vice port model vs.

Landlord port model

 The service port model: The port authority owns the land and all
available assets—fixed and mobile—and performs all regulatory and
port functions.
 The landlord port model: The publicly governed port authority acts as a
regulatory body and as landlord while private companies carry out port
operations—mainly cargo-handling activities

Significance
 95 per cent of India’s trade by volume and 65 per cent by value are done
through maritime transport
 7,500 kilometre long coastline.
 14,500 kilometres of potentially navigable waterways
 strategic location on key international maritime trade routes.
 India's blue economy, which is expected to contribute 4% to GDP,
supports 95% of the nation's business through transportation.
 India is also one of the top 5 nations in the world that produce fish
through aquaculture
 95 percent of India’s trade by volume is transported by sea.

Government initiatives

Sagarmala program

focuses on
 modernizing and developing ports,
 enhancing port connectivity,
 supporting coastal communities,
 stimulating port-linked industrialization
 reduce the logistics costs for foreign and domestic trade.
Jal Marg Vikas project

 a project for the development of Na onal Waterways in India

 aim to reduce rail and road conges on

Central Road and Infrastructure Fund

 infrastructure sub-sectors, including inland waterways, for which CRF

could be used

Major Port Authori es Act

 aims to decentralise decision-making and reinforce excellence in major
port governance.

Project UNNATI
 iden fy opportunity areas to improve opera ons of key

Indian Ports Bill 2022

 establish State Mari me Boards for effec ve administra on
 preven on and containment of pollu on at ports
 ensure compliance with mari me trea es
 provision for control and management of non-major ports
 provide for adjudicatory mechanisms for redressal of port related
disputes
 Mari me State Development Council will ensure coopera ve
federalism
 Mari me Agenda was introduced-inten on of pu+ng Indian ports on
par with those overseas
 create a single regulatory body, the Major Ports Regulatory Authority,
to deal with the problem of port tariffs
 in charge of developing standards and a process for determining prices
for services offered at port terminals
 e implementa on of the cap ve port policy, under which the
government will grant private businesses with cap ve berths at major
 ports so they can use these infrastructures solely for their own
commodi es.
 100% FDI using the automa c route For the purpose of building and
maintaining ports and harbors
Mari me State Development Council
 apex advisory body for the coordinated development of major ports
and non-major ports.

 , Model Concession Agreement (MCA) has been finalised to bring

transparency and uniformity to contractual agreements that major
ports would enter with selected bidders
Inland Vessels Bill 2021
 a4empts to include a single legisla on for the country.
 registra on cer ficate will be valid throughout the country
 establishes a single database for recording vessel and crew informa on
on an Internet portal.
Significance/Impact
Port Moderniza on-
 Results in Capacity augenta on

Port connec vity-

 Results in rail/roads connec vity
 Encourages Coastal shipping
 Inland water transport
 Crea on of logis cs parks

Post led Industrializa on

 Crea on of Industrial Clusters
 Crea on of Coastal Econoic Zones
 Crea on of mari me clusters
 improve the ease of trading across borders..
 Coastal Comunity development-
 Spike in Coastal tourism projects
 Development of fishing harbourrs and fish processing centres

Effec ve port resource management would stop illicit prac ces like drug
trafficking and guarantee the security of the Sea Lanes of Communica on
(SLOC).

 Export of goods produced in landlocked areas.

 Provide employment opportuni es.
 Export of minerals from such producing areas.
  Facilitates loading-in perishable commodi es like fruits, flowers

 Reducing logistics cost-India was ranked 44th in the World Bank

Logistics Index released,far behind the US at 14 and China at 26.

 Blue Economy-contributes about 4% of the country's GDP.

 Countering the influence of China:China holds a 99-year lease on Sri
Lanka's Hambantota port.
 Regional integra on:can help recreate an integrated hub and spoke
model for regional connec vity in the Bay of Bengal.

CONS-
 Inland Water Transport (IWT) carries less than 2 percent of India’s
organized freight traffic
 Most Indian container handling ports lack capability to handle large
container vessels due to inadequate depth-minimum draD depth of 18
meters is needed
 Weak hinterland connec vity between produc on centers and gateway
ports
 port facili es do not match with global standards
 inadequate cargo-handling equipment and machinery,
 insufficient dredging capacity
 lack of technical exper se,

 Absence of mul modal transport network.

 Lack of significant businesses in hinterland to jus fy se+ng up of dry
ports.
 Credit availability reduced due to the NPA crisis.
 Road infrastructure found to be inadequate.
 Lack of willingness among the private sector.
 Most Non-Major Ports do not have proper material handling
equipment
 High turnaround mes:example, in Singapore, average ship turnaround
me is less than a day. However, in India, it is over two days.
  Lack of adequate berthing facility, number of berths,
 Sub-op mal Transport Modal Mix: Lack of requisite infrastructure for
evacua on from major and non-major ports
 Port conges on:due to container volume, shortage of handling
equipment and inefficient opera ons
 poor hinterland connec vity through rail, road, highways, coastal
shipping and inland waterways.
 Issues with Regula ons:
 major and non-major ports fall under different jurisdic ons.
 regulatory framework is rigid.
 Foreign-flagged vessels not allowed to ship cargo from one Indian port
to another
Issues with PPP Model:
 Most port PPPs impose strict limits on what private operators are
allowed to do
 Environmental impact:
 During the opera on of ports, spillage or leakages from the loading and
unloading of cargo and pollu on from oil spills
 Dredging causes environmental problems (increased sedimenta on)
affec ng local produc vity
 Social impacts of Port Development:
 results in displacement (such as Gangavaram Port in Andhra and
Mundra in Gujarat).
 restric on of access to fishing grounds around a port.
 Haldia Port, West Bengal, being a riverine port, facesheavy silta on and
inadequate dredging capaci es.
 Paradip Port, Odisha, there is issue of semi-mechanisa on and manual
handling of cri cal processes having a cascading effect on overall
opera onal efficiency.
 Conges on at the approach roads is a common problem observed at
the Jawaharlal Nehru Port in Maharashtra.

Way forward

 open up the dredging market to a4ract more players

 maintain draD depth at ports to a4ract large vessels
 se+ng up coastal economic zones (CEZs)
 Financing for inland vessels could be made part of priority sector
lending by banks.
 se+ng up of a single-window facility for cargo clearance
 Inland terminals with proper road and/or rail connec vity

 Provision of PPP model in their development.

 Development of freight corridors (eastern and western dedicated
freight corridors).
 Coopera on with the state government to share costs

 Industrial development to generate sufficient businesses/goods.

  Accelerated road development (Bharatmala Pariyojana) and
mul modal transport networks (Jal Marg Vikas Project).

 Environmental clearances, Tariff norms, land acquisi on etc. need to be

standardized
 installing advanced cargo handling processes, scalability in processes
and mechanisa on of port opera ons.
 Technologies like big data and advanced GPS naviga on systems should
be op mally used
 ver cal integra on of all stakeholders (for example: environment,
rail/road transport etc.) for holis c development of ports
 Revival of project like Sagarmala to create a string of ports around
India’s coastline

 With regards to ports, Vijay Kelkar commi4ee on PPP recommended

review of role and need of Tariff Authority for Major Ports (TAMP),
review of MCA, quicker clearances, ra onalized leases and stamp du es

 Ni Aayog in its Three Year Acton Agenda (2017-2018), recommended

the following:
o Increase compe on through easing cabotage
 Increase the capacity of and eliminate discriminatory provisions for
Indian vessels
 Explore crea ng deep-water ports or barges for ports with low draDs
 Facilitate minor/non-major port connec vity to hinterland areas

Inland naviga on

inland waterways?
 stretch of water, not part of the sea, over which craD of a carrying
capacity not less than 50 tonnes can navigate
 Rivers, lakes, canals, backwaters and reservoirs primarily cons tute the
source for inland waterways

Poten al of Inland Waterways in India:

 approximately 14,500 kms of navigable waterways.
 Inland water transport account for about 0.4% of trade
 Logis cs costs-about 18% of the country’s GDP-can be brought down
considerably
 pass through India’s most densely populated areas and resource-rich
regions-
 Pros
 Low cost:less capital for development and less maintenance costs.
 Energy efficient:
 Environment friendly: CO2 emissions from container vessels much
lesser than road transport vehicles.
 enormous capacity to carry bulk cargo, goods etc
 Navigable:around 14,500 km of river channels
 Equitable Regional development-For instance, North-eastern
states receive coal, food grains through inland water transport.

Issues
 Water Flow: have been decreased Due to Industrial, Agriculture and
habitation
 Cost estimation:
 Excessive Siltation:-Deforestation and erosion activity
 Inadequate depth of Indian rivers: To be viable for a navigable inland
waterway
 Impact on other activities:rivers has competing demands, including
dams and farming.
 Inadequate Air Draft:Multiple bridges with low vertical clearance
obstruct passage of bigger inland water transport vessels
 . Lack of night navigation infrastructure:
 Shortage of IWT vessels:
 Lack of capital -Vessel building highly capital intensive
 . Shortage of MRO facilities:(Maintenance, Repair and Overhaul)
 . Inadequate industries-on the riverside, especially Brahmaputra
 Social impact: Displacement + fishing community dependent on
riverbed cultivation

Environmental Impact:

 Dredging operations will damage river bed

 may also impact aquifers along the river,
 damaging ability of water to percolate underground.
 can result in ingress of excess saline water into creek or rivers.
 Construction of jetties, river ports will necessitate removal of trees/
mangrove forest
 pollution due to oil and diesel from vessels, leakage and spilling of
cargo

Legislation:

1.The Inland Waterways Authority of India Act, 1985:

 constitution of an Authority for regulation and development of inland
waterways
 undertakes projects for development and maintenance of IWT
infrastructure on national waterways

Indian Vessels Act of 1917 (amended in 2007):

 deals with survey and registration of inland vessels, removal of
obstructions in navigation, carriage of goods and passengers, prevention
and control of pollution
Inland Water Transport Policy 2001:
 advocates private sector participation both for creation of infrastructure
and for fleet operations.

National Waterways Act 2016

 enables Central Government to regulate waterways for development
with regard to shipping, navigation and transport
 declared 111 rivers or river stretches, creeks, estuaries as National
(inland) Waterways.

Initiatives:
Interlinking of Rivers Programme:

1. Jal Marg Vikas Project:

 aims at capacity augmentation of navigation on National Waterway-1

(NW-1).
investment support of the World Bank.

Sagarmala Project:
 aims to reduce logistics costs by doubling share of domestic waterways
in modal mix from current 6 per cent (PIB)

 proposed to be linked to the eastern and western Dedicated Freight

Corridors (DFCs),

 Indo-Bangladesh (Sonamura-Daudkandi) and Indo-Myanmar protocol

(Kaladan) permitting transhipment of goods through Bangladesh and
Myanmar waters

wf
 NITI Aayog Recommendations
 Streamline governance of inland waterways:
 overarching body to oversee Inland Water Transport such as the IWAI
 develop deeper stretches of river, i.e., at least 2.5 m to 3 m to achieve
year-around navigation
 adequate maintenance of rivers, including continuous dredging
 .Ease restrictions on river-sea movement: Utilizing a single vessel for
both inland and coastal waters,
 create about 20 new ports in the Brahmaputra and Barak rivers.
 protocol for Inland Waterways between Bangladesh and India be
extended for at least 10 years to reduce uncertainty.