29th. Gujarat Maritime Board. Enriching Maritime Legacy. Gujarat Ports. Administrative Report Gujarat Maritime Board

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1 Jakhau Major Port Private Ports GMB Ports Mandvi Okha Kacchigadh Porbandar Kandla Mundra Positra Veraval Bedi Sikka Gujarat Maritime Board Gujarat Ports Navlakhi Jafrabad Bhavnagar Chhara Mithivirdi Sector 10-A, Gandhinagar , Gujarat, India. Phone : /47/48/51 Fax : /04 gmbad1@sancharnet.in Website : Pipavav Dahej Magdalla Hazira Vansi Borsi Nargol th Gujarat Maritime Board 29 Administrative Report Gujarat Maritime Board Enriching Maritime Legacy 29th Administrative Report

2 Table of contents Foreword Vision, Mission and Objectives Chairman s Message VC&CEO s Message GMB Ports Port Classification Gujarat Port Sector Structure Board Members and Board Meetings List of Board Members in List of Board Meetings in Human Resource GMB Manpower Strength Organisation Structure At a Glance: Gujarat Maritime Performance Shipbuilding Alang Ship Recycling Yard Gujarat- "The Port State" of India Strategic Advantages of Gujarat Evolution of GMB to Present Scenario (1982 to 2011) GMB Assets and Properties Port Planning and Development GMB Ports Other Jetties and Ports Private Ports and Terminals Captive and Private Jetties Vibrant Gujarat 2011: The Global Business Hub Performance of Different Departments Mechanical Engineering Dredging Operations Hydrographic Survey Environment-friendly, Safe & Secured Ports Environment Management

3 FOREWORD 12.2 Safe Ports Safe Coastal Areas Vessel Management - Vessel Traffic & Port Management System (VTPMS) Major initiatives during the year Formation of Project Monitoring Cell Formation of Strategic Committee Performance Based Budgeting Asset Management Online Accounting Renewal of Lease of Plots Launch of GMB e-musing Integrated Port Management System E-Governance Welfare Activities Stakeholder Conferences Awards and Recognitions GMB in the Media Annual Accounts Income and Expenditure Statement Balance Sheet Traffic Performance Gujarat Maritime Board (GMB) is pleased to present the 29th Administrative Report for the financial year to the Government as required under the provision of Section 92 of Gujarat Maritime Board Act, Gujarat is a prime maritime state blessed with natural coastline of about 1600 km, which constitutes about one-third of the coastline of the country. The state of Gujarat has one major port, Kandla, which is under the purview of Central Government. The remaining 41 ports are non-major ports, which are controlled and administered by the Gujarat Maritime Board (GMB). GMB derives its powers from the Indian Ports Act 1908 and Gujarat Maritime Board Act The conservancy right is vested with the Vice Chairman & Chief Executive Officer, who appoints conservator of ports under the jurisdiction of Gujarat Maritime Board. These ports are categorized into 10 groups and each of these groups is headed by the respective port officer. Each port is governed and administered by GMB. The ports of Gujarat handle large volumes of sea-borne traffic. Gujarat has the advantage of being the maritime gateway for the vast hinterland covering northern states and central India. There has been a steady rise in the traffic ever since the formation of the Gujarat Maritime Board. Majority of traffic is handled through 12 ports and remaining 29 ports are predominantly used for fisheries and sailing vessel traffic of small volumes. This Annual Report illustrates the developments which have taken place in the port sector in Gujarat and highlights specific activities undertaken by Gujarat Maritime Board to promote its development. It also highlights the performance of various departments, trends in port performance and financial parameters, developments in private ports & jetties and new initiatives which were taken up for the first time, for improving operational efficiency. 1

4 VISION To capture the strategic advantage of India s longest coastline and develop the coastal areas to make them the growth engines of the State

5 MISSION To sustain, facilitate and excel in developing multi-purpose port and logistic facilities, and shipping related industry via its competent services and timely infrastructure development

6 OBJECTIVES n n n n n n n n n To maximize coastal benefits and strategic advantages of Gujarat Ports To capture maximum traffic at Gujarat Ports and enhance container traffic at GMB Ports To further strengthen its role in liquid and bulk cargo To develop Gujarat as a Shipbuilding/Repair Hub To promote various other port led development such as Ro-Ro Ferry Terminal services, Jetty Services, Marine Tourism, Logistic Parks To provide services, property and infrastructure support that will promote private investment To ensure and protect ecological balance and safeguard social and environmental issues To bring innovation and implement latest technology at all ports To ensure safety and security at all levels of operation

7 Chairman's Message Due to policy initiatives with visionary outlook, Gujarat has been the leader in development of port infrastructure and port led industry. With renewed focus on revision of policy frameworks and PPP models, GMB will continue to cross new frontiers in port development The year has been an eventful and challenging one for the world at large. However, despite the shocks in the world economy, for the Gujarat Maritime Board, this has been another successful and enterprising year. GMB has sought to forge ahead in its endeavour to make Gujarat's ports, the country's preferred ports of call. Traffic at GMB ports continued its steady rise, and at 231 MMT of cargo, and 8325 ships visiting, represented another record in traffic seen at Gujarat's non-major ports. Cargo handled by Gujarat non-major ports has grown by 12% over , and they now account for 26% of cargo handled by all Indian ports, and 72% of traffic handled by all nonmajor ports of India. It also gives me great pleasure to inform you that in August 2010, the Gujarat Maritime Board operationalized the country's most advanced Vessel Traffic Management System (VTMS), in the Gulf of Khambat. The state of the art system will go a long way in making ship navigation in the Gulf safe and streamlined. In June 2010, GMB organized a national seminar on port-led development. The conference was organized with the objective of hearing industry experts, discuss and debate on diverse subjects for the integrated development and enhancement of maritime sector in Gujarat and for exploring the possibilities of port led development in the state. The wealth of information shared will hold us in good stead as we seek to develop Gujarat's long coastline. Also this year, Gujarat's rising reputation as a model for development and a magnet for investment received a further boost with the rousing success of the 5th edition of the biennial Vibrant Gujarat Global Investor's Summit, held in January 2011 at Gandhinagar. GMB again was at the forefront, attracting investments worth nearly Rs. 103,000 crore with 97 MoUs signed. The projects are expected to create a further 660 MMTPA of capacity in the port sector and 1.42 million DWT in ship-building and ship-repair projects. GMB's unique pavilion at the exhibition- a life sized model ship, with panels highlighting Gujarat's maritime history, as well GMB's achievements was inaugurated by the Hon'ble Chief Minister, and was highly appreciated by one and all. The seminar Gujarat Ports: A catalyst to India's development organized at VGGIS 2011, highlighted Gujarat's contribution to the development of its hinterland, and was very well received, with more than 1000 delegates and distinguished speakers attending. Not content with resting on our laurels, GMB continues to strive to identify new areas for growth. GMB intends to aggressively pursue opportunities in the growing ship-building/ repair industry. For this purpose the Gujarat Government and GMB had come out with the Shipbuilding Policy, 2010, which identified sites for integrated Marine Shipbuilding Parks. Currently GMB is developing two MSPs: on the north bank of river Narmada at Dahej and along the Bhavnagar creek at Old Bhavnagar. Work on starting a Ro-Ro passenger ferry is also on in full earnest. Going forward, GMB has initiated efforts to revise its policy framework and rework the PPP models to give another push to private sector investments and realize the capacity plans that we made for the next decade. As we bring another successful year to a close, I would once again like to thank all stakeholders and investors for their continued commitment and support. I expect that next year will be another year of growth and achievements. B. K. Sinha, IAS Additional Chief Secretary Ports & Transport Department Government of Gujarat 9

8 VC & CEO's Message The 29th Administrative Report of GMB for the Year evidently highlights that excellence is not a destination but a continuous journey that never ends. Cargo traffic handled by non-major ports at Gujarat in Year has witnessed the growth of 12.34%, reaching 231 million tons v/s meagre growth of 1.6% at major ports of India. Special & concerted efforts on GMB owned ports gave fruitful results viz. revival of Bhavnagar Port & Mandvi Port & increased efficiency of other GMB owned ports thereby registering turnaround growth of 13% in the cargo traffic during this year. Revenue of Government of Gujarat & GMB increased from ` 344 crore to ` 360 crore and ` 180 crore to ` 190 crore respectively during FY Extensive focus on capacity creation to fuel the economic growth of Gujarat & North-West Hinterland resulted into highest ever port capacity addition in Gujarat i.e. 40 MMTPA in a single year, reaching total capacity to 284 MMPTA. GMB has signed agreements for port projects worth of ` 7050 crore viz. BGCA & ACA with M/s AHPPL & M/s HPPL for BGCT at Hazira; Captive Jetty Agreements with M/s BORL for SPM at Sikka; M/s RPTL for 3 SPMs at Sikka; M/s EBTL for Deep Water Jetty at Hazira. In addition to this, GMB has granted DPR approval 8s construction permission to various port projects under PPP mode. Seven Shipyard projects worth ` 2176 crore were accorded final approval/in-principle approval/dpr approval. Various steps for increasing administrative efficiency were undertaken like establishment of Strategic Management Cell & Project Monitoring Cell; implementation of Online Accounting System, Online Budget System & Asset Management System; undertaking steps to frame Recruitment Rules & filling of vacant posts etc. Under Asset Management, a special drive for disposal of non-useable assets has been undertaken resulting into disposal of 82 Civil Assets & 44 Mechanic Assets. During VGGIS-2011, GMB signed highest ever 97 MoUs amounting to ` 1,02,889 crore for development of port, shipyards, and other port led developments. GMB showed an excellent form of creativity in the Exhibition with the theme of "A Ship Prototype with an Elevated Desk" which has been visited by more than 2 lacs people during VGGIS GMB is honored with four awards in this year viz. "Indian Maritime Newsmaker of the Year" & "Special Jury Award" by Maritime Gateway of India; "Best Initiative taken by a state in Maritime Industry" by Chemtech Foundation; and "Port Authority/Maritime Board of the Year" by EXIM India & Fairplay Exposition Group. The Year ahead will see the GMB continuing its daily pursuit of excellence in every field as we strive to make the Gujarat the foremost Maritime Hub of the World. I would like to thank the Board of GMB for their valuable guidance & the GMB officers and staff for their concentrated efforts to enrich the maritime legacy of Gujarat. Alang Sosiya Ship Recycling Yard, the largest in the World, has registered an increase in the number of ships recycled from 348 to 357 with total 2.81 Million LDT. To ensure ship recycling in Safe & Environmentally Sound Manner, GMB has taken various initiatives like training of 14,919 workers at Safety Training & Labor Welfare Institute at Alang; amalgamation of smaller plots; completion of Comprehensive Studies for SPV & Upliftment of Environment Infrastructure at Alang by M/s IL&FS; and commencement of process for selection of consultant for DPR for Upgradation of Infrastructure for seeking Pankaj Kumar, IAS Vice Chairman & Chief Executive Officer Gujarat Maritime Board soft loan from Japan & Formation of SPV for Housing Facilities for workers at Alang etc. GMB has awarded the work of construction of Navy Jetty at Porbandar and signed an agreement with Indian Navy to strengthen the security along Saurashtra Coast. GMB has achieved significant progress towards the commencement of Ro Ro Ferry Service Project, the first of its kind in India, between Dahej & Gogha. To ensure safe maneuvering of ships in Gulf of Cambay, Vessel Traffic Management System (VTMS) in Gulf of Cambay has been made operational under PPP mode by GMB since 15th August 2010 & VTMS in Gulf of Kutchh in association with Directorate General of Lighthouses & Lightships & Kandla Port Trust has achieved significant progress towards its operation. GMB has formed the GMB Education Trust for setting up of a Polytechnic at Rajula under PPP Model & also appointed the consultant for Detailed Concept Plan for Mundra Port City

9 1. GMB Ports 1.1 Port Classification PORT GROUP ALL Fair Direct Lighterage Sailing Fishing Weather Weather Berthing Vessels 1 Mandvi Group ü ü ü ü Koteshwar ü ü ü Jakhau ü ü ü Mundra ü ü ü ü Navlakhi ü ü ü 2 Bedi Group ü ü ü ü Jodiya ü ü ü Pindhara Salaya ü ü ü Sikka ü ü ü ü 3 Okha Group ü ü ü ü ü Rupen ü ü ü Beyt 4 Porbandar Group ü ü ü ü ü 5 Veraval Group ü ü ü ü Mangrol ü ü Navabander ü ü ü Madhvad ü Kotada ü Mul-Dwarka ü ü 6 Pipavav Group ü ü ü Mahuva ü ü Jafrabad ü ü ü ü Rajpara ü ü 7 Bhavnagar Group ü ü ü ü Talaja ü Gogha ü 8 Bharuch Group ü Dehaj ü Bhagwa ü Khambhat 9 Magdalla Group ü ü ü Valsad ü ü Maroli ü Kolak ü Umargam ü Bilimora ü Onjal ü Vansi-Borsi ü Umar Sadi ü 1.2 Gujarat Port Sector Structure Government of Gujarat Gujarat Maritime Board Shipbuilding & Repairs (10) Ship Recycling (2) Ports Port Activities Private Ports (4) GMB Ports (11) Ro-Ro Coastal Shipping SPV Ports etc. Private Jetties (13) Fisheries Harbour (5) Captive Jetties (26) GMB Jetties (20) 12 13

10 2. Board Members and Board Meetings 2.1 List of Board Members in Name Designation Period 1 Shri B. K. Sinha, IAS Chairman to Additional Chief Secretary, Ports & Transport Department, Gandhinagar 2 Shri Pankaj Kumar, IAS Vice Chairman & to Vice Chairman & Chief Executive Officer, Chief Executive Officer Gujarat Maritime Board, Gandhinagar 3 Shri B. K. Sinha, IAS Member to Additional Chief Secretary, Ports & Transport Department, Gandhinagar 4 Shri C. L. Meena, IAS Member to Principal Secretary ( Exp.), Finance Department, Gandhinagar 5 Shri A.M. Solanki, IAS Member to Commissioner, Fisheries, Dr. Jivraj Mehta Bhavan, Old Sachivalay, Gandhinagar 6 Shri P.B. Patani, IAS Member to Commissioner, Fisheries, Dr. Jivraj Mehta Bhavan, Old Sachivalay, Gandhinagar 7 Shri A. K. Sharma, IAS Member to I/C Chief Executive Officer, Gujarat Infrastructure Development Board, Gandhinagar 8 Shri S. S. Rathore Invitee Member to Principal Secretary, Road & Building Department, Gandhinagar 9 Shri B.B. Swain, IAS Invitee Member to Industries Commissioner, Gandhinagar 10 Shri D. V. Acharya Invitee Member to Deputy Secretary (Ports), Ports & Transport Dept. Gandhinagar Name Designation Period 11 Commodore U. K. Vora Invitee Member to Naval Officer In-Charge, Porbandar. 12 Commandar P. Rajkumar Invitee Member to Naval Officer In-Charge, Porbandar. 13 Commodore Arvind Singh, MVC,NM Invitee Member to Naval Officer In-Charge, Porbandar. 14 Shri P. D. Vaghela, IAS Invitee Member to Chairman, Kandala Port Trust, Gandhidham (Kutch). 15 Shri Ravinder Goyal Special Invitee Member to Chief Transportation Planning Manager, Western Railway H.Q., Church Gate, Mumbai Shri KPS Raghuvanshi Special Invitee Member to Deputy Inspector General, Chief of Staff, Head Quarter, Coast Guard Region (North/West), Block 9, 7th Floor, Udyog Bhavan. Sector-11, Gandhinagar. 2.2 List of Board Meetings in Nos. of Board Meeting Date of Meeting Place /07/2010 Gandhinagar /12/2010 Gandhinagar /03/2011 Gandhinagar 14 15

11 3. Human Resource Office Name 3.1 GMB Manpower Strength Locations 1 Head Office Gandhinagar Superintending Engineer (C) Gandhinagar Superintending Engineer (C) H.Q. Gandhinagar Superintending Engineer(M) Gandhinagar Superintending Engineer (M) Dred. Cell Gandhinagar Superintending Engineer (C) Jamnagar Superintending Engineer (C) Porbandar Marine Engineer, Dredging Cell Jamnagar Port Office Bhavnagar Port Office Porbandar Port Office Navlakhi Port Office Surat Port Office Okha Port Office Jamnagar Port Office Veraval Port Office Mandvi Port Office Bharuch Port Office Alang Port Office Pipavav Port Office Jafrabad Executive Engineer (C) Engineering-2 Gandhinagar Executive Engineer (C) Bhavnagar Executive Engineer(C) Morbi Navlakhi Executive Engineer (C) Veraval Notified Area Office, Alang Bhavnagar Executive Engineer (C) Porbandar Executive Engineer (C), Rozi Jamnagar Executive Engineer (C) Surat Executive Engineer (M) Jamnagar Class I Class II Class III Class IV 3.1 GMB Manpower Strength Office Name Locations Class Class Class Class I II III IV 30 Executive Engineer (M) Bhavnagar Executive Engineer (M) Dredg Bhavnagar Dy.Executive Engineer (C) MSSD Bharuch Dy.Executive Engineer (C) FHSD Porbandar Training and Welfare Complex Bhavnagar Sanctioned post Filled post Vacant post Summary Class Sanctioned post Filled Vacant 1 Class-I Class-II Class-III Class-IV TOTAL Sanctioned Post Filled Post Vacant Post Class I Class III Class II Class IV Class I Class III Class II Class IV Class I Class III Class II Class IV 16 17

12 3.2 Organisation Structure Chairman Vice Chairman & CEO CGM OSD FC cum CAO Chief Engineer CNO (FGM Supdt. Eng. (M) Supdt. Eng. (D) Traffic Manager Exe. Eng. (Pvt. Cell I) Port Establishments Supdt. Eng. (Pvt. Cell II) PRO Marine Eng. Dy. Collector (Land Acquisition) Env. Eng. Sys. Mng. Dy. Secretary Dy. FC cum CAO Supdt. Eng. (C) NO (FGM) Exe. Eng. (M) Dy. Exe. Eng. (D) Traffic Officer Dy. Exe. Eng. (C) Port Officers Adm. Officer (Est.) A/c officer (Pay/Tre./Bud.) Exe. Eng. (C) Asst. PO Dy. Exe. Eng. (M) Research Officer Dy. Exe. Eng. (C) Asst. Port Officer Adm. Officer Perform (Cell) A/c officer (Comp.) Exe. Eng. (C) Dy. Exe. Eng. (C) Accounts Officer Welfare Officer A/c officer (Pen./Ins.) Dy. Exe. Eng. (C) CGM Chief General Manager Asst. Labour Officer A/c officer (GPF & Audit) Dy. Exe. Eng. (C) OSD FC CNO Officer on Special Duty Financial Controller Chief Nautical Officer PRO Public Relations Officer 18 19

13 4. At a Glance: Gujarat Maritime Performance Gujarat has shown a distinct growth model of business in the maritime sector, by policy reforms and harnessing the 1600 km coastline with a sea of opportunities. Since the formation of the Maritime Board, Gujarat's ports have seen a steady rise in traffic; increasing from 3.18 MMT in to 231 MMT in , making it the leading state in the country in terms of cargo handled. Gujarat's efforts in the maritime sector in particular, are considered to be a role-model for other states on how innovative policies and flawless execution can combine to achieve stunning results. Today Gujarat boasts of the highest number of operational ports and commercial cargo ports. With the introduction of the BOOT (Build, Own, Operate and Transfer) policy, Gujarat was the first state to invite private investment into the port sector. The scheme sought to leverage the state's limited resources, and with the joint involvement of the private and public sectors, Gujarat has rapidly expanded its maritime capabilities. The efforts have made Gujarat the most developed amongst the maritime states of India. With a number of non-major ports, whose volumes and profitability have steadily increased over the years, Gujarat ports continue to grow as the preferred ports of call. During the year , ports in the state together handled about 231 million tons of cargo, which accounted for 26% of the total cargo handled by all the ports of India. The cargo handled during the year has increased by 12% from that handled during the previous year. This traffic growth was also significant compared to growth rate of 1.6% achieved in this FY by the major ports administered by the Central Government. Major traffic growth was achieved by the ports at Mundra (old), Mundra (new), Bhavnagar, Sikka, Dahej by registering a growth of 55%, 28%, 23%, 8% and 14% respectively. The traffic share of top five ports were by the ports at Sikka, Mundra (GAPL), Magdalla, Dahej and Pipavav having a share of 50%, 22.5%, 8%, 6.2% and 3.4% respectively in the total traffic handled by Gujarat non-major ports. Major change in the traffic was observed at Mandvi, where traffic of 2.15 lakh tonnes was handled, compared to nil traffic in previous six years. Container traffic has also shown tremendous growth at Mundra and Pipavav with total tonnage handled increasing by 38%. Alang showed a marginal decline in total steel recovered from recycling operations; it reached 2.8m LDT in the current year, compared 2.95m LDT in the last year. Further, Gujarat's non-major ports achieved growth of 16% in total port capacity, reaching 284 MMT, compared to 244 MMT last year. This capacity addition was achieved due to expansion of Magdalla Jetty by Essar (15 MMTPA), Coal terminal at Mundra (15 MMTPA), fifth berth by Reliance at Sikka (5 MMTPA), solid cargo terminal at Dahej (3 MMTPA), block wharf at Okha (1MMTPA) and revival of KRIBHCO Jetty (1 MMTPA). Performance of Gujarat's Non-major (GMB) Ports Ports operated by GoI GMB Ports Other State operated ports National Cargo Share of GMB ports 71.6% 73.4% 73.6% 71.2% 72.2% with respect to other State owned ports of National Share 20% 20% 21% 24% 26% Performance of GMB ports Source: Parameters Growth Traffic (MMT) % Export Traffic (MMT) % Import Traffic (MMT) % of Ships % of Sailing Vessels % 5. Shipbuilding Gujarat is emerging as an important shipbuilding destination with 60% share in the country and many projects in the pipeline. The Government of Gujarat is expecting to reap maximum benefit from the emerging shipbuilding industry and has announced the Shipbuilding policy in 2010, to encourage shipbuilding as well as allied industries. The policy has been enacted with an objective to maintain market share of more than 60% of the national target in shipbuilding/repair market. For that purpose, the Government has identified five locations for development of clusters of shipyards as Marine Shipbuilding Parks (MSP). The Board will acquire Government land and allot to the company on lease basis for the license period. In addition, GMB will facilitate and assist in the approval process. Upcoming Shipyards GMB is promoting shipbuilding through the cluster development approach in the form of Marine Shipbuilding Parks (MSP). GMB is developing two MSPs: on the North bank of River Narmada at Dahej and along the Bhavnagar creek at Old Port Bhavnagar. The Government approved the project with estimated cost of Rs. 675 crore. There are numerous shipbuilding projects in the pipeline at these MSPs and other locations. Status of Shipbuilding Projects Developer / Location Projects Approved by Government / GMB 1 Bombay Marine Engineering Works Pvt. Ltd., Mumbai at Koliyad village in Bharuch district 78 2 Dolphin Offshore Enterprise (I) Ltd., Mumbai at Jafrabad Modest Infrastructure Ltd., at Nava Ratanpara in Bhavnagar Paras Ship Breakers Ltd., at Old Port Bhavnagar 150 Projects under Consideration 5 President Shipyard Ltd., at Old Port Bhavnagar 47 6 Sealand Shipping and Export Pvt Ltd., at Old Port Bhavnagar 15 Projects under Scrutiny Investment (Rs. in crore) 7 G.R. Engineering Pvt. Ltd., within Dahej MSP Gujarat Integrated Maritime Complex Pvt. Ltd., at Nana Layja Ratanpara Dockyard Pvt. Ltd., at Ratanpara Efforts India Ltd., at Kaswa Gujarat Shipbuilding Co. Pvt. Ltd., at Dholai Dempo Shipyard Ltd., at Kaladara Walchandnagar Industries Ltd., at Dahej 320 During the Vibrant Gujarat Summit 2011, total 32 MoUs were signed with committed investment of Rs. 28,595 crore for shipbuilding and ship repair activities at various locations along Gujarat coast

14 Profile of Some Existing Shipyards 1. Pipavav Shipyard: This year Pipavav Shipyard Ltd. (PSL) announced that they will be officially changing their name to Pipavav Defence and Offshore Engineering Company Ltd. This follows the company s decision to target the emerging defence sector in India. PSL signed a number of MoUs in with renowned global defence equipment companies such as Rosoboronexport (Russia), SAAB dynamics (Sweden) and Northrop Grumman (USA). The tie-ups will allow PSL to access cutting edge technology and help position it as an integrated defence company capable of indigenously meeting India s growing defence requirements. It now has 3 focus sectors: Naval/ Defence Offshore Civil Shipbuilding, Repair and Refit This year PSL has received an order amounting to Rs. 2,975 crores for design and construction of five warships for the Indian Navy. Currently Panamax bulk carriers for various international shipping companies and OSV s (offshore supply vessels) for ONGC are also under construction at the shipyard. For , PSL earned total income of Rs. 923 crore and EBITDA of Rs. 215 crore 2. L&T Shipyard: Currently six heavy lift/ RoRo vessels are under construction at L&T s shipyard in Hazira. Four vessels are scheduled for delivery in and the balance in the following year. The company won a major contract this year to construct 36 high speed interceptor boats worth Rs 970 crores for the Indian Coast Guard. 3. ABG Shipyard: In ABG unveiled its state of the art shipyard facility at Jageshwar (Dahej). The new shipyard with modern facilities is capable of building various vessels including Panamax tonnage and Offshore Drilling Rigs at its dry dock facility (Phase I - 270m x 54m). Further capacity addition is envisioned in phase II (275m x 40 m) and phase III (450m x 72m). The facility will have capability to build vessels up to 120,000 DWT. In addition to the new yard at Dahej, ABG also operates a shipyard at Surat. The company delivered 16 vessels in : the highest by any shipyard in India. During the year ABG received orders for construction of oil rigs and vessels from M/s Halul Offshore Services Company ($65m) and from M/s. Marnavi Spa ($17.5m). Net sales for ABG Shipyards for the year were Rs crores in and net profit was Rs crores. 4. Modest Infrastructure Ltd.: MIL is keen to expand its capabilities and for this purpose they acquired land of 60 acres about 23 km from their present yard in Ratanpur. Construction of the yard is expected to be started in second half of The new project envisages construction of vessels up to 50,000 DWT. The new facility will have a wet basin, end launching slipway, side launching pad and dry dock for new construction and repairs. This year they delivered a self loading cement carrier of 2800 DWT capacity to M/s Ambuja Cements and another 4,000 DWT is in the process of being delivered before mid For the Indian Navy three vessels of 500 tons each will also be delivered in Orders are also on hand for a DP2 Geotech Survey Vessel as well as four others for foreign ship owners. 5. Shoft Shipyard: Build capacity ranges from 9-12 vessels of up to 135m length. Currently the following vessels are under construction at the yard: a. DP2 ABS class barge b. 63m OSV c. 2 nos T DWT carriers d. 2 nos T DWT carriers 22 23

15 6. Alang Ship Recycling Yard 7. Gujarat- "The Port State" of India Alang, the largest ship recycling yard in Asia, is spread over approximately 10 km long sea front on the western side of the Gulf of Khambhat. During the year , 357 ships were dismantled at Alang with lakh tonnes of LDT. Compared to the previous year, there was an increase of 2.59% in the number of ships recycled, while LDT decreased by 4.32%. Overall, 5509 Ships of lakh tonnes LDT have been beached at Alang yard during the period from 1982 to Safety Training 'Emphasizing Safety': GMB had set up the Safety Training and Labour Welfare Institute at Alang in 2003 to train workers about safety measures. During FY , training was conducted by experts covering, gas cutters, crane operators, safety supervisors etc. The institute has trained 14,914 workers in FY and a total of 70,906 workers so far. Environment Manager 'Greener Recycling': For the upgradation of existing environment management facilities at Alang and to fulfil future requirements, GMB has given contract to M/s. GEPIL for development of three new landfill sites, installation of incinerator and effluent treatment plant for treatment of bilge water and other contaminated liquids, as well as for management of hazardous and nonhazardous waste. Improvement in Training Facilities: As a part of safety and welfare activities, the work of interior renovations, providing furniture, sound and acoustic treatment, etc. in the auditorium within Training cum Welfare Complex were taken up at an estimated cost of Rs. 1 crore. Labour Housing 'Basic Amenities for Workers': Ship Recycling Association at Alang with the support of GMB is planning to establish a housing complex for the workers to provide suitable accommodation with proper infrastructure facilities. GMB has already acquired land of about 242,813 sq.m. at Alang and Sosiya for this purpose. Improvement of Road 'Improving Access': For better vehicular movement within the yard, the service road from Manari Bridge to Sosiya approach is being widened to four lanes at a cost of Rs. 59 lakhs. Gujarat has rapidly expanded its maritime capabilities to emerge as India s leading maritime state. Through visionary policies and careful development, Gujarat has leveraged its strategic location and the natural gifts that it has been endowed with. Today 41 non-major ports and 1 major port (Kandla) are operational in Gujarat - the highest number of ports in the country. 7.1 Strategic Advantages of Gujarat Strategic Location Location of Gujarat Ports Gujarat has the advantage of serving as the maritime gateway to the vast hinterland states of northern and central India. The calm waters of the Gulf of Kutch and Gulf of Cambay provide natural navigational safety and ease of access from India to the Middle East, Europe and Africa. The advantages of this strategic location have further been enhanced by the visionary and transparent policies of the Gujarat Government and GMB. Northen Hinterland Major Port Private Ports GMB Ports Jakhau Mandvi Okha Kacchigadh Porbandar Kandla Mundra Positra Veraval Gateway to West Bedi Sikka Navlakhi Jafrabad Bhavnagar Chhara Mithivirdi Pipavav Dahej Magdalla Hazira Vansi Borsi Nargol Europe Middle East Africa 24 25

16 Port Connectivity Gujarat has an extensive road network of 74,112 km and boasts of the largest percentage of paved roads in the country. The railways have always provided a crucial link to the various growth centres / economic hubs including ports. The state has extensive rail network of 5,328 km. Railways have provided an efficient and safe mode of cargo transportation and over the past few years have attracted cargo that traditionally moved by road. These rail and road linkages provide good connectivity to the ports of Gujarat. To further boost port connectivity and to provide direct broad gauge rail linkage, various rail connectivity projects are being implemented at many ports of Gujarat such as at Pipavav, Dahej and in the Kutch region between Palanpur and Gandhidham, on public private partnership basis. The ports of Mundra and Pipavav have already completed the broad gauge network on PPP basis. Apart from the road and rail network, Gujarat is well connected to the crude and gas pipeline network of the country, providing its ports an advantage over others. The port of Hazira is directly connected to the largest pipeline network of the country, Hazira-Bijapur-Jagdishpur, and the ports of Dahej and Mundra are well connected to crude and LPG pipelines and refineries. Large Industrial Base Gujarat is home to large industrial enterprises of the country: Reliance Industries Ltd., Adani Group, Essar Group, Tata Motors and various others. About 60 existing special economic zones (SEZ) and 200 industrial estates in the state offer immense opportunities across various sectors. About 38% of the planned Delhi-Mumbai Industrial Corridor (DMIC) is falling under the state and the influence area is planned to be developed as a 'Global Manufacturing and Trading Hub'. There are 12 integrated special investment regions planned by the Government in the state, out of which nine are along the coast and one Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) is planned at Dahej. These planned industrial regions will create additional opportunities for the ports of Gujarat in the future. Progressive and Liberal Policy Regime The progressive state Government was the first in the country to establish a maritime board in The Gujarat Maritime Board has shown vision in converting non-major ports into some of the biggest ports in the country. It has broken new grounds with different forms of privatisation and policy initiatives to attract the biggest players across the world. GMB is proud that it announced the first port policy of the country in 1995, and identified 10 locations for Greenfield port development along Gujarat s coastline. The BOOT Policy in 1997 allowed public private partnership in the port sector on the Built-Own-Operate-Transfer (BOOT) basis - the first of its kind in the country. As a result of this, Pipavav became the first port to bring foreign equity into the port sector. In the year 2010 GMB announced the shipbuilding policy to expand its share of shipbuilding in the country, by promoting cluster development of Marine Shipbuilding Parks (MSPs). The ports of Gujarat have an edge over the other ports in the country, in terms of their location and infrastructure as well as due to its visionary and progressive government. These advantages, and planned development have led to Gujarat possessing the highest number of operational, commercial cargo ports; thus, truly making it the port state of the country. 26 Pipeline Network 7.2 Evolution of GMB to Present Scenario (1982 to 2011) Inception Period ( ) The Gujarat Maritime Board (GMB) was set up on 4th April 1982 under the Gujarat Maritime Board Act, 1981, as the first autonomous State Board in order to develop, administer, operate and regulate the port sector of Gujarat. GMB manages the non-major ports in the state of Gujarat, excluding Kandla port, which is a Major Port Trust under the Union Government. GMB established the largest ship recycling yard at Alang in the year 1983 to safely dismantle ships. Growth Period ( ) Growth period of GMB is marked with reforms in the port sector, beginning with the announcement of the first port policy in December The policy advocates integrated and balanced port-led development along the Gujarat coast. In the policy, 10 Greenfield port sites were identified for development of deep-draft ports of international standards with private investment. This was followed by defining the investor-friendly build, own, operate and transfer (BOOT) policy by the state government in July Subsequently, to provide legal frame work for PPP in infrastructure development including port sector, Gujarat Infrastructure Development Act was announced in 1999 by the state government. These policy reform steps resulted in the establishment of the first private port in the country at Pipavav in 1998 followed by Mundra; the first LNG terminal at Dahej in 2001, and the first chemical terminal at Hazira in The growth continued with the commencement of the first double-stack container train at Pipavav in 2003 and Mundra in These efforts fructified with GMB ports handling traffic of more than 97 million tonnes by the end of 2005, with traffic growing at a CAGR of 16.74% during the period. With this, GMB occupied a noticeable position in the country by contributing about 19% share of the total port traffic of the country and 71% share of the traffic handled by non-major ports of the country. Maturity Period (2005 till date) The period after 2005 can be entitled as the maturity period. During this period, the port traffic of GMB ports crossed 200 MT and grew at a CAGR of 11.77%. During the period, GMB focused on holistic port development and conceptualized developing port-cities along the ports of Mundra and Pipavav. The Government of Gujarat also announced the Shipbuilding policy in 2010, the first of its kind in the country; to make a mark in the global shipbuilding industry. The policy promotes a cluster development strategy with the development of marine shipbuilding parks (MSP) at various locations along the coast. Two MSPs at Dahej and Bhavnagar are being developed by GMB to achieve greater economies of scale and inclusive development. The period also witnessed the achievements of GMB in technological upgradation of its ports, with the commencement of Vessel Traffic and Port Management System (VTPMS) in the Gulf of Khambhat and steps towards an integrated port management system (IPMS). GMB is also developing the Ro-Ro ferry service for passenger and cargo movement in the Gulf of Khambhat between Ghogha and Dahej. Year Major Milestones 1982 Formation of Gujarat Maritime Board 1987 Captive Jetty (Model Terms & Conditions) 1995 Formation of Port Policy 1997 Formulation of BOOT Policy 1998 Pipavav became the first Private Port 1999 Formation of GID Law 2008 Captive Jetty Expansion 2010 Shipbuilding Policy 27

17 8. GMB Assets and Properties To ensure smooth functioning GMB maintains a large number of assets at various ports under its regulation. These assets include: 1. Civil Assets such as godowns, wharfs, jetties, buildings, navigation equipment etc. 2. Mechanical Assets such as dredgers, barges, launches, tugs, cranes etc. Over the course of the financial year, gross total assets held by GMB swelled to Rs. 491 crore (146 cr Mechanical Assets cr Civil Assets) from Rs. 486 cr (148 cr cr respectively) the year before. After deducting accumulated depreciation, net assets at the end of stood at Rs. 309 crore. Rs. 9.8 crore worth of physical assets were created during the year, with Rs. 8 crore out of these being civil assets. Important among these were the creation of a wharf near Tapi (Rs cr) and road-work for Bedi Port (Rs cr) on the civil works side; and purchase of disaster management equipment (Rs. 0.9 cr) on the mechanical assets side. At the end of , the maximum GMB assets (net assets) were held at Porbandar, worth Rs. 92 crore (70 cr civil + 22 cr mechanical). Porbandar was followed by Jamnagar Group of Ports at Rs. 46 crore (36 cr civil + 9 cr mechanical) & Alang at Rs. 44 crore (40 cr civil + 4 cr mechanical). Assets held by GMB Gandhinagar Bhavnagar Bharuch Alang Veraval Surat Porbandar Okha Navlakhi Mandvi Jamnagar Jafrabad Assets in Rs. Crores Some of the major assets held at various ports are presented in the following pages. Mechanical Civil Major Assets at Port Locations Port Navigational Aids Berth/Jetty/Wharf Storage Dry Dock Others Navlakhi a. Pilot station: Tuna Buoy a. Jetty: a. Covered Godown: 7 nos. 1 no. (30m x 15m) a. Weigh bridge: 3 nos. (17.5 nm. from Navlakhi m x 25.25m (6098 sq. m.) (100 MT capacity) b. Tug: 1 no. b. VTPMS c. Launch: 1 no. c. Cranes: 1 no. d. Barge: Private barges d. Dredger- 1 no. (10,000-15,000 MT) (GD, 60 cum/hr) Veraval a. Light pole: Veraval a. Finger Jetty: 5 nos. a. Covered Godown: 1 no. (44m x 53m) a. Dredgers: 2 no. (CSD, 54 b. Light House and Bhidia (100m) 45 nos. (16180 sq.m) cum/hr; GD, 60 cum/hr) c. Beacon b. Wharf: 2 nos. of Fish b. Cranes: 1 nos. (16 MT each). d. Launches- 1 no. Landing Wharf A/B Wharf (111.55m x 9.14m) Boat Wharf (149.35m x 28.9m) Okha a. 2 buoys about 360 m from a. Jetty: a. 2 Transit sheds 1no. a. Cranes: 1 no. (16 MT shore in channel Sayaji Pier b. Covered Godown- (45.72m x 16.76m) capacity). b. Tugs: 3 nos. (180m x 20m) 17 nos. (24040 sq. m.) b. Dredger- 1 no. c. Launch: 1 no. DCB Pier (146m x 14m) (CSD, 300 cum/hr) d. Barges: 2 nos. b. Wharf: New Light Wharf (100m) Porbandar a. Launches: 1 nos. a. Jetty: 2 nos. a. Transit Shed a. Cranes: 1 no. (16 MT) b. Tugs: 5 nos. DWB (237m x 25m) 152.5m x 18m at jetty b. Dredger: 3 nos.- Finger Jetty 26.2m x 10m at CSD, 54 cum/hr (101m x 60m) old port CSD, 190 cum/hr b. Wharf: 235 m b. Covered Godown CSD, 300 cum/hr 34 nos. (24173 sq.m) Jamnagar a. Light House: Piroton, with a. Jetty: 400 m RCC a. Transit Shed: 1no. (1290 sq.m) a. Cranes: 2 nos. Racon Kalvan Light House jetty at Rozi Pier b. Covered Godown: b. Weigh bridge: 2 nos. with b. Tugs: 4 nos. b. Wharf: 6 nos. (6455 sq.m at 40 MT capacity c. Launch: 1 nos. 2250m at Old Bedi port old port) c. Dredger: 1 no. (Backhoe, d. Barges: 2 no. 366m x 100m at 28 nos. (15120 sq.m) 100 cum/hr). new port at new port 1 nos. (930 sq.m) at old port 1 no. (4870 sq.m) at new port

18 9. Port Planning and Development Major Assets at Port Locations Port Navigational Aids Berth/Jetty/Wharf Storage Dry Dock Others Bhavnagar a. Tugs: 2 nos. a. Jetty: RCC Jetty a. Covered Godowns: 1 no. a. 75 KVA DG Set for b. Barges: 3 nos. (270m x 12.8m) 266 nos. (85494 sq. m.) power supply c. Launches- 4 nos. b. Dredgers- 5 nos. CSD, 300 cum/hr) Backhoe, 100 cum/hr) CSD, 300 cum/hr) CSD, 300 cum/hr) CSD, 312 cum/hr) c. Cranes: 1 no. Jafrabad a. 3 Navigation Towers a. Jetty: 2 nos. a. Covered Godown: 7 nos. a. VTPMS b. Barges: 1 no. RCC Jetty (for Clinker): (1310 sq.m) b. Dredger- 1 no. 211 meter in length (GD, 60 cum/hr) RCC Jetty (for Salt): 45 meter in length b. Wharf: 450m c. Landing slopes: 3 nos. (30m) Bharuch a. Jetty: 104m x 10m a. Transit Shed: 4 nos. a. VTPMS (1690 sq.m) b. Covered Storage: 7 nos. (31300 sq.m) Magdalla a. Tugs:1 no. a. Jetty: 2 nos. Covered Godown: 1 no. a. Cranes: 1no. b. Launches- 3 nos m x 21m ( sq.m.) (16 MT capacity) c. Barges- 1 no. 143m x 11 m b. Weigh bridge: 1no. with 100 MT capacity c. VTPMS Mandvi a. Tugs: 1 no. a. Wharf: 245 m Wharf a. Transit Shed: 4 nos 1 no. (3270 sq.m) cum Wall 508 sq. m. b. Covered Godown: 4 nos sq.m) 9.1 GMB Ports During the year, GMB has undertaken various developmental and planning works related to enhancing cargo handling capacity, improving port operation efficiency, infrastructure development and others at the ports under its jurisdiction. Bhavnagar Port The work for a new bridge across Bhavnagar creek, to provide short bye-pass route to Bhavnagar-Ahmedabad coastal highway and road linkages to villages, is under progress. Besides this, a four lane approach road is planned within the marine shipbuilding park at an estimated cost of Rs. 18 crore. Navlakhi Port The work of shore protection was taken up along Sui and Versamedi creek at a cost of Rs crore. Development of coal yard, measuring sq.m., to provide storage facility is planned at the port. A salt jetty at Bagasara is proposed to be developed, to provide exclusive facilities for export of salt. Land acquisition and studies related to environment impact assessment were taken up during the year. Okha Port The block wharf at the port of Okha has been completed in the FY with annual cargo handling capacity of 1 MMT. Under special repair work, restoration of 174m long steel sheet piled wharf at the port was undertaken at a cost of Rs crore. With this, renovation work at the dry cargo berth was completed. Porbandar Port Construction of a new 200m long deep water Jetty was taken up at a cost of Rs. 47 crore with co-financing by the Indian Navy. Dahej Port The upgradation of existing 5km x 4m road connecting old Dahej port is planned with assistance under the ASIDE scheme. Administrative approval has been accorded by the state government. Soil investigation and structural design work has been completed. Plans and estimates have been prepared; technical sanction is under approval. Magdalla Port Magdalla port handled MMT of cargo during , out of which GMB Jetty handled 4.27 MMT. For efficient cargo handling operations, construction of jetty has been completed on the west side of existing GMB jetty up to NCCL jetty, and east of GMB jetty up to boundary of M/s. ABG Shipyard to get a continuous jetty length for uninterrupted port operations. Modernisation of Mangrol Fishery Harbour The phase I modernization work of the Mangrol fishery harbour has been completed as per the recommendations of FAO (United Nations) with investment of about Rs crore. Phase II currently under planning, will comprise development of boat parking yard, auction hall, drainage facility, wharf for small vessels and so forth. Development of Minor Fishing Harbour at Dholai (Navsari) Based on the approval of Government of India, and amount sanctioned for project of Rs crore in June 2004; GMB completed the work of RCC jetty construction, earthwork and revetment, along with building and internal road work at Dholai fishing harbour. As per the state government directions to execute the ongoing work from GMB fund, the work of water supply is in progress and tender for the work of hard surfacing is under bidding

19 9.2 Other Jetties and Ports Other Jetties and ports comprising private jetties, captive jetties and private ports under GMB have completed various development works and numerous others are under planning process Private Ports and Terminals Mundra Port & SEZ Limited West Basin Development Coal terminal at West Basin is designed for 60 million tonnes capacity, with three berths for import of coal for Ultra Mega Power Plant (UMPP). West basin commenced its commercial operations on 12 December, 2010 with the berthing of its first cargo vessel M.V. CSK Beilun with LOA of 289 metres and beam of 45 m. With the commissioning of the West Basin, Mundra Port is poised to become the world's largest coal import terminal. In addition, berth 4 is being constructed in West Basin. This berth is expected to be completed in second quarter of Mundra Port & SEZ Ltd. commenced SBM for import of crude and sub-marine pipeline up to shore at Mundra. Approximately Rs. 500 crore has been invested by the company during the FY Additional Berthing Facility As part of expansion of port capacity, four additional berths are being constructed in Mundra Port (Berth 9, 10, 11 & 12); two berths are being developed in South Basin (BCT1/2, BCT2/1) and one berth in West Port (Berth 4), total being seven berths. Mundra Port and Special Economic Zone Limited is continuously striving to increase its capacity by improving productivity and efficiency through the introduction of new facilities, mechanization and other cargo handling techniques. Other Facilities To create additional storage facility for liquid cargo, new vegetable oil tank farm has been constructed with a capacity of 80,000 KL. Construction of road over bridge (RoB) of 1.5 km length within the zone has been completed at a cost of Rs. 50 crore enabling seamless connectivity to the Port and SEZ development. This is the first private four-lane RoB within port area in India capable of withstanding a load of 100 MT, to smoothen and speed up cargo movement. Elaborate arterial road network has been completed for SEZ users. Execution of utility infrastructures like common effluent treatment plant (CETP), water desalination plant etc. have also been completed. Work for doubling of Mundra-Adipur rail line has also been undertaken. Electrification of rubber tyre gantry cranes (E-RTG) was made operational for cargo operations. This is one of the Green Initiatives by Adani Group which will lead to reduction in the use of natural resources and in environmental protection and conservation. A mini ship yard has been commissioned at the port using balloon technology, the first of its kind in the country. This has been designed and operationalised at Mundra primarily to cater to tugs, dredgers and offshore supply boats up to 100 m in length. Petronet LNG Ltd, Dahej The Company has set up South East Asia's first LNG Receiving and Regasification Terminal with a capacity of 5 MMTPA, at Dahej, Gujarat. The terminal has been operational since January, The capacity of the terminal was expanded to 10 MMTPA in June, The expansion involved construction of two additional LNG storage tanks and other vaporization facilities. The capacity utilization of Dahej Terminal is increasing continuously and the operational practices are at par with the highest international standards. The terminal is meeting around 20% of the total gas demand of the country. Second LNG Jetty at Dahej To meet the rising demand of LNG, the Company has also initiated the process of setting-up a second LNG jetty at Dahej. The second LNG jetty is required to mitigate associated risks of port operations of existing jetty, as well as to berth the 32 higher capacity Q-Max and Q-Flex LNG vessels. The construction work of the second LNG Berth (jetty) is under progress. Once completed, the new jetty will enhance the capacity of terminal to 12 MMTPA from its existing capacity of 10 MMTPA. Two EPC contracts for the construction of jetty were awarded in January, 2011, and the Jetty is scheduled for commissioning by end of September, Presently, the EPC contractors are carrying out basic engineering activities for construction of marine and top side works. For consumers not connected with gas pipeline, the company has initiated steps to market the LNG directly to consumers across the country through overland transportation using LNG trucks/ hubs. This direct marketing model is prevalent in several parts of the world and is an effective way of reaching out to far-flung consumers in urgent need of fuel supply. The concept makes use of the already existing road network as against setting up of complex pipeline network. Solid Cargo Port Terminal, Dahej Port Facilities M/s. Adani Petronet (Dahej) Port Pvt Ltd, SPV of Adani Group and Petronet LNG Ltd, have developed solid cargo terminals at Dahej with annual cargo handling capacity of 3 MMT with the investment of about Rs. 500 crores during the year Work is under progress to create additional port capacity of 8 MMT, and is planned to be completed by FY Two berths have been planned at the port for handling coal and other multipurpose cargo. North berth is operational with deep draft of 14m and dimensions 206m x 29m. The berth is mainly used for mechanized coal bulk handling and allows vessels upto 80,000 DWT. Construction of the south berth is under progress with draft of 12m and dimensions 221m x 30.6m. The berth once completed will be capable of handling break bulk, other bulk and project cargoes. Infrastructure & Technology The port is equipped with state-of-the-art technology to compete with the major world ports. With this, the port offers world-class, round the clock cargo operations. There are eight cranes to handle different types of cargo at the port and one import conveyer system within the port for faster evacuation of cargo. APPPL is presently developing its own dedicated 2.5 km private rail line connecting Dahej Railway Station to provide seamless connectivity. Rapid wagon loading system is also being installed at the port. Wagon rake loading rate will be 60 minutes (one wagon per minute) once completed. The silo system at the rail yard for loading rakes is connected with the port by a conveyor system. The port has 1,50,000 sq. m. of well demarcated open storage space for steel sheets, plate, coils, coal, coke, packages/project cargo, etc. Weigh-bridges for dry cargo also exist, with latest technology. 33

20 Port Equipments Equipments Description Capacity Import Conveyor Within Port 3.5 km 5000 TPH For Evacuation 13 km 4200 PHM Silo at Rail Yard TPH Stacker / Reclaimer 2 nos TPH / 2500 TPH Mobile Harbour Cranes 4 nos. SWL of 65 MT each Grabs 4 nos. 42 CBM Hazira Port Hazira Port Pvt Ltd (HPPL) in association with Adani Hazira Port Private Limited (AHPPL) entered into a joint venture under 34 35

21 10. Vibrant Gujarat 2011: The Global Business Hub Gujarat Maritime Board signed a total of 97 MoUs amounting to Rs. 102,889 crores during the Summit. Out Vibrant Gujarat is a biennial Global Investors' Summit organized by the Government of Gujarat. The summits held in 2003, 2005, 2007 and 2009 were huge successes. Encouraged by the proactive approach of the government and the multidimensional reforms in all sectors, the global investors perceive Gujarat as a place of immense opportunity and an unfolding growth story. The Government of Gujarat organized the fifth Vibrant Gujarat Summit The Global Investors' Hub on January The Summit was attended by 35,000 delegates, including 1,400 from abroad; belonging to 101 countries, accompanied by 350 expert speakers giving detailed information on all sectors. A total of 7,936 MoUs worth Rs trillion (about USD 462 billion) were signed in the two-day Summit. GMB actively participated for facilitation of private investment in the emerging opportunities of the port sector. GMB was involved in the mega exhibition through its own pavilion showcasing the Gujarat port sector. GMB's pavilion was inaugurated by Hon'ble Chief Minister, Shri. Narendrabhai Modi on 10th of January The eye-catching exhibit from GMB, showcased a prototype ship with an elevated deck, floating on water. The pavilion received rave reviews from the dignitaries and the general public alike. Various business promotional activities and B2B and B2G interactions were undertaken during the Summit. about 800 delegates. Shri Jay Narayan Vyas, Hon'ble Minister for Health & Family Welfare and Tourism, Government of Gujarat, was the chief guest at the function, and as part of the inaugural session delivered a special address highlighting the achievements and opportunities in the Gujarat Port Sector. Other renowned speakers, Mr. Enda Connellan, Advisor, Dublin Port Company, Mr. Gordon Rankine, Director, Beckett Rankine, UK, Mr. Sholomo Breiman, CEO, Israel Ports Company, Mr. Jerry Bridges, Executive Director, Virginia Port Authority, Mr. Sarvesh Sahi, Chairman & MD, SKS Logistics Ltd. and Mr. Rajeeva Sinha, Director, MPSEZ made presentations on various important themes. of these, 40 MoUs amounting to Rs. 67,298 crores were signed for port projects, 32 MoUs worth Rs. 28,595 crores were signed for the shipbuilding sector; and the remaining 25 MoUs amounting to Rs. 6,996 crores were signed in various other projects of mechanized sand handling and other promising areas. A port sector seminar on Gujarat Ports: A Catalyst to India's Development was organized by GMB to portray the role of Gujarat ports with respect to its hinterland development. The seminar was successfully attended by 36 37

22 11. Performance of Different Departments 11.1 Mechanical Engineering Mechanical section at GMB carried out the following works during ISPS code implemented at the ports of Porbandar, Okha and Bedi, for which expenditure of Rs. 290 lakhs has been incurred towards hiring of 3 nos. of boats for patrolling purpose. As per International Maritime Organization (IMO) guidelines and GoI suggestions, VTPMS was established in the Gulf of Khambhat by GMB on BOOT basis with private investment of Rs. 100 crores. The VTPMS was made operational in August It will monitor vessel movement in the Gulf of Khambhat, and will provide cargo details. To develop the tourism industry in Gujarat, construction of 33 passenger capacity hovercraft is under progress, for which expenditure of Rs. 126 lakhs was incurred during GMB, in partnership with GoG plans to establish a polytechnic in Rajula Taluka of Amreli district of Gujarat, for which trust registration procedure has been completed during Courses related to port development activities will soon be started. During Vibrant Gujarat Global Summit-2011, Mechanical Section has signed various MoUs worth more than Rs. 2,100 crores for bunkering facilities, mechanized handling system, steel floating dry dock, ship repair unit and marine salvage services along the Gujarat coast. During , total expenditure of Rs lakh was incurred under the capital budget allocation. Besides, under the special repair works, GMB has incurred expenditure of Rs lakhs. The activities included maintenance and special repair works for flotilla units, cranes, vehicles and other mechanical/electrical assets of GMB. Workshop and Dry-dock GMB ports are equipped with mechanical workshops for various repairs and maintenance works. Dry dock facility is also available for ship repairing at various GMB ports located at Bedi, Jamnagar, Navlakhi, Porbandar and Veraval. There is one lock-gate at Bhavnagar port, provided at the entrance of basin which was first of its kind in Asia when constructed in The lock-gate prevents excess silt from entering the basin and helps in impounding the water in the basin for uninterrupted cargo handling round the clock Dredging Operations GMB places prime importance on dredging and thus regularly undertakes maintenance, as well as capital dredging. There are 13 dredgers functioning under GMB at various ports. Out of the 14 dredgers that GMB owns, 8 are CSD while 5 are grab dredgers. GMB also owns 5 nos. of SPHB, 2 nos.shb and Launches, HDPE Pipes, Floaters, Pontoons, Hoses etc as ancillaries. Dredger Dredgers at GMB Type of Dredger Operational Location Capacity Annual Capacity (cum) 1. GD Bhavnagar-I Grab Navlakhi 60 48, UB Pavitra Cutter Section Veraval 54 50, WB Parth Cutter Section Porbandar 54 50, MD Design Cutter Section Bhavnagar , GD Shivangi Back-hoe Bhavnagar , Krishnamani Cutter Section Bhavnagar , Crawl Cat-300 Cutter Section Porbandar , Ratnamani Cutter Section Porbandar , UB Pavankumar Back-hoe Bedi , PG Dredger Grab Jafrabad 60 40,000 Under Auction Process 11. RCSD Sudarshan Cutter Section Bhavnagar SD Ukai Cutter Section Bhavnagar GD Bhavnagar-II Grab Veraval 60 48, MD Kopili CSD Okha 300 4,00,000 Dredging quantity & expenditure Port Quantity(in cum) Expenditure (in Rs.) 1. Bhavnagar Porbandar Bedi Veraval Navlakhi Mangrol In FY GMB carried out 1,147,727 cubic meters of dredging at an estimated expenditure of Rs lakh. Dredging has been carried out for GMB and Fisheries Ports as per local fishermen's association / fisheries department's needs and satisfaction. GMB has also initiated action to upgrade its dredging fleet and accordingly it has decided to procure 2 nos. of CSD, 2 nos. of SPHB and 1 no of Grab Dredger at an estimated cost of Rs. 55 crores

23 11.3 Hydrographic Survey Hydrographic survey is the science of measurement and description of features which affect maritime navigation, marine Name of port Requirement Authority 1 Porbandar Port Port officer Porbandar Survey Location 1. Deep water berth including turning circle. 2. Approach and Coast Guard Jetty area. 3. Approach channel including finger jetty area. 4. Inner harbour area. 5. Fishery harbour area. Purpose of Survey & Action Taken Purpose of Survey: 1. As per the action plan of Porbandar port, night navigation of this port will start soon. Hence channel survey & T.C. survey are required. 2. For proper manoeuvring and berthing of coast guard and navy vessels, survey is required. 3. Lighter cargo is handled at GMB s finger Jetty. In addition, our vessels ply at this area. Hence, channel survey is required. 4. As per the requirements of fishermen s association, the dredging of the inner harbour is needed and survey work is required. 5. Requirement of dredging at fishery harbour by fishermen s association. Action Taken: 1. Fresh survey carried out by G.M.B.I.S.P.S. speed boat. 2. Carried out payment based pre-dredging survey for Saurastra Cement Ltd., Ranavav 3. Deposited work for fisheries department Area in Sq.Km Last Survey Oct-10 Name of port Requirement Authority 2 Veraval Port Port officer Veraval Port 3 Mangrol Port Port officer Veraval Port 4 Okha Port Port officer Okha Port Survey Location 1. Commercial channel jetty mouth wharfs. 2. F.T.D. including all areas. 1. Approach channel including basin area. 1. Full harbour including the area between D.C.B. pier & passenger jetty. 2. For proposed container terminal area. Purpose of Survey & Action Taken Purpose of Survey: 1. For pre-dredging survey of commercial channel mouth & wharf area for traffic purpose. 2. As per the requirement of fishermen s association dredging in F.T.D. area. Purpose is to assess the dredging quantity & various port traffic activities. Action Taken: 1. Fresh survey carried out by GMB. Launch Kankai. 2. Deposited work for fisheries department Purpose of Survey:: 1. To assess the dredging quantity Action Taken: 1. Fresh survey was carried out by private boat provided by port officer. Purpose of Survey:: 1. For safe navigation of steamers & country crafts within the channel & at jetties. 2. For container ships it is proposed to construct a new jetty in the old channel between Samiyani and European guest house. Action Taken: 1. Fresh survey was carried out by private boat provided by port officer. Area in Sq.Km Last Survey Dec Dec Dec

24 Name of port Requirement Authority Survey Location Purpose of Survey & Action Taken Area in Sq.Km. Last Survey Name of port Requirement Authority Survey Location Purpose of Survey & Action Taken Area in Sq.Km. Last Survey 5 Bagasara (Morbi) Executive Engineer - project cell, Gandhinagar; Port Officer 6 Veraval Port Port officer Veraval Port 1. Approach channel and proposed jetty location area. 1. Commercial channel. Purpose of Survey:: 1. For port facilities to be developed for export. 2. To know the draft in creek & levels in tidal areas for execution purposes. Action Taken: 1. Fresh survey carried out by private boat provided by port officer. Purpose of Survey:: 1. Post-dredging survey of commercial channel for various port traffic activities Jan-11 to Feb Feb-11 9 Dholai (Navsari) Executive Engineer (M)D. cell. Bhavnagar 1. Approach /Inner channel 10 Magdalla Port Port officer 1. Navigational channel of Magdalla & Dumas. Purpose of Survey:: 1. To assess the dredging quantity. Action Taken: 1. Deposited work for fisheries dept. Fresh survey carried out by private boat provided by D.E.E.(M) Surat. Purpose of Survey:: 1. For safety of navigation. Action Taken: 1. Fresh survey carried out by GMB Launch Ratnakar. Chart is under preparation. 2.0 Mar Mar-11 Apr-11 7 Nava Bandar (Una) Junagadh Executive Engineer (M)D. cell. Jamnagar 1. Approach and inner channel area. Action Taken: 1. Fresh survey carried out launch Kankai. Purpose of Survey:: 1. To assess the dredging quantity. Action Taken: 1. Deposited work for fisheries dept. Fresh survey Carried Out By private boat provided by port officer Feb Narmada River Chief Engineer 1. Bhukhi creek to Bhadbhut. Purpose of Survey:: 1. Plan to extend Marine Ship-building park along the North bank of Narmada river from Bhukhi creek to Bhadbhut. Action Taken: 1. Survey planned for next year Rajpara (Amreli) Executive Engineer (M)D. cell. Bhavnagar 1. Approach channel Purpose of Survey:: 1. To assess the dredging quantity Feb-11 Action Taken: 1. Deposited work for fisheries dept. Fresh survey carried out by private boat provided by D.E.E.(c) Jafrabad

25 12. Environment-friendly, Safe & Secured Ports Currently, inter-linked disaster management control rooms, functioning round the clock, have been set up at the head office in Gandhinagar and at the following ports: As defined in the previous Administrative Report by the Chairman, GMB has strengthened the efforts for environmentfriendly, safe and secured port operations and vessel management. GMB will continue to improve in each of these parameters Environment Management Environment protection and sustainability are the priority concerns of GMB. GMB has a dedicated Environment Cell since 1998 for preservation, protection and conservation of the environment. In GMB undertook various activities for environment protection. Mangrove plantation at coastal land measuring 60 hectares at Dholai and Jakhau has been completed at an estimated cost of Rs. 11 lakhs. As a part of Ro-Ro ferry project, 30 ha. of mangrove plantation has been planned near Dahej-Gogha region. GMB is planning to get approval for Ro-Ro project under the Clean Development Mechanism (Carbon credit). Also planning is on for safe and environmentally sound dredging operations for GMB ports. GMB constructed a treatment storage and disposal facility (TSDF) in 2006 for environmentally safe and secure disposal of hazardous waste at Alang ship recycling yard. The landfill for disposal of municipal solid wastes (MSW) with composite liner system was the first of its kind in the country. GMB had commissioned Central Salt and Marine Chemical Research Institute (CSMCRI) to study various parameters of ambient environment at Alang in Since then GPCB is constantly monitoring the environmental parameters at Alang. For the upgradation of existing environment management facilities at Alang and to fulfill future requirements, GMB has given contract to M/s. GEPIL for development of three new landfill sites, installation of incinerator and effluent treatment plant for treatment of bilge water and other contaminated liquids, as well as for management of hazardous and nonhazardous waste. Besides this, upgradation of existing environmental infrastructure to comply with IMO convention for safe environmental ship recycling is being undertaken by GMB, with the help of Japanese technology and financial assistance. A comprehensive initiative entitled 'Green Alang Initiative' is being carried out by IITB, to develop safer, more efficient and environment friendly methods of ship recycling. Interim report has been submitted to the board. Optimization of shore protection along the North coast of River Narmada estuary is in progress, for the master planning of marine shipyard through hydrodynamic surveys. GMB has prepared an environment management plan (EMP) for the port of Porbandar. Gujarat Pollution Control Board (GPCB) has given consolidated consent and authorization (CC&A) for five years. In order to protect the coastal and marine environment within GMB's port limits, GMB entered into an MoU with National Institute of Oceanography, Goa for undertaking oil spill risk assessment and preparation of local oil spill contingency plan for each port of GMB. The draft final report prepared by NIO has been submitted to the coast guard for approval. In the meantime local oil spill contingency plan is being outsourced to an external agency for two years Safe Ports Disaster Management Plan GMB has a disaster management plan in place for each and every port. On 18th March, 2011, as desired by the Gujarat State Disaster Management Authority, a comprehensive Disaster Management Plan for all GMB ports was submitted. The plan outlines a combined disaster prevention and response mechanism for all ports falling under GMB regulation. Magdalla Bharuch Bhavnagar Jafrabad Veraval Porbandar Okha Jamnagar Morbi Mandvi Alang Navlakhi Oil Spill Contingency As per NOS-DCP guidelines of the Coast Guard, GMB has hired M/s Homa Engineering as a contractor to handle oil-spill emergencies near GMB ports. In this regard, a mock drill was held to test the capabilities of the agency on 26 August 2011 at Bedi. The drill involved usage of oil spill equipments such as spiller & boomers, cutter machines, hydraulic equipments, fire extinguisher, hospital emergency response centre, etc. Flood Monitoring at GMB Ports To avert flooding-related disasters, all port officers have been instructed to keep a watch on flooding from dams. In this regard, water levels and related information are being tracked by obtaining data from the irrigation department website, and verbal communication with the concerned facility

26 12.3 Safe Coastal Areas Implementation of Inland Vessel Act, 1917 in Gujarat Gujarat has taken the lead in implementing the I.V. Act within its limits. Works related to survey and registration of I. V. Crafts and examination of the same was successfully taken over by Gujarat Maritime Board this year. Draft notification has been approved and submitted by GMB to the Government of Gujarat for issuance of final notification, which is expected by the end of July. This will help in streamlining the activities related to movement of I. V. Crafts in Gujarat Waters. Insurance Coverage for vessels calling at Gujarat In recent times, there have been cases where ships have sunk near Indian coasts, and where insurance companies have refused coverage. To resolve this issue, GMB decided to take up the matter of insurance coverage of vessels relating to wreck removal and oil pollution with the P & I (Protection & Indemnity) Club. The point was made that the "entry of ship" should mean that the vessel has been insured by the respective P & I Club, in accordance with the club's rules. The period of entry mentioned clearly means that the vessel is insured for that period and hence the insurance coverage for the vessel is valid. The reasoning has been accepted by P&I club and hence the matter has been resolved. GMB has been successful in checking the insurance of vessels, and recovering the costs of oil pollution and wreck removal from the owner of the vessel. The Secretary (Shipping), Government of India, appreciated GMB's efforts in this regard Vessel Management - Vessel Traffic & Port Management System (VTPMS) In August 2010, the country's biggest vessel traffic and port management system (VTPMS) was made operational. The VTPMS, the first of its kind in India, was built under the build-own-operate-transfer (BOOT) contract for 30 years, via collaboration between Kongsberg Norcontrol IT AS, a Norwegian defence and surveillance equipment manufacturer, and Aatash Computers Ltd (India). The system comprises of eight radars, multiple automatic information systems, directional finders and sensors, installed for the first time in India for coastal security. It monitors the movements of vessels in the Gulf of Khambhat, and provides for safe navigation and tracking of information related to movement of vessels. The system will help in protection of vessels carrying hazardous cargo, provide vessel traffic information and navigation advice, monitor shipping lanes and separation scheme to enforce compliance of safe navigation regulations, assistance to Coast Guard and other authorities, detection of oil spill and improve overall port efficiency. The VTPMS will also be important from the point of view of increased security threats from terrorists. Early intruder detection and tracking will play an important part in keeping the ports safe and secure. With the system being made operational, various rescue operations were assisted and continuous monitoring of ships with regard to coastal security was implemented. Director General of Shipping Mumbai, appreciated the work done by VTPMS in the Gulf of Khambhat in apprehending a ship which had been involved in an accident with a fishing boat and was trying to escape

27 13. Major Initiatives during the Year 13.5 Online Accounting 13.1 Formation of Project Monitoring Cell The Project Cell was formed under GMB in 2010 for the regular monitoring of ongoing projects related to civil, mechanical, fisheries and other work. All projects and spending are being carefully tracked through a Management Information System designed to detect delays/ over-runs and allow for immediate intervention Formation of Strategic Committee With the intention to analyze and discuss policy and strategic matters crucial for achieving and sustaining significant growth, GMB has formed a Strategic Committee. The members of the Committee are Financial Controller & Chief Accounts Officer, Chief Engineer, Traffic Manager and Dy. Engineer (Privatization Cell). The Committee will discuss and suggest new policies and revision of existing policy measures regarding PPP models, port revival, integrated port planning, etc. It will also study and evaluate the legal framework, successful international case studies, initiatives by major ports and other factors which would impact the port industry in general Performance Based Budgeting Performance-based budgeting aims to improve the efficiency and effectiveness of public expenditure by linking the funding of public sector organizations to the results they deliver, making systematic use of performance information. Instead of traditional budgeting method, the finance branch initiated the exercise of defining budgets for the FY based on defined performance parameters. Such parameters would be the outcomes of budgeted investments, and the performance will be measured against such quantified outcomes at the end of the year under the following heads: 1. Enhancement in Cargo Handling Capacity 2. Improvement in Port Operational Efficiency 3. Improvement of Asset Utilization 4. Environment-friendly, Safe & Secured Cargo Handling 5. Improvement in Administrative Efficiency 6. Improvement in connectivity to port 7. Other Port related initiatives The performance against these parameters would be measured and evaluated at the end of the year Asset Management GMB has created an electronic database of all its existing assets, which were also physically verified at each location. Each asset has been given a unique identification code, and the database contains all relevant information such as purchase date, purchase cost, accumulated depreciation, current physical status etc. The database has enabled GMB to accurately keep a track of its assets, and allows for systematic disposal of the unneeded / unusable assets. This year, realizing the growing importance of e-commerce, GMB for the first time, has tied up with the Government of India enterprise, MSTC for e-auctioning of these unwanted/unusable assets. The effort has been highly successful and GMB managed to raise approximately Rs. 4 crores from auctions of various items. Learning from this endeavour, GMB has also begun replacing in-person auctions for land leases, with e-auctions; again with great success. The e-auctions have helped bring a larger base of buyers into the fold; and the increased competition has fetched higher bid amounts, and greater revenues for GMB. Online accounting software Tata-Ex for finance and accounts management has been installed at GMB headquarters at Gandhinagar. Citrix server has been installed to bring the software online. Payment module and asset management module has been integrated with the Tata-Ex system. The software helped in online accounting and compiling financial statements on real-time basis. This is expected to improve administration efficiency in financial management Renewal of Lease of Plots GMB has renewed 52 lease plots to various stakeholders at different ports in the FY , the highest till now as compared to previous years. The task was completed as a result of dedicated initiative of GMB including frequent port visits and regular interaction with the stakeholders. Unpaid lease matters were resolved and the highest rent was recovered from the leased plots. GMB approved a large number of pending plans for construction purpose within these leased plots Launch of GMB e-musing Gujarat Maritime Board is planning to launch e-musing, the quarterly e-magazine on 5th April 2011, the National Maritime Day and the 29th anniversary of GMB. The magazine aims to share views of different stakeholders on port sector scenario in Gujarat and in the country. It will also be a good tool for communicating with all the stakeholders about policies and concerns of GMB on various topics. Its quarterly issues will feature articles about different trends, issues and areas of interest in the port sector, new developments and achievements of the Gujarat Maritime Board and feats by various Gujarat ports. This idea behind this e-magazine is not only to share information with parties currently involved in the Ports sector but also to reach out to organizations who may be interested in joining this booming industry Integrated Port Management System GMB is establishing an Integrated Port Management System (IPMS) for efficient integrated port management. The IPMS shall encompass activities such as traffic operations, online accounts and finance, land and asset management, human resource administration, security, disaster management etc. The aim is to integrate all such functions in a single IT platform and thereby improve operational efficiency and minimize revenue leakages. A consultant has been appointed to suggest IT solutions for various business processes of GMB which will be implemented at all port locations in a phased manner E-Governance GMB has taken up various measures in e-governance. An audio-video conferencing system between Gandhinagar HQ and the Jamnagar port office is being established as per the guidelines of the state Government. The guidelines call for extensive use of video conferencing facilities to reduce the frequency of personal meetings between field officers and the officers at GMB headquarters at Gandhinagar. This will facilitate in quick decision making. On 5th April, 2010, GMB launched its updated website, boasting of a new layout and a web-based "Content Management System" (CMS). The CMS allows the concerned branches to update their data online on day to day basis. Salient features of the website include an impressive photo gallery, weather details, traffic statistics, shipping details, cargo related details, and regular news updates about the Vibrant Gujarat Summit and other events of GMB that aim to attract national and international investors. A website manager has been appointed to manage the website. GMB has procured new hardware system to enable desktop virtualization through N-Computing. The facility is going to be introduced very soon

28 13.10 Welfare Activities 14. GMB in the Media As part of its pro-people approach, GMB has undertaken various welfare activities for the benefit of its employees. GMB actively takes part in National Maritime Day Celebrations every year on 5th of April. Housing quarters have been allotted to the employees in the GMB colony at Gandhinagar. GMB organized health check-ups for its employees at the GMB Headquarters as well as at all the ports under its jurisdiction, in addition to various health awareness programs. GMB also organized numerous indoor and outdoor games during the year, helping build greater team spirit and competency among its people Stakeholder Conferences In order to showcase the potential of Gujarat ports as a coastal gateway for the northern states and to highlight its excellent port infrastructure, GMB along with Confederation of Indian Industry organized a Seminar on "Gujarat Ports: A Catalyst for India's Development" on 13th January 2011 during the 5th biennial Vibrant Gujarat Global Investors' Summit. The seminar highlighted the potential of coastal shipping in Gujarat and identified the course of action for integrated port development. Prior to that, as part of the Golden Jubilee Celebrations of Gujarat state, GMB successfully organized a National seminar on Port-led Development in Gujarat on 29 June The seminar identified the way ahead for Gujarat ports on the holistic port development strategy, strengthening rail road connectivity and developing multimodal logistics parks for faster evacuation and movement of cargo. GMB participated in 'Gujarat Junction 2011' - an International Symposium on 'Turning the wheels of Industry', on Saturday, March 5, 2011 at the GMCB Hall, GCCI, Gandhidham, Kandla, Gujarat. The event was jointly organized by the Gandhidham Chamber of Commerce & Industry and the Fair-play Exposition Group. A Mega exhibition of Trade & Industry was held from 12th to 15th March 2011 at Surat International Exhibition & Convention Centre, Sarsana, Surat, organized by The SGCCI. GMB showcased its activities, performance and opportunities of the Gujarat Port Sector Awards and Recognitions The stellar performance of GMB is demonstrated by the four awards it won during FY The awards were in recognition of its leading role in implementing 'Industry-friendly Policies' and for being the driving force of maritime trade in the state. GMB was honoured with the following awards during the year: 1. Port Authority / Maritime Board of the Year award given by EXIM India and Fairplay Exposition Group 2. Special Jury Award given by Maritime Gateway of India 3. Indian Maritime Newsmaker of the Year by Maritime Gateway of India 4. Best Initiative taken by a State in Maritime Industry by Chemtech Foundation 50 51

29 15. Annual Accounts The Gujarat Maritime Board aims to follow a balanced financial policy to ensure safe-guarding of existing assets, as well as generating a positive rate of return on them Income and Expenditure Statement Income and Expenditure accounts for the year ended on 31st March, 2011 Particulars Sch. Current year (Rs.) Previous Year (Rs.) (A) INCOME 1 Port Infrastructure Facilities Marine Services Clearing, Forwarding and Stevedoring Storage Area and Land Rentals Equipment and Harbour Craft Rental Other Fees Income From Other Port Services GOG Administrative TOTAL (B) EXPENDITURE 1 Payments to and Provisions for Employees Administrative & Other Charges Repairs & Maintenance Port Operational Charges Finance Charges TOTAL (C) Operating Surplus/(-)Deficit before depreciation (A-B) Less : Contribution - Pension Trust Less : Contribution - GPF/Gratuity Trust Fund Less : VRS Payment - - Less : Depreciation (D) Operating Surplus/(-)Deficit after depreciation before interest Add : Financial Income Other Income (F) Net Surplus/(-)Deficit Before Tax Less: Provision of Tax - (G) Net Surplus/(-)Deficit After Tax Less: Appropriations (H) Balance Transfer to General Reserve Net income for the year was Rs crore approximately. The decrease from the figure of Rs crore is mainly due to the equity write-off for shares of GCPTCL (Gujarat Chemical Port Terminal Company) of Rs. 45 crore approx. 52 Operating Income Constituents Major trends in Operating Income for Port infrastructure facilities: Income was less this year due to reduced beaching fees received from ship-recycling yard. Transhipment charges were also approx. 50% less than last year. 2. Marine services: Income from marine services was Rs crore more than last year. However, pilotage fees were lower due to lesser no. of vessels handled at Sikka, Porbandar and Navlakhi ports. 3. Clearing, forwarding and stevedoring: Lesser due to reduced recycling charges. 4. Storage area and land rental: Income was Rs. 3.9 cr less on account of: a. Reduced land lease rental 1% Port Infrastructure 39% Marine Services 17% Clearing, Forwarding and Stevedoring 8% Storage Area and Land Rentals 2% Equipment & Harbour Craft Rental 5% Other Fees & Port Services 28% GOG Administrative Charges b. Transfer fees for plot ownership change were Rs crores less. This income is variable from year to year. Operating Income Constituents Port Infrastructure Marine Services Clearing, Forwarding and Stevedoring Storage Area and Land Rentals Equipment & Harbour Craft Rental Other Fees & Port Services GoG Administrative Charges

30 Major Trends in Other Income for Other income was higher on account of additional income of Rs crores collected as VTPMS fee for the year. VTPMS fee charged for last year was only Rs crores. 2. Financial income was lower as scheduled redemption of SSNNL bonds reduced interest income from bonds. Interest on ICD's was also lower by Rs crores. Expenditure Constituents Major Trends in Expenditure for % Financial Charges 42% Employee Payments 46% Admin & Other Charges 6% Repairs & Maintenance 6% Port Operational Charges 1. Payments to and provisions for employees: Increase in dearness allowance as mandated by the State Government and new recruitments contributed to an increase in DA expense by Rs. 5.9 crores. 2. Administrative and other charges: The large increase was due to the write off of GMB's equity investment in GCPTCL of Rs crores in Repairs and maintenance: Expenses on repairs and maintenance of civil assets was substantially lower this year. The large figure last year was on account of heavy expenditure incurred for construction of the road at Dahej Port (approx. Rs. 20 crores). Expenditure Constituents Employee Payments Admin & Other Charges Repairs & Maintenance Port Operational Charges Finance Charges Income and Expenditure Statement (A) I II SOURCES OF FUND Particulars Head Office Account (Contra) Opening Balance Add: Addition during the year Less : Transfer during the year Closing Balance Balance Sheet as on 31st March, 2011 Sch. Current year (Rs.) Previous Year (Rs.) Reserves & Surplus Revenue Reserves & Acc. Surplus A Premium Grant & Capital Receipt B General Reserve C III Loan Funds D Secured Unsecured TOTAL (B) APPLICATION OF FUNDS E V Fixed Assets Gross Block Less : Depreciation Net Fixed Assets Capital work in Progress VI Investments F Investments in Equity Shares Investments in Bonds & Deposits VII VIII Current Assets and Loans and Advances Stores G Sundry Debtors & Receivables H Deposit works for other Departments I Loans & Advances J Cash & Bank Balances K Current Assets Less : Current Liabilities & Provisions Current Liabilities L Provisions M Current Liabilities NET CURRENT ASSETS Port Accounts IX Miscellaneous Expenditure N ( to the extent not written off) TOTAL

31 16. Traffic Performance GMB Ports- Growth Trends Continue Traffic at all GMB ports for stood at MMT; continuing the upward trend in traffic over the years. This traffic reflects a 12% increase over the year Gujarat's non-major ports now account for 72% of traffic at non-major ports in India, and 26% of all cargo handled in India. Traffic at GMB ports too increased by 13% over the previous financial year. Magdalla, Muldwarka, GAPL shine Traffic at Magdalla increased by more than 13% from , to 18.5 MMT, thus building on the 16% increase the year before. Of this amount, import traffic was 16.6 MMT, with iron ore (6.39 MMT), coal (4.14 MMT) & naphtha (2.13 MMT) being the major import commodities at the port. The increase in traffic at GMB's jetties as well as at the newly expanded Essar Jetty (extended by 165 m), both contributed to this increase. The addition at the Essar Jetty accounted for 6.36 MMT of traffic. The captive Jetty at Muldwarka too saw an increase in traffic of 21% on the back of increased trade volumes. It handled 3.85 MMT of cargo, the main commodity being cement (2.92 MMT) for export. Traffic at GMB Ports Import Export GAPL (Gujarat Adani Port Limited) showed impressive growth in both container and general traffic. General traffic at GAPL stood at 36.6 MMT (increase of 28%), and container traffic stood at 15.6 MMT (increase of 40%). GPPL (Gujarat Pipavav Port Limited) too saw a significant increase in container traffic, but regular traffic activity was relatively flat on last year Traffic in MMT Sikka handled the highest cargo tonnage of MMT contributing to almost half of the total cargo handled by GMB Ports. The three major commodities handled were import of crude oil (64.5 MMT); and export of HSD (24.90MMT) and MS Petrol (10.07 MMT). Navlakhi handled import of 4.3 MMT of Coal. Cement (0.02MMT) and Cement Clinker (0.18 MMT) were the major items handled at the Porbander Port. Okha handled total cargo of 1.15 MMT; Soda Ash, Lime Stone and Coal being the major items. Around 14.3 MMT total cargo was handled at Dahej Port for the year. Other ports like Bedi, Veraval, Bhavnagar, Sachana, Jakhau and Mundra together handled total cargo of 3.87 MMT during the year. Alang saw a marginal decline in total steel recovered from recycling operations: steel recovered this year was 2.8 million LDT compared 2.95 million LDT last year. Capacity Utilization With the addition of 40 MMT, capacity at GMB ports was increased to 284 MMT. At current traffic levels, capacity utilization stands at 81%. Capacity of GMB ports Capacity Traffic Traffic by Ports Others Alang GAPL GPPL Dahej Magdalla Mul Dwarka Jafrabad Sikka Bedi Navlakhi Traffic Segmentation Captive Jetties handled the bulk of traffic at 61% of the total. Private ports made up 31%. Traffic Segmentation by Facility 6% GMB Jetty 31% Private Ports 2% Private Jetty 61% Captive Jetty

32 SCHEDULE - 1 Port Infrastructure Facilities Beaching Fees Beaching Fees-Ship Recycling Embarking and Disembarking Fees 348 Heavy lift Fees Transhipment Charges SCHEDULE - 2 Marine Services Anchorage Fees Berth & Mooring Fees Berth Hire Charge Berthing Unberthing Pilotage Fees Pilotage Fees - Ship Breaking Port Dues - Ship Breaking Port Dues Steamers and Sailing Vessels SCHEDULE - 3 Clearing, Forwarding and Stevedoring Barge and Ship Detention Charges Demmurage Charges Launching Fees for Barge Overtime for Barge Clearance Recycling Charges Ship Overtime Supervision Charges SCHEDULE - 4 Storage Area and Land Rental Godown / Warehouse Rent Land Lease Rental Office Space Rental Open Space/Shed Rent Other Rental Charges Platform Rent Plot Rent Plot Rent - Ship Recycling Transfer fees - Change in Ownership SCHEDULE - 5 Equipment and Harbour Craft Rental Crane/Bulldozer Hire Charges Port Appliances & Other Appl. Rental Charges Port Floating Craft Rental Charges Rent of Concrete Block Tug and Launch Services Tug and Launch Services - Ship Recycling SCHEDULE - 6 Other Fees Certificate Amendment Charges Launching Fees for Flotilla Craft Registration Fee Vehicle Entry Fees

33 SCHEDULE - 7 Income From Other Services Electricity Charges Fresh Water Supply Fresh Water Supply- Ship Recycling Inspection Charges Office Opening Passenger Fee from Gomti Plot Development Fees Survey Fees Weigh Bridge Charges Wireless Charges Other Income Advertisement Income Ambulance Charges Bank Guarantee / Security Deposit Forfeiture Centage Charges Fire Charges Ground Rent Guest House Charges Levy of Compensation Other Income CNG Lease Rent Penalty and Liquidated Damage & Forfeiture of SD & EMD Prior Period Income / Expenses (Net) Premium on Private Jetties Premium on Private Jetties (Lease) Profit on Sale of Assets Rent - SBI Rent of Canteen Rent of Quarters Right to Information (RTI) Sale of Scrap Scrutiny Fees Tender Fees Testing Charge Violation of Regulation 2003 Visiting Charges - Ship Recycling Yard Oil Pollution Cess

34 Financial Income Interest from SB Accounts Interest on Bank Deposits Interest on Bonds & Debentures Interest on Company Deposits Interest on Delay Payment of Alang / Private Jetties Interest on FD Interest on House Building Advance Interest on ICD Interest on IT Refund A/c Interest on Liquid Deposits Interest On Motor Car Advance Interest on Scooter / Moped Advance Interest on Security Deposit Interest Prior Period DIVIDEND INCOME Government Companies Other Companies SCHEDULE - 8 GoG Administrative Charges GoG Administrative SCHEDULE - 9 Payments to and Provisions for Employees Bonus/Ex-Gratia City Comp. Allowance (CLA) Conveyance Allowance Dearness Allowance (DA) Dearness Pay Gratuity/Grade Pay House Rent Allowance Leave Encashment Leave Travel Concession Medical Allowance Other Allowances Overtime Allowance Pay of Establishment Pay of Officer Pilotage Allowance Reimbursement of Medical Allowance Remuneration Special Pay Washing Allowances Deposit Link Insurance and Death Link Insuarance Death Link Insurance Deposit Link Insurance

35 SCHEDULE - 10 Administrative and Other Charges Advertisement Expense Audit Fees Books & Periodicals CM Relief Fund Consultancy Fees (Legal) Consultancy Fees(Others) Conveyance Expenditure Death Compensation Electricity Expense Employee Welfare Expenses Fire Fighting Expense Gardening Expense Grant to Alang Notified Area for Expenses Infrastructure Development Expense Insurance Expenditure - Flotilla Units Insurance Expenditure Agreement Fees Management Expenses-Indext-B Office Expense Penalty Petrol and Diesel (for D.G.Set) Petrol and Diesel (for Office Vehicle) Postage and Telegram Printing and Stationery Rates and Taxes Refunds of Revenue Expense Rent Security Expense Seminar and Workshop Expense Store and HBA Write off Survey Expense Survey Fees for Alang Tea and Breakfast Telephone Expense Tours and Traveling Training Expense Transportation Expense Uniform Expenses Vehicle Hire Charges Water Supply Expense Welfare Expenses for Alang Wireless Expense Write off of Equity Investment Xerox and Copier Exp SCHEDULE - 11 Repairs and Maintenance Repairs and Maintenance - Civil Assets Repairs and Maintenance - Civil Assets (FHP) and (R&M) Repairs and Maintenance - Computer Repairs and Maintenance - Dredging Repairs and Maintenance - Electrical Repairs and Maintenance - FHP Repairs and Maintenance - FHP and Others Repairs and Maintenance - Flotilla Assets Repairs and Maintenance - Mechanical Assets Repairs and Maintenance - Mechanical Assets and (On Shore) Repairs and Maintenance - Office Equipment Repairs and Maintenance - Others (Specify) Repairs and Maintenance - Vehicle Repairs and Maintenance - Water Supply SCHEDULE - 10 Repairs and Maintenance - Others (Solid Waste Management System)

36 SCHEDULE - 12 Port Operational Charges Flotilla Unit Operation Contract Charges Fuel for Flotilla Units of Port Fuel for Port Equipments Other Port Operation Charges SCHEDULE - 13 Finance Charges Bank Charges Bank and Other Interest VRS Ex-gratia Payment VRS Pay Depreciation on Civil Assets Depreciation on Computers Depreciation on Mechanical Assets Depreciation Statutory Reserves SCHEDULE - A Revenue Reserves and Accumulated Surplus Capital Replacement and Rehabilitation Reserve Development and Contingency Reserve Revenue Reserves and Accumulated Surplus Opening Balance Add Surplus/Deficit during the year Less: Surplus/Deficit during the year TOTAL SCHEDULE - B Premium and Capital Reserves Premium and Capital Receipt Premium - JM Baxi & Co. 100 M RCC Jetty Premium - Ruchi Infrs. Ltd Premium - Alang Capital Grant from GoG Premium TOTAL SCHEDULE - C General Reserve 0 0 TOTAL 0 0 SCHEDULE - D Loan Funds 0 0 TOTAL

37 SCHEDULE - E Fixed Assets Gross Block Depreciation Net Block Particulars Depreciation for the year Opening Balance Opening Adjustment Deletion during the year Addition during the year Opening Balance Civil Assets Mechanical Assets Land Other Assets Work in progress WIP Transfer from HO SCHEDULE - F Investments Long Term Short Term Equity Shares amd Bonds GACL Baroda Dahej Bharuch Road Ltd.- Equity GLFL Ahmedabad GSFC Baroda GPIDCL Gandhinagar GSFC Ahmedabad GCPTCL Baroda GSPL Gandhinagar Dahej Bharuch Rail Ltd.- Equity Alcock Ashdown Bhavnagar Bonds and Deposits with banks and other institutions Ahd. Urban Co.-op Bank (Consider doubtful debt ) Ahd. Mahila Nagrik Bank (Consider doubtful debt ) SSNNL Bonds GIIC (SWIL) Bank Deposit/FDR TOTAL SCHEDULE - G Stores Opening Balance Add: Purchase During the Year Received from other ports/offices Less: Consumption During the Year Transferred to Other Ports/offices Sale of Stores Written off Store in Transit TOTAL

38 SCHEDULE - H Sundry Debtors and Receivables Group Insurance Other Deposits Sundry Debtors "TDS Receivable (FY of Rs.54834/-, FY of Rs /- FY of Rs /-, FY of Rs /-, FY of Rs /-& FY of Rs /-, F.Y of Rs / Accrued Interest Advance Income Tax Interest Receivable GIIC (SWILL) Tax Adj. by IT Dept. for A.Y GoG State Charges Receivable TOTAL SCHEDULE - I Deposit Works for Other Departments Deposit works for Fisheries Dept. and Umarwads Hatcheri Project Deposit works for Coast Guard Dept/Umarwads HD Project and Other Department SCHEDULE - J Loans and Advances Advances to Employees Abstract to Employees Cycle Advance Fan Advance Festival Advance Food Grain Advance Advances to Employees Credit Society Unsecured Deposit (loan) Deposit Others House Building Advance Motor Car Advance Scooter / Moped Advance TOTAL SCHEDULE - K Cash and Bank Balances Cash Balance Cheques on Hand Money in Transit PLD Bank Control Account Port Collection Accounts Port Expenditure Account FD for Bank Gaurantee Court Case -56/ Government PLA A/c Liquid Deposit with GSFS GSFS ICD SBI GMB Collection Account SBI Ashram Road Collection A/c SBI Ashram Road Expenditure A/c SBI GMB Expenditure A/c SBI NSC Branch Expenditure A/c SBI NSC Collection Account

39 Statutory Liabilities SCHEDULE - L Current Liabilities GPF Payable Income Tax (TDS from Contractor) Income Tax (TDS from Salary) Professional Tax Service Tax Payable Group Insurance (GOG) House Rent Other Liabilities SCHEDULE - K Advances from Customers Group Insurance Loans to Employees Credit Society PLD Customers Control Account Security Deposits Sundry Creditors for Expense Other liabilities Sailing Vessels Account Advance from M/s. Petronet LNG Co. for Land Acquisition Advances from Surat Muni. Corporation For Deposit Work CRZ Management Authority Security Deposits - Alang GoG State Charges Revenue Payable Deposit works for fisheries dept. and Umarwads Hatecheri Project SYND GNR Collection A/c CRZ Mangement Authority Bank A/c and FDR PO Alang Welfare SBS Service Tax Bank Control Account TOTAL TOTAL SCHEDULE - M Provisions Salary Payable Other Expense Payable Exgratial of VRS payable Waterfront payable to GOG TOTAL SCHEDULE - N Miscellaneous Expenditure

40 STATEMENT - 1 Number of steamers & sailing vessels handled at GMB Ports in Port of Ships Foreign Import Export (Traffic in Lakh Tonnes) Coastal Foreign Coastal 1 Mandvi Salaya Mundra(Old) Pipavav(Victor) Jakhau Navlakhi Bedi Sikka Jafrabad Okha Porbandar Veraval Mul-Dwarka Bhavnagar Magdalla Dahej Pipavav(GPPL) Mundra(GAPL) HPPL Alang(LDT) Sachana(LDT) TOTAL: Sailing Vessels GRAND TOTAL: Container Cargo - GPPL : GAPL : Nationality STATEMENT - 1A Number of sailing vessels handled at GMB Ports in (in Lakh Tonnes) of S.V. Foreign Import Export Coastal Foreign Coastal 1 Mandvi Salaya Mundra(Old) Jakhau Navlakhi Bedi Sikka Jafrabad Okha Porbandar Veraval Mul-Dwarka Bhavnagar Magdalla Dahej Gogha Pipavav(Victor) Mahuva Alang(LDT) Sachana(LDT) TOTAL:

41 STATEMENT - 2 Traffic handled according to nationality of the ship in Nationality of Ships Foreign Import Export Coastal Foreign Coastal (in Lakh Tonnes) 1 Antigua Australiya Abu Dhabi Belize Barmuda Baharin Bahamas Bolivia Barbados Belgium China Kampuchea Morrocco Seychelless Cypras Syrian Arab Combodia Union Of Soviat Union Of Commoros Coratia Douglas Doha Dubai Denmark Dragar England Franch Fierra Gibraltar Germani Greece Greek Hong Kong Hamburg Nationality of Ships STATEMENT - 2 Foreign Import Export Coastal Foreign Coastal 35 India Isle of Men Indosiya United State Of Amrica Yugoslavia Istanbul Italian Japan Kuwait Korea Limassol London Liberia Malasiya Malta Mangolia Majuro Marshall Island Moldova Maldives Danish Caymond Island Norway Netherland Pakistan Panama Brazil P.r.china Philippince Saudi Arabia Spain Quatar Qatak Bangkok Singapore St.kits & Neivs

42 Nationality of Ships STATEMENT - 2 Foreign Import Export Coastal Foreign Coastal 71 Manila St.vincent St.john's Kobentan Thilands Turkish Tanzania Tiwan Bergan Vanuatu New Castel Vietnam Lapaz Bangladesh Piraeus Shrilanka South Africa Switzerland Port Villa R.O.C Rotterdam Nassav Kingstown Limasol Monrovia Port Keleng British South Korea Syrian U.A.E United Kingdom Hellenic P.Gulf Vellata Nempo Tonga Nationality of Ships STATEMENT - 2 Foreign Import Export Coastal Foreign Coastal 107 Union of Commoros Sierra Leone Tuvalu Greanadines Bulgarian Batumi Combodia Piraeus Free Town Georgia Tanzania Russian Slovakia Polish Cool Islands Tiwan Jorden Iranian USA Zanzibar Egyptian Tunisian Moroni Kiribati Wilemstadn French Portugal Canada Comoros Ethopia GRAND TOTAL Sailling Vessels 1.44 Copntainer Cargo TOTAL CARGO

43 STATEMENT - 3 Port-wise / Commodity-wise import traffic during (Figure in Lakh Tonnes) Alang Bedi BVR Dahej GAPL GPPL HPPL JFD Jakhau MGL M.D Mundra NLK Okha PBR Salaya Sachana Sikka TOTAL Commodity 1 Acetic Acid Ammonia Base Oil Bitumen Butene Bauxite CBFS Cement Clayin Bulk Chilori Caustic Soda Clinker Container Cargo Coal Coking Coal Copper CPO Crude Petroleum oil CPS CPKO Crude Oil CSSO Crude Soyabean oil Crude ssunflower oil Dates DAP E.D.C Ethylene Ethyl Hexanol Farm Fatty Acid Fuel Oil Fertilizer Gypsum Gernal (Project) Gas Oil HSD Heavy Aromatics Heavy White Oil Alang Bedi BVR Dahej GAPL GPPL HPPL JFD Jakhau MGL M.D Mundra NLK Okha PBR Salaya Sachana Sikka TOTAL Commodity 39 HMS Scarp Iron Ore Fines Iron Ore LAB L.D.T L.P.G LSFO LSWR LNG Lime Stone Machinery Mop Motor Spirit Methanol NPWP Naphtha Normal Parrafin Octane PFAD Para-xylene Pinelogs Phos. Acid Project Cargo Propene Propylene Rubber Tyres Rock Phos Silica Sand Steel Slab &Cargo SKO Styrene mono Steel Steel Coils Steel Pipe Steel Plates Steel Billates V.G.O V.C.M V.A.M Waxes TOTAL

44 STATEMENT - 4 Port-wise / Commodity-wise export traffic during (Figure in Lakh Tonnes) Bedi BVR Dahej GAPL GPPL JFD Jakhau MGD Mandvi M-D. Mundra NLK Okha PBR Sikka VRL TOTAL Commodity 1 Alkylate ATF AFS Animal Food Bauxite Butadine Bentonite Benzene Caustic soda CBFS Cement Coal Container Cyclohexane Cement Clinker Clinker Ethylene Food-grain Fuel Oil GAS OIL (HSD) G.N.Ext H.R. Coils Heavy Aromatics H.S.D Iron Ore Fines Khaolin LAB LPG Machinery Met Coke Methanol M.S.Petrol Commodity Bedi BVR Dahej GAPL GPPL JFD Jakhau MGD Mandvi M-D. Mundra NLK Okha PBR Sikka VRL TOTAL 47 Motor Spirit Naphta Others Onion Para-xylene Project Cargo Propylene Propane Pet Coke Rice Rapeseed Salt Sulphuric Acid Sugar Sulpher Soda Ash Soyabean meal Steel Pipe Steel Plate Steel Steel Coils VGO Wooden TOTAL

45 STATEMENT - 5 Coastal (un-loaded) cargo movement (Figure in Lakh Tonnes) Bauxite Cement Clinker Naphtha Para-xylene Coal Buten Iron Ore Iron Ore Crude Oil Machinery Propylene HSD Ethylene SKO Pro.Cargo IOF CBFS F.O. Scrap HRC Coil Motor Sprit Propane TOTAL Imported from Port of Import 1 GUJARAT Bedi Dahej Magdalla Navlakhi Sikka GAPL MAHARASHTRA Sachana Dahej Magdalla Alang GPPL GAPL GOA Magdalla GPPL GAPL ANDHRA PRADESH Magdalla Sikka GAPL KERALA GPPL KARNATAKA GAPL Magdalla TOTAL :