14/2/2008 1 Japan-India PPP Seminar ~ Infrastructure in the Eleventh Plan - Engaging the Private Sector ~ 14 th February, 2008 India International Centre Annex, Delhi Hiromitsu Kuramoto Senior Managing Corporate Officer NYK Line
Jan 11, 2016
14/2/2008 1
Japan-India PPP Seminar ~ Infrastructure in the Eleventh Plan
- Engaging the Private Sector ~
14th February, 2008
India International Centre Annex, Delhi
Hiromitsu Kuramoto
Senior Managing Corporate Officer
NYK Line
14/2/2008 2
Corporate Profile
Company Name : Nippon Yusen Kabushiki Kaisha Established : October 1, 1885 Paid-in Capital : \88,531 million (US$754 million) Revenue : \2,164,279 million (US$18,334 million) Operating Income : \107,534 million (US$911 million) Rating : A3 by Moody’s Investors Service Scale of Fleet : 742 vessels Employees : Approx. 48,000
The above data is on consolidated basisUS$ = @ Japanese Yen 118.05 as of March 31, 2007
14/2/2008 3
Business at a Glance Fleet : 742 vessels (2007)
932 vessels (2010)
Logistics center : 34 countries
: 379 warehouses
: 2.2mil m2
Container Terminals (2007)
: In 6 countries
: 34 terminals
: 8.27 mil. teus
RORO Terminals : In 4 countries
: 7 terminals
Air cargo : 10 air freighters (2007) 22 air freighters (2
010)As of March 2007
14/2/2008 4
History
1885 NYK Line inaugurated operations
1893 Tied up with Mr.J.N.Tata, established Japan-India liner service between Kobe and Bombay
1911 Commence Calcutta liner service
1992 Tata NYK Transport Systems Ltd. is incorporated as a 50:50 JV between NYK and Tata Tea Ltd as the exclusive agent in India for
NYK.2003 Name of the company was changed to NYK Line (India) Ltd after re
view of shareholding structure in 2001.2007 TATA Steel Ltd.and NYK established a joint shipping company for
the carriage of coal and iron ore etc. • Bombay-Kobe 1Bombay-Kobe 1stst Int’l liner service in 1893 Int’l liner service in 1893• Serving India for over 110 yearsServing India for over 110 years
14/2/2008 5
Activities in India
• NYK LINE (INDIA) LTD.– Business : Shipping agency for container business– HQ/Branch : Mumbai, Delhi, Ludhiana, Pipavav, Kolkata, Chennai, Bangalore, Cochin, Tuticorin – No.of staff : 190
• NYK MASTER AUTO LOGISTICS LTD.– Business : Truck transportation of finished vehicles– HQ/Branch : Mumbai / Delhi, Chennai– Main client : Maruti, Tata Motors– No.of staff : 30– No. of Trailer : 47
• NYK LOGISTICS (INDIA) LTD. – Business : Warehousing, Forwarding– HQ/Branch : Mumbai / Delhi, Kolkata, Channai, Pune, Cochin, Tuticorin – Main client : Sony, Tata, Brother, JCB– Warehouses : Mumbai, Grugaon, Chennai– No.of staff : 170
• Yusen Air & Sea Service (India) Pvt. Ltd.– Business : Freight Forwarding (air freight) – HQ/Branch : Delhi (HQ), Mumbai, Bagalore– No. of staff : 40
• NYK SHIPMANAGEMENT PTE LTD– Business : Recruitment & Training for Seafarers– HQ / Branch : Mumbai / Delhi, Kolkata, Channai– No. of Staff : 29
14/2/2008 6
Keys to Success
1. Harmonized exploitation of infrastructure
Continued
Container Terminals
Roll-On/Roll-Off Terminals
Roads Railways ICD (Inland Container Depot)
i) Hardware
14/2/2008 7
Keys to Success
Continued
Deregulation & Reformulation of Laws Motor Vehicle Act 1988 (5th Amendment) Central Motor Vehicles Rules, 1989 (5th Amendment)
Planned land acquisition by Public sector and smooth procedure for Change of Land Use
ICEGATE (Indian Customs & Excise Gateway) Customs EDI Format needs to be unified and simplified Require ONE system for customs’ clearance
ii) Software – Government Policy
14/2/2008 8
Supply Chain Cyclefor Automobile Industry
RORO terminal
~ ~ ~ ~ ~~ ~ ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~ ~ ~
Carrier car
Vehicledistribution
center
Dealer
Consumers
Supplier
Supplier
Road / Highway / Rail
RORO terminal
Carrier car
Car carrier
Finished cars
Parts
Parts
Consolidation center
CKD, Parts, etc
Rail & Truck
Development by Public and Private
Asia / Japan India
Rail / Truck
Inland Container
Depot
Factory
Carrier carDealer
Consumers
Finished cars
Container ship
CKD, Parts, etc
Container terminal
Container terminal
14/2/2008 9
Keys to Success
From Historical and Geographic perspective, Mumbai/JNPT(Nhava Sheva) remains the gateway to/from Western countries
ENNORE Port, strategically located on the south east coast, must be developed as another gateway port for SE ASIA and FE Chennai Port has little space for further expansion SE ASIA and FE are the fastest growing region and have more or l
ess 50% of global container traffic volume
2. Balanced development between the regions
14/2/2008 10
(‘000TEU)
Container Throughputat JNPT & Mumbai
Grew at 5-year CAGR of 13.5% from 2001 and dominate approximately 60% of entire Indian container traffic
Continue to remain as the gateway port between Europe, USA, M.East and Africa
Port 2001 2002 2003 2004 2005 20062001-06CAGR
JNP & Mumbai 1,827 2,143 2,466 2,590 2,823 3,437 13.5%
Source: Containerization International
14/2/2008 11
Future Supply & Demand at JNPT & Mumbai
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Demand (Throughput) 3,900 4,425 5,021 5,697 6,464 7,335 8,323 9,444 10,716 12,159
Supply (Capacity) 3,750 3,750 3,750 3,750 5,150 7,350 9,550 9,550 9,550 9,550
Utilization (%) 104% 118% 134% 152% 126% 100% 87% 99% 112% 127%
Assumption : Annual growth rate of 13.5%
(‘000TEU)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2007 08 09 10 11 12 13 14 15 16
'00
0T
EU
0%
20%
40%
60%
80%
100%
120%
140%
160%
Demand (Throughput)
Supply (Capacity)
Utilization (%)
• Demand will steadily increase and consequently far exceed capacity in the short term
• Additional capacity definitely required
14/2/2008 12
Container Throughput at Chennai
Chennai has grown at 5-year CAGR of 22.5%, much faster than JNPT & Mumbai
Port 2001 2002 2003 2004 2005 20062001-06CAGR
Chennai 344 425 539 617 735 957 22.5%Source: Containerization International
14/2/2008 13
Future Supply & Demandat Chennai
Assumption : Annual growth rate 22.5%
(‘000TEU)
• Chennai is an important port as the gateway to/from SE Asia and FE
• Nevertheless, it has little space for further expansion after 2nd Terminal under construction by PSA and SICAL
• Need to develop additional capacity at Ennore Port with proximity of Chennai and less environmental problems
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Demand (Throughput) 1,172 1,435 1,757 2,152 2,635 3,227 3,952 4,840 5,927 7,258
Supply (Capacity) 950 1,400 1,400 1,400 3,050 3,800 3,800 3,800 3,800 3,800
Utilization (%) 123% 151% 185% 227% 86% 85% 104% 127% 156% 191%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2007 08 09 10 11 12 13 14 15 16
('000
TEU
)
0%
50%
100%
150%
200%
250%
Demand (Throughput)Supply (Capacity)Utilization (%)
14/2/2008 14
Keys to Success3. Look Asia!, Look
Japan!
Asia is the most important region both in export & import
India Export & Import Trade Amount- Share by Region -
0%
5%
10%
15%
20%
25%
30%
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 Europe Americas AsiaM.East Others
14/2/2008 15
How can NYK contribute ?
1. Development and Operation of container terminal at ;• JNPT 4th Container Terminal, and/or• Terminal in Gujarat
2. Development and Operation of container terminal at ;• Ennore Port
3. Operate RORO terminals developed by Public sector on both East and West coast
14/2/2008 16
Strength of NYK - Global Container Carriers-
< Individual Carrier Ranking > (TEU)1 MAERSK 1,610,0002 MSC 990,0003 CMA-CGM 650,0004 EVERGREEN 550,0005 HAPAG-LLOYD 440,0006 COSCO 380,0007 CHINA SHIPPING 360,0008 HAJIN 340,0009 NYK 310,00010 APL 310,00011 OOCL 300,00012 MOL 280,00013 K-LINE 270,00014 YANGMING 260,000 15 ZIM 220,00016 CSAV 220,00017 HAMBURG-SUD 190,00018 HYUNDAI 180,000
MISC 50,000
< Group Ranking Top 5 >(TEU)
1 MAERSK 1,610,000
2 CKYH 1,250,000
3 Grand Alliance 1,100,000
4 MSC 990,000
5 TNWA 770,000
Continued
Source: MDS 2006
14/2/2008 17
“Hercules Service”
“Hyper Galex Service”
“China India Express”
“Pakistan India Express”
Strength of NYK- Container Shipping -
Continued
•Four weekly direct sailings between JNPT and SE Asia / FE
•Another new service - JNPT / China direct linkage - is coming soon
•No other carriers than NYK serving JNPT directly from Japan
14/2/2008 18
Strength of NYK- Container Shipping -
• NYK is the 1st carrier launched weekly service between Chennai and SE ASIA
• Two weekly direct sailings between Chennai and SE Asia / FE
Continued
“Thai Chennai Express”
“Asia Chennai Service”
14/2/2008 19
Container Terminals
Tokyo
Yokohama
Nagoya (2)
Kobe
Japan
Canada Netherlands
Thailand
Australia
Taiwan
Montreal
Halifax
Amsterdam
Sydney
Laem Chabang
China
Dalian (2008)
Shanghai (2009)
USA
Los Angeles
Houston
Tacoma (2012)
Kaohsiung
Continued
Total 13 terminals in 6 countries
Handled 8.3 million teus in 2006 (incl. stevedoring)* As of Dec 2007
14/2/2008 20
Strength of NYK- Container Terminal -
JNPTJNPT
ENNOREENNORE
NYK, as the lead member, is aiming to develop and operate new terminals at JNPT and ENNORE in alliance with Asia based global carriers.
Asian Carriers’ ConsortiumAsian Carriers’ Consortium
NYK LineNYK Line (Leader)(Leader) Hyundai Merchant Hyundai Merchant MarineMarine
++ Evergreen MarineEvergreen Marine
Continued
14/2/2008 21
Strength of NYK- RORO Carrier & RORO Terminal -
• Largest operator of RORO vessels in the world
• Strong relations with all the major automobile manufacturers, TOYOTA, SUZUKI, MARUTI, TATA MOTORS
• Rich experiences in operation of RORO terminals in overseas (China, Singapore, Thailand and Belgian)
ContinuedSource : “World PCC Fleet” July 2007 Fearnresearch
Capacity (Cars)
459,911
0
100,000
200,000
300,000
400,000
500,000
NYK MOL EUKOR K LINE WWL
Share 17%
14/2/2008 22
RORO TerminalsChina
Dalian Tianjin Shanghai
Thailand Laem
Chabang
Antwerp Zeebrugge
Belgium
Singapore Singapore
RegionLand area
(ha)
Storage capacity
(cars)
Far East 106 34,000
SE Asia 33 24,000
Europe 238 98,000
Total 377 156,000
14/2/2008 23
RORO Terminal Requirements
Capacity : 500,000 vehicles p.a.
Quay length : 540 m
Draft at Berth : 12 m
Width of apron : 50 m
Parking Space : 250,000 m2 (adjacent to the terminal)
Free from tidal/current factors for operations on 24x7 basis
Rail-siding with adjustable ramp
Land for PDI facilities for Multiple automobile companies
Area free of dust pollution
Continued
14/2/2008 24
RORO Terminal – Planned Layout
Continued
14/2/2008 25
Keys to Sucess
1. Harmonized exploitation of infrastructure
2. Balanced development between the regions
3. Look Asia!, Look Japan!
14/2/2008 26
Our Wishes
1. Concession to develop, operate and manage JNPT 4th Container Terminal or alternative in Gujarat
2. Concession to develop, operate and manage new container terminal at Ennore Port
3. Concession to Operate dedicated RORO terminals developed by PUBIC sector
14/2/2008 27
Thank you !