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Distance MBA (Port & Shipping Management)

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Distance MBA in Port & Shipping Management gives you an overview of the course at CCE UPES, Dehradun, India.

Distance MBA in Port & Shipping Management gives you an overview of the course at CCE UPES, Dehradun, India.

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  • 1. Port and Shipping Management
  • 2. Introduction to Indian Shipping Industry The Indian shipping industry plays an important role in the Indianeconomy with almost 90% of the country’s international trade conductedby the sea. India has the among the developing countries and is ranked 15th in theworld with a shipping tonnage of around 11,5 million gross tonnage in 2011. Today, India has around 1172 ships with 862 coastal and 350 overseasships. Indian coastal shipping is highly fragmented. The top 9 companies account for nearly 70% of the total fleet by DeadWeight Tons and in terms of number of ships, the top 9 companies onlyhave a 20% share of the fleet. Many companies own just 1 or 2 ships. The Indian shipping industry consists of around 31 major shippingcompanies with Shipping Corporation of India (SCI), the largest publicsector enterprise being the largest in the country.
  • 3. Introduction to Indian Port Industry India’s long coastline of over 7,500 km is home to the country’s 13 major ports1 andaround 200 non-major ports located along the western and eastern corridors. Whilethe number of non-major ports is large, only about one-third of them undertakeregular commercial operations; these ports are located mainly in Gujarat, AndhraPradesh, Goa, and Maharashtra. Since the last decade, the Indian port sector hasbeen witnessing certain structural changes, with state monopoly (viz. the majorports) gradually giving way to greater private sector participation in port investmentactivity. The change is being driven by several factors, including the large investmentsrequired to scale up port capacity, besides the need to improve service levels andefficiency. Private participation in ports is also being facilitated by an open policyregime (which, inter alia, allows 100% FDI investment in port projects and providestaxation benefits to players investing in port infrastructure) and the prospects ofrobust returns on investment, given the favorable long-term outlook for the sector. The trend is expected to gain traction with the major ports increasingly moving to alandlord/asset ownership model, allowing the private sector a dominant role incapacity additions and port services and operations. Further, considering thecriticality of the port sector to overall economic growth and to bring about anorderly development of the sector, some regulatory and policy initiatives have alsobeen taken of late, the most notable being the National Maritime Agenda 2010-20and the Draft Port Regulatory Authority Bill, 2011
  • 4. Companies in Port and Shipping MarketGiven below are the list of best Shipping Companies in India. There are asufficient number of Shipping companies in India. There are a number ofopportunities in the shipping companies. There are a number of initiativesand projects intended in the present time have been able to fully consolidatethe Shipping industry. Most of the Shipping Companies have pioneered inbeing vanguard institutions that provide the best and most sophisticatedvessel and shipping rudiments. Most of these companies are also engaged inproviding services like sea paths which is an important. This is an importantand at the same vitals sector of the Indian economy and also an emergingsector because of the natural geographical disposition of the coasts.Names of a few leading organizations of the sector:Abg Shipyard Ltd, Bharati Shipyard Ltd, Chowgule SteamshipsLtd,Dredging Corporation India, Essar Shipping, Global OffshoreServices, Great Eastern Shipping Company, Great Offshore Ltd,Pipavav Shipyard Limited, Shipping Corporation of India
  • 5. Initiative by Government The Government of India has undertaken the expansion and modernizationof ports on a priority basis as part of its initiatives in the up gradation ofIndia’s infrastructure achieving the targeted growth rate. The governmenthas initiated numerous plans, which includes; Formulation of a NationalMaritime Development Policy to facilitate private investment, improveservice quality and promote competitiveness, and US$ 11.33 billion hasbeen allocated for the same. An investment of more than US$ 9.07 billion will be made by 2015 for 111Shipping Sector Projects. In 2008-09, the Ministry of Shipping is going to launch 10 majorexpansion projects at an estimated investment of US$ 1.06 billion, 60% ofwhich is allocated for the Chennai mega container terminal. Permission for 100 per cent foreign direct investment (FDI) for portdevelopment projects under the automatic route. 100 per cent income tax exemption is provided for a period of 10 years forport developmental projects. Opened up of all the areas of port operation for private sector participation.
  • 6. Initiative by Government contd…. Increase in the rail connectivity of ports with the domestic market. The experience of operating berths through PPPs at some of the major ports in Indiahas been quite successful. It has, therefore, been decided to expand the programmeand allocate new berths to be constructed through PPPs. A model concessionagreement is being formulated for this purpose. The Government has also decided to empower and enable the 12 major ports toattain world-class standards. To this end, each port is preparing a perspective planfor 20 years and an action plan for seven years. A high level committee has finalized the plan for improving rail-road connectivity ofmajor ports. The plan is to be implemented within a period of three years. Further,changes in customs procedures are being carried out with a view to reducing thedwell time and transaction costs. The government has also delegated powers to therespective Port Trusts for facilitating speedier decision-making andimplementation. At the same time, several measures to simplify and streamlineprocedure related to security and customs are been initiated. The National Maritime Development Programme is expected to bring a totalinvestment of over Rs.50,000 crore in the port infrastructure. Such improvement inthe scale and quality of Indian port infrastructure will significantly improve India’scompetitive advantage in an increasingly globalized world.
  • 7. SWOT Analysis of the Indian shippingIndustry StrengthsStrengths India has access to two major shipping routes • More than 7500 km coastline including the island territories • Wide spread ports and workable merchant fleet • Fleet expansion by major domestic shipping companies • Sustained rise in the volume of exports with revival growth in the manufacturing sector • Large number of Indian sea farers • More than 1 billion citizens to drive the import demandWeaknesses • Due to underinvestment in the India’s maritime sector has affected the development of ports in the country • Inefficient judiciary system slow development of new port infrastructure • High levels of bureaucracy preventing the government funding from developing the new port projects in thecountry • Tax structure not allowing the Indian manufacturers to be competitive <Think this is an argument Indianexporters are using in lobbying rather than being a fact>Opportunities • Indian shipping companies having acquisitions with foreign shipping companies • More than US$4bn is expected to be invested in Indias port sector. • New major container terminals being developed at the port of Chennai and Mumbai • Cargo volumes are expected to grow with an average of 16.5% year on year in the coming 5-10 years.Threats • Major developments taking place in Sri Lankas port sector may reduce demand for transshipment services atSouthern Indian ports. • A government tax on iron ore exports may lead to a fall in bulk shipments at major export terminals. • Indias ports have suffered from congestion during 2011, potentially slowing the countrys growth trajectory.
  • 8. Areas1. Public/Private Ports2. Transportation companies3. Freight Forwarders4. Government Agencies5. Shipping and Liner companies6. IT companies7. Management Consultancies8.Custom houses9. ICD’s/ CFS
  • 9. Thank you

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