2. Introduction
India has 13 major ports
200 non-major ports
Cargo traffic is reached 1,758 MMT by 2017
play a vital role in sustaining growth in the country’s trade and
commerce.
India currently ranks 16th among maritime countries
coastline of about 7,517 km.
Around 95 per cent of India's trade by volume and 70 per cent by
value takes place through maritime transport
Has allowed foreign direct investment (FDI) of up to 100 per cent
3. Port Community System Stakeholders
Ports
Shipping lines/Shipping Agents
Customs House
Agents/Importer/Exporters
Banks
Stevedors
CONCOR/Railways/Pvt Railways
Operators
Container Freight Stations
Customs, etc
It is a system or group created by multiple companies to
communicate with each other
4. Role of Port Authority
Investment: Power to approve proposals for port investments in amounts above a
certain figure.
Financial policy: Power to set common financial objectives for ports (for example,
required return on investment defined on a common basis
Tariff policy: Power to regulate rates and charges as required to protect the public
interest.
Labor policy: Power to set common recruitment standards, a common wage
structure,
Licensing: When appropriate, power to establish principles for licensing of port
employees or agents.
Information and research: Power to collect, collate, analyse, and disseminate
statistical information on port activity for general use,
Legal: Power to act as legal advisor to local port authorities.
5.
6. Port Finance & Operations
A port authority should have as a principal objective the full recovery of all port-
related costs including capital costs, plus an adequate return on capital.
Use of funds as:
• Maintain internal cost discipline.
• Attract outside investment and establish secure long-term cash flows.
• Stimulate innovation in the various functional areas
• Generate internal cash flows needed to replace and expand port
infrastructure and superstructure.
• Compete according to the rules of the market system
• Avoid dissipation of the port authority’s asset
7. Port Function
Regulator of economic activity and operations.
Regulator of marine safety, security, and environmental control.
Planning for future operations and capital investments.
Operator of nautical services and facilities.
Marketer and promoter of port services and economic
development.
Cargo handler and store.
Provider of ancillary activities.
8. Growth & Status
Market size
During FY18, cargo traffic at major ports in the country was reported at 679.36
million tonnes (MT). In FY19P (up to February 2019) traffic increased by 2.79 per
cent year-on-year to reach 633.87 million tonnes.
The major ports had a capacity of 1,452 million tonnes by FY18 end.