[Infrastructure] Shipping & Port infrastructure, Major ports, FDI, Sethu Samudram, Budget 2014 announcement

MrunalEconomy

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  1. Prologue
  2. [Act 1] Shipping
    1. S1: Major ports on West Coast
    2. S2: Major Ports on East Coast
    3. S3: Economic Survey: Shipping reforms
    4. S4: Budget 2014: Shipping related announcement
    5. S4: TAMP: Tariff Authority for Major Ports
    6. S5: Sethu Samudram

Prologue

Economic Survey Ch11. Energy, Infrastructure and Communications. Total four subparts

  1. Energy & communication
  2. Roads, Industrial corridors, PPP, Infrastructure problems & reforms
  3. Shipping, aviation
  4. Railways infrastructure

Cover Economic Survey Shipping aviation

[Act 1] Shipping

Major ports of India

S1: Major ports on West Coast

A: Artificial, N: Natural harbor
A/N? NAME STATE
N Jawahar Nehru, Nhava Shewa MH (2)
N Mumbai, 1873
N
  • Kandala, Kutch. Tidal port
  • in 50s because Karachi port lost in Partition
  • first Exclusive Economic Zone(EEZ) in India and Asia
Guj (1)
N Mormugao. Tidal Port, @Zuvari estuary, iron-ore export Goa (1)
A New Mangalore. Deep water, all weather Karnataka(1)
N Cochin/Kochi. Willingdon island Kerala(1)
Total Major Ports (West Coast) 6

S2: Major Ports on East Coast

A: Artificial, N: Natural harbor
A/N? NAME STATE
N
  • Haldia | Kolkata.
  • Riverine port
  • Oldest major port of India#
  • Need constant dredging to keep depth.
  • new proposed: Sagar
WB(1)
N
  • Vishakhapatnam. & Eastern Naval command
  • new proposed: Dugarajapatanam
AP(1)
A Paradeep (manmade lagoon) Odisha(1)
N Tuticorin TN (3)
A Chennai (all weather)
A Ennore (private, under companies Act)
N
  • Port Blair (Southernmost). Declared 13th major port in 2010.
  • named after British officer Lt. Archibald Blair
A&N(1)
Total Ports East Coast 7
  • #Some books (Pearson, Pratiyogita) mention Chennai to be the oldest port, but sarkaari sites maintain that Kolkata is the oldest port. (Ref#1, Ref#2)
  • CDS/CAPF randomly ask question whether xyz port is natural harbor/artificial / riverine- hence need to mugup.
  • States with highest Minor ports: Maharashtra >> Guj >> A&N >>Kerala >> Odisha

S3: Economic Survey: Shipping reforms

  1. Main problems: ageing fleet, manpower shortage.
  2. While India made great success metro rails and airport infra. but shipping infrastructure has been neglected.
  3. India does not have world class ports.
  4. Third-generation ships are not able to enter the harbour. Their goods have to be offloaded in Srilanka, then sent to India in smaller ships.
  5. India’s port charges are considerably higher than in many developed countries.
  6. Port congestion, delay in turnaround, takes lot of paperwork to load/unload cargo, slow process of customs clearance, inadequate road and rail connectivity
  7. There is urgent need to replace our ageing ships with new ones. But Government-owned shipyards like Visakhapatnam are not receiving new orders due to global slowdown.

S4: Budget 2014: Shipping related announcement

  1. Will frame new policy, so increase employment, Indian shipbuilding and maritime transport.
  2. Sixteen new port projects are proposed
  3. New SEZs at Kandla and JNPT.
  4. Will develop Tuticorin outer harbor.
  5. Inland navigation: ‘Jal Marg Vikas’ (National Waterways-I) on Ganga.  Between Allahabad and Haldia. Deadline: 6 years, 1620 kms, 4200 cr.

S4: TAMP: Tariff Authority for Major Ports

Major port Minor ports
TAMP decides maximum tariff charged by Major ports for cargo handling
  • They’re free to fix tariff charges
  • They don’t fall under TAMP regulation.
Major port operators want TAMP abolished, so they too can raise tarrif and expand. They can charge higher prices and re-invest profits to modernize further.
  • Reform: 2013, shipping ministry exempted Port projects after Aug-2013, from TAMP.
  • but Major port operators want all ports to be removed from TAMP mechanism

S5: Sethu Samudram

map-sethusamudram-project

  • Old topic, Needs to be prepared again because NDA/BJP in power.
  • This project wants to create a shipping canal between Palk bay & Gulf of Manner.
  • Pro-argument: Will reduce time and fuel consumption. Improve traffic @minor ports in South-East India
  • Anti-argument: marine biodiversity will be damaged + religious sentiments about Ram Sethu.
Shipping: more stupid statistics
Coastline 7517km (including A&N, Lakshadweep)
Maritime States
  • five on west coast
  • four on east coast
Major Ports
  • 13 +2 proposed
  • Under the union Government
  • handle 57% of traffic
Minor Ports
  • >180
  • under State Governments
  • handle 43% of traffic, but higher growth rate than major orthodox s.
FDI
  • 100% permitted
Ship-Breaking Industry
  • India #1
Seafarers
  • India 3rd largest supplier.

Trade volume / value

% ___ India’s foreign trade via shipping industry
95% Volume wise
68% Value wise
Indian History Freedom Struggle Pratik Nayak