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8/11/2019 Water Transports

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PORT

Indian shipping industry has over the years played a crucial role in the transport sectorof India's economy. Approximately 95% of the country's trade by volume and 70% byvalue is moved through maritime transport. India is among the 20 leading merchantfleets all over the world. The country has 12 major ports and 200 minor ports. Thetwelve major ports are Kolkata (including dock complex at Haldia), Paradip,Visakhapatnam, Chennai, Ennore and Tuticorin on the east coast and Cochin, NewMangalore, Mormugao, Jawaharlal Nehru at Nhava, Mumbai and Kandla on the westcoast.

Ports provide an interface between the ocean transport and land-based transport. Inthe initial years, the traffic was being handled mostly at major ports. However, over theyears, non-major ports have also witnessed growth in traffic.

Performance of Major Ports

Traffic growth: The major ports handled a total traffic of 530.39 million tonnes during2008-09,registering a growth of 2.1%.About 80 % of the total volume of traffic handledwas in the form of dry and liquid bulk, with the residual consisting of general cargo,including containerized cargo. There was an impressive growth of 11.05 % per annumin container traffic during the five years ending 2008-09.

Capacity addition: The annual aggregate cargo-handling capacity of major portsincreased from 532.07 million tonnes per annum in 2007-08 to 574.77 million tonnes

per annum in 2008-09. The average turnaround time decreased from 3.93 days to 3.87days.

Performance:The average output per ship berth-day improved from 10,071 tonnes in2007-08 to 10,473 tonnes in 2008-09. The pre-berthing waiting time at major ports onport account decreased from 11.40 hours in 2007-08 to 9.55 hours in 2008-09.

Port-wise handling capacity as well as Traffic Handled during the year 2008-09 is givenbelow:

(Million Tonnes)

Ports Traffic Handled

2007-08

Traffic Handled

2008-09

Kolkata 13.74 12.43

Haldia 43.54 41.62

Paradip 42.44 46.41

Vizag 64.60 63.99

Ennore 11.56 11.50

Chennai 57.15 57.49


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Tuticorin 21.48 22.01

Cochin 15.81 15.23

New Mangalore 36.02 36.69

Mormugao 35.13 41.68

Mumbai 57.04 51.88

JNPT 55.75 57.23

Kandla 64.89 72.23

Grand Total 519.15 530.39

Source:Ministry of Shipping,Government of India

National Maritime Development Programme

National Maritime Development Programme has been formulated keeping in view thefuture traffic projections. The objective of the Programme is to bring up the levels ofperformance in the maritime sector to international benchmarks. Out of the total 387schemes/ projects in major ports, shipping and IWT sector which have been identifiedunder the Programme. The total investment envisaged in the programme is Rs.100,339crores out of which Rs.55,804 crores is for Major Ports and Rs.44,535 crores is forShipping and IWT sectors. In the Port sector, a total of 276 projects have beenidentified under the programme for implementation by 2011-12. Out of these aboutRs.34,505 crores is expected from private sector, Rs.3,609 crores is expected to be

provided through budgetary support and Rs.13,772 crores is proposed to be financedthrough internal resources of the Major Ports and the balance from other sources. Theobjective is to upgrade and modernize the Port infrastructure in India and benchmarkits performance against global standards. In the Shipping sector, a total of 111 projectsinvolving total investment of Rs.44,535 crores over a period of 20 years have beenidentified for inclusion in the Programme. Out of this, Rs.13,775 crores are expected tobe through budgetary support,Rs.17,460 crores through internal and extra budgetaryresources and Rs.13,300 crores through private investment. The activities coveredunder the Programme include tonnage acquisition, maritime training, coastal shipping,

aids to navigation, shipbuilding and building up of IWT infrastructure.

Recent Initiatives

Mode Concession Agreement (MCA)

The Government has finalized a Model Concession Agreement (MCA) to ensureuniformity in the contractual agreements to be entered by the major ports with theselected bidders for the BOT projects to be developed through PPP mode. It will also

enable the prospective bidders to have prior knowledge of the contractual obligationsof both parties and,therefore, ensure transparency.

New Tariff Guideline


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For fixing tariffs, the Department of Shipping has formulated new tariff guidelines,Tariff Authority for Major Ports (TAMP) an autonomous body under the Department ofShipping, shall now follow a normative cost based approach for fixing tariffs. Thesetariffs will act as a ceiling and will be indexed to inflation and the private operators arefree to charge below these ceilings.

Rail Road Connectivity of Major Ports

The committee on infrastructure (CoI) headed by the Prime Minister has set up acommittee of secretaries (CoS) under the Chairmanship of Member Secretary (PlanningCommission) to review the rail road connectivity of major ports which recommendedthat each major port should preferably have a minimum of a four-lane road and doubleline rail connectivity and these should be established within a fixed time frame.

Ennore Port Ltd. (EPL)

Ennore Port Ltd. (EPL) has also signed concession agreement with selected bidders fordevelopment of an eight million tonnes per annum (MTPA) iron ore terminal on BOTbasis.The Government has approved the project for undertaking capital dredgingphase-I by EPL at an expenditure of US $ 18.41 million. EPL will bear the entireexpenditure for this capital dredging project for providing a depth of (-) 15 metrebelow CD for the new marine liquid, iron ore and coal terminals being developed onBOT basis. The physical progress upto the month of November 2008 was 80 per cent.

Foreign Direct Investment (FDI) Policy

Foreign direct investment upto 100 per cent under the automatic route is permitted forconstruction and maintenance of ports and harbours.

Policy Framework

Cruise Shipping Policy-2008

Objectives

To develop India as Destination as well as Source Market with state of artinfrastructure and appropriate marketing strategy To increase the number of cruise ship calls and passenger arrivals in a sustainable

manner To achieve a target of at least 10 lakh cruise passengers landings per year by 2010. To strengthen inter-sectoral linkages, whereby cruise liners source the requisitesupplies of goods and services from local Indian suppliers To consolidate existing ports of call, explore other ports and suitable anchoring siteson the Indian coast with a view to making additional cruise ship calls to other areas of

the country. To operationalise appropriate promotional programmes that would effectively

convert cruise passengers to long stay visitors. To maximize the benefits from the cruise industry consistent with protection of


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environment. To ensure that the cruise shipping industry in India becomes internationally

competitive with other destinations and contributes to the economy in terms ofgeneration of foreign exchange, income, employment and business opportunities. To attract the right segment of foreign tourists to cruise shipping in India To popularize cruise shipping with Indian tourists.

To enhance absorptive capacity of the country by developing existing and new visitorattractions, including event attractions in line with Indias efforts to improve thetourism product.

Full text of the policy

The Shipping Trade Practices Bill, 2008

A Bill to provide for bringing transparency in trade practices adopted by maritimetransport logistics service providers in respect of services rendered by them for

arranging transportation of containerized cargo; registration of such service providersand their obligations; mode and manner of fixing tariff by the service providers; EXIM(Export Import) and for matters connected therewith or incidental thereto.

Full text of the Bill

Draft Policy(Modified) for Maritime Sector

The importance of maritime infrastructure in facilitating international trade is well

recognized. It is observed that about 95% by volume and 70% by value of the countrystrade is carried on through maritime transport. Having regard to the current level ofIndias share in global merchandise trade, the strengthening of the maritime

infrastructure would have a favorable impact on the countrys trade front and also on

economic growth. The countrys long coastline of around 7517 kms spread on the

western and eastern shelves of the mainland and also along the Islands is a naturalresource capable of being harnessed for the countrys trade and tourism development.

The maritime policy has been formulated to address the issues for strengthening thesector through synergies of initiatives of the Centre and the States and encourage theflow of investments into the sector - for up gradation of infrastructure and formodernization of facilities in respect of maritime ports, shipping and IWT sectors. Inaddition, the policy would help assure the status and efficiency of fixed and mobilemaritime infrastructure and as a concomitant, ensure that investments in humancapital optimize the countrys factor and resource endowments. As part of this

comprehensive strategy towards building a vibrant and responsive maritime sector,reliable contractual procedures with built in safeguards would also be positioned,wherever required, to encourage competition.

The policy proposes to adopt a holistic approach for the development of port sectorcovering aspects of integrated development, connectivity, organizational andinstitutional arrangements, etc.
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Objectives of the policy

The Policy for the maritime sector would emphasize the importance of cost effectivemovement of cargoes, transparency of decisions on objective considerations in mattersof investment decisions, the efficiency of operations of the infrastructure as well as therelevance of core competent maritime personnel. The programmes under the Policywould address the following: -

Modernizing the existing ports and upgrading their facilities in order to bringthem on par with the leading ports of the world.

Developing new ports in order to fully utilize the vast coastline of the country andthe available draft for deriving the maximum economic advantage.

Promoting hinterland connectivity to ensure least-distance access of thecountrys cargo to the ports and also offer choice of ports in the region and

terminals inside the ports to Trade. Fostering Port specialization and inter-port complementarity for overall

optimization of port facilities and the efficiency at the Ports. Facilitating the increased flow of private investment, both domestic and foreign,

and at the same time ensure a competitive environment that would precludeprospects of emergence of monopolies.

Providing for institutional safeguards for the port infrastructure provider (publicauthorities/private sector be it domestic or foreign/joint ventures) regardinginvestments and ensuring compliance of service standards to theusers.

Promoting multimodal transport in the interest of time and cost efficiency. Facilitating the acquisition of Indian tonnage for securing a significant share for

the country in world tonnage and for increasing the share of Indian bottoms inthe carriage of the countrys overseas traffic through cargo support to Indian flag

vessels. Promoting and strengthening shipbuilding, ship-repair and ship-breaking

activities including promotion of indigenous ship design and research.

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