Full steam ahead for ship­ping

New projects, FDI and an in­crease in cargo ca­pac­ity point to­ward good tid­ings for the ship­ping in­dus­try. Pub­licpri­vate part­ner­ships will be a ma­jor con­trib­u­tor to the de­vel­op­ments.

Cargo Talk - - Front Page -

With 13 ma­jor ports and about 200 non-ma­jor ports, In­dia cur­rently ranks 16th among the mar­itime coun­tries. Han­dling over 90% of for­eign trade, the ports reg­is­tered cargo traf­fic of 911.5 mil­lion met­ric tonnes (MT) in 2012. Dur­ing April– De­cem­ber 2013, In­dian ma­jor ports han­dled 413.01 MMT of cargo. These num­bers are ex­pected to reach 1,758 MMT by 2017.

Key ini­tia­tives and in­vest­ments by the GoI

The govern­ment has al­lowed for­eign di­rect in­vest­ment (FDI) of up to 100 per cent un­der the au­to­matic route for port devel­op­ment projects. Ac­cord­ing to the De­part­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP), Min­istry of Com­merce and In­dus­try, FDI worth of US$ 1,635.40 mil­lion was made to­wards the In­dian ports be­tween April 2000 and Jan­uary 2014. Five new projects, with an in­vest­ment of over 17,630 crore (US$ 2.93 bil­lion) have been ap­proved by the Cabi­net Com­mit­tee on Eco­nomic Af­fairs (CCEA) to in­crease the ca­pac­ity of ma­jor ports. • Mar­itime Agenda 2010–2020 has been ini­ti­ated to out­line the de­vel­op­men­tal frame­work for the port sec­tor and to sug­gest pol­icy-re­lated ini­tia­tives to im­prove op­er­at­ing ef­fi­ciency and com­pet­i­tive­ness. It aims to reach a ca­pac­ity of over 3,130 MT by 2020, largely through pri­vate sec­tor par­tic­i­pa­tion. The ca­pac­ity at the ports is tar­geted to in­crease to 2,493.10 mil­lion tonnes per an­num (MTPA) by the end of the 12th Five Year Plan.

The Fu­ture

Pri­vate ports will be pre­sented with an op­por­tu­nity to serve the spilloff de­mand from ma­jor ports as an af­ter-ef­fect of grow­ing im­ports and con­tainer­i­sa­tion. A ma­jor chunk of the tar­get ca­pac­ity set by the Mar­itime Agenda 2010– 2020 is ex­pected to be cre­ated at non-ma­jor ports.

The de­mand for ship re­pair ser­vices will in­crease ow­ing to the in­crease in num­ber of ves­sels vis­it­ing the ports.

In its 12th Five Year Plan, the Plan­ning Com­mis­sion of In­dia ex­pects a to­tal in­vest­ment of 180,626 crore (US$ 30.01 bil­lion) in the ports sec­tor.

The in­creas­ing in­vest­ments and ris­ing cargo traf­fic point to­ward a healthy fu­ture for the In­dian port sec­tor. The pro­vi­sion for PPP will aim to bring about bal­anced strate­gies be­tween the Govern­ment and the pri­vate play­ers for the devel­op­ment of port op­er­a­tions and tech­nolo­gies.

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