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Port Infrastructure Developement: Make in India

- India has over 7,500 km of coastline and 199 ports handling over 90% of trade. Cargo traffic is growing at 4.4% annually. - The government has invested INR 503 billion over the last 4 years in 118 port projects, including 55 public-private partnerships. - Projected cargo traffic by 2021-22 is 1695 million metric tonnes, requiring investment of over USD 10 billion to expand cargo handling capacity by 901 million metric tonnes.

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91 views

Port Infrastructure Developement: Make in India

- India has over 7,500 km of coastline and 199 ports handling over 90% of trade. Cargo traffic is growing at 4.4% annually. - The government has invested INR 503 billion over the last 4 years in 118 port projects, including 55 public-private partnerships. - Projected cargo traffic by 2021-22 is 1695 million metric tonnes, requiring investment of over USD 10 billion to expand cargo handling capacity by 901 million metric tonnes.

Uploaded by

RajeevRanjanSingh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PORT

INFRASTRUCTURE
DEVELOPEMENT
Make in india

Ports Infrastructure Development


India has a long coastline of about 7,517 km along the
western and eastern shelves of the mainland
With 12 major ports and 187 minor ports, India ranks
16th among maritime countries

95% of the countrys trade by volume and 70% by


value moves through maritime transport

The increasing trend of Western countries moving


their manufacturing functions to low-cost countries,
and the likely prospect of India emerging as a
manufacturing outsourcing hub, is expected to
contribute to the growth of the countrys marine
industry, according to an Ernst & Young-NMDC report
titled Indian CoastlineA New Opportunity. In terms of
volume, cargo traffic at Indian ports increased to 883
million tonnes in 201011 from 850 million tonnes in
200910, according to the Ministry of Shipping.

During the 12th Five-Year Plan (20122017) about Rs


1,80,626.23 crore is expected to be invested in the
ports sector

The ports sector received foreign direct investment


(FDI) worth USD 1,635.08 million between April 2000
and July 2011, which was 1.13% of the total FDI
inflows into India, according to the Department of
Industrial Policy and Promotion (DIPP)

The major ports are Chennai, Ennore and Tuticorn (in


Tamil Nadu); Cochin (in Kerala); Kandla (in Gujarat);
Kolkata (in West Bengal); Mumbai Port and Jawaharlal
Nehru Port Trust (in Maharashtra); Mormugao (in Goa);
New Mangalore (in Karnataka); Paradip (in Orissa);
Vishakhapatnam (in Andhra Pradesh); and Port Blair (in
the Andaman & Nicobar Islands).

Among the major ports, Kandla in Gujarat leads in


terms of cargo volumes (82 million tonnes in 201011)
followed by Vishakhapatnam in Andhra Pradesh (68
million tonnes). Cargo volumes at all major ports
increased in 201011. Among the non-major ports,
Mundra Port and Special Economic Zone Limited
(MSEZL), in Gujarat, was the largest operator (52
million tonnes in 201011), followed by Essar Ports (40
million tonnes), which has two facilities at Vadinar
and Hazira, both located in the state of Gujarat.
All the major ports in the country have good road and
rail connectivity. Moreover, the capacity and quality of
the existing connectivity is being further strengthened
to facilitate the smooth flow of cargo.

100% FDI is allowed in port development projects


100% income tax exemption from income tax is
extended to companies investing in port
infrastructure.

a 10-year tax holiday has been given to enterprises


engaged in the business of developing, maintaining
and operating ports, inland waterways and inland
ports.

Some of these foreign players are Maersk (JNPT,


Mumbai), P&O Ports (JNPT, Mumbai and Chennai),
Dubai Ports International (Cochin and
Vishakhapatnam) and PSA Singapore (Tuticorin).

One of the prominent Indian port companies include


Mundra Port and Special Economic Zone Limited,
Ennore Port Limited, Mormugao Port Trust, Kakinada
Seaports Limited, Krishnapatnam Port Company
Limited, Dhamra Port Company Limited and Adani
Petronet (Dahej) Port Private Limited. There are
several port terminal operators too, with some of the
big companies being TM International Logistics
Limited, Chennai International Terminals Private
Limited, Nhava Sheva International Container Terminal
Private Limited, Chennai Container Terminal Private
Limited, Mundra International Container Terminal
Private Limited, Sical Iron Ore Terminals Limited,
International Seaports Haldia Private Limited, Vizag
Seaports Limited and Ennore Tank Terminals Private
Limited.

According to estimates by the Ministry of Shipping,


cargo volumes in India are expected to breach the 1billion tonne mark in the 201112; the 2-billion tonne
mark by 201617; and 2.4 billion tonnes by 201920.

Going forward, growth of traffic at Indian ports is


expected to be driven mainly by higher volumes of
coal (to meet requirements of the large number of
current and proposed thermal power projects based
on imported coal); containers (given the market
under-penetration and potential for cost savings);
crude oil and POL (large upcoming refinery capacity);
fertilizers (strong domestic demand and low selfsufficiency); and steel (mega projects proposed in the
eastern part of the country). Most of the expected
traffic growth in India is based on domestic demand
drivers, which are expected to spur growth in various
port-related logistics and service activities, although
competitive pressures in these business lines would
remain high.

PORTS AND SHIPPING


MAKE IN INDIA - PORTS AND SHIPPING
SUMMARY
118 projects involving investment of INK 503 Billion
approved in last four years.
55 Public Private Partnerships (PPPs).
12 major ports.
64 non-major ports handling EXIM cargo.
1605 Million Metric Tonnes in cargo capacity (201516).
INR 175 Billion invested in last three years

REASONS TO INVEST
Projected cargo traffic to be handled by Indian ports
by 2021-22 is 1695 Million Metric Tonnes as per the
report of the National Transport Development Policy
Committee - an increase of 643 Million Tonnes from
2014-15.
2422 Million metric tomles of cargo handling capacity
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.
Special Economic Zone (SEZs) are being developed in
close proximity to several ports - comprising coalbased plants, steel plants and oil refineries.

STATISTICS
Over 7500 Kilometres of coastline with 12 major and
about 200 non-major 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
Cargo traffic.
An unprecedented increase in cargo-handling capacity
of Major Ports - 965.36 Million Metric Tootles in March,
2016 from 575 Million Tonnes in 2009.

GROWTH DRIVERS
Increase trade activity and private participation in
port infrastructure
Rising cargo traffic and an increase in the number of
non-major 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.

FDI POLICY
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.

SECTOR POLICY
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:
1. Development of two major ports as well as two port
hubs.
2. Plans to implement full mechanisation of cargo
handling and movement at ports.

KEY PROVISIONS IN BUDGET 2O15-16 :


Allocation of INR 116.35 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 INR 42 Billion.
Exemptions under the Income Tax Act for
Infrastructure Development, under Section 80IA.

INVESTMENT OPPORTUNITIES
Port development the opportunity to serve the spilloff 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.

FOREIGN INVESTORS

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)

AGENCIES

Directorate General of Shipping


Indian Ports Association (IPA)
Inland Waterways Authority of India (IWAI)
Directorate General of Lighthouses & Lightships (DGLL)

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