Green channel
Exclusive setup for cargo movement outside custom bonded ports
This page has been last updated on - Nov 06, 2019
Snapshot
Sailing towards success
India is strategically located on the world’s shipping routes with a coastline of approximately 7,517 km. Maritime transport handles around 70% of India’s trading in value terms. The government has also introduced various fiscal and non-fiscal incentives for enterprises that develop, maintain and operate ports, inland waterways and shipbuilding in India.
The Government launched the ambitious Sagarmala Programme in March 2017, with the vision of port-led development and growth of logistics-intensive industries. Under Sagarmala Programme, $ 123 bn would be invested across 415 projects across the following identified components:
- Port Modernization and New Port Development
- Port Connectivity Enhancement
- Port-Linked Industrialization
- Coastal Community Development
The projects identified under Sagarmala Programme are expected to have the following impact:
- Mobilization of over 61.6 bn of infrastructure investment
- Double the share of inland and coastal waterways in the modal mix
- Yield cost savings of $ 5.3-6.1 bn in logistics annually
- Boost merchandise exports by $ 110 bn
- Create 4 mn new direct jobs and 6 mn indirect jobs
100% FDI allowed under both government and automatic route.
For further details, please refer FDI Policy
679.4 MT
Cargo traffic at major ports (2017-18)
4.6 %
Cargo traffic growth
1400
Indian fleet strength (no. of vessels - coastal & overseas as on Dec 2018)
1451.2 MTPA
Capacity (2017-18)
Annual cargo traffic doubled to 1 bn tonnes p.a. over the decade starting 2005
Seaborne trade in India has grown at twice the global growth rate of 3.3%
16th largest maritime country in the world
Industry Scenario
Cargo traffic on the rise
India has 12 major and 200 non-major/intermediate ports (under state government administration). Jawaharlal Nehru Port Trust is the largest major port in India, while Mudra is the largest private port. Cargo traffic in the country is expected to rise to 2500 MT by 2024-25 from 1,072.23 MT in 2015-16. The major ports in India collectively handled 679.4 MT of cargo during 2017-18 compared to 648.4 MT a year ago; thereby registering a growth of 4.8%.
- 118 maritime projects requiring $ 7.7 bn investment have been approved in the last four years
- Major ports recorded highest ever capacity addition of 100.4 MMTPA in 2016-17
Share in traffic for major commodities (June 2018)
- POL: 30.4%
- Container: 20.63%
- Thermal coal: 16.3%
- Coking coal : 7.5%
- Iron ore: 6.5%
Growth Drivers
National waterways
Development of existing & 106 notified waterwaysSagarmala initiative
6 new ports identified under Sagarmala ProgrammeCruise shipping
Cruise shipping potential expected to growSpecialist terminal based ports
Cargo like LNG with specific equipment & high capital costsRising trade
Increased trade & private participation in port infra development
Recent Announcements
Logistics service provider Schenker India, subsidiary of German DB Schenker is going to double its warehousing capacity from present 3.5 mn sq ft across 53 warehouses and deploy technical solutions for improving efficiency and enhance processing speed.
Bengaluru based logistics startup Blackbuck raises $ 150 mn in a funding round led by Goldman Sachs Investment Partners and Accel US.
Essar Ports to invest $ 70 mn in Hazira Port capacity
Dubai’s port operator DP World along with The National Investment and Infrastructure Fund (NIIF) is buying Continental Warehousing Corp (Nhava Seva), one of the largest companies in the logistics sector in India for $ 400 mn from its PE investors.
Centralized Web-based Port Community System (PCS)
Single window system between stakeholders of the port community
Increasing private participation
Increasing private participation in port logistics services
‘Landlord Port’ model
Port authority as regulator & operations carried by private companies
World-class infrastructure
For full mechanization of cargo handling and movement
Investible Projects
Investment Opportunities in Ports & Shipping
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Projects
112
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Opportunity
$16.55 bn
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Promoters
13
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District
44
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Private Projects
2
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Govt. Projects
110
Major Investors
Data on Map
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FAQ
Frequently
Asked Questions
What is the role of the Directorate General of Shipping?
The Directorate General of Shipping deals with implementation of shipping policy and legislation. Its objectives are as follows:
1) Matters affecting merchant shipping & navigation.
2) Measures to ensure safety of life and ships at sea.
3) Development of Indian shipping.
4) International convections relating to maritime matters.
5) Provision of facilities for training of officers & rating of Merchant Navy.
6) Development of Sailing Vessels Industry.
7) Regulation of Ocean freight rates in overseas trade.What are incentives available for Ship Building Industries in India?
Apart from dedicated ship building parks/plot offered by various state maritime boards on concessional terms, Ministry of Shipping (Government of India) has also offered various incentive for Ship Building Industry India. Shipbuilding Financial Assistance Policy aims to provide financial assistance to Indian shipyards for shipbuilding contracts signed between 1 April 2016 to 31 March 2026, including the said dates. The financial assistance will be 20% of the ‘Contract Price’ or the ‘Fair Price’, whichever is lower, as determined by international valuers, for any vessel built in India subsequent to its delivery. The quantum of financial assistance shall reduce by three percent after every three years of the policy. This policy shall be in force for a period of 10 years from the date stipulated in the guidelines formulated by the Government for the purpose.
For details please refer to guidelines for 'Implementation of Shipbuilding Financial Assistance Policy' (as amended in October 2017) link.
Is there a plan to develop port based smart cities in India?
Yes, there are plans to develop Smart Industrial Port Cities. Initially such cities will come up near Kandla and Paradip ports.
What are the initiatives taken by the Indian government in ports sector?
Government of India has launched major initiatives to upgrade and strengthen ports and shipping in the country including enabling policy measures to facilitate private investments in this sector. Some of the key initiatives like Sagarmala Project, dredging and navigation for 111 inland waterways , financial assistance for ship building in India, promotion of cruise shipping and cruise terminals in India, incentives for coastal shipping and development of 13 Coastal Economic Zones along the coastline of India.
What are Coastal Economic Zones?
Coastal Economic Zones (CEZ) are geographically contiguous districts within a State that are either coastal districts or districts having a strong port linkage. CEZs would link Major and Non-major ports, Industrial units and evacuation infrastructure into a single system at regional level. CEZs would fuel port-led industrialization program. Ministry of Shipping had identified 13 CEZ along the Indian coastline under Sagarmala Program. For details, please refer to link.
Stakeholders
Government Ministry/ Department
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