India’s Maritime Sector

Syllabus: Infrastructure: Energy, Ports, Roads, Airports, Railways etc

Context: PM Modi announced India’s historic maritime progress with doubled major port capacity, launching initiatives worth ₹2.2 lakh crore for shipping and shipbuilding sectors.

More in News:

  • Cargo movement increased 700% in inland areas; India’s ports considered among best in developing world with improved logistics and operational efficiency.
  • Prime Minister launched initiatives including acquisition of 437 vessels; several MoUs signed for port-led industrialization, sustainability, shipbuilding at Maritime Leaders’ Conclave.
  • JNPT’s handling capability doubled, making it India’s biggest container port alongside improved Kandla port performance.
  • Modi emphasized modern futuristic laws implemented, old laws scrapped to strengthen sustainability, enhance digitization, improve port safety and ease of business significantly.
  • Government prioritizing shipbuilding sector with new finance alternatives, easy credit, encouraging PPP investments and offering incentives to States to attract global investments.

India’s Maritime Sector

  • Overview
    • Backbone of India’s trade: handles ~95% trade by volume, 70% by value through maritime routes.
    • 13 major ports, 200+ minor/intermediate ports; 16th largest maritime nation globally positioned strategically.
    • India occupies key position on global shipping lanes; cargo ships between East Asia-America/Europe/Africa traverse Indian waters.
  • Strengths
    • Ship Recycling
      • Alang recycling yards comply with Hong Kong Convention on Ship Recycling (adopted May 2009).
      • Convention ensures ship recycling doesn’t risk human health, safety, environment addressing hazardous substances.
    • Port Capacity
      • Major ports handle 820 MMT cargo annually (47% growth since 2014); overall capacity doubled to 1,630 MMT.
      • Port capacity expected to increase six-fold to 10,000 MT per annum by 2047 making India top 10 maritime country.
    • Mega Ports
      • Jawaharlal Nehru Port: crossed 10 million TEUs container handling capacity, India’s largest shipping facility.
      • Vadhavan Port (Maharashtra): set to become India’s largest container facility for enhanced capacity.
      • Galathea Bay, Great Nicobar: proposed International Container Transshipment Port capturing global transshipment trade.
    • Operational Efficiency
      • World Bank LPI 2023: India ranked 22nd in “International Shipments” (from 44th in 2018).
      • Container dwelling time reduced to 3 days; vessel turnaround time improved to 0.9 days.
      • 9 Indian ports feature in World Bank Container Port Performance Index 2023; Visakhapatnam ranks top 20 globally.
  • Key Initiatives
    • Maritime India Vision 2030: accelerate growth developing world-class Mega Ports, transhipment hubs, infrastructure modernization.
    • Sagarmala Programme: flagship initiative harnessing 7,500 km coastline, 14,500 km navigable waterways for port-led development.
    • 26 new national waterways identified by IWAI providing alternative transportation easing road/rail congestion sustainably.
    • Major Port Authorities Act 2021: grants greater autonomy to major ports enhancing operational flexibility.
    • Decarbonization initiatives: green hydrogen production hubs at Paradip, Tuticorin, Kandla ports for sustainability.
    • Green Tug Transition Program: phase out conventional fuel-based harbour tugs by 2040 ensuring eco-friendly fleet.
    • National Logistics Portal (Marine): single-window digital platform for stakeholders including cargo, carrier, banking, regulatory services.
    • Sagar Setu App: facilitates seamless goods/services movement enhancing ease of doing business in ports.

Challenges to Maritime Sector

  • Port congestion: lack of container management equipment, ineffective operations causing delays and inefficiencies.
  • Sub-optimal transport modal mix: lack of evacuation infrastructure from large and minor ports hindering connectivity.
  • Sustainable fuel adoption needed for transitioning to net-zero emissions amid environmental concerns critically.
  • Pollution from oil spills, cargo loading/unloading leaks widespread during port operations affecting marine ecosystems.
  • Skilled labour shortage for shipbuilding and repairs work hampering industry growth and competitiveness.
  • Port development displaces people: examples include Mundra (Gujarat), Gangavaram Port (Andhra Pradesh) requiring rehabilitation.

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