UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN

Coastal shipping
Multi Modal Transportation
Submitted to:
Dr. Loveraj Takru
Professor - CoMES
Submitted by:
Vighnesh Panchal
Kushagra Balya
Shubham Agrawal
Anupam Biswas
Sarah Chaudhary

MBA (LSCM) Sem III

Batch 2014-16

Introduction
India has a coastline of 7517 km with 13 Major Ports and about 200 minor ports along the
coastline and Island. Major Ports are the ports which are administered by the Union Government,
while Non-major Ports are administered by the State Governments. Major Ports in the country
are Kolkata (including Haldia Dock Complex), Paradip, Visakhapatnam, Ennore, Chennai,
Tuticorin on the East Coast and Cochin, New Mangalore, Mormugao, Nhava Sheva (Jawaharlal
Nehru Port), Mumbai and Kandla on the West Coast. Port Blair was declared as Indias 13th
Major Port with effect from June 1, 2010.The major ports carry bulk of the total traffic. Out of
the 200 Non major ports, only some ports are well developed and provide all weather berthing
facilities for cargo handling. In 2013-14, only 61 Non major ports were reported to have handled
cargo traffic. Traditionally, most ports in the world are owned by the Public Sectors. In the recent
years privatization of ports facilities and services are gaining momentum. Traditionally, most
ports in the world are owned by the Public Sectors. In the recent years privatization of ports
facilities and services are gaining momentum.
Project name sagar mala initiative by the government to spend 7000 crore for the development
of coastal shipping
By focusing on three pillars of coastline development as its deliverables namely, port
modernization, efficient evacuation and coastal economic development supported by enabling
policy and institutional linkages and finally, providing a structured approach and framework for
ensuring inter-agency collaboration and integrated development. It will provide the necessary
institutional framework that will enable central and state authorities to work together and ensure
inclusive growth of the coastal regions. It will also empower port administration to be
responsible for ensuring development at ports and its related infrastructure.
Challenges faced by the maritime sector today that are hampering its growth and providing
certain key interventions that must be undertaken to address them.
Costs of Transport Model And Co2 Consumption

The Coastal Economic Regions (CER)

The Coastal Economic Regions (CERs is being introduced as a concept that will be the focal
point for economic development along countrys coastline. A CER will be identified as a large
region along the length of the states coast (300-500 km) and 10- 30 km inland and into the sea in
order to take a broader regional view of economic activity that goes beyond the port(s). The CER
will hold an integrated and comprehensive plan of the area, combining the growth potential of
the various industrial clusters and economic activities with the up-gradation and development of
both Major and Minor ports simultaneously. By linking the Major and Minor ports, various
industrial and rural clusters and evacuation infrastructure into a single system at a larger regional
level, a CER will enable seamless and efficient movement of cargo through the gateways,
thereby allowing ports to enhance competitiveness and offer multiple freight options to endusers. The ports, thus, will actively participate in driving the economic development of a
wider region which is similar to the role large global ports are playing in their respective
countries.
The second major initiative would be the promotion of Coastal Shipping that can be enhanced
through a mix of infrastructure and policy initiatives related to conducive policy & regulations,
port infrastructure and national mega waterways development projects. Some of the key
interventions is provision of a green channel for coastal cargoes, incentivizing use of coastal
shipping and simplification of procedures.
On implementation will deliver multiple benefits such as
Development of 3-4 modern world scale Mega ports of 200 MT capacity
better integrated connectivity in an CER and hinterland
fully integrated coastline through dedicated Mega waterways (National navigation channels)
Shift of modal mix to an optimal modal mix (increase of coastal /inland waterways)
Seamless dedicated backward linkages with key Transport / Infra projects e.g. DMIC, AKIC,
CBIC, DFC, PCPIR etc.
4-6 Coastal Tourist circuits to position India as a prominent tourist destination
15 X growth in Coastal / IWT traffic increase over next 20 years
Capacity augmentation to handle 5X ports traffic increase over next 20 years
Coastal Economic Regions (CERs) leading to increased GDP/ EXIM
Significant employment creation in ports, shipping and ancillary areas/ecosystem
Structured urbanization of coast/rivers and development of riverine/ coastal communities
Revenue generation though increased economic activity due to all round development of the
coastal cities and tourism
Key components of the coastal development:
Focus on modernization of port infrastructure, transforming the existing Ports to world class
Ports and development of new ports

 Improve hinterland linkages through efficient rail, road and water (coastal and inland
waterways) networks for efficient evacuations
Engender port led development by promoting Port based SEZS / FTWZs, ancillary industries
such as Ship Breaking, Ship Building / Ship Repair, Bunkering facilities, Container Freight
Stations, Warehousing, Tourism and Waterborne Transport
Current Scenario:
Today, ports carry about 90% of Indias total trade by volume. The current proportion of
Merchandize Trade in GDP of India is only 42% whereas for some of the developed countries in
the world such as Germany and European Union it is 75% and 70% respectively (figure 1).
Therefore, India still has a potential to increase its merchandize trade. Moreover, with the current
emphasis on Make in India the proportion of merchandise trade in Indias GDP is expected to
increase and rapidly reach proportions seen in developed countries.

Figure 1: Merchandize Trade as a percentage of GDP

Source: World Bank data, 2012
A study of Chinas export profile and trends in coastal development reveals that China has seaborne traffic of 9 billion tones with a coastline of 15,000 km and port based SEZ s / FTW s
dominate EXIM trade (figure 2).
On the other hand, India has a total sea-borne traffic of only 950 million tonnes with a total
coastline of 7,500 km. Therefore, with a vastly underdeveloped coastline and sub-optimal

traffic / coastline ratio, India has a significant potential of developing its maritime capabilities.

Figure 2: China's Exports by Location of Exporters year

Source: National Bureau of Statistics of China, KPMG analysis
It is a known fact that water-borne transport is much safer, cheaper and cleaner compared to
other modes of transportation. Based on global comparison, the percentage domestic cargo
transported by coastal shipping in India is only 7% which is far lower than comparable countries
with long coastlines (figure 3).

Figure 3: Share of total coastal shipping in total port traffic

Source: Economic databases, Research reports, KPMG analysis

Further, the optimal modal share for traffic evacuation at major ports through coastal / inland
waterways in India is 2% whereas it should be 10% (figure 4).

Therefore, India has a potential for expanding its capability for coastal shipping. There is also a
need to improve hinterland linkages of ports and transport infrastructure for achieving optimal
modal mix for cargo evacuation at ports.
Share of Cargo Mix:
The commodities that coastal shipping currently handles largely includes bulk and break bulk
cargo. Transporting general cargo, which falls under the others category, takes a long time
through coastal shipping as compared to other modes. Moreover, limited awareness of return
cargo and movement through containers and coastal shipping has contributed to low penetration
levels. However, there has been a marginal increase in this category in the last five years due to
growth in containerized cargo especially cargo such as marble, tiles, bentonite and soda ash
and an increase in the movement of project cargo through coastal shipping

Coastal shipping is most suitable for bulk-solid and container cargo. However, their current
movement through the coastal route is low. The following table illustrates the ideal mode of
transportation for different types of cargo.

Challenges Faced By the Maritime Sector in India:

The growth of Indias maritime sector has been mired by many developmental, procedural and
policy related challenges. Some of them have been enlisted below:

 Involvement of multiple agencies in development of infrastructure to promote industrialization,

trade, tourism and transportation across country.
Presence of a dual institutional structure that has led to development of major and minor ports
as individual projects.
Lack of infrastructure for evacuation at major and minor ports leading to sub-optimal transport
modal mix.
Limited hinterland linkages that in turn increases the cost of transportation and cargo
movement.
Limited development of coastal centers for manufacturing, urban and economic activities.
Low penetration of coastal and inland shipping in India due to limited facilities, higher costs
and policy constraints.
Presence of selective mechanization and procedural bottlenecks at ports.
Lack of scale, deep draft and other facilities at various ports in India.
In order to promote Indias Maritime sector, there is a need for certain initiatives that would
enable inclusive growth of coastal areas by stimulating economic activity, promoting
modernization of ports & port-related infrastructure and ensuring development of efficient
hinterland linkages.
Some of such initiatives have been enlisted below:
An Integrated Development Approach that focuses on the following:
Undertake a comprehensive study to assess the port capacity requirements to promote
trade and encourage economic activity
Mechanization and modernization of existing port infrastructure and systems to improve
efficiencies
Plan capacity augmentation projects in existing ports and develop new ports where
required
Design and implement efficient multi-modal evacuation
Development of industrial clusters / SEZs in the vicinity of the port and its hinterland that
will power the economic activity in the region
Promote Tourism in coastal cities
Streamline inter-departmental co-ordination in ports to promote seamless and efficient
interface for the trade.
Promote synergistic planning and development across major and minor ports
Build world class ports with all-encompassing infrastructure, modern and mechanized facilities
and deep drafts
Promote inland/coastal shipping by building dedicated channels, vessels and facilities
Simplify policies and promote usage of online channels for information exchanges leading to
seamless and hassle free cargo movement

 Provide enabling policies, institutional framework and appropriate funding mechanism for
promoting collaborative development
Coastal Trade:
Out of the 1199 vessels as on 31st December, 2013, 835 vessels (69.6 %) were engaged in
coastal trade with a GRT of 1.14 million tonnes (1135 Thousand tonnes). The modal age of
Coastal vessels (356) was above 20 years representing a tonnage of 665 thousand tonnes. There
are 149 companies with single Ship deployed on coastal routes representing a total GRT of about
0.28 million tonnes.

Cargo traffic:
Major & Non Major Ports: Indias major ports handled 57 % of the cargo handled at Indian
Ports during 2013-14 though the share has declined from about three fourth over a decade ago.
The traffic handled by the major ports has recorded nearly threefold increase from 195.9 million
tonnes in 1994-95 to 555.5 in 2013-14. Cargo handling capacity at major ports has also risen
with traffic, from 174 million tonnes atend of 1994-95 to 800.52 million tonnes at the end of
2013-14 .

Port Modernization
Port Modernization refers to up-gradation of port and port-related infrastructure that would
increase operational efficiency of ports and facilitate trade, industrial activity and tourism in
hinterland. This could be enabled by:
Automating and increasing use of Information Technology
enhancing the capability of the Port Community System (PCS) to cover a larger group of user
communities
undertaking a Business Process Re-Engineering exercise in all Major Ports to simplify, modify
and eliminate redundant processes and procedures
Cost-effective and efficient mechanization of ports ensuring inter-modal cargo handling at ports
and direct port to plant transfers through conveyors and pipelines

 Setting-up of Hub Ports that would facilitate creation of a cooperation mechanism linking
ports, industrial clusters and cities with highly efficient rail/road and coastal networks that
facilitates efficient and secure distribution of cargo.
World class ports and Hub Ports will facilitate better, smoother and efficient port operations by:
o Making ports capable of handling all types of cargoes
o Providing logistics & value added services
o Providing deep draft berths
o Development of Transhipment centers
o Providing a regional shipping freight system for hub and sub-ports supported by coastal/ feeder
operations
o Providing allied services such as Ship building & repair and bunkering etc.
o Development of Cruise and Yacht marinas
o Facilitating paperless & seamless transactions
o Encouraging Education, Research & Development activities
2.4.2 Efficient Evacuation System
Building efficient port evacuation system and hinterland linkages would ensure seamless and
hassle free cargo movement through:
2.4.2.1 Efficient Rail, Road and Coastal/IWT Networks
High-speed rail, road, coastal and inland waterway networks would integrate Industrial
Corridors, economic centers, port-based SEZs and inland cities by:
Providing dedicated roads/ lanes for domestic cargo movement
facilitating hinterland linkages to avoid unnecessary transaction costs
The above will ensure an optimal modal mix for transporting cargo in and out of ports. In order
to ensure a faster development of such networks and linkages it would be beneficial to integrate
such projects with existing Rail/Road/IWT/Airport development projects such as DFC, NHDP
etc.
2.4.2.2 Promotion of Coastal Shipping and Inland Water Transport (IWT)
Coastal Shipping and IWT facilities could be enhanced through a mix of infrastructure and
policy initiatives. Some of such initiatives have been enlisted below:
Provide Green channel for coastal cargo and easier ingress/ egress from ports
Simplify procedures on manning norms, fuel taxes and compliances for coastal/ inland vessels
Incentivize commodities to use coastal mode
Promote research and manufacturing of equipment and vessels for coastal/ inland use
Provide provisions for setting up a Coastal shipping promotion fund for development of coastal
shipping

 Provide provisions for a proportionate reduction in CSR obligation for every unit of lowered
carbon emission through coastal shipping and IWT
Allocate PSU cargo for coastal shipping and IWT usage
Modernize port infrastructure for development of coastal and inland water transport by:
o Building segregated facilities for coastal / inland vessels
o Integrated connectivity of IWT / coastal facilities with rail/ road network
2.4.3 Coastal Economic Development
Coastal Economic development signifies development of port hinterland through an increase in
economic activity at a port and vice versa. This happens as a result of modernization of port and
port-related infrastructure, which promotes more cargo movement and trade due to efficient
logistics and lower transaction costs. This in turns facilitates growth of the port and the vicinity
into a major economic hub and trade center with multiplication of ancillary and support services.
The development of port hinterland would include:
Establishing industrial clusters or SEZs or FTWZs and captive industries in port hinterland and
coastal cities
Development of ancillary industries in port hinterland
Increase in Coastal Tourism
Collaborative growth and development of major and minor ports in the region
2.4.3.1 Industrial Clusters / Port-based SEZs / FTWZs and Ancillary Industries
Systematic development of Port based industrial parks, promotion of captive industries and
ancillary facilities would drive economic activity in port hinterland. The key industries in such
industrial areas
would include Ship Repair, Ship Building clusters, Ship Breaking industries, Bunkering
facilities, Container Freight Stations, Dry Ports and Warehousing facilities, industries requiring
significant import of raw material and industries will large export potential. This economic
activity would be supported by modernization of ports and efficient hinterland linkages and will
ultimately result in increase in cargo movement at ports.
Broad initiatives
In summary, the 3 key deliverables
would be Port Modernization, Efficient Evacuation Systems and Coastal Economic
Development. In order to achieve these, the 2 broad initiatives that will drive Sagar Mala are:
1. Development of Coastal Economic Regions (CER)
2. Policy initiatives to promote coastal shipping and seamless operations in Ports
2.5.1 Coastal Economic Regions (CER)
Under the Sagar Mala initiative, Coastal Economic Region (CER) will be created. A CER is a
contiguous region comprising Major and Non Major Ports and their hinterland.

Figure 6: CER as a program initiative integrating the marine and coastline development
interventions
The development of a Coastal Economic Region has three components i.e., Modernization of
Ports and New Ports, Hinterland Connectivity and Port Led Development. A Regional plan
would be prepared that will study the business potential of the identified MER, infrastructure
gaps inhibiting growth and barriers to trade. The objective of the plan would be to integrate the
growth potential of the industrial clusters, smart cities and economic centers in the MER with the
capacity and modernization requirements at the ports and align the freight system
(road/rail/IWT/Coastal) evacuation linkages with these. It will also identify institutional/
capacity bottlenecks that impede seamless EXIM/domestic trade.
The CER is thus, the integrating mechanism to implement the various interventions for
promoting the maritime sector by planning, coordinating, financing and executing the projects
across various state and central agencies on a larger regional basis. The CER plan will cover
Modernization of existing ports (both Major and Non-major) and establishment of new ports,
efficient hinterland linkages and evacuation system and port led development of new/ existing
industrial and maritime clusters.
2.5.1.1 Modernization of Ports and New Ports
Identifying the best locations for developing new Ports from techno-economic feasibility point
of view. Based on the requirements of the Trade, development of new ports would be taken up
either as Major Ports or Non Major Ports. The first pillar of would include modernization of
existing Ports to world class Ports. This would involve mechanization, creation of new capacity,
passenger, cruise facilities, tourism and recreation related projects and also seamless systems

cutting across different agencies in the Ports such as Customs, Port Authorities, Health and
Security Agencies. Developing deep drafts wherever necessary to handle future generation ships
is also an integral part of this component.
The Operational efficiency of ports would be enhanced by undertaking business process reengineering to simplify processes and procedures.
Modernization would also involve environment-friendly initiatives such as use of Solar/ green
power, deploying shore power for ships at berth to reduce emissions, appropriate discharge of
ship waste and sludge etc. Thus, transforming ports into green ports which can co-exist in
harmony with coastal communities and eco-systems would be an important agenda for continued
alignment with international norms and recognition of India as a major international maritime
nation. The creation of modern fishery harbors would be another step in this direction for the
sustainable growth of coastal communities while providing distinct business impetus to the
fishing industry.
2.5.1.2 Efficient Hinterland Connectivity
Providing adequate road and rail connectivity and also connecting through water transport would
be the second focus area. Development of Inland Waterways, connecting Ports to the hinterland
and also to coastal shipping would be integral part of this pillar.
The Sagar Mala Project would also focus on policy initiatives at national level to promote coastal
shipping through simplification of procedures and better inter-agency co-ordination for seamless
operations in ports. These initiatives would benefit all CERs and ports in general.

Figure 7: Concept and Indicative view of CERs in India

Coastal Shipping and IWT can be enhanced through a mix of infrastructure and policy initiatives
related to conducive policy & regulations, port infrastructure and national mega waterways
development projects.
Some of the policy initiatives have been enlisted below:
Provide Green channel and easier ingress/ egress from ports
Simplify procedures on manning norms, fuel taxes and compliances for coastal/ inland vessels
Promote research and manufacturing of equipment and vessels for coastal/ inland use
Provide provisions for setting up a Coastal shipping promotion fund for development of coastal
shipping
Future prospect:

EFFECT OF CABOTAGE POLICY ON COASTAL SHIPPING

Coastal Shipping Present Status
Economic reforms in India have triggered a high rate of economic growth in the country and this
in turn has led to an increase in transport demand. This demand is being met mainly by the rail
and road transport systems. About 50-55% of the freight traffic is carried by road, 30-35% is by
rail and only about 7% by coastal shipping.
The commodity wise split of costal cargo for 2005-06 and 2009-10 are as under. Though the
POL products has the highest share, it is to be noted that the share of liquid /dry bulk cargo has

reduced from 94% (2005-06) to 87 % in 2009-10. There has been an increase of 7% in the share
of Others (food grains, automotive spares, automobiles, steel, cotton yarn, other containerized
cargo etc.) due to increase in containerized cargo movement
Relaxation of Cabot age Policy by Other Maritime Countries A Glance
Malaysian Government has relaxed their cabotage law in 2009 in respect of transport
of containerized transhipment cargo to promote Port of Tanjung Pelepas and particularly to help
Malaysian Shippers.
Their policy succeeded and within a span of 10 years PTP handled 6.53 million TEUs in
2010and got itself placed at 17 the position among the top 30 container ports of the world.
Interestingly, 95% of the total containerized cargo handled is transhipment cargo.

Policy Change, a Prerequisite for Coastal Shipping Growth.

When the gates of Indian economy were opened to the international competition as a part
of globalization in 90s, there was huge cries to protect Indian industry from global competition.
Contrary to the earlier belief, we have seen Indian industries such as automobiles,
telecommunication, and aviation, I.T., banking etc. emerging successfully with new vigor
and made sparkling performances compared to their foreign counter parts. Economic logic
suggests that wherever monopoly and restrictive practices prevail, growth get regarded and full
potential of that sector of the economy remains untapped. Huge waves of changes have been
taking place in shipping industry, particularly in the container shipping trade, globally and in
India too. Since Indian Merchant Shipping Act 1958 was enacted 53 years ago there is a
compelling need to amend the clauses relating to cargo reservation to Indian ships with a view to
procuring Indias foreign trade. Indian shipping lines cannot afford to remain always under the
comfort of cargo reservation by virtue of statutory protection. The coastal trade, especially the
container shipping sector, should be thrown open to international companies for the benefit of the
Exim trade as competition is expected to bring in service reliability, quality, speed of delivery
and costreduction.The Government is empowered to grant relaxation regarding Licensing of
ships for coasting trade in terms of Section 407, sub section (3) of the Merchant Shipping Act,
1958. The relevant provision is quoted below.
The Central Government may, by general or special order, direct that the provisions of subsection (1) shall not apply in respect of any part of the coasting trade of India or shall apply
subject to such conditions and restrictions as may be specified in the order.
When the coastal container trade is open to international competition, it would create an enabling
environment for faster growth of transhipment traffic. The present annual volume handled at
Colombo port is around 3.80 million TEUs, of which roughly 75% (2.85 millionTEUs) is
transshipment. Of this, about 70% (1.99 million TEUs) per annum is transshipment from Indian
Ports, and out of which, 60 % (1.19 million TEUs) is to and from South Indian Ports; which
could be the potential business for ICTT Vallarpadam.

Report on modernization of Major ports PRESENTED TO THE RAJYA SABHA ON

11.08.2011)
With the relaxation of cabotage law, more number of feeder vessels would be calling at Indian
ports with greater frequency and efficiency which in turn will be beneficial to Indian shippers
And consignees. In a market environment with enhanced shipping services, reduced cost and
frequent sailing opportunities there will be greater chance for transport mode change
of containers from road / railways to coastal shipping. Indian container shipping lines should
compete with the foreign shipping lines on service quality, pricing and operational performance
and there would be enough room for both to provide a truly competitive , efficient and cost
effective shipping service to support Indias economic development.

Consolidated cargo forecast in M Tons

Metric ton or tonne a unit of weight equal to 1000 kilograms

As

can be seen from this figure the most Eastern and Western ports show the highest throughputs
thanks to their vicinity to the large hinterland in the North.
The Southern ports have a smaller hinterland but they are located close to the main international
shipping routes, which could be an opportunity for the future.

A. EXPORTS (including re-exports)

Exports during June, 2011 were valued at US $ 29213.14 million (Rs. 131031.43 crore) which
was 46.45 per cent higher in Dollar terms (41.06 per cent higher in Rupee terms) than the level
of US $ 19948.18 million (Rs. 92892.68 crore) during June, 2010.
Cumulative value of exports for the period April-June 2011 -12 was US $ 79003.74 million (Rs
353338.87 crore) as against US $ 54221.16 million (`247574.57 crore) registering a growth of
45.71 per cent in Dollar terms and 42.72 per cent in Rupee terms over the same period last year.

B. IMPORTS
Imports during June, 2011 were valued at US $ 36872.49 million (Rs.165386.41 crore)
representing a growth of 42.46 per cent in Dollar terms (37.22 per cent in Rupee terms) over the
level of imports valued at US $ 25883.03 million ( Rs. 120529.51 crore) in June, 2010.
Cumulative value of imports for the period April-June, 2011-12 was US $ 110613.80 million
(Rs. 494763.07 crore) as against US$ 81202.60 million (Rs. 370182.12 crore) registering a
growth of 36.22 per cent in Dollar terms and 33.65 per cent in Rupee terms over the same period
last year.
Cargo Forecast

The main commodities handled via the Indian Major Ports are the following:

Dry bulk: Iron ore and coal;

Liquid bulk: Crude oil and oil products (POL);
Containers.

Apart from these main products a large range of raw materials, semi-finished products and
general cargoes appeared in the individual forecasts.

The forecasts for the individual ports as prepared by Consultants have been consolidated as an
overall forecast for India per main commodity. This consolidated forecast per main commodity
for all Indian Major Ports is indicated in
Table 5.1 for three reference years. The figures have been given in M tons per year. From the
table it can be seen that in particular the growth expectation of container throughput is high
beyond 2011-12. This particular trend is visualized in
Figure

Consolidated growth per commodity (combined Major Ports)

POL
India is an important energy consuming country. Oil and gas with a total share of
40% appear to be primary energy sources. POL import amount to some 25% of the total import
of India and POL export some 8% of the total export.

Iron Ore
Global trade in iron ore has increased with some 505 M tons in the period from
2001 to 2005. Iron ore import by China has grown by 31% per year in this period in order to feed
Chinas steel industry. Australia and Brazil are prime sources of iron ore. India is another main
producer of iron ore catering for the Indian domestic (steel producing) market and for export.
The main mining areas are located largely in Eastern and Central India (Jharkand, Orissa and
Chhatisgarh) and in Karnataka in South India. Goa and Andhra Pradesh are other iron ore
producing areas.

Coal
Coal production is nationalized at present and private investment in coal mining is only allowed
for captive mines supplying coal to designated sectors as power, steel and cement.
Next to crude oil, thermal coal mainly from Orissa is another key energy resource for the power
sector. Indias coking coal usually lacks the quality needed for steel production. Poor quality
domestic coking coal therefore is blended with imported coal.

Containers
The economic modernization in India has resulted in strong growth in the value of
Indias exports. Indias export mix is changing with higher value goods (e.g. high tech,
pharmaceuticals, engineering and automotive components) growing at a faster pace than resource
based and agricultural products. The growth and changing mix of cargoes will logically result in
further unitization of the countrys general cargo trades.

Fertilisers
With respect to agriculture, the Government of India policy is focussed on agricultural growth.
India is the third largest producer and consumer of fertilisers in the world. Some 60 large size
plants in the country manufacture a range of fertilisers. The most widely used fertilisers include
nitrogenous (N), phosphoric (P) and potosi (K). Potosi fertiliser is not manufactured in India and
is imported. The industry relies heavily on imports for its requirement of raw material. Monsoon
holds the key to the future prospects of the fertiliser industry. A good monsoon will spurt food
grains production and consequently the demand for fertilisers.

Other cargo
Apart from the main commodities many other commodities are being handled and will be
handled in the Major Ports. The following table and figure are related to this variety of
commodities.

Commodity wise traffic handled at non- major ports

Major Port Locations

200 ports
-54 ports in east coast-146 ports in west coast
-Indias seaborne trade 95% by volume & 77% by value of international trade
-Indian Ports Act, 1908 allows Maritime States to set up their own port systems
-Major Port trust Act, 1963, regulates 12 major ports
Growth Dynamics: Indias Port Sector
Overall average annual growth (major & non-major) 9.2% (2000-2012)
Major ports (7.3%) & Non major ports (13.7%)
Total Traffic, 2000-01: 383.85 Million tons
Total Traffic, 2012-13: 933.66 Million tons
Capacity utilization around 90-98% at Major ports
Highest annual growth in container traffic (15%)
Current Statistics

Growth: 143%

Cargo traffic at major ports in India

Stoodat581.3MMTinFY15
Increase data CAGR of 2.9 percent during FY0715
Cargo traffic in 2017 at major ports is expected to reach 943.1 MMT

Non-major ports are evolving faster than major portsNon-major ports are gaining shares and a major chunk of traffic has shifted from major ports to
non-major ports
The contribution of non-major ports
percentinFY15from28.6percentinFY07

traffic

to

total

traffic

rose

to

44.8

Cargo traffic at non-major ports

Stood at 471.2 MMT in FY15
Cargo traffic has expanded at a CAGR of1 2.3 percent during FY 07 15 and is expected to grow
annually at 15.9 percent during FY 07-17
Cargo traffic in 2017 at non-major ports is expected to reach 815.2 MMT

Indian Port Analysis

August 2015

Comparison of coastal shipping penetration in the movement of domestic cargo (2012)