MARITIME AGENDA : 2010 - 2020 Government of India Ministry of Shipping January, 2011 Preface The Logistics Sector in India needs to develop rapidly to synchronize with the dynamic growth of the Indian Economy. The Ports infrastructure and Shipping have vital roles as parts of the logistics chain. The Ministry of Shipping has been continuously engaged in designing and implementing various projects for the development of the sector. Based on inputs received from various sources, it is felt that the pace of growth has to be increased, that the whole efficiency of the delivery system has to be substantially improved and that the concern for the environment has to be stronger. The Maritime Agenda 2010-20 is part of the effort to identify the areas for attention during the 10 year period from 2010-11 to 2019-20. This 10 year period covers the last two years of the Eleventh Five Year Plan, the full five years of the Twelfth Five Year Plan and the first three years of the Thirteenth Five Year Plan. Obviously, 10 years is too long a period for identification of specific areas of action in a fast changing world. It is, therefore, imperative that the Maritime Agenda is not seen as a static document; it does need to be reviewed periodically. I must make it clear that the various observations and statements in the document do not always reflect the accepted official position of the Government. Many of the policies, programmes and projects listed have not been formally approved, nor have they gone through the normal process of decision - making in the Government. This document basically presents an agenda for consideration. On each of the Agenda items, there has to be a separate scrutiny and decision making. In other words, this is more an Agenda for consideration and decision rather than an Agenda for action. At the same time, many of the listed activities are statements of obvious intentions and all concerned have to be working towards achieving these goals. Many of the agenda items fall in the domain of other Ministries of the Central Government, or in the domain of the State Governments; several items are for the Industry to act. Some of the identified activities may be taken up only during the later years of the decade, although the time frame has not been specified for some of the activities. This will be refined further. As part of the monitoring process, it would be useful to have an annual assessment of the action taken on the recommendations contained in Part IV and come out with a report card. It would be possible to decide on deletions, additions and modifications depending on the circumstances then prevailing. This exercise has had the full involvement of several officers at various levels from the Ministry of Shipping as well as from the field organizations. It would not have been possible to develop such a document without the dynamic leadership of the Hon’ble Minister of Shipping, Shri G.K. Vasan. I believe this Maritime Agenda 2010-20 would serve as a key support document in our efforts to develop the Indian Maritime Sector. K. Mohandas Secretary to the Government of India Contents PART – I INTRODUCTION Chapter-1 Introduction 1-3 PART – II PORTS Chapter-2 Global Overview of the Maritime Sector 4-11 Chapter-3 Emerging Scenario 12-18 Chapter-4 Overview of the Port Sector in India 19-32 Chapter-5 Existing Policy Framework 33-36 Chapter-6 Analysis of Traffic Projections made by various Agencies 37-46 Chapter-7 Traffic Projections and Capacity Estimation for Major Ports and 47-82 maritime States upto 2020 Chapter-8 Hinterland Connectivity 83-95 Chapter-9 Ports’ Efficiency – Quest to achieve International Standards 96-104 Chapter-10 Category-wise Projects and funding pattern for Major Ports and 105-126 Maritime States upto 2020 Chapter-11 Information and Communication Technology (ICT) Perspective in 127-133 Indian Ports Chapter-12 Future Policy Milestones and Way Forward 134-148 ANNEXURES TO PART - II Annexure List of Annexure Page No. No. I. List of Major and Non-Major Ports 149 – 152 II. Commodity-wise Traffic handled at Major Ports during 2009- 153 10 & 2008-09 III. Commodity-wise Capacity available at Major Ports as on 154 31.03.2010 IV. Commodity-wise Traffic handled at Non-Major Ports during 155 2009-10 & 2008-09 I V. List of Projects under Private Sector Participation 156 – 158 VI. Port wise & Commodity wise Traffic Projections for Major 159 – 166 Ports from 2011-12 to 2019-20 VII. Port wise & Commodity wise Capacity Estimation for Major 167 – 171 Ports from 2011-12 to 2019-20 VIII. State wise & Commodity wise Traffic Projections for Non- 172 – 176 Major Ports from 2011-12 to 2019-20 IX (i & ii) State wise Capacity Estimation for Non-Major Ports from 177 – 180 2011-12 to 2019-20 X. Summary of Commodity wise overall Traffic Indian Projection 181 – 183 for Major Ports, Non-Major Ports and All Ports (Major + Non Major Ports) from 2011-12 to 2019-20 XI. Summary of ongoing Projects and Projects to be under taken 184 – 191 for Major Ports in Phases I, II & III and their funding pattern XII. Summary of investments to be made at Maritime States for 192 – 202 various development Projects in Phase I, Phase II & Phase III XIII. Port wise list of ongoing Projects and Projects to be under 203 – 302 taken for Major Ports in Phases I, II & III and their funding pattern PART – III SHIPPING Chapter-13 Overview of the Shipping Sector 303-305 Chapter-14 Shipping 306-329 Chapter-15 Human Resources Development 330-356 Chapter-16 Coastal Shipping 357-362 Chapter-17 Aids to Navigation 363-382 Chapter-18 Shipbuilding and Ship repair 383-411 Chapter-19 Inland Waterways 412-424 Chapter-20 Proposed Policy measures, Initiatives and Expected Outcome 425-431 PART – IV AGENDA FOR THE DECADE Chapter-21 Agenda for the decade 432-441 II PART - I INTRODUCTION CHAPTER -1 INTRODUCTION 1.1 India is a major maritime nation by virtue of its long coast line of around 7517 Kms on the western and eastern shelves of the mainland and also along the islands, bejewelled with 13 major and 176 non-major ports, strategically located on the world’s shipping routes, its long tradition of seafaring with a large pool of trained maritime personnel, and its dynamic and rapidly globalizing economy with a vast potential to expand its participation in trade and development. 1.2 India has been an emerging and vibrant economy with a huge market, a billion plus population and strong GDP growth rates of over 9% for three consecutive years up to 2008-09. However, due to the global melt-down and recession, the GDP growth slowed down to 6.7% in 2008-09. But, with global recovery under way and backed by strong decisive policy responses, the economy performed better in 2009-10 and achieved growth rate of 7.1% , it is likely to grow at 9.2% during 2010-11. As forecast made by many global institutions, India along with China will lead Asia’s economic expansion from 2010 onwards. 1.3 Ports play a vital role in the overall economic development of the country. About 90% by volume and 70% by Value of the country’s international trade is carried on through maritime transport. Development of India’s ports and trade related infrastructure will continue to be critical to sustain the success of accelerated growth in the Indian economy. Despite record growth rates, the merchandise trade intensity of India’s GDP is still below 30 per cent. This indicates that there is still a lot of untapped potential for trade growth, and consequently the demands on the country’s ports and trade infrastructure will continue to mount as trade diversifies and grows. Hence, there is a need to expand the Country’s ports in a timely and efficient manner. 1.4 India’s ports comprise of 13 major ports including Port Blair Port Trust which was declared as a Major Port on 1-06-2010 and around 176 non-major ports along the coast and islands. The Major Ports are under the Union List (Schedule VII) while the Non- Major Ports are under the Concurrent List (Schedule VII) of the Constitution of India. 1 The 13 major ports are administered by the Central Government under Ministry of Shipping. The remaining ports which are referred to as Non-major ports are administered by the nine maritime States and three Union territories within their respective coastlines. A list indicating Major Ports, Non-Major Ports and Ports under Union Territories in India is given as Annexure I. 1.5 The total volume of traffic handled by all the Indian Ports during 2009-10 was 849.9 million tonnes. Non-major ports account for around one-third of the total sea- borne trade. The growth in cargo handled at Major and Non-major Ports in 2009-10 was 5.8% and 35.4% respectively as compared to 2.2% and 3.3% achieved in 2008-09. 1.6 In order to achieve the coveted goal of transforming Indian Ports into world class facilities suited to the requirements of the future economy of India, the Ministry of Shipping, Government of India has initiated many path-breaking measures which will facilitate enhanced private investment, improve the service quality and promote competitiveness, apart from achieving the expansion of capacities in the country. Such measures include formulation of Maritime Policy, revision of various operational policies, preparation of Perspective Plans for the major ports, commissioning of two more major ports one each on the East Coast & the West Coast, introduction of Port Community System (PCS), paperless regime, etc.