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Tamil Research Institute<br />

RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR<br />

DEVELOPMENT OF COLACHEL PORT AT TAMILNADU<br />

WE to Indian route (without Cabotage): FINAL REPORT Colachel becomes<br />

competitive for Western & Southern coast ports<br />

Cabotage waived for Colachel<br />

TS Points<br />

Western Europe to Mundra Western Europe to Chennai Western Europe to Kolkata<br />

Feeder Shipping Cost<br />

Assumptions for analysis<br />

1. Assumes port costs parity with Colombo<br />

2. Assumes feeder rate parity with Colombo<br />

Liner Shipping Cost<br />

Colombo 46<br />

194<br />

240<br />

15<br />

194<br />

209<br />

40<br />

194<br />

234<br />

Singapore 93<br />

172 265<br />

53<br />

172<br />

225<br />

53<br />

172<br />

225<br />

Klang 88<br />

176 264<br />

48<br />

176<br />

223<br />

47<br />

176<br />

223<br />

Cochin 52<br />

204<br />

256<br />

31<br />

204<br />

235<br />

68<br />

204<br />

273<br />

JNPT 22<br />

231<br />

253<br />

Krishnapatnam<br />

57<br />

211<br />

Colachel 39<br />

195<br />

234<br />

268<br />

0 100 200 300<br />

Shipping Cost / TEU<br />

(in USD)<br />

Cost difference driven by 2 levers<br />

• Difference in size of the vessel in the routes<br />

• Difference in bunkering costs in TS hubs<br />

0<br />

16<br />

66<br />

211<br />

231<br />

211<br />

211<br />

195<br />

0 100 200 300<br />

Shipping Cost / TEU<br />

(in USD)<br />

Significant Cost<br />

disadvantage for Colachel<br />

296<br />

25<br />

42<br />

105<br />

211<br />

195<br />

231<br />

236<br />

237<br />

335<br />

0 100 200 300 400<br />

Cost competitive for<br />

Colachel<br />

Shipping Cost / TEU<br />

(in USD)<br />

Cost advantage for<br />

Colachel<br />

Colachel can have a competitive play for this route if Cabotage is relaxed effectively or<br />

Indian Shipping liners match cost efficiencies of International vessels<br />

Source: BCG Benchmarks on bunker consumption and vessel opex; Bunker costs for IFO 384 as of Apr 7, 2015 from "Ship & Bunker", BCG estimates<br />

US East Coast to India route (without Cabotage): Colachel<br />

becomes competitive Figure 64: for Comparison Western of shipping and Southern costs (1) coast ports<br />

Cabotage waived for Colachel<br />

Assumptions for analysis<br />

1. Assumes port costs parity with Colombo<br />

2. Assumes feeder rate parity with Colombo<br />

East Coast of America to Mundra East Coast of America to Chennai East Coast of America to Kolkata<br />

TS Points<br />

Feeder Shipping Cost Liner Shipping Cost<br />

Colombo 46<br />

222<br />

268<br />

15<br />

222<br />

237<br />

40<br />

222<br />

262<br />

Singapore 93<br />

198<br />

290<br />

53<br />

198<br />

251<br />

53<br />

198<br />

250<br />

Klang 88<br />

201<br />

289<br />

48<br />

201<br />

249<br />

47<br />

201<br />

249<br />

Cochin 52<br />

234<br />

285<br />

31<br />

234<br />

264<br />

68<br />

234<br />

302<br />

JNPT 22<br />

261<br />

284<br />

66<br />

261<br />

327<br />

105<br />

261<br />

366<br />

Krishnapatnam<br />

57<br />

239<br />

296<br />

57 239<br />

296<br />

57<br />

239<br />

296<br />

Colachel 39<br />

224<br />

263<br />

16<br />

224<br />

240<br />

42<br />

224<br />

266<br />

0 100 200 300<br />

Shipping Cost / TEU<br />

(in USD)<br />

Cost difference driven by 2 levers<br />

• Difference in size of the vessel in the routes<br />

• Difference in bunkering costs in TS hubs<br />

0 100 200 300 400<br />

Shipping Cost / TEU<br />

(in USD)<br />

Significant Cost<br />

disadvantage for Colachel<br />

0 100 200 300 400<br />

Cost competitive for<br />

Colachel<br />

Shipping Cost / TEU<br />

(in USD)<br />

Cost advantage for<br />

Colachel<br />

Colachel can have a competitive play for this route if Cabotage is relaxed effectively or<br />

Indian Shipping liners match cost efficiencies of International vessels<br />

Source: BCG Benchmarks on bunker consumption and vessel opex; Bunker costs for IFO 384 as of Apr 7, 2015 from "Ship & Bunker", BCG estimates<br />

Figure 65: Comparison of shipping costs (2)<br />

80<br />

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