (NSOC) to drill five wells in Brunei. EssarOilfield Services India Limited (EOSIL), a wholly-owned subsidiary of ESL will execute the drilling ofthese vessels. The company will deploy its deep drilling land rig LR4 from August 2012 onwards forNSOC. This contract, expected to last initially for about nine months, includes the option of extending itto drill three additional wells in and around the same area. The extension will bring the total duration ofthe drilling programme to 15 months. In addition, the company has won another contract for its rig LR3from B G Shirke Limited, who will commence drilling operations in its first exploration venture in Indiafrom May 2012. The two contracts are expected to generate total revenues of $25 million over a periodof about 15 months.

Note: Rs 1 crore = Rs 0.01 billion; Rs 1 lakh = Rs 0.1 million; Rs 1,000 million = Rs 1 billion