NIT Calicut Opportunities in Maritime Sector

Opportunities in the Maritime Industry:
India's Maritime Interests

April 2024
Conceptual Understanding of the Maritime Sector
In India, 90 % of the Trade volume and 65% of the trade value depend on the sea
ORIGIN
DESTINATION
• Connectivity- Road -Rail -IWT

• Terminal
• Warehouses – ICD-CFS-MMLP
• Vessel
World Maritime Routes
Global trade volume = USD 30 trillion
• 30 % of world trade goes through the

Strait of Malacca
• 15% passes through the Suez Canal
• 50 % of Indian trade and 30 % of
India’s trade volume is USD 1.2 Trillion Containerized trade is through Suez Canal
Ports the hub of maritime logistics
Location of Major and Non-Major Ports Indian Maritime Sector Overview
7,500+ km of coastline and 20,000+ km of
navigable waterways
12 Major ports and 200+ non-major ports
>90% of country’s trade by volume utilizes

maritime transport
10.2% growth in coastal traffic over the last 5

years
19% growth in cargo volumes for inland

waterways in last 5 years
Indian Maritime Sector: Vision 2030
Maritime Amrit Kaal-2047
It identified 11 key
 As an extrapolation of themes and about 300
Maritime India Vision 2030, initiatives from these
and the initiatives undertaken themes which if achieved
by the 13 working groups for
will result in India
developing a Blue Economy,
becoming a blue
the Ministry of Ports Shipping
economy and bringing
and Waterways (MoPSW)
prepared the Maritime Amrit back its ancient glory as
Kaal Visio 2047 and was a maritime nation.
presented by the Hon PM on
14th October 2023
Lead the World in Safe, Sustainable & Green
Maritime Sector:
 3 % of the global Green House Gas (GHG) emissions come from the
maritime sector
 Ports which are Green and Carbon neutral
 Usage of marine fuels with less Sulphur Dioxide SO2
 Usage of alternate fuels like LNG, Hydrogen /Ammonia Cells,
Operation of Battery/Electric Ships, Usage of biofuel etc
Anne Maersk – Methanol

Opportunities for Foreign Investors in the
Maritime Sector
 India has already clogged in an investment of USD 2.4 Billion in FY 23 in this sector.
 100 % FDI Automatic route Investments allowed in Port and Harbor Projects
 More than 807 Sagarmala Projects have been identified for implementation by 2035,
and an investment of INR 6 trillion (US$81 billion) is being sought.
Promote Ocean, Coastal & River Cruise Sector
 Cruise tourism is a huge opportunity for India. Its market size is US $7.1 billion.
 expected to grow at a CAGR of 12.1% for the next 10 years
 Mumbai, Murmagoa, Chennai Vizagapatam new Mangalore, and Cochin all Major ports
have already developed state-of-the-art Cruise terminals.
 In Hong Kong every year 33 million people depend on ferries to connect with 9 -10
islands (The Star Ferry's ferry crossings at Victoria Harbor )
 National Waterway-3 : Kollam –Kottapuram
 Samudriga- Sagarika terminals in Kochi
Ganga Vilas : Varanasi-Dibrugarh Classic Imperial

Enhance modal share of coastal shipping &
Inland Water Transport
 With 200 TEU/Month movement in 2002 this trade has enhanced to more than 25000
TEUs /month by 2022.
 RoRo / RoPax ferry service commenced on 6 Routes : (Hazira – Ghogha, Mumbai –

Mandwa, North-South Guwahati, Dhubri – Hatsingimari, Majuli – Neamati, Wellington
Island – Bolgatty)
 Major Port will be giving priority berthing to Coastal bound vessels and rebates to be
provided for Vessel related charges
 Green channel for faster evacuation of coastal vessels
 Reduction of GST of bunker fuels used in Indian flagged vessels to 5 %
 Coastal berths have been constructed at 5 locations (JNPT, VoCPT, VPT, ChPT & Kollam);
Another 5 are under implementation and 1 under development
Become a global player in Shipbuilding,
repair & recycling
 In 2022, there were 1,520 vessels registered under the Indian flag
 The average age of the Indian vessels is almost 20 years. The need for new
ships is increasing at the rate of 12 % and old ships need to be replaced.
 Expansion of Alang Shipyard and new locations in AP, Orissa &West Bengal
 Investment opportunities in setting up shipyards and repair facility comes
under the 100 % automatic FDI route
Alang Ship breaking yard

Develop World Class Education, Research & Training
 Setting up incubators and accelerators in the country to promote startups in the maritime sector,
 Set up the National Marine Startup Acceleration Center (NMSAC)
 Setting up of Maritime Knowledge Clusters to promotive collaborative approach for research in
the maritime sector
 Establish partnerships with leading international maritime training institutes
 Centre of Excellences in Maritime Sector in IITs, NIFTs and IIMs
Infuse technology enabled Maritime Management
• IMO: Convention of Facilitation of International Maritime

Traffic (FAL) –Addressing delays in Maritime Traffic :
• FAL mandates the governments to adopt a
technologically enabled Maritime Single Window System
(MSWS) as a unified digital platform:
• MSWS enables the integration of documented shipping
processes and boosts global shipping efficiency
• With 4.6 million ship calls annually (2022) governments
to adopt harmonized data standards.
• India’s MSWS called Sagar Sethu- NLP Marine
(https://nlpmarine.gov.in)
• Complete end-to-end logistics solutions open source
system with real-time exchange of documents and
facilitating transaction business
Promote Transshipment Hubs
• Out of 4.2 Million TEUs of

International transshipment from
India, 75 % of India’s
Transshipment through Colombo,
Port Klang, Singapore, and Dubai.
• Average Transshipment Cost is
around $50 /TEU + additional
charges for towing and
warehousing .
• Vizhinjam. Vadhawan, and Galathia
bay . Upcoming projects
Challenges: Red Sea Crisis
Houthi attack on Red Sea route –
Supported by Yemen
Container freight increase

Impact Increase in Marine insurance
cost
Cascading Effects
• Delayed shipments for weeks due to

backlog of supply chains
• Increased pressure on local inventories
and short-term price rise
Alternate route?
Circumscribing the Cape of Good Hope

15
Impact of the Red Sea Crisis
Supply Chain disruption
Vessel Bunging
Increased freight rates
Port congestion
Container Alliances
Thank you
Subscribe to Maritime Musing :
https://www.linkedin.com/in/rajesh-
anand-menon-8458906/

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Opportunities in the Maritime Industry:

India's Maritime Interests

• Connectivity- Road -Rail -IWT

• 30 % of world trade goes through the

12 Major ports and 200+ non-major ports

>90% of country’s trade by volume utilizes

10.2% growth in coastal traffic over the last 5

19% growth in cargo volumes for inland

Anne Maersk – Methanol

Ganga Vilas : Varanasi-Dibrugarh Classic Imperial

 RoRo / RoPax ferry service commenced on 6 Routes : (Hazira – Ghogha, Mumbai –

 Green channel for faster evacuation of coastal vessels

 Reduction of GST of bunker fuels used in Indian flagged vessels to 5 %

Alang Ship breaking yard

• IMO: Convention of Facilitation of International Maritime

• Out of 4.2 Million TEUs of

Container freight increase

• Delayed shipments for weeks due to

Circumscribing the Cape of Good Hope

Supply Chain disruption

Increased freight rates

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