Ministry of Ports, Shipping and Waterways in collaboration with Observer Research Foundation (ORF) organized Sagarmanthan: The Great Oceans Dialogue which focused on maritime logistics, ports and shipping with a focus on development of India’s maritime sector.
Key developments related to India’s maritime sector:
Chennai-Vladivostok Eastern Sea Corridor:
Started operations in late 2023, it focuses on facilitating cargo transportation between India and Far East Russia as well as access to key imports such as crude oil, food and machinery.
India and Greece are collaborating on the India-Middle East-Europe Economic Corridor (IMEC) announced during the New Delhi Summit 2023 of the G20.
It aims to integrate sea and rail routes in order to promote trade and economic connectivity between India, the Middle East and Europe.
Maritime Vision 2047:
India aims to be a major player in the maritime sector by 2047 with focus on ports, cargo, ship ownership, shipbuilding and related reforms.
India is also working towards meeting the target of port handling capacity of 10,000 million metric tonnes per annum by 2047.
Investment in Maritime Infrastructure:
India is planning to invest Rs 80 lakh crore in the maritime sector in the light of major projects like Vizhinjam International Port in Kerala, new mega ports at Vadhavan (Maharashtra) and Galethia Bay (Nicobar Islands).
The focus is on progress towards building ships powered by clean fuels such as ammonia, hydrogen and electricity for sustainability in the region.
Port Turnaround Time:
It has mostly improved (reduced from 40 hours to 22 hours) and is better than countries like USA and Singapore.
Port turnaround time refers to the time it takes for a ship to unload, load, operate and get ready for the next voyage.
The amended law:
The Major Port Authorities Act, 2021, the National Waterways Act, 2016, the Inland Vessels Act, 2021 and the Ship Recycling Act, 2019 have already accelerated development in the ports, waterways and ship recycling sectors.
The Coastal Shipping Bill, 2024 and the Merchant Shipping Bill, 2020 will soon promote coastal shipping, shipbuilding and recycling in India.
The preservation of heritage:
National Maritime Heritage Complex is being constructed at Lothal to revive India’s shipbuilding heritage.
Chennai-Vladivostok maritime corridor:
The Chennai-Vladivostok maritime corridor is a maritime connectivity route that connects the east coast of India with the ports of the Russian Far-East Region, particularly Chennai Port and Vladivostok Port.
Reduction in Distance:
The new route will reduce the distance from 8,675 nautical miles (via Europe) to about 5,600 nautical miles.
Reduction in time:
It will reduce the time taken to transport cargo between India and Far East Russia by 16 days, and the journey will now take 24 days as compared to 40 days earlier.
Strategic importance:
Vladivostok is the largest Russian port on the Pacific Ocean and is located about 50 kilometers from the China-Russia border.
The business potential:
A feasibility study shows that there is significant potential for trade in commodities such as coking coal, oil, fertilizers, containers and liquefied natural gas (LNG) between India and Russia.
Supplementary initiatives:
The Chennai-Vladivostok corridor is aligned with other initiatives, such as the Northern Sea Route and the International North-South Transport Corridor (INSTC).
Challenges in India’s maritime sector:
Competition from China: In less than 70 years, China has become a global maritime power with a large navy, coast guard, largest merchant fleet and leading ports.
Its Belt and Road Initiative (BRI) further strengthens its position as a maritime competitor.
Ineffective port infrastructure:
Modernization of existing ports and construction of new ports have been delayed, and many of the objectives under the Maritime Agenda 2010-2020 could not be met by 2020.
While port connectivity is the core of the Sagarmala programme, intermodal transport (especially connecting ports to the inland transport network) is still underdeveloped.
Lack of participation from the private sector:
India’s maritime economy, especially in the context of port-led industrialization, still has inadequate private sector participation.
Concerns relating to sustainability:
Maritime trade and port development are often required to meet environmental criteria, particularly in relation to coastal ecosystem degradation and the environmental impact of large infrastructure projects.
The geopolitical challenges:
Changing geopolitical dynamics and new global maritime challenges, such as the threat from non-state actors (e.g., Houthi attacks on commercial vessels) pose risks to India’s maritime trade.
Dependence on foreign shipbuilding:
Despite progress in indigenous shipbuilding, India is largely dependent on foreign technology for shipbuilding and marine equipment.
Solution:
Accelerating Port Modernization:
The Sagarmala programme, launched to promote port-led industrialisation, should be accelerated, with a focus on prioritising the modernisation of domestic shipyards, reducing bureaucratic hurdles and ensuring timely project implementation.
Encouraging private investment:
The government should provide greater incentives for private participation in the maritime sector through favourable policies, tax breaks and investment-friendly regulations.
Promotion of port-led industrialization:
India should focus on creating industrial clusters around ports using the Make in India initiative.
Promotion of Green Shipping:
Promoting alternative fuels such as liquefied natural gas (LNG) for ships and renewable energy sources can reduce the carbon footprint of maritime trade.
Multilateral Maritime Cooperation:
India should enhance its engagement with regional and multilateral security frameworks such as the Indian Ocean Rim Association (IORA) to ensure cooperative maritime security.
