Shipra SharmaDirector

Ministry of ShippingIndia

Overview of Indian Ports Challenges Hinterland connectivity Present Policy framework

Sagarmala Projects undertaken Impact

To provide a well performing, efficient,environmentally sustainable and robustseaport system, shipping and shipbuildingindustry and network of coastal and InlandWaterways in the country

Maritime Transport is a critical infrastructure for thesocio‐economic development of a country.

Ministry is responsible for the formulation ofpolicies and programmes of Port and Shippingsectors and their implementation.

Shipping and Port sectors include Shipping,Shipbuilding and Ship‐repair, Major Ports, NationalWaterways, and Inland Water Transport.

Indian Coast Line : 7,517 km.

Total Ports : 212

Major Ports : 12

Non‐Major Ports :200

Ports handled around 95% of the country’s EXIM trade interms of volume & 70% by value

6 Major Ports on the East Coast viz.

Kolkata, Paradip, Visakhapatnam, Kamarajar, Chennai, V.O.Chidambaranar

6 Major Ports on the West Coast viz.

Cochin, New Mangalore, Mormugao, Mumbai, JNPT and Kandla.

Handle about 57% of total seaborne traffic

Capacity as on 31‐03‐2016 : 965.36 Million Tonnes

Traffic as on 2015‐16 : 606.36 Million Tonnes

Total No. of Berths : 239

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Kandla

Mumbai

JNPT

Mormugao

N. Mangalore

Cochin

V.O. Chidambarnar

Chennai

Visakhapatnam

Paradip

Kolkata

Kamarajar

Krishnapatnam

Dhamra

Jaigad

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Andaman & Nocobar Islands

Laksha-Dwwep

PORTS OF INDIA

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Seventh Largest country

Total Area- 3,287,263 sq metres North to South- 3,214 Kms East to West- 2,933 kms

Operational/Logistical challenges Hinterland connectivity Avg distance b/w manufacturing hinterlands & ports is

700-800Kms Cargo Handling cost Fuel costs Modal Mix Rail & Road a/c for 94% of freight transport (Road -80%, Rail-20% share) Waterways share-6%

Manpower issues

Infrastructural issues Capacity utilisation (67%)

Draft in Ports Productivity (cargo handling capacity)Equipments to handle Cargo/Asset productivityMechanisation /Augmentation of manual processesLogistical efficiencies(Hinterland connectivity)

Evacuation from vessels to trucks/railway wagon

Regulatory agencies Simplification of Customs Procedures Testing by agencies-FSSAI, Textiles, Plant/Animal Quarantine

Modes Railways Roadways Inland waterways Pipelines

Proximity/linkages to Ports key for competitive industry

Increase share of Railways to 25% from present 18% Rationalisation of railway fare Development of DFCs spur lines on DFCs for last-mile connectivity

Additional ICDs

Pipelines Predominantly for liquid cargo Cost 10-15% that of rail New pipeline projects identified across Ports

Huge Potential 14,500 Kms of navigable & potentially navigable

waterway Currently 6% to logistics Identification of new water ways

Currently 5 National Waterways Augmentation of existing waterways

Depth enhancement for larger vessels Infrastructure development

fairways development through dredging ,construction of terminals and jetties with cargo handling equipments

navigational aids in the channel

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Cost savings:

1 HP moves 150 kg on road, 500 kg on rail & 4000 kg on water

1 litre of fuel moves 24 tonne/km on road, 85 on rail & 105 on IWT

Cost of developing as well as maintenance cost of waterways much lower thanrail & road

Environment friendliness:

Least fuel consumption per tonne- km

CO2 emission is 50% that of a truck

Negligible land requirement

Safe mode for hazardous cargo

Supplementary mode:

Reduces pressure on road and rail , frees rail rakes

Reduction in congestion and accidents on road

Development of New Ports

Capacity expansion at existing ports Mechanization of existing terminals Building new terminals

Trading across borders Ease of doing business initiatives

Development of Pilot CEZs identified under Sagarmala

Development of Multi-modal logistics hub

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Study by Ministry:- Benchmarking of efficiency & productivity to

international standards covered marine operations, jetty &vessel operations ,Yard

performance, Labor productivity, Cargo storage (containers & dry bulk ), rake operations (loading/unloading of rakes), maintenance (Equipment uptime and breakdowns), Gate-In and Gate-out operations, safety, customs and IT penetration

a clear roadmap for improvement for each port laid out covering changes in -core business processes, equipment, organization structure, people skills, information technology and infrastructure

Foreign Direct Investment upto 100% is permitted in Port Sector

Emphasis on PPPStandardisation of procedures/documents

Coordination groups between multiple agencies for faster processing of proposals

Min.of Shipping

MoEF

Min.ofCommerce/Revenue/Custo

ms

Min.ofFinance

MoRTH

State Governments

Min.ofRailways

Vision of the Sagarmala Programme is to reduce logistics cost and time for the movement of EXIM and domestic cargo and development of port-proximate future industrial capacities near the coast

National Perspective Plan comprehensive development of India’s coastline and

maritime sector more than 400 projects, at an estimated

infrastructure investment of more than Rs. 4 Lac Crore/$58974 Millions identified port modernization/capacity expansion & new port

development, port connectivity enhancement port-linked industrialization and coastal community

development

Port Connectivity Enhancement Indian Port Rail Corporation Limited (IPRCL) has

taken up works across major ports Road connectivity projects have been identified

under Sagarmala Port-linked Industrialization

CEZs have been envisaged to tap synergies with the planned industrial corridors (Eg- Vizag Chennai Industrial Corridor and Delhi Mumbai Industrial Corridor)

Energy clusters Power clusters, refinery/petrochemical clusters

development near Ports Bulk clusters

Setting up of steel ,cement manufacturing plants near Ports

Discrete Manufacturing Food processing, electronics,leather products,

furniture,apparels

Coastal Community Development Community Development Fund is envisaged Skill development/re-skilling/up-skilling in port related /non-

port related fields To support the development of fishermen community, Ministry

is part-funding select fishing harbour projects under Sagarmala development of deep sea fishing vessels and fish processing

centres in convergence with DADF

PPP PolicyProjects under operation: 34 (investment: Rs. 18273 Cr/$2694 Millions,capacity addition: 247 MTPA)Projects under implementation: 28 (investment: Rs. 30776Cr/$4537Millions, capacity addition: 298 MTPA)Overall Projects for award in 2016-17: 33 (investment: Rs. 9845 Cr/$1451Millions, capacity addition:102 MTPA)Projects for completion in 2016-17: 30 (investment: Rs. 4815Cr/$709Millions, capacity addition:100 MTPA)Master Plan for each Major Port prepared under Sagarmala. 142 projects(investment: Rs. 91,434 Cr/$13480 Millions) for capacity enhancementidentified for implementation.

New Ports6 sites identified for development of new ports under Sagarmala

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Port Connectivity projects identified under Sagarmala

Implementation of 25 last mile projects rail works taken up by IPRCL by FY 18-19(investment: Rs. 4862 crs/$716Millions)

Implementation of 21 rail projects (investment: Rs. 28000 crs/$4128Millions)

Implementation of 79 road projects

Implementation of 7 Multi-Modal Logistics Parks

Promotion of coastal shipping by identification of coastal shipping berth in each majorport and incentivizing in non-major ports

Development of 37 National Waterways through IWAI in Phase I

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The projects expected to:- mobilize more than Rs. 4 Lac Cr/$58974

Millions of infrastructure investment, double the share of domestic waterways

(inland & coastal) in the modal mix, generate logistic cost savings of Rs. 35,000-

40,000 Cr/$5160 Millions-$5897 Millions per annum

boost merchandize exports enable creation of new jobs

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