Presented in an Infrastructure conference (http://infrastructure.ipfedge.com/about-the-event/) organized by Bharat Chambers of Commerce on 4th February 2011 at Taj Bengal, Kolkata, Salva Market Analytics, consulting arm of Salva Resources(http://salvaresources.com/india) has taken an alternative view point on Indian port growth story and shared some of its concern. Complete video of the presentation will be podcasted shortly. For any clarification or the copy of the presentation, please feel free to write to spal@salvaresources.com or contact at +91 33 4004 4143

1. Indian Port Growth Story: Other Side of the Coin Satya Pal Business Analyst- Infrastructure spal@salvaresources.com 04.02.2011 “Infrastructure: The Global Growth Driver” Hotel Taj Bengal, Kolkata, India

2. 1 Introducing Salva Resources Salva Resources is a global provider of key technical and commercial services to the mining industry. Mining Consultancy Salva Market Analytics Exploration Management Custom Consulting Resource Modeling Outlook Series 2011 Data Products Mine Planning Equipment Supply Salva Report Coal Marketing India Unlocked Due Diligence Data Base Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

3. Our Locations International Head Office Indonesian Office Level 11, 82 Eagle Street Level 3, BhumyhamcaSekawan Building Brisbane, QLD 4000 Raya Cilandak KKO Street Australia Garden Centre Cilandak Commercial Estate Ph: +61 7 (0) 3211 9911 Jakarta, Indonesia info@salvaresources.com Ph: +62 (81) 5164 8205 info@salvaresource.com Indian Head Office 6th Floor, DN24 Matrix Tower, Sector V Salt Lake City Kolkata, 700 091 India Ph: +91 (0) 33 6522 1030 info@salvaresources.com 2 Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

4. 3 Our Projects Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

5. Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or the reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. The map of India shown is for illustrative purposes only and does not confirm to the geographical boundaries of the country. This presentation should not be relied upon as a recommendation or forecast by Salva Resources. 4 Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

6. Agenda Current state of play Road ahead Concerns and suggestions 5 Indian Port Growth Story: Other Side of the Coin Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

7. Current State of Play 6 4.28% 1.98% Source: Planning Commission, Government of India Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India There has been mismatch in planning and execution especially from central sector

8. Current State of Play 7 Sagar Island Project Chennai Mega Container Terminal Vizhinjam Port Project delay and overcapacity are the main reason for these shortfalls in investment Source: Salva Research Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

9. 8 Current State of Play Mundra Kandla Magdalla Haldia Pipavav Hazira Dhamra Paradip Mumbai Jaigad Vishakhapatnam Gangavaram Kakinada Mormugao Karwar Belekeri Krishnapatnam New Mangalore Ennore Chennai Karaikal Cochin Tuticorin Operational ports Demand for both Coking as well as Thermal coal grow in medium to long term Indian bulk ports: 2010 Source: Salva Research Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

10. 9 Road Ahead Mundra Kandla Dahej Salaya Magdalla Talsara Haldia Kirthania Sagar Island Hazira Pipavav Dhamra Valsad Paradip Dighi Astaranga Mumbai Gopalpur Jaigad Vishakhapatnam Gangavaram Kakinada Operational ports Mormugao Machilipatnam Karwar Upcoming ports Belekeri Krishnapatnam New Mangalore Ennore Cement Plants Chennai Karaikal Steel Plants Cochin Caddulur Tuticorin Power Plants Demand for different coal will have regional bias Indian bulk ports: 2020 Source: Salva Research Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

11. Road Ahead Mega/ Ultra Mega Power Projects and major Steel plants are planning captive ports 10 Or they will have a long term cargo agreement with some port Source: Salva Research Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India Development of ports in India will be driven by end user industry and not vice versa

12. Road Ahead 11 State should encourage investors and the central government should facilitate early execution of projects, in port deficit states Source: Salva Research Orissa port projects Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

13. 12 Road Ahead Mumbai Vishakhapatnam Jaigad North Goa Durg Gangavaram Kakinada Machilipatnam Mormugao Nijampatnam South Goa Karwar Belekeri Krishnapatnam New Mangalore Bellary Guntur Ennore Chennai Cuddalore Chitaurgarh Karaikal Nellore Cochin Tuticorin Ongole Chikmagalooru Iron ore deposits More detailed analysis is required while assessing the viability of a port, in a port surplus region Iron ore deposits and relevant ports in India Source: Salva Research Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India

14. Concerns Potential private port projects are suffering from undue delay In medium term Indian port will experience regional over capacity Central government, States and Industrialists are not on a common platform Suggestions Centre and state government needs to work more closely for the common goal. State should facilitate and let the market prevail Rather than adding a new terminal in major ports, central government should emphasize on increasing efficiency 13 Concerns and Suggestions Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India We should not forget that our conservative spending behavior was one of the reasons why we were not badly affected by Global Financial Crisis

15. 14 Thank You! Infrastructure: The Global Growth Driver 3-4 February 2011; Hotel Taj Bengal, Kolkata, India