GROWTH ENABLERS

INDIA’S ROLE IN THE GLOBAL MARITIME SECTOR:

India is strategically located on the world’s shipping routes with a coastline of approximately 7,500 Km.
India is ranked amongst the top 5 countries supplying trained manpower, with 17% growth in seafarers in the last 3 years.
Of the total cargo handled at Indian ports, over 54% is handled at the country’s 12 public sector Indian ports.
India ranks #2 in ship recycling and #21 in ship building globally.
Indian cruise market has the potential to grow by 8 times over the next decade, driven by rising demand and disposable incomes.

INDIA’S MARITIME INFRASTRUCTURE:

The Shipping sector plays a crucial role in its overall trade and growth, with 95% of the country’s trade volume and 65% of the trade value being undertaken through maritime transport.
India has over 5,000 Km of navigable inland waterways under development and has increased the modal share of cargo from 0.5% to 2% and has witnessed 19% year-on-year growth in car-go volumes over the last 5 years.
34 PPP projects with an investment of USD 3.05 Bn involving capacity addition of 300 Million Tonnes Per Annum (MTPA) are under operations.
13 PPP projects with an investment of USD 978.3 Mn involving capacity addition of 140 MTPA are under implementation.
There are 20 captive projects with an investment of USD 713.8 Mn involving capacity addition of 142.45 MTPA under operation and 7 captive projects with an investment of USD 930.5 Mn involving capacity addition of 55 MTPA is under implementation.
Eight times increase in capacity at major ports to 1,535 MTPA in FY 2019-20 from 172.59 MTPA in FY 1993-94.
In FY 2020, major ports in India handled 704.82 Million Tonnes (MT) of cargo traffic, implying a CAGR of 2.74% during FY 2016-20
As per Union Budget FY 2020–21, the total allocation for the Ministry of Ports, Shipping 7 Waterways stands at INR 1,800 Crore (USD 257.22 Mn)
Trade will boost demand for containers. In FY 20, container traffic in India (for major ports) reached 9.98 TEUs, implying a growth of 1.12% YoY
Infrastructural development will increase demand for iron and steel. In FY20, iron ore traffic at major ports reached 54.99 MT
118 maritime projects requiring USD 7.7 Bn investment have been approved in the last four years.

Under Sagarmala Programme, USD 123 Bn would be invested across 415 projects across the following identified components:

Port Modernization and New Port Development
Port Connectivity Enhancement
Port-Linked Industrialization
Coastal Community Development

PORT INFRASTRUCTURE:

India has 12 major and 200 non-major/ intermediate ports (under state government administration).
Jawaharlal Nehru Port Trust is the largest major port in India, while Mundra is the largest private port.
Out of India’s 205 non-major ports, 44 are functional and strategically located on the world’s shipping routes
India has affected several improvements such as construction of new terminals, development of a regulatory environment etc., which has resulted in a rapid ~35%+ growth in the cruise market in the last three years.

TECHNOLOGICAL ADVANCEMENTS:

As per Maritime India Vision 2030, 50+ digital initiatives will be implemented to transform major ports of the country into ‘Smart Ports’.
Smart ports will be data-driven, use automated devices, Internet of Things (IoT), and leverage analytical technologies for safer and more efficient management of resources.
Enhancing logistics efficiency through technology and innovation, key interventions identified to enhance efficiency include creation of a National Logistics Portal (Marine), functional processes digitalization across maritime stakeholders, Digital-led smart ports, and system-driven port performance monitoring.
By 2030, Major Ports are envisaged to be multi-modal, connected hubs, playing a major role in India’s growth.