1. WELCOME TO THE PRESENTATION ON COASTAL SHIPPING
PRESENTATION ON COASTAL SHIPPING – ‘Can it be an useful alternative for moving steel?’
By RINL
WELCOME TO THE PRESENTATION ON COASTAL SHIPPING
By RINL

2. Visakhapatnam Steel Plant
7.3 Mtpa shore based Integrated Steel Plant

3. RINL – Corporate Structure
Rashtriya Ispat Nigam Limited
Operating Units
Visakhapatnam Steel Plant (7.3 Mtpa)
Units on the anvil
Forged Wheel Plant
(Rae Bareli)- UP
RINL – PG
Transmission Line Towers Pvt Ltd.
Madharam mines
Dolomite
Jaggayyapet mines
Limestone
Garbham
Manganese Mines
Subsidiary Company
(51% ownership)
Eastern Investment Limited
OMDC
BSLC

4. Visakhapatnam Steel Plant
Only shore based Integrated Steel Plant in PSU 4 4

5. Vision
To be the most efficient steel maker, having the largest single location shore based steel plant in the country
: 6.3 MT
Expansion in phases MT
: 7.3 MT

6. Marketing Network Chandigarh Faridabad Patna Bhubaneswar Delhi
Ludhiana
Dehradun
Ghaziabad
Jaipur
Agra
Kanpur
Kolkata
Visakhapatnam
Hyderabad
Chennai
Coimbatore
Kochi
Bengaluru
Mumbai
Pune
Nagpur
Indore
Ahmedabad
North
South
East
West
Andhra
Plant
Regional offices
Branch offices
Vijayawada

7. Market Share among Main Producers (in %) – Bars & Rods (incl
Market Share among Main Producers (in %) – Bars & Rods (incl. TMT Rebars)
With realization of rated capacities of expansion facilities & completion of modernization projects by , the market share of RINL is poised to improve
Source: JPC

8. RINL - Profile Second largest Government Steel Company in India
Expansion to 7.3 Mtpa completed recently - mostly funded through internal accruals
Largest player of Bars & Rods in India with 9.5% market share

9. Coastal Shipping Introduction and Need
Logistics & Distribution provides immense potential towards cost control.
The transport sector, including Railways and Road has been exposed to capacity constraints and are not able to fulfil the demand.
Coastal shipping saves energy, is environmentally friendly, less pollution.
Alternate mode of transport and reduces pressure on road & rail networks.
Utilizes the long coast line in a cost effective way.
Bulk despatches.

10. Coastal Shipping Introduction and Need
GoI initiative to Sagarmala Project and giving impetus to coastal movement.
Indian peninsula has a long coastline of 7,500 Kms.
12 major and 168 minor/intermediate ports.
Shipping is an important transport sector of national activities in all maritime countries.
Coastal Shipping, as a complimentary mode of transport is not only an economic necessity but also a valuable asset in times of emergency.

11. Need For Coastal Transportation in RINL Perspective
Qty in Million MT
Year
Production
Qty
No. of rakes
Rail Qty.
Road Qty. (incl. Ocean export)
Coastal
Total Despatches
3.84
952
2.46 
1.31 
-- 
3.77
4.50
1,102
2.87 
 1.57
0.06
(Projected)
5.80
1,200
3.12
1.96
0.40
5.48

12. Need For Coastal Transportation in RINL Perspective
Destination
Freight by Rail (Rs. PMT)
Rate by Coastal shipment (Rs. PMT)
Savings (Rs. PMT)
Expected Volume (MT ‘000)
Expected Total savings (Rs. In Cr)
Ahmedabad
4,195
4,067
128
120 
1.54 
Mumbai
3,073
3,028
45 
 60
0.27
Kochi
3,401
3,322 79 60
0.47

13. Need For Coastal Transportation in RINL Perspective
Expected dispatches with existing rail/road/coastal shipping is around Mtpa.
As there is no further scope for increase the despatches by Rail, the balance 0.32 mT is to be dispatched either by road or coastal shipping only.
Likely enhanced savings through coastal shipping with increased volumes and stabilization.

14. Need For Coastal Transportation in RINL Perspective
RINL is a shore based plant with two major ports , VPT & GPL nearby.
Alternate mode of transportation apart from rail & road.
Enhanced production capacity from 3.5 Mtpa to 7.3 Mtpa .
Reduces pressure on rail & road networks.
Ensuring timely evacuation from Mills in reducing the shelf life and distribution costs.
A responsive measure to GoI initiative programme of Sagarmala.
To prioritize limited available rakes to land locked areas.

15. Present Scenario of Coastal Shipping at RINL

16. Present Scenario of Coastal Shipping at RINL
FY (Oct’17 to Mar’2018)
Initial steps are made by RINL in the direction of Coastal Shipping.
Trial Contract was awarded for dispatching cargo to Ahmedabad, Mumbai and Kochi in July’2017.
Flagging off Ceremony by Hon. Steel Minister in October’2017.
Completed Five shipments.
Total Cargo dispatched is 56,468MT (Ahmedabad: 20,262, Mumbai: 21,055 and Kochi: 15,150)

18. Present Scenario of Coastal Shipping at RINL
FY (Apr’18 to Jun’2018)
One Shipment completed and two Shipments are under progress.
Total Cargo dispatched is 16,500 MT (Ahmedabad: 10,000 MT, Mumbai: 6,500 MT) and 25,000 MT is in pipeline.

19. Difficulties and Deterrents in Coastal Shipping being Faced by RINL
Berthing delays at Load Port and Discharge port leading to high
transit time.
High port charges .
High detention, storage and demurrage charges at ports
Private ports are also required to extend support for coastal shipment

20. Suggestions for Improvement
More number of participants
Increased number of Vessels
Smaller Parcel sizes.
Lower port charges.
Berth preferences with good access
Dedicated coastal zone

21. Future plans for Coastal Shipping at RINL
Planned to transport around 20,000 MT per month during to the destinations Ahmedabad, Kochi & Mumbai.
New destinations Kolkata, Chennai, Coimbatore, Bhubaneswar & Patna are identified. (Around 10,000 MT).
Kandla port is identified for dispatching additional volumes to other Branch sales offices located in Northern Region (around 20,000 MT).
Despatches to new destinations are expected to start by Sept’18.

22. Expected Advantages from Coastal Shipping at RINL
Timely evacuation of material from manufacturing plant and make it available at respective stockyards.
With increase in volumes through Coastal shipping, the rates quoted by the vendors can be optimized resulting in savings to RINL.
Similar facility can be extended to customers for dispatching additional volumes through direct dispatch (in addition to rail & road)

23. Growth Enablers for Coastal Shipping
Priority for berthing of coastal shipping vessels at ports.
Concessional Tariff for demurrage & wharfage.
Earmarking of dedicated storage area at ports for handling of material.
Enable multiple stoppages en-route (similar to Railways)

24. Coastal Shipping is an alternative for moving steel
Yes !
Coastal Shipping is an alternative for moving steel

25. Thank You