Ports and Shipping Industries in India | 3 Huge Stocks in the sector | Adani Ports, JSW…..

The Ports and Shipping industries in India is experiencing rapid growth and playing a crucial role in driving economic development. This growth is primarily fueled by the increasing external trade in the country. In this article, we will explore the importance of the Indian Ports and Shipping sector in driving economic progress. India boasts a coastline stretching over 7,517 kilometers, dotted with over 200 ports. This extensive coastline serves as a crucial route for cargo ships traveling between East Asia and America, Europe, and Africa, as they navigate through Indian territorial waters. The ports sector in India is experiencing significant growth, fueled by the surge in external trade. In the fiscal year 2022, all major ports in India collectively managed a staggering 650.52 million tonnes (MT) of cargo traffic.

Maritime History of India

India boasts a rich maritime heritage, with the earliest reference to maritime activities found in the Rig Veda. Evidence from Indian literature, art, sculptures, paintings, and archaeology further solidify the existence of Indian maritime traditions. A deep dive into the country’s maritime history reveals that the Indian sub-continent held dominance over the Indian Ocean from ancient times up to the 13th century. Indians primarily utilized the sea for trade and commerce rather than political conquests. As a result, the period leading up to the 16th century witnessed peaceful sea-borne commerce and cultural exchanges between nations. The Indian Ocean has always been considered a region of immense importance, with India playing a central role in its history and development.

Ports and Shipping Industries in India

India boasts a significant maritime sector, with 12 Major Ports and over 200 Non-Major Ports spread along its 7500 km coastline and extensive network of navigable waterways. The total cargo handling capacity of Indian ports is approximately 2400 million tonnes per annum (MTPA). These ports handle around 95% (by volume) and 68% (by value) of India’s external trade, making the country a key player in global commerce. India is recognized as one of the top 5 ship recycling countries worldwide, holding a 30% share in the global ship recycling market. It ranks 18th in the world’s shipping tonnage and is the 16th largest maritime country globally. With 12 Major ports and around 200 non-major ports, India boasts a merchant fleet of 1491 seagoing ships with a total capacity of 13 million GT. The classification of ports in India as Major and Minor Ports is based on the jurisdiction of the Central and State governments, as outlined in the Indian Ports Act of 1908. Major Ports are governed under the Major Port Trusts Act of 1963 and are owned and managed by the Central Government, while Minor Ports fall under the Indian Port Act of 1908 and are owned and managed by State Governments. At the Maritime India Summit 2021, 486 MoUs were signed by 22 Maritime Ports/Agencies/Authorities, totaling USD 47.02 billion across various subsectors. India has also established its independent Regional Navigation Satellite System (IRNSS), making it the fourth country in the world to do so. The Indian ports and shipping industry play a crucial role in driving growth in the country’s trade and commerce, showcasing India’s importance in the global maritime landscape.

Major ports in India

• Kolkata
• Paradip
• Visakhapatnam
• Kamarajar (Ennore)
• Chennai
• O Chidambaranar
• Cochin
• New Mangalore
• Mormugao
• Deendayal
• Mumbai
• N.P.T

Jawaharlal Nehru Port Trust (JNPT) Special Economic Zone (SEZ) became the first of its kind operational port-based multi-product SEZ in India.

Government initiatives for the Ports and Shipping industry

The Indian Government plays a crucial role in bolstering the ports sector by implementing various supportive measures.

• One such initiative includes permitting Foreign Direct Investment (FDI) of up to 100% through the automatic route for projects related to port and harbour construction and maintenance.
• Additionally, the government has introduced a 10-year tax holiday for enterprises engaged in the development, maintenance, and operation of ports, inland waterways, and inland ports. These incentives aim to attract investments and promote growth in the maritime industry, ultimately contributing to the overall economic development of the country.

The government has implemented various measures to enhance operational efficiency through mechanization, deepening the draft, and expediting evacuations. The Ministry of Road Transport and Highways, the Ministry of Ports, Shipping & Waterways, and the Ministry of State for Road Transport & Highways have entered into a tripartite agreement to accelerate the development of modern Multi Modal Logistics Parks (MMLP) under the Bharatmala Pariyojna nationwide. The Draft Indian Ports Bill 2022 aims to streamline the management of minor ports currently overseen by state governments. The Lok Sabha approved the Inland Vessels Bill 2021, which seeks to establish a unified legislation for the entire country instead of separate regulations by states. The bill introduces a registration certificate valid nationwide and eliminates the need for state approvals. It also sets up a centralized database for vessel and crew information on an online portal. In July 2021, the Marine Aids to Navigation Bill 2021 was passed by Parliament, incorporating global best practices, technological advancements, and India’s international commitments in the field. In June 2021, the Ministry of Ports, Shipping, and Waterways, along with the Ministry of Culture, signed a Memorandum of Understanding (MoU) to collaborate on the development of the National Maritime Heritage Complex in Lothal, Gujarat. A total of 143 projects have been completed under the Sagarmala Programme, with 190 projects awarded and currently in progress. The National Perspective Plan for Sagarmala includes the development of six new mega ports in the country. Maritime India Vision 2030 (MIV 2030) outlines more than 150 initiatives across 10 themes to address all aspects of the Indian maritime sector and aims to achieve national maritime objectives comprehensively.

Recent Advancements

The arrival of the first cargo ship at the Vizhinjam International Seaport marks a significant milestone in the ambitious project undertaken by the Government of Kerala. The Vizhinjam International Transhipment Deepwater Multipurpose Seaport is designed to handle container transhipment, as well as multi-purpose and break bulk cargo. The port is currently being developed under a landlord model with a Public Private Partnership component, following a design, build, finance, operate, and transfer (“DBFOT”) basis. The private partner, Concessionaire M/s Adani Vizhinjam Port Private Limited, began construction on December 5, 2015. This development signifies a major step forward in enhancing the state’s infrastructure and boosting trade opportunities in the region. The Vizhinjam International Seaport is poised to become a key player in the global shipping industry, facilitating efficient and cost-effective transportation of goods.

Future direction

The ports and shipping industry in India is experiencing a positive trend due to increasing investment and cargo traffic. This indicates a promising outlook for the industry. Service providers offering operation and maintenance (O&M), pilotage, harbouring, and marine assets like barges and dredgers are reaping the benefits of these investments. Utilizing domestic waterways for freight transportation is not only cost-effective but also environmentally sustainable. The government has set a target to operationalize 23 waterways by 2030. There are abundant investment opportunities in the ports and shipping sector in India. These opportunities include shipbuilding, ship repair, ship recycling, development of inland waterways and inland water transport, port and harbour construction projects, as well as port and harbour maintenance projects.