THEME PAPER FOR THE STAKEHOLDERS’ WORKSHOP
DEVELOPMENT OF COASTAL SHIPPING AND MINOR PORTS
Background
India has a 7517 km long coastline dotted by 12 major and more than 150 minor ports
(State owned). Increased awareness of the potential of coastal shipping and its
environmental friendliness, high fuel efficiency and cost effectiveness for long haul
transportation of bulk goods, have brought this industry back into reckoning as a
mode of transport and spotlighted attention on its capability to expand intermodalism.
Inland Water Transport (IWT) is another transport mode spread out to
14500 km that was not optimally used due to inadequate infrastructure facilities, low
width and depth of waterways, poor fleet, and absence of navigational aids and for
want of integration with other modes. Series of proactive policy announcements by
Government post reform seem to be paying off albeit slowly.
The Ministry of Shipping, through the Directorate General of Shipping (DGS) has
initiated a study on “Development of Coastal Shipping and minor ports” to capitalise
the potential of this industry. The DGS, as the key agency in the Indian maritime
sector, has been nominated as the nodal agency for co-ordinating the study. Soon after
the study was awarded to Tata Consultancy Services, a study team was mobilised in
the March 2003 and the study process initiated straight away there after.
Future strategy for development of the transport sector or any of its subsystems, for
that matter can be evolved only after close interaction with the stakeholders appraisal
of past performance and prevailing environment, strength of the competing
operational, environmental and financial constraints etc. This output can be used
among other things to determine the feasibility and viability of the identified projects.
The development strategy should also subserve the major objective of eliminating
intermodal distortions. These exercises will finally culminate in the preparation of an
implementable plan, keeping in view the state of the ports including their efficiency
levels, coastal trade routes, commodity flows in other modes especially rail and road
transport and intermodal linkages.
The close involvement of the stakeholders and those responsible for managing and
delivering services to users, in the preparation of the study is absolutely important.
Equally so is the interaction with the key agencies like the Directorate General of
Shipping.
The Consultants have had three rounds of discussions with DGS and other maritime
authorities and agencies. This workshop has been organised to bring together policy
makers in the Central and the Maritime State Governments, IWAI, representatives of
the trade and other allied agencies and solicit their advice and guidance for refining
the views, impressions and tentative conclusions of the Consultants. They also look
forward to the views of other invitees to the workshop including Stevedores, Vessel
Agents, Freight forwarders, Large industrial units located along the coast. To enable
the invitees to articulate the aspirations of the industry and also share their own
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understanding of the factors and the circumstances that have inhibited the growth of
this industry, a set of questions in the nature of primers is appended below.
Agenda
1. Key characteristics of Coastal Shipping
2. Identify constraints and other areas of concern that merits attention
3. Draw up an agreed program for implementation within a given time frame
Questions to Initiate Discussions
Broad perception about Coastal Shipping and its functions
Suggestions for accelerating the development of the transport sector
especially two Water Transport Modes viz. Coastal Shipping and Inland
Waterways
Nature and character of constraints – Substantive and procedural -
timeframe for elimination
Changes required in ports and coastal routes to boost the growth of coastal
shipping.
Minor ports most suitable for development of coastal shipping with
reference to accessibility (rail/road connectivity to cargo generation
centres in the hinterland)
Nature and quantum of traffic and minimum parcel sizes that can be
diverted to coastal shipping from the Rail/Road transport systems.
Constraints and difficulties (physical, operational and institutional) in
integrating coastal shipping with other modes (Inland Waterways, Railway
and Road transport etc)
Identify feasible locations for interfacing between Coastal Shipping and
IWT
Actions/activities and strategies required to trigger the growth of the
coastal shipping in the shortest possible time.
Legal: Do you favour special legislation to guide the growth and
development of coastal shipping, alternatively support the view that the
desired objective can be met through amendment in the relevant provisions
of MS Act.
Institutional: What type of institutional machinery should be set up for
the purpose of inter modal co-ordination, oversee operations in and evolve
a National Policy for this industry.
One of the measures suggested to give a fillip to Coastal Shipping is
extension of cargo support as for foreign going vessels through the
chartering Wing of the MOS.
Justification of the application of Tax and other Concessions to encourage
acquisitions of dedicated coastal vessels, Customs Duty concessions on
import of spares.
Most suitable pattern for financing the development of minor ports
