IBEF印度的航运业和港口英文20181036页1mb

Summary of India's Ports Sector

Core Content

India's ports sector is a critical component of the country's international trade, handling approximately 95% of the nation's trade volume. The sector is undergoing significant development and transformation, driven by government initiatives, private participation, and the need for modern infrastructure to meet growing demand.

Main Points

Major Ports

• There are 12 major ports in India, with 6 on the Western coast and 6 on the Eastern coast.
• These ports are under the jurisdiction of the Government of India, except Ennore, which is administered under the Companies Act 1956.
• By FY18, the total capacity of major ports was 1,452 million tonnes, and cargo traffic reached 679.36 million tonnes, growing at a CAGR of 2.73% from FY08-18.
• FY19 (up to September 2018) saw a 5.12% year-on-year increase in cargo traffic to 343.26 million tonnes.
• Net profit at major ports increased from Rs 1,150 crore (US$ 178.4 million) in FY13 to Rs 3,413 crore (US$ 529.6 million) in FY18, with an operating margin rising from 23% to 44%.
• The turnaround time for ships at major ports dropped from 107 hours in FY12 to 64 hours in FY18.

Non-Major Ports

• There are 200 non-major ports, with about one-third operational.
• These ports are under the jurisdiction of state governments through their Maritime Boards.
• Non-major ports are gaining market share, with their traffic contributing 42% of total cargo traffic in FY18.
• Cargo traffic at non-major ports grew at a CAGR of 10.01% during FY07-17.

Infrastructure and Development

• The Sagarmala programme aims to develop six new mega ports and enhance port connectivity.
• Total investment in Indian ports by 2020 is expected to reach US$ 43.03 billion, with US$ 18.6 billion allocated to major ports and US$ 28.5 billion to non-major ports.
• 21 dry port projects were under implementation as of February 2018.
• Road and rail connectivity projects under Sagarmala are being developed in coastal states, with significant investment and progress.

Private Participation

• Private sector involvement is increasing, with FDI of 100% allowed under the automatic route.
• Public-Private Partnership (PPP) projects are operational and under implementation, with a total estimated cost of US$ 6.1 billion and capacity of 240.72 MTPA.
• Adani Group, the largest private port operator, has been involved in several projects, including the Vizhinjam International Seaport and the Mundra port.
• DP World and other international players are also investing in Indian ports.

Cargo Traffic and Types

• Solid cargo contributes the largest share of traffic at major ports, followed by liquid cargo and containers.
• In FY18, solid cargo was 302 MT, liquid cargo was 244 MT, and container cargo was 134 MT.
• In FY19, these figures were 120.19 MT, 108.14 MT, and 60.06 MT, respectively.
• Container traffic increased by 8.08% in FY18 to 9,135 TEUs, and by 7.75% in FY19 to 4,867 TEUs.

Growth Drivers and Opportunities

• Increasing trade is a key driver, with India's total external trade reaching US$ 763 billion in FY18 and US$ 3532.52 billion in FY19.
• Growing demand for crude oil and coal is expected to increase POL traffic and iron ore traffic.
• Special Economic Zones (SEZs) and Coastal Economic Zones (CEZs) are being developed near ports, enhancing logistics and industrial activities.
• Green energy initiatives aim to make all 12 major ports operate on renewable energy by 2019, with 200 MW of wind and solar capacity planned.

Key Industry Organizations

• Indian Ports Association (IPA): Provides a platform for major port authorities and related stakeholders.

  • Address: 1st floor, South Tower, NBCC Place, Bhishma Pitaham Marg, Lodi Road, New Delhi - 110 003
  • Phone: 91-11-24369061, 24369063, 24368334
  • Fax: 91-11-24365866
  • Email: ipa@nic.in, ipadel@nda.vsnl.net.in

• Indian Private Ports and Terminals Association (IPPTA): Represents private port operators and terminals.

  • Address: Darabshaw House, Level-1, N.M. Marg, Ballard Estate, Mumbai 400 001, India
  • Tel. No: 022-22610599
  • Fax. No: 022-22621405
  • Email: secretary@ippta.org.in

Useful Information

• TEU: Twenty Foot Equivalent Unit, a standard measure of containers.
• CAGR: Compounded Annual Growth Rate.
• FDI: Foreign Direct Investment.
• Sagarmala: A national initiative to develop port infrastructure and improve logistics.
• NMDP: National Maritime Development Programme.
• POL: Petroleum, Oil and Lubricants.
• SEZ: Special Economic Zone.
• OandM: Operation and Maintenance services.
• LNG: Liquefied Natural Gas.
• Draft: The vertical distance between waterline and the bottom of a ship.
• Waterfront availability: The length of the coastline where ships can rest and unload cargo.
• Dry dock: A facility used for ship repair and maintenance.

Notes and Glossary

• FY: Indian Financial Year (April to March).
• Exchange rates are provided for both fiscal and calendar years, with the INR equivalent of one US$.
• FDI is encouraged with a 100% automatic route and 10-year tax holiday for port-related enterprises.
• Specialist terminals are being developed for specific cargo types, such as LNG and coal.
• The landlord port model allows private companies to operate port terminals, with the government acting as a regulator.
• The National Maritime Agenda 2010-2020 targets 3,200 MMT of port capacity by 2020.

Conclusion

India's ports are experiencing robust growth and increased private participation, supported by government policies and infrastructure development. With a focus on capacity expansion, efficiency improvements, and green energy, the sector is well-positioned for sustainable growth and enhanced competitiveness in the global trade landscape.