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Displaying 1 to 2 of Records.
Page 1 of 1
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Maritime sector to create 1 cr jobs in 5 years: Gadkari
The shipping and ports sector is poised to generate 1 crore jobs in 5 years as the government is committed to according it high priority, Union Minister Nitin Gadkari today said. Projects worth Rs 1.2 lakh crore have already been lined up for the Maritime India summit next month with a likely participation by 57 nations, he said.
"India offers immense investment opportunities in the maritime sector. Prime Minister Narendra Modi has said growth of ports is instrumental in development of a nation.
Unfortunately our maritime sector occupies the last place in globe but government has accorded top most priority to develop it," the Road Transport, Highways and Shipping Minister Gadkari said.
“This sector will create 40 lakh direct and 60 lakh indirect employment in next five years,” he said at the media launch of upcoming Maritime India Summit scheduled from April 14 to 16 in Mumbai. Gadkari said manufacturing sector contributes 20-24 percent to India’s GDP but its growth has been hindered by high logistics cost.
"We are set to address the issue by promoting water transport as logistics cost is 18 percent in India as compared to barely 8-10 percent in China and 10-12 percent in European countries. Sending material to London from Mumbai is easy and less expensive as compared to dispatching it to Delhi," he said.
The government’s top priority is to develop waterways and ports to reduce the high logistics cost as while it costs Rs 1.5 a km to carry the cargo from road, the same stands at rupee one from rail while through waterways it reduces to only 25 paise a km, he said.
The minister said maritime holds immense potential as India with its long coastline of 7,517 km and inland waterways of 14,500 km had vast untapped opportunities.
"We have already identified projects worth Rs 1.2 lakh crore for maritime investment summit," the minister said.
Besides government has lined up huge projects under its Sagarmala initiative for port-led development of the country.
Gadkari said government has identified over 150 projects under its ambitious 'Sagarmala' initiative. The government earlier has said that these 150 projects will mobilise more than Rs 4 lakh crore investment The Minister said three new major ports were also on the anvil at a cost of Rs 21,500 crore that include a greenfield port in Maharashtra with an investment of Rs 10,000 crore, another in Tamil Nadu with an expenditure of Rs 7,000 crore and one in West Bengal at an estimated cost of Rs 4,500 crore under PPP mode.
Providing details of port augmentation projects, Gadkari said work has already been started on 27 projects worth Rs 12,700 crore to add a capacity of 116 million tonne per annum.
Source: PTI
Posted On:
11-Mar-2016
Credits:
www.hellenicshippingnews.com
Mumbai Nhava-Sheva Ship Agents Association reaction on the cabotage relaxation
"The relaxation should have been for all types of cargo and not restricted to containerized cargo which would have brought in competition and would have led to lower Logistics cost to the economy. In the present context, Indian ship-owners do not want to engage in coastal movement and they do not want anybody else to do so either, which does not fit in with the norms of a liberalized Economy and hence is not conducive to promote trade. The relaxation of cabotage seems to be taken essentially from a port operator's perspective rather than from a shipping lines perspective. A port operator cannot decide transshipment of containers unless he engages the shipping lines and their respective customers’ to do so. Eventually, it remains a half baked solution for a complex business problem."
About MANSA: Established in 1977, Mumbai and Nhava-Sheva Ship-Agents Association - (MANSA) gives a powerful voice to the grievance of ship agents and address their issues and enhance working and business relationships with the port authorities and port administration. Though the name indicates Mumbai and Nhava Sheva, the members of MANSA account for 85% of the cargo handled at all ports across the country.
Moreover, the Order seems to be further self constraining in its essence, to the extent that "if" a Port Operator is not able to achieve 50% Transhipment, of their Total throughput then the Cabotage Relaxation will be revoked. So, the question here is, does a Port Operator restrict their EXIM or Origin/Destination Trade to achieve transhipment commitments or concentrate ONLY on Transhipment Cargoes ? Ideally, the effort should be in both, without having to worry about Transhipment percentage of their thru put. The Market being dynamic & driven by Global supply/demand shall vary or fluctuate from time to time. Neither the Port Operator nor the Shipping Company can control this & hence there should not be any restraining factor in the Policy decisions being taken.
Para 2.12 of the Order does state that Foreign Vessel shall transport EXIM & Empty Container "only from Transhipment port" it does not allow Coastal movement of Containers on Foreign Flag vessels.
Infact, Shipping Companies have been advocating opening up of the Sector in Totality & allowing Cabotage Relaxation for firstly Containerised Cargoes to from any Port for Domestic + EXIM + Empties Containers, to promote Coastal movements at reasonable costs & freeing up the Rail / Roads transportation and related congestion. This would also be far more Environmentally favorable & would help the Government to achieve the 20% Reduction of Green house emissions by 2020, that they have promised at the COP 21.
Source: Captain Vivek Anand, President of the Mumbai Nhava-Sheva Ship Agents Association
Posted On:
11-Mar-2016
Credits:
www.hellenicshippingnews.com
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