17 November 2019

Table of Contents for Industry Focus - Port & Port Equipment





Interaction- Mansukh Mandaviya, Union Minister for Shipping

 

We expect India’s trade to grow at a rapid pace from the current 1000 MTPA to 2500 MTPA by 2025

 

We bring you excerpts from an interview of MANSUKH MANDAVIYA, UNION MINISTER OF STATE FOR SHIPPING, posted in the latest Sagarmala Post. “There is an ardent need to develop India’s maritime infrastructure to ensure increased movement of cargo through coastal shipping and use of the country’s inland waterways. Keeping this in mind, the Union Ministry of Shipping has unveiled a roadmap that would cater to India’s projected cargo traf?c of 2,500 MMTPA by 2025.”

 

 

 

 

 

 

 

The Sagarmala project launched by the government in 2016 has been designed to harness the maritime and waterways potential of the country. Three years down the line, where have we reached and what potential is being tapped in the coming years?

 

Under the Sagarmala Programme, 610 projects have been identified so far which are expected to mobilize more than Rs. 7.8 Lac Cr of infrastructure investment;

 

Out of the 610 projects, 118 projects (Cost:Rs. 24,926 Cr.) have been completed and 375 projects (Cost: Rs. 4.34 lac Cr) are under various stages of implementation and development;

 

The total Port capacity has increased from 1716 MTPA in 2015-16 to 2406 MTPA in 2018-19;

 

The average Turn-around Time (TAT) at Major Ports has reduced from 87 hours in 2015-16 to 60 hours in 2018-19.

 

Operating surplus at Major Ports has increased from Rs. 4296 Cr. in 2015-16 to Rs. 6530 Cr. in 2018-19;

 

Coastal shipping volume has gone up from 83 MTPA in 2015-16 to 120 MTPA in 2018-19; Multiple Ease of Doing Business initiatives have been undertaken. These include: A centralized web-based Port Community System (PCS) has been operationalized across all Major Ports, which enables seamless data flow between the various stakeholders through a common interface. An upgraded version PCS1x has been launched in December 2018;

 

Deployment of Drive through container scanners is now being undertaken at Major Ports to facilitate the quick evacuation of cargo; Elimination of manual gate forms;RFID-based gate access; The National Technology Centre for Ports Waterways and Coasts (NTCPWC) has been established at IIT Chennai to act as a technology arm of the Ministry and provide technological support to ports, IWAI and other related institutions; The Centre for Inland and Coastal Maritime Technology (CICMT) is being set-up at IIT Kharagpur for developing technology for building ships for coastal and inland waterways.

 

A roadmap for 3300+ MTPA of port capacity to cater to 2500 MTPA of cargo, 7000+ kilometres of roads and 8000+ kilometres of rail line for port connectivity, cargo movement of 370 MTPA through domestic waterways and industrialisation of 2200 acres of port land by 2025 has been prepared.

 

 

 

Several landmark events have occurred in the recent past in terms of enhancing the multi-modal transportation model in the inland waterways. Could you kindly elaborate the measures implemented?

 

Logistics costs in India constitute about 14% of total GDP, which is much higher than in developed economies at about 6-8%. The adoption of multimodal transportation by integration of road, rail and inland waterways can lower logistics cost for individual cargo parcels.

 

Moreover, by aggregating cargo into larger parcels, economies of scale can be channelised to further lower the per unit logistics cost.

 

To encourage multimodal transportation on National Waterway (NW)-1, IWAI is developing three multimodal terminals where road, rail and IWT converge. The details of such terminals are given below:

 

Varanasi Multimodal Terminal: Till date, Phase 1 has been completed and inaugurated by the Hon’ble Prime Minister on November 12, 2018. The selection process for the concessionaire on PPP mode for Operation, Maintenance and Development (Phase 2) is in advanced stage. The scheduled bids submission date is September 09, 2019;.

 

Sahibganj Multimodal Terminal: The Phase1 of this project is near completion and may be inaugurated in September 2019. The selection process for the concessionaire on PPP mode for Operation, Maintenance and Development (OMD) (Phase 2) has been initiated.

 

Haldia Multimodal Terminal: This project is scheduled to be completed by December 2019.

 

Apart from these, the IWAI is planning to develop two freight villages adjacent to Varanasi and Sahibganj Multimodal Terminals to improve the integration between various supply chain elements, especially, various modes of transportation. It will also facilitate logistics cost (and time) optimisation for shipper and freight forwarders by offering the option of multimodal logistics and cargo aggregation. Such freight villages provide modal choice to the shipper and increase ef?ciency in logistics supply chain by reducing logistics cost and time.

 

The land acquisition process for both the freight villages have been initiated.

 

 

 

Amongst the many reasons that hinder our shipping companies from being competitive is the inadequate infrastructure at our ports in terms of jetties, adequate deep draft for vessels, cargo handling and rapid extraction facilities. The Sagarmala project was designed to speci?cally address these issues. What steps have been taken in the past three years towards development of our ports?

 

With a 7500-km coastline dotted with major and minor ports, there is always a need to modernise and upgrade the facilities for maritime trade. Considering the urgent need for an upgrade, the Ministry has instituted the following:

 

Berthing Policy was released in 2016 after which benchmarking of port capacity with global standards was done. The declared capacity of major ports increased from 1066 MTPA to 1359 MTPA on 1st April 2017.

 

Under Project Unnati, the global benchmarks were adopted to improve the ef?ciency and productivity KPIs for 12 major ports. A total of 116 initiatives have been identi?ed, out of which, 91initiatives were implemented to unlock around 80 MTPA capacity Port Master Planning was carried out at 12 Major Ports and 106 port capacity expansion projects (Cost: Rs. 62,342 Cr) were identi?ed for implementation over the next 20 years and are expected to add 765 MTPA to the major port capacity.

 

Out of these 106 port master plan projects, 26 projects (Cost: Rs.15,831 Cr) have been completed adding 161 MTPA and 35 projects (Cost: Rs. 17,023 Cr) are under implementation.

 

Ease of doing business initiatives include Introduction of DPD and DPE to enable faster evacuation from ports. Changes to Model Concession Agreement to address issues raised by PPP operators. Installation of container scanners, Gate automation systems, and various IT initiatives.

 




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