National infrastructure&Port conference papers 2018,held on 08.06.2018.at Ahmedabad,India.

INAUGURAL SESSION
Welcome Address : Shri Dharmendra Joshi, Convener, Saket Projects Ltd., Ahmedabad
Special Address: Shri Ajay Bhadoo, IAS, Vice-chairman & CEO, 4
Gujarat Maritime Board, Gandhinagar*
Keynote Address : Shri Devdatta Bose, Group Sector Head, 5
Tata Consulting Engineers, Mumbai
Guest of Honour : Shri K. K. Sinha, Wholetime Director, Essar Ports Ltd., Mumbai 5
Guest of Honour : Shri Amlan Bora, Chief Representative, Netherlands Business 5
Support Office (NBSO), Embassy of the Kingdom of The Netherlands, Ahmedabad
Vote of Thanks : Ms. Sonali Chatterjee, Associate Editor, Saket Projects Ltd., Ahmedabad 6
SESSION I : PORT SECTOR: MARKET TRENDS, GOVERNMENT POLICIES & INCENTIVES
Chairman: Shri Mehul Khakhi, Account Leader – Lenders Advisory, Ahmedabad 7
Shri Kalpesh Vithlani, Chief General Manager, Gujarat Maritime Board, Gandhinagar* 6
Port-Led future Development : Trends, Sustainability & Innovation 8
Shri Prem Vardhan, Consultant, Mumbai
Port Regulations and Competition 15
Shri Ganesh Radhakrishnan, Associate Professor, Jindal School of Business
SESSION II: PORT CONNECTIVITY, OPERATIONS AND SECURITY
Chairman : Shri Prem Vardhan, Consultant, Mumbai 8
Capt. Unmesh Abhyankar, Joint President, Adani Ports and 16
Special Economic Zone Limited, Ahmedabad
Coastal Bulk Shipping and Terminal Operations 17
Shri B. Velan, Managing Director, Scorpio Engineering Pvt. Ltd., Bangalore
Port Based Industrial Clusters and Coastal Employment Unit Policy of Sagarmala 7
Shri Nirav Mahadeviya, CEO, Technopolis, Ahmedabad
SESSION III : PANEL DISCUSSION :
MULTI MODAL LOGISTICS & SUPPLY CHAIN INTRICACIES
Moderator : Shri Samir Shah, Chairman, CII Gujarat Taskforce on Logistics & 18
Partner & Director, JBS Group of Companies, Ahmedabad
Panel Expert : Dr. Vishal Bisen, Managing Director, Samveda Group & 19
Landmark CFS Pvt. Ltd., Mundra
Panel Expert : Shri Amardeep Singh Parmar, Vice-President, J M Baxi & Co.,Gandhidham 20
Panel Expert : Shri Ruchir Parekh, MD & CEO, TheTharDryPort, Ahmedabad*
CONTENTS
SPEAKERS PROFILE & PAPERS
1
9th NATIONAL CONFERENCE ON
* Confirmation awaited

PORTS : SECTOR AND OUTLOOK 22
PORTS, SHIPPING & SHIP RECYCLING : AN IMPORTANT 33
MILESTONE FOR INDIA
Prof. Dr. Nanda Gopal K Reddy
Ch, Eng (Marine), F.I.Mar.E
(Massa Maritime Academy, Chennai
INDIAN PORTS BECOME GATEWAY TO NEIGHBORING COUNTRIES 37
Dr. Sham Choughule
In-charge, BBA-Port programme of Symbiosis Skill and Open University-Pune
CURRENT STATUS OF LOGISTICS IN INDIA 40
G. Vaidyanathan
Chief Engineer, Cochin Port Trust, Kochi
INTERNATIONAL NORTH - SOUTH TRANSPORT CORRIDOR (INSTC) 45
Surendra Sharma
Fellow, NMIS and Port sector expert, Vadodara
CORROSION OF STRUCTURAL STEEL IN COASTAL AREA AND THE 52
REMEDIAL MEASURES
Mr. Prabir Kumar Datta
Member, Pianc International HQ, Brussels, Belgium, Life Member, Consulting Engineers
Association of India(Fidic Affiliated), Life Fellow, Institution of Engineers (I) Senior Consultant And
Chartered Mechanical Engineer
CONTENTS
ARTICLES
2

Speakers Profile
& Papers
3

Shri Devdatta Bose
Group Sector Head - Ports and Harbour,
Tata Consulting Engineers,
Mumbai
Shri Ajay Bhadoo, IAS
Vice-chairman & CEO,
Gujarat Maritime Board,
Gandhinagar
Shri Devdatta Bose, Group Sector Head, Tata
Consulting Engineers,Mumbai has a total experience
of 27 years in the Port and maritime sector, with
strongbusinessandfinancialacumen.
He is responsible for Leadership and strategic
direction to Port and Maritime sector, analysing key
trends and outlook, preparation of business models
for entry to new business areas.He is also responsible
for all Key Customer Accounts and strategic
relationshipswithmajorclientsandP/Laccount.
Responsible for giving direction on program
management, strategic planning for maritime sector
to the entire team, port development specially green
field ports, Master planning, FR/DPR, Project
management high level guidance on Port
assignments, international bidding procedures,
technical and financial evaluation of bids; project
management services, Independent Engineer
Services, health and safety management, quality
management, and contracts administration planning
/ execution of Port / Dredging / water transport /
Inland Transport / Shipyard / smart port city projects
etc.fromconceptgenerationtocommissioning.
His present clients are Indian Navy, Major ports,
Private port, Major shipyards, Coastal based Power
plants. Port Concessionaries / Developers,
InternationalPorts.
He is the member of various professional
Associations: Member, Bombay Chamber of
Commerce & Industries, Member, Institution of
Engineers, Mangalore, India, Member,Association of
Civil Engineers, Jadavpur University, Kolkata, and
CorporateMemberofPIANC/FICCI/BCC/CII.
He has worked in the Countries - India, Norway,
Netherlands,Bangladesh,Finland.
He has presented papers in numerous forums on Key
trendsandOutlookofIndianportsector,Dredging,Port
automationandmodernizations,FuturePorts,IIOT.
Shri Ajay Bhadoo is an IAS officer of the 1999 batch. With
over 17 years of notable service in public administration, he
brings to the position dynamism and leadership honed by
working in different key State Government departments. A
graduate in Civil Engineering from the prestigious National
Institute of Technology (Jaipur) and a post graduate in
Business Law from the National Law School University
(Bangalore), he began his Civil Services career as Assistant
Collector (Revenue Department). Over the years, Shri Ajay
Bhadoo has gone from strength to strength and has held top-
brass positions like Secretary to the Hon ble Chief Minister of
Gujarat, Municipal Commissioner and Collector for a long
period. He has left his personal stamp wherever he has
worked. He was the recipient of the Best Collector Award
twice for his outstanding performance in 2008 and 2010.
Also, his initiative on Biometric Attendance at the Jilla
Panchayat office in Bharuch and the modernization of
Bahucharaji temple complex were hailed as the best projects
oftheState.
He also had distinguished tenures with various important
departments of the Government of Gujarat in various
capacities such as the Chief Executive Officer of Gujarat
Infrastructure Development Board, Dholera Special
Investment Regional Development Authority, Managing
Director of Gujarat Industrial Corridor Corporation Limited
and Dholera International Airport Company Limited, etc. In
all these positions, Shri Bhadoo took significant regulatory,
developmental and strategic initiatives for improvement in
administrativeefficiencyandpublicwelfare.
ShriBhadoohasjoinedGMBatatimewhentheportsectorin
Gujarat has initiated steps in laying the foundation of next
generation projects like RO PAX, Maritime University,
Maritime Clusters and is expected to undergo major
transformation with the active participation in flagship
programmes of the Government of India like Sagar Mala,
Make In India campaign etc. Known to be a very effective
communicator and efficient administrator, Shri Ajay Bhadoo
haslinguisticproficienciesinEnglish,HindiandGujarati.
4

Shri Amlan Bora
Trade & Investment Commissioner
Netherlands Business Support Office (NBSO)
Embassy of the Kingdom of the Netherlands
Ahmedabad
Shri Amlan Bora has been the Trade &
Investment Commissioner of the Netherlands
serving in Gujarat, at Netherlands Business
Support Office (NBSO) Ahmedabad, since
November 2016. In his role Shri Bora will
contribute to the interests of the Ministry of
Foreign Affairs and the Ministry of Economic
Affairs of the Kingdom of The Netherlands in
achieving their objective for Dutch companies
and Dutch innovations to grow outside of the
Netherlands by creating sustainable
partnershipshereinIndia.
Shri Bora has been very proactive in
promoting Netherlands based companies
from the sectors like logistics, Ports &
Maritime,Water,high-tech Innovations,etc.of
theNetherlandsinIndia.
Shri Bora is an international business
professional with an MS in Computer Science
and an MBA in International Business. He has
over 18 years of professional experience and
has worked in major multinational companies
like Siemens, Philips and Diageo based out of
their global HQs in Munich, Amsterdam and
London respectively, holding regional and
global responsibilities in progressively senior
positions. Shri Bora s expertise lies in driving
business transformation and excellence to
create enhanced shareholder value through
sustainablemeans.
Shri K. K. Sinha
Wholetime Director,
Essar Ports Ltd.,
Mumbai
Shri Kamla Kant Sinha is the Wholetime
Director of Essar Ports Limited. He joined
ESSARinJuly2003.
Shri Sinha has done his B.Sc (Engg) in
Mechanical Engineering from BIT, Sindri and
has obtained his Masters in Business
AdministrationfromFMS,UniversityofDelhi.
He has over 32 years experience with industry
majors such as Petronet India Ltd., Indian Oil
Corporation and Bokaro Steel Ltd. Prior to
joining Essar, he was Managing Director at
Petronet India Ltd, a position he held since
2000.
ShriSinhahasservedIndianOilCorporationfor
over 27 years in various capacities. As
Executive Director, he was responsible for
implementation of the entire pipeline project
ofIOC.
Shri Sinha is also a Director on the boards of
variousotherIndiancompanies.
5

Shri Kalpesh Vithlani
Chief General Manager,
Gujarat Maritime Board,
Gandhinagar
Ms. Sonali Chatterjee
Associate Editor,
Saket Projects Ltd.,
Ahmedabad
Shri Kalpesh Vithlani did Bachelor of Civil
Engineering from Lukhdhirji Engineering College,
Morvi in 1996 and Postgraduate Diploma in
Construction and Project Management from CEPT
Ahmedabad. He has a dynamic professional with
nearly 17.5 years of rich experience in planning and
executing construction of Key engineering projects
(EPC) in compliance with standards. He has started
his career at Orbit Builders Private Limited, Rajkot,
Gujarat asAssistant Engineer in 1996.He has joined
Gujarat State Petroleum Corporation Limited
(GSPC), Gandhinagar in Oct 00 to January 2012.
Since 01 2012 he has been working with Gujarat
Maritime Board,as General Manager (Projects) with
additional responsibility of Privatization and IT
projects. His main role has to identifying new port
projects, improvisation of planning & reporting with
development of structured reports i.e. Project
updates, Non-performing Time status in terms of
cost and resources categories, reporting to
Management for decision making. IT
implementation across the GMB offices which
includes implementation of Port Operation
Management System, virtual desktop interface etc.
He is additionally holding responsibility of Traffic
Manger for GMB and main duties includes traffic
promotion and analysis of Exim cargo. He is active
member of Gujarat Institute of Civil Engineers &
Architects.
Ms Sonali Chatterjee is Associate Editor of Saket
Projects Ltd. She has joined SAKET in July 2005 as a
researcher. She has also worked as a Freelancer
Reporter with City Digest, a monthly from
Ahmedabad.
Ms Chatterjee has done an MBA in Human Resource
Management and a Masters in Business Laws. She
also holds Post Graduate Diploma in Journalism and
Diploma in Web Designing. Currently pursuing PhD
fromB.K.SchoolofManagement,GujaratUniversity.
Her dissertation focused on Impact of Mergers &
Acquisitions.
She has published many articles and Research
Papers in National and International Journals' and
also presented papers at various fora on different
subjects.
6

Shri Mehul Khakhi
Account Leader - Lenders Advisory,
Mott MacDonald,
Ahmedabad
Shri Nirav Mahadeviya
CEO,
Technopolis,
Ahmedabad
Has over 27 years of experience in providing
business advisory consultancy for various
industrial and infrastructure projects
covering crucial aspects of a project like
Opportunity Scanning, Market Assessment,
Project Profiles, Techno - Economic
Feasibility Studies, Technology sourcing and
evaluation, Technology Status Studies,
Technical Due Diligence, Valuation of fixed
assets,Lender sIndependentEngineer,etc.
Have executed projects related to
Chemicals, Oil and Gas, Petrochemicals,
Engineering and other sectors in the
industrialsegment.
In the Infrastructure segment, has executed
assignments pertaining to Ports / Maritime
and Logistics,Roads,Industrial Parks,Special
Investment Regions, SEZs, Airports, Tourism
and other related sectors including Due
diligenceofEPCCompanies.
For Ports sector, have executed assignments
like Market Research, Feasibility studies,
Detailed Project Reports, Technical Due
Diligence, Lender s Independent Engineer,
Valuation of fixed assets,etc.for various Port
Projects and Logistic Projects (ICD, CFS,
Railway Private Freight Terminal,
Warehouses,etc.) across the ports of Kandla,
Mundra, Pipavav, Mumbai, JNPT,
Murmugao, Vizag, Chennai, Tuticorin,
Ennore and other minor ports of Gujarat
(Navlakhi, Porbandar, Okha, Bedi Group of
Ports, Hazira, Alang, Dahej). These
assignments have been executed for leading
Developers and Lenders, apart from Central
&StateGovernmentUndertakings.
Shri Nirav Mahadeviya is an architect by qualification, has a
great vision and huge experience of large scale infrastructure
development. The experience include Planning of Industrial
Parks,townships and SEZs at GIDC where he spent 17 years as
ArchitectTown Planner.The size of these parks varies from 100
acres to 11000 acres (Dahej first phase) Housing townships
layout include 10 acres to 200 acres (in most of the GIDC
estateshousingzone).
After having left GIDC in 2007, the assignments as
consultants include advisory role like (i) additional land
identification and support infrastructure for Torrent power s
power plant at Pipavav (ii) conceptualisation of Gujarat s first
shipbuilding park at Dahej shore of Narmada
Conceptualization of Industrial Park / SEZ/Township:Based on
the location, existing river (iii) co ordination of planning and
environment related issues for Assam Company s SEZ
infrastructure, anchor units and the demand of the sector the
concept planning is done with atVilayat, Bharuch. (iv) Private
solar park of 200 acres was conceptualised and marketed for
JJ Prokon in 2010 (v) Approval of 4 Logistics and Industrial
park for different Developers under new policy of Govt of
Gujarat(2015to2018)
Mr Mahadeviya was involved with Gujarat Metro rail as
advisorforrealestate(2012-2013)
He has been a part of various committees of Gujarat Chamber
ofCommerceandIndustries(2006to2012)
Has represented in Govt.of Gujarat delegation to promoteVG
eventin2010and2014
Institutions like Ganpat University and PDPU have involved
him as advisor and authorised him to work out JV with
differentAcademicinstitutesfromabroad
Core Interests : Planning and development of Industrial Parks,
FreeZones,BusinessParksandRealEstate
Working on bringing FDI in premium sectors like Shipbuilding,
Tourism,IndustrialParksandotherInfrastructureprojects
7

Shri Prem Vardhan
Consultant, Mumbai
Shri Prem Vardhan is a civil engineer
with over 53 year s experience in
construction of mega projects and
author of four books related to
construction and infrastructure
development.
Have built in responsible positions
bridges, roads, Obra dam, air ports,
sea ports, mega industries and
prestigious buildings in India and
overseas.
He was involved in building of sea
ports in Marmugao, Visakhapatnam
outer harbor, ONGC s port near
Mumbai, New Mangalore port and
captive ports for Essar Group in
Hazira and Vadinar. He has
contributed in developing design
concepts of sea ports in Iran,Trinidad
andPapuaNewGuinea.
In addition to 38 years with Essar, he
has worked with Gammons,
Continental construction, Modi
Industries and in Oman with Quram
Contractors. He left Essar in June
2015,workingasExecutiveDirector.
Solving complex problems by
extensive night oil burning and
innovations had always been a
reasonforhissuccess.
Port-Led future Development :
“Trends, Sustainability &
Innovation”
Need and developmentof ports
Development is a continuous process for any civilization, may the
civilization be undeveloped, developing or developed. Development
was started in Pre-stone age. Continuous innovative initiatives by
our ancestors and implementation of their inventions made it
possible for us to be in present stage of development.
Other than humans none have such god’s gifts for thinking, feeling,
innovation and implementation of their proposals for betterment of
themselves and civilization in general. Humans would continue to
develop infrastructure and other requirements of modern civilization
for still more comfortable living for all the times to come. As we grow,
we have better knowledge base and tools to implement proposals
which are more complicated and complex innovations.
Undevelopedcivilizations
For an undeveloped civilization logistics and connectivity are major
concerns for any development. Creating connectivity by road is an
expensive and time-consuming exercise. Connectivity by air is faster
and cheaper but recurring expenses are high. Still it is preferred to
develop air connectivity instead of waiting for roads to be built in
forests and hostile logistics, in hinterland.
Very recently to develop and then operate gas fields in midst of
forest, 800 km from nearest sea port in Papua New Guinea, Exxon
Mobil have built an airport at site in deep forests in one fourth of
time and one third of cost of upgradation of road for movement of
their bulky equipment and personnel to gas fields.
Air connectivity is a major source of transportation in undeveloped
countries in South Pacific. Connectivity by sea is easy, cheap and
fast in the coastal areas, however it needs a bit of innovation and
basic knowledge. Many small and big countries in South Pacific,
Africa and even Australia at the time of initial development are/were
developed first in coastal areas and then developments penetrated
in hinterland slowly.
Developingcivilizations
In developing countries, building new highways or airports are big8

task due to demolition of many existing structures,
political interests/conflicts, time and heavy costs
involvements. Under the circumstances planners run
to find possibility of sea connectivity and build new or
upgrade existing ports and connect them by some
feeder roads with main land.
In the period of 1970-1990 many sea ports were built
in India and further upgraded to fulfill need of time
with restricted budget allocations. Earlier to this in
post-independence era major thrust in infrastructure
sector was provided to build roads, bridges, hydro
power stations, sanitation and drinking water supply
systems. China war in 1962 further necessitated
building of more roads and sea connectivity.
Developedcivilizations
There is always a desire to have still better living
facilities and humans keep on trying to create
something new in all the fields including sea
transport, for better handling of cargo, transport of
bulk cargo, water sports and off shore holidaying.
Sea transport also diverts loads of road and air
transport to itself, continuously increasing due to
increasing population and demands for better
facilities.
For security reasons backed with space constrains on
land, huge oil storage bunkers, submerged in ocean
are built and connected to their captive floating sea
ports called Single Point Mooring Buoy, hundreds of
kilometers away from shore, a big infrastructure
development initiative likely to be extended for
storage of other fluids of national importance in
developed countries. These bunkers are fed through
submerged pipe lines directly by production units.
Super tankers come along side Mooring Buoys and
discharge or take a load of cargo through pipe lines
connected to these buoys.
These buoys are adequately anchored in the sea bed
with strong chains. They are connected with flexible
pipes to the storage system for discharge and receive
oil from the vessels.
Single point mooring buoy with a ship ready to take
a load of cargo from the system.
To avoid traffic congestion and be cost effective,
bigger and bigger ships are produced and all the
countries including developing countries keep on
upgrading their ports to avail advantages of these
super bulk carriers.
Even in India, many subsea pipe lines are being
spread for transport of water, oil and gas one place to
other. First such initiative was taken in 1977 to
connect Bombay high to main land at URAN, near
Mumbai by a twin 18” oil and gas pipe lines, 218km
each and further connected to processing and
distribution systems.
Development of new sea ports and sea transport had
always been and will be a preferred transport system
in coastal areas all over the world.
Selection of location of port, its size and type of
construction are always innovative brain storming
exercises. Any mistake may have adverse results.
Whole port may become redundant if not planned and
built properly.
Major issues to be addressed while building a new
Sea port;
• Technical feasibility
• Commercial feasibility
• Navigation of ships/boats/barges to and from
port
• Siltation and scouring
• Alignment
• Engineering
Main structure of the port is the place, where ships
are brought, parked their alongside and go to new
destinations after unloading cargo and loading fresh
cargo from the port. This structure/facility is called
berth. Ship also changes crew if necessary and takes
fresh loads of drinking water, food supplies, fuel and
conducts minor maintenance. Port authorities are
obliged to provide all such facilities at costs This
berth is connected to main land for movement of men
and goods to and from port. Sufficient storage space
and cargo handling gear besides other facilities for
incoming ships are provided on the berth if feasible.
It should be technically feasible for safe functioning
of the port to enable ships to visit and discharge their
obligations. Their route in shallow waters is identified
and marked properly by floating objects called buoys
to guide safe movement of ships. Ship moves
between the buoys on either side. Highest object on
sea bed is deciding factor for safe sailing of the ships
and maximum draft allowed in port area. Ship must
clear afloat this object.
Ships should have enough water around to keep
floating even in lowest tidal conditions while parked
along the berth. 9

Ships should be safe berthing and should not have
any berthing stresses or forces due to flow of water.
Twice a day, water rises to a level called high tide and
reduces to a lower level called low tide causing water
currents and disturbance in sea water.
Moon makes one round around the earth every day.
Earth and moon keep on pulling each other all the
time by gravitational force. Due to this force of gravity
sea water closer to moon rises on the earth and
reduces slowly as moon passes by. There is
corresponding reduction in water level in other areas
away from moon. This induces flow of water in the
sea.
In this diagram, you can see that the moon's
gravitational force pulls on water in the oceans so
that there are "bulges" in the ocean on both sides of
the planet. The moon pulls water toward it, and this
causes the bulge toward the moon. The bulge on the
side of the Earth opposite the moon is caused by the
moon "pulling the Earth away" from the water on that
side. Water level on sides of the earth 90 degrees to
moon’s alignment shrinks in the process to
compensate extra water needed to form the bulges.
Rise in water level is called high tide and reduction of
water level is called low tide.
Ships should be least affected by waves due to
turbulence in sea created by rough weather caused
by heavy winds. These waves when hit the ship, ship
may bang on the berth hence get damaged. Ships
must be protected from waves in port area.
In consideration of above factors and to provide
ultimate safety to ships and ports there are following
types of ports;
Natural harbour
Mumbai ports and docks are situated in a natural
harbour. Harbour is a deep water large basin
protected from three sides by vast land and only a
small portion on one side is open and connected to
sea for movement of ships in deep waters. Once ship
enters the harbour, it is safe against damages by sea
turbulence, since all the turbulence subsides within a
short distance at the mouth of the harbour. Many
ports for different purposes, shapes and sizes have
been constructed on the inner shore line of Mumbai
harbour. These ports include, old Bombay docks,
naval docks, JNPT port, Butcher island oil terminal,
elephenta caves, ONGC’s port and many others. Still
enough space is available for further developments.
Possiblesitefor aprotected,allweatherport
Coast line without any/less waves
In the picture sea water is protected in two tiers first a
big hill in background and then again by a reef/
portion of land projecting in the sea. This reef could
also be called a natural breakwater. Port will be better
protected if these land masses are facing wind force
and protect the port against its effect.
Fair weatherports
Some ports do not have natural protection like
Mumbai harbour and economics does not permit to
make elaborate and expensive arrangements for
wave protection. Such ports are operative only when
sea is calm and negligible waves, which could be
tolerated by incoming ships and are closed when sea
becomes rough.
Picture shows turbulent waters in the sea, which have
multiplied by an obstruction of a small stationary
object, a protruding rock.
Any ship if enters in such turbulent waters of shallow
depth would be severely damaged.
10

Artificialharbours
In cases of pressing requirement of big ports with
necessary budgetary allocations artificial harbours
are built with stone walls in areas as necessary to
break waves and provide comfortable berthing
conditions within these walls. These walls are built by
dumping stones in different grades and sizes in
designed alignment and are called breakwaters,
carefully designed by elaborate model studies and
intricate engineering. Many of the breakwaters are
more than a kilometer long. Water remains calm
within these walls in all the seasons throughout the
year.
Breakwaters are built by dumping stones in different
grades, sizes and alignments as per design
engineering. If big stones are not available in desired
quality, concrete blocks are used instead of stones.
Big stones are necessary, else water waves will carry
away them while hitting these stones and slowly
breakwater would be washed away.
Sea waves hit on outside of the breakwaters and their
effect on the other side is eliminated.
Outer harbour of Visakhapatnam an extension to old
natural port of Visakhapatnam is an artificial harbour.
A water channel between two land masses leads to
old port, dry docks, naval port and ship building
yards. This channel was narrow at its mouth but now
has been widened after building of outer harbour.
Interestingly naval submarine GAZI from Pakistan in
1971 was on a mission to block this entrance
channel of old port by sinking a ship in the channel
but, instead, was eliminated mysteriously. Outer
harbor was in construction stage at that time.
Iran has built naval docks at the mouth of Arabian gulf
to possibly control movement of ships in the gulf if
required.
In the picture, sea is calm inside the harbour and
some waves in white color are visible outside/near
the end of breakwaters. Port berths for different
types of cargo and ship sizes are built within the
enclosure created by breakwaters
Vishakhapatnam outer harbour
Breakwater in construction-a crane is picking
concrete blocks from a barge and placing on
breakwater’s alignment on smaller stones. Sea is
calm on right hand side while on left of breakwater
there are some waves.
Construction of asmallport
Construction of a port requires elaborate feasibility
studies including model analysis either in physical
models available in CWPRS, Pune or computerized
stimulations, before a decision is taken on selection
of a location of the proposed new port.
For smaller ports a few checks would reasonably
decide, location, alignment and type of port could be
constructed in the area.
First let us check minimum and maximum tide levels
in the area and difference between two levels would
indicate, safe draft of the ships in normal
circumstances if port is built at a place having water
at low tide. Suppose highest high tide level is 5
meters and lowest tide level is 0.00 then ships
needing 4.5 meters water could be safely brought to
the port without much investigations. Half meter is
minimum margin must be kept avoiding ship hitting
ground in case of swells due to any reasons. 11

These tide tables for the year would be available in
nearest port office.
With this we decide maximum draft of the ships which
could come in high tides, without any further
investigations
Take a drive along the coast line and check if some
good location of protected shore line is available as
shown in the following Google slide. Yellow line is
existing road.
One may not easily get such a good protected sea
front but try to find the best available location.
Visit the place at the time of lowest low tide. And plot
the contour of the water level.
Check if any out crops are visible in sea at lowest
water level. If yes, please plot them on your plan
Similarly check the contours of water level in high tide
and plot them on the drawing.
Now if one intends to bring a boat/ ship of draft equal
to difference between two tides levels to a jetty/ port
berth at any location of the low tide contours, it will
have no problem to come up to berth in high tide and
sail out in later high tide.
Check the locations of minimum water waves coming
to shore in high tide and low tide. The location getting
least, or no waves is the best location of the
berth/jetty.
Finalizing Jettyalignment.
Bring a boat and anchor near selected location of the
berth. Boat will align itself, parallel to the flow of
water. Check boat alignment in low tide and high tide.
It should be almost the same with a difference that
boat would turn 180 degrees in its orientation in high
tide and low tide, always water pushing the boat
against the anchor. These boats are anchored on a
single anchor. Now if one brings an object(berth)
alongside the boat, it would be feather touching the
boat provided there are no other disturbances
created by the berth. This alignment of the boat is the
alignment of the berth / jetty face.
Jetty could be placed along the selected location on
low tide contour with it’s face in the alignment,
determined by boat as stated earlier. generally, at an
angle, protruding out further in sea. If this angle is
almost 90degrees from shore line one could park
ships on both sides of the port, increasing port utility.
However, it would be a small exercise of design and
orientation of jetty.
It would be safer to have jetty on piles for free flow of
water under and along the jetty. Jetty like a concrete
wall and backfilled on the back side of the berth,
would need elaborate model studies to avoid
turbulence in water created by the jetty and possible
siltation on jetty face, both are harmful/ not desirable
for safe port functioning.
For deeper port requirements, sounding in sea be
taken to ascertain free movements of ship in high
tides or normally in all tides and jetty is shifted
forward parallel to the same alignment to location of
safe parking in low tides.
12

For new location it is preferred to check alignment of
the jetty by fixing a boat in the alignment as explained
earlier.
A local pit is often dug in front of the jetty for safe
parking of ship in extreme low tides. Ships come and
stay in this pit always afloat and parked along side of
the jetty, finish unloading and loading of cargo and
then sail out in next high tide.
This is a single berth on piles just very close to the
end of low tide. Substantial length of approach and
full jetty deck have also been made on piles to avoid
siltation and possible turbulence. There after on
back, earthen bund is also made parallel to current/
face of the jetty. If there were no piles, there would
have been possibilities of turbulence, siltation or
scour along the jetty due to restrictions created for
movement of water near jetty.
This is a small jetty on timber piles. In deep forest
without any connectivity and infrastructure. Big
timber logs are cut from forest and driven on banks of
river / sea by a manually operated drop hammer
supported by a tripod. Small cranes could be brought
on the jetty for loading of jungle produce timber,
minerals and other cargo on to barges and small
ships. Such jetties are very common in south pacific
and far east countries. They last a good life with least
maintenance. For faster and convenient loading of
minerals, small conveyors are installed on the jetty
which reduces load on jetty and increase efficiency.
Trucks carrying minerals tip off the material in
hoppers of conveyors.
These jetties are made first and used to mobilize
equipment and other infrastructure material and then
used to export the cargo after finishing the
preliminaries and start of commercial production.
This is a normal all-weather sea port, built on
concrete piles, away from sea shore and connected
by an approach bridge in protected waters.
KalpsarProject
Kalpsar Project have been a very ambitious dream
project of Gujarat and many people including author
have tried to implement. It involves construction of a
34 miles long dam across gulf of Khambhat between
a convenient location near Olpad to a place near
Alang and development of the basin created by this
dam to get following main benefits
• All major rivers of Gujarat terminate in this gulf. By
using their entire water gainfully, in a period of
seven years the whole basin will turn into a
drinking water basin (initially some treatment
would be required before drinking by domestic
water purification units but should be good for
agriculture after seven years as stated above). In
this period good water will be mixed with sea water
arrested in the basin and this mixed water will be
released in sea periodically by opening dam gates
in low tides. Thus salt content in basin water
would reduce slowly.
• Gujarat will become water surplus.
• Subsoil water table will be gradually charged with
better water around the basin.
• Travel time between the two locations will reduce
to one hour.
• In addition of toll tax on vehicles passing on road
over the dam and Land between high tide and low
tide levels inside basin will be developed and sold
for building mega townships. Both together
should be generating enough revenue to cover
cost of the project.
• Modern township with hospitals, hotels, offices,
play grounds, watersports, university extension
etc. could be planned and built in area two to
13

three times bigger than Singapore.
• If no resource constrains construction time
should be five years-all Indian contractors.
However, would need an excellent grade town
planner.
• Location of dam given in google slide is indicative.
• Costs estimates could be worked out after final
decision on dam location and agreement on other
parameters.
At one time this project was shelved due to following
reasons :
• Remains of Mohenjo-Daro civilization are in sea
bed at the location of dam have archeological
importance, hence cannot be destroyed without
their consent.
• Nirma plant will have to close soda ash and soap
production in their existing plant and find new
business due to non-availability of sea water
• One sea port plus a few small jetties inside the
basin will close, since their exit to sea will be
blocked.
• Effluent disposals from industries in sea in
proposed basin yet to be explored. If any would
stop or find other alternatives.
• All salt pans in this basin will stop production due
to water turning sweet but cost of land will be
grossly appreciated.
If a ferry is started between two locations for cars and
trucks, at least one problem would be resolved.
Boats will have to be powerful to face high water
currents.
RIVERWATERTRANSPORT
River water transport in short distances to the ports
is feasible in India through rivers like Hooghly river in
Kolkata and Mondovi and Zuari rivers in Goa. These
rivers are formed by natural depressions filled with
sea water in coastal areas and are extensively used
for bringing different cargo to the sea ports.
River water transport in major rivers remains a big
challenge due to many reasons, a few elaborated
below.
Major rivers of India like Ganges originated from
Himalayas travel over thousands of kilometers before
reaching sea. They carry lot of sediments with them
which flows with them due to gradients and speed. By
the time river water reaches sea, it velocity reduces
due to sea water resistance and all the sediments
remain in river water settle down on the river bed,
creating many deltas in the mouth of the rivers. These
deltas are biggest obstruction for ships entering the
river. Dredging is difficult since these deltas move
very fast to deeper locations.
These rivers have wide spread plains which inundate
in rainy seasons and become dry in other seasons. In
the process river changes it course within the areas
of their submergence.
Many barrages, hydroelectric power stations, lift
irrigation projects and bridges etc. are built in course
of rivers, all creating obstruction for movement of big
boats and barges.
Still once a while over dimension equipment not
possible to bring by road are transported through
these rivers, which are always a challenge.
We need to be explore transport in rivers if possible
at affordable costs. Could be started in segments.14

Shri Ganesh Radhakrishnan
Associate Professor
Jindal School of Business
Shri Ganesh Radhakrishnan, Associate
Professor, Jindal School of Business, is a
graduate of the National Defence Academy
and a submariner with Master Mariner
qualifications.
His interest areas are in consulting and
research in the maritime domain. He has
fairly extensive consulting experience in the
maritime domain - ports, shipbuilding and
repair, shipping and other infrastructure
domains working for various levels
governments and their agencies in India and
abroad. He has worked with most major
corporates with interest in maritime
infrastructure.
Shri Ganesh holds advanced degrees
including an MBA from IIM Kozhikode and
doctorate from IIM Ahmedabad. His PhD
dissertation focussed on container terminal
efficiency. He has presented at various
research conferences in the country and
abroad viz, in USA, Norway, Demark,
SwedenandChina.
PORT REGULATIONS AND
COMPETITION
Price competition is not very effective in a developing
country experiencing rapid economic growth. Capacity
expansion in the port sector is overwhelmingly dependent
on the private sector, which is only efficient with
competition or in its absence appropriate regulations to
stimulate competition.
The Indian experience with tariff regulations has not been
very encouraging. The lack of level playing field between
Major and Non-Major Ports is painfully obvious. The
preamble to the TAMP 2013 guidelines acknowledges the
lack of level playing field and refers to the rapid rise and the
significant cargo share of the Non-Major Ports to advocate
market determined tariffs at the major ports. We argue that
the current policy initiatives to dismantle tariff regulation
are based on the erroneous presumption that sufficient
competition exists in the port sector.
With the limited supply of port services and high barriers to
entry, in the short run, a few terminal operators may control
and consolidate supply on a range and establish
dominance at the regional level. The cumulative impact of
increased investments and traffic drop post-2009 created
pockets of substantial excess capacity, mostly located in
the 'private ports'. Consequently, the port industry has
become increasingly oligopolistic with a few Non-Major
ports operators having significant scale and significant
vertical integration.
The increased concentration of port capacity in an industry
with excess capacity with select few operators dramatically
increases the propensity for strategic behaviour. The
current initiatives to dilute economic regulation, therefore,
does not augur well for the industry.
15

Capt. Unmesh Abhyankar
Joint President
Adani Ports and Special Economic Zone Limited
Ahmedabad
Capt. UnmeshAbhyankar is currently the Joint President atAdani Ports and Special Economic Zone
Limited and leads Business Excellence, IT, Techno-commercial, CoEs for Engineering, Planning,
Technical Training among others. In a very short stint, he has been instrumental in effecting long
lasting changes for multiple sites of APSEZ. Some of his most recent accomplishments include
Activity Based Costing and Standardized SOPs which have unlocked additional value for the
company. He has been actively involved in shaping the company s long term vision and future
direction.
Prior to his current assignment, he was CEO - Mundra Port where he spearheaded the port s stellar
performance in cargo handling since 2009. Qualified as Masters (Foreign Going) and having
undergone leadership programmes,CaptAbhyankar has 35+ years of working experience spanning
acrossmarine,cargooperations,leadingteamsanddeliveringoutstandingperformance.
During his tenure at APSEZ, Mundra port leap-frogged from being 10th largest port in 2009 to the
largest commercial port in India, surpassing all the major ports. Indeed, Mundra Port is the first
commercialportinIndiatoachieve100+MnMTcargohandlinginayear.
Capt Abhyankar s ability to foster a culture of cohesiveness and oneness among his team coupled
with leadership skills and expertise in operations have turned Mundra into amongst the most
efficient ports internationally. As volumes grew exponentially, he ensured that the infrastructure
and operational capabilities were scaled up ahead of the demand to deliver desired customer
servicessmoothlyandseamlessly.
Capt Abhyankar practices participatory leadership style and keeps an open door policy by being
accessible to all.He is quick in decision making and encourages,empowers and enables entire team
to act and achieve the desired outcome. Being an avid propagator for adoption of technology, he
personally supervises the automation, mechanization and innovation projects at the Port. He has
pioneered many firsts in India and the Ports sector such as formation and operation of long-haul
railway rakes known as Python, Double stack container trains, mechanized handling of fertilizers,
state- of-art steel yard, private rail network for port connectivity, metal-sieve for Agri-export,
automated pilotage recording,among others.Thanks to his passion,the organization has a distinct
cultureofthinking,ideatingbyemployeesacrossalllevelsandcontinuousimprovement.
During his leadership,the Port has been conferred many awards by the port and logistics industry as
wellasothercross-industryforumsduringthisperiod.
In recognition of his exemplary contribution to the industry, he was conferred upon AMA-Metro
Chem Outstanding Manager of theYear 2013.He was also conferred Shipping & Port Personality of
theYearatGujaratJunction2015.
16

Shri B. Velan
Managing Director
Scorpio Engineering Pvt. Ltd.
Bangalore
Shri B.Velan is a mechanical engineer
from the University of Madras.He is a
specialist bulk materials handling
systems engineer with 35 years
experience in this field and is the
founder and Managing Director of
Scorpio Engineering Pvt Ltd, one of
India's reputed and leading bulk
materials handling systems
engineering and manufacturing
Company.
Besides being a pneumatic conveying
specialist his technical expertise is in
coastal bulk shipping, ship and barge
loading and unloading of dry bulk
and the associated storage (silo
storage, flat storage and dome
storage) reclaim and bagging/bulker
systems. Containerized bulk logistics
isanotherareaofexpertise.
He is an internationally well known
speaker and has addressed many
bulkhandlingconferencesworldwide
for the past 20 years. He is an avid
motorbiking enthusiast and is the
founder president of 50+ Bulleteers
in Bangalore, a riding club of Bullet
motorbikersovertheageof50.
COASTAL BULK SHIPPING AND
TERMINAL OPERATIONS
With the Govt thrust on improving our coastal shipping infrastructure
and with our 7500km coastline, it is imperative that goods start the
shift from road/ rail to coastal and inland waterway modes.
Dry bulk materials are a prime candidate for such coastal and inland
waterway movement especially if the movement of the materials is
in bulk. While bagged bulk movement is well known, not much is
known in the area of bulk movement especially with respect to
methods of loading, unloading, storage and reclaim as they require
specialized technology and equipment. The need for
environmentally friendly operations with minimal or nil dust pollution
is another critical requirement that is often overlooked.
This session will highlight the various technologies available in India
and abroad for such clean dry bulk coastal logistics management.
Cement, Flyash, Fertilizer, Minerals, Chemicals, Petrochemicals are
a few of the many bulk materials that lend themselves to efficient
bulk logistics in coastal shipping and distribution. Operating
expenses are substantially lower in coastal shipping as compared to
road and rail movement. Returns on capital investment are also
attractive provided equipment and technology is sourced
domestically.
17

Over 34 years in International Freight Forwarding & Customs. Graduate in B.Sc (Chemistry), L.L.B., D.B.M
(Bombay University). He holds businees position in varios firms includes - Partner in JBS Group of
Companies, Jasvant B Shah - Licensed Custom House Agents, Star Freight P Ltd., - International Freight
Forwarders and MultimodalTransporters; IATAAgents;Advisory; Innovation;Trading and JBSAcademy P
Ltd.-SkillupdationEducation.
His professional trainings includes - Licensed Custom House Agent (Mumbai & Ahmedabad Customs);
Special Diploma in Freight Forwarding from Landesberfuschule, Mitterdorf, Austria; Fellow of the
Chartered Institute of Logistics and Transport UK; Certificate of Competence from FIATA; Basic and
Advanced Handling as well as Dangerous Goods handling certificate by Air-India Staff Training College;
Diploma in Air Cargo handling issued by IATA - FIATA, Switzerland; IMDG Handling certification by The
Shipping Corporation of India; Diploma in Handling of Dangerous Goods conducted by IATA-FIATA,
Switzerland;andSeniorManagementProgrammeatIIM-AonStrategicPortManagement.
His achievements are - "Persona of the month" - Ahmedabad Management Association - March 2005;
"Personality of the Year 2007" The Economic Times : Gujarat Logictics Award 2007; "Best People
Development Award 2007" in The Economic Times : Gujarat Logictics Award 2007; "Best Teacher in
Logistics" by CILT (Chartered Institiute of Logistics and Transport) India 2012; "Logistics Professional of
theYear"GujaratStarAwards2012;"DynamicLogisticsProfessionaloftheYearAward"GujaratJunction
2012; Certificate for continued support to Port of Antwerp in India - Chairman of Antwerp Port & Vice
Mayor ofAntwerp City in presence of Governor ofAntwerp;"Corporate Social Responsibility of theYear"
- Gujarat StarAward - Daily ShippingTimes 2013; "Logistics Personality & Mentor of theYear" - Gujarat
StarAward - Daily ShippingTime 2014;"Distinction in Supply Chain Skill Development" - ISCM and SCM
Pro in 2014; "Exemplary Service to the Forwarding Community" - Asia Aviation sociates and Infra Log
2016; "DDP Game Changer Award" - India Cargo Award 2017; "WCO Certificate of Merit" - World
CustomsOrganization2018;"TrueLeadershipRoleinCustomsBrokingForwardingandLogisticsTrade"-
EXIM:GujaratJunctionCargo&LogisticsAwards2018.
HispublicationsareClearancethroughIndianCustomsandHandbookforCustomsClearance.
His activities in respect ofTraining and Education for Supply Chain and Logistics are JBSAcademy P Ltd.,
Center for Logistics,Maritime and Management Studies & JR eBs eSahrachh -AMA Centre for Shipping &
Logistics; Member of the Logistics Sector Council set up by National Skill Ministry India; More than 180
programmes conducted Pan India for Customs related training to Exporters;Importers;Customs Brokers;
ShippingAgents;InternationalFreightForwarders;IATAAgents;Custodiansetc.
Languages spoken: English, Hindi, Gujarati, Marathi, German. He has travelled many countries i.e.
Singapore, UAE, Bahrain, Sultanate of Oman, Hong Kong, Thailand, Austria, Belgium, U K, France,
Germany,Russia,Hungary,SriLanka,Netherlands,Malaysia,China,USA,Phillipines;Taiwani.
Shri Samir Shah
Chairman, CII Gujarat Taskforce on
Logistics & Partner & Director,
JBS Group of Companies,Ahmedabad
18

Dr. Vishal Bisen
Managing Director,
Samveda Group; Landmark CFS Pvt. Ltd; CFS
Mundra
DrVishhal Bisen, Managing Director at Samveda Group and at Landmark CFS Pvt. Ltd;
CFS at Mundra. He is the professional with proven track record in the field of
Logistics/Shipping/Supply Chain management having more than 23 years of
professional experience with Doctorate (Ph.D.) degree in Management Science on
LOGISTICS&MultiModalManagement.
He had been associated with "Saurashtra Group" as Chief Executive Officer and
managed their diversified business of Logistics & Supply Chain Management with
proven professional achievements in overall development of organization during his
tenure at Saurashtra Group. He has worked as a "General Manager" at Honeycomb
LogisticsPvtLtd.
He had honored as a Dynamic Shipping & Logistics Professional of Year - 2018 at
Gujarat JunctionAward - 2018.He is recipient of Indywood Maritime ExcellenceAward -
2016 for professional excellence in Logistics & supply chain sector on 25th September,
2016 at Ramoji Film City, Hyderabad. He is head of Logistics & supply chain wing of Navi
MumbaiChamberofBusiness&Industry,NaviMumbai .
He wasVice Chairman of Corporate Social Responsibility (CSR) Committee of RI,District -
3051 in 2014-15. He was Jury Member for MALA Awards - 2014 and Gujarat Junction
Awards in 2013 & 2012. He was president of CFS Association of Mundra since August,
2009 to August, 2014. He was the finalist for the Young Logistics Professional - 2014 at
Gujarat Junction - 2014. He won various awards for Honeycomb Logistics Pvt Ltd and
Saurashtra Containers Pvt Ltd in Gujarat Junction awards and Gujarat Star Awards at
variousoccasions.
He was president of Rotary Club of Mundra in 2013-14. He had participated as a
moderator , Panelist and Speaker in many conferences on Logistics & supply chain
sector and also participated at 7th Logistics & Supply Chain Conclave - 2013 held at
HotelTaj Lands End -Worli Mumbai as a Moderator of Panel discussion on Logistics &
Supply Chain Network in India - Challenges and Prospects. Shri Vijay Kalantri and Shri
MukulJainhasbeenthepanelistinthisPanel.
He has presented Articles in various conferences includes - 55th All India Commerce
Conferenceon MultimodalLogisticsManagement heldinUdaipuron18-20Oct 02,-
7th National Conference of PRACHEE and - 1st National conference of PIMG at Gwalior
during21-23April,2006onSupplyChainManagement.
19

20
ShriAmardeep Singh Parmar isTerminal
Head of Kandla International Container
Terminal Pvt. Ltd., a group company of
India s largest Shipping company The J
MBaxiGroup.
Shri Parmar holds Degree in Computer
ScienceEngineeringandhasexperience
inShippingIndustryforover20years.
He has held key positions functional,
operational and commercial leadership
roles with JM Baxi group companies in
arena of in liner business, stevedoring,
CHA, bulk and break-bulk business
before assuming his role as Terminal
Head of Kandla International Container
Terminal Pvt. Ltd. in June 2016, which
includes the responsibilities of steering
challenging assignment to build state
of art intrastate at the abounded
terminals of KPT and drive and develop
business at KICT with a competitive
edge. He actively co-ordinates J M Baxi
group activities in Kutch and plays a
pivotal role in the successful
amalgamation process of various
activities of verticals of the group while
headingKICT.
Shri Parmar has held various positions
in Kandla Port Steamship Agents
Association, Mundra Port Shipping
Agents Association and an active
member of Gandhidham Chamber of
Commerce. He is an admired leader
among shipping fraternity in the region,
and his deep insight of business
contributes for sustainable business
initiatives.
MULTI MODAL LOGISTICS &
SUPPLY CHAIN INTRICACIES
Shri Amardeep Singh Parmar as a panellist will touch upon the
what is multimodal logistics and the its regime in India. The
manufacturing hubs in India are located deep in the hinterland
and faraway from the gateway ports. He will touch upon the
scenario of logistics growth in India vis – a vis Global parameters
and the Role of multi modal transport in supply chain and growth
of multimodal logistics.
There are multiple advantages of multimodal logistics, which
will address to many challenges that the logistic industry is
facing and will be able to cater to need of trade and commerce.
Government of India have taken various initiative which Mr.
Parmar will highlight during discussion with special focus to
Ports and the opportunities at macro level.
He will be share his wide experience in managing the intricacies
of multimodal logistics and supply by discussing the case of
Kandla International Container Terminal Pvt Ltd. He will also
highlight how as terminal operator KICTPL has successfully
challenged the general perception regarding the limitations of
infrastructure and services regarding the terminal operator
prevails and promotes ease of doing business.
Shri Amardeep Singh
Parmar
Vice-President,
J M Baxi & Co.,
Gandhidham

Articles
21

PORTSSECTOR AND OUTLOOK
Overview
Ports handle almost 95% of total international trade
volume in India. With the Government of India’s
“Make in India” initiative for rapid economic growth, it
is expected that the share of merchandize trade in
India’s GDP would increase substantially in the next 5
years. Currently, the proportion of merchandize trade
in Gross Domestic Product (GDP) of India is 27.5%
and USD 623 billion in value terms (as per World
Bank- 2016) compared to 32.9% or USD 3.7 trillion
worth of merchandize trade of China. This data
suggests sizable potential for growth in merchandize
trade in India in the years to come, which would
require technological upgradation and capacity
development of ports.
Indian Ocean region is significant as nearly 50% of
the world trade and almost 60% of the global oil trade
passes through this region. Indian ports could play a
major role by providing technical as well as
infrastructural support to these vessels.
Government on its part has ushered in “ease of
doing business” measures for the ports sector by
allowing 100% FDI and introducing standardized
bidding process for PPP Projects. The Government
is incentivizing and supporting developers by
providing viability gap funding for PPP Projects,
giving infrastructure status to shipping industry and
tax exemption for infrastructure development in
ports.
During 2016-17, capacity addition of 100 Million
Tons Per Annum (MTPA) has been implemented
across the 12 major ports. The Ministry of Shipping
through its major ports trust and entities like
Shipping Corporation of India and Dredging
Corporation is aiming to raise up to Rs. 50,000 crore
of loans in dollar denominated bonds. The
government also expects the Private sector to invest
over Rs. 2 lakh crore in the next ten years out of
which, approximately Rs. 36,000 crore will be
towards major-por ts expansion and for the
development of non-major & intermediate ports.22

Growth in trade through ports would be led by
petroleum refineries, where major players are
planning to double their existing refining capacity by
the year 2025. Textiles and garments, consumer
electronics, Iron-ore and automobiles would also
contribute towards incremental growth in
merchandize trade in the coming years.
Ports:AGlobalperspective
Ports act as an economic catalyst and help in
integrating smaller economies with the global the
economic system. Water ways are the most
economical means of bulk transport. For industries
to grow and develop in an economy, uninterrupted
power supply for manufacturing and a well-developed
logistics is required. in fact, if we take a look at
developed economies, they are not self-sufficient in
terms of availability of resources and raw materials
required for manufacturing and setting up industries.
Table 1 : Comparing India and China - Trade, Ports and Logistics
India China Germany
Coastline and Major Ports 7,517 km and 14,400 km and 34 2,389 km and
12 major ports major ports with 21 port locations
with capacity of capacity of top
1,065 MMT 10 ports aggregating
6,100 MMT
Share in World Merchandize Export 1.7% 13.1% 8.4%
Share in World Merchandize Import 2.2% 9.8% 6.5%
Spend on Logistics as a % of GDP 14% 18% 7-8%
Logistics performance Index (LPI 2016)* 3.45 3.66 4.28
(Ranked: 35/160) (Ranked: 27/160) (Ranked: 1/160)
Source: UNCTAD STAT * Logistics Performance Index is an annual logistics benchmark which was introduced by World Bank in 2007. It
takes into account infrastructure, information technology implementation, customs and procedures as well as global shipping volumes, for
arriving at the Index score for each country.
However, efficient and economical logistics and
power supply have ensured that they can import and
manufacture goods and services at competitive
prices.
Sea transport evolved over the last few decades with
innovations like bulk and container shipping. It is
estimated that 80% of the global trade by volume and
almost 75% of the trade by value is handled by
maritime transport. As per data from World Trade
Organization, sea borne trade grew at a CAGR of 3.7%
between 1991 and 2016 compared to growth an
annual average growth of 2.8% in the World economy.
Logistics cost forms a significant part of the GDP in
an economy. For instance, China’s logistics cost
accounts for 18% of the GDP. In 2016, China’s share
in world total of export and import was 13.1% and
9.8% respectively, making it the world’s largest
exporter and second largest importer.
23

Portsin India
There are 12 major and about 200 minor and
intermediate ports including 69 operational non-
major ports, spread along the 7517 km coastline of
India. The 12 major ports in the country have a
combined total capacity of 1,065 million metric
tonnes (MMT), while the capacity at non-major ports
is roughly 700MMT. This combined capacity of
1,765MMT at major and non-major ports is expected
to be augmented to 2,500 MMT by 2025.
All the major ports, except Ennore Port which is the
only corporatized major port and is registered as a
company, are Central Government administered
through relevant Port Trusts.
India was a closed economy till 1990, which gradually
adopted a policy of liberalization, privatization and
globalization. Successive governments aimed at
developing expor t potential and announced
measures which encouraged foreign trade.
Development of special economic zones (SEZ) and
a l l o w i n g f o r e i g n e q u i t y
participation to aid exports did
help India achieve high trade
growth. But these measures
were inadequate as it did not lay
emphasis on co-development of
i n f r a s t r u c t u r e a n d c o s t
competitiveness.
China successfully implemented
the co-development model. The
country started with its reforms in
1980s which led to the formation
of industrial clusters in the
coastal regions. Consequently,
this attracted FDI which was
backed by policies to create
favorable conditions for mass
production. This entire chain of policies and
development led to foreign enterprises setting up their
export oriented facilities in China. China became a
member of World Trade Organization in 2001, and
adopted significant changes to its economy, which has
led to its deeper integration with the world economy.
The consumer demand boom in mid-2000 in
developed and emerging economies provided China
the opportunity to expand its export industry.
Trade volume and performance for the year
2016-17
Traffic handled at Indian ports grew at a CAGR of
7.4% between 1981 and 2016. For the same period,
trade in value terms increased from USD 24 billion to
USD 643 billion. An important shift that has been
observed over the last 10 years is the emergence of
non-major ports in terms of cargo volume handled.
This can be attributed to the strategic location,
modernized infrastructure and efficient operations of
non-major ports. Non Major ports constituted less
than 10% of the total traffic in FY81. In FY 16 their
Chart 1 : Ports and its various functions
24

share has increased to 43%. Non-major ports have
come up at strategic locations such as Mundra on the
west coast and Krishnapatnam on the east coast as
they are key to container business growth in India and
have also extensively participated in optimizing
hinterland connection such as rail and road
operations.
For the year 2016-17, the total merchandize trade in
volume terms was 1,132.2 million tonnes, 5.5%
growth over 2015-16. Data for the years 2010-17 of
cargo volume handled by major and non-major ports
is shown in Graph 1.
• For the current year, April-August 2017, the 12
major ports handled 273.96 million tonnes of
cargo as against 265.31 million tonnes handled
during the corresponding period of previous year,
an overall growth of 3.3%.
• In terms of cargo profile handled by major ports,
48% of the total was solid cargos which included
iron-ore, coal, fertilizer and other cargo; 33% was
petroleum, oil and lubricants (POL) and the
remaining was in the form of container cargo.
• Seven Ports (Kolkata, Paradip, Chennai, Cochin,
New Mangalore, Mumbai and JNPT) registered
positive growth in traffic during the period.
• The highest growth was registered by Cochin
(19.99%), followed by New Mangalore (13.26%),
Paradip (12.57%), Kolkata [incl. Haldia] (11.45%)
and JNPT (6.18%)
• Cochin Ports growth was mainly due to increase in
traffic of POL (27.99%) and Containers (12.79%).
• In Kolkata Port, overall growth was positive i.e.
11.45%. Haldia Dock Complex (HDC) registered
positive growth of 19.08%, mainly due to increase
in iron ore traffic.
• Kandla, Paradip, JNPT, Mumbai and Vizag handled
60% of the major port traffic during the above
mentioned period.
Cargo-profile
The largest share in total cargo handled was of
petroleum, oil and lubricants (POL) which accounted
for 34.00%, followed by Container (20.17%), thermal
& Steam Coal (12.82%), Other Misc. Cargo (12.12%),
Coking & Other Coal (7.49%), Iron Ore & Pellets
(6.84%), Other Liquid (4.29%), Finished Fertilizer
(1.17%) and FRM (1.10%). (Refer to appendix for
commodity-wise growth rates)
Evaluating India on Global benchmarks for
trading acrossborders and seaway connectivity
In terms of ease of doing business and export and
import of goods, India has improved over the years,
as per data from World Bank and IFC report (Doing
Business 2015, 2016). The ranking for trading
across border for India has improved from 178/189
in 2015 to 133/189 in 2016. This does reveal that
regulations related to movement of goods for export-
import have improved post 2014. This rank takes into
consideration documentation process involved, time
and cost involved in importing/exporting goods. This
also exhibits debottlenecking at ports in terms of
movement of goods, documentation,inspection etc.
25

The Liner Shipping Connectivity Index captures how
well countries are connected to global shipping
networks. It is computed by the United Nations
Conference on Trade and Development (UNCTAD)
based on five components of the maritime transport
sector: number of ships, their container-carrying
capacity, maximum vessel size, number of services,
and number of companies that deploy container
ships in a country's ports. For each of the five
components, a country's value is divided by the
maximum value of that component in 2004, and for
each country, the average of the five components is
calculated. This average is then divided by the
maximum average for 2004 and multiplied by 100. In
this way, the index generates the value 100 for the
country with the highest average index of the five
components in 2004. India’s score on the Index has
grown from 34.1 to 46.2 between 2004-16.
Germany’s score during inception of this index was
76.6 and score stood at 97.75 in 2016. China, which
tops the index since inception has a score of 167.4.
Sagarmala Programme
Sagarmala programme is an initiative of the
Government of India to modernize India's ports so
Table 2 : Mode of Logistics and their characteristics
Waterways Rail transport Road Transport
Cost of transportation Low-cost, low-pollution, Costs approximately 25% Costs approximately 2-3
and low-carbon, mass more than sea/waterway times waterway/sea
transport mode. transportation and 15% transportation.
less than roadways.
Usage Best suited for bulk Best suited for industrial Best suited for on-
logistics handling. and medium scale demand and small scale
logistics. logistics
Challenges Under-developed Extensive Rail network Road network is not the
infrastructure and lack with well integrated hubs easiest of infrastructure
of technology with other logistics network to create given
implementation at ports. medium like ports and the land acquisition
Excess human roadways. impediment in India.
intervention causes High costs of
delay and increased costs. construction of roads
Constant dredging in and maintenance.
case of man-made ports. Susceptibility to road
accidents.
that port-led development can be augmented and
coastlines can be developed to contribute in India's
growth. The project envisages transforming the
existing ports into modern world class ports and
integrate the development of these port facilities,
with the Industrial clusters and the hinterland; and
creating efficient evacuation systems through road,
rail, inland and coastal waterways. Under Sagarmala
Programme, 415 projects, at an estimated
investment of approximately Rs.8 Lkh crore, have
been identified across port modernization & new port
development, port connectivity enhancement, port-
linked industrialization and coastal community
development for phase wise implementation over the
period 2015 to 2035.
Development in Gujarat is a major example of
economic growth backed by development of logistics
and port infrastructure. Amongst Indian States,
Gujarat has been a pioneer in adopting the strategy of
port-led development, with significant results. While
in the 1980s, the state grew an average of 5.1% per
annum (y-o-y) (National average was 5.47%, this
accelerated to 8.15% per annum in the 1990’s
(National average was 6.98%) and subsequently to
more than 10% per annum till 2014, substantially
benefitting from the port-led development model.
Project Theme No. of Projects Project Cost (Rs. Cr)
Port Modernisation 189 142,828
Connectivity Enhancement 170 230,576
Port-Linked Industrialisation 33 420,881
Coastal Community Development 23 4,216
Total 415 798,500
Source: Ministry of Shipping (GoI)26

Gujarat Maritime Board (GMB) which administers
some 41 non-major ports in Gujarat, has maintained
a share above 70% of the total traffic handled by non-
major ports in the country. GMB ports handled
340MT of cargo in FY16.
Master Plans have been prepared for all the 12 major
ports under Sagarmala Programme, and 142 port
capacity expansion projects and capacity of 884
MTPA have been identified for implementation over
the next 20 years. Port led development helps
industries transport their products at an efficient and
economical price levels. Developing and modernizing
ports also offers spill-over benefits like upliftment of
coastal communities, employment opportunities and
development of infrastructure and industries along
these ports.
Development projects undertaken in Sagarmala
initiative would focus on
• M e c h a n i z a t i o n a n d t e c h n o l o g i c a l
improvements: Old and low capacity equipment
used at major ports has held back productivity at
several ber ths. These equipments are
insufficient to meet the current productivity
requirements. Inadequate maintenance leads to
frequent breakdowns. Several ports including
Kandla, Haldia and Tuticorin have been identified
to replace old equipment.
• Draft enhancement (dredging): The draft at major
ports is less in comparison to depth required to
accommodate large new-generation ships.
Average depth of ports in India ranges between 12
and 14 meters. International ports like Port of
Rotterdam have a depth of 24-26 meter and can
handle container vessels with capacity of more
than 15,000 twenty feet equivalent unit (TEU) and
super tankers. This would not only lead to more
vessels using Indian ports directly but would lead
to reduction of Indian goods being transshipped to
other foreign por ts for lack of ber thing
infrastructure, thereby improving the logistics
costs for exporters.
• New terminal development: Major ports are
nearing their maximum potential to handle cargo.
The Government under the Sagarmala project
would focus on building new terminals and berths
so that they are able to handle the large cargo
capacity traffic expected in the coming 8-10
years. Kandla port for instance has built a coastal
berth to handle food grains and fertilizers.
Development of Inland waterways
The Government of India is also trying to develop
Inland Waterways which would be known as National
Waterway 1 or NW1- to ferry cargo from the eastern
seaport of Haldia to Varanasi which involves a
distance of 1360 km.
The waterways stretch between Kolkata and Delhi
passes through one of India’s most densely
populated areas. While the region is estimated to
generate about 370 million tonnes of freight
annually, only a fraction of it currently is transported
by waterways. Cargo from the Gangetic states of
Bihar and Uttar Pradesh are transported to the sea
ports of Mumbai in Maharashtra or Kandla in Gujarat
through roadways or railways. The development of
inland waterway will help these states transport
goods directly to the Kolkata-Haldia Port complex.
The World Bank is financing the development of the
Ganga waterway with a loan of USD375 million.
The Project will help establish six multi-modal freight 27

terminals - at Varanasi, Ghazipur, Kalughat,
Sahibgunj, Triveni and Haldia. Additionally, five new
Roll On-Roll Off (RO-RO) crossings at different
locations will help trucks and other vehicles transfer
from road to river and vice versa.
Government initiatives and policy support for
strengthening ports sector:
In order to strengthen the shipping and ports sector
and make it internationally competitive, the
Government of India has taken various steps which
include:
• The Government introduced the Major Port
Authorities Bill, 2016 in Lok Sabha in December
2016. The bill seeks to give greater autonomy in
order to help the major ports impart faster and
transparent decision-making. The bill also
empowers boards of respective por ts to
determine the tariffs and rates-
- For services that will be performed at ports,
- The access to and usage of the port assets,
and
- Different classes of goods and vessels.
Currently, the Tariff Authority for Major Ports,
established under the 1963 Act, fixes the scale of
rates for assets and services available at ports.
• Exemption of Customs and Excise Duty levied on
bunker fuels used in Indian flag vessels for
transportation of EXIM, domestic and empty
containers between two or more ports in India.
Bunker fuel is the generic term given to any fuel
poured into a ship’s bunkers to power its engines.
Deep sea cargo ships typically burn the heavy,
residual oil left over after gasoline, diesel and
other light hydrocarbons are extracted from crude
oil during the refining process. The Ministry of
Shipping extended this exemption as a measure
to promote modal shift of cargo from roads to
coastal waters not only to decongest roads but
more importantly to harness the higher fuel
efficiency of coastal movements vis-à-vis roads,
as well as to reduce carbon footprint.
• Abatement of ser vice tax of 70% for
transportation of goods by Coastal shipping and
inland waterways transportation.
• On April 13, 2016, the Ministry of Finance notified
inclusion of stand-alone shipyards undertaking
activities such as shipbuilding and ship-repair in
the Harmonized List of Infrastructure sectors.
• Setting up port based SEZ’s with Mundra,
Krishnapatnam and Rewas and few others
underway.
• The introduction of National highways
development programme (NHDP) of the National
Highway Authority of India (NHAI) and various
projects launched by Rail Vikas Nigam Ltd (RVNL),
would now be responsible for the development of
road and rail infrastructure under the public-
private partnership model which would integrate
the land and water transport mediums. These
projects more specifically aim at connecting the
mainland and industrial towns with major and
private por ts. This would lead to better
connectivity of mainland and industries with major
ports in the region.
• The Government is also targeting to power all 12
major domestic government ports on renewable
energy. The government plans to install 200 MW
wind and solar power generation capacity by 2019
at the ports.
• Indian government is in the process of developing
mega ports on the Eastern and Western coasts at
locations like Vizhinjam (Kerala) and Enayam (TN)
which would be funded by private companies as
well as its own funds. These ports with deep
drafts (berth depth of over 20 meters) would cut
transshipment of goods to other foreign ports.
Table 4 : Capacity addition at 12 Major Ports
Name of Major Port Capacity Addition
2016-17
Kolkata and Haldia
Port Complex 9.11
Paradip 16.50
Visakhapatnam 3.00
Kamarajar (Ennore) 12.00
Chennai 0.00
V.O. Chidambaranar 6.64
Cochin 6.91
New Mangalore 9.86
Mormugao 1.25
Mumbai 16.00
JNPT 0.00
Kandla 19.20
Total 100.47 million tonnes
Other policies
The New Berthing Policy came into effect from
August, 2016. This policy provides standardized
framework for calculation norms specific to the
commodity handled and infrastructure available on
the berth. This will improve the efficiency at ports and
productivity norms across por ts. The New
Stevedoring Policy has been implemented since July,
2016. This will improve productivity, efficiency and
safety in the ports.28

Financial performance of major ports
During the past three years, technology
improvements such as new container terminal
projects at JNPT, Kamrajar Port in Tamil Nadu, new
cargo terminals, improving rail connectivity and
implementation of RFID system across ports has
helped improve the efficiency and handling capacity.
• Major ports continued to witness growth in
operating surplus backed by steady increase in
operating margins. India’s 12 major ports, owned
by the union government posted a combined net
surplus of Rs 2,820 crore in the year ended 31
March 2017 on income of Rs 11,894.5 crore from
handling 647.6 million tonnes (MT) of cargo.
• The operating margins of the major ports rose
from 28% in FY 14 to 35% in FY15, 39% in FY16
and 41% in FY 17.
• The net surplus of the 12 ports jumped from Rs
1,026 crore in FY 14 to Rs 1,805 in FY15, Rs
1,977 in FY16 and Rs 2,820 in Fy17.
• Kolkata earned Rs 1,924.11 crore, the highest
income among the 12 ports, on handling 50.31
MT of cargo, yet it ended the year with a net deficit
of Rs 210.01 crore, down from the net deficit of
Rs 243.44 crore last year.
• Mumbai Port Trust earns much more than Kandla;
still it is a loss-making port. Mumbai Port Trust
earned Rs 1,461.09 crore on handling 63.05 MT
of cargo, yet posted a net deficit of Rs 332.77
crore, down from the net deficit of Rs 473.57
crore last year.
• Losses incurred in case of Mumbai and Kolkata
ports are due to pension fund liability which is
funded by the surplus earned by these ports every
year. Higher dredging cost in case of Kolkata and
Cochin Ports have added to the costs of these
ports.
• Kandla Port Trust, India’s biggest state-owned
cargo handler by volumes, earned Rs 1,291.90
crore on handling 105.44 MT of cargo (the only
major port to reach 100 MT of cargo a year) and
posted a net surplus of Rs 651.02 crore.
• JNPT, India’s biggest container gateway, earned
Rs 1,677.90 crore on handling 62.02 MT of cargo
(including 4.5 million TEUs) and reported a net
surplus of Rs 1,303.89 crore
Source : Financial of Major Ports-Ministry of Shipping (Govt of India)
29

Challenges
India’s ports have been constrained due to many
developmental, procedural and policy related
challenges-
Multiple agency model- Dual institutional structure
has led to development of major and non-major ports
as separate, unconnected entities.
• Lack of requisite infrastructure for evacuation
from major and non-major ports leading to sub-
optimal transport modal mix;
• Limited hinterland linkages increases cost of
transportation and cargo movement;
• Under-developed centers of manufacturing and
urban and economic activities in the hinterland;
• Low penetration of coastal and inland shipping in
India
• Limited mechanization, procedural bottlenecks
and lack of scale, deep draft and other facilities at
various ports in India.
Volume: India is not an export-driven economy unlike
other Asian countries like China, Indonesia, and
South Korea. This has led to inadequate
development of port infrastructure compared with
other emerging economies in the region. Compared
to India’s cargo of 1070 million tonnes in 2017,
Shanghai Port in China handled over 750 million
tonnes in that year. Compared to 12 million TEU of
container traffic for India, China handled 120 million
TEU. India is aiming to minimize its import of fossil
fuels over the years to control import bills and has
already initiated policies regulating import of thermal
coal used for power plants. This could lead to
capacity idling at dedicated ports for handling bulk
mineral oil and coal. Restriction by certain states on
export of mineral ores could also hamper exports of
certain commodity on regional port facilities leading
to capacity remaining unused.
Cannibalization: Development of multiple ports in
close vicinity handling similar cargo would lead to
ports competing for the same cargo arrivals.
Competition though is a welcome move, but given the
criticality of the sector and the dire need to healthily
develop the port infrastructure eco-system, it is
important that specific ports in a region are
developed to handle specific variety of cargo like
minerals, oil, gas, container etc. This way, multiple
stakeholders get to service a dedicated cargo
category without eating into each other’s revenues.
Once the port system in the country reaches an
advanced stage, they could slowly add on to capacity
in other cargo segments.
Efficiency: Indian ports, especially the major ports
have a lot of scope for improvement in operational
efficiencies compared to international ports. Apart
from a few exceptions like JNPT, the quay/wharf
capacity of most ports is substantially below (less
than half) that of top global ports. Draft is also a
major limitation in India as terminals and ports are
unable to cater to vessels beyond Panamax (Draft
over 13 meters) size that are increasingly dominating
global trade.
Source: Indian Ports Association and Respective port websites
The turnaround time of a ship refers to the time the vessel reports
at the anchorage of a port to the time it sails out from the berth.
They broadly reflect the efficiency of the port.
Regulations: While India has a fairly extensive
regulatory framework for ports, its effectiveness is
questionable. The main problem is that major and
non-major ports fall under different jurisdictions with
continued uncertainty as to the ultimate scenario.30

• Land acquisition and environmental clearances
are specific challenges for non-major ports.
• Lack of connectivity of major ports with industries
by rail or roads has been a major challenge.
Transporting finished goods to ports and
impor ted raw materials reaching their
manufacturing units take long period of time
which leads to time and cost over-runs. NHAI has
given an impetus to port connectivity, but many
crucial projects suffer from implementation
delays. The railways network also needs to be
ramped up considerably with rake availability
being a problem even when connectivity exists on
paper. The privatization of container train
operations is widely seen to be less than optimal
and has not found many takers.
• Manpower and labor issues are a serious
challenge in some of the older ports. Surplus
manpower, lack of adequate training, falling
manpower quality, opposition to reform and
various anti-competitive practices are among the
key dimensions of this problem. 12 major ports in
the country employ around 45,000 employees as
per last repor ted data provided by the
government. In a sharp contrast, Port of
Rotterdam, which handles as much as 66% of the
cargo handled by all major ports in India and
handles more containers than all ports combined
in a year In India, employs 1100 people. Port of
Rotterdam is ranked among the top-10 ports in
the world and has highest level of automation with
least possible human intervention which ensures
smooth movement of goods, fast and efficient
offloading/on-loading of cargo and containers.
Outlook
India is striving to improve its manufacturing
competitiveness with the “Make in India” initiative.
Ports are the drivers of socio- economic change and
aid long term growth trajectory of the economy. The
Government is making effort towards developing
ports into manufacturing eco-systems which attract
trade as well as investments. Ports also aid in
creating employment and economic and industrial
growth of an entire region. The major ports are
per forming well financially, despite their
shortcomings and inadequacies. It also underlines
the significance to improve on these inadequacies at
the earliest so that the stakeholders, especially the
users are benefited by the improved efficiency in
terms of cost and time.
• The next leg of growth in cargo capacity handled is
expected to be led by the containers segment.
Major ports in India are already ramping up
container handling capacity even though global
container movement and freight movement have
been sluggish in the past two years. We expect the
same to recover globally over the next 2-3 years.
We also expect a pick-up in containerization of
wider variety of cargo in India, since handling and
transportation becomes faster and easier.
• With the Sagarmala Programme aiming to
increase depth of major ports so as to cut on
trans-shipping of Indian goods, Indian ports would
be able to handle new-generation mega vessels in
the next 2-3 years. We expect Cargo container
handling to reach 25 million TEU by 2020-21
across major and non-major ports from the
current 13 million TEU. Non-major ports are
expected to add higher capacity in the segment.
• India’s petroleum refining capacity currently
stands at 230 MMTPA and the government
intends to double the same in order to meet its
domestic demand as well as augment its exports.
Petroleum and its products account for almost 25-
30% of the import-export volume of India. The
increased refining capacity is expected to cater to
regional demand especially petroleum exports to
countries like Bhutan, Nepal, Myanmar,
Bangladesh and Sri Lanka. We expect the
petroleum, oil and lubricant (POL) segment to be
major growth segment for overall growth of cargo
capacity handled by ports.
Capacity Utilization (%) Variation
(2016) (2017) Y-o-Y
Eastern Coast 58.3% 56.3% -3.4%
Western Coast 68.1% 65.9% -3.3%
• Capacity utilization at 6 major ports on the
eastern coast was 56.2% in 2016-17, a 3.4%
decrease over previous year. For the western
coast, the capacity utilization was 65.9% in 2016-
17, a decrease of 3.3% over the previous year.
This indicates excess handling capacity at major
ports on the eastern coast. During 2016-17,
major ports implemented 100 MT of capacity
addition. We expect the capacity utilization to
remain stable during the current year. Fall in
import of commodities like coal would be
compensated by the increased export of iron-ore,
zinc and steel.
• Environmental clearances, Tariff norms, land
acquisition etc. need to be standardized and
implemented for the sector to witness interest
from foreign investors. Major ports have been
raising their funding requirements through dollar
denominated bonds which lowers their cost of
debt. Additional Rs. 50,000 crore of dollar
denominated loans are being planned for the
funding requirements of major ports and
Government entities like Shipping Corporation of
India and Dredging Corporation, which provides a
convenient and safer avenue for foreign investors
to invest into the ports sector in India. 31

APPENDIX
LNG Terminal New Capacity Addition (Tentative)
Proposed Facilities (Expected ) Pipavav LNG Terminal (APM Terminals)
Mundra LNG Terminal (GSPC/Adani) – (5MT
Ennore LNG Terminal Ltd (IOCL/TIDCO) (5MT by 2018)
Mangalore LNG Terminal Ltd (5MT);
Paradwip LNG Terminal (GAIL)-(4.8MT)
Kakinada LNG Terminal owned by GAIL, GDF SUEZ and Shell. (5MT)
Kakinada LNG Terminal owned by VGS Cavallo, (3.6 MT)
Kakinada LNG Terminal owned by GMR,(1.75MT)
Gangavaram (5MT)
Vizag LNG Terminal owned by Petronet(10MT)
Sources: Ministry of Shipping, Indian Ports Association, World Bank, Reserve Bank of India, UNCTAD and Special thanks to Port of
Rotterdam Authorities.
(Note : Article is based on report published by CARE Ratings Limited (Formerly known as Credit Analysis & Research Ltd)
32

Prof. Dr. Nanda Gopal K Reddy
Ch, Eng (Marine), F.I.Mar.E
(Massa Maritime Academy, Chennai
ABSTRACT
The recent digital maritime sector has advanced in
machine and ship design, but still pose major hurdles
in logistics at Indian ports. This is in addition to the
burgeoning Indian economy. The global shipping in-
spite of strict Port States/Flag States rules under
their jurisdiction has set tremendous loss to major
shipping companies. It is difficult to override a
reporting of auditing and observing violations by
seafarers’ and the shipping companies. These
projections can hamper the growth of the Indian
shipping sector. This paper elaborates the
importance of port and logistic development for ease
of business and trade in all maritime sectors in India.
The Indian government has to challenge the global
logistic by way of introducing fast and transparent
business regulations. This will influence the
international community as an invitation for large
ocean going ships to the Indian ports for trading. This
will not only enhance the ports and maritime sector,
but will propel the growth of the Indian economy as a
whole. The Indian government has to ease bottle
necks which are hampering the growth of shipping
and logistics, to replace with paperless digitalization.
INTRODUCTION
India’s seaborne trade is more than 75 per cent by
volume and there is ample opportunity for the major
and minor ports to grow, tapping the potential in
inland water transport to boost Indian maritime
industry. Globally, very large ships are much in
demand. Since these ships require deep draft ports,
India needs to develop facilities at both major and
minor ports, along its seaboards. The challenge lies
in increasing operations with zero stoppage to
enhance efficiency that would be at par with global
standards. State governments have already shown
interest in developing minor ports, and the private
sector has entered the fray, especially where
developing ports, terminals and warehouses are
concerned.
India’s international trade is about 95 percent by
volume and 70 percent by value is undertaken
PORTS, SHIPPING &
SHIP RECYCLING
AN IMPORTANT MILESTONE FOR INDIA
33

through the maritime route. There has been a
sustained rise in the volume of exports driven by
robust growth in the manufacturing sector and
improved export competitiveness. The Indian
government has fixed an ambitious target of 150
billion USD for exports by 2008-09 and to double
India’s share in world exports from nearly 0.8 per
cent to 1.5 per cent (Fig 1). The total volume of the
traffic handled by all Indian ports during 2006-07 was
650 MT, of which 463.78 MT, i.e., approximately 71
per cent was handled by major ports and the
remaining 186.12 MT by non major ports. A review of
Ministry of Shipping’s data on overall compounded
annual growth rate (CAGR) of traffic at major ports
between 1951 and 2007 shows 5.77 percent,
whereas during the post liberalization period, i.e.,
during 1992 to 2007, the CAGR has been 7 per cent.
In fact, in the last five years, the traffic growth at
major ports has exhibited a CAGR of 10.08 per cent.
Figure 1 : Review of ship recycling growth in India
Indian shipping industry strives to employ trained and
skilled manpower for port operations. However, for
this, it needs to meet stringent International Maritime
Organization (IMO) regulations. The Indian
government needs to especially drive support and
build a ‘green passport’ to train the newly skilled
personnel and help them meet global standards.The
shipbreaking and ship building industries, too, need
to frame stringent coastal regulations for a clean
environment. The same applies for the ship repair
industry and port operations. The Indian ship
recycling and ship breaking industry (Fig 2) has come
a long way since its inception in 1982. Starting with
recycling of just five ships in 1982, India’s ship
recycling yards recycled more than 500 ships in
2012.
The last three decades has seen enormous growth,
notwithstanding the cyclic nature of the shipping,
shipbuilding and ship recycling industry. India
entered into ship recycling when shipping was at its
peak during the oil boom of the 1980s. However, the
freight market soon began to fall, leading to a larger
supply of ships for recycling. This saw India end up
with a larger market share in ship recycling.
Meanwhile, ship building has slowed down in recent
years, with many yards languishing for want of orders.
With sea trade expected to expand at a fast pace,
India needs to seize this opportunity and improve all
facilities.
Technicalchallenges
Maritime shipping produces an estimated 2.7
percent of the world’s carbon-dioxide emissions, as
per the World Shipping Council report ‘Liner shipping
industry and carbon emissions policy’, published in
2009. It is expected to grow further and the trend can
be arrested only if the shipping industry drafts a
strategy that includes economically viable
technological and operational measures to lower
environmental pollution. This can also counter
uncertainties stemming from volatile fuel costs and
fuel availability. As low carbon shipping becomes high
on global agenda, a draft policy in keeping up with
international maritime regulations becomes an
imperative necessity. A draft policy will need to
incorporate advances in technical changes for
lowering emission; enhancing of
infrastructure in ports and its allied
logistics; putting in place regulation and
barriers; and engaging in low carbon
shipping. Many experts, researchers
and industrial bodies are already at work
on these issues. There have been
technical advancements in the matter of
ballast water, SO , NO , CO and energyX X 2
efficiency. The International Convention
for the Control and Management of
Ships’ Ballast Water and Sediments
(BWM Convention), despite being
adopted by consensus at a Diplomatic
Conference held at IMO Headquarters in
2004, have just been implemented.
However, the schedule for mandatory
treatment of ballast water has been
fixed, independently of when theFigure 2 : Gross tonnage by vessel flag 1948-200634

convention is ratified. Any delay in ratification will
simply create a larger backlog of technology orders.
Indian shipping has to meet these standards and
inspect arriving ships to maintain a healthy coastal
environment. Various data analyses from ships are
being used in simulation to identify the changes
needed in technology by 2020.
The major concerns pertain to reduction of CO and2
SO emissions, besides fuel efficiency. WithX
seawater scrubbing, an after treatment of exhaust
gas that uses sea water to wash SO out of the2
exhaust gases, becoming increasingly popular, it is
bound to impact emissions with tests showing SO2
emissions can be reduced to zero. With use of LNG
rising steadily, new shipping designs will save about
25 to 40 percent of fuel and reduce costs. For SOx
emissions, there are two deadlines by IMO. One in
2015, when the 0.1 per cent sulphur limit is
enforced, and possibly by 2025, when a global limit
of 0.5 per cent sulphur content in fuel will become
effective. As the new concept of energy efficiency
design index (EEDI) has been introduced for newly
built ships, and IMO has structured a special ship
energy efficiency management plan to measure and
control GHG emission from the already existing
shipping fleet. The introduction of EEDI into the
shipping industr y has forced the engine
manufacturers to design components that meet
regulations. SOx which is considered difficult to
control due to the high sulphur content in fossil fuels
can be substituted with LNG fueled marine engines
contributing towards improving the EEDI. This will fall
in line with the emission regulations of tier III.
India has over 110 companies in the shipping sector
with major domestic players including Shipping
Corporation of India Limited. However, India’s
shipping industr y has not grown at a pace
commensurate with its international trade. From
1990-91 to 2006, the Indian fleets’ total gross
tonnage grew at around 1.8 per cent per annum
compared to the average trade growth of about 14
percent. Consequently, India’s maritime trade is
dominated by foreign fleets and the ratio between
foreign and Indian fleets in Indian maritime trade is
70:30. Further, the average age of Indian ships is
16.5 years as against the world average of 12.2. The
Indian fleet is mostly deployed on international
operations, which account for 93 per cent of the total
capacity, while coastal shipping accounts for 5.7
percent and the rest is accounted for by offshore
shipping. The market share of Indian shipping
companies also declined due to a fall in assured
cargo on account of the liberalization of regulatory
environment and due to major customers such as
refineries, starting their captive shipping operations.
The Indian Government has undertaken several
policy initiatives to improve the Indian ports sector.
However, international trade procedures are
complex, causing significant inconvenience and
delays for traders. According to the World Bank, eight
documents are required for exports and it takes an
average of 18 days to clear all export related
procedures. This is significantly more than the
average requirement for Organization for Economic
Cooperation and Development (OECD) countries.
Trade procedures need to be simplified by improving
coordination between customs and port authorities.
Shiprecycling
The Indian shipping industry strives to employ trained
and skilled manpower for new building as well as in
port operations. The fact is that the growth of the
Indian shipping industry has to meet the stringent
IMO regulations. The Indian government has to
enhance support and build a “green passport” to
train the newly skilled engineers to meet the
environmental standards set globally. The ship
breaking and the shipbuilding industry has to frame
stringent coastal regulations to maintain the ethics of
the local community to support clean environment.
The same policies can apply for ship repair industry
and the port operations too. Seaborne trade and
volumes are rapidly expanding with very large ships
being delivered today. The traffic volumes were seen
high in the recent past. This increase is expected to
continue over a long period and together with the
recent trend “make in India” campaign. India will
continue to attract global capital inflows into
manufacturing and marine infrastructure sectors.
Many countries have already set foot, to take the
opportunity that could further the trade with nations
like U.S., EU and China making India’s economy grow
to a new high.
Maritimeindustry focus
The most important milestone for India is to develop
India’s economy by dredging all major ports to
increase the draft for large commercial ships,
development of infrastructure of small ports for
improving logistic, chain-management with roads
and rail connectivity to ports, ease of doing business
in India and transparency.
The marine and coastal environment is vulnerable to
the uncertainties of climate change. These changes
may cause significant damage to the coast and
inhabitants of nearby areas. In order to develop a
good response strategy and reduce uncertainties, it
is necessary to collect data systematically on various
marine environmental parameters so that future
conditions can be evaluated. The important
milestone is to set up scientific research and
observation of the marine environment; to exchange
and promote data and sensitive information from
scientific research and systematic observation. It is
important for policy-makers and the public at the
national level to cooperate with a view to develop
standards in calibration procedures, measuring
35

techniques, data storage and management
capabilities for scientific research and systematic
observation of the marine environment. The
environmental pollution caused by ships, the
greenhouse gases could be controlled with the
cooperation of local governments with the
International agencies. The R&D projects in
academic institutions and national laboratories
should be utilised in environment projects with highly
skilled training programmes in specified areas of
coastal environment to the local communities.
Conclusion
Although comprising an important part of the Indian
economy, major and minor port development are to
be focused on a fast track. These challenges are to
be on par with global infrastructure in shipping and
logistics. The ship-breaking and ship-building have
largely been outside the ambit of regulatory norms,
especially where greenhouse emissions of SOx, CO2
and other gases are concerned. But this is bound to
change, particularly by 2020. The Indian ship building
and ship recycling industries will have to invest in
improved technology with innovations, making ships
fuel efficient with low emitters of GHGs, if India is to
remain well ahead in the global race
References
1. Tony George Puthucherril, From Ship breaking to Sustainable
Ship Recycling, March 2010
2. Mikelis, N., A statistical overview of ship recycling. In:
Proceeding of the International Symposium on Maritime
Safety, Security and Environmental Protection, Athens,
Greece, September. pp. 1-9, 2007
3. White, I., Molloy, F. Ships and the marine environment. In:
Maritime Cyprus, 2001
4. Global forum on Transport and environment in a globalizing
world -2008, Mexico. “The impacts of globalization on
international Maritime Transport Activity”.
5. Nishatabbas Rehmatulla, Barriers to uptake of energy efficient
operational measures, 2012.
6. KPMG in India, Indian Maritime Landscape, Feb 2008.
36

National infrastructure&Port conference papers 2018,held on 08.06.2018.at Ahmedabad,India.

National infrastructure&Port conference papers 2018,held on 08.06.2018.at Ahmedabad,India.

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