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TRANSCRIPT
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“Our coastal area can be a channelfor global trade…”
– Hon’ble Prime Minister of India, Maiden Speech to Parliament
Importance of India’s Coastal Regions & Maritime Sector (1/4)
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Importance of India’s Coastal Regions & Maritime Sector (2/4)
“Maritime infrastructure and shipping will play a pivotalrole in India’s economic engagement with the rest of
the world. India is blessed with one of the longestcoastlines located in the most strategic global traderoutes. Harnessing it will generate rich economic
dividend to the country.”– Hon’ble Minister of Shipping, Road Transport and Highways
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Kandla
Mumbai
JNPT
Mormugao
N. Mangalore
Cochin
V.O. Chidambarnar
Chennai
Visakhapatnam
Paradip
Kolkata
Kamarajar
Krishnapatnam
Dhamra
Jaigad
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Andaman & NocobarIslands
Laksha- Dwwep
STRING OF PORTS IN INDIA
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Importance of India’s Coastal Regions & Maritime Sector (3/4)
Significance ofIndia’s CoastalRegions
~7,500km of coastline spanning 13
maritime States and Union Territories
SOURCE: MOSPI, Census of India, IBEF, Secondary Research
~20% of India’s population
lives in coastal areas
Contribution of Maritime States to Indian GDP:
~60% (as of 2012-13)
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Importance of India’s Coastal Regions & Maritime Sector (4/4)
Significance ofIndian MaritimeSector
SOURCE: MOSPI, Census of India, IBEF, Secondary Research
~95% of India's trade by volume
and 70% by value takes place throughmaritime transport
India has 12 major portsand about 200 non-major ports
Cargo traffic expected to grow from
976 MMT in 2012 to 1,758MMT by 2017
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Maritime Sector: India vs. China
SOURCE: McKinsey research, Press search
India China
Average annual growth in container traffic1
(Mn TEU)
Container traffic (Mn TEU)
Number of ports in Global top 20
Port capacity stock (% of GDP)
Number of shipyards2
Contribution of waterways in domestictransportation3
Average Turn-around time (Days)
0.5 10
11 185
0 9
1 3
7 70
<1% 24%
4.5 1
1 Over 2008-20122 That can make more than 120 m long ships3 Includes both Coastal Shipping and Inland Waterways
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Rationale for Sagarmala Project
SOURCE: Ministry of Shipping
Constraints to the Growth of Maritime Sector
No cohesive institutional arrangement− Involvement of multiple agencies in development of infrastructure
− Presence of a dual institutional structure leading to development of major and non-majorports as separate, unconnected entities
Weak infrastructure at ports and beyond− Limited mechanization, lack of scale, deep draft and other facilities at various ports in India
− Lack of requisite infrastructure for evacuation from major and non-major ports leading tosub-optimal transport modal mix
− Limited hinterland linkages increasing the cost of transportation and cargo movement
Limited economic benefit to the region and to the community− Limited development of centres for manufacturing and economic activities in hinterland
− Limited conscious skill development & leverage to peripheral trades (fisheries etc.)
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Objectives of Sagarmala Project
Port Led Development− Undertake development of Coastal Economic Zones with projects like- port based
industrialization, coastal tourism, Logistics parks, warehousing, fisheries etc.
SOURCE: Ministry of Shipping
Port Infrastructure Enhancement− Action points on transforming existing ports into world class ports by
developing deep drafts, mechanization of existing berths, creation of newcapacity & greenfield ports
Efficient Evacuation− Expansion of rail / road network / inland waterways connected to ports
& identification of congested routes
− Find optimized transport solution for bulk and container cargo
Focus Areas of Sagarmala Project
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Sagarmala Vision (1/2)
Change how India moves logistically− Increase competitiveness of core industries including manufacturing sector by
reducing supply chain cost and time
− Increase volume of trade via inland waterways and coastal shipping
− Create an IT en abled national multimodal logistics system
− Develop coastal roads through maritime states for inter-state port connectivity
Boost development through ports & shipping− Develop 3-4 new mega ports
− Develop a world-class transshipment port of more than 10 Mn TEU capacity
− Create additional capacity of 1200-1500 MMTPA by strengthening existing ports
− Develop maritime and manufacturing clusters around the ports
− Develop 2-3 port based smart cities & Coastal Economic Zones
SOURCE: Ministry of Shipping
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Sagarmala Vision (2/2)
Create world class institutions− Set up the Sagarmala Development Company to enable project implementation
− Set up world-class PPP programs in port, waterways and connectivity projects
− Develop Indian Maritime University as a center of excellence for maritime education
− Set up best in class maritime services clusters in India
Empower coastal communities− Create more than 1 million jobs in the maritime and related sectors
− Increase GDP contribution of maritime states and sector through comprehensivecoastal community development plan
SOURCE: Ministry of Shipping
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19th February 201514th January 201515th August, 2003
9th June, 2014
Sagarmala Project Background
“Sagarmala” concept and various issuesrelated to its implementationdeliberated upon by the Committee ofSecretaries (CoS). Ministry of Shippingsought ‘in principle’ approval of theconcept of Sagarmala project
McKinsey - AECOMconsortium selected asStrategy & ProgrammeManagement Consultantfor the Sagarmalainitiative
Decision to make Ministryof Shipping the nodalMinistry for Sagarmalainitiative based on theHon’ble President of Indiaaddress to the Parliament
The CoS deliberated on issues relating to the area ofresponsibilities of the Ministry of Shipping, other line Ministries/Departments and State Governments / State Maritime Boardsalong with the timelines for execution of various activitiesenvisaged under the “Sagarmala” initiatives
Note for the Cabinet on“Sagarmala: Concept andImplementation” submittedby Ministry of Shipping
“Sagarmala”initiative announcedby then PrimeMinister of India
27th November 2014 15th May 2015
SOURCE: Ministry of Shipping
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Sagarmala Institutional Framework
SOURCE: Ministry of Shipping
Central implementingMinistries
Central-level SPVs
Port SPVs
National Sagarmala Apex Committee
Sagarmala Coordinationand Steering Committee
State SagarmalaCommittee
Sagarmala DevelopmentCompany (SDC)
State level SPVs
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Sagarmala Development Company
Implementation of the projects in Sagarmala will be taken up byrelevant Ports, Line Ministries, State Governments and State MaritimeBoards in the form of SPVs through private sector or PPP route
Ministry of Shipping will set up the Sagarmala Development Company(SDC) to assist the project SPVs (State / Port / Line Ministry level SPVs)
SDC may provide funding window / equity support / access to relevanttechnical consultants for the projects undertaken, as may be requiredand necessary
SDC will implement only those residual projects that cannot be fundedby any other means or mode
SOURCE: Ministry of Shipping
Sagarmala Development Company (SDC)
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Potential Benefits for Maritime States from Sagarmala (1/3)
Implementation of skill development/livelihood generation projects forcoastal community development, e.g.
− Coastal Tourism Development projects (Lighthouses & Mainland Islands)
− Fisheries sector development
Development of port-based smart cities and otherurban infrastructure to improve standards of living
Integrating the coastal economy with the ports through development of CoastalEconomic Regions & projects with synergies to Coastal Industrial Corridors
Development of Coastal Economy
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Potential Benefits for Maritime States from Sagarmala (2/3)
Modernization/capacity expansion of existing ports and creationof greenfield ports to reduce bottlenecks for future growth
Development of maritime sector leading to new economic activityin the region - E.g. Ship Building and Repair Cluster
Maritime Sector & Infrastructure Development
Development of port evacuation (road/ rail/inland waterways)and logistics infrastructure to reduce overall logistics cost andto increase cargo movement to-and-from the hinterland
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Potential Benefits for Maritime States from Sagarmala (3/3)
Integrated approach to project identification andimplementation through coordination between LineMinistries, State / UT Governments and Private Agencies
Easing the Project Development Process
Easing of policy and institutional bottlenecks for
− Obtaining project approvals
− Accessing project funding and implementation partners
− Project implementation and monitoring
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Sagarmala Project Archetypes (1/3)
Project Theme
Port-ledindustrialization
Port basedurbanization
Ship building, shiprepair and recycling
Coastal communitydevelopment
Infrastructure development and maintenance projects in theindustrial area/estate near the ports
− E.g., Port-industry connectivity, setting up industrial estatesin port land
Green-field and Brown-field urbanization projects to promotestandards of living
− E.g., Developing port smart cities, water supply for urbanareas near the port
Infrastructure projects for ship building/breaking yards andmaritime clusters
− E.g., Water gates, setting up maritime clusters
Infrastructure and non-infrastructure projects related to coastalcommunity development
− E.g., Skill development and livelihood generation, health andsanitation projects
Port-ledDevelopment
Projects
Project Description and Examples*Project Archetype*
*Not Exhaustive
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Project Archetype*
Sagarmala Project Archetypes (2/3)
Project Theme
Short-sea coastalshipping and inlandwaterwaystransportation
Logistics parks,warehousing, maritimezones/services
Integration withhinterland hubs
Infrastructure development and maintenance projects forpromoting coastal shipping/inland waterways
− E.g., Jetties for coastal shipping, maintenance dredging forinland waterways
Projects to improve the logistics infrastructure between the portsand hinterland hubs
− E.g., Logistics Parks and warehouses projects within the portarea or outside
Projects to integrate the ports to the hinterland industrial hubs
− E.g., Multimodal hubs along with road/rail/inland waterways,Inland Container Depot/Container Freight Station
Connectivity
Projects
Project Description and Examples*
*Not Exhaustive
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Sagarmala Project Archetypes (3/3)
Project Theme Project Archetype*
Modernizing existingports and developmentof new ports
Specialization of portsin certain economicactivities such as energycontainers, chemicals,coal, agro products
Offshore renewableenergy projects withbase ports forinstallation
Offshore storage anddrilling platforms
Project Description and Examples*
Projects to enhance the existing port infrastructure and settingup of greenfield ports
− E.g., Strengthening of roads within port area, improvingmechanization of cranes, gantries, etc.
Infrastructure projects in ports to support specific industrydevelopments
− E.g., Effluent treatment plan for chemicals industry, RFIDprojects for containers
Renewable energy projects for the sustainable development ofthe ports and the associated coastal regions
− E.g., Solar and wind energy generation projects
Projects related to port ancillary services
− E.g., infrastructure for POL storage, Facilities for offshorebunkering
Port
Augmentation
Projects
*Not Exhaustive
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Progress Update: Coordination & Communication
Indian Port Rail Corporation has been incorporated on 10thJuly, 2015
Active engagement with the Maritime States for getting theirviews and suggestions
Engagement with Ministries dealing with infrastructuredevelopment including DIPP to align and synergize with theexisting infrastructure projects (e.g. industrial corridors,industrial parks etc.)
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Progress Update: NPP Preparation
National Perspective Plan [NPP] to be finalized by January 2016
OD Study for traffic forecast and potential for coastal shipping andinland waterways for key commodities (E.g. coal, POL, containers etc.)undertaken
Report on potential for setting up transshipment port developed
Benchmarking study undertaken to improve productivity, profitability,operational efficiency, and future prospects of Major Ports
Smart port city at Kandla and Paradeep
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Progress Update: Island Development & Skill Development
Development of Islands
− Interim report, on possible commercial & developmental activitiesin the islands, submitted to the Task Force on Holistic Developmentof Islands
− Action plan for development of 15-20 island lighthouses
−Ministry of Shipping in consultation with Ministry of Agriculture isevaluating potential for oil palm cultivation in islands off east coast
Skill Development in coastal area
− In association with Ministry of Skill Development and Ministry ofRural Development is being finalized