The writing is on the wall. Even a passive watcher of the Indian port sector knows that major ports are on a decline and private ports are, slowly but surely, taking on the mantle of India’s EXIM trade. And at the forefront of this tectonic shift in the Indian port sector is Adani Ports and Special Economic Zone Ltd. (APSEZL), which not only owns India’s largest port by traffic, but also owns the country’s largest SEZ by notified area – both at Mundra – and several other ports and terminals across the country’s eastern and western coasts. So, in order to understand the reasons behind such outstanding performance, and also figure out if Mundra can be replicated elsewhere, The Dollar Business spent a couple of days at one of APSEZL’s newest and smallest ports – Adani Hazira Port Private Ltd. (AHPPL)

Naveen Kumar | May 2015 Issue | The Dollar Business

Having commenced operation during the first quarter of FY2012, AHPPL is barely three years old and accounts for just a miniscule of the total traffic handled by all APSEZL ports. What will go in its favour, once all its expansion is over and all its facilities are fully operationalised, however, is its locational advantage. Located just 270 km north of Mumbai and 40 km away from Surat, AHPPL is a great alternative to Jawaharlal Nehru Port Trust (JNPT) for shipments coming from places north of Mumbai. This is why several traditional JNPT users have already started using AHPPL. Speaking about this, Sanjib Chatterjee, Head, SCM, Grasim Industries Ltd., a company which has done exactly that, told The Dollar Business, “We are using AHPPL for exporting VSF (Viscous Special Fibre) produced in two of our plants in Gujarat’s Bharuch district, since both of them are located within 100 km of it.” Captain Kuldeep Singh, Port Officer, Gujarat Maritime Board, also thinks AHPPL is slowly emerging as an alternative to JNPT, at least for some users. “It (AHPPL) is much smaller than JNPT, but is a modern port and has good infrastructure. Many users are happy with it, since they have got an alternative, at a lesser distance,” he told The Dollar Business. Agrees Manish Dokania, VP (Commercial), Hindalco, as he tells The Dollar Business, “AHPPL has better proximity to our plants when compared to most other ports. Hence, we use it for exporting copper cathodes and importing our feedstock.

Containers at core

AHPPL has a deep draft of 13 metres and, hence, is capable of handling Panamax vessels. Currently, it has five operational berths of which two are for handling containers, one for coal and the remaining two are multipurpose berths capable of handling both liquid as well as dry bulk. Although the container terminal handled just 0.13 million TEUs in FY2014, it has a planned capacity of a million TEUs and hence, is expected to be a strong alternative to JNPT in the future. Today, it has a backup area that includes 3,381 ground slots for stacking containers and has dedicated reefer racks, with 129 plug points.

A striking feature of AHPPL’s container terminal is zero pedestrian movement. For, in order to eliminate all possibilities of accidents, all movement inside it is done via electric golf carts. AHPPL’s container terminal also uses several other innovative techniques. For example, at the terminal, one can see auto-steered E-RTGs that use laser sensors and are considered more advanced, accurate and reliable than the more expensive GPS and DGPS based auto-steering solutions that are used at other ports. Two auto-position detection systems that use laser and proximity sensors are also being used at the port. Using a proprietary software, the system of updating container location has also been automated at AHPPL. Its Terminal Operating System (TOS), called Adani TOS, has web-based features, multi-terminal operating functionality and allows EDI (electronic data interchange) transaction.

Similarly, the use of RFID tags in trucks entering the terminal ensures smooth and quick movement. All this has given it its own share of fans, one of them being Rajesh Kansagara, Director, Himani Shipping. “Being a new port, Adani Hazira has the latest infrastructure equipment and is operating in a very professional manner,” Kansagara told The Dollar Business.

All ends covered

It’s not that AHPPL has world class infrastructure only for container handling. Its two multi-purpose berths have liquid tanker berthing facility for handling chemicals. The Port also has specialised tanks, with chilling facility, for Styrene Monomer and, with heating facility, for Crystal Phenol. It has stainless steel tanks for acetic acid storage and 30 loading bays for simultaneous loading from tanks. Each tank at the port has a dedicated pump and is connected with two truck loading bays for simultaneous discharge.

Bulk operations at AHPPL are highly mechanised as well, with high speed conveyor belts for coal and four MHCs (Mobile Harbour Cranes) of 75 MT SWL (Safe Working Load) with 46 CBM grabs and 75 MT hooks. One of the main strengths of AHPPL, however, is exclusive zones for refrigerated cargo, which banana and pharmaceutical exporters of the region have taken a special liking for.

Almost unique

A big strength of AHPPL is faster documentation, which has resulted in a lower turnaround time. Validating this, Dokania said, “The turnaround time at AHPPL is lower than that at most other ports. Better co-ordination and less safety and security issues are also some of its major strengths.” Similarly, the on-dock EXIM yard at AHPPL, which is located just 1 km away from the container yard, greatly enhances efficiency, particularly given the fact that transporters running around to collect containers is a common sight at JNPT. Explaining how the on-dock yard helps increase efficiency, Dokania said, “Normally, container freight stations (CFS) are not part of port operations. But at AHPPL, they are integrated, which allows us to backhaul cargo as the containers in which we load export cargo are the same containers from which we take imported feedstock.

Need fixing

Being a new port, AHPPL suffers from lack of visibility and not many ships call it. Many of the larger shipping lines, rather than calling it directly, use feeder services from bigger ports like Mundra and JNPT to execute their operations, which increases cost. Speaking about this, Dokania said, “They have to get more shipping lines calling it. Given that not many call it currently, we don’t have a choice but to go to specific shipping lines, some of which charge higher.” Another big issue at AHPPL is the lack of direct rail connectivity to port premises. Although its officials claim the issue is being addressed and it’s just a matter of time, there’s hardly any activity in and around the port area to suggest that rail connectivity would be a reality in the near future. “Rail connectivity is the main obstacle for AHPPL. Road transportation doesn’t provide the kind of options rail does and is also more expensive,” Kansagara said, echoing the concerns of many. Capt. Singh, though, has an eye on the future. “If AHPPL gets connected through rail, it will be an excellent port for containers, given that traffic at JNPT is high and sometimes one has to wait long, which is not the case at AHPPL,” he told The Dollar Business.

For the future

What Adani Group has achieved in India’s port sector is nothing short of stunning. Hence, even one of its smallest and youngest ports has built a lot of expectations. “This is a new port which is improving day by day and its future will depend as how well it is able to satisfy customers,” Kansagara said, summing up his views of AHPPL. It is this expectation and its locational advantage which have already got it loyal customers like Grasim Industries. “Lesser freight cost is the biggest advantage of using AHPPL. Currently, we route 47% of our shipping requirement through it, because of such cost saving,” Chatterjee said, giving out numbers.

If this is just the beginning, only the sky can be the limit for AHPPL. And given the pedigree of its promoters, well, perhaps, even that would be too small.