Copyright thehindubusinessline
In today’s maritime world, where does indiastand in terms of business potential harnessed so far? What is the future potential that can be unlocked by Indian industry? India’s maritime sector is a cornerstone of its trade and economic growth, strategically positioned at the heart of global sea routes. Just to give a snapshot, India has a 7,500+ km coastline, with 12 major ports and 200+ non-major ports. Around 95 percent of India’s trade by volume and 70 percent by value moves through the sea. Its location between the Middle East, Africa, and Southeast Asia makes it central to major international trade routes. India’s Blue Economy contributes about 4 per cent to national GDP, covering fisheries, marine tourism, shipping, and seabed exploration which is expected to go up to 9 percent by 2035. What are the measures being taken up to enhance global connectivity and strengthen supply chains? A slew of measures are on the anvil. India is investing in deep-water transshipment ports such as Vizhinjam (Kerala) and Colachel (Tamil Nadu), reducing dependence on foreign hubs like Colombo. The on-going focus on expansion of inland waterways (e.g., Ganga and Brahmaputra) and coastal shipping will cut logistics costs from 13–14 percent of the Gross Domestic Product (GDP) toward global benchmarks of about 8 percent. Ports are a major component under NIP and PM Gati Shakti, the national master plan for integrated multimodal logistics. How do you see improvement in the port infrastructure and and their performance? The Sagarmala Programme will be acting as a fulcrum to further growth to to promote port-led development by modernising existing ports, developing new ones and improving hinterland connectivity. The focus areas include port modernisation and new port development, port connectivity enhancement, port-linked industrialisation and coastal community development. India’s ports’ capacity will almost double to 3000 million tonnes per annum by 2035 from current 1600 million tonnes per annum. What kind of investments are lined up over the next five years in the maritime industry? The Maritime India Vision (MIV) 2030 aims at creating a globally competitive maritime ecosystem and attracting investments of ₹3 lakh to 3.5 lakh crores. The main focus on upcoming investments will be in port capacity and productivity enhancement, modernization of berths, mechanisation, and cargo-handling systems, coastal shipping, inland waterways, and shipbuilding growth. The investment pipeline can be pegged at $200 billion by 2035. How has been the interest of the private investors in port development? Going by the current level of Public-Private Partnership (PPP) in port development is one of the most successful areas. India’s ports have attracted strong private participation as the PPPs account for over 50 percent of capacity at major ports. with the Adani Ports, DP World, JSW Infrastructure, and APM Terminals being the major players. The recent reforms include a new Model Concession Agreement (MCA) to make PPP terms more investor-friendly. India’s port efficiency (turnaround time under 24 hours in major ports) matches global standards. India ranks among the top 20 shipbuilding nations, though it holds less than 1 percent of global market share. The Indian Register of Shipping and Cochin Shipyard have enhanced India’s global presence in ship repair and design. The private sector is increasingly investing in ship maintenance, dredging, and coastal shipping operations. What are the efforts towards a sustainable maritime ecosystem? Already, we have been focusing on digitisation and green port initiatives in line with the Harit Sagar – Green Port Guidelines (2023) to promote sustainable port operations and reduce the carbon footprint of Indian ports. The key measures include use of renewable energy with a target of reaching 60 percent of power needs by 2030, zero liquid discharge systems and waste recycling.Creating of Green hydrogen and LNG bunkering facilities at major ports is also underway.
