Some Key issues in cityport development in India

Marten van den Bossche

Managing Partner Ecorys

Paris ,14 September 2012

Some key issues cityport development India

1.How many ports, what capacity, where located, when developed?

2.Main issues in relationship ports and city in India

3.Two cases Mumbai and Chennai

4.Additional development: Delhi-Mumbai Industrial Development Corridor

Key issue 1:

How many ports, what capacity, where located,

when developed?

• What you see today in India is not what you will get. At least 2/3

of Indian port capacity needed is not yet realised.

• There will be a need for 4-6 principal Indian ports, at strategically

chosen locations.

• International examples: container ports of > 1 million TEU in NW-

Europe, US & Canada, China and India

Main container ports in Hamburg-Le Havre range (NW-Europe)

Hamburg 7.9 MTEU

Bremen/Bremerhafen 4.9 MTEU

Rotterdam 11.1 MTEU

Antwerp 8.5 MTEU

Zeebrugge 2.4 MTEU

Le Havre 2.4 MTEU

(Containerisation International 2010)

Main container ports in US & Canada

Vancouver 2.5 MTEU Seattle 2.1 MTEU Tacoma 1.5 MTEU Oakland 2.3 MTEU Los Angeles 7.8 MTEU Long Beach 6.3 MTEU Montreal 1.3 MTEU New York/New Jersey 5.3 MTEU Virginia 1.8 MTEU Charleston 1.4 MTEU Savannah 2.8 MTEU Houston 1.8 MTEU (Containerisation International 2010)

Yingkou 3.3 MTEU

Tjianjin 10.1 MTEU

Dalian 5.2 MTEU

Qingdao 12.0 MTEU

Lianyungan 3.9 MTEU

Taicang 2.2 MTEU

Shanghai 29.1 MTEU

Ningbo 13.1 MTEU

Xiamen 5.8 MTEU

Shenzhen 22.5 MTEU

Guangzhou 12.6 MTEU

Hong-Kong 23.7 MTEU

(Containerisation International 2010)

Main container ports in China

Main container ports in India

Mundra 1.1 MTEU

Jawaharlal Nehru 4.8 MTEU

Chennai 1.2 MTEU*

(Containerisation International 2010, *2009)

Search areas for principal strategic ports in India:

select, plan, and create basic infrastructures

Main Issues for cityports in India

• Current lay-out not equipped for future needs

• Too close to city centres

• Strategic development plans for ports not fitted in into integrated

urban development plan

• Locational alternatives insufficiently planned and developed

• Financing too early in PPP constructions

• Bad hinterland connections through choked city centres/suburbs

Two cases: Mumbai and Chennai

• Exemplary for cityport issues, and both ports are important for

India

Greater Mumbai Area map

Greater Mumbai area aireal

Mumbai city map

Mumbai City Aireal

Mumbai key cityport issues

• Old mumbai port in mid-term to be restructured in urban area

(inefficient, no competitive hinterland possibilities, both road and

rail very congested during greater part of the day)

• JNPT location not extendable for real long term growth potential

of Mumbai area

• Alternative options for Mumbai quite far away from city: either

North (Maroli, etc), or in basin around southern part of Mumbai.

• No strong regional master planning

• Strong competition from Gujarat port locations

Second showcase: Chennai (Map)

Chennai aireal

Chennai Close-up

Chennai key cityport issues

• Chennai port is surrounded at all sides by the city (road very

congested during greater part of the day)

• Current location too small for long term development potential

• Alternative options for current Chennai Port: only coal to Ennore,

but containers and iron ore planned to stay at Chennai.

• Tension on city functioning will only increase

• City gets “disconnected” from its sea shore due to heavy port

related infrastructures

• No strong regional master planning

Example 3; Development of the DMIDC

• New cross-state spatial planning initiative aimed at integrated

corridor planning between Delhi and Mumbai

• Huge scale: 11 industrial zones along 1,500 km DM corridor, 6

lane highway, dedicated freight railway, five airports, three new

sea ports and seven new cities

• Total costs est. 65 billion euro

• First phase finished in 2018, 35% of projects financed (public

goods/infrastructures by governments, rest PPP)

• Conclusion for city ports: even further stress on city port

symbiosis

Some final observations

• India has no “tradition” in sea ports: largest part of GDP was

produced and consumed locally

• Only recently (last 20 years) gradual opening up to rest of the

world: strong GDP growth combined with increasing shares of

both exports and imports

• Spatial planning system is not equipped for long term implications

for necessary port development in urban environments

• So almost every cityport experiences large “stress” from urban

growth combined with port expansion needs

• These stress factors are currently not properly solved, and

thereby form a direct bottleneck for continuation of the current

growth paths.