Govt. of India - PwC · PDF filelives in coastal areas ... EXISTING INDUSTRIAL CLUSTERS IN MUMBAI ... Economic Regions & projects with synergies to Coastal Industrial Corridors

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Sagarmala ProgramPresentation byA.K. Saran, Deputy Secretary

Govt. of India

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“Our coastal area can be a channelfor global trade…”

– Hon’ble Prime Minister of India, Maiden Speech to Parliament

Importance of India’s Coastal Regions & Maritime Sector (1/4)

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“Maritime infrastructure and shipping will play a pivotalrole in India’s economic engagement with the rest of

the world. India is blessed with one of the longestcoastlines located in the most strategic global traderoutes. Harnessing it will generate rich economic

dividend to the country.”– Hon’ble Minister of Shipping, Road Transport and Highways

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Kandla

Mumbai

JNPT

Mormugao

N. Mangalore

Cochin

V.O. Chidambarnar

Chennai

Visakhapatnam

Paradip

Kolkata

Kamarajar

Krishnapatnam

Dhamra

Jaigad

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Andaman & NocobarIslands

Laksha- Dwwep

STRING OF PORTS IN INDIA

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Significance ofIndia’s CoastalRegions

~7,500km of coastline spanning 13

maritime States and Union Territories

SOURCE: MOSPI, Census of India, IBEF, Secondary Research

~20% of India’s population

lives in coastal areas

Contribution of Maritime States to Indian GDP:

~60% (as of 2012-13)

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Significance ofIndian MaritimeSector

SOURCE: MOSPI, Census of India, IBEF, Secondary Research

~95% of India's trade by volume

and 70% by value takes place throughmaritime transport

India has 12 major portsand about 200 non-major ports

Cargo traffic expected to grow from

976 MMT in 2012 to 1,758MMT by 2017

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Maritime Sector: India vs. China

SOURCE: McKinsey research, Press search

India China

Average annual growth in container traffic1

(Mn TEU)

Container traffic (Mn TEU)

Number of ports in Global top 20

Port capacity stock (% of GDP)

Number of shipyards2

Contribution of waterways in domestictransportation3

Average Turn-around time (Days)

0.5 10

11 185

0 9

1 3

7 70

<1% 24%

4.5 1

1 Over 2008-20122 That can make more than 120 m long ships3 Includes both Coastal Shipping and Inland Waterways

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Rationale for Sagarmala Project

SOURCE: Ministry of Shipping

Constraints to the Growth of Maritime Sector

No cohesive institutional arrangement− Involvement of multiple agencies in development of infrastructure

− Presence of a dual institutional structure leading to development of major and non-majorports as separate, unconnected entities

Weak infrastructure at ports and beyond− Limited mechanization, lack of scale, deep draft and other facilities at various ports in India

− Lack of requisite infrastructure for evacuation from major and non-major ports leading tosub-optimal transport modal mix

− Limited hinterland linkages increasing the cost of transportation and cargo movement

Limited economic benefit to the region and to the community− Limited development of centres for manufacturing and economic activities in hinterland

− Limited conscious skill development & leverage to peripheral trades (fisheries etc.)

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Objectives of Sagarmala Project

Port Led Development− Undertake development of Coastal Economic Zones with projects like- port based

industrialization, coastal tourism, Logistics parks, warehousing, fisheries etc.


Port Infrastructure Enhancement− Action points on transforming existing ports into world class ports by

developing deep drafts, mechanization of existing berths, creation of newcapacity & greenfield ports

Efficient Evacuation− Expansion of rail / road network / inland waterways connected to ports

& identification of congested routes

− Find optimized transport solution for bulk and container cargo

Focus Areas of Sagarmala Project

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Example of Coastal Economic Zone

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POTENTIAL HINTERLAND OF MUMBAI - DIGHI CLUSTER

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EXISTING INDUSTRIAL CLUSTERS IN MUMBAI - DIGHI COASTALECONOMIC ZONE

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Sagarmala Vision (1/2)

Change how India moves logistically− Increase competitiveness of core industries including manufacturing sector by

reducing supply chain cost and time

− Increase volume of trade via inland waterways and coastal shipping

− Create an IT en abled national multimodal logistics system

− Develop coastal roads through maritime states for inter-state port connectivity

Boost development through ports & shipping− Develop 3-4 new mega ports

− Develop a world-class transshipment port of more than 10 Mn TEU capacity

− Create additional capacity of 1200-1500 MMTPA by strengthening existing ports

− Develop maritime and manufacturing clusters around the ports

− Develop 2-3 port based smart cities & Coastal Economic Zones


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Sagarmala Vision (2/2)

Create world class institutions− Set up the Sagarmala Development Company to enable project implementation

− Set up world-class PPP programs in port, waterways and connectivity projects

− Develop Indian Maritime University as a center of excellence for maritime education

− Set up best in class maritime services clusters in India

Empower coastal communities− Create more than 1 million jobs in the maritime and related sectors

− Increase GDP contribution of maritime states and sector through comprehensivecoastal community development plan


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19th February 201514th January 201515th August, 2003

9th June, 2014

Sagarmala Project Background

“Sagarmala” concept and various issuesrelated to its implementationdeliberated upon by the Committee ofSecretaries (CoS). Ministry of Shippingsought ‘in principle’ approval of theconcept of Sagarmala project

McKinsey - AECOMconsortium selected asStrategy & ProgrammeManagement Consultantfor the Sagarmalainitiative

Decision to make Ministryof Shipping the nodalMinistry for Sagarmalainitiative based on theHon’ble President of Indiaaddress to the Parliament

The CoS deliberated on issues relating to the area ofresponsibilities of the Ministry of Shipping, other line Ministries/Departments and State Governments / State Maritime Boardsalong with the timelines for execution of various activitiesenvisaged under the “Sagarmala” initiatives

Note for the Cabinet on“Sagarmala: Concept andImplementation” submittedby Ministry of Shipping

“Sagarmala”initiative announcedby then PrimeMinister of India

27th November 2014 15th May 2015


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Sagarmala Institutional Framework


Central implementingMinistries

Central-level SPVs

Port SPVs

National Sagarmala Apex Committee

Sagarmala Coordinationand Steering Committee

State SagarmalaCommittee

Sagarmala DevelopmentCompany (SDC)

State level SPVs

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Sagarmala Development Company

Implementation of the projects in Sagarmala will be taken up byrelevant Ports, Line Ministries, State Governments and State MaritimeBoards in the form of SPVs through private sector or PPP route

Ministry of Shipping will set up the Sagarmala Development Company(SDC) to assist the project SPVs (State / Port / Line Ministry level SPVs)

SDC may provide funding window / equity support / access to relevanttechnical consultants for the projects undertaken, as may be requiredand necessary

SDC will implement only those residual projects that cannot be fundedby any other means or mode


Sagarmala Development Company (SDC)

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Benefits forCBIC

Regions underSagarmalaProgram

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EXISTING INFRASTUTURE IN KRISHNAPATNAM - CHENNAI CEZ

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PORT LED INDUSTRIAL DEVELOPMENT INKRISHNAPATNAM – CHENNAI CEZ

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Potential Benefits for Maritime States from Sagarmala (1/3)

Implementation of skill development/livelihood generation projects forcoastal community development, e.g.

− Coastal Tourism Development projects (Lighthouses & Mainland Islands)

− Fisheries sector development

Development of port-based smart cities and otherurban infrastructure to improve standards of living

Integrating the coastal economy with the ports through development of CoastalEconomic Regions & projects with synergies to Coastal Industrial Corridors

Development of Coastal Economy

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Modernization/capacity expansion of existing ports and creationof greenfield ports to reduce bottlenecks for future growth

Development of maritime sector leading to new economic activityin the region - E.g. Ship Building and Repair Cluster

Maritime Sector & Infrastructure Development

Development of port evacuation (road/ rail/inland waterways)and logistics infrastructure to reduce overall logistics cost andto increase cargo movement to-and-from the hinterland

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Integrated approach to project identification andimplementation through coordination between LineMinistries, State / UT Governments and Private Agencies

Easing the Project Development Process

Easing of policy and institutional bottlenecks for

− Obtaining project approvals

− Accessing project funding and implementation partners

− Project implementation and monitoring

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ProjectsIdentification

forSagarmala

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Sagarmala Project Archetypes (1/3)

Project Theme

Port-ledindustrialization

Port basedurbanization

Ship building, shiprepair and recycling

Coastal communitydevelopment

Infrastructure development and maintenance projects in theindustrial area/estate near the ports

− E.g., Port-industry connectivity, setting up industrial estatesin port land

Green-field and Brown-field urbanization projects to promotestandards of living

− E.g., Developing port smart cities, water supply for urbanareas near the port

Infrastructure projects for ship building/breaking yards andmaritime clusters

− E.g., Water gates, setting up maritime clusters

Infrastructure and non-infrastructure projects related to coastalcommunity development

− E.g., Skill development and livelihood generation, health andsanitation projects

Port-ledDevelopment

Projects

Project Description and Examples*Project Archetype*

*Not Exhaustive

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Project Archetype*


Project Theme

Short-sea coastalshipping and inlandwaterwaystransportation

Logistics parks,warehousing, maritimezones/services

Integration withhinterland hubs

Infrastructure development and maintenance projects forpromoting coastal shipping/inland waterways

− E.g., Jetties for coastal shipping, maintenance dredging forinland waterways

Projects to improve the logistics infrastructure between the portsand hinterland hubs

− E.g., Logistics Parks and warehouses projects within the portarea or outside

Projects to integrate the ports to the hinterland industrial hubs

− E.g., Multimodal hubs along with road/rail/inland waterways,Inland Container Depot/Container Freight Station

Connectivity

Projects

Project Description and Examples*

*Not Exhaustive

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Project Theme Project Archetype*

Modernizing existingports and developmentof new ports

Specialization of portsin certain economicactivities such as energycontainers, chemicals,coal, agro products

Offshore renewableenergy projects withbase ports forinstallation

Offshore storage anddrilling platforms

Project Description and Examples*

Projects to enhance the existing port infrastructure and settingup of greenfield ports

− E.g., Strengthening of roads within port area, improvingmechanization of cranes, gantries, etc.

Infrastructure projects in ports to support specific industrydevelopments

− E.g., Effluent treatment plan for chemicals industry, RFIDprojects for containers

Renewable energy projects for the sustainable development ofthe ports and the associated coastal regions

− E.g., Solar and wind energy generation projects

Projects related to port ancillary services

− E.g., infrastructure for POL storage, Facilities for offshorebunkering

Port

Augmentation

Projects

*Not Exhaustive

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SENDCOMMENTS/SUGGESTION

[email protected]

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ProgressUpdate

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Progress Update: Coordination & Communication

Indian Port Rail Corporation has been incorporated on 10thJuly, 2015

Active engagement with the Maritime States for getting theirviews and suggestions

Engagement with Ministries dealing with infrastructuredevelopment including DIPP to align and synergize with theexisting infrastructure projects (e.g. industrial corridors,industrial parks etc.)

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Progress Update: NPP Preparation

National Perspective Plan [NPP] to be finalized by January 2016

OD Study for traffic forecast and potential for coastal shipping andinland waterways for key commodities (E.g. coal, POL, containers etc.)undertaken

Report on potential for setting up transshipment port developed

Benchmarking study undertaken to improve productivity, profitability,operational efficiency, and future prospects of Major Ports

Smart port city at Kandla and Paradeep

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Progress Update: Island Development & Skill Development

Development of Islands

− Interim report, on possible commercial & developmental activitiesin the islands, submitted to the Task Force on Holistic Developmentof Islands

− Action plan for development of 15-20 island lighthouses

−Ministry of Shipping in consultation with Ministry of Agriculture isevaluating potential for oil palm cultivation in islands off east coast

Skill Development in coastal area

− In association with Ministry of Skill Development and Ministry ofRural Development is being finalized

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Govt. of India - PwC · PDF filelives in coastal areas ... EXISTING INDUSTRIAL CLUSTERS IN MUMBAI ... Economic Regions & projects with synergies to Coastal Industrial Corridors

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