STUDY ON DEVELOPMENT OF COASTAL SHIPPING
& MINOR PORTS
FINAL REPORT
DECEMBER 2003
A Division of Tata Sons Limited
Acknowledgements
The Consultants would like to acknowledge the assistance and co-operation
provided by
Mr. G. S. Sahni Director General of Shipping
Mr. Susheel Kumar Joint Secretary (Shipping),
Ministry of Shipping
Mr. P. K. Srivastava CMD, Shipping Corporation of India
Mr. S. R. Gaur Director, Ministry of Shipping
Mr. T. C. Dhiman Director (Port Development),
Ministry of Shipping
Mr. Anantha Prasad N. S. Deputy Director General of Shipping
Mr. P. H. Krishnan Deputy Director General of Shipping
Mr. Rajiv K. Gupta Assistant Director General of Shipping
Mr. S. S. Rangnekar Director, Shipping Corporation of India
Mr. B. D. Dubla Assistant Director General of Shipping
We also express special thanks to the members of the Steering Committee and
other Stakeholders for their guidance. Also, the Consultants wish to express
particular gratitude to Mr. Anantha Prasad N. S. as well as Mr. Rajiv K. Gupta and
Mr. B. D. Dubla for their special interest, tremendous assistance and co-operation
during the entire course of this Study.
Project Team
Mr. Alok Bhardwaj Project Manager-cum-Integrated Transportation System
Expert
Dr. P. G. Patankar Project Adviser
Mr. H. N. Fotedar Project Adviser & Ports and Shipping Expert
Mr. S. N. Srikanth Project Advisor and Senior Partner - Hauer Associates
Capt. K. P. Kekre Coastal Shipping Operations Specialist
Mr. S. Bose Associate Consultant Ports & Shipping
Dr. K. A. Raju Associate Consultant Transportation Planning
Mr. R. Muralidhar Associate Consultant Cargo Movement and Trade
Route Analyst Hauer Associates
Mr. Y. M. Kolhe Associate Consultant Transportation Planning
Mr. Vipul Soni Associate Consultant Market Analyst
We also express special thanks to the members of the Steering Committee and
other Stakeholders for their guidance. Also, the Consultants wish to express
particular gratitude to Mr. Anantha Prasad N. S. as well as Mr. Rajiv K. Gupta and
Mr. B. D. Dubla for their special interest, tremendous assistance and co-operation
during the entire course of this Study.
Project Team
Mr. Alok Bhardwaj Project Manager-cum-Integrated Transportation System
1.2 OBJECTIVES OF THE STUDY
The Ministry of Shipping vide letter no. SS/16020/1/2001 - SL initiated a study on
Development of Coastal Shipping and Minor Ports through the Directorate General of
Shipping (DGS) to capitalise the potential of this industry with the following Terms of
Reference:
1) Identifying cargo that can be diverted to coastal shipping from other modes of
transport such as road / rail and the steps needed to achieve such a diversion.
2) Estimating future traffic potential for coastal movement in next ten years, identifying
the nature and volume of cargoes with their origins and destinations including
availability of return cargo.
3) Study the availability of coastal routes and explore the possibility of developing new
ones to meet existing and potential demand.
4) Identifying minor ports (either existing or yet to be established), for use by coastal
shipping keeping in view rail/road connectivity and hinterland linkage and to
recommend the infrastructure needed at such ports.
5) Examining the possibility of establishing an integrated transport system between
coastal ships and Inland Water Transport and suggest specific locations for this.
6) Preparing an action plan that will operationalise the above and to give broad cost
estimates thereof.
1.3 APPROACH AND METHODOLOGY
1.3.1 Consultative Approach
The nature of the study and the approach taken, placed significant emphasis on
stakeholder expectations and concerns. A combination of visits to all the nine maritime
states, stakeholder workshop, meetings with stakeholder organizations, and review of the
steering committee have all assisted in conducting the study and drafting
recommendations for development of coastal shipping and minor ports. The Consultants
had interactions with various stakeholders during the course of study. A list of selected
stakeholders is provided in Table 1.1
Chapter 1: Introduction
1 - 5
The incorporation of the workshop in the methodology has provided the Consultants with
an invaluable validation and feedback mechanism at a critical point in the study. This has
ensured that the process has been transparent and participative. Moreover, the study has
been conducted in three phases to facilitate ongoing course correction, based on feedback
received through stakeholder meetings.
1.3.2 Phased Process
Consultants conducted the study in a phase wise approach.
a) Phase I: Review Phase
In this phase the Consultants reviewed the macroeconomic scenario, transport sector,
coastal shipping, ports and inland waterways. The review mainly focused on the
following aspects
review previous studies in coastal shipping
growth patterns of the commodity movement by various types of modes
review of major and minor ports in terms of the type of cargo, and quantity they are
handling
inventory of selected minor ports in terms of the infrastructure facilities and
hinterland connectivity
usage of coastal shipping in the current situation by large corporate and growth of
their usage over a period of time
review of expansion plans of large industrial establishments along the coastal belt of
India
progress of various national level transportation projects and their status in
operational terms
trade and navigable coastal routes
coastal shipping taxation and regulatory aspects
The required data was collected with the help of Ministry of Shipping through the DGS
office from various Governmental departments, quasi-governmental organizations, major
and minor ports, Indian Ports Association etc.
The review phase provided a prognostic base for further analysis and to identify the
existing coastal shipping scenario.
b) Phase II: Analysis Phase
In this phase, critical analysis of the available data with an orientation to achieve the basic
objective to develop coastal shipping and minor ports was carried out. The analysis was
carried out for:
movement of goods by different modes of transport
nature and volume of existing coastal traffic and its origin and destination patterns
inputs from the field visits and stakeholders
future traffic potential
economics of coastal movement
integration of coastal shipping with inland water transport
Chapter 1: Introduction
1 - 6
The emphasis was given on economics of coastal movement with a view to analyse cargo
amenable for diversion.
c) Phase III: Action Plan
In this phase, recommendations were made based on the analysis and inputs from the
stakeholders. It would be appropriate to preface this study with the understanding and
perceptions that have guided the Consultants examination and analysis of issues that
surfaced during the course of series of interactive and highly informed discussions and
meetings with stakeholders in shipping and ports and of course, also after intensive study
of primary and several volumes of secondary data. The action plan phase included
Selection of minor ports for development
Broad cost estimates
Recommendation with a time bound action plan
d) Deliverables
The deliverables for this study are inception presentation, review meetings, stakeholders
workshop, Draft Final Report and the Final Report for which the Consultants were guided
by the Steering Committee during the 6 months of the study.
Chapter 1: Introduction
1 - 7
Figure 1.3 STUDY OUTLINE
REVIEW
Macro Economic Review
Transport Sector Review
Coastal Shipping Review
Ports & IWT Review
Review of Previous Studies
PHASE - I PHASE - II PHASE - III
ANALYSIS ACTION PLAN
Existing Coastal Traffic
Existing Origin and Destination
Patterns
Future Traffic Potential
Economics of Coastal Movement
Integration of Coastal Shipping
with IWT
Identification of shelf of
projects
Broad Cost Estimates
Recommendations
DRAFT FINAL REPORT
SEPTEMBER 29th 2003
INCEPTION
PRESENTATION
FINAL REPORT
DECEMBER 1st 2003
Monthly Review Meetings
COMMENT by DGS
OCTOBER 29th 2003
STEERING COMMITTEE MEETING
APRIL 25th 2003
STEERING COMMITTEE MEETING
JUNE 6th 2003
STEERING COMMITTEE MEETING
SEPTEMBER 16th 2003
STAKEHOLDERS WORKSHOP
SEPTEMBER 17th 2003
FINAL PRESENTATION
NOVEMBER 25th 2003
Chapter 1: Introduction
1 - 8
Table 1.1 Meetings with Stakeholders
Gujarat Infrastructure Development Board Goa Mineral Ore Exporters Association
Jaisu Shipping Company Private Limited
(Kandla)
Mormugao Steel Limited
Tata Chemicals Limited (Mithapur) V.S.Dempo & Co Pvt Ltd
Gujarat Maritime Board SESA Goa Limited
Devchand & Sons Private Ltd. (Jamnagar) Director of Ports, Pondicherry
Saurashtra Cement Limited (Porbandar) Indian Ports Association
Gujarat Adani Port Limited Ministry of Shipping
Indian Institute of Management, Ahmedabad Krishnapatnam Port Company Limited
Maharashtra Maritime Board Indian Oil Corporation
Raymond Limited (Ratnagiri) Coal India Limited
Usha Ispat Limited (Redi) TM International Logistics Limited, Kolkata
Finolex Industries (Ratnagiri) Central Inland Water Transport Corporation
Shipping Corporation of India Eastern Navigation Private Limited, Kolkata
Mercator Lines Limited Vivada Inland Waterways Limited
Mazagaon Dock Limited Bengal Port Limited
Ispat Indutries Limited (Dharamtar) W. Bengal Industrial Development Corporation
Cement Manufacturers Association Dhamra Port Co. Ltd, Bhubaneshwar
Amma Lines Limited Office of Secretary, Ministry of Commerce,
Bhubaneshwar
L&T Cement Tamilnadu Maritime Board
Indian National Shipowners Association Poompuhar Shipping Corporation Ltd
Great Eastern Shipping Company Major Port Trusts
Chowgule Steamships Ennore Port Limited
CONCOR West Asia Maritime Limited, Chennai
Parekh Marine Agencies Pvt. Ltd. Transcoastal cargo & Shipping Ltd
Gujarat Pipavav Port Limited National Institute of Port Management
Dighi Port Limited Inland Waterways Authority of India
PNP Maritime Services (Dharamtar) Ministry of Transport, Govt. of Kerala
Director of Ports & IWT, Karnataka The Fertilizer And Chemicals Travancore Ltd
Kanara Chamber of Commerce & Industry LOTS Shipping Limited
Mangalore Refinery & Petrochemicals
Limited
Kerala Shipping & Inland Navigation
Corporation Ltd.
Kudremukh Iron Ore Company Limited
(Mangalore)
Indian Coastal Conference
Director of Ports, Kerala Port Management Board, Port Blair.
Lakshadweep Cooperative Marketing
Federation Ltd.
Bengal Chamber of Commerce & Industry
Lakshadweep Administration, Cochin
Chapter 1: Introduction
1 - 9
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