shipping industry ppt
TRANSCRIPT
CHALLENGES IN SHIPPING AND PORT INDUSTRY
PRESENTED BY
SANDEEP K SINGH 011195
DEEPAK CHAUDHARY 011193
OVERVIEW Around 90% of world trade is carried by the
international shipping industry.
Without shipping the import and export of goods on the scale necessary for the modern world would not be possible.
HOW SHIPPING IS REGULATED INTERNATIONALLY
Merchant shipping is one of the most heavily regulated industries and was amongst the first to adopt widely implemented international safety standards.
The shipping industry is principally regulated by the International Maritime Organization (IMO),
INDIAN SHIPPING INDUSTRY
India presently has 938 ships totaling to approx.9.5 million GT
Its Coastline is dotted with 12 Major ports and 187 intermediary ports
Its fleet caters to only 13% of its overseas trade. This is very low, a fact which the Govt. has realized.
42% of Indian fleet is over 20years age and needs replacement
DIFFERENT TYPES OF SHIPS IN THE WORLD FLEET
Different sectors as a percentage of total no of ships in the world fleet 2012
WORLD ROUTE
SWOT ANALYSIS
Access to two major shipping routes.
Fleet expansion by major domestic. shipping companies
Large number of Indian seafarers.
Under investment in Indian maritime sector.
Inefficient judiciary system slow development of new port infrastructure
High level of bureaucracy preventing the government from funding the new projects.
Strengths Weaknesses
Indian shipping companies have acquisitions with foreign companies.
Major container terminal being developed at the port of Chennai and Mumbai.
Major development taking place in srilanka’s port.
Indian ports have suffered from congestion, slowing country’s growth trajectory.
Opportunities Threats
CHALLENGES AND STRATEGY
Tax Regime- Government of India, the shipping industry is facing significant tax burden, though the tonnage tax has been introduced.
Multiplicity of Regulations- International Maritime Organisation has a set of rules to ensure safe, secure and efficient shipping, besides the labour standards required for seafarers worldwide.
. Manpower Shortage-The only way the
shortage of seafarers can be managed is by creating a workplace environment that is attractive to applicants, and corporate values.
High Port Calling Costs- High port charges, like port dues, berth hire, pilotage and cargo-handling charges, in India are also affecting the Indian shipping industry.
STRATEGIES
Increasing investment in shipping industry-
Around 50% of operating fleets in India has an average age of over 20 years. This makes Indian fleets less competitive, as mostly younger vessels, which are below 15 years old.
Strengthening shipbuilding industry-An expanding shipbuilding industry would require a large trained work force, covering all areas in the techno-economic spectrum of shipbuilding.
Developing adequate container freight stations
Creation of multimodal logistics parks-Another trend has been the establishment of multi-modal logistics parks. Each logistics park will have a container terminal for both domestic and international operations.
Tapping LNG business- If transportation of LNG is taken up by the shipping industry, it would provide significant volume of business for the shipping industry.
Bilateral shipping / cargo reservation schemes.
PORT INDUSTRY CHALLENGES
Ports provide an interface between the ocean transport and land-based transport. They represent a promising sector for India, given the country’s 7517 km long coastline.
West Coast of India East Coast of India
Gujarat (41 ports) Tamil Nadu (18 Ports)
Maharashtra (55 Ports) Pondicherry (1 port)
Goa (6 ports) Andhra Pradesh (13 Ports)
Daman & Diu (2 ports) Orissa (3 ports)
Karnataka (11 ports) West Bengal (2 port)
Kerala (14 ports) Andaman & NicobarIslands (24 ports)
Lakshadweep Islands
Total 139 (ports) Total 61 (ports)
PORT CHALLENGES
Limited draft of the Indian ports Old infrastructure Inefficient cargo handling. Hinterland connectivity Lack of skilled manpower
INDIA'S PORT SECTOR TRAFFIC GROWTH (IN MN. TONS)
SWOT ANALYSIS
High growth Financial means
available Most ports located
at strategic locations
Old infrastructure Limited water depth Old and inefficient
cargo handling systems Poor hinterland
connections
Strengths Weaknesses
Invest in infrastructure,
lower costs for port users
Invest in total transport chain
Private ports Minor ports Bureaucracy
Opportunities Threats