Ports require well-developed multimodal logistics systems and hinterland connectivity for efficient and quick evacuation of cargo. This ensures lower cost of transportation, fewer delays, and increased port throughput thereby playing an important role in accelerating the economic growth of the country. A well developed and efficient multimodal logistics system and hinterland connectivity are critical for improving the productivity of ports. Government of India realizes the importance of strengthening hinterland connectivity and is taking several steps for the development of required infrastructure.
Presently port hinterland connectivity in India is mainly based on surface transport i.e. road and rail, wherein, inland waterways and coastal shipping share is low and the sectors are still in their infancy. Pipelines are predominantly used only for transporting liquid and oil products namely crude oil, refined petroleum products and natural gas. In India, smooth connectivity to ports assumes even more importance as the cargo generating economic centres are mainly located deep in the hinterland instead of in the coastal region. This results in long lead distance and further increases the logistics cost and time delay risks.
Under Sagarmala Programme, endeavor is to provide enhanced connectivity between the ports and the domestic production/consumption centres. More than 235 connectivity projects at an estimated investment of more than Rs. 2.35 Lac Crore have been identified.
Indian Railways (IR) is the third largest railway network in the world under a single management with more than 100,000 kms of track length. The cost of transporting cargo over railway is lower than road in case of long lead movement (>1,000 km). This makes railways as one of the most preferred mode of evacuation of large scale of cargo from ports. Government of India has made efforts to promote rail connectivity particularly to promote container movement. Railway already is mainstay of movement of bulk cargo. In 2006, the Government announced the Container Train Policy allowing private operators to operate container trains on the Indian Railways network.
The development of Inland Container Depots (ICD) or Dry Ports or Multimodal Logistics Parks (MMLPs) at strategic locations at key nodes on road and rail network has critical role to play in improvement of hinterland connectivity. These MMLP will also help in realizing the immense potential of the Indian waterways. These ICDs / MMLPs are expected to an important in reducing the current imbalance in terms of freight movement among the road, rail and IWT.
The high growth of container traffic in India shows the significance of MMLP in the future port cargo evacuation and hinterland movement. Thus many MMLP projects are under various stages of development. At present, under the Sagarmala Programme, 15 Multi-Modal Logistics Parks (MMLPs) are being developed at the cost of around INR 3,561 Cr. Out of these, 7 MMLPs are being implemented by CONCOR, 6 MMLPs by Port Trusts, 1 MMLP by Siliguri Jalpaiguri Development Authority and 1 MMLP being developed jointly by Govt. of Assam and MoRTH. These ICDs or MMLP offers immense opportunities for private sector to invest and operate ICDs/MMLPs.
India has 41,456 kms of pipelines, which includes 9,572 kms of crude oil pipelines and 17,421 kms of gas pipelines . Pipelines are the preferred mode of transportation for Crude Oil, POL and Gas. It has certain distinct advantages such as, lower cost of transportation, lower transit losses, safety, reliability and environmental friendliness. In India, the pipelines carry crude oil from the ports to the land locked refineries located in the hinterland. In 2014-15, pipelines carried about 35% of the total traffic (in volume terms) at the Major Ports of India. Sagarmala project has identified the need to redistribute supply of in order to reduce regional supply-demand imbalances through increased coastal shipping to the south and creation of additional pipelines to move product to the deficit areas in the north. Three high-potential Pipeline projects have been identified for transportation of crude oil and petroleum products across long distances. Each of these pipeline projects namely – 1 Crude Project at Salaya-Mathura (cost INR 1584 Cr.), 1 Crude Project at Chennai Petroleum Corporation (cost INR 500 Cr) and 1 Product Pipeline at Hyderabad-Paradip (cost INR 3000 Cr). The Salaya–Mathura pipeline is planned to be expanded to cater to future expansion of Matura, Koyaliand Panipat refineries and Product pipeline of ~5MTPA capacity from Paradip to Hyderabad will cater to the AP deficit.
Coastal Shipping, as a complementary means of transport is not only a commercial necessity but also a treasured asset in times of emergency. The Coastal Shipping has emerged as priority maritime sector for Govt. of India. The long coastline is dotted with 12 Major ports and about 200 non major ports. This presents an immense potential for low cost transportation and distribution of cargo through coastal shipping, especially the transportation of bulk cargoes.
Approximately 95% of the country’s trade by volume and 68% by value is moved through Maritime Transport. Sagarmala programme is also promoting coastal shipping which is not only cheaper in comparison to other modes of transport but also environment friendly. Sagarmala estimates that the coastal shipping to have potential of additional 130 MMTPA by 2025 from current level of movement of 94.5 MTPA.
Under Sagarmala multiple steps have been taken or identified to promote coastal shipping.
Major event partners who are organizing and supporting MIS 2021
Copyright © Maritime India Summit . All Rights Reserved.