Vision of the Ministry of Shipping A Vibrant Economy - Huge market with a billion plus population and impressive GDP growth.

Ports play a vital role in overall economic development.

About 95% by volume and 70% by value of the country’s international trade is through maritime transport.

Aim is to navigate and steer the Indian maritime sector realistically into the premier maritime nations.

PORT SECTOR – Present Status MAJOR PORTS Major Ports are under the administrative control of Central Government.

6 Ports on East and 6 Ports on West Coast Handle about 58% of total seaborne traffic All Major Ports are International Ship and Port Facility Security Code (ISPS) compliant Capacity as on 31-03-2013 : 750.31 Million Tonnes Traffic handled during 2012-13 : 545.68 Million Tonnes

PORT SECTOR – Present Status NON-MAJOR PORTS Non-Major Ports are under the Maritime State Governments Capacity as on 31-03-2012 : 630 Million Tonnes Traffic handled during 2012-13 : 389.20 Million Tonnes No of Notified Ports : 176 35 Ports are International Ship and Port Facility Security Code (ISPS) compliant – handling EXIM Trade

Capacity Augmentation and Mechanization – 2012-13 Projects No. Cost (Rs. in Cr) Capacity in MTPA PPP Projects Non-PPP Projects

13 13

Captive Projects (PSUs-No investment from Ports) TOTAL

6 32 2274.77

582.68

3908.18

6765.63

43.18 35.47

58.10

136.75

Shipping sector in India

• Indian flag shipping tonnage has been growing steadily, over the years and it is about 10.45 million GT, now, with 1,158 ships, both for foreign voyages and coastal operations, under its flag.

• India ranks 16 th globally, by dead weight tonnage (DWT) in world shipping fleet and accounts for about 1.5% of the total global DWT.

Category-wise Indian Overseas Tonnage as on 31-12-2012 TYPE OF VESSELS Dry Cargo Liner Cellular Container Dry Cargo Bulk Carrier Ore Oil Bulk Carrier Oil Tanker (Crude Carrier) Oil Tankers (PC) Passenger-Cum-Cargo Vessels Acid Carrier LPG Carrier Supply Vessel RO-RO Container Vessel Dredger Tug GRAND TOTAL OVERSEAS No. of Vessels 22 17 100 1 60 49 4 2 9 50 4 5 27 350 G.T.

285455 228591 3086423 28029 3228335 1897556 19659 32747 278330 146579 54019 21182 23857 9330762 D.W.T.

407826 272124 4078918 45792 5767181 3266466 10731 50523 272881 94655 18889 12641 14893 14313520

India’s overseas tonnage as on 31-3-2013 was 358 ships of 9160044 GT

Transport of goods by Waterways a comparison of present scenario

% of total goods moved by India China United States

Road Rail Waterways 57% 36% 6% 22% 47% 30% 37% 48% 14%

Shipbuilding Industry in India

There are 8 public and 20 major private sector shipyards in India Shalimar Hooghly Docks Gardenreach Alcock Ashdown Mazagon Hindustan Shipyard Goa Shipyard Cochin Shipyard Main Public Shipyards Main Private Shipyards *List on Map not comprehensive ** Shipyards Depicted on Map  Out of 28 shipyards, 2 are under the Ministry of Shipping, 4 are under the Ministry of Defence, 2 are under the control of State Governments and rest in private sector  ABG, Bharati, L&T and Pipavav are the main private sector shipyards in India** ""

Foreign Investor Friendly policies in Shipbuilding

No CAP on FDI: 100% FDI in Shipbuilding  The government of India permits 100% Foreign Direct Investment in Shipbuilding  Other government concession include: duty free import of raw materials, machinery and equipment for ships constructed/ repaired in custom bond areas 10

COCHIN SHIPYARD LTD.

• Set up in 1969 as the first greenfield shipyard in India.

• Commenced shipbuilding in 1975 and ship repair in 1981.

• Has a strong collaboration with Norwegian companies • CSL has concluded 35 shipbuilding projects with RRM and Vard AS designs.

• Approx Value of business created due to association with Norwegian firms in past 8 years is NOK 7 Billion

Vision 2020: Maritime Sector

• Estimated

Traffic

ports -

2495 MMT

in all ports including non-major • Total

Capacity

in major and non-major ports –

3130 MMT

• Total proposed 2020.

world market.

Investments

ports by 2020 – US $ 10.67 billion (Private investment- 95%) in major and non-major • Shipping tonnage to increase to 43 million GT by • Share of India in shipbuilding to increase to 5% of the • Promote use of Inland Waterways.

POLICY INITIATIVES FOR PORT DEVELOPMENT: Construction/Development of Deep-drafted berths, Cargo-specific specialized berths and mechanized berths Installation of modern cargo handling equipment such as conveyors, higher capacity versatile mobile harbour cranes and container equipment Replacement of old, out-dated low capacity cargo handling equipment with high capacity ultra modern equipment Development of deep-drafted navigational channels with modern navigational equipment

PROJECTS ON MODERNISATION OF PORT OPERATIONS Vessel Traffic Management System (VTMS) Surveillance System(CCTV) and Safety System Comprehensive Computerization covering all activities/ERP Solution with Port Operation System (POS) Port Community System (PCS) Automatic Identification System(AIS) Bio Metric Access Control/Access Control with boom barrier, turnstyle gates is being implemented Container Scanners Modern Gate-entry and Gate-out logistics systems

Proposed Initiatives for promoting coastal shipping

• Grant Scheme for Promoting Modal Shift • Rationalization of Taxes and duties • Facilitation of bank credit for procurement of vessels • Assured Cargo mechanism

Proposed Policy Measures for supporting ship-building and shipping

• Facilitating access to funds for construction of ships as well as for ship acquisition.

• Long term cargo support scheme- by tie-ups between PSUs and the shipping companies.

• Rationalising tax structure- creating an enabling environment for investment in the shipping and ship-building sector.

Scope for collaboration in Coastal Shipping

• Need to encourage coastal shipping • Potential for both cargo and passenger movement.

• Ro-ro vessels can be used in coastal movement for which infrastructure needs to be improved.

• Super speed ferries for transport in the island states, along the neighbouring countries.

coast line and with • LNG fuel based vessels to be encouraged.

Collaborative Areas in shipbuilding 1. Ship Design

 Ship design capabilities with shipyards not fully established  Reason: Small scale of shipbuilding industry in India  Shipyards currently procure ship designs from China, Korea, Japan and Norway.

 Basic Ship Design remains a major area of development for Indian shipyards – foreign collaboration improve capabilities 18

Collaborative Areas in shipbuilding 2. Ancillary Development

 Currently, 40- 70% of ancillary components and materials used in shipbuilding are imported  Reason: Shipbuilding industry in India has not

reached critical size

 Currently, Indian shipyards procure ancillary components from China, Korea, Japan and Norway.

 Collaboration on ancillary development will reduce costs and increase access to quality ancillary components for Indian shipyards 19

Collaborative Areas in Shipbuilding 3. Production Technology

 Currently, shipbuilding is less automated and more labor intensive than the industry in other countries (Korea and Japan)  Reason: Current Demographics and Market Size in

India

 Collaboration on providing access to latest ship construction technology to further improve output of Indian shipyards 20

Increased collaboration with international players necessary-

Way Ahead...

Co-ordinated and integrated Maritime development and to create 3.2 billion tonnes capacity by 2020 by optimization of public and private investments and to provide world class quality of Port and Shipping Services by attaining international standards of productivity and efficiency …