National Maritime Development Programme formulated
Sethusamudram Ship Channel Project Commissioned
capacity addition in major ports during 2005
- Year End Review 2005
The
announcement of National Maritime Development Programme commissioning of
Sethusamudram Ship Channel Project, Deepening of Jawaharlal Nehru Port and
Paradip Port, Capacity addition in major ports, rationalisation of fiscal
regime by introducing Tonnage Tax System (TTS), setting up of high power
steering group for Cruise Shipping Policy
marked the major activities of the Department of Shipping in the year
2005.
National
Maritime Development Programme
The Minister of Shipping, Road
Transport & Highways Thiru T. R. Baalu released the document of National
Maritime Development Programme (NMDP) on 30th December 2005. which will facilitate enhanced private investment,
improve service quality and promote competitiveness. The policy also aims at
encouraging more investments in port projects at substantially higher levels to
meet the medium and long term objectives. With this objective, the Department
of Shipping has finalized the list of projects to be taken up in major Ports
under National Maritime Development Programme up to 2011-12.
These projects will involve total investment of Rs.55,804 crores. The Programme will be implemented through
public/private partnership in two phases. Public investments will be primarily
for common user infrastructure facilities in the ports like deepening &
maintenance of port channels, construction of breakwaters, internal circulation
systems of cargo within the ports, rail and road connectivity from ports to hinterland
etc. Private investments will be in the areas where operations are primarily
commercial in nature like construction, management and operation of berths/
terminals, etc. The private investment
in the Programme is expected to be Rs.34,505
crores, budgetary grant Rs.3609 crores and investment by the ports is
expected to be Rs.13,772 crores. The
balance investment is expected to come from the National Highways Authority of
India, Railways and other organizations.
NMDP
for the Shipping, Shipbuilding/Ship repair & IWT sector contains a shelf of
111 projects / schemes involving an expenditure of Rs.44,535 crore. It has a span of 20 years which makes it
co-terminus with the National Maritime Policy.
Around 70% of the expenditure will be met out of private and IEBR
investment (Rs.13,300 crore Private Investment, Rs.17,460 crore IEBR
investment). Remaining about 30%
(Rs.13775 crore to be exact) will come from Gross Budgetary Support. After implementation of NMDP it is expected
that India’s Shipping Tonnage will stand at 35 million GT by 2025, modal shares
of coastal shipping and IWT will be around 20% and 4% respectively of the
overall inland transport and India will have shipyards with adequate capacity
to build up to VLCC size vessels and cater to not only the domestic requirement
but also export requirements.
PORT SECTOR
International Container Transhipment
Terminal at Cochin Port
Licence
Agreement for development of International Container Transhipment Terminal at
Cochin Port on Build Operate and Transfer (BOT) basis was signed between Cochin
Port Trust and India Gateway Terminal Private Limited, a subsidiary of Dubai Ports International (DPI) on 31st
January, 2005. The estimated investment
by the BOT operator is Rs.2118 crores. On completion, the terminal will have a
capacity to handle 3 million Twenty Feet Equivalent Units (TEUs) of container
cargo per annum. It will be able to
handle large size ships with capacity upto 8,000 TEUs. Hon’ble Prime Minister laid the foundation
stone for the project on 16.2.2005.
Sethusamudram Ship Channel Project
The
Sethusamudram Ship Channel Project envisages cutting of a channel to connect
the Gulf of Mannar and Bay of Bengal through Palk Bay so that ships moving
between east and west coast of India could have a continuous navigable sea
route within India’s own territorial waters. This project will fulfill 150
years’ old dream of the people of Tamil Nadu in particular and the peninsular
India in general. The total project
cost is Rs.2427.40 crores. So far, Central Government has invested Rs.51 crores
and the other joint venture partners have contributed Rs.37 crores.
The
total length of the channel is 167 Kms and the designed depth of the channel is
12 M below CD. It is a two way channel having width of 300 mtrs. To achieve the designed depth, dredging is
required in 89 Kms. stretch involving 82.5 million cubic meters (Cu.M.). The project will lead to saving in
navigational distance upto 424 nautical miles (1 nautical Mile = 1.852 kms.)
and the saving in time upto 30 hours. The project will give boost to coastal
movement of cargo. The project will also enhance the national security and
would lead to overall economic development of the region. Dredging in one section of the channel has
already commenced from 2nd July, 2005. More than 27 lakh Cu.M. have been
dredged so far. Bids for other dredging contract packages are under
evaluation. The project is expected to
be completed by December, 2008.
Deepening of Channel Projects
Concerted
measures to deepen channels in various major ports have been taken during the
year. These include the following:-
Government
has accorded approval to the project for deepening and widening of the JN Port
approach channel at an estimated cost of Rs.800 crores. After completion of the
project, the depth in the channel will increase to 13.9 mtrs at the entrance
and 12.8 mtrs at the JN Port end which by using the tide will enable container
vessels with capacity upto 6000 TEUs and large size liquid cargo vessels to
dock at the Port.
Government
has accorded approval to the project for deepening of the Paradip Port channel
at an estimated cost of Rs.154.842 crores. After completion of the project
vessels with draught upto 16 mtrs will be able to dock at the Port as against
12.5 mtrs draught vessels at present. This will enable the Port to receive
1,25,000 DWT vessels as against 65,000 DWT vessels at present.
Capacity Addition in Major Ports
The
aggregate capacity in major ports as on 31.3.2004 was 389.50 million tonnes per
annum. During 2004-05, the aggregate capacity increased by 8 MTPA to 397.50
million tonnes. The aggregate capacity is expected to go upto 405.50 MTPA by
March, 2006. Further, the third container terminal at Jawaharlal Nehru Port and
oil jetties at Vadinar (Kandla Port) and Ennore Port which are under
implementation will result in addition of 25.60 MTPA capacity by the end of the
Tenth Plan period.
Other
important projects for creation of capacity include construction of East Quay 8
and East Quay 9 berths on BOT basis in Visakhapatnam Port, construction of
temporary facilities to handle 0.5 MTPA of POL and 2 MTPA of Iron-Ore at Ennore
Port, providing four new 15 tonne wharf cranes at a cost of Rs.13.4 crores at
Chennai Port, providing 4 Nos. Rubber Tyred Gantry Cranes and replacing 8 Nos.
at port operated container terminal at JNPT, modernisation work on marine oil
terminal berths (J-1, J-2 and J-3) at Mumbai Port, deepening and widening or
Sogal channel to bring 11.2 mtrs. draft vessels at Kandla Port.
Traffic Handled at Major Ports
The
traffic handled by all Major Ports during April - November, 2005 was 269.42 MT,
registering a growth of 10.76% as compared to the corresponding period of the
previous year. The maximum increase was
in Kolkata Port registering a growth of 17.12%.
Private Public Participation in Port
Infrastructure
In tune with its economic
liberalization policy, the Government of India has opened up its major ports
for private sector participation in a big way to attract funds, latest
technology, better managerial practices and speed up creation of capacities.
Foreign direct investment upto 100% under automatic route is permitted for
construction and maintenance of ports and harbours. So far 17 projects involving private sector investment of Rs.6,130.20
crores have been approved out of which 14 projects have become operational and
further 20 projects involving an investment of Rs.4,442 crores are in the
pipeline.
Tariff Authority on Major Ports
Tariff
Authority for Major Ports (TAMP) has been set up as a statutory authority under
the MPT Act to for fixation and revision of tariff in major ports with a view
to provide a level playing field for port operators including major ports and
private operators.
The
Government has issued revised tariff guidelines in March 2005 to be followed by
TAMP, after wide consultations with all Major Port Trusts, private terminal
operators, representative bodies of port users etc.
SHIPPING SECTOR
Tonnage Tax for Shipping Industry
Government
has rationalized 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. 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
1.6.2004 was 7.05 million Gross Tonnage(GT) which has increased to 8.32 million
GT as on 1.12.2005
Job creation in Shipping
Sector
1,29,000 training mandays have been generated since 1.1.2005 which
will benefit the youth looking for jobs in maritime sector.
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.
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 Indian Maritime University (IMU) by an Act
of Parliament under the aegis of Ministry of Shipping, Road Transport &
Highways. Further action on this line is on.
Cruise Shipping Policy
High
Power Steering Group under the Chairmanship of
Minister of Shipping, Road Transport & Highways with Union Minister
of State for Tourism as Co-Chairperson has been set up last year. A Workshop
was convened in Mumbai on 12.2.05 which was attended to 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. safeguard the seafarers from exploitation by
unscrupulous agents.
Memorandum
of Cooperation between India and United States of America on Maritime Transport
Science & Technology
A Memorandum of Cooperation (MOC) on
Maritime Transport Science & Technology was signed on 14th April,
2005 between the Government of the Republic of India and the Department of
Transportation of the United States of America.
The
MOC envisages cooperation and collaboration between the two countries in the
following fields:- Sipping and
intermodal Operations, Maritime Safety and Security, Port Management, Dredging
and Dredger construction, Ship Recycling, Maritime Training and Education, Technological
Developments related to Maritime sector, Inland Water Transport, Other Fields
of Mutual Interest.
Aids to Navigation
Four new Light Houses have been established:
- Vakalpudi Light House (Kakinada) at a cost
of Rs. 1.5 crores;
- Light Houses in
Palk Bay (Tamil Nadu Coast) at Manmalkudi, Passipatnam, Rameshwaram at a cost of Rs.
1.5 crores
Work Order issued for establishment of Vessel Traffic Service for
Gulf of Kachch (Gujarat) at a cost of Rs. 117 crores.
11 RACONS (Radar Beacons)
have been established along Indian Coast line in the last one year increasing
the number of RACON to 41.
Automation and remote
control of 47 Light Houses in Jamnagar District with 7 Remote Control Stations
have been completed.
Automation and Remote
Control in Mumbai and Andaman and Nicobar Districts being taken up shortly.
Shipbuilding
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) which consists of 5 number of Tug boats for M/s. A.A.
Turki Corporation (AATCO)Saudi Arabia, 6 nos. 30,000 DWT Bulk Carriers for M/s.
Clipper Group Management Ltd., Bahamas and 4 nos. of Platform Supply Vessels
for M/s. Seatankers Management Co. Ltd., Norway.
Hindustan
Shipyard Limited (HSL) has entered into a contract in May,2004 with M/s
Goodearth Maritime Limited, Chennai, 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 crores.
Hoogly
Dock & Port Engineers Ltd. has also delivered 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
Fixed
schedule services on NW-1 (between Haldia and Patna) which began in
January,2004 are continuing.
7
terminals on NW3 (Rs. 10.32 crore) commissioned.
Permanent
Terminal at Patna (Cost Rs. 25 crore) almost complete.
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.
POL
tanker 300 tonnes (Rs. 2.80 crore) to be delivered next month.
Construction
of High Level jetty at Patna awarded to CPWD in August 2005 at a cost of Rs.
13.70 crore
Container
cargo vessel 300 MT (delivery in November 05) at a cost of Rs. 2.74 crore.
One
Hydraulic Surface Dredger for NW – 2 at a cost of Rs. 5.5 crore (delivery by
December 2005)
4
nos. Shore Mobile cranes acquired for NW-1 &2 at cost of Rs. 2.4 crore
Acquisition
of 5 nos. crane pontoon is expected by December 2005 at a cost of Rs. 7 crore.
Total investment in IWT by IWAI Rs.74
crore in 2004-05.
Three
New National Waterways in the pipeline.
VBA/BS
(Release ID :14684)