2. 2
“Our coastal area can be a channel
for global trade…”
– Hon’ble Prime Minister of India, Maiden Speech to Parliament
Importance of India’s Coastal Regions & Maritime Sector (1/4)
3. 3
Importance of India’s Coastal Regions & Maritime Sector (2/4)
“Maritime infrastructure and shipping will play a pivotal
role in India’s economic engagement with the rest of
the world. India is blessed with one of the longest
coastlines located in the most strategic global trade
routes. Harnessing it will generate rich economic
dividend to the country.”
– Hon’ble Minister of Shipping, Road Transport and Highways
5. 5
Importance of India’s Coastal Regions & Maritime Sector (3/4)
Significance of
India’s Coastal
Regions
~7,500km of coastline spanning 13
maritime States and Union Territories
SOURCE: MOSPI, Census of India, IBEF, Secondary Research
~20% of India’s population
lives in coastal areas
Contribution of Maritime States to Indian GDP:
~60% (as of 2012-13)
6. 6
Importance of India’s Coastal Regions & Maritime Sector (4/4)
Significance of
Indian Maritime
Sector
SOURCE: MOSPI, Census of India, IBEF, Secondary Research
~95% of India's trade by volume
and 70% by value takes place through
maritime transport
India has 12 major ports
and about 200 non-major ports
Cargo traffic expected to grow from
976 MMT in 2012 to 1,758MMT by 2017
7. 7
Maritime Sector: India vs. China
SOURCE: McKinsey research, Press search
India China
Average annual growth in container traffic1
(Mn TEU)
Container traffic (Mn TEU)
Number of ports in Global top 20
Port capacity stock (% of GDP)
Number of shipyards2
Contribution of waterways in domestic
transportation3
Average Turn-around time (Days)
0.5 10
11 185
0 9
1 3
7 70
<1% 24%
4.5 1
1 Over 2008-2012
2 That can make more than 120 m long ships
3 Includes both Coastal Shipping and Inland Waterways
8. 8
Rationale for Sagarmala Project
SOURCE: Ministry of Shipping
Constraints to the Growth of Maritime Sector
No cohesive institutional arrangement
− Involvement of multiple agencies in development of infrastructure
− Presence of a dual institutional structure leading to development of major and non-major
ports as separate, unconnected entities
Weak infrastructure at ports and beyond
− Limited mechanization, lack of scale, deep draft and other facilities at various ports in India
− Lack of requisite infrastructure for evacuation from major and non-major ports leading to
sub-optimal transport modal mix
− Limited hinterland linkages increasing the cost of transportation and cargo movement
Limited economic benefit to the region and to the community
− Limited development of centres for manufacturing and economic activities in hinterland
− Limited conscious skill development & leverage to peripheral trades (fisheries etc.)
9. 9
Objectives of Sagarmala Project
Port Led Development
− Undertake development of Coastal Economic Zones with projects like- port based
industrialization, coastal tourism, Logistics parks, warehousing, fisheries etc.
SOURCE: Ministry of Shipping
Port Infrastructure Enhancement
− Action points on transforming existing ports into world class ports by
developing deep drafts, mechanization of existing berths, creation of new
capacity & greenfield ports
Efficient Evacuation
− Expansion of rail / road network / inland waterways connected to ports
& identification of congested routes
− Find optimized transport solution for bulk and container cargo
Focus Areas of Sagarmala Project
13. 13
Sagarmala Vision (1/2)
Change how India moves logistically
− Increase competitiveness of core industries including manufacturing sector by
reducing supply chain cost and time
− Increase volume of trade via inland waterways and coastal shipping
− Create an IT en abled national multimodal logistics system
− Develop coastal roads through maritime states for inter-state port connectivity
Boost development through ports & shipping
− Develop 3-4 new mega ports
− Develop a world-class transshipment port of more than 10 Mn TEU capacity
− Create additional capacity of 1200-1500 MMTPA by strengthening existing ports
− Develop maritime and manufacturing clusters around the ports
− Develop 2-3 port based smart cities & Coastal Economic Zones
SOURCE: Ministry of Shipping
14. 14
Sagarmala Vision (2/2)
Create world class institutions
− Set up the Sagarmala Development Company to enable project implementation
− Set up world-class PPP programs in port, waterways and connectivity projects
− Develop Indian Maritime University as a center of excellence for maritime education
− Set up best in class maritime services clusters in India
Empower coastal communities
− Create more than 1 million jobs in the maritime and related sectors
− Increase GDP contribution of maritime states and sector through comprehensive
coastal community development plan
SOURCE: Ministry of Shipping
15. 15
19th February 2015
14th January 2015
15th August, 2003
9th June, 2014
Sagarmala Project Background
“Sagarmala” concept and various issues
related to its implementation
deliberated upon by the Committee of
Secretaries (CoS). Ministry of Shipping
sought ‘in principle’ approval of the
concept of Sagarmala project
McKinsey - AECOM
consortium selected as
Strategy & Programme
Management Consultant
for the Sagarmala
initiative
Decision to make Ministry
of Shipping the nodal
Ministry for Sagarmala
initiative based on the
Hon’ble President of India
address to the Parliament
The CoS deliberated on issues relating to the area of
responsibilities of the Ministry of Shipping, other line Ministries/
Departments and State Governments / State Maritime Boards
along with the timelines for execution of various activities
envisaged under the “Sagarmala” initiatives
Note for the Cabinet on
“Sagarmala: Concept and
Implementation” submitted
by Ministry of Shipping
“Sagarmala”
initiative announced
by then Prime
Minister of India
27th November 2014 15th May 2015
SOURCE: Ministry of Shipping
16. 16
Sagarmala Institutional Framework
SOURCE: Ministry of Shipping
Central implementing
Ministries
Central-level SPVs
Port SPVs
National Sagarmala Apex Committee
Sagarmala Coordination
and Steering Committee
State Sagarmala
Committee
Sagarmala Development
Company (SDC)
State level SPVs
17. 17
Sagarmala Development Company
Implementation of the projects in Sagarmala will be taken up by
relevant Ports, Line Ministries, State Governments and State Maritime
Boards in the form of SPVs through private sector or PPP route
Ministry of Shipping will set up the Sagarmala Development Company
(SDC) to assist the project SPVs (State / Port / Line Ministry level SPVs)
SDC may provide funding window / equity support / access to relevant
technical consultants for the projects undertaken, as may be required
and necessary
SDC will implement only those residual projects that cannot be funded
by any other means or mode
SOURCE: Ministry of Shipping
Sagarmala Development Company (SDC)
21. 21
Potential Benefits for Maritime States from Sagarmala (1/3)
Implementation of skill development/livelihood generation projects for
coastal community development, e.g.
− Coastal Tourism Development projects (Lighthouses & Mainland Islands)
− Fisheries sector development
Development of port-based smart cities and other
urban infrastructure to improve standards of living
Integrating the coastal economy with the ports through development of Coastal
Economic Regions & projects with synergies to Coastal Industrial Corridors
Development of Coastal Economy
22. 22
Potential Benefits for Maritime States from Sagarmala (2/3)
Modernization/capacity expansion of existing ports and creation
of greenfield ports to reduce bottlenecks for future growth
Development of maritime sector leading to new economic activity
in the region - E.g. Ship Building and Repair Cluster
Maritime Sector & Infrastructure Development
Development of port evacuation (road/ rail/inland waterways)
and logistics infrastructure to reduce overall logistics cost and
to increase cargo movement to-and-from the hinterland
23. 23
Potential Benefits for Maritime States from Sagarmala (3/3)
Integrated approach to project identification and
implementation through coordination between Line
Ministries, State / UT Governments and Private Agencies
Easing the Project Development Process
Easing of policy and institutional bottlenecks for
− Obtaining project approvals
− Accessing project funding and implementation partners
− Project implementation and monitoring
25. 25
Sagarmala Project Archetypes (1/3)
Project Theme
Port-led
industrialization
Port based
urbanization
Ship building, ship
repair and recycling
Coastal community
development
Infrastructure development and maintenance projects in the
industrial area/estate near the ports
− E.g., Port-industry connectivity, setting up industrial estates
in port land
Green-field and Brown-field urbanization projects to promote
standards of living
− E.g., Developing port smart cities, water supply for urban
areas near the port
Infrastructure projects for ship building/breaking yards and
maritime clusters
− E.g., Water gates, setting up maritime clusters
Infrastructure and non-infrastructure projects related to coastal
community development
− E.g., Skill development and livelihood generation, health and
sanitation projects
Port-led
Development
Projects
Project Description and Examples*
Project Archetype*
*Not Exhaustive
26. 26
Project Archetype*
Sagarmala Project Archetypes (2/3)
Project Theme
Short-sea coastal
shipping and inland
waterways
transportation
Logistics parks,
warehousing, maritime
zones/services
Integration with
hinterland hubs
Infrastructure development and maintenance projects for
promoting coastal shipping/inland waterways
− E.g., Jetties for coastal shipping, maintenance dredging for
inland waterways
Projects to improve the logistics infrastructure between the ports
and hinterland hubs
− E.g., Logistics Parks and warehouses projects within the port
area or outside
Projects to integrate the ports to the hinterland industrial hubs
− E.g., Multimodal hubs along with road/rail/inland waterways,
Inland Container Depot/Container Freight Station
Connectivity
Projects
Project Description and Examples*
*Not Exhaustive
27. 27
Sagarmala Project Archetypes (3/3)
Project Theme Project Archetype*
Modernizing existing
ports and development
of new ports
Specialization of ports
in certain economic
activities such as energy
containers, chemicals,
coal, agro products
Offshore renewable
energy projects with
base ports for
installation
Offshore storage and
drilling platforms
Project Description and Examples*
Projects to enhance the existing port infrastructure and setting
up of greenfield ports
− E.g., Strengthening of roads within port area, improving
mechanization of cranes, gantries, etc.
Infrastructure projects in ports to support specific industry
developments
− E.g., Effluent treatment plan for chemicals industry, RFID
projects for containers
Renewable energy projects for the sustainable development of
the ports and the associated coastal regions
− E.g., Solar and wind energy generation projects
Projects related to port ancillary services
− E.g., infrastructure for POL storage, Facilities for offshore
bunkering
Port
Augmentation
Projects
*Not Exhaustive
31. 31
Progress Update: Coordination & Communication
Indian Port Rail Corporation has been incorporated on 10th
July, 2015
Active engagement with the Maritime States for getting their
views and suggestions
Engagement with Ministries dealing with infrastructure
development including DIPP to align and synergize with the
existing infrastructure projects (e.g. industrial corridors,
industrial parks etc.)
32. 32
Progress Update: NPP Preparation
National Perspective Plan [NPP] to be finalized by January 2016
OD Study for traffic forecast and potential for coastal shipping and
inland waterways for key commodities (E.g. coal, POL, containers etc.)
undertaken
Report on potential for setting up transshipment port developed
Benchmarking study undertaken to improve productivity, profitability,
operational efficiency, and future prospects of Major Ports
Smart port city at Kandla and Paradeep
33. 33
Progress Update: Island Development & Skill Development
Development of Islands
− Interim report, on possible commercial & developmental activities
in the islands, submitted to the Task Force on Holistic Development
of Islands
− Action plan for development of 15-20 island lighthouses
− Ministry of Shipping in consultation with Ministry of Agriculture is
evaluating potential for oil palm cultivation in islands off east coast
Skill Development in coastal area
− In association with Ministry of Skill Development and Ministry of
Rural Development is being finalized
