The Indian ministry of shipping has plans to encourage investments in the shipping sector, kick-started by a summit in Mumbai this year.
According to Tuscor Lloyds, with over 7,500km of Indian coastline and government budgets for 2016-2017 including around $4.7 billion for four new key ports, it is clear the maritime sector is set on future growth. Overall cargo traffic in India was recorded at 1052 million tonnes in 2015 and is expected to climb to 1,758 million by 2017.
The Ports of India
Although there are around 200 ports in India, the 12 major ports in India are identified as Kolkata, Paradip, Visakhapatnam, Kamarajar (Ennore), Chennai, VO Chidam baranar (Tuticorin), Cochin, New Mangalore, Mormugao, Mumbai, Jawaharlal Nehru Port Trust (JNPT) and Kandla. These ports are due to receive around $10.5 billion dollars in the next five years under the Sagarmala initiative to help improve port infrastructure.
And it’s not just the government actively championing improvements to the maritime sector in India. Jawaharlal Nehru stands as the largest container terminal in the country and the Port Trust have recently introduced a new system to enable importers to clear cargo through customs more efficiently.
Automotive Shipping in India
Another initiative has seen a shift to using sea transport for the growing auto industry. Hyundai Motor Company have begun to use Ro-Ro Vessels to transport its cars via sea for the domestic market in India. Last week APM Terminals Pipavav welcomed its first domestic Ro-ro Shipment. The Hoegh Antwerp vessel carried 800 cars from Hyundai manufacturing hub Chennai.
The initiative has been as a result of the government’s relaxed cabotage regulations helping foreign companies save on transshipment costs as well as reducing carbon footprint. Surprisingly around 60 per cent of India’s exports and imports are transshipped via Singapore and Colombo, adding extra costs and transit times for the lines.
With the launch of our renewed services to India, we have created a special Port Focus infographic looking at the future investment planned for the Ports of India.
To access the original article: http://www.tuscorlloyds.com/ports-of-india/