ANNEXURE - A1
Workshop Details
Directorate General of Shipping
Ministry of Shipping, Government of India
Development of
Coastal Shipping and
Minor Ports
Workshop
Date: September 17, 2003 Time: 10:30 AM- 5:00 PM
Place: Conference Hall,
Shipping Corportation of India
Shipping House
245, Madam Cama Road
Mumbai 400021
Mumbai
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Annexure A1.0: Workshop Proceedings
1. Background and Objective
Stakeholders involvement with the study is as important as their views and suggestions
for firming up and refining the conclusions and recommendations on coastal shipping and
minor ports. The TCS team benefited immensely from their interaction with the
stakeholders in the course of the meetings of the Steering Committee specially set up to
oversee the progress of the study. The workshop held on September 17, 2003 in the
Shipping Corporation of India, attended by government agencies, ports and shipping and
other stakeholders marked the culmination of this.
2. Workshop Agenda
The Agenda for the Workshop was
To identify the key issues in Coastal shipping and their impact on development.
Measures required to ensure the sustained growth in coastal shipping in future years.
To underline the constraints that inhibits the growth of coastal shipping and short and
long term measures required to resolve this.
3. Summary of Deliberations
The workshop was chaired by the Director General of Shipping, Shri. G.S.Sahni. The
Chairman and Managing Director, Shipping Corporation of India, Mr. P.K. Srivastava
was a distinguished participant. Over 50 other participants including representatives of
MMD, HPCL, BPCL, State Maritime Boards, Major Ports, private jetty operators, finance
companies etc took part in the discussions. Shri. S.R.Gaur from the Ministry of Shipping,
Dr. P.G.Patankar, Shri.S.S.Rangnekar and Shri. Anathprasad - Deputy Director General
Shipping also attended. List of participants is at the end of this document.
The first session was devoted to the identification of problems of coastal shipping sector
and their impact on the growth of this industry.
The objective of the second session was to highlight attention on port issues with focus on
minor ports and their potential to catalyse the growth of coastal shipping.
3.1. Formulation of the Development Statement
Development can be defined as the desired state of Coastal Shipping and Minor Ports, in
the foreseeable future. The elements in the development of Coastal Shipping underlined
by the consultants and discussed in the workshop were :
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Shipping
Manning Scales
Bunkers
Cabotage
Customs duty on Spares
Taxation
Income tax on seafarers
Corporate taxation
Availability and training of seafarers
Licensing/classification /survey
ISPS Code
Cargoes amenable to diversion from road and rail
Miscellaneous Issues like separate laws on Coastal shipping , Customs procedures etc.
Ports
Major ports role in promoting Coastal shipping
Reservation of berths for coastal shipping
Public Investment in Infrastructure Development/ Rehabilitation and alternatives.
Criteria for selecting a group of minor ports where basic infrastructure like berths ,
wharves , breakwaters and capital dredging may be constructed / reconstructed with
Govt. funds to serve as a launchpad for private investment.
Concessional tariffs to encourage coastal shipping
Hub and Spoke Concept
Regulatory regime for minor ports
Meeting the projected demand by improving productivity and/or capacity
augmentation.
Integration of sea transport with other modes.
Scope for generation of coastal cargo in Special Economic Zones
3.2. Stakeholders Responses
The response from stakeholders was on the following lines
A) Port related Issues
i. Reservation of berths for coastal shipping
No special reservation for coastal vessels but priority berthing may be
considered
JNPT Windows scheme makes it obligatory on the shipping lines to handle
minimum annual throughputs which if applied to Coastal Shipping will be very
high
Do away with Customs clearance. Only information may be provided.
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ii. Major ports role in promoting Coastal shipping
Incentives do not necessarily discourage competitiveness.
Since general cargo offered to Coastal Shipping is very small at present there is a
good case for levying concessional rates of traffic or at least freezing port tariff
rates at the existing level
Alternatively existing port tariff rates may be frozen for a specific time period
for coastal vessels.
Cost minus principle may replace the existing Cost plus tariffs; average cost is
not the best way for pricing tariffs.
Vide notification dated 02/09/2003 TAMP has allowed Major Ports Trusts to
charge tariffs below the ceiling rates as allowed to private operators.
Cost of transporting POL by ships is high; if costs are not rationalised this traffic
will be divested to other modes viz pipelines.
Study for deepening the Sethusamundaram canal entrusted to NEERI is in
progress. This is a part of the Sagar Mala project. Proposals for deepening the
Pamban canal meanwhile may be pursued, as it will benefit coastal trade.
iii. After detailed discussions and clarifications by the Consultants the participants
endorsed the proposal advanced by the consultants to kickstart development of
minor ports and attract private investment. The following are the key elements of the
proposal
a)Central / State Government may finance Construction/Rehabilitation in select
number of minor ports , the basic physical infrastructure like
Breakwaters
Berths
Wharves
Paved Backup Area
Capital Dredging
b) Private Sector Investor may be brought in at this stage for building up other
infrastructure/superstructure and provide all
Cargo handling and other equipment for servicing cargo
Navigational and other aids
After completion the private investor may operate the port on lease or as joint ventures.
Private sector may put up the facility and come up to the Ministry with a proposal for
financial assistance to make it viable.
Participants comments and observations are
The alternative proposal canvassed by a participant was that private sector
investors maybe involved in the development /rehabilitation of the select ports
and then come up for financial assistance to Govt.
The alternative is not feasible, govt. may invest in building up basic
infrastructure on the lines proposed by the consultant
For coastal vessels, requirement for pilotage service in Major Ports may be
made optional. This consensus was that this would be difficult firstly because
it is not provided for in the MPT Act 1963 and secondly JNPT had incurred a
lot of expenses on the channel, which it is trying to recover.
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iv. Hub and Spoke concept to transfer transhipment traffic back into the country and
save the economy from the recurring loss of 5-600 crores annually may be pursued
on priority.
v. Regulatory regime for minor ports is necessary.
vi. In order to reduce the subjective element in the identification of 2 or more ports in
each maritime states a mathematical model as devised was presented and the
parameters of the model fully explained.
Greater weightage may be given to drafts. The industrial scenario in the
vicinity of the given ports and potential for cargo generation studied.
All other parameters and weightages assigned in the model were endorsed.
vii. Capacity may be augmented before the projected demand materialises by improving
productivity and where necessary through additional construction.
viii. Thoughts on integration of sea transport with other modes given practical shape.
ix. Potential of Special Economic Zones for generating traffic for coastal vessels
examined further after the selected sets of ports are commissioned.
B) Shipping related Issues
i. Manning Scales
NCV scales, which are Near Coastal Vessels that ply between the ports of
Bangladesh, India, Myanmar, Maldives and Sri Lanka are adequate.
Separate, less stringent scale for intra coastal vessels needed. Intra coastal
vessels ply between anchorages and ports (lighterage)
The Coasting Vessels Act and Inland Vessels Act do not prescribe manning
scales for coastal or inland water trades. What prevails presently has been thrust
on the trade by the authorities
While Increase in the age limit for retirement of the crew has helped in lowering
costs productivity has suffered however.
ii. Bunkers
Bunker costs may be reduced to facilitate the development of Coastal Shipping.
In most countries coastal shipping is not given any concessions and fuel costs for
all modes are the same.
iii. Cabotage
Status Quo should be maintained and Cabotage lifted if at all there is a level
playing field and it is in the national interest. Operators of the Indian Flag
vessels are required to pay 36% tax and employ a large no. of Indian crew on
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union demands whereas foreign flag operators pay little tax and employ only the
minimum number of crew of any nationality.
Cabotage is essential to prevent fly by night operators from entering the trade
and discourage dumping.
iv. Customs duty on Spares
Ships may be treated as Ship Repair Units and exempted from duty as the
latter.
Spares imported for later use and fitment but kept on board the vessel are not
exempt from duty
Demand for a level playing field will fall foul of the transport sectors demand
for waiver of Excise duty (equal to CVD of Customs)
Classification of goods by customs causes harassment, often such
classification is capricious.
v. Taxation
Tonnage tax may be applied to Coastal Shipping
Income Tax exemption for seafarers is necessary to ensure availability and
quality of seafarers on coastal trade
vi. Availability of seafarers
There was mixed opinion on the demand for separate coastal cadre for
seafarers
To attract seafarers to coastal trade, higher wages for compensating loss on
account of the IT was suggested.
vii. Licensing/classification /survey
If the tariff structure for Coastal Shipping at major ports is rationalised
operators of coastal vessels would view it as an encouraging development.
viii. ISPS Code
Not relevant to coastal shipping as of today
ix. Divertible Cargo from road and rail transport
Transport through coastal vessels of cars was attempted by a shipping
company from South to West Coast but not found viable because of the high
port costs.
General Cargo and container transportation are the future cargoes for coastal
shipping.
x. Miscellaneous
A separate Coastal Shipping Act addressing all issues pertinent to coastal trade
is necessary for development of coastal shipping.
Coastal Shipping Development Fund may be set up to encourage industry to
take to this trade. The CSDF can fund or facilitate funding and also regulate
coastal trade.
Extension of Infrastructure status to coastal shipping or benefits thereunder
would help in the development of coastal trade
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No customs documentation is now necessary for coastal trades but Customs
want to be informed of cargo details through a letter in many ports.This causes
avoidable harassment and delays and the practice should be given up.
Another innovative suggestion floated by the consultants and widely endorsed was
that with the imminent commissioning of the Golden Quadrilateral and the East West
North South Highway system in another 3-4 years the pattern of traffic flows would
undergo drastic changes. The projects will accelerate the process of development of
linkages between ports, railways, roads and waterway terminals and the district and
village roads to facilitate movement of men and material and at the same time bring
the villages /towns in the deep hinterland into the national mainstream. One option is
to fund connectivity cost of such linkages to the hinterland through sharing by various
modes. Alternatively, some other innovative methods like privatisation or
development through joint ventures development would have to be considered.
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LIST OF PARTICIPANTS IN THE WORKSHOP (In Alphabetical Order):
Sl
No
Name of Participant Designation Address Phone Number Fax Number
1. A.B. Sathe General Manager - Crude &
Shipping
Hindustan Petroleum Corporation Ltd
17, Jamshedji Tata Rd., Churchgate, Mumbai-400020
022-22026151
(ext:3324)
Tele Fax: 022-
22829629
2. A.K. Sen Senior Manager, JNPT JNPT 022-27242375 022-27241089
3. Aditya Suklikar Director Orion Agencies Limited
323 , TV Industrial Estate
Behind Glaxo , Worli Mumbai-25
022-24604398 022-24952697
4. Alok Mahajan Deputy General Manager
Strategic Planning and S & P
The Great Eastern Shipping Co.Ltd.
Ocean House 134/A, Dr. Annie Besant Road Worli
Mumbai-400018
022-
56613208/24922
100
022-
56608661/24985
343
5. Ananth Prasad N.S. Deputy Director General of
Shipping
Jahaj Bhavan,Walchand H. Marg,
Mumbai - 400 001 ( India )
022-
22613651/2/3/4
022-22613655
6. Biswajit Guha Business Development &
Marketing Services
The Great Eastern Shipping Co.Ltd. Offshore Division
Energy House 81 D.N. Road Mumbai-400001
022-2352235 022-2352384
7. Capt. A.W. Karkare Chief Ports Officer,
Maharashtra Maritime Board
Indian Mercantile Chambers, 3rd Floor, Ramjibhai
Kamani Marg, Ballard Pier, Mumbai-400038
022-22619752 022-22614331
8. Capt. Anil Panjwani Deputy Conservator Mormugao Port Trust
Marine Department Administrative Office Headland
Sada, Goa-403804
(0)832-
2521150/259480
1
(0)832 2521155
9. Capt. Kapil Kekre Manager Shreyas Shipping Limited ,
912/912 A, Embassy Centre, Nariman Pt, Mumbai-
400021
22842324/25/28/
31
022-22886665
10. Capt. M. Baveja Capt. Suptd. T.S. Chanakya Karave Nerul Navi Mumbai 022-27701315 NA
11. Capt. S. Sainath State Port Officer, TNMB Tamil Nadu Maritime Board Vairams Complex 112,Sir
Thiagaraya Rd. T. Nagar, Chennai-600017
044-
28151232/4481
044-28151632
8
Sl
No
Name of Participant Designation Address Phone Number Fax Number
12. Capt. S.C. Mathur Chief Nautical Officer, Gujarat
Maritime Board
Sector 10-A : Gandhinagar-382010 079-3234716 079-3234703/04
13. Capt. S.V. Pohonerkar Dy. General Manager(Marine
Operations)
Larsen & Toubro Limited
Metropolitan, C-26/27 Bandra-Kurla Complex Bandra
(E) Mumbai-40051
022-26571500 26571429
14. Capt. Sanjay Goyal Gujarat Maritime Board Sector 10-A : Gandhinagar-382010 079 3234716 079-3234703/04
15. Commodore Bangar Consultant , MMB Indian Mercantile Chambers, 3rd Floor, Ramjibhai
Kamani Marg, Ballard Pier, Mumbai-400038
022-22619752 022-22614331
16. Dinesh Kumar Deputy. Secretary Government of India, Ministry of Shipping , Room No.
403, Transport Bhawan, 1, Sansad Marg New Delhi-
110001
011-3711323 011-3722855
17. Dr. A.K. Chanda Chairman , Kolkata Port Trust 15, Strand Road Kolkata 700001 033-
22205370/3451
033-22208226
18. Dr. P.G.Patankar Consulting Adviser , TCS 9th Floor , Nirmal Building , Nariman Point
Mumbai -20
022-56689562 022-22040711
19. G.S.Sahni Director General of Shipping Jahaj Bhavan,Walchand H. Marg,
Mumbai - 400 001 ( India )
022-
22613651/2/3/4
022-22613655
20. Gangadharan Vinod Deputy Manager(Plans) Liner
& Passenger Services Division
The Shipping Corporation of India Ltd.
Shipping House, 15th Floor, 245, Madame Cama Road,
Mumbai-400021
022-
22026666(ext:26
22)
022-22026905
21. Girish S. Bhende Manager(Supplies) Bharat Petroleum Corporation Ltd.
Bharat Bhavan, 4 & 6, Currimbhoy Road, Ballard Estate,
Mumbai-400001
022-
2694032,261828
1 (ext:3463)
022-2658572
22. Jayant Pendarkar Vice President , Marketing
TCS
Tata Consultancy Services
11th Floor, Air India Building
Mumbai-21
022-56689212 022-22875501
23. K.M. Joseph Director ( Bulk and Tanker
Div.) SCI
The Shipping Corporation of India Ltd.
250, Sudam Kalu Ahire Marg,
Worli, Mumbai - 400 025.
022-24937484 022-24937474
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Sl
No
Name of Participant Designation Address Phone Number Fax Number
24. K.P.Bakshi CEO , Maharashtra Maritime
Board
Indian Mercantile Chambers, 3rd Floor, Ramjibhai
Kamani Marg, Ballard Pier, Mumbai-400038
022-22619752 022-22614331
25. L.D. Parekh Chairman , Parekh Group Wakefield House, 1st Floor, Sprott Road Ballard Estate,
Mumbai-400001
022-
22651497/56344
550
022-
22653717/22652
015
26. N.D. Sarkar PO (J/C) MMD , Mumbai Old CGO building M.K. Road Mumbai-400020 022-22076881 NA
27. P.C. Dhiman,IAS Director (Port Development) Government of India, Ministry of Shipping , Room No.
407, Transport Bhawan, 1, Sansad Marg New Delhi-
110001
011-23739621 011-23328549
28. P.J. Unakar Secretary, The Indian Coastal
Conference
Scindia House, Ballard Estate N.M. Marg Mumbai-
400038
022-22623911 022-22623911
29. P.K.Srivastava CMD , SCI Shipping House"
245, Madam Cama Road
Mumbai - 400 021
022-22026666 022-22026905
30. Pranab Thakur CEO Indian Port Association
1st Floor , South Towers , NBCC Place
Lodhi Road , New Delhi 3
011-
24369061/63
011-24365866
31. Prasad Gadkari Specialist-Transport Infrastructure Development Finance Company Ltd.
Ramon House, H.T. Parekh Marg, 169, Backbay
Reclamation, Mumbai 400020
022-56339125 022-22838158/9
32. Rajiv K.Gupta Assistant Director General of
Shipping
Jahaj Bhavan,Walchand H. Marg,
Mumbai - 400 001 ( India )
022-
22613651/2/3/4
022-22613655
33. R.V.B. Nair Mercantile Marine Dept. Old CGO building M.K. Road Mumbai-400020 022-22076883 NA
10
Sl
No
Name of Participant Designation Address Phone Number Fax Number
34. S.C. Pakrashi Technical Adviser Chowgule Steamships Ltd. 75-77, Maker Chambers VI,
7th Floor, Nariman Pt Mumbai-400021
022-22026822 022-22024845
35. S.Govindarajan Vice President (Strategy
Planning) , Essar Shipping Ltd.
Essar House, P.O. Box No.7945,Mahalaxmi, Mumbai-
400034
022-
24950606/56601
100
022-24954330
36. S.K. Gupta Vice President (Shipping) Gujarat Ambuja Cements Ltd.
C.S.T Rd Near Vidyanagari, Kalina, Santacruz(E)
Mumbai-400098
022-56931811 022-
26521414/1515
37. S.R.Gaur Director , Ministry of Shipping Government of India, Ministry of Shipping ,
Transport Bhawan, 1, Sansad Marg New Delhi-110001
38. Sachin Rane Assistant Manager-Sales Ashapura Group of Industries Jeevan Udyog Building
3rd Floor, 278, D.N. Road, Fort. Mumbai-400001
022-56651700 022-
22079395/22074
452
39. Shashank S. Kulkarni Secretary General Indian National Shipowners Association
22, Maker Tower-F, 2nd Floor Cuffe Parade Mumbai-
400005
022-
22163968,22189
372/2103/2105
022-22182104
40. Sudhir S. Rangnekar Director , SCI The Shipping Corporation of India Ltd.
Shipping House, 245, Madame Cama Road, Mumbai-
400021
022-22026666 022-22022949
41. Uday Gore Senior Manager(Ship
Chartering)
Bharat Petroleum Corporation Ltd.
Bharat Bhavan, 4 & 6, Currimbhoy Road, Ballard Estate,
Mumbai-400001
022-
22713721,22713
406
022-22713728
42. Umesh K Vishwekar Chief Manager- Shipping Hindustan Petroleum Corporation Ltd
17,Jamshedji Tata Rd, Churchgate, Mumbai-400020
022-22811668 022-22835076
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List of Consultants facilitating the workshop is
1. Mr. Alok Bhardwaj , Senior Consultant , TCS
2. Mr. H.N.Fotedar , Consulting Adviser , TCS
3. Mr. S.N.Srikanth , Hauer Associates , Chennai
4. Mr. S.Bose , Associate Consultant , TCS
5. Dr. K.A.Raju , Associate Consultant , TCS
6. Mr. R.Muralidhar, Hauer Associates, Chennai.
7. Mr. Yograj Kolhe , Associate , TCS
8. Mr. Vipul Soni , Associate TCS
9. Mr. Anil Uchil , Associate TCS
10. Mr. C..Divecha , Associate , TCS
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