Indian Port Development and Shipping Industry News, Updates & Reports

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India to get six new mega ports under Ministry of Shipping's Sagarmala project
At least six new mega ports have been cleared to be built under the ambitious Sagarmala Project, taken up by the Ministry of Shipping. The National Perspective Plan (NPP) for the much talked about project envisions these new infrastructural facilities as part of its multi-pronged strategy to enhance India's cargo handling capacity.
The Ministry of Shipping's project, that aims to modernise India's ports, is estimated to save up to Rs 40,000 crore per year spent on logistics by key industries.
According to the NPP, the greenfield ports are likely to come up at Sagar in West Bengal, Paradip Outer Harbour in Odisha, Enayam in Tamil Nadu and Vadhavan in Maharashtra. As part of the Sagarmala Project, detailed masterplans are being developed for all the new major ports.
The new Vadhavan port, estimated to cost around Rs 10,000 crore, will help ease the congestion in the present shipping capacity. Vadhavan currently handles about 40 percent of the total container traffic in India. The new port will be able to handle 40 to 60 million tonne of cargo every year, as per sources in the Ministry. The present capacity of the port is 4.16 million tonne per year.
The proposed Paradip Outer Harbour project, estimated to cost around Rs 8,200 crore, will be developed to facilitate the coastal shipping of thermal coal for power plants in Southern and Western India. The new port will have a capacity of 175.5 million tonne per year.
Similarly, the Sagar port, proposed to handle the overflow of traffic from Kolkata and Haldia facility, has received an initial grant of Rs 515 crores as viability fund from the Centre.
A special purpose vehicle, named Bhor Sagar Port Limited, has also been floated under the partnership of the Kolkata Port Trust and the West Bengal Government. The project is expected to incur an expenditure of Rs 12,000 crore and IIT Madras has been entrusted with the responsibility of preparing a detailed project report.
A new port, either in Machilipatinam or Vodarevu, in Andhra Pradesh has also been proposed to handle the thermal coal, cement and container cargo in the region. A similar facility, either in Cuddalore or Shikazhi, in Tamil Nadu is also being contemplated to handle the movement of thermal coal.
Enayam in Tamil Nadu has been selected as India's future mega transshipment destination, aimed to capture the international business opportunity presently enjoyed by Singapore and Sri Lanka.
The new ports are likely to enhance India's cargo handling capacity by 466 million tonne per year. As part of the Sagarmala vision, India's cargo traffic handling capacity will be enhanced from 1,550 million tonne per year to 3,000 million tonne per year by 2025.
The rest 980 million metric tonne capacity needed to meet the target will be fulfilled by enhancing the capacity of major and non-major ports. The new infrastructural facilities will also help enhance India's earning from the transshipment business. Currently, India loses a lot of foreign currency to Sri Lanka and Singapore due to lack of transshipment facilities.
A whopping 25 percent of the Indian cargo is transshipped in Colombo and Singapore. One of the major reasons behind this is that India's biggest container port has a draft of just 14 m, whereas a capsize vessel requires it to be above 16 m to load and unload goods.
India's cargo volume is estimated to rise by up to 2,500 metric tonne per year from the current evaluation at 972 metric tonne per year. Infrastructural enhancements are likely to ease the pressure on the existing facilities.
The new ports will also boost up coastal shipping, thus decreasing the dependence on transportation through railways and roadways. This is likely to cut down the inland transportation costs by up to 80 percent. Presently the country has 12 major ports.
For more:
Sagar Mala project - Wikipedia, the free encyclopedia
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ezsasa

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Badiya, bhai saab....

Let's keep an eye on Adani port in Kerala. That is a real game changer.

Once it is operational, we need not depend on Dubai, Singapore as transit points.

It seems to still in planning stage and railways are yet to indicate how they will connect the port with a railway line. Going by google maps, i think it is going to be very difficult to put a railway line there. More so because of the commie govt.
 
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With eye on China, India doubles down on container hub ports
HIGHLIGHTS
  • Adani Group is building India's first trans-shipment port at Vizhinjam in Kerala.
  • The government will construct $4-billion port in Tamil Nadu.
  • India expects to save millions of dollars in detour costs.
  • Trans-shipment port will also have navy, coastguard berths.
NEW DELHI: Indian conglomerate Adani Group has started building the country's first transshipment port, conceived 25 years ago, and the government will construct another $4-billion facility nearby to create a shipping hub rivalling Chinese facilities in the region.
The government will grant Gautam Adani 16 billion rupees ($240 million) in so-called "viability gap" funding to help the new port at Vizhinjam in Kerala win business from established hubs elsewhere in Asia.
Once Vizhinjam is operational, the central government will start building the port of Enayam in neighbouring Tamil Nadu, said a senior shipping ministry official. Enayam alone will save more than $200 million in costs for Indian companies every year, he said.
India's 7,500-km (4,700-mile) coastline juts into one of the world's main shipping routes and Prime Minister Narendra Modi wants to capitalise on that proximity by developing ports that can shift freight on to huge vessels capable of carrying up to 18,000 20-foot containers.
By bringing onshore cargo handling now done at entrepots in Sri Lanka, Dubai and Singapore, Modi's government expects cargo traffic at its ports to jump by two-thirds by 2021 as India ramps up exports of goods including cars and other machinery.
The lack of an Indian domestic trans-shipment port forces inbound and outbound containers to take a detour to one of those regional hubs before heading to their final destination.
New Delhi expects the new ports to save Indian companies hundreds of millions of dollars in transport costs, as well as ease concerns over the growing strategic clout in South Asia of rival China, which has invested hundreds of millions of dollars in Sri Lankan ports at Colombo and Hambantota.
Adani wants the Vizhinjam port, which an arm of his Adani Group is building at a cost of around $1 billion, to be operational in 2018. The port lies hard by the Gulf-to-Malacca shipping lane that carries almost a third of world sea freight.
"The port can attract a large share of the container trans-shipment traffic destined for, or originating from, India which is now being diverted primarily through Colombo, Singapore and Dubai," said an Adani Group executive who declined to be named.
But officials acknowledge that it would be difficult for the new ports to win international clients unless they offered discounts.
"A major part of trans-shipment is happening at nearby ports. We can win some of that business," said AS Suresh Babu, who heads a government agency set up by Kerala to facilitate the construction of Vizhinjam.
"There's a viability issue in the first few years. Already the Chinese are operating there. So unless you give some discount you can't attract these ships. So that's why the government of India has approved the viability gap funding."
Chinese threat
India is worried about China's expanding reach in the region through port investments in Sri Lanka, Bangladesh and the Maldives. China is also developing Pakistan's Gwadar seaport as part of a $46 billion China-Pakistan Economic Corridor.
China had also wanted to partner with an Indian company to build the Vizhinjam port, but its proposal was rejected by the government on grounds of national security.
India has not banned Chinese firms from investing in its ports, but takes a cautious approach as most ports are also used for "strategic purposes", said the shipping ministry source.
That is a euphemism for dual-use port facilities that could also be used by naval vessels. The docking of a Chinese nuclear submarine at Colombo's commercial port in 2014 shocked India's security establishment and has added urgency to New Delhi's push to strengthen its port infrastructure.
Vizhinjam port will have dedicated berths for India's navy and coastguard, according to a government note seen by Reuters.
India is also seeking to extend its commercial and strategic reach as it tries to catch up with China, pledging up to $500 million to develop the Iranian port of Chabahar to give it trade access to Iran, Afghanistan and the hinterlands of Central Asia, now largely blocked by Pakistan.
"We want Indian ports to compete with the best ports in the world in various parameters like turnaround time, efficiency, last-mile connectivity, infrastructure etc," India's shipping ministry said in a statement to Reuters.
But analysts remain sceptical that India can complete the trans-shipment ports, given that it has taken a quarter of a century to get the Vizhinjam port plan this far after legal disputes and lack of security clearance from the federal government delayed previous attempts to build it.
"Very few days or weeks pass without news of a new hub port proposal in southern India," said Andy Lane, a partner at maritime and port consultant CTI Consultancy.
He added that, as Colombo was a "low cost and highly efficient" port, container shipping lines were unlikely to easily consider a switch to India.
 
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Officially from Press Information Bureau:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=147470
Sagarmala Project
The National Perspective Plan for the Sagarmala programme was prepared and approved by the National Sagarmala Apex Committee on 9th April 2016 and released at the maiden Maritime India Summit 2016, on 14th April 2016, by the Hon’ble Prime Minister.


Total of 173 projects have been initially identified under four projects archetypes of Sagarmala in National Perspective Plan, April 2016. The Project archetype and the number of projects identified are given below:


S.No

Project Archetype

Number of Projects

1

Port Modernisation

53

2

Port Connectivity

83

3

Port Led Industrialisation

29

4

Coastal Community development

8


26 Port rail connectivity projects were identified under NPP, of which 2 have been completed and 18 are under implementation by Ministry of Railways. Most of these projects will be completed by 2019-20. For 1 project, Indian Port Rail Corporation Limited has awarded the PMC work and 1 project is being implemented by the Port itself. Remaining 4 projects are for implementation through JV/Non – Government Rail (NGR) model.

The implementation of the projects identified under the National Perspective Plan, at an estimated investment of Rs. 4 Lac Crore, will be taken up starting FY 16-17 by the relevant Ports, State Governments/ Maritime Boards, Central Ministries, mainly through private or PPP mode. Sagarmala Development Company (SDC) is to be set up by the Ministry of Shipping to provide equity support to the project SPVs and funding support for the residual projects under Sagarmala. The Sagarmala consultants have projected that the identified industrial cluster projects will enable creation of approximately 1 Crore new jobs, including 40 Lakh direct jobs in the next 10 years.

This information was given by Minister of State for Shipping, Shri Pon. Radhakrishnan in a written reply to a question in the Lok Sabha today.


****

UM/NP/AC
 
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Sagarmala: Developing India’s Ports to Aid Economic Growth
Posted on October 26, 2016 by India Briefing
The Sagarmala project is an Indian government initiative to develop the country’s ports and logistics to accelerate economic growth. By developing the program, the government hopes to reduce logistics costs for domestic as well as import/export cargo by optimizing infrastructure investment. A recent study done in September estimates that the resultant cost savings could range from US$ 5.2 billion (Rs 35,000 crore) to US$ 5.9 billion (40,000) crore per year by 2025. The government has planned six megaports under the project, namely the Vizhinjam International Seaport (Kerala state), Colachel Seaport (Tamil Nadu), Vadhavan Port (Maharashtra), Tadadi Port (Karnataka), Machilipatnam Port (Andhra Pradesh), and Sagar Island Port (West Bengal). Data shows that despite its long coastline of 7,517 km (4670.84 miles), India’s coasts only contribute to 15 percent of national trade activity.
Logistics in India contribute to 19 percent of the GDP, and remains among the highest in the world as compared to China’s 12.5 percent. Several studies show that using coastal shipping and inland waterways would be 60 to 80 percent cheaper than road or rail transport. If coastal shipping is used to complement road and rail transport in India, it could therefore lead to significant logistics cost savings. Additionally, the government recently relaxed transport rules for shipping, which will allow foreign ships to use coastal routes. Taking advantage of this, Korean automaker Hyundai Motors, followed by several other automobile manufacturers like Renault-Nissan, Ford and Toyota, recently shipped around 1,200 automobiles from Tamil Nadu to Gujarat. Car makers also reveal that the government has promised an 80 percent discount on ship cargo charges.
The Sagarmala project also aims to shift the movement of coal to the coastal route, which would cut down electricity costs by up to 35 percent. This is particularly true for coastal power plants in Andhra Pradesh and Karnataka, which receive coal by rail networks. Shipping of coal via ports can lead to estimated savings of about US$ 1.4 billion (Rs 10,000 crore) in the power sector. This holds especially significant as the government passed the Coal Mines (Special Provisions) Bill, 2015 in March 2015 allowing for FDI in the sector. Coal can also be moved via shipping methods for non-electricity use, such as for use in steel plants. Other products like steel, cement, fertilizers, and food grains can also be shipped at a capacity of around 80-85 million tons by 2025.
The Nitty-Gritty of the Sagarmala Initiative
The Sagarmala initiative focuses on three pillars as per the Indian government:
  • Supporting and enabling port-led development through appropriate policy and institutional interventions and providing for an institutional framework for ensuring inter-agency and ministries/departments/states’ collaboration for integrated development.
  • Port infrastructure enhancement, including modernization and setting up of new ports.
  • Efficient evacuation to and from the hinterland.
In addition, the government has also proposed 14 coastal economic zones (CEZs), which will link coastal districts to ports. Such CEZs are envisioned to be much bigger than India’s Special Economic Zones (SEZs), extending 500kms (310 miles) along the coastline and 300km (186 miles) inland. They will have coastal economic units for manufacturing facilities. These CEZs are also expected to aid the planned industrial corridors, such as the Visakhapatnam-Chennai Industrial Corridor as well as the Delhi-Mumbai Industrial Corridor. India’s respective states are expected to take the lead on developing CEZs, though experts feel that in order for CEZs to be successful, their actual implementation, tax structure, and incentives need to be emphasized.
Project Framework
The government formed the National Sagarmala Apex Committee (NSAC) to provide the overall policy guidance. In addition, the government has incorporated the Sagarmala Development Company (SDC) under the Companies Act of 2013. The SDC will help in project development and will serve as an agency for the coordination and monitoring of the Sagarmala project. The SDC will also be responsible for raising funds in the form of debt or equity as per the project requirements. To further support the project, the government has formed a Sagarmala Coordination and Steering Committee (SCSC) under the Cabinet Secretary along with other relevant ministries such as shipping, road transport and highways, tourism, defense, home affairs, and NITI Aayog to ease coordination between the different ministries and ensure efficient implementation.
Observations
The government hopes to increase cargo traffic by three-fold in the next five years. If implemented successfully, the Sagarmala project will significantly help cargo transport become more efficient while reducing costs. The project will also help in creating jobs and boost the government’s flagship manufacturing initiative, ‘Make in India’. In addition, foreign businesses will be able to invest as the project will require the modernization, mechanization, and computerization of ports and related areas. Around 173 projects with a required investment of US$ 60 billion will need to be completed by 2020. While the government will continue to face challenges regarding land acquisition, regulatory issues, and appropriate incentives, it will need to address them on a priority basis if it wants the Sagarmala project to successfully boost India’s economic growth.
 
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Dockworker incentives could drive Indian major port productivity
The decision should help major ports in their competition with their minor, or private, rivals.
The government of India last week approved extending a previous productivity-linked incentive scheme for workers employed at major port trusts, paving the way for better industrial relations at public ports as authorities gear up to meet the challenges of an era of mega-ship calls and growing competition from privately-operated minor ports.
Better labor relations at public ports could make the on-and-off again strikes and protests for higher wages and other benefits that cause congestion and delays at major ports less likely.
Click to Enlarge
The scheme, which is retroactive to fiscal year 2015 to 2016 and will apply until the end of fiscal 2017 to 2018, is expected to benefit about 38,000 workers, according to a press statement from the Ministry of Shipping.
“The new scheme will foster better industrial relationship and congenial work atmosphere in the port sector, apart from stimulating better productivity,” the ministry said.
Port labor unions staged a nationwide strike on Sept. 2 to press their 12-point charter of demands, including wage improvements and other benefits. During conciliatory talks held with union leaders prior to the strike, the government agreed to address the core issues tied to minimum wages and bonus entitlements while keeping the door open to further consultations on other demands, especially a review of port reforms under way.
Although the labor groups turned down the whole package and went ahead with a 24-hour stoppage, the action did not produce serious disruptions at key major ports, including the largest container handler, Jawaharlal Nehru Port Trust. Amid that tepid response to the strike call, the government has moved a long-contemplated proposal to transform all major ports run by boards of trustees into independent companies with more operational and financial autonomy.
Click to Enlarge
That change comes as so-called minor terminals are aggressively ramping up capacity to continue gaining market share. Port statistics collected by JOC show minor ports together handled 4.14 million 20-foot-equivalent units last fiscal year, an increase of 16 percent year-over-year.
Adani Ports, which operates the biggest non-government cargo hub at Mundra, for example, booked a 28 percent year-over-year jump in container volumes in the first fiscal half through September, according to the newest data released by Adani Group. With that strong growth trend, Adani Ports is doubling Mundra’s capacity to 6.6 million TEUs per year through the addition of a new terminal with CMA CGM Group and expansion of an existing facility with Mediterranean Shipping Company.
To catch up with capacity needs and productivity benchmarks, the government has lined up an array of public-private partnership projects for construction of new berths, port-related rail projects, dredging, equipment upgrades, mechanization, and moving more transactions online at major ports via its flagship Sagar Mala program.
Thanks to those efforts, major ports scaled up their overall market share from a previous level of 55.26 percent in fiscal 2015 to 56.56 percent in fiscal 2016 through the end of March.
 
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Maharashtra ropes in international consultant to develop cruise ports
(Representative image)
MUMBAI: As Mumbai port awaits one of the world's largest cruise ships on Saturday, the ministry of shipping has appointed an international consultant -Bermello Ajamil & Partners -to prepare an economically viable plan to develop coastal and inland cruise ports in the country.
"We expect the report in the next four-and-half months in order to move ahead with development of ports," said MbPT chairman Sanjay Bhatia. The development of cruise port will help India attract international cruise liners and boost sea tourism.
Till now, there has been no opportunity for Mumbaikars to board international luxury cruise liners. Flying to other countries to take international cruises was the only option.
However, the scenario is changing with the shipping ministry , state government and Mumbai Port Trust launching several initiatives to make Mumbai the Gateway to International Cruise in India.
The 18-deck-luxury ship, Genting Dream, arrived from Germany on its maiden voyage and set sail with around 2,000 tourists to Colombo and Singapore recently . Another international cruise ship, Costa Neo Clasica, has decided to make Mumbai a `home port' for over three months and make seven international tours from here. "Mumbai Port Trust has opted to give certainty of berth and priority to cruise ships over cargo ships though revenue from cruise ships is less attractive than the latter. The port trust offers 40% discount in charges to cruise ships and has done away with berthing charge," said Bhatia.
Thanks to the initiatives, 59 cruise ships have confirmed their arrivals to Mumbai Port in 2016-17, as against 37 the previous year.
Cruise Tourism contributes handsomely to the local economy but the economic impact of `home porting' (starting and termination of cruise trips at Mumbai port) is tremendous in terms of attracting tourists, passengers, cruise liners besides investors and developers.
After 10 years, Mumbai port is again geared up to receive one of the largest cruise ships `Genting Dream' on Saturday which is coming from Germany on its maiden voyage. Taking this as an opportunity to promote cruise tourism in a big way , the ministry of shipping has appointed an international consultant -Bermello Ajamil & Partners -to give economically viable plan to develop coastal and inland cruise ports in the country.
Implementation of Standard Operating Procedure (SOP) has also been initiated, phase-wise.
In addition, construction of a modern Cruise Terminal is being planned at an estimated cost of Rs. 130 crore. "We hope to complete the New Cruise Terminal Building which will increase the floor space from 3000 sq. mtrs. presently being used, to approx. 30,000 sq.mtrs.complete with all international level facilities like separate arrivals, departures, retail, duty free shops, restaurants, hotels etc. Besides, during the off-cruise days and season, the local citizenry will have access to this terminal for recreation and entertainment etc. Mumbai Port is focusing on this segment targeting to receive nearly 100 Cruise Ships in a couple of years," he added.
@cobra commando
 
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Largest passenger ship to dock in India will take 1,900 tourists to Singapore
The Genting Dream anchored in Mumbai, prior to its maiden voyage from the city.Photo: Kamlesh Pednekar
Equipped to accommodate 3,400 guests, attended by a crew of 2,000 -- the highest crew-to-guest ratio in Asia-based cruising -- the Genting Dream arrived at Mumbai Port for the first time on its relocation voyage on Saturday.
The largest passenger ship ever to be anchored at Mumbai Port, the ship is geared up to ferry its first set of 1,900 passengers from India on a voyage to Singapore via Colombo. Incidentally, the Mumbai Port Trust has a dedicated berth for cruise tourism.
Maharashtra Chief Minister Devendra Fadnavis and Union Minister for Shipping and Road Transportm Nitin Gadkari, were among the dignitaries who attended the inaugural cruise ceremony on Saturday.
Speaking on the occasion, Gadkari said, "We have taken a decision to have passenger terminals at all major ports to cater to cruise tourists. There are over 200 private and minor ports in the country and I would also request them to have such facilities."
He added that the government is keen to promote cruise tourism, and is investing over Rs 200 crore to build a modern international cruise terminal in Mumbai.
A senior official of Dream Cruises clained that the company has been serving the luxury cruise segment for the past decade, and saw a 36 per cent rise in Indian tourists in fiscal 2015-16, to over 125,000 passengers.
The 18-deck luxury vessel is 335 metres long, almost 40 metres wide, and has a top speed of over 23 knots. According to a press release issued by Dream Cruises, which owns Genting Dreams, over 70 per cent of the accommodation on the vessel consists of staterooms with private balconies and over 100 connecting rooms catering to extended families and groups.
The ship also has what it calls a 'Dream Palace' -- a ship within a ship -- with suites featuring European-style butler service. She comes with as many as 35 restaurants and bars offering a spectrum of cuisines, swimming pools, six water slides, rock climbing and a mini gold course.
 
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Shipping minister Nitin Gadkari urges private ports to cater to cruise tourism
The government is investing over Rs 200 crore to build a modern international cruise terminal at one of the oldest ports in the country, the minister informed.
BY: PTI | MUMBAI |Published On:October 29, 2016 6:09 PM
Union shipping minister Nitin Gadkari on Saturday urged private port operators to create necessary arrangements for catering to passengers, pointing out to the prospects of cruise tourism in the country. “We have taken a decision to have passenger terminals at all major ports to cater to cruise tourists. There are over 200 private and minor ports in the country and I would also request them to have such facilities,” Gadkari said at the Mumbai Port Trust in Mumbai.
He said the government is very keen to push cruise tourism, given its benefit to the local economy and wants the city port to become among the five best cruise tourism hubs in the world. The government is investing over Rs 200 crore to build a modern international cruise terminal at one of the oldest ports in the country, the minister informed.
A bulk of the ports built in the last 25 years since the country embarked on the liberalisation journey have been privately owned or operated. All of them typically cater to the high-volume and revenue accretive trade segment, handling container, bulk and liquid cargos. A slew of names including Adanis, Essar, Larsen and Toubro etc have entered the port segment in the last few years.
Referring to the port redevelopment plan, Gadkari said there is a plan to make the city port better than those in Dubai and Singapore as well. The minister was quick to point out that while carrying out such projects, jobs will be protected and there will in fact be a growth in employment through such initiatives.
Mumbai Port Trust (MbPT) chairman Sanjay Bhatia said catering to domestic tourists can also be a lucrative business opportunity and the ministry has appointed an international consultant to study the same both on the coastal and inland waterways front.
The MbPT, which has a dedicated berth for cruise tourism, on Saturday hosted its largest passenger ship yet. Genting Dream anchored at the berth in her maiden voyage and will be carrying 1,900 passengers from the city till Singapore, via Colombo. A senior official from the shipping company said it has been serving the market for the last decade and saw a 36 per cent growth in Indian tourists in the last fiscal 2015-16 to over 1.25 lakh.
 
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India’s second quarter port cargo traffic report card
Despite having a coastline of 7,517km and 13 major ports, shipping contributes a meagre 1% to India’s gross domestic product and caters to around 7% of the overall cargo movement in the country.
The year-on-year second quarter growth for financial year 2016-17 in terms of cargo traffic handled by ports remained muted. The government believes that Indian cargo traffic at ports is estimated to increase to 2.5 billion tonne per annum by 2025.
 
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Bill aimed at improving port’s governance likely to be tabled in winter session of Parliament
The country’s 7,517km long coastline is serviced by 12 major ports and 187 minor or intermediate ports.
In an attempt to provide higher autonomy and flexibility to all major ports in India by allowing them to fix tariffs, ‘The Major Port Authority Act, 2016’ may finally be tabled in the coming winter session of Parliament.
The long awaited bill is aimed at replacing the Major Port Trust Act, 1963. The winter session of Parliament will commence from 16 November and conclude a month after on 16 December.
“The bill is currently with the ministry of law. It has come from interministerial comments and we soon propose to move it to the Cabinet,” said Rajive Kumar, secretary in the shipping ministry.
The highlight of the bill is that the power to regulate tariff will be taken away from the Tariff Authority for Major Ports (TAMP) and the power to fix the scale of rates for service and assets will be delegated to the port authority’s board. The bill also proposes to create a review board which will reduce the extent of litigation between public-private-partnership operators and ports.
Catering to over 90% of foreign trade, the ports are the gateways to India’s international trade. The country’s 7,517km long coastline is serviced by 12 major ports and 187 minor or intermediate ports. The major ports are; Chennai, Cochin, Jawaharlal Nehru port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar, Kamarajar and Visakhapatnam.
The bill also proposes to delegate power to the board of port authority to raise loans and issue security for the purpose of capital expenditure and working capital requirement. In addition, the bill entails restructuring the board’s composition by reducing its strength to 10 members instead of around 17 to 19 members under the present Port Trust Model.
“The bill has gone through the process of getting interministerial comments,” said another senior ministry official who didn’t want to be named.
“The interministerial consultations are over and all the ministries have sent their comments. Before it goes to the cabinet, the bill has to be vetted by the law ministry…So we are at the stage of final vetting of the draft bill by law ministry,” the official added.
The existing capacity of Indian ports, as on 31 March, 2016, is 965.36 million tonne (MT) per annum—adequate to handle the existing cargo volume. The cargo handled during 2015-16 was 606.37 MT.
Experts say that it is important to assess the alternate structure that will replace TAMP.
“The broad point here with the abolition of TAMP is that we need to understand the alternate structure that would replace it. It is like a regulator which pronounces its judgement. So, if a regulatory authority has to be done away with, it has to be replaced by some other rule or formula and that needs to be clear,” said Hemant Bhatt, chief executive officer at Hmsa Consultancy Services LLP.
 
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POSITIVE PERFORMANCE BY INDIAN PORT GROUPS
The buoyancy of the Indian economy is reflected in very positive results recently posted by two of the country’s leading ports groups.
Essar Ports has seen an increase of over 35% in overall cargo handling volumes in the second quarter of 2016-17, ending September 30th 2016, compared to the corresponding quarter of the last fiscal year. The group handled 18.27 million tonnes against 13.55 million tonnes in the same period of last year. Third party cargo handling was up by over 105%, to 1.03 million tonnes, while the number of ships handled, 209 vessels, jumped by 17%.
Commenting on the performance, Rajiv Agarwal, managing director, Essar Ports, said, “Our performance is a reflection of the efficient operations at all our ports and faster vessel turnaround times. We are gradually enhancing our capacity utilisation, which is backed by the improved operational performance of our anchor customers.”
The company’s performance for the first six months of the 2016-17 financial year similarly demonstrated a significant improvement. The volume of cargo handled was up by 33%, at 35.37 million tonnes, compared to the 26.54 million tonnes moved in the first half of 2015-16, and the amount of third party cargo handled jumped by 230%, to 1.98 million tonnes.
Essar Ports is one of the largest port companies of India, with a current capacity of 140 million tonnes a year. Its capacity is being expanded to 194 million tonnes annually over the next few years.
Meanwhile, Adani Port’s cargo throughput increased by 17% in the second quarter to 43 million tonnes, up from 36 million tonnes in the same quarter of the year before. Container volumes increased by 30% on a year-on-year basis. For the half year period, Adani Ports handled a total of 85 million tonnes, a rise of 12%, with container throughput up 28 % compared with the first half of 2015-16.
Karan Adani, chief executive officer of Adani Ports, said, “Healthy growth in cargo volumes, operational efficiencies and our efforts to change the mix of bulk cargo beyond coal has enabled us to report all-round growth in our financial numbers. With our port to hinterland connectivity further improving we aim to be truly a fully integrated player providing end to end service to our customers. This will result in higher volume and financial growth.”
 
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Mumbai Port to build airport-like cruise terminal for Rs 225 crore
The Genting Dream from Germany will dock at the Mumbai Port on October 29; it will kick off India's cruise season this year.
The project will be built on a PPP model, Mumbai Port said.
The Mumbai Port, one of the oldest in the country, will be investing Rs 225 crore to build a modern passenger terminal that can cater to cruise ships.
"We have identified cruise shipping as a focus area, which can help the city as well. We will soon be floating tenders for a passenger terminal which will be built on a PPP model," Mumbai Port Trust chairman Sanjay Bhatia said.
The cost of the project is Rs 225 crore, he said, adding that earlier estimate was Rs 130 crore.
Work on the terminal, which will resemble an airport and have the capacity to handle thousands of passengers disembarking from a single ship, will be over in next two years, he said.
The Port Trust, which would welcome its first big cruise ship on Saturday, has dedicated a berth to such ships and expects to get 59 ships by next May, Bhatia said, adding this will go up to 100 in the season after it and to 150 the year later.
Every ship will bring at least 2,000 passengers, which will support the local economy, he said.
'Genting Dream', on her maiden voyage from Germany, will be calling on Mumbai port on Saturday. Bhatia also said that the port has reached an agreement with Costa Ships for a long term use of facilities.
"They will be making Mumbai the base from which cruise vacations will be starting and ending and the partnership is long-term," Bhatia said.
Till the new terminal gets ready, the port will use the existing facilities, Bhatia said, stressing that certain facilities have been upgraded.
The port is also giving a slew of incentives to cruise operators. These include doing away with hosting charges, concession in cruise charges, and standard operating protocols for customs and immigration checks.
The port is also looking to tap the domestic opportunity, Bhatia said, informing that a committee of chairmen of ports on the Western coast has been formed under his chairmanship by the Union Shipping Ministry for this purpose.
The port has appointed a global consultant to study domestic cruise tourism and ways to popularise it, he said.
 

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Soon, swanky seaports to see tourists cruising into India
Traditional visas are currently allowed to tourists arriving at 21 seaports — Alang, Bhavnagar, Calicut, Chennai, Cochin, Cuddalore, Kakinada, Kandla, Kolkata, Mandvi, Mangalore, Marmagoa, Morech, Mumbai, Nagapattinam, Nhava Sheva, Paradeep, Porbandar, Port Blair, Tuticorin, Visakhapatnam
Cruise tourism is something that the tourism ministry is keen on promoting. As a result, the ministry is working on a project to attract travellers by developing seaports and providing ease of access to e-visas for travellers in theseports.
So soon, travellers arriving in India from other countries by sea will be greeted by swanky seaports in prominent coastal cities like Mumbai, Chennai and Kochi.
The ministry has written to the ministry of external affairs last month to clear this idea. The MEA has replied by saying that the idea still needs to be developed, as several ports in India are currently not ready to handle tourists.
"The MEA has spoken about better infrastructure, and the need to rope in the bureau of immigration and the CISF to man these ports," said Vinod Zutshi, secretary, ministry of tourism.
The 7,400-kilometer coastline along southern India remains unexploited, and in December, Mumbai's first cruise ship will set sail. It will be themed on Bollywood and cricket, and will travel to Mangalore, Cochin and thereafter to Maldives. There are 13 major ports in India, apart from 185 minor and private ports. Of these, only 61 ports function all around the year.
Of these, traditional visas are currently allowed to tourists arriving at 21 seaports. These include Alang, Bhavnagar, Calicut, Chennai, Cochin, Cuddalore, Kakinada, Kandla, Kolkata, Mandvi, Mangalore, Marmagoa, Morech, Mumbai, Nagapattinam, Nhava Sheva, Paradeep, Porbandar, Port Blair, Tuticorin and Visakhapatnam.
Zutshi however says that currently, despite this visa facility, the number of tourists arriving at these ports are negligible due to lack of infrastructure in this area. "Without facilities, there's no footfall. And the travel trade players are keen on developing cruise tourism along the coastline," he said. "We will also provide e-visas to foreign travellers arriving at these seaports."
Some of the most prominent seaports are the Kandla Port on the Gulf of Kutch, which was incidentally the first special economic zone in India as well as Asia. The Jawaharlal Nehru Port, also known as the Nhava Sheva, located on the West coast, has the distinction of being the biggest container port in the country. The Mumbai port is the largest in India.
There are two types of arrivals that take place in India -- turnaround entries and port of call. Turnaround entries are when cruises pass by seaports in India, and anchor for a day. In these cases, visas are not needed, and passports are retained by the shipowners.
In port of call, cruise ships take in new passengers or offload them. Cruise liners like the Royal Caribbean halt at Cochin and Mumbai. The ministry is mooting e-visas for passengers entering India under port of call.
The ministry is expecting over 90 lakh tourists this year, up from the 80 lakh tourists that arrived last year. In 2015, India registered 4,45,300 arrivals via e-visa. In comparison, this year there was a steep jump of over 300% with 6,06,493 arrivals by e-visa till August.
The move will come as a boon to the tourism industry, says Tejbir Singh Anand of the Adventure Tour Operator Association of India (ATOAI). "We have an exceptional coastline, but the ports are ill-managed. This step will take be a step-up for the sector," said Anand. He added that ports in Gujarat, Mumbai, Chennai, Cochin and Kolkata portsmust be developed.
 
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Cargo traffic at major ports grows 5.2% during Jan-June, 2016-17
MUMBAI: The major ports in India handled 315.4 MT (million Tonnes) of cargo during the first six months of FY 2016-17 (April-September) and showed a positive growth of 5.1 percent as compared to the same period last year. The cargo traffic handled by the major ports during the same period last year was 299.5 MT.
Major Ports with the highest increase in traffic during April - September 2016.
Murmogao Port recorded the highest growth in traffic during the first six months of FY 2016-17 (April-September); Mormugao Port showed an increase of 61 % followed by Paradip at 18.3 % Vishakhapatnam at 11 %, Kandkla at 7.1 %, Cochin at 5.2 %, V.O. Chidambaranar at 3.5%, New Mangalore Port at 3.4 % and Chennai Port at 0.3 %.
Major Ports with the highest cargo-handling share
Kandla Port handled the maximum cargo during the first six months of the FY 2016-17 (April-September). The Port handled 53.9 MT (17.1%) of the total cargo handled by Major Ports. Paradip was a close second at 42.6 MT (13.5%) followed by JNPT at 30.8 MT (9.8%) and Mumbai Port at 30.8 MT (9.8%).
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Sri Lanka keen to invite Indian cos to develop ports
New Delhi, Oct 5 (PTI) Sri Lanka has invited Indian companies to participate in its port development projects and other infrastructure building programmes.
The visiting Sri Lankan Prime Minister, Ranil Wickremesinghe, in his meeting with Union Shipping and Transport Minister Nitin Gadkari discussed the prospects of Indian companies in building two to three ports in Sri Lanka.
Wickremesinghe wants Indian companies develop a few ports in Sri Lanka including Colombo Port and Gadkari conveyed his willingness to partner and cooperate in developing their port and other infrastructure, a Road Transport Ministry official told PTI.
The official said the Sri Lankan Prime Minister expressed keenness that Indian companies should participate in developing ports there and it will be decided whether to proceed on government to government basis or not.
Also, Sri Lanka wanted India to develop ferry service between Rameshwaran and Sri Lanka.
Indian subcontinent is playing a vital role in the business of Colombo Port accounting for 70 to 75 per cent of its trans-shipment business.
Earlier, Gadkari had said that India is set to build a sea-bridge and tunnel connecting Sri Lanka and the Asian Development Bank is ready to fully finance a bridge building project connecting Rameshwaram to Sri Lanka. The India-Sri Lanka connectivity project cost was pegged at about Rs 24,000 crore. "The Government, right from the day it assumed office, has been focused on enhancing regional cooperation. Subsequent to PMs announcement of Act East policy, India pro-actively engaged in building effective and credible links between South Asia and South East Asia through enhanced regional connectivity," Gadkari has said.
PTI NAM MKJ
 

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