nyk roro coastal shipping and prospects in india 1/waterways and... · 22.5 mtrs inr 13,920 inr...
TRANSCRIPT
Presentation for Society of Indian Automobile Manufacturers
NYK RORO Coastal Shipping and Prospects in India
16th Jan. 2015
NYK Line Auto Logistics Group
Table of Contents
I. NYK RORO and NYK Auto Logistics at a glance
II. NYK’s Coastal RORO Shipping
1. China
2. Malaysia
3. Indonesia
4. Australia
III. Indian Coastal RORO Shipping / Prospects and challenges
NYK RORO and NYK AUTO LOGISTICS at a glance
3
NYK Fleet
4
March 31, 2014
NYK Fleet – Car Carrier
6
USEC - Middle East
USEC – WCSA
Gulf – Caribbean – ECSA shuttle
Mexico – WCSA shuttle
Far East – USWC/USEC/WCCA/WCSA/CARIB
Far East Shuttle (Japan-Korea-China)
Far East – EC AUST / WC AUST / PNG
Far East – S.E. Asia
Far East – Arabian Gulf / Red Sea / Africa
Far East - Mediterranean & Europe
Europe – North America
Europe – S.E. & Far East
Europe – Middle East
Africa - Europe
Regional head quarter
Remarks : this map is not including the services provided by subsidiaries
Intra S. E. Asia Shuttle
S. E. Asia - Bengal shuttle
S. E. Asia – AUST
S. E. Asia - Red Sea
S. E. Asia / India -Mediterranean & Europe
NYK car carrier services cover the world
7
Inland Terminal
Local RoRo Terminal
Offering value-added services from end to end with the world’s largest car carrier fleet of about
120 vessels, world-wide logistics networks and advanced transport technologies.
Production
Automobile Hub Terminal
PDI Center
(Pre-Delivery Inspection)
Inland
Transport
Ocean Transport
(Deep sea)
Automobile Hub Terminal
Dealer
Production
Ocean Transport
(Feeder Network)
Milk Run
Parts Production
PDI Center
NYK Automobile Transportation Services
8
Antwerp, Belgium
Zeebrugge, Belgium
Gioia Tauro, Italy
Southampton, UK
Bristol, UK
Almaty, Kazakhstan
Singapore
Port Kelang, Malaysia
Laem Chabang, Thailand
Tianjin, China
Dalian, China
Shanghai, China
Guangzhou, China
St. Petersburg, Russia
Novorossiysk, Russia(2013)
Zarubino, Russia
Pipavav, India (2015)
2011: 1,337,826 2012: 1,582,513 2013: 1,801,320
2011: 107,755 2012: 146,521 2013: 220,424
2011: 688,516 2012: 825,472 2013: 899,137
2011: 6,860 2012: 12,963 2013: 19,815
2011: 147,041 2012: 153,571 2013: 87,177
2011: 145,021 2012: 208,217 2013: 268,338
2011: 275,474 2012: 313,240 2013: 409,770
2011: 1,103,898 2012: 1,273,774 2013: 1,392,894
2011: 701,133 2012: 705,971 2013: 740,208
2011: 176,624 2012: 226,562 2013: 357,148
2011: - 2012: 46,065 2013: 119,709
2011: 4.7 mil Terminal TTL 2012: 5.5 mil 2013: 6.3 mil
NYK Auto Logistics RORO Terminal
Veracruz, Mexico (2014)
9
NYK Auto Logistics (Thailand)
Patrick Autocare, Australia
NYK Auto Logistics (India)
ROLF SCS (Russia) GNL, Changsha
NYK BLL (South Africa)
NYKZHENHUA, Tianjin
NYKANJI, Shanghai
Tonglit Logistics, Taiwan
NYK Automotive Logistics China
NYKULS, Shenyang
NYK Auto Logistics Philippines
GIGA SHIPPING, Malaysia
NEXUS, Malaysia
2011: - 2012: 110,830 2013: 272,182
2011: 145,305 2012: 156,382 2013: 152,973
Auto Parts
2011: 345,272 2012: 415,602 2013: 451,224
2011: 47,047 2012: 73,205 2013: 78,802
2011: - 2012: 2,233 2013: 40,669
2011: 102.204 2012: 114,725 2013: 143,417
2011: 23,023 2012: 48,603 2013: 72,756
2011: 92,241 2012: 101,719 2013: 104,793
Auto Parts
2011: 559,119 2012: 670,682 2013: 681,475
2011: 185,540 2012: 249,787 2013: 211,222
2011: 936,755 2012: 988,009 2013: 1,083,748
2011: 138,138 2012: 175,520 2013: 195,636
2011: 2.6 mil Inland Logi TTL 2012: 3.1 mil 2013: 3.5 mil
NYK Auto Logistics - Inland Logistics
PT. NYK Puninar Auto Logistics Indonesia
Almaty, Kazakhstan
CSI, Mexico
NYK Auto Logistics Group - Regional Shipping
10
United European Car Carriers,
Norway
Straits Auto Logistics,
Malaysia
NYKCOS, China
PT. NYK-SPIL INDORORO,
Indonesia
2011: 1,270,000 2012: 1,300,000 2013: 1,495,530
2011: 84,320 2012: 108,244 2013: 104,286
2011: 76,994 2012: 78,763 2013: 91,781
2011: - 2012: 13,691 2013: 35,761
2011: 1.4 mil Regional TTL 2012: 1.5 mil 2013: 1.7 mil
Patrick Auto Care,
Australia
2011: 608 2012: 1,016 2013: 2,941
Global NYK’s Coastal RORO Shipping
11
Coastal RORO Shipping in China
Regulations in China
• Operators and owners must be shared 100% by only Chinese capitals.
• Flag ship must be Chinese.
• Officers and crews must be Chinese.
Operators in China
Vessels in China
• 25 existing ships
• 4 vessels (Over 2,000units) are under construction.
• NYK provides technical support partly.
Main Service Map in China 1. North-South Service
(Nansha-Shanghai-Tianjin-Dalian)
2. Bohai Service
(Dalian-Yantai-Tianjin)
3. Shanghai Service
(Shanghai-Tianjin-Dalian)
4. Hainan Service
(Hainan-Nansha etc...)
Yantai
Shanghai
Tianjin
Nansha
Dalian
Hainan
Our Prospects for Chinese market
• Demand for coastal RORO shipping service will exceed supply there in 2015.
• The supply shortage is expected to continue and increasing.
906
1,282 1,337 89
174 181
139 139
105
0
200
400
600
800
1,000
1,200
1,400
1,600
0
50
100
150
200
2013 2015 2020
Costal Productive Capacity Demand for Short Sea Supply of Short Sea
Coastal RORO Shipping in Malaysia
Regulations in Malaysia
• Majority of the capital must be held by Malaysian.
• Flag ship must be Malaysian.
• Officers and crews must be Malaysian.
• Ships over 20 years have to be verified of the various report.
Operators in Malaysia
Major Operators are only 2 companies.
– SAL (Straits Auto Logistics Sdn Bhd)
Shared by NYK and GIGA Shipping
– KKRN (Kawasaki Kisen Regional Navigation)
Shared by K-Line and GIGA Shipping
*GIGA Shipping is a subsidiary of GIGA Maritime Group
Vessels in Malaysia
• MV Straits Challenger (SAL)
– Load over 5000 units
• MV Grand Vision (KKRN)
– Load over 5000 units
Service Map in Malaysia
• 4 fixed ordered ports of call
Port Klang, Kota Kinabalu, Labuan, Kuching
• Every 10days service
3 services / a month
Our Prospects for Malaysian market
• Malaysia coastal RORO shipping market is a niche and small market.
• Cargo volume has increased every year very slightly.
• It is expected to increase continuously gradually.
Coastal RORO Shipping in Indonesia
Regulations in Indonesia
• Domestic shares should be more than 51%.
• Flag ship must be Indonesian.
• Officers and crews must be Indonesian.
• Domestic shipping service is not allowed to be combined with foreign shipping service.
Operators and vessels
• All ports except Jakarta port cannot be called by huge vessels.
• All import cargoes are discharged at Jakarta and distributed to each islands by short sea.
• There are incalculable short sea operators in Indonesia.
• They have small vessels (less than 1,000 units).
NYK Group Company • NYK-SPIL INDORORO (“NSI”) is J/V with
NYK and SPIL. * SPIL – PT. Salaam Pacific Indonesia Lines, one of top domestics container lines based in Surabaya.
• Domestic RORO shipping service between Jakarta and 3 islands (Sumatera/Kalimantan/Sulawesi) with 2 vessels (760 units and 840 units).
• To expand own share in the limited market, NSI offers both “Port to Port Service ” and ”Door to Door Service”.
Service Map of NSI
Coastal RORO Shipping in Java
JAKARTA
SURABAYA
• Jakarta-Surabaya Coastal RORO Service is a preferable choice instead of inland transportation.
• Inland transportation in Java has some problems;
– Delay due to heavy congestion in Jakarta and Surabaya
– High damage ratio due to rough road condition
Our Prospects for Indonesian market
• Car sales growth is getting slow recently
• Java island occupies 60% of whole national demand. – All domestic car factories are located near Jakarta.
– Jakarta is sole international port to import foreign cars
• Demands for regional RORO shipping service are coming from 40% of total national market.
2011 2012 2013 2014
0.89mil 1.12 mil 1.23mil 1.25 mil
Coastal RORO Shipping in Australia
Australia Coastal RORO Service
• No domestic RORO shipping operators
• Cabotage is permitted for foreign shipping operators.
• PAC arranging short-sea booking service.
• Mainly from Melbourne & Sydney to Brisbane & Perth by NYK & etc.
Coastal RORO Service in India Prospects &Challenges
Mumbai
Mundra
Ennore
PDI at Mundra/Mumbai Port
Chennai/ Yard Management
Mumbai/Chennai VDC
Chennai Accessory Fitment
VDC/PDI
Pipavav Port Operation scheduled on 2015
RORO Terminal
Fleet expansion from 100 to 300 units
(middle term business plan)
Rail Under Study (Autowagon)
TRAILER
Chennai
Pipavav(Plan)
NYK Auto Logistics - INDIA
RORO Terminal
Trailer
VPC
T
T
P
P
P
P
P
P
Our Esteemed Customers
35
Coastal Shipping Regulations in India The coastal trade of India is exclusively reserved for
– Ship owned by Indian citizen/company/co-operative society
– Ship chartered by Indian citizen/company/co-operative society as per provisions of the Merchant Shipping Act.
100% Foreign Direct Investment is permitted in Indian Shipping Company
Regulatory requirements for Coastal operations:
Note: DGS = Director General of Shipping
* Indian Citizen/Company/Co-operative Society
Chartered by Indian Entity *
Indian Flag Ships Foreign Flag Ships Foreign Flag Ships
1. Chartering permission
2. Coastal trading license
100% 50% Chartering Period:
> 30 & upto 90 days = 1/3 of crew
> 90 days = 1/2 of crew
NA NA Applicable as per DGS guidelines
Owned by Indian Entity *
Minimum Indian
Crew
DGS Approval
Right of First
Refusal To Indian
Owners
1. Trading license (General or
Coastal)
1. Coastal trading license
Finished Vehicle Logistics In India
• India produced ~ 3.77 million passenger & commercial vehicles during the year ending Mar’14 out of which ~ 17.7 % were exported.
• Finished vehicles logistics is predominantly through road carriers and very small portion through railways; none through Coastal RORO shipping.
97%
3%
0%
Road
Rail
Coastal RORO
Modal Share in Finished Vehicle Logistics in India
Pipavav
Chennai
Kolkata
Mumbai
Gujarat Cluster:
Pune Cluster:
Chennai Cluster:
Jamshedpur:
Gateway Port
Manufacturing Hub
Mundra
Prospects of Coastal Shipping in India
Mundra Port
Ennore Port
Sanand
Routes Ennore –Mundra
Port of Call Ennore Port Mundra Port
Port Rotation Ennore-Mundra-Ennore
Cargo Origin Chennai; Sanand (Return Load)
Cargo Destination North & West Gujarat; Tamil Nadu (Return load)
Business Case
Transportation Cost per Unit
By Roadways By Coastal RORO Difference
Trailer Type Freight Vessel (1550 RT)
22.5 Mtrs INR 13,920 INR 17,890 INR 3,970
18 Mtrs INR 16,800 INR 17,890 INR 1,090
By Coastal RORO By Roadways
Difference
1st Mile (incl. Consolidation Time)
Sea Leg Last Mile
(incl Distribution Time) Total In Transit
Time
3 days 6 days 3 days 12 days 7.5 days 4.5 days
Coastal RORO Challenges in India Infrastructure Bottlenecks
Lack of space for consolidation & distribution of finished vehicles at Port
Lack of dedicated berthing facility for Coastal Vessels & Berth congestion
Traffic congestion on roads in and around Port area restricting trailer / first-last mile movement of vehicles (e.g. Chennai & Mumbai port)
High Cost of Bunkering
High bunker prices due to taxes and duties for
Excise duty on bunker @ 14% VAT which varies state to state.
E.g. 24-26% VAT in Gujarat
High Crewing Cost due to Manning Scale
Manning scale for the coastal vessels are at par with the Foreign going vessels which increases the operational costs to Coastal operator.
Lack of Green Channel at Port for Customs formalities
Coastal cargo are also subjected to clearance procedures in line with EXIM cargos.
Cumbersome formalities adds documentation, cost and time to shippers and may also result in increase in overall transit time.
High Port User Charges: Wharfage
Wharfage charges for motor vehicles currently ranging from 0.18% to 0.5 % ad-valorem of Invoice value.
Wharfage charges are comparatively higher than other commodities.
Contribute ~ 16% to End-to-end cost of Coastal RORO shipping.
Coastal RORO Challenges in India (Cont…) Coastal RORO
End-to-End Cost Breakup
Commodity Rate Basis Cost Per Unit
Cars & Automobiles
(Having value of Rs 400000)
Machinery Items
(Having value of Rs 400000)
Coal & Coke 130Rs. per Tonne 130.00Rs.
Timber 15.18Rs. per CBM 15.18Rs.
Commodity Wise Comparison of Wharfage Rate in Ennore Port
0.34% Ad Valorem of Invoice value 1,360.00Rs.
0.13% Ad Valorem of Invoice value 520.00Rs.
Requisites for Viable Coastal RORO in India
• Reduction in Wharfage charges for Automobiles to the level of other commodities.
• Dedicated berth for coastal vessels, adequate space for consolidation & distribution of cargo in Port.
• Green channel implementation in Customs formalities for clearing Coastal Cargos.
• Fiscal incentives such as subsidized bunker for coastal vessels.
• Loading of domestic cargo along with export cargo to intermediate foreign port (e.g. Sri Lankan Ports)for better utilization of space in the vessel.
Thank You