PORTS AND SHIPPING
- Expand all
- 118 projects involving investment of USD 7.73 billion have been approved in last four years.
- India has 12 major ports and 64 minor ports handling Export Import cargo.
- Indian ports handled 1605 million metric tonnes of cargo in 2015-2016
- USD 2.69 billion invested in last three years in Ports & Shipping sector.
REASONS TO INVEST
- Projected cargo traffic to be handled by Indian ports by 2021-22 is expected to be 1695 million metric tonnes as per the report of the National Transport Development Policy Committee (an increase of 643 million metric tonnes from 2014-15)
- Total 2422 million metric tonnes of cargo handling capacity would be required in Indian Ports by 2021-22.
- For this, additional cargo handling capacity of 901 million metric tonnes is required to be created in Indian Port in the next 6 to 7 years.
- Ports Project involving investment of over USD 10 billion identified for award during the next five years.
- Coastal Economic Zones (CEZs) are being developed under "Sagarmala initiative" in close proximity to several ports comprising coal-based plants, steel plants & oil refineries.
- Over 7500 kilometres of coastline with 12 major and about 200 minor and intermediate ports.
- 90% of the country's trade by volume and 70% by value is moved through maritime transport.
- Cargo traffic achieved CAGR of 4.4% during 2009-10 to 2014-15.
- Cargo handled at ports in 2014-15: Dry bulk (34% iron ore, coal, fertilizer. food grains); liquid bulk (33% petrol, oil and lubricants); break bulk (17%) and container (16%).
- 12 major ports in India handle approximately 57% of total Cargo traffic.
- An unprecedented increase in cargo-handling capacity of Major Ports - 965.36 million Metric Tonnes in March, 2016 from 575 million tonnes in 2009.
- Increase trade activity and private participation in port infrastructure development.
- Rising cargo traffic and increase in the number of minor and intermediate ports.
- Existing ports are investing on improving their draft depth.
- Focus on the development of terminals that deal with a particular type of cargo, for eg: LNG (Liquified Natural Gas).
- To attract investment for the growth of this sector, the Government has allowed 100% Foreign Direct Investment (FDI) in the shipping sector.
- 100% FDI is allowed under the automatic route for projects related to the construction and maintenance of ports and harbours.
- Major ports are under the jurisdiction of the Government of India and are governed by the Major Port Trust Act, 1963 (except Ennore Port which is administered under the Companies Act, 2013)
- Non-major ports are under the jurisdiction of the respective state governments maritime boards.
- A perspective plan of the government defines priority areas of investment in the Indian maritime sector. These include:
- Development of two major ports as well as two port hubs.
- Plans to implement full mechanisation of cargo handling and movement at ports.
KEY PROVISIONS IN BUDGET 2015-16 :
- Allocation of USD 1.79 billion for the development of the Outer Harbour Project in Tuticorin for Phase I.
- A Ganges-based project named ‘Jal Marg Vikas’ will be undertaken between Allahabad and Haldia. This project is to be completed over a period of six years at an estimated cost of USD 646.15 million.
- Exemptions under the Income Tax Act for Infrastructure Development, under Section 80IA.
- Port development – the opportunity to serve the spill demand from major ports.
- Port support services – operation and maintenance services such as pilotage, dredging, harbouring and provision of marine assets such as barges and dredgers.
- Ship repair facilities in ports – demand for ship repair services will increase, providing opportunities to build new dry docks and set up ancillary repair facilities.
- AP Moller Maersk (Denmark)
- PSA Singapore (Singapore)
- Dubai Ports World (UAE)
- Jan Del Nul NV (Belgium)
- Hyundai Engineering and Construction Company Limited (South Korea)
- Royal Boskalis Westminister NV (Netherlands)