Krishnapatnam Port — the new world port for the new India

One of the India’s fastest growing seaports, Krishnapatnam Port has emerged as a world-class port with outstanding services and facilities. It is fast becoming a port of choice for all international cargo originating from and destined to the Southern and Central India. Krishnapatnam Port is a deepwater all-weather port with 365 days 24×7 operations being developed on build-operate- share-transfer basis in public–private partnership mode between the government of Andhra Pradesh and the Krishnapatnam Port Company Limited promoted by C.V.R. Group. It was inaugurated and dedicated to the nation on 17 July 2008, by Smt. Sonia Gandhi, Honourable Chairperson UPA.

The port is ideally located on the east coast of India in Nellore District of Andhra Pradesh, 180km north of Chennai city. Due to its close proximity to the Hospet Bellary region, iron ore was exported through barge operations from the port even before the current owners took control. After Krishnapatnam Port Company was formed, it took less than 18 months for the port to be commissioned for business requirements. The port initially handled iron ore exports originating from Karnataka & parts of Andhra Pradesh. In the first fiscal year (2008/09) of operations, the port handled 8.2mt (million metric tonnes) of cargo, which was a remarkable feat unheard in the Indian port industry. From then on, there was no turning back.

In order to support the growing export trade, the port built more berths, brought in better and heavy load-bearing capacity shore cranes, increased the draught from a modest 11 metres to 18 metres to accommodate Capesize vessels. Simultaneously, the port invested in infrastructure to increase connectivity — a dedicated four-lane road connecting to the NH-5 highway and a dedicated railway line connecting to the Chennai–Kolkata main line.

From 8.2mt of cargo, the volumes almost doubled to 16.14mt in the fiscal year 2009/10, and the port was all set to support the growth trajectory in the EXIM (export/import) trade.

Krishnapatnam Port’s story is a good case study in Indian maritime history of how a port, in fewer than five years, has managed to create a name in the global maritime trade.

With a vision to evolve as India’s largest gateway in the East Coast and the port of choice with world-class infrastructure, efficiency, hinterland connectivity and unrivalled customer service — along with eco-friendly development — the port reached out to the EXIM trade in the hinterland offering unique customized packages according to customer need.

With an ever-increasing demand for coal-based industries, Krishnapatnam Port offered unique benefits for import clients. The port dredged deeper to accommodate bigger vessels; unloaded cargo at discharge rates unattained in the stevedoring community, provided berthing on arrival and fastest turnaround time for all types of vessels. An advantage of the huge back-up area of 6,500 acres helped in providing dedicated storage areas to its clients. As a result, the imports of coal started to increase significantly.

At the same time, the port provided a unique solution of direct pipeline for all edible oil refineries, which let to several leading refineries setting up their units close to the port. The efficiency and operational dynamism of the port made it a perfect destination for the edible oil refinery plants. Currently, six edible oil refinery plants have started operations around the port. The port’s efforts were noticed and recognized when it won the prestigious Lloyd’s List Global Awards 2011 as the Best Port Operator in the world. It also won the IHS McCloskey Coal Port of the Operator for 2011.

Krishnapatnam Port accelerated to complete its INR 4,000- crore phase II development plan offering the best infrastructural facilities for cargo handling operations and efficient services to all its customers. New berths were built, bringing the total to ten; draught was increased to 18.0 metres, the deepest offered by any port in India; a total of 13 cargo handling shore cranes operated at the port; 21 weighbridges were built; 15 dedicated railway sidings were laid and efficiency was increased, leading to nil demurrage and significant benefits in ocean freights. The port’s commitment could be seen when it achieved a world record for discharging 122,247 metric tonnes of coal in just 24 hours using mobile harbour cranes. More than 100 Panamax/Capesize vessels have been handled from 2010/11 until now, and more than 10,500 rakes have been handled inside the port sidings. The port also laid a 16-inch pipeline facility directly from the berth to the edible oil refineries, making it an ideal destination for port-based industries.

Such infrastructural facilities helped the port to also handle cargoes like rock phosphate, gypsum, palm kernel, granite, quartz, barytes, and ODC cargos. In its quest to diversify the cargo base, the port has built clean warehouses, purchased bagging machines and made itself capable of handling agri-commodities like raw sugar, maize, rice. It has become one of the top most exporting Indian ports for wheat.

So when the management of the port realized that the existing gateways in the east coast of India do not address the basic requirements of a quality container gateway — the hassle- free land, sea side connectivity, adequate storage area, and equipment which matches the growing demand, they decided to offer a world-class container gateway taking all the issues

highlighted above at conceptualization stage. Krishnapatnam Port Container Terminal (KPCT) came in to existence just a few months ago. With the latest terminal operating system — Navis N4 — and the fastest and the largest container handling quay cranes, shipping fraternity is already taking note of KPCT as the modern container gateway terminal. Exporters are now becoming competitive in the global market by reaping the benefits of a modern container terminal at their door step. With plethora of ancillary requirements, the container terminal provides huge direct or indirect job or business opportunities.

KPCT is like a boon for the tobacco, spice, cotton, stone, minerals, agro products (rice, maize), and sea-food originating in the footprint of the terminal. KPCT’s logistical advantage, faster turnaround times and competitive tariffs are making exporters competitive in international trade.

Management’s new initiative — called the Krishnapatnam Port Trade and Transport terminal — is a vital facility that helps the port personnel to co-ordinate and organize the various requirements of the customers. Such unique facilities combined with integrated real time control of cargo handling through Automatic Vehicle Location System (AVLS), Enterprise Port Management System (EPMS) and three-tier security protection guards and protects the port and its cargoes.

Along with economic development Krishnapatnam Port also believes in balanced and sustainable development with the surrounding environment. The port conducts CSR activities through the CVR Foundation, which as part of its commitment to the community has taken up several socio-economic growth initiatives besides other clean and green measures.

Though the current capacity of the port is 50mt of cargo, this fiscal year (2012/13) port will touch a new milestone by handling 21mt of total cargo volumes, of which 16mt will be coal. Krishnapatnam port has also received certificates for an Integrated Management System comprising ISO 9001-2008 Quality Management System, ISO 14001-2004 Environment Management System, OHSAS 18001-2007 Occupational Health

and Safety Management System and ISO 28001-2007 Supply Chain Security Management System by Det Norske Veritas.

Krishnapatnam Port’s final plan will have a handling capacity of 200mt per annum, with 42 berths. The total quay length will be 12.5km with a draught of 21 metres, capable of handling 200,000dwt Super Capesize vessels. It will have a mega container terminal, Ro-Ro terminal, liquid bulk terminal, world class bunkering, rig repairing and offshore facilities. It will play a catalytic role in bringing about an industrial revolution in its hinterland by becoming the gateway for exports from and imports to SEZs, logistic parks, cement, steel and thermal power plants.

In time to come, Krishnapatnam Port will be India’s largest port and will drive the economic growth of its region. 


Logmarin integral to new power plant contract award

Renowned shipping logistics expert Logmarin Advisers has played a significant role in the recent award of a contract to build, own and operate a 1,2000MW coal-fired power plant in Vietnam.

The contract for the power plant, in Nghi Son,Thanh Hoa province, was awarded to the consortium Marubeni Corporation and Korea Electric Power Corporation (KEPCO). The consortium recognized Logmarin’s contribution to the achievement ...”we thank you for your participation in helping us submit a winning bid...” .This achievement is a clear proof of team-working potential and of experience and synergies of all the parties. The consortium will also rely on advice from Logmarin for the project implementation.

The power plant will sell electricity to VietNam Electricity (EVN, the largest power company in Vietnam) for a 25-year term from its target completion date of 2018.


Project: Nghi Son 2 Power Station 

Location: North-Eastern coast of Vietnam 
Owner/client: Marubeni Corporation and Korea Electric Power Corporation

The bottleneck

Build a coal-fired power plant on a greenfield flat tidal land, formerly used for salt production from seawater.

The Vietnamese Authority preliminary envisaged plan foresaw the construction of the terminal facility and entrance channel to accommodate Handysize vessels of about 40,000dwt. Such a solution implied significant dredging and civil works and higher freight costs associated with the import in restricted shipment size.

The challenge

Logmarin proposed a logistical arrangement actually reducing the amount of dredging and civil works foreseen by the original construction plan of the terminal, but still eliminating the limitations to the size of the approaching vessels. The solution consisted of planning an off-shore terminal which could discharge ships up to the largest Capesize (freight optimization) and transport the coal to the receiving terminal by duly designed self-propelled barges.

The Marubeni Consortium, in 2012, was finally selected as preferred party for negotiation by the Vietnamese Authorities on the basis of the logistics solution devised by Logmarin Advisors.

Service rendered

Design and estimation of the most cost-effective transport and logistics solution for the supply of imported coal to the coal-fired (two units × 600MW) power station. Services included: site visit, identification of the most suitable logistics solutions to evaluate, freight analysis, technical and economic feasibility study, preliminary design of the receiving shore facilities, access channel, dredging assessment, traffic and commodities flow analysis, operational and risk analysis, conceptual design, preliminary economic evaluation (Capex, Opex, ocean and coastal freights).

In a second phase Logmarin assisted the Consortium in summarizing, standardizing and analysing the proposals received from potential service providers and drew up a preliminary ranking/short list based on the special knowledge and experience possessed by Logmarin in the dry bulk shipping, logistics and transhipment fields and provided the Consortium with all the necessary input information to generate a final ranking based on its project financing model.

Neuero: keeping busy in South East Asia 

Neuero Industrietechnik has just completed the refurbishment of two Neuero 1,000tph (tonnes per hour) pneumatic ship unloaders at the flour mill of PT Indofoods in Jakarta Indonesia. This facility is located at the port of Tanjung Priok. Also in Indonesia, Neuero has previously supplied three (total order of five) small unloaders for the company PT Smart. PT Smart is a major processor of palm oil. These unloaders are used to unload the palm kernel from barges prior to processing. The unloaders are used at three separate processing plants.

In the Philippines, Neuero is delivering a 600tph (metric) combination ship unloader/barge loader to the project Golden Bay Grains Terminal located in Mabini Philippines. The company is also involved in two other ship unloader projects in the Philippines.