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OVERVIEW | OPPORTUNITIES
Ports
OVERVIEW
SIZE
- India’s major ports handled cargo of over 463 million tonnes in 2006-07 - 9.5% increase over last year
- 80% of the port traffic by volume is dry and liquid bulk, remaining 20% is general cargo, including containers
- Containerised cargo has grown at a rate of 15% p.a. over the last 5 years
- India has 12 major ports and 187 minor ports along 7,517 km long Indian coastline
- Cargo handled by major ports has increased by 10.4% p.a. over last 3 years
- Major ports handle 74% of the total traffic
- Of the 12 major ports, 11 ports are run by Port Trusts while the port at Ennore is a corporation under the Central Government
- Two major government projects underway
- Project “Sethusamundram”: Dredging of the Palk Strait in Southern India to facilitate maritime trade through it
- Project “Sagarmala”: US$22 billion project for the modernisation of major and minor ports
STRUCTURE
- Government of India dominated maritime activity in the past. Policy direction is now oriented to encouraging the private sector to take the lead in port development and operations
- Major ports to operate largely as landlord ports - international port operators have been invited to submit competitive bids for BOT terminals on a revenue-sharing basis
- Significant investment in port terminals on BOT basis by foreign players include Maersk (Mumbai), Dubai Ports International (Mumbai, Chennai, Vizag and Kochi), and PSA (Tuticorin, Chennai)
- Minor ports are being developed by domestic and international private investors Pipavav Port by Maersk, Mundra Port by Adani Group
POLICY
- 100% FDI under the automatic route is permitted for port development projects
- 100% income tax exemption for a period of 10 years
- Tariff Authority of Major Ports (TAMP) regulates the ceiling for tariffs charged by major ports/port operators (not applicable to minor ports)
- A comprehensive National Maritime Development Policy has been formulated to facilitate private investment, improve service quality and promote competitiveness
Cargo handled by Major Ports in India
| Major
Port |
Trade
(06-07, MMT) |
Container
Traffic
(06-07)(million TEU*) |
| Chennai Port |
53 |
0.79 |
| Cochin Port |
15 |
0.23 |
| Ennore |
10.7 |
— |
| Haldia |
42.4 |
0.11 |
| JNPT |
44.8 |
3.29 |
| Kandla Port |
52.9 |
0.17 |
| Kolkata Port |
12.5 |
0.24 |
| Mormagao |
34.2 |
0.01 |
| Mumbai Port |
52.4 |
0.13 |
| New Mangalore Port |
32 |
0.02 |
| Paradip Port |
38.5 |
0.002 |
| Tuticorin Port |
18 |
0.37 |
| Vizag Port |
56.4 |
0.05 |
Source: Indian Ports Association
* Twenty foot equivalent unit (TEU)
OPPORTUNITY
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The JNPT port has capacity is over 3.6 million TEU
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The port sector has
seen significant investment by
major global port operators |
OUTLOOK
- Cargo handling at all the ports is projected to grow at 7.7% p.a. till 2013-14 with minor ports growing at a faster rate of 8.5% compared to 7.4% for the major ports
- Traffic at major ports estimated to reach 793 million tonnes by 2013-14
- Level of containerisation expected to increase significantly over current levels of 15%
- Containerised cargo is expected to grow at 17.3% over the next 9 years
- Exports have grown at a CAGR of 25% p.a. over the last 2 years to reach US$124 billion
- A large portion of the foreign trade to be through the maritime route- 95% by volume and 70% by value
- Mainline operators to increase direct sailing frequency to Indian ports
POTENTIAL
- Growth in merchandise exports projected at over 13% p.a. underlines the need for large investments in port infrastructure
- Identified Investment need of US$12.4 billion in the major ports under National Maritime Development Program (NMDP) to boost infrastructure at these ports in the next 9 years
- Under NMDP, 276 projects have been identified for the development of major ports
- Public–private partnership is seen by the government as the key to improve major and minor ports
- 67% of the proposed investment in major ports envisaged from private players
- The plan proposes an additional port handling capacity of 545 MMTA from 2006-07 in Major Ports through:
- Projects related to port development (construction of jetties, berths etc.)
- Procurement, replacement or upgradation of port equipment
- Deepening of channels to improve draft
- Projects related to port connectivity
- Expected investments of US$7.7 billion in minor Ports
- Fourth terminal at JNPT likely to involve an investment of US$1 billion
For additional information:
Department of Shipping, Ministry of Shipping, Road Transport & Highways (http://shipping.nic.in), Planning Commission, Government of India (planningcommission.nic.in)
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