The Maritime India Vision 2030 , a 10-year plan to overhaul the Indian maritime sector. We want to be the manufacturing hub as we continue to promote “Make in India”, shipping in that will play a leading role to make that dream possible.
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Why is the maritime sector so significant for India?
We know that the coastline of India represents 1.05% of the world’s coastline, making us the fastest growing economy in the world. India’s maritime sector accounts for 95% of EXIM trade volume (import and export). Our maritime sector is also an important job opportunity creator. India accounted for 10.4% of world ocean trade in the fiscal year 2019. It represents 9.03% of the total number of seafarers in the world. This makes India an indispensable part of the shipping ecosystem. India’s position in the global maritime sector is vital to international trade.
What is the current status of Indian ports?
The growth of port capacity in India has promoted the development of maritime trade. In the fiscal year 2019, the capacity of Indian ports was 2,377 million tons per year (mtpa). It handled 1,281 mtpa of traffic. The twelve main ports have a throughput of 1,514 metric tons. They supervised 699 mtpa of traffic and only used 46.2% of the resources. The unimportant port represents the capacity of 863 mtpa. They supervised 582 mtpa of traffic, representing a 67% utilization rate. Therefore, key improvements in policy, investment, operations, and technology are crucial. This will make it easier for India to be at the forefront of global maritime trade.
What does the Maritime India Vision 2030 entail?
The Ministry of Ports, Navigation, and Inland Waterways have launched MIV-2030. MIV-2030 forecast cargo traffic to reach 2,570 mtpa by 2030. The vision outlines 10 general themes. It covers more than 150 initiatives, covering all aspects of the Indian maritime sector. This is an effort to define and realize national maritime objectives. These initiatives are mainly directed at the development of port ecosystems, port operations and services, inland waterways, and ships and cruise ships.
What are the projects/initiatives being planned?
Major Port Clusters – For ports, world-class infrastructure will form the backbone of the transformation. Following the trend of large global ports, it plans to develop four large port clusters with a capacity of more than 300 mtpa. These clusters will come up in Gujarat, Maharashtra, Tamil Nadu, and West Bengal-Odisha. These groups were selected after evaluation of their potential for industrialization connectivity. As the industry has developed towards large ships, the drafts of all major ports in India have been specifically increased.
India’s strategic location has long required the development of trans-shipment hubs to improve the efficiency of maritime trade. Therefore, the Ministry will work to develop trans-shipment hubs in Southern India. Currently, approximately 75% of India’s trans-shipment cargo is handled in ports outside of India.
These ports include Colombo, Singapore, and Klang. This increases the cost / TEU of the EXIM player. [The TEU unit or 20 feet equivalent is a precise unit used to measure the cargo capacity of container ships and container terminals. The TEU is a shipping container whose internal dimensions are approximately 20 feet long, 8 feet wide, and 8 feet high.] Therefore, there are plans to increase the transshipment capacity through –
- By accelerating operationalization of such ports
- By development of TS ports at Kanyakumari and Campbell Bay as alternative ports.
- By increasing the capacity of existing ports like Cochin
Port automation, seamless freight transportation, and paperless transactions have become staples of the new world. Currently, the lack of digitization, the lack of real-time information, and the limited standardization of port procedures are hurting our trade. Therefore, steps have been identified in MIV to improve business in the maritime industry. The National Logistics Portal (Ocean) will be launched as an integrated platform for all EXIM stakeholders, thus achieving a 100% paperless process. It will become the focus of national cargo tracking, cloud-based document management, digital payment, etc. In addition, more than 50 smart intervention measures have been identified, such as predictive maintenance, deployment of automatic dock cranes, etc., to transform major ports into smart ports.
Manufacturing and logistics
- Specific steps to promote Aatmanirbhar Bharat by increasing manufacturing and reducing logistics costs have been identified. Areas with the potential for port-driven industrialization have been identified, and these areas are spread over 6,000 acres. This will complement projects aimed at reducing logistics costs.
e.g.- To develop the infrastructure of port-specific products to promote the mechanization of marine transportation, automation, and operation.
- MIV-2030 also targets building safer and environmentally sustainable ports.
Few important measures to develop Green Ports include –
- By increasing the share of renewable energy in port operations
- By sustainable use of dredging material
- By reducing freshwater consumption and emissions
- By promoting the development of ‘zero accident’ ports
- By real-time monitoring of HSE KPIs [Health and Safety KPIs (Key Performance Indicator)]
- In terms of shipping, MIV aims to make India a leading ship repair and recycling center, and aims to increase the total tonnage of ships built in India by more than 15 times.
This would be achieved through –
- By channelizing of domestic demand for ship-building and repair
- By leveraging Right of First Refusal (RoFR) rules under Aatmanirbhar Bharat Scheme
India has shown strong shipbuilding capabilities, and many shipyards provide high-quality ships worldwide. Maintenance and recycling clusters will be developed. To this end, the use of waste materials will be promoted by revising BIS (Bureau of Indian Standards) regulations and re-development of ship recycling infrastructure at Alang.
Trade and cooperation
To strengthen regional maritime trade and cooperation, it is planned to establish a BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) center in India. This will promote investment in infrastructure and trade agreements with the BIMSTEC countries. Efforts will also be made to develop and export India’s core capabilities, such as information technology, shipbuilding, and maritime training, to assist other developing countries.
Inland water transport
- – India has a variety of inland water transport (IWT) options, including rivers, canals, backwaters, streams, and tidal inlets. These provide an environmentally friendly mode of freight and passenger transport logistics with lower operating costs. The government has prioritized the development of 23 national waterways (NW) with enormous transportation potential in the next 10 years.
NW 1 (Ganga-Bhagirathi-Hooghly system) and NW 2 (Brahmaputra) hold immense importance as they bridge neighboring countries with India’s hinterland.
These waterways will be connected to form the Eastern Waterways Connectivity Transport Grid. This would help us to get cost-effective EXIM with Bangladesh, Bhutan, Myanmar, and Nepal.
Vision 2030 also identifies the development potential of industries such as cruise tourism (river and ocean cruises). To this end, the government has taken various measures, such as rationalizing port fees, relaxing the navigation of foreign ships, accelerating immigration, and developing cruise terminals. Theme-based coastal and island tours have also been identified as priorities. “MIV 2030” targeted that the share of Indian seafarers should extend within the global talent pool. Advances in maritime trade will lead to the development of land-based combat capabilities. Therefore, a training program focused on maritime skills will be developed in cooperation with the industry.