PORTS
National Maritime Development Programme
With India's
emerging global aspirations, there has been a sustained rise in
volume of exports with revival of growth in the manufacturing
and improved export competitiveness.
The Government has fixed an ambitious target of US$ 150
billion for exports by the year 2008-09,
to double India's share in world export from merely 0.80
per cent to 1.5 per cent.
The Maritime Sector, including
Ports and Shipping, provide
the platform for transportation of 95 per cent by volume and 70 per cent by value of India's global merchandise trade.
Recognising
the crucial role, which the sector will have to play in achieving
the trade objectives, the National Maritime Development Programme
has been formulated. Under the programme, specific projects, to be taken up for implementation over a defined
period, have been identified.
The total investment involved under the programme is Rs. 1,00,339
crore, of which, Rs. 55,804 crore is for the Port Sector, with
the balance amount for the Shipping and Inland Water Transport
Sectors.
In the Major
Ports, 276 projects, covering the entire gamut of activities,
namely construction/upgradation of berths, deepening of channels,
rail/road connectivity projects, equipment upgradation/modernisation
schemes and other related schemes for creation of backup facilities,
have been identified for inclusion in the programme.
These projects will be taken up for implementation over
a period upto 2011-12. Of the total amount required, about Rs.
34,505 crore is expected from the private sector, mainly in commercially
viable projects like development and operation of berths, terminals,
etc. The objective is to upgrade and modernise the port infrastructure
in India which will enable it to benchmark its performance against
global standards.
In the Shipping
Sector, 111 projects involving a total investment of Rs.44,535
crore, spread over a period
upto 2024-25 have been identified for inclusion in the programme. Of this, Rs. 13,775 crore are expected to be
through budgetary support, Rs.
17,460 crore through internal
and extra budgetary resources and Rs. 13,300 crore through
private investment. The activities covered under the programme,
include tonnage acquisition, maritime training, coastal shipping,
aids to navigation, shipbuilding and building up of IWT infrastructure.
Cargo Traffic Handled in Major Ports
The 12 major
ports handled 423.42 million tonnes of cargo during 2005-06, which
is 10.34 per cent increase
over 2004-05.
The actual traffic achieved in the 4th year
of the X Plan has thus already exceeded the traffic projection
of 415 million tonnes for the terminal year of the X Plan in 2006-07.
International Container Transhipment Terminal at Cochin Port
The Government approved the proposal for time bound implementation of International Container
Transhipment Terminal (ICTT) project at Cochin Port. The approval cleared the way for award of contract for development,
management and operation of the project on Build, Operation and
Transfer (BOT) private prayers.
Port Trust will deepen the channel so as to receive ships
of size 8000+ TEUs. The Prime
Minister laid the foundation stone for the project on February
16, 2005. On completion,
the terminal will have capacity for handling 3.0 million Twenty
Feet Equivalent (TEUs) of container traffic.
The areas
at Vallarpadam and Puthvypeen have been notified as SEZ on December
29, 2005 The detailed
survey work and Detailed Project Report (DPR) for preparation
of Rail connectivity at an estimated cost of Rs. 246 crore is
underway. A budgetary
allocation of Rs. 50 crore has
been made in
2006-07 for this purpose.
The DPR for
the National Highway connectivity at an estimated cost of Rs.
374 crore, to be financed wholly by NHAI, is being revised to
incorporate the comments of KCZMA (Kerala Central Zone Management
Authority). The environmental clearance is awaited. Phase-I of capital dredging to
increase draft upto 12.5 m has been completed on February
12, 2006. Preparation of DPR for Phase II of capital
dredging, which envisages
a draft of 14.5 m on completion at an estimated cost of Rs. 379
crore is under preparation which will enable the port to receive
ships of size 8000+ TEUs.
Sethusamudram Ship Channel Project
India does
not have a continuous navigable route around the peninsula within
her own territorial waters due to a sub-merged reef called Adam's
Bridge near Rameswaram between south-eastern coast of India and
Talaimannar in Sri Lanka. The average depth of sea in this portion is
only about 3 meters and this compels the ships to go around Sri
Lanka, increasing the distance for movement between east and west
coasts of India.
Sethusamudram
Ship Channel Project envisages dredging of a ship channel in the
shallow portion of sea to connect the Gulf of Mannar and Bay of
Bengal through Palk Bay, so that the ships, depending on draught
required, moving between east and west coast of India, could have
a continuous navigable sea route around the peninsula within India's
own territorial waters. This will save upto 424 nautical miles (one nautical mile is equal
to 1.852 kms.) of distance and upto 30 hours of sailing time for
ships between east and west coast.
The project will give boost to coastal movement of cargo. The project will enhance the national security and would lead to
overall economic development of the region.
This project will fulfil 150 years' old dream of the people
of Tamil Nadu, in particular, the peninsular India in general.
An SPV by
name and style 'Sethusamudram Corporation Limited' (SCL) has already
been incorporated on December 6, 2004 to raise finance and to
undertake implementation of the project. The environmental clearance
for the project was received on March 31, 2005 and the CCEA approved
the proposal on May 19, 2005. The estimated cost of the project is Rs. 2,427.40 crore, with a completion period of about three and
a half years. The project
was inaugurated on July 2, 2005 by the
Prime Minister, Dr. Manmohan Singh.
An amount of Rs. 151.78 crore have been sanctioned towards
the equity contribution of the Central Government.
A part of
dredging work amounting to about 13.5 million cu. Mtrs., of dredging,
was assigned to the Dredging Corporation of India, on nomination
basis, who have started the work of dredging from July 2, 2005. More than 47 lakhs Cu. Mtrs. of dredging work has been undertaken.
Tenders were
invited for balance part of dredging but could not be finalised
due to conditions put-forth by the bidders and, therefore, tenders
have been discharged. Notice
for pre-qualification has been issued afresh. The work order for
50 Nos. of borehole sub-soil investigations along the channel
alignment at Adam's Bridge, has been issued on April 24, 2006.
Third Container Terminal at
Jawaharlal Nehru Port
The Government approved the proposal for award
of contract for the redevelopment of Bulk Terminal into Container
Terminal project on Build, Operation and Transfer (BOT) basis
on June 22, 2004. On completion, the terminal will have capacity
for handling about 1.3 million TEUs of container traffic per annum,
thus adding substantially to the capacity of the port to handle
container traffic.
Partial operation
in the terminal have commenced on March 14,2006. The terminal is expected to be fully operational
by August, 2006.
Modern deep-water port in West Bengal
Considering
the fact that two dock systems of Kolkata Port cannot meet the
long term requirement of their hinterland, mainly due to inadequate
draught in the Riverine channel used by the port, the Department
of Shipping has agreed 'in principle' with the requirement of
a modern deep draft port facilities in the State of West Bengal.
It has been decided to undertake a detailed feasibility
study in order to select a suitable location for setting up of
a Greenfield port on the coastline of West Bengal on international
competitive bidding basis. The
notice for inviting Global 'Expression of Interest' is to be issued
shortly. A sum of Rs.
10 crore has been kept in the Annual Plan 2006-07 for the purpose.
Kandla Container Terminal
The Government
has approved the proposal of Kandla Port Trust to award the contract
for development and operation of container terminal at Berth Nos.11
and 12 on Build-Operate-Transfer (BOT) basis. On completion, the terminal will have capacity
to handle 0.6 million TEUs.
Restoration measures - Post Tsunami
Out of 56
berthing structures in A&N Islands, 47 structures have been
restored. Reconstruction works are still in progress
and some projects for creation of additional facilities are being
taken up on Turn Key Basis.
Deepening of Channel
The Government
has approved the deepening and widening of the Main Harbour Channel
and JN Port Approach Channel of Jawaharlal Nehru Port at Navi
Mumbai to facilitate large size vessels, with carrying capacity
of upto 6000 standard size Twenty Feet Equivalent Units (TEUs)
container boxes to call at the Port. The present available depth in the 22.8 kms
long channel, part of which is common to both Mumbai Port and
Jawaharlal Nehru Port, is (-) 11 mtrs. below chart datum (BCD).
After completion of the
dredging process, the channel
will have depth of (-)13.9 mtrs. BCD at
the entrance, which will gradually come down to (-)12.8
mtrs BCD at the end of JN Port approach channel towards its berth.
The entire project, including
dredging, installation of navigational aids, modification to Vessel
Traffic Management System, and provision of Environmental Management
Plan, is estimated to cost Rs. 800 crore.
The project, which is crucial to the plans for development
of Jawaharlal Nehru Port as a container hub on India’s West Coast,
is expected to be completed by the year 2008.
The Government
has decided to deepen the Approach Channel and the Entrance
Channel to width of 300 m and depth of (-) 18.70 m at approach
and (-) 17.10 m at entrance channel in order to accommodate 1,25,000
DWT vessels at Paradip Port (At a later stage the Channels can
be deepened to (-) 21.20 m at approach and (-) 19.80 m at entrance
to accommodate handling of cape size vessels of 1,85,000 DWT). The project is estimated to cost Rs. 154.842 crore and is to be
completed within 72 weeks from date of sanction. The project will
be implemented with Government of India contributing 1/3rd
of project cost as grant and 1/3rd as loan.
The balance 1/3rd may be mobilised by PPT as
loan from the market (or contributed through internal resources).
Dredging Corporation of India Limited
Ø
DCI managed almost 100 per cent capacity utilisation of its dredgers
Ø
In 2004-05, DCI achieved a turn over of Rs. 552 crore while
the estimated turn over for 2005-06 is about Rs.530 crore.
Ø
DCI earned a profit of Rs.113 crore (after tax) for 2004-05.
The profit for 2005-06 is estimated to be Rs.160 crore
(provisional).
Ø
DCI made foray in international dredging market for undertaking
dredging and land reclamation work in Bahrain. It has also chartered its dredger to foreign
dredging companies. As
a result, DCI earned foreign exchange of about Rs. 120 crore during
last two years.
Ø
Tonnage tax benefits have been extended to dredgers with effect
from 2005-06. This would further facilitate expansion of dredging
capacity of DCI and other Indian dredging companies.
Ennore Port Limited (EPL)
Since the
new Government assumed charge, the port has constructed additional
temporary facilities to handle 0.5 MTPA of POL and 2 MTPA of iron
ore utilising the existing infrastructure.
Total capacity augmentation during the period was 2.5 MTPA.
The Second Stage Development consisting of the following
FOUR Terminal have been initiated:
Ø
Marine Liquid Terminal of 3 MTPA capacity
Ø
Coal Terminal of 8 MTPA capacity
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Iron Ore Terminal of 12 MTPA capacity
Ø
Container Terminal of 18 MTPA (1 MTEUPA) Capacity
The Major
common infrastructure proposed to be developed during the second
stage are:
Ø
Capital Dredging (Phase-I) – Dredging to – 15m CD along side
Berths of the New Terminals.
Ø
Capital Dredging (Phase-II) – Further Dredging to suit Cap
size Vessels for Iron Ore Traffic.
Licence has
been granted for development of a 3 MTPA Marine Liquid Terminal
at an estimated cost of Rs.200 crore on a BOT basis. Bid Process
for award of licence for development of an 8 MTPA Coal.
Terminal and a 12 MTPA Iron Ore Terminal on BOT basis are
also in the final stages. ‘In-principle’
approval of the Government has already been conveyed for Capital
Dredging (Phase-I) at an estimated cost of Rs.90 crore.
The proposal for setting up of an LNG Terminal at Ennore
Port at a cost of Rs. 2700 crore (including Re-gasification Plant)
has also been approved ‘in-principle’.
The Port
has already received the NOC
and Recommendations of State Coastal Zone Management Authority
for the projects included in its second phase of development.
The port has carried out several studies on Road and Rail Connectivity
for meeting the enhanced ultimate cargo movement.
The work
on four-laning of TPP Road, a critical link to Ennore Port has
commenced through NHAI. Ennore
port earned an Operating Income of Rs. 92 crore (Provisional)
for the year 2005-06 repeating the last year performance. Ennore
Port has achieved operating surplus of Rs.65 crore (Provisional)
in 2005-06 as against Rs.61 crore for 2004-05. The port earned Rs 19 crore (provisional)
as Net Profit (before tax) during 2005-06 as against Rs.10
crore profit earned in 2004-05.
Rail Road Connectivity of Major Ports
The Government
has taken the initiative to review the infrastructure providing
connectivity to all Major ports with a view to augmenting infrastructure, keeping in view the future
demands of traffic. For
this purpose, a Committee of Secretaries (COS) was set up under
the chairmanship of Member Secretary (Planning Commission).
In its report, which has already been accepted by the Committee
on Infrastructure, headed by the Prime Minister, COS have recommend
that each Major Port should preferably have minimum four lane
road and double line rail connectivity and this should be established
in fixed time frame.
The COS have
identified the nine road connectivity projects aggregating 286.12
km costing Rs 1,661 crore to be completed as per schedule. Four projects, aggregating 364.2 km at an estimated
cost of Rs. 1,357 crore, have also been identified for expeditious
approval.
Beside above,
COS have also identified the eight ongoing/sanctioned rail connectivity projects measuring 961.56
km and costing Rs. 1,780.68 crore that need to completed as per
schedule. Five projects, aggregating 263.66 km at an estimated
cost of Rs. 939 crore, have also been identified for expeditious
approval.
DEPARTMENT OF SHIPPING
Tonnage
Tax for Shipping Industry
The Government has rationalised the fiscal regime for
Indian Shipping Industry by introducing Tonnage Tax system from
this financial year 2004-05, in order to provide Indian Shipping
industry a level playing field vis-à-vis International shipping
companies and also facilitate the growth of Indian tonnage.
Steady growth in Shipping tonnage
In response to introduction of Tonnage tax regime and
also due to current shipping boom, Indian Tonnage has steadily
grown in the last 18 months. Indian tonnage as on June 1, 2004
was 7.05 million Gross Tonnage (GT), which has increased to 8.59
million GT as on May 1, 2006.
Dredgers have also been included in the Tonnage Tax
regime w.e.f. 2005-06.
More than Rs.300 crore of incremental Gross Value Addition (GVA)
to the Indian economy has taken place in two years by the incremental
tonnage growth.
Job creation in Shipping Sector
Since January 1,2005, 2.33
lakh training mandays have been generated, which will benefit
the youth looking for jobs in maritime sector.
Implementation
of ISPS Code
The ISPS Code provides for the international framework
through which ship and port facilities can cooperate to detect
and deter acts which threaten security in the maritime transport
sector. The Code has been introduced internationally with effect
from July 1, 2004 in India.
In India,
the ISPS Code covers all Major Ports, Minor Ports and Ships catering
to international trade. India
is one among the first few countries along with Singapore to complete
implementation of ISPS Code, ensuring that there will be no hindrance
in Indian exports and imports.
The ISPS Code has been implemented in 12 major ports, 35
minor ports, 205 ships and 3 shipyards catering to international
trade.
Expansion
of SCI
One LR-I Crude oil Tanker and two Very Large Crude Carrier (VLCCs) have
been inducted in the fleet of Shipping Corporation of India (SCI)
in the last one and a half year.
Acquisition of two more VLCCs (worth Rs. 1,136 crore) has
been approved by the Government in September, 2005.
Record Profit for SCI
Shipping Corporation of India
(SCI), the largest Indian Shipping company and a Public Sector
Undertaking has registered a profit of Rs.1419.91 crore during
the financial year 2004-05.
Tonnage
Acquisition in pipeline
Ø
2 capsize bulk carriers,
Rs. 550 crore
Ø
6 Handymax bulk carriers,
Rs. 818 crore
Ø
2 Container Vessels;
Rs. 528 crore
Ø
6 LR-I Product Tankers;
972 crore
Ø
12 vessels (4 Aframax,
4 Panamax, 2 Container Vessels
and 2 LR-II Crude oil Tankers) worth Rs. 2,870 crore under Block approval route
Indian
Maritime University (IMU)
Keeping in
view India's position as leading merchant navy supplier to global
needs and the stiff challenge faced by India from South Eastern
Countries, like Philippines, China, etc.,
the Expert Committee, constituted for this purpose, has recommended
formation of IMU by an Act of Parliament under the aegis of Ministry
of Shipping, Road Transport and
Highways. Further
action on this line is continuing.
Cruise
Shipping Policy
A High Power
Steering Group, under the Chairmanship of Shipping, Road Transport
and Highways Minister,
with Union Minister of State for Tourism as Co-Chairperson, has been set up. The first
meeting of this Group was held on
December 14, 2004
in which the draft Concept Paper on Cruise Shipping was discussed
at length. A Workshop was also convened in Mumbai on
February 12, 2005 which was attended by Members of the Consultative
Committee, various stakeholders, hospitality industry, shipping
lines, cruise lines, tour operators and shipping agents.
As a sequel to these developments, a National Cruise Shipping
Policy is on the anvil.
Safeguarding
of Seafarers’ interests
Two major initiatives have been taken by way of framing of Recruitment of
Placement of Seafarers Rules, 2005 under Merchant Shipping Act
1958 and Ratification
of ILO Convention No. 108, concerning Seafarers' Identity Document.
Manning Agent
Rules
Merchant
Shipping (Recruitment and Placement of Seafarers) Rules, 2005
under Section 95 of Merchant Shipping Act 1958, have been notified
with a view to safeguarding the seafarers from exploitation by
unscrupulous agents.
Ratification of ILO Convention No.
108
This Convention was ratified on
December 22, 2004. Ratification of this Convention enables Indian
seafarers, holding a valid Seafarers' Identity Document, to enter
or transit those countries, which have ratified this convention
without passport/visa.
National
Maritime Complex (NMC) proposed
At present, India has ships
flying her flag in 698 ships having more than 8.30 million Gross
Tonnage. Similarly, there are 12 major ports in the country, in
addition to a large number of non-major public and private ports
within the domain of the various States,
to showcase various facets of Indian Maritime Industry.
It is proposed to have a National Maritime Complex spread
over approximately 400 acres of land at Chennai.
MoC
between India and US
A Memorandum
of Cooperation (MoC) on Maritime Transport Science & Technology
was signed on April 14, 2005 between the Government of the Republic
of India and the Department of Transportation of the United States
of America.
The MoC is intended to make
important contribution towards encouraging and advancing safe,
economical, efficient and environmentally sound transportation
systems; and to promote scientific and technological cooperation
and collaboration in the field of maritime transport science and
technology.
Aids to Navigation
Ø
Four new Light Houses have been established:
q
Vakalpudi Light House (Kakinada) at a cost of Rs.1.5
crore;
q
Light Houses in Palk Bay (Tamil Nadu Coast) at
Manmalkudi,
Passipatnam, Rameswaram at a cost of Rs. 1.5 crore
Ø
Work Order issued for establishment of Vessel Traffic
Service for Gulf of
Kachch (Gujarat) at a cost of Rs. 117 crore.
Ø
11 RACONS (Radar Beacons) have been established
along Indian Coast
line in the last one year increasing the number of RACON to
41.
Ø
Automation and remote control of 47 Light Houses
in Jamnagar District with 7 Remote Control Stations have been
completed.
Ø
Automation and Remote Control in Mumbai and Andaman
and Nicobar Districts being taken up shortly.
Shipbuilding sector in uptrend
The global
shipbuilding sector is in uptrend and all the major shipyards
in the world are fully booked till 2008-09.This favourable scenario
has also resulted in good order book position for Indian shipyards.
The order book position of Cochin Shipyard Ltd(CSL) at
present amounts to Rs.953 crore (including subsidy).
Hindustan Shipyard Limited (HSL) has entered into a contract in May, 2004
for construction of 2 Nos. Bulk Carriers at a contract
price of US$ 35,028,000. This was the first major Shipbuilding
order secured by HSL after a gap of more than a decade. The contract also had the option clause for
2 more vessels. This option
clause has been made effective by entering into another contract
in January, 2005 for construction of 2 more 30000 DWT Bulk Carriers.
Again in April, 2005 HSL has been able to sign another
contract with the same company for construction of 6 Nos. 53000
DWT Bulk Carriers at a total price of US$ 153,181,800/-.
In addition to this, HSL has also secured an order from
National Institute of Ocean Technology (NIOT) on 30/4/2004 for
construction of 1 No. Buoy Tender cum Research vessel at a contract
price of Rs.21.99 crore.
Hoogly Dock & Port Engineers Ltd. has also delivered a 400 passenger-cum-100 ton Cargo Vessel “m.v.
KALIGHAT” to Andaman and Nicobar Administration in the first week
of April, 2005.
Inland
Water Transport
Ø
Fixed schedule services on NW-1 (between Haldia and Patna)
which began in January, 2004 are continuing.
Ø
7 terminals on NW3 (Rs. 10.32 crore) commissioned.
Ø
Permanent Terminal at Patna (Cost Rs. 25 crore) almost complete.
Ø
Permanent Terminal at Pandu, Guwahati (Cost Rs. 30 crore) to
be completed by March 2006.Two cargo vessels (cost Rs. 2.7 crore
each) and two container cranes (Rs. 5.8 crore)
added.
Ø
Construction of High Level jetty at Patna awarded to CPWD in
August 2005 at a cost of Rs. 13.70 crore
Ø
Container cargo vessel 300 MT (delivery in November 05) at
a cost of Rs. 2.74 crore.
Ø
One Hydraulic Surface Dredger for NW – 2 at a cost of Rs. 5.5
crore (delivery by December 2005)
Ø
Three New National Waterways –Kakinada-Pondicherry with the
cost of Rs.542 crore, Geonkhali-Charbatia stretch of East Coast
Canal with the cost of Rs.1,526 crore and Karimganj-Lakhipur with
the cost of Rs.46 crore .in the pipeline.
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