CARGOCONNECT JULY2024 - Flipbook - Page 12
CATAPULT
T
he Indian shipping
industry dominates
about 95% of the
country’s trade volume and 65% of its
trade value. Along its 7,500 km
of coastline, India has 12 ports
designated as major ports (owned
by the national government) and
217 non-major ports (owned by
the respective state governments).
Projections suggest a fivefold
increase in seaborne tonnage by
2047, and both steady expansion
of 昀氀eet and substantial port infrastructure have been earmarked to
play leading role in these e昀昀orts.
Currently, initiatives are
being implemented to tackle
ongoing challenges, foster the
integration of Indian-flagged
vessels into both local and
international shipping fleets,
and enhance port infrastructure
to facilitate cargo movement as
well as support decarbonisation
endeavours.
The 昀氀eet size of the Indian
shipping industry experienced a
compound annual growth rate of
1.74% between 2018 and 2023.
As of December 31, 2023, the
industry boasts a 昀氀eet of 1,526
vessels, totaling 13.74 million
gross tonnage (GT) and 20.83
million deadweight tonnage
(DWT). Among these, 1,039 vessels are coastal, comprising 1.72
million GT and 2.03 million DWT,
while 487 vessels are overseas,
totaling 12.02 million GT and 18.8
million DWT. In December 2023,
one coastal vessel of 1,930 GT
12 | CARGOCONNECT JULY 2024
KEY HIGHLIGHTS
TOWARDS
STRENGTHENING
INDIA’S SHIPPING
SECTOR
empowering Indian shipyards to
secure orders from both domestic
and international markets. The
SBFAP scheme o昀昀ers 昀椀nancial
assistance to Indian shipyards
for shipbuilding contracts signed
between April 1, 2016, and March
31, 2026. The scheme features
a diminishing rate of 昀椀nancial
aid, starting at 20% in 2016 and
reducing to 11% by 2026.
In the spring of the last year,
MoPSW introduced the “Harit
Sagar” Green Port Guidelines,
outlining various decarbonisation strategies for major ports.
These include electrifying port
vehicles and cargo-handling
equipment on land, as well as
Last year, MoPSW introduced the “Harit Sagar”
Green Port Guidelines, outlining various decarbonisation
strategies for major ports. These include electrifying port vehicles
and cargo-handling equipment on land, as well as gradually
transitioning trucks transporting cargo to alternative fuels.
was added to the 昀氀eet, alongside
two overseas vessels totaling
30,598 GT (51,606 DWT) being
added and four overseas vessels
totaling 98,999 GT (172,863 DWT)
being removed. Industry data
reveals that India’s shipping 昀氀eet
is predominantly composed of
crude and product tankers at
57%, followed by dry bulk carriers (16%) and containers (5%).
The government is actively
pursuing numerous initiatives
to propel the shipping industry
forward. Under the Amrit Kaal
vision, the Ministry of Ports, Shipping and Waterways (MoPSW)
has identi昀椀ed a potential cargo
movement of 1,300 million
tonnes per annum (MTPA)
through coastal shipping by
2047. Additionally, the MoPSW
has introduced measures to
promote coastal shipping as
part of the National Logistics
Policy, including enhancing
昀椀rst- and last-mile road and rail
connectivity and implementing sectoral plans for efficient
logistics. To expedite the evacuation of coastal cargo at ports,
the MoPSW has implemented
a priority berthing policy and
green channel clearance for cargo
vessels. As of December 2023, 昀椀ve
dedicated coastal berths with a
total capacity of 6.34 MTPa have
been developed, and 10 projects,
including roll-on-roll-o昀昀 (Ro-Ro)
passenger jetties valued at `5.27
billion, have been completed.
Furthermore, 31 shipyards have
secured orders for 88 vessels
(both domestic and export)
valued at `68 billion over the
past four years.
Additionally, in December
2023, the MoPSW revised the
Shipbuilding Financial Assistance Policy (SBFAP) scheme,
gradually transitioning trucks
transporting cargo to alternative
fuels. To mitigate emissions at
sea, “Harit Sagar” promotes the
use of shore power and cleaner
fuels for operating port vessels,
aligning with its name, which
translates to “Green Ocean” in
Hindi.
MoPSW will conduct annual
evaluations of the environmental
performance of major ports.
These assessments will be based
on prede昀椀ned near-term (30%
by 2030) and long-term (70%
by 2047) targets for reducing
carbon intensity, measured in
terms of carbon dioxide (CO2)
emissions per ton of cargo. These
targets were established using
FY 2022–23 as the baseline year,
and major ports were assigned
the responsibility of preparing
the necessary greenhouse gas
emissions inventory in collaboration with an expert agency.
