Road Map Report Inside Page

Roadmap on the development of

MARITIME CLUSTERS IN GUJARAT1

TABLE OF CONTENTS

Chapter 1: Introduction to Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.1. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.2. Introduction to Maritime Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.3. What is Maritime Cluster? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.4. Benefits of Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Chapter 2: Maritime Service Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.1. Major Service in Maritime Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2. Maritime Service Centers in Globally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2.1. Singapore Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.2.2. Dubai Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.2.3. Hong kong Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2.4. London Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.3. Maritime Services Centers in India and Gujarat . . . . . . . . . . . . . . . . . . . . . . . . . 8

Chapter 3: Proposed Maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.1. Need for Gujarat Maritime Cluster: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.2. Proposed maritime services in cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3. Development Approach for Proposed Maritime Cluster . . . . . . . . . . . . . . . . . . . . . 9

3.4. Proposed Location for maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.5. Proposed Structure of maritime Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.5.1. Role of Government (represented by GMB/GPIDCL): . . . . . . . . . . . . . . . . . . 10

3.5.2. Role of Cluster Members (Organised & Represented by

Maritime Cluster Organisation):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.5.3. Developers/Operator of infrastructure (represented by SPV): . . . . . . . . . . . . . 11

3.6. Way forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Chapter 4: Outcome of the Consultative Meeting. . . . . . . . . . . . . . . . . . . . . . . 13

4.1. EXPERIENCES OF DEVELOPING MARITIME CLUSTER ACROSS THE WORLD . . . . . . . . . . 13

4.2. BEST PRACTICES FOR DEVELOPMENT OF CLUSTER . . . . . . . . . . . . . . . . . . . . . . 14

4.3. FINANCING THE MARITIME CLUSTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4.4. GROWTH DRIVERS IN GUJARAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4.5. PROPOSED LOCATION OF THE CLUSTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Annexure 1: List of Attendees in the Consultative Meeting on 11th December 2014 . . . 17

TABLE OF CONTENTS


MARITIME CLUSTERS IN GUJARATRoadmap on the development of


CHAPTER 1 INTRODUCTION TO MARITIME CLUSTER

1.1. BACKGROUND

Despite the fact that Gujarat handles far more cargo throughput than any other State in India, there is no

distinct town or city in Gujarat with a strong maritime identity. The first private ports were established in Gujarat.

Gujarat is home to many more “firsts of its kind” landmark developments in the ports and infrastructure sector

in the country. However, when the term maritime hub is referred to, the only city in India that strikes attention is

possibly Mumbai. The reason for this could probably be attributed to the fact that Mumbai is the commercial

capital of India. But is this a sufficient reason for Mumbai to evolve as the maritime hub in India? Mumbai has in

fact been quick to leverage upon the opportunities that were derived out of port and port led development. Over

a period of time, Mumbai has witnessed development of a cluster of industries-organizations-entities

comprising of ancillary and auxiliary organizations related to ports and shipping. These support industries-

organizations-entities which comprise the “soft infrastructure” has provided impetus to the growth of maritime

sector.

1.2. INTRODUCTION TO MARITIME CLUSTERS

The maritime cluster approach is however not a new concept, though it is relatively new to India. The maritime

cluster approach forms an important component of many governments' policies, stretching from the UK to

Singapore to Australia and also the US. The cluster approach concerns “interconnected companies, specialised

suppliers, service providers, and firms in related industries”. Some of the most competitive ports (Rotterdam, 1Singapore, Hong Kong etc.) of the world are supported by their respective maritime clusters .

The total economic impact of maritime activities could be broken down into direct and indirect effects. Direct

effect considers the economic activity and jobs generated directly by the cluster. Indirect effects include the

jobs and demand created up and down the supply chain, as well as the consumption generated in the rest of the

economy.

Thus, the value and demand generated in the clusters trickles down through the overall economy to create

further jobs and demand, making the combined economic importance of an even greater nature than simply

direct activities. This has led to the realization that the full economic significance of maritime activities is not the

jobs at sea, but rather the derived employment and economic activities on shore.

Though maritime activities are international, the value they create remain to a large extent

domestically to benefit their hosts.

1.3. WHAT IS MARITIME CLUSTER?

Maritime Cluster can be broadly

defined as a group/ agglomeration /

collection of firms, institutions,

business and other industry players

in the maritime sector that are

geographically located close to each

other and enjoy positive synergy

between their activities.

Broadly, maritime clusters can be

divided into two major heads,

depending on the type of their

activities.

ShippingShip owners, Charterers, Brokers

RegulatorsClassification service,IMO, Government

Support ServicesMaritime Education, Research, Media, Manning Agencies

IntermediateServicesInsurers,Legal Advisors,Consultants,Bankers

IndustryAssociation

MARITIMECLUSTER

Figure : Major components of Maritime Cluster

1Please refer to “Paper on benchmarking of leading maritime clustersof the world and best practices in European Maritime cluster”.

1.4. BENEFITS OF CLUSTERS

The benefits from cluster dynamics are actively sought by some sectors in the cluster, such as maritime

services providers and marine equipment manufacturers, as well as related and supporting industries. In doing

so, they seek to locate themselves close to the 'core cluster area'. Further it is important to ensure that these

core companies can operate on a level playing field with their international competitors, so that they are not

driven to re-locate abroad due to cost and tax disadvantages in the cluster. For eg., Most of the operations of

Adani Group are based out of Gujarat. However, it is understood that for their chartering operations, they have

made base at Dubai which has a huge cluster of maritime activities.

Again, there are many firms in Gujarat which use chartering services available in Mumbai or Middle East. For

eg., Gujarat Ambuja Limited, Sanghi Cements or many trading houses could be examples of charterers with the

need for ship or vessel services. To fulfil that requirement, they approach a ship broker, who is actually a key

player in the shipping business. Although these companies are based in Gujarat, their operations are disperse

geographically. Since there is a limited availability of soft infrastructure related to shipping in Gujarat, port

users are not able to capitalise upon their businesses as much as they could do in a place like Mumbai or Dubai.

Important linkages and relationships exist within specific maritime sectors and across different sectors, for

example market for labour with maritime experience are shared across many levels in the clusters. Also

cooperation takes place in a number of areas such as innovation, image building and recruitment, as well as

lobbying activities. Other benefits include informal interactions, learning opportunities, and knowledge flows.

Major benefits of sector can be as follows:

1. It promotes positive synergies between the participating entities: Firms locate in a cluster because a

cluster environment holds advantages such as the proximity to customers and suppliers, existence of

positive externalities from investments by cluster actors, which facilitates the development and sharing

of specialized labour pools, knowledge, and information. These aspects of a cluster enhance dynamics

Shore Side Activities/Players (port based)

Ship Repair/ maintenance

Ship Building

Marine Equipment’s and offshore rigs

Port Management and terminal operators

Port based Industrial units / Axillary Units

Surveyors, ship chandlers, stevedores including Deep sea drivers & sub-sea operations.

Custom Clearing Agents

Port companies, marine infrastructure providers

Maritime Tourism

Logistics and Warehousing

Coastal Shipping

Industry specific associations/ Port users

Inland Activities/players (non-port/partial port based):

Maritime Education/ training

Research and development

Logistics and Cargo movers/Agencies

Maritime engineering/ Design

Ship Financing agencies/ Banks and Insurance agencies

Shipping lines: Container lines, tramp shipping companies

Maritime Law and Mercantile law firms

Exim Trades/ agents/ Commodity trades

Shipping agents including freight forwarders etc

Shipbrokers, ship operators, trading houses with chartering and shipping requirements and ship commercial managers, chemical traders, importers.

Marine outsourcing agencies – commercial and technical

Classification society, P & I clubs representatives

Current Project is planned only for these set of activities.

Table 1 : Broad classification of marine activities

2




CHAPTER 1 INTRODUCTION TO MARITIME CLUSTER

1.1. BACKGROUND

Despite the fact that Gujarat handles far more cargo throughput than any other State in India, there is no

distinct town or city in Gujarat with a strong maritime identity. The first private ports were established in Gujarat.

Gujarat is home to many more “firsts of its kind” landmark developments in the ports and infrastructure sector

in the country. However, when the term maritime hub is referred to, the only city in India that strikes attention is

possibly Mumbai. The reason for this could probably be attributed to the fact that Mumbai is the commercial

capital of India. But is this a sufficient reason for Mumbai to evolve as the maritime hub in India? Mumbai has in

fact been quick to leverage upon the opportunities that were derived out of port and port led development. Over

a period of time, Mumbai has witnessed development of a cluster of industries-organizations-entities

comprising of ancillary and auxiliary organizations related to ports and shipping. These support industries-

organizations-entities which comprise the “soft infrastructure” has provided impetus to the growth of maritime

sector.

1.2. INTRODUCTION TO MARITIME CLUSTERS

The maritime cluster approach is however not a new concept, though it is relatively new to India. The maritime

cluster approach forms an important component of many governments' policies, stretching from the UK to

Singapore to Australia and also the US. The cluster approach concerns “interconnected companies, specialised

suppliers, service providers, and firms in related industries”. Some of the most competitive ports (Rotterdam, 1Singapore, Hong Kong etc.) of the world are supported by their respective maritime clusters .

The total economic impact of maritime activities could be broken down into direct and indirect effects. Direct

effect considers the economic activity and jobs generated directly by the cluster. Indirect effects include the

jobs and demand created up and down the supply chain, as well as the consumption generated in the rest of the

economy.

Thus, the value and demand generated in the clusters trickles down through the overall economy to create

further jobs and demand, making the combined economic importance of an even greater nature than simply

direct activities. This has led to the realization that the full economic significance of maritime activities is not the

jobs at sea, but rather the derived employment and economic activities on shore.

Though maritime activities are international, the value they create remain to a large extent

domestically to benefit their hosts.

1.3. WHAT IS MARITIME CLUSTER?

Maritime Cluster can be broadly

defined as a group/ agglomeration /

collection of firms, institutions,

business and other industry players

in the maritime sector that are

geographically located close to each

other and enjoy positive synergy

between their activities.

Broadly, maritime clusters can be

divided into two major heads,

depending on the type of their

activities.

ShippingShip owners, Charterers, Brokers

RegulatorsClassification service,IMO, Government

Support ServicesMaritime Education, Research, Media, Manning Agencies

IntermediateServicesInsurers,Legal Advisors,Consultants,Bankers

IndustryAssociation

MARITIMECLUSTER

Figure : Major components of Maritime Cluster

1Please refer to “Paper on benchmarking of leading maritime clustersof the world and best practices in European Maritime cluster”.

1.4. BENEFITS OF CLUSTERS

The benefits from cluster dynamics are actively sought by some sectors in the cluster, such as maritime

services providers and marine equipment manufacturers, as well as related and supporting industries. In doing

so, they seek to locate themselves close to the 'core cluster area'. Further it is important to ensure that these

core companies can operate on a level playing field with their international competitors, so that they are not

driven to re-locate abroad due to cost and tax disadvantages in the cluster. For eg., Most of the operations of

Adani Group are based out of Gujarat. However, it is understood that for their chartering operations, they have

made base at Dubai which has a huge cluster of maritime activities.

Again, there are many firms in Gujarat which use chartering services available in Mumbai or Middle East. For

eg., Gujarat Ambuja Limited, Sanghi Cements or many trading houses could be examples of charterers with the

need for ship or vessel services. To fulfil that requirement, they approach a ship broker, who is actually a key

player in the shipping business. Although these companies are based in Gujarat, their operations are disperse

geographically. Since there is a limited availability of soft infrastructure related to shipping in Gujarat, port

users are not able to capitalise upon their businesses as much as they could do in a place like Mumbai or Dubai.

Important linkages and relationships exist within specific maritime sectors and across different sectors, for

example market for labour with maritime experience are shared across many levels in the clusters. Also

cooperation takes place in a number of areas such as innovation, image building and recruitment, as well as

lobbying activities. Other benefits include informal interactions, learning opportunities, and knowledge flows.

Major benefits of sector can be as follows:

1. It promotes positive synergies between the participating entities: Firms locate in a cluster because a

cluster environment holds advantages such as the proximity to customers and suppliers, existence of

positive externalities from investments by cluster actors, which facilitates the development and sharing

of specialized labour pools, knowledge, and information. These aspects of a cluster enhance dynamics

Shore Side Activities/Players (port based)

Ship Repair/ maintenance

Ship Building

Marine Equipment’s and offshore rigs

Port Management and terminal operators

Port based Industrial units / Axillary Units

Surveyors, ship chandlers, stevedores including Deep sea drivers & sub-sea operations.

Custom Clearing Agents

Port companies, marine infrastructure providers

Maritime Tourism

Logistics and Warehousing

Coastal Shipping

Industry specific associations/ Port users

Inland Activities/players (non-port/partial port based):

Maritime Education/ training

Research and development

Logistics and Cargo movers/Agencies

Maritime engineering/ Design

Ship Financing agencies/ Banks and Insurance agencies

Shipping lines: Container lines, tramp shipping companies

Maritime Law and Mercantile law firms

Exim Trades/ agents/ Commodity trades

Shipping agents including freight forwarders etc

Shipbrokers, ship operators, trading houses with chartering and shipping requirements and ship commercial managers, chemical traders, importers.

Marine outsourcing agencies – commercial and technical

Classification society, P & I clubs representatives

Current Project is planned only for these set of activities.

Table 1 : Broad classification of marine activities

2




such as cooperative rivalry, innovation pressures, and the establishment of trust relations between

cluster actors.

2. Significant economic impact: The total economic impact of maritime activities may be broken down into

direct and indirect effects. Direct benefits would be increased economic activity and jobs generated

directly by the cluster. Indirect effects include the jobs and demand created up and down the supply

chain, as well as the consumption generated in the rest of the economy. Thus, the value and demand

generated in the clusters trickles down through the overall economy to create further jobs and demand,

making the combined economic importance of an even greater nature than simply direct activities. This

has led to the realization that the full economic significance of maritime activities is not the jobs at sea,

but rather the derived employment and economic activities on shore.

3. Enhance competitiveness and growth in local maritime economy: Over the years and across the global

various maritime clusters have enhanced the competitiveness of their respective local economies.

London (UK) has been one such success stories. Maritime Business services contribute significantly in 2UK economy . It adds £ 1.5 bn to the GDP and also providing employment to 12,000 people; raising tax

revenues of £385 m and producing overseas earnings of £ 2nb in year 2011. About 200 shipbroking

firms operating in the UK generated net exports of £ 840m in 2011.

2“Maritime Business Services” Sept 2013, by theCITYUK research

3http://www.mpa.gov.sg/sites/business_and_enterprise/business_and_enterprise.page, accessed on 8th December 20144Excerpts from “Maritime Sector Development in Global Markets”, SmartComp Research Report No 3, October 2013

CHAPTER 2: MARITIME SERVICE SCENARIO

2.1. MAJOR SERVICE IN MARITIME INDUSTRY

Major services forming part of maritime Industry can be classified into following broad categories.

Training & Certification – Vessel Safety & Reliability, International Safety Management (ISM), International

Ship & Port Facility Security (ISPS) certification, statutory certification of Ships (National & International

Regulations), Environment Certifications, Training with Environment Focus, etc.

Maritime Trade – Commodity traders, Exporter/Importers, Trading Housing etc.

Maritime Law – Legal Advisors, Mercantile law firms, Compliance, arbitration etc.

Maritime Finance and Insurance - Insurers, Underwriters, Bankers, etc.

Consultancy – Reliability, Availability and Maintainability (RAM) Studies and Dependability Studies, Survey of

Vessels in Operations, Decommissioning, Third Party Audits & Monitoring, etc.

Marine Technical Assistance – Ship Designing, Debottlenecking Process, Optimizing Propeller & Shaft

Performance, Port Designing, Operation Systems, etc.

Equipment Manufacturers – Main Engine, Other Ancillary Equipment's, etc.

Research & Development Centre – Innovative Marine Technology, Engine, Equipment's, etc.

Dredging – Maintenance, New Dredging to accommodate bigger ships/vessels at Major Ports, etc.

Ship Building & Repairing – Ship yards for building Ships, Repairing, etc.

Ship Breaking & Re-Cycling – Breaking & Dis-mantling of obsolete ships, Recycling, etc.

Marine Universities & Institute – Colleges & Institutes with pre-defined curriculum producing seafarers

(Officers and Ratings), Maritime Health Services, etc.

Manpower Supply – Supply of Deck & Engineering officers, Ratings, etc.

Ports – Build & Operate, Maintenance, Resource Management, etc.

Logistics – Rail Linkages, Freight Corridors, Warehousing, Distribution Channels, etc.

2.2. MARITIME SERVICE CENTERS IN GLOBALLY

Some of the most competitive ports (Rotterdam, Singapore, Hong Kong etc.) of the world are supported by their

respective maritime clusters. Indian port users are currently using many of these International maritime

clusters for their current requirements. Indian maritime business is largely catered by maritime entities

operating from Dubai or Singapore.

2.2.1. SINGAPORE MARITIME CLUSTER

The Maritime industry in Singapore is home to more than 5,000 maritime establishments and

businesses'; contributing about seven percent to Singapore's Gross Domestic Product and provides jobs 3for more than more than 170,000 workers.

In the Singaporean cluster, companies from various sectors are represented such as shipping agents,

cruise lines and offshore companies. The core of the maritime cluster is the port of Singapore, being one

of the largest and most efficient container ports in the world and having a strategic location on the most

important seafaring routes within Asia and on the routes to and from Europe and America.

4Maritime leader firms PSA and NOL hail from the cluster . PSA, the Port of Singapore Authority, is a global

terminal operator with headquarters in Singapore and with 5 000 employees in 16 countries; Other

5




such as cooperative rivalry, innovation pressures, and the establishment of trust relations between

cluster actors.

2. Significant economic impact: The total economic impact of maritime activities may be broken down into

direct and indirect effects. Direct benefits would be increased economic activity and jobs generated

directly by the cluster. Indirect effects include the jobs and demand created up and down the supply

chain, as well as the consumption generated in the rest of the economy. Thus, the value and demand

generated in the clusters trickles down through the overall economy to create further jobs and demand,

making the combined economic importance of an even greater nature than simply direct activities. This

has led to the realization that the full economic significance of maritime activities is not the jobs at sea,

but rather the derived employment and economic activities on shore.

3. Enhance competitiveness and growth in local maritime economy: Over the years and across the global

various maritime clusters have enhanced the competitiveness of their respective local economies.

London (UK) has been one such success stories. Maritime Business services contribute significantly in 2UK economy . It adds £ 1.5 bn to the GDP and also providing employment to 12,000 people; raising tax

revenues of £385 m and producing overseas earnings of £ 2nb in year 2011. About 200 shipbroking

firms operating in the UK generated net exports of £ 840m in 2011.

2“Maritime Business Services” Sept 2013, by theCITYUK research

3http://www.mpa.gov.sg/sites/business_and_enterprise/business_and_enterprise.page, accessed on 8th December 20144Excerpts from “Maritime Sector Development in Global Markets”, SmartComp Research Report No 3, October 2013

CHAPTER 2: MARITIME SERVICE SCENARIO

2.1. MAJOR SERVICE IN MARITIME INDUSTRY

Major services forming part of maritime Industry can be classified into following broad categories.

Training & Certification – Vessel Safety & Reliability, International Safety Management (ISM), International

Ship & Port Facility Security (ISPS) certification, statutory certification of Ships (National & International

Regulations), Environment Certifications, Training with Environment Focus, etc.

Maritime Trade – Commodity traders, Exporter/Importers, Trading Housing etc.

Maritime Law – Legal Advisors, Mercantile law firms, Compliance, arbitration etc.

Maritime Finance and Insurance - Insurers, Underwriters, Bankers, etc.

Consultancy – Reliability, Availability and Maintainability (RAM) Studies and Dependability Studies, Survey of

Vessels in Operations, Decommissioning, Third Party Audits & Monitoring, etc.

Marine Technical Assistance – Ship Designing, Debottlenecking Process, Optimizing Propeller & Shaft

Performance, Port Designing, Operation Systems, etc.

Equipment Manufacturers – Main Engine, Other Ancillary Equipment's, etc.

Research & Development Centre – Innovative Marine Technology, Engine, Equipment's, etc.

Dredging – Maintenance, New Dredging to accommodate bigger ships/vessels at Major Ports, etc.

Ship Building & Repairing – Ship yards for building Ships, Repairing, etc.

Ship Breaking & Re-Cycling – Breaking & Dis-mantling of obsolete ships, Recycling, etc.

Marine Universities & Institute – Colleges & Institutes with pre-defined curriculum producing seafarers

(Officers and Ratings), Maritime Health Services, etc.

Manpower Supply – Supply of Deck & Engineering officers, Ratings, etc.

Ports – Build & Operate, Maintenance, Resource Management, etc.

Logistics – Rail Linkages, Freight Corridors, Warehousing, Distribution Channels, etc.

2.2. MARITIME SERVICE CENTERS IN GLOBALLY

Some of the most competitive ports (Rotterdam, Singapore, Hong Kong etc.) of the world are supported by their

respective maritime clusters. Indian port users are currently using many of these International maritime

clusters for their current requirements. Indian maritime business is largely catered by maritime entities

operating from Dubai or Singapore.

2.2.1. SINGAPORE MARITIME CLUSTER

The Maritime industry in Singapore is home to more than 5,000 maritime establishments and

businesses'; contributing about seven percent to Singapore's Gross Domestic Product and provides jobs 3for more than more than 170,000 workers.

In the Singaporean cluster, companies from various sectors are represented such as shipping agents,

cruise lines and offshore companies. The core of the maritime cluster is the port of Singapore, being one

of the largest and most efficient container ports in the world and having a strategic location on the most

important seafaring routes within Asia and on the routes to and from Europe and America.

4Maritime leader firms PSA and NOL hail from the cluster . PSA, the Port of Singapore Authority, is a global

terminal operator with headquarters in Singapore and with 5 000 employees in 16 countries; Other

5

leader firms are Singaporean Neptune Orient Line (NOL), being one of the largest container operators in

the world, and Keppel Offshore and Marine, one of the world's largest offshore oil rig builders. The

facilitator of the maritime cluster in Singapore is the Maritime Port Authority.

Major services operational in Singapore Cluster are

§ The Singapore registry of ships

§ Ship broking

§ Bunkering services

§ Marine insurance services

§ Shipping finance

§ Maritime legal & arbitration services

Cluster also has a dedicated fund “Maritime Cluster Fund”, which has three major components, under

which the funds are utilized.

§ MCF-Manpower Development co-funds maritime companies in the development of manpower,

training initiatives and capabilities.

§ MCF-Business Development supports eligible expenses incurred in the initial development of new

maritime companies and organisations setting up in Singapore, or existing maritime companies and

organisations expanding into new lines of maritime businesses.

§ MCF-Productivity, to support initiatives by the maritime industry that will lead to productivity gains

Table 2 : Major Business activity under Singapore Maritime Cluster

Year Vessel Arrival Container Cargo Bunker Sale Singapore Tonnage Throughput Throughput Volume Registry of Ships (billion GT) (Million TEUs) (Million Tonnes) (Million Tonnes) (Million GT)

1.78 25.9 472.3 36.4 45.62009

1.92 28.4 503.3 40.9 48.82010

2.12 29.9 531.2 43.2 57.42011

2.25 31.6 538.0 42.7 65.02012

2.33 32.6 557.5 42.5 73.62013

Source:

http://www.mpa.gov.sg/sites/global_navigation/news_center/mpa_news/mpa_news_detail.page?filename=nr1

40107a.xml, accessed on 8th December 2014

2.2.2. DUBAI MARITIME CLUSTER

Dubai's maritime cluster contribution to Dubai's GDP is about 4.6 % in 2013, equivalent to AED 14.4

billion (3.92 billion USD). It also played a pivotal role in creating over 75,000 job opportunities. 5

The maritime cluster of Dubai shows many similarities with the cluster of Singapore: it is state controlled,

has a strategic location as transhipment port for intra-Asian trade and trade from and to Europe and has

a major global terminal operator, DP World. In the future, Dubai Maritime City will host the whole

maritime cluster in Dubai on a new island to be built by offering top infrastructure, services and

regulations. The goal is to create an environment that will promote the networking and integration of

maritime players.

Idea is to support the development and clustering of maritime expertise in Dubai, Dubai World Group has

established a Dubai Maritime City, the world's first purpose-built city for the global maritime industry

community on a manmade peninsula. Dubai Maritime City with 227 hectares of reclaimed land

comprises industrial, operational, commercial, academic, residential and life-style activities and is to be

home to global maritime companies.

2.2.3. HONG KONG MARITIME CLUSTER

Hong Kong Maritime cluster contributes more than 25% of Hong Kong's GDP with Marine Insurance a 6major business activity. Hong Kong port currently supported by some 380 liner services a week; these

connect to some 550 destinations worldwide. The Hong Kong Shipping Register is the fourth-largest in

the world, with a total gross tonnage of 89 million. City's 700 shipping-related companies offer verity of

maritime services like ship management, broking and chartering, finance, marine insurance, maritime

law and arbitration, support shipping services etc.

Hong Kong offers a variety of marine insurance products and services and consequently has the highest

concentration of insurers in Asia. There are currently more than 150 sanctioned insurers here, with 88

of them authorised to provide marine and cargo insurance. This includes seven of the 13 protection and

indemnity clubs from the International Group of P&I Clubs – the largest cluster of P&I Club 7representatives outside London. In 2013, gross premiums of marine and cargo insurance amounted to

HK$2.1 billion, which is equivalent to US$260 million.

2.2.4. LONDON MARITIME CLUSTER

London, does not have a port with regional influence, but is recognised as an International Maritime

Centre (IMC) offering world class services in many other areas – notably legal and insurance services. It

is positioned well ahead of all other maritime centres as the number one location for professional,

intermediary and supporting services. Its unique history as a centre of world trade (in particular sea

trade) has contributed to its pre-eminence as a maritime centre in these areas.

It is estimated that the maritime services sector created approximately 262,700 jobs in 2011 or 0.8% of

total UK employment. The maritime services sector made an estimated £13.8 billion direct value-added

contribution to GDP in 2011, equivalent to 0.9% of the UK economy.

The maritime services sector directly generated nearly £2.7 billion for the UK Exchequer, through a

combination of taxes paid by both employees and firms in the industry. Including direct, indirect and

induced impacts, the maritime services sector is estimated to support 634,900 jobs, or 1 in every 50

jobs in the UK. Moreover, once these multiplier effects are accounted for, the sector makes a value

added contribution to GDP of £31.7 billion, equivalent to 2.1% of the UK economy.





5“Maritime Sector Development in Global Markets”, SmartComp Research Report No 3, October 2013

6Marine Insurance P&I Club News 23/09/20147highlights from the speech by the Chief Executive, Mr C Y Leung, at the opening ceremony of the International Union of Marine Insurance 2014 Hong Kong Conference

leader firms are Singaporean Neptune Orient Line (NOL), being one of the largest container operators in

the world, and Keppel Offshore and Marine, one of the world's largest offshore oil rig builders. The

facilitator of the maritime cluster in Singapore is the Maritime Port Authority.

Major services operational in Singapore Cluster are

§ The Singapore registry of ships

§ Ship broking

§ Bunkering services

§ Marine insurance services

§ Shipping finance

§ Maritime legal & arbitration services

Cluster also has a dedicated fund “Maritime Cluster Fund”, which has three major components, under

which the funds are utilized.

§ MCF-Manpower Development co-funds maritime companies in the development of manpower,

training initiatives and capabilities.

§ MCF-Business Development supports eligible expenses incurred in the initial development of new

maritime companies and organisations setting up in Singapore, or existing maritime companies and

organisations expanding into new lines of maritime businesses.

§ MCF-Productivity, to support initiatives by the maritime industry that will lead to productivity gains

Table 2 : Major Business activity under Singapore Maritime Cluster

Year Vessel Arrival Container Cargo Bunker Sale Singapore Tonnage Throughput Throughput Volume Registry of Ships (billion GT) (Million TEUs) (Million Tonnes) (Million Tonnes) (Million GT)

1.78 25.9 472.3 36.4 45.62009

1.92 28.4 503.3 40.9 48.82010

2.12 29.9 531.2 43.2 57.42011

2.25 31.6 538.0 42.7 65.02012

2.33 32.6 557.5 42.5 73.62013

Source:

http://www.mpa.gov.sg/sites/global_navigation/news_center/mpa_news/mpa_news_detail.page?filename=nr1

40107a.xml, accessed on 8th December 2014

2.2.2. DUBAI MARITIME CLUSTER

Dubai's maritime cluster contribution to Dubai's GDP is about 4.6 % in 2013, equivalent to AED 14.4

billion (3.92 billion USD). It also played a pivotal role in creating over 75,000 job opportunities. 5

The maritime cluster of Dubai shows many similarities with the cluster of Singapore: it is state controlled,

has a strategic location as transhipment port for intra-Asian trade and trade from and to Europe and has

a major global terminal operator, DP World. In the future, Dubai Maritime City will host the whole

maritime cluster in Dubai on a new island to be built by offering top infrastructure, services and

regulations. The goal is to create an environment that will promote the networking and integration of

maritime players.

Idea is to support the development and clustering of maritime expertise in Dubai, Dubai World Group has

established a Dubai Maritime City, the world's first purpose-built city for the global maritime industry

community on a manmade peninsula. Dubai Maritime City with 227 hectares of reclaimed land

comprises industrial, operational, commercial, academic, residential and life-style activities and is to be

home to global maritime companies.

2.2.3. HONG KONG MARITIME CLUSTER

Hong Kong Maritime cluster contributes more than 25% of Hong Kong's GDP with Marine Insurance a 6major business activity. Hong Kong port currently supported by some 380 liner services a week; these

connect to some 550 destinations worldwide. The Hong Kong Shipping Register is the fourth-largest in

the world, with a total gross tonnage of 89 million. City's 700 shipping-related companies offer verity of

maritime services like ship management, broking and chartering, finance, marine insurance, maritime

law and arbitration, support shipping services etc.

Hong Kong offers a variety of marine insurance products and services and consequently has the highest

concentration of insurers in Asia. There are currently more than 150 sanctioned insurers here, with 88

of them authorised to provide marine and cargo insurance. This includes seven of the 13 protection and

indemnity clubs from the International Group of P&I Clubs – the largest cluster of P&I Club 7representatives outside London. In 2013, gross premiums of marine and cargo insurance amounted to

HK$2.1 billion, which is equivalent to US$260 million.

2.2.4. LONDON MARITIME CLUSTER

London, does not have a port with regional influence, but is recognised as an International Maritime

Centre (IMC) offering world class services in many other areas – notably legal and insurance services. It

is positioned well ahead of all other maritime centres as the number one location for professional,

intermediary and supporting services. Its unique history as a centre of world trade (in particular sea

trade) has contributed to its pre-eminence as a maritime centre in these areas.

It is estimated that the maritime services sector created approximately 262,700 jobs in 2011 or 0.8% of

total UK employment. The maritime services sector made an estimated £13.8 billion direct value-added

contribution to GDP in 2011, equivalent to 0.9% of the UK economy.

The maritime services sector directly generated nearly £2.7 billion for the UK Exchequer, through a

combination of taxes paid by both employees and firms in the industry. Including direct, indirect and

induced impacts, the maritime services sector is estimated to support 634,900 jobs, or 1 in every 50

jobs in the UK. Moreover, once these multiplier effects are accounted for, the sector makes a value

added contribution to GDP of £31.7 billion, equivalent to 2.1% of the UK economy.






6Marine Insurance P&I Club News 23/09/20147highlights from the speech by the Chief Executive, Mr C Y Leung, at the opening ceremony of the International Union of Marine Insurance 2014 Hong Kong Conference






2.3. MARITIME SERVICES CENTERS IN INDIA AND GUJARAT

In India, most of the existing maritime clusters have developed organically (un-planned manner), with little or no

intervention from the government. This has led to highly fragment maritime industry and sub-optimal growth

over the years. At present, various small clusters exist such as:

1. Mumbai / JNPT: Maritime Education, Ship Repair, Ship Building, Container Cargo, Ship Finance, Ship

Owners etc.

2. Goa: Bulk port, Ship Building, Ship Repairs, marine tourism etc.

3. Kochi / Mangalore: Ship repairs, Ship building, container cargo, commodities trading centre, LNG, etc.

4. Chennai / Ennore / Tuticorin: Maritime Education, Marine Engineering, Shipowners base, Liquid Cargo.

Gujarat, and in particular Ahmedabad, has seen a substantial influx of shipping and marine related projects.

Several shipping lines have their offices in the city, including Maersk, Shell, etc to name a few. Lawyers like

Mulla and Mulla have offices here, while consulting & accounting firms like PwC, E & Y and industry associations

like FICCI & CII also have a presence here. We also have an example where a UK based leading maritime

consulting firm BMT Consultants India have chosen to operate from Ahmedabad as their Headquarters in India.

This is not surprising particularly when coupled with various incentives and the investor friendly policies of

Gujarat, current conditions provide excellent conditions for consolidating these geographically spread out and

disjoint units into one maritime cluster.

CHAPTER 3: PROPOSED MARITIME CLUSTER

3.1. NEED FOR GUJARAT MARITIME CLUSTER:

Due to high growth in trade, Indian shipping industry has grown many folds in the last few years. Indian shipping

industry now consists of several players including Government ports, private ports, shipowners, charterers,

brokers, forwarders, agents, ship chandlers, surveyors, manning agents, ship managers, ship operators,

maritime lawyers, shipping consultants, and several other service providers.

The maritime cluster model could be successful only when there is a co-existence of all essential or key

components comprising soft infrastructure as discussed earlier. In other words, it can be said that Gujarat does

not have the soft infrastructure like ship finance, chartering, ship brokering etc in place to complement the hard

infrastructure that GMB has created for facilitation of the trade.

3.2. PROPOSED MARITIME SERVICES IN CLUSTER

With the prime objective to bring maritime service industry within the state, it is proposed that we start with a

cluster for maritime services (also refer to table 1: highlighting Inland Activities list) in Gujarat. This cluster

would help in development of Gujarat as most competitive maritime hub in India and will also help in retaining

as well as expanding maritime trade within in the state.

Maritime services can be defined to include an interconnected supply chain that covers several distinct

activities like:

§ Shipping: Ship-owners; charterers and cargo interests; ship managers; shipbrokers; liner agencies

§ Intermediate Services: marine insurers (capital providers, insurance companies, underwriters/managing

agents; Lloyd's insurance brokers); bankers and accountants; technical consultants and surveyors; legal

advisers (lawyers, arbitrators etc)

§ Maritime Governance and Regulation: International Maritime Organisation and country representatives;

classification societies; insurance market; Exchanges; Government

§ Support Services: Commercial consultants and researchers; media firms/ publishers/conference

organisers; information and communication technology Economic Advantages of Maritime Clusters(ICT)

services; manning and recruitment agencies; maritime universities and colleges

§ Industry Associations: national and international sector representatives; unions.

3.3. DEVELOPMENT APPROACH FOR PROPOSED MARITIME CLUSTER

As evident from the Maritime Cluster development strategy of many developed countries in western world,

there are broadly two strategies that are employed based on need, local business environment, vision of the

government and level of coordination and cooperation within the maritime industry.

a. Top Down approach. (High Intervention approach)

Top-down approach maritime cluster organisations exist in Germany and Denmark. These two

organisations fund their activities with government budgets. The budgets of top-down maritime cluster

organisations are far higher than those of bottom-up maritime cluster organisations, because they

include the overall budgets of the government administration and Research Development & Innovation

(RDI) and/or maritime education programs as well.

One of the biggest challenges of top down approach is that it required greater involvement of

government and inter-departmental coordination between stakeholders in the development process.

b. Bottom-up approach (Low Intervention approach)

These bottom-up organisations (mainly financed by private means) have significantly lower budgets to

carry out their activities than top-down cluster organisations. Private funding, through membership

contributions, owns resources from activities and/or funds. Some of the largest clusters of this type are

in the Netherland, France and Sweden.






2.3. MARITIME SERVICES CENTERS IN INDIA AND GUJARAT

In India, most of the existing maritime clusters have developed organically (un-planned manner), with little or no

intervention from the government. This has led to highly fragment maritime industry and sub-optimal growth

over the years. At present, various small clusters exist such as:

1. Mumbai / JNPT: Maritime Education, Ship Repair, Ship Building, Container Cargo, Ship Finance, Ship

Owners etc.

2. Goa: Bulk port, Ship Building, Ship Repairs, marine tourism etc.

3. Kochi / Mangalore: Ship repairs, Ship building, container cargo, commodities trading centre, LNG, etc.

4. Chennai / Ennore / Tuticorin: Maritime Education, Marine Engineering, Shipowners base, Liquid Cargo.

Gujarat, and in particular Ahmedabad, has seen a substantial influx of shipping and marine related projects.

Several shipping lines have their offices in the city, including Maersk, Shell, etc to name a few. Lawyers like

Mulla and Mulla have offices here, while consulting & accounting firms like PwC, E & Y and industry associations

like FICCI & CII also have a presence here. We also have an example where a UK based leading maritime

consulting firm BMT Consultants India have chosen to operate from Ahmedabad as their Headquarters in India.

This is not surprising particularly when coupled with various incentives and the investor friendly policies of

Gujarat, current conditions provide excellent conditions for consolidating these geographically spread out and

disjoint units into one maritime cluster.

CHAPTER 3: PROPOSED MARITIME CLUSTER

3.1. NEED FOR GUJARAT MARITIME CLUSTER:

Due to high growth in trade, Indian shipping industry has grown many folds in the last few years. Indian shipping

industry now consists of several players including Government ports, private ports, shipowners, charterers,

brokers, forwarders, agents, ship chandlers, surveyors, manning agents, ship managers, ship operators,

maritime lawyers, shipping consultants, and several other service providers.

The maritime cluster model could be successful only when there is a co-existence of all essential or key

components comprising soft infrastructure as discussed earlier. In other words, it can be said that Gujarat does

not have the soft infrastructure like ship finance, chartering, ship brokering etc in place to complement the hard

infrastructure that GMB has created for facilitation of the trade.

3.2. PROPOSED MARITIME SERVICES IN CLUSTER

With the prime objective to bring maritime service industry within the state, it is proposed that we start with a

cluster for maritime services (also refer to table 1: highlighting Inland Activities list) in Gujarat. This cluster

would help in development of Gujarat as most competitive maritime hub in India and will also help in retaining

as well as expanding maritime trade within in the state.

Maritime services can be defined to include an interconnected supply chain that covers several distinct

activities like:

§ Shipping: Ship-owners; charterers and cargo interests; ship managers; shipbrokers; liner agencies

§ Intermediate Services: marine insurers (capital providers, insurance companies, underwriters/managing

agents; Lloyd's insurance brokers); bankers and accountants; technical consultants and surveyors; legal

advisers (lawyers, arbitrators etc)

§ Maritime Governance and Regulation: International Maritime Organisation and country representatives;

classification societies; insurance market; Exchanges; Government

§ Support Services: Commercial consultants and researchers; media firms/ publishers/conference

organisers; information and communication technology Economic Advantages of Maritime Clusters(ICT)

services; manning and recruitment agencies; maritime universities and colleges

§ Industry Associations: national and international sector representatives; unions.

3.3. DEVELOPMENT APPROACH FOR PROPOSED MARITIME CLUSTER

As evident from the Maritime Cluster development strategy of many developed countries in western world,

there are broadly two strategies that are employed based on need, local business environment, vision of the

government and level of coordination and cooperation within the maritime industry.

a. Top Down approach. (High Intervention approach)

Top-down approach maritime cluster organisations exist in Germany and Denmark. These two

organisations fund their activities with government budgets. The budgets of top-down maritime cluster

organisations are far higher than those of bottom-up maritime cluster organisations, because they

include the overall budgets of the government administration and Research Development & Innovation

(RDI) and/or maritime education programs as well.

One of the biggest challenges of top down approach is that it required greater involvement of

government and inter-departmental coordination between stakeholders in the development process.

b. Bottom-up approach (Low Intervention approach)

These bottom-up organisations (mainly financed by private means) have significantly lower budgets to

carry out their activities than top-down cluster organisations. Private funding, through membership

contributions, owns resources from activities and/or funds. Some of the largest clusters of this type are

in the Netherland, France and Sweden.





9GPIIDCL would be the nodal agency and would execute the project on behalf of GMB/ GoG

It is suggested that Gujarat Government can employ high intervention approach for development for proposed

maritime service cluster, based on following justification.

To initiate the migration of Maritime Service Providers (MSPs) to Gujarat, it is necessary to incentivise them.

This is only possible when proposed MSPs, are provided with significant financial as well as non-financial

incentives to shift their business to Gujarat, which has to be supported by the state government. Details of

these fiscal and non-fiscal incentives would be developed and suggested by consultant.

Domestic MSPs within Gujarat are at very nascent stage and it would be difficult for them remain competitive, if

government does not intervene to protect their interest.

Lastly, Gujarat Ports are in urgent need for required maritime services (“Soft Infrastructure”) to remain

competitive. Replying on low intervention approach (Bottom – Up approach) can create a delay in development

of these services as well as make the whole process very organic (“un-organised”/ unplanned).

3.4. PROPOSED LOCATION FOR MARITIME CLUSTER

One of the main reasons attributed to Mumbai, being the hub of maritime services and trade, is it being the

“financial capital” of the country. Proximity to financial and commercial market & trade is precondition for a

successful maritime cluster. City of London, Rotterdam, Hong Kong and Singapore are living examples of this

correlation.

Ambitious projects of the Government of Gujarat like the Gujarat International finance Tec-city (GIFT) city could

provide a very suitable platform for development of maritime service cluster. Close vicinity with Ahmedabad

would also fuel the growth of the proposed cluster.

GIFT would also be ideal place to locate the proposed cluster as GIFT city is being planned as international

financial hub with global standards in infrastructure, office space, internet and telephone connectivity and

lifestyle opportunities which would attract top talent. Apart from above, site is 12 KM from the Ahmedabad

International Airport and 8 KM from Gandhinagar.

As GIFT is being developed in a holistic manner, many of the proposed facilities like international convention

centres, International Techno Park & International Market Zone, Commodity Exchanges, Global trading

exchanges and Business Hotel, Shopping Centre, Retail Stores and Banks could be used by our cluster and lot

of cost & time saving can be achieved without duplicating the effort.

Above also goes well with the vision of our Honble Prime Minister's (then Gujarat's Chief Ministers) to make

“Ahmedabad as Maritime City of India”.

3.5. PROPOSED STRUCTURE OF MARITIME CLUSTER

There are three major players that would be involved in Development of Proposed Maritime Cluster. Following

section highlights major roles & responsibilities of various stakeholders of the proposed cluster.

9 3.5.1. ROLE OF GOVERNMENT (REPRESENTED BY GMB/GPIDCL ):

As the initiator of the project for larger “public good”, government would have to financial support the

project in initial stages and regulate/monitor the growth and functioning of the Proposed Maritime

Cluster. Throughout the project duration, government would be the important player in decision making

of the maritime cluster.

Further GMB would also employ a “Project Consultant”, to advice on feasibility, proposed PPP structure

and the financial and non-financial incentives required to promote competitiveness of proposed

maritime cluster in Gujarat. Consultant would also be mandated to formulate operational guidelines for

Maritime Cluster Organisation (MCO); which would be democratically elected body of cluster members.

He would also devise a strategy/plan to promote and market proposed cluster, so as to enhance its

visibility at national as well as at international level.

3.5.2. ROLE OF CLUSTER MEMBERS (ORGANISED & REPRESENTED BY MARITIME CLUSTER

ORGANISATION):

In order to optimise efficiency as well as to increase the level of business formations in the cluster, all

stakeholders should have an equal weight in the decision-making process within the maritime cluster

organisation (MCO). All members, irrespective of their business operations would be organised in

Sectorial Associations (SAs), which would be equally represented on board of MCO along with the

government (GMB). Representatives of both the SAs and MCO would be elected democratically for a

fixed duration with an overall objective to maximising business revenues in the proposed cluster.

Main tasks/ objectives of Maritime Cluster Organisation (MCO)

i. Develop a structure that provides clear solutions for cluster-issues (e.g. growth in maritime

services, labour market and innovation)

ii. Representative decision making body, which takes into account the interest of smallest members

under its jurisdiction.

iii. Plan and implement development of its cluster as per the guidance of state government and its

local stakeholders.

iv. To identify and support “local maritime leaders/ Business Champions”, who can bring new

business opportunities, innovation, Technology in its cluster region

v. Regular monitoring and impact evaluation of benefits to cluster members.

vi. Develop and pool resources at local level to address various interventions in the cluster.

3.5.3. DEVELOPERS/OPERATOR OF INFRASTRUCTURE (REPRESENTED BY SPV):

As developer of the project, Project SPV has to develop and maintain the maritime cluster. Government

would contribute in project with land as equity and may/may not give grant to support the capital cost of

developing the cluster infrastructure (Details would be finalised based on “project Consultant's” Detail

Project Report). PPP partner will charge all the operational expenses (and/or capital expenses in

scenario 2) to the tenants of MCO. Government would identify the PPP partner for the project as per

agreed terms & conditions of the agreement and sign a tripartite agreement with PPP partner and

Maritime Cluster Organisation.

Based on above, following is the proposed institutional structure proposed for the proposed maritime

cluster.

Figure 2 : Proposed Structure (as per Scenario 2) of Maritime Cluster at Gujarat

Government of Gujarat(Gujarat Maritime Board)

Nodal Agency GPIDCL

Maritime Cluster Organization PPP Partner (Developer & Operator)

Occupants of Maritime Cluster

Sector Associations (SA 1)

Unit 1 Unit 2 Unit n

Sector Associations (SA n)






9GPIIDCL would be the nodal agency and would execute the project on behalf of GMB/ GoG

It is suggested that Gujarat Government can employ high intervention approach for development for proposed

maritime service cluster, based on following justification.

To initiate the migration of Maritime Service Providers (MSPs) to Gujarat, it is necessary to incentivise them.

This is only possible when proposed MSPs, are provided with significant financial as well as non-financial

incentives to shift their business to Gujarat, which has to be supported by the state government. Details of

these fiscal and non-fiscal incentives would be developed and suggested by consultant.

Domestic MSPs within Gujarat are at very nascent stage and it would be difficult for them remain competitive, if

government does not intervene to protect their interest.

Lastly, Gujarat Ports are in urgent need for required maritime services (“Soft Infrastructure”) to remain

competitive. Replying on low intervention approach (Bottom – Up approach) can create a delay in development

of these services as well as make the whole process very organic (“un-organised”/ unplanned).

3.4. PROPOSED LOCATION FOR MARITIME CLUSTER

One of the main reasons attributed to Mumbai, being the hub of maritime services and trade, is it being the

“financial capital” of the country. Proximity to financial and commercial market & trade is precondition for a

successful maritime cluster. City of London, Rotterdam, Hong Kong and Singapore are living examples of this

correlation.

Ambitious projects of the Government of Gujarat like the Gujarat International finance Tec-city (GIFT) city could

provide a very suitable platform for development of maritime service cluster. Close vicinity with Ahmedabad

would also fuel the growth of the proposed cluster.

GIFT would also be ideal place to locate the proposed cluster as GIFT city is being planned as international

financial hub with global standards in infrastructure, office space, internet and telephone connectivity and

lifestyle opportunities which would attract top talent. Apart from above, site is 12 KM from the Ahmedabad

International Airport and 8 KM from Gandhinagar.

As GIFT is being developed in a holistic manner, many of the proposed facilities like international convention

centres, International Techno Park & International Market Zone, Commodity Exchanges, Global trading

exchanges and Business Hotel, Shopping Centre, Retail Stores and Banks could be used by our cluster and lot

of cost & time saving can be achieved without duplicating the effort.

Above also goes well with the vision of our Honble Prime Minister's (then Gujarat's Chief Ministers) to make

“Ahmedabad as Maritime City of India”.

3.5. PROPOSED STRUCTURE OF MARITIME CLUSTER

There are three major players that would be involved in Development of Proposed Maritime Cluster. Following

section highlights major roles & responsibilities of various stakeholders of the proposed cluster.

9 3.5.1. ROLE OF GOVERNMENT (REPRESENTED BY GMB/GPIDCL ):

As the initiator of the project for larger “public good”, government would have to financial support the

project in initial stages and regulate/monitor the growth and functioning of the Proposed Maritime

Cluster. Throughout the project duration, government would be the important player in decision making

of the maritime cluster.

Further GMB would also employ a “Project Consultant”, to advice on feasibility, proposed PPP structure

and the financial and non-financial incentives required to promote competitiveness of proposed

maritime cluster in Gujarat. Consultant would also be mandated to formulate operational guidelines for

Maritime Cluster Organisation (MCO); which would be democratically elected body of cluster members.

He would also devise a strategy/plan to promote and market proposed cluster, so as to enhance its

visibility at national as well as at international level.

3.5.2. ROLE OF CLUSTER MEMBERS (ORGANISED & REPRESENTED BY MARITIME CLUSTER

ORGANISATION):

In order to optimise efficiency as well as to increase the level of business formations in the cluster, all

stakeholders should have an equal weight in the decision-making process within the maritime cluster

organisation (MCO). All members, irrespective of their business operations would be organised in

Sectorial Associations (SAs), which would be equally represented on board of MCO along with the

government (GMB). Representatives of both the SAs and MCO would be elected democratically for a

fixed duration with an overall objective to maximising business revenues in the proposed cluster.

Main tasks/ objectives of Maritime Cluster Organisation (MCO)

i. Develop a structure that provides clear solutions for cluster-issues (e.g. growth in maritime

services, labour market and innovation)

ii. Representative decision making body, which takes into account the interest of smallest members

under its jurisdiction.

iii. Plan and implement development of its cluster as per the guidance of state government and its

local stakeholders.

iv. To identify and support “local maritime leaders/ Business Champions”, who can bring new

business opportunities, innovation, Technology in its cluster region

v. Regular monitoring and impact evaluation of benefits to cluster members.

vi. Develop and pool resources at local level to address various interventions in the cluster.

3.5.3. DEVELOPERS/OPERATOR OF INFRASTRUCTURE (REPRESENTED BY SPV):

As developer of the project, Project SPV has to develop and maintain the maritime cluster. Government

would contribute in project with land as equity and may/may not give grant to support the capital cost of

developing the cluster infrastructure (Details would be finalised based on “project Consultant's” Detail

Project Report). PPP partner will charge all the operational expenses (and/or capital expenses in

scenario 2) to the tenants of MCO. Government would identify the PPP partner for the project as per

agreed terms & conditions of the agreement and sign a tripartite agreement with PPP partner and

Maritime Cluster Organisation.

Based on above, following is the proposed institutional structure proposed for the proposed maritime

cluster.

Figure 2 : Proposed Structure (as per Scenario 2) of Maritime Cluster at Gujarat

Government of Gujarat(Gujarat Maritime Board)

Nodal Agency GPIDCL

Maritime Cluster Organization PPP Partner (Developer & Operator)

Occupants of Maritime Cluster

Sector Associations (SA 1)


Sector Associations (SA n)






To accommodate proposed cluster in GIFT city, project structuring has to conform to the business

framework of the Gujarat International Finance Tec-City Company Ltd (Promoters/ Developers of GIFT

city). GIFT offers real estate packages in the form of shell, furnished, plug and play or press and play

spaces. To facilitate developers, GUDC has been designated as the Single-Window Area Development

Authority. Consequently, following scenarios are possible and details of same would be finalised based

on consultant's recommendation.

Scenario 1: GMB as developer:

Under this scenario, GMB manages the land lease and develops (GMB can develop on its own or opt for

GIFT real estate packages) the building/infrastructure as per GMB's requirement at its own cost. All the

cluster members are formed into the Maritime Cluster Organisation (MCO) and are charged subsidised/

market rate rent for area/ facilities rented to them. Project SPV (MCO + GMB) can do ROM (Repair,

Operate & maintain) either on her own or Sub-let contact to third party.

Very competitive lease rentals (as incentive to migrate their business to Gujarat) can be offered by GMB,

as most of the capital cost will be borne by the government. Under this model, both GMB and SPV have

greater control over project dynamics and cluster members can offer more competitive pricing to the

port users in Gujarat.

Scenario 2: PPP partner as Developer:

Under this scenario, GMB transfers the land lease to PPP operator, who in turn will develop (PPP operator

can develop on its own or opt for GIFT real estate packages) the building/infrastructure as per their

requirement at its cost. All cluster members will formed into the MCO and are charged market rate rent

for area/ facilities rented to them by PPP operator. Later GMB can reimburse the cluster members by

subsidizing their rentals based on their business activity.

3.6. WAY FORWARD

Following is the list of major actions/ tasks that would be taken to materialise the project.

1) Undertaking the detailed feasibility report

2) Submission of project DPR to Government of Gujarat and consequent approval of the same.

3) Secure Government grants for the project and Initiate land transfer/ allotment to GMB at GIFT city to

undertake the project

4) Identify suitable cluster members and partners for development of maritime clusters and organise them

into a Maritime Cluster Organisation (MCO).

5) Identify appropriate private partner and enforce tripartite agreement between GMB, MCO and private

party.

6) Constant monitoring and impact evaluation of MCOs against the overall growth of maritime sector of the

state.

CHAPTER 4: OUTCOME OF THE CONSULTATIVE MEETING

A consultative meet was held on December 11, 2014 to discuss various aspects related to the development of the

proposed maritime cluster. Major observations and comments received from the sector leaders, foreign delegates,

academicians, corporates and policy makers in this meeting are listed in this chapter.

4.1. EXPERIENCES OF DEVELOPING MARITIME CLUSTER ACROSS THE WORLD

The representatives of the consultative meet from various nations discussed at length about the experiences of

developing a maritime cluster and its benefits to the economy and trade. Some of the case studies discussed

during the meet are presented below.

Maritime Cluster Norway:A significant aspect of the Norwegian cluster is that all the competitors are located in the geographical

vicinity. This promotes competition in real sense and brings the best out of everyone. The cluster is the real

reason for excelling of the maritime ship building.

Imabari Maritime Cluster, Japan:In Japan, the cluster focusses on the maritime shipping and shipbuilding. . Imabari is a city where numerous

shipbuilding, shipping, and ship-related industries are concentrated together. Imabari is a small maritime

cluster that houses Imabari shipyard which is one of the leading companies in the ship building industry. The

government of Japan also supports research and development activities under this cluster

For overseas marine transport, of the 2,742 Japanese overseas oceanliners, 830 ships or 30% are owned by

shipowners in Imabari. There are 14 shipyards for building ships, constructing 17% of the ships built

domestically. This geographical concentration of the shipbuilding industries has helped immensely in

achieving growth in the industry. As a result of such initiatives, Japan is one of the leaders of the shipbuilding

industry with more than 20% share of the shipbuilding industry of the world.

Maritime Cluster in the Netherlands: 11,500 companies are active in the maritime cluster of the Netherlands. Government and education

institutes are also a part of the maritime cluster. The specialization is an important part for the technology

innovation and the Netherland's maritime cluster has been focusing on specialized services. Golden Triangle

Model has been adopted with three major attributes as Government, Education Institutes and Maritime

Companies. These attributes work hand in hand and any change in any one of the attribute affects the

functioning of the cluster as a whole and eventually the maritime industry.

Dubai Maritime Cluster: The Dubai maritime cluster started in the background of trading business. Being proactive in understanding

the needs of the industry, the government supported the infrastructure development and consequently the

cluster has grown manifold over the years. While developing the cluster, the best practices and trends around

the world were constantly studied and a strategy to replicate/ introduce similar initiative was made. The

education institutes and the industry standards were constantly updated to match the developments

happening in the maritime sector around the world. Another strategy was to encourage business initiatives

and entrepreneurship in the local economy. The awareness about the logistics and shipping opportunities is

very important and there were agencies involved in educating the school students about the potential

opportunities in the sector, so that they are aware about the industry at an early stage itself.





To accommodate proposed cluster in GIFT city, project structuring has to conform to the business

framework of the Gujarat International Finance Tec-City Company Ltd (Promoters/ Developers of GIFT

city). GIFT offers real estate packages in the form of shell, furnished, plug and play or press and play

spaces. To facilitate developers, GUDC has been designated as the Single-Window Area Development

Authority. Consequently, following scenarios are possible and details of same would be finalised based

on consultant's recommendation.

Scenario 1: GMB as developer:

Under this scenario, GMB manages the land lease and develops (GMB can develop on its own or opt for

GIFT real estate packages) the building/infrastructure as per GMB's requirement at its own cost. All the

cluster members are formed into the Maritime Cluster Organisation (MCO) and are charged subsidised/

market rate rent for area/ facilities rented to them. Project SPV (MCO + GMB) can do ROM (Repair,

Operate & maintain) either on her own or Sub-let contact to third party.

Very competitive lease rentals (as incentive to migrate their business to Gujarat) can be offered by GMB,

as most of the capital cost will be borne by the government. Under this model, both GMB and SPV have

greater control over project dynamics and cluster members can offer more competitive pricing to the

port users in Gujarat.

Scenario 2: PPP partner as Developer:

Under this scenario, GMB transfers the land lease to PPP operator, who in turn will develop (PPP operator

can develop on its own or opt for GIFT real estate packages) the building/infrastructure as per their

requirement at its cost. All cluster members will formed into the MCO and are charged market rate rent

for area/ facilities rented to them by PPP operator. Later GMB can reimburse the cluster members by

subsidizing their rentals based on their business activity.

3.6. WAY FORWARD

Following is the list of major actions/ tasks that would be taken to materialise the project.

1) Undertaking the detailed feasibility report

2) Submission of project DPR to Government of Gujarat and consequent approval of the same.

3) Secure Government grants for the project and Initiate land transfer/ allotment to GMB at GIFT city to

undertake the project

4) Identify suitable cluster members and partners for development of maritime clusters and organise them

into a Maritime Cluster Organisation (MCO).

5) Identify appropriate private partner and enforce tripartite agreement between GMB, MCO and private

party.

6) Constant monitoring and impact evaluation of MCOs against the overall growth of maritime sector of the

state.

CHAPTER 4: OUTCOME OF THE CONSULTATIVE MEETING

A consultative meet was held on December 11, 2014 to discuss various aspects related to the development of the

proposed maritime cluster. Major observations and comments received from the sector leaders, foreign delegates,

academicians, corporates and policy makers in this meeting are listed in this chapter.

4.1. EXPERIENCES OF DEVELOPING MARITIME CLUSTER ACROSS THE WORLD

The representatives of the consultative meet from various nations discussed at length about the experiences of

developing a maritime cluster and its benefits to the economy and trade. Some of the case studies discussed

during the meet are presented below.

Maritime Cluster Norway:A significant aspect of the Norwegian cluster is that all the competitors are located in the geographical

vicinity. This promotes competition in real sense and brings the best out of everyone. The cluster is the real

reason for excelling of the maritime ship building.

Imabari Maritime Cluster, Japan:In Japan, the cluster focusses on the maritime shipping and shipbuilding. . Imabari is a city where numerous

shipbuilding, shipping, and ship-related industries are concentrated together. Imabari is a small maritime

cluster that houses Imabari shipyard which is one of the leading companies in the ship building industry. The

government of Japan also supports research and development activities under this cluster

For overseas marine transport, of the 2,742 Japanese overseas oceanliners, 830 ships or 30% are owned by

shipowners in Imabari. There are 14 shipyards for building ships, constructing 17% of the ships built

domestically. This geographical concentration of the shipbuilding industries has helped immensely in

achieving growth in the industry. As a result of such initiatives, Japan is one of the leaders of the shipbuilding

industry with more than 20% share of the shipbuilding industry of the world.

Maritime Cluster in the Netherlands: 11,500 companies are active in the maritime cluster of the Netherlands. Government and education

institutes are also a part of the maritime cluster. The specialization is an important part for the technology

innovation and the Netherland's maritime cluster has been focusing on specialized services. Golden Triangle

Model has been adopted with three major attributes as Government, Education Institutes and Maritime

Companies. These attributes work hand in hand and any change in any one of the attribute affects the

functioning of the cluster as a whole and eventually the maritime industry.

Dubai Maritime Cluster: The Dubai maritime cluster started in the background of trading business. Being proactive in understanding

the needs of the industry, the government supported the infrastructure development and consequently the

cluster has grown manifold over the years. While developing the cluster, the best practices and trends around

the world were constantly studied and a strategy to replicate/ introduce similar initiative was made. The

education institutes and the industry standards were constantly updated to match the developments

happening in the maritime sector around the world. Another strategy was to encourage business initiatives

and entrepreneurship in the local economy. The awareness about the logistics and shipping opportunities is

very important and there were agencies involved in educating the school students about the potential

opportunities in the sector, so that they are aware about the industry at an early stage itself.

4.2. BEST PRACTICES FOR DEVELOPMENT OF CLUSTER:

The best practices as discussed during the consultative meet are presented below.

Strategy for planning a Maritime Cluster:

§ It is important to identify the core areas of the strength/ specialization and focus on these selected areas in

the initial period. The cluster is an evolving concept. It may start with the strength areas, but gradually, it

would need to improvise to provide opportunities and facilitate other industries as well. Generally a cluster

development is a time consuming initiative.

§ A cluster would always be linked to the ports in some way or another, even if it is situated far from the port.

For example, the services industry like chartering, shipbuilding, ship brokerage etc. would always have

some interface directly/ indirectly with the ports. For a cluster to sustain and excel, the transportation

linkages to the port and from the port to hinterland is very important.

§ The institute responsible for the development of the cluster should be very nimble in changing the strategy

based on the international trends in the maritime industry. The standards and norms adopted for the

maritime industry should be updated regularly so that they are always in sync with the present trends and

need of the industry.

§ For a cluster to flourish, the necessary infrastructure like ports, transportation links and urban areas need

to be planned together from the conceptualization stage itself. The policies related to these areas should be

planned parallel to each other and the incentives should be in sync. The social infrastructure and physical

infrastructure should also be well integrated at the initial stage itself.

§ In order to promote the development of the cluster in the initial phase, a set of incentives in terms of the

taxes, duties, policy incentives etc. should be provided for the industries forming the cluster.

§ India has more charterers than the Ship Owners. Hence, the approach for the Indian shipping industry

should be different and should be more towards the port centric than the ship-owners centric approach

adopted in other parts of the world.

§ Hub & Spoke Model: Based on international maritime clusters it was suggested that Clusters can be

organised at two levels ( as explained in table 1) .

¡ Central Cluster (Hub): For services which need larger catchment and can be delivered from off-Shore

location (away from ports/Shipyards), it was advised that a central cluster near larger urban centre can

be developed. Many maritime Services like, Marine Finance, Brokering, commodity trading, marine

insurance, legal services, Chartering etc. can be made operation from cluster of this type.

¡ Local Clusters (Spokes): These specialized clusters are planned around major port or Shipyard, which

works/ support these main entities. These clusters would function for local needs and would be linked

with central clusters for greater needs.

Local Initiatives:

§ The education courses should be regularly updated to match the need of the skill-set in the maritime

professional.

§ The awareness about the logistics and shipping opportunities should be spread to the people at young age

to make them aware about the opportunities in the sector.

§ The integration of the regulations/ clearances for various port and port related industries should be

attempted. The simplification of the regulations should be attempted for creating ease of doing business in

the state.

§ It was opined that the business would grow on itself, if the government is able to bring all the stakeholders

together. If the stakeholders including various government departments are brought together, they would

create an enabling environment. A Gujarat Maritime Forum should be created for providing a platform for

various players of the industry to interact.

Industry/ Sub-sector Specific:

§ Shipyards: For shipyard to survive, an intervention of the state and central government is required. Ship-

building and recycling is a cyclical business and it is difficult for any firm to survive at present. A joint

discussion of state and central agencies should be carried out with the financial institutions in order to

frame a model of financing that provides sufficient moratorium period to the industry to stabilize.

4.3. FINANCING THE MARITIME CLUSTER

§ Various financing models were suggested for supporting maritime cluster organization. It was suggested

that GMB can also adopt Norwegian model for Cluster funding where revenue from the cluster is derived

from various sources like.

¡ Membership fee from the Cluster members

¡ Government Support (as part of minimum guarantee for first 3 years)

¡ Project Consultancy fee

¡ Co-financing the project with members like ship-owners

§ The Dutch model of crowd funding was adopted to finance the Rotterdam Maritime Cluster.

§ In order to develop a Maritime Cluster, the Government needs to influence the entire ecosystem by

leveraging its investment. Some of the ways suggested are listed below:

¡ Increasing the amount of capital for Investment and giving priority to activities identified as critical to the

development of a maritime cluster. Some of the common ways adopted are public investment/ grants,

co-invest in programmes on PPP basis, setting up a Venture Fund to promote private initiative etc.

¡ A tax credit for investors investing in maritime cluster projects could be announced.

¡ Some of the policy initiatives should aim at capacity building, creation of enabling infrastructures

through creation of an SPV to implement common infrastructure & services for the Cluster. A Project

Development Fund could also be created to fund project preparation for the Cluster.

¡ A Maritime Trading Exchange which deals in futures and derivatives could also be set up in the State.

4.4. GROWTH DRIVERS IN GUJARAT:

Earlier, the Charting services were available only in Mumbai and to get the required services from Mumbai was

time consuming and often resulted in delays. Development of a cluster in the state would facilitate the business

of Gujarat and would boost the overall shipping business.

Chartering business has flourished in Dubai region. Dubai also serves a part of the demand of chartering

services from Gujarat and India. While Gujarat has a large port and related infrastructure, the service sector

has not been developed to match the same. A maritime cluster would help develop the services industry to

catalyze the port sector development.

A large amount of ship building orders are expected from the defense sector of India and if the capacity of the

Indian ship building and recycling industry is geared up, much of this demand could be met in-house and a

maritime cluster could play a vital role in creating the require capacity.

With large developments happening in the petro-chemical sector, Gujarat has potential for becoming a hub for

bunkering. LNG is another sector where the Gujarat could continue its dominance.

The ongoing make in India initiative by the central government and the proposed Delhi-Mumbai Industrial

corridor can be capitalized and leveraged upon acting as a major push factor for maritime cluster formation in

Gujarat.

It was opined by various experts present at the meet that Gujarat has all the ingredients required to form a

cluster. Only a change in the perception is required to focus equally on the services sector as the other

ecosystem is already available. Branding and encouragement from government would also be required at the

initial stage for the cluster to become a reality.





4.2. BEST PRACTICES FOR DEVELOPMENT OF CLUSTER:

The best practices as discussed during the consultative meet are presented below.

Strategy for planning a Maritime Cluster:

§ It is important to identify the core areas of the strength/ specialization and focus on these selected areas in

the initial period. The cluster is an evolving concept. It may start with the strength areas, but gradually, it

would need to improvise to provide opportunities and facilitate other industries as well. Generally a cluster

development is a time consuming initiative.

§ A cluster would always be linked to the ports in some way or another, even if it is situated far from the port.

For example, the services industry like chartering, shipbuilding, ship brokerage etc. would always have

some interface directly/ indirectly with the ports. For a cluster to sustain and excel, the transportation

linkages to the port and from the port to hinterland is very important.

§ The institute responsible for the development of the cluster should be very nimble in changing the strategy

based on the international trends in the maritime industry. The standards and norms adopted for the

maritime industry should be updated regularly so that they are always in sync with the present trends and

need of the industry.

§ For a cluster to flourish, the necessary infrastructure like ports, transportation links and urban areas need

to be planned together from the conceptualization stage itself. The policies related to these areas should be

planned parallel to each other and the incentives should be in sync. The social infrastructure and physical

infrastructure should also be well integrated at the initial stage itself.

§ In order to promote the development of the cluster in the initial phase, a set of incentives in terms of the

taxes, duties, policy incentives etc. should be provided for the industries forming the cluster.

§ India has more charterers than the Ship Owners. Hence, the approach for the Indian shipping industry

should be different and should be more towards the port centric than the ship-owners centric approach

adopted in other parts of the world.

§ Hub & Spoke Model: Based on international maritime clusters it was suggested that Clusters can be

organised at two levels ( as explained in table 1) .

¡ Central Cluster (Hub): For services which need larger catchment and can be delivered from off-Shore

location (away from ports/Shipyards), it was advised that a central cluster near larger urban centre can

be developed. Many maritime Services like, Marine Finance, Brokering, commodity trading, marine

insurance, legal services, Chartering etc. can be made operation from cluster of this type.

¡ Local Clusters (Spokes): These specialized clusters are planned around major port or Shipyard, which

works/ support these main entities. These clusters would function for local needs and would be linked

with central clusters for greater needs.

Local Initiatives:

§ The education courses should be regularly updated to match the need of the skill-set in the maritime

professional.

§ The awareness about the logistics and shipping opportunities should be spread to the people at young age

to make them aware about the opportunities in the sector.

§ The integration of the regulations/ clearances for various port and port related industries should be

attempted. The simplification of the regulations should be attempted for creating ease of doing business in

the state.

§ It was opined that the business would grow on itself, if the government is able to bring all the stakeholders

together. If the stakeholders including various government departments are brought together, they would

create an enabling environment. A Gujarat Maritime Forum should be created for providing a platform for

various players of the industry to interact.

Industry/ Sub-sector Specific:

§ Shipyards: For shipyard to survive, an intervention of the state and central government is required. Ship-

building and recycling is a cyclical business and it is difficult for any firm to survive at present. A joint

discussion of state and central agencies should be carried out with the financial institutions in order to

frame a model of financing that provides sufficient moratorium period to the industry to stabilize.

4.3. FINANCING THE MARITIME CLUSTER

§ Various financing models were suggested for supporting maritime cluster organization. It was suggested

that GMB can also adopt Norwegian model for Cluster funding where revenue from the cluster is derived

from various sources like.

¡ Membership fee from the Cluster members

¡ Government Support (as part of minimum guarantee for first 3 years)

¡ Project Consultancy fee

¡ Co-financing the project with members like ship-owners

§ The Dutch model of crowd funding was adopted to finance the Rotterdam Maritime Cluster.

§ In order to develop a Maritime Cluster, the Government needs to influence the entire ecosystem by

leveraging its investment. Some of the ways suggested are listed below:

¡ Increasing the amount of capital for Investment and giving priority to activities identified as critical to the

development of a maritime cluster. Some of the common ways adopted are public investment/ grants,

co-invest in programmes on PPP basis, setting up a Venture Fund to promote private initiative etc.

¡ A tax credit for investors investing in maritime cluster projects could be announced.

¡ Some of the policy initiatives should aim at capacity building, creation of enabling infrastructures

through creation of an SPV to implement common infrastructure & services for the Cluster. A Project

Development Fund could also be created to fund project preparation for the Cluster.

¡ A Maritime Trading Exchange which deals in futures and derivatives could also be set up in the State.

4.4. GROWTH DRIVERS IN GUJARAT:

Earlier, the Charting services were available only in Mumbai and to get the required services from Mumbai was

time consuming and often resulted in delays. Development of a cluster in the state would facilitate the business

of Gujarat and would boost the overall shipping business.

Chartering business has flourished in Dubai region. Dubai also serves a part of the demand of chartering

services from Gujarat and India. While Gujarat has a large port and related infrastructure, the service sector

has not been developed to match the same. A maritime cluster would help develop the services industry to

catalyze the port sector development.

A large amount of ship building orders are expected from the defense sector of India and if the capacity of the

Indian ship building and recycling industry is geared up, much of this demand could be met in-house and a

maritime cluster could play a vital role in creating the require capacity.

With large developments happening in the petro-chemical sector, Gujarat has potential for becoming a hub for

bunkering. LNG is another sector where the Gujarat could continue its dominance.

The ongoing make in India initiative by the central government and the proposed Delhi-Mumbai Industrial

corridor can be capitalized and leveraged upon acting as a major push factor for maritime cluster formation in

Gujarat.

It was opined by various experts present at the meet that Gujarat has all the ingredients required to form a

cluster. Only a change in the perception is required to focus equally on the services sector as the other

ecosystem is already available. Branding and encouragement from government would also be required at the

initial stage for the cluster to become a reality.





4.5. PROPOSED LOCATION OF THE CLUSTER:

A geographical centric area should be chosen for the cluster with good access to ports as well as demand

centers. The transportation linkages of the cluster with the key ports should be excellent. The cluster should

have international representation as well.

Ahmedabad is located in the central area of Gujarat and has good connectivity with the ports as well as the

hinterland of the port. The city is also well connected through air. Surat could be another potential location for

the maritime cluster as it also has a geographical concentration of many ports. At present, Mumbai is well

connected to some of the south Gujarat ports as compared to Ahmedabad. With this cluster, the maritime

services could be developed in the state itself.

ANNEXURE 1

LIST OF ATTENDEES IN THE CONSULTATIVE MEETING ON 11TH DECEMBER 2014

S. No. Name Designation and Organization

1 Mr. A.K. Rakesh, IAS VC&CEO, Gujarat Maritime Board

2 Mr. Masahiro Uesono Director for the Office of International Affairs, Shipbuilding and Ship Machinery Division; Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism

3 Mr. Pankaj Naik Senior Vice President, ABG Shipyard

4 Mr.Helge Grobæk Manager of Maritime Forum South of Norway and the Sørlandet Shipowners Association, Norwegian Maritime Cluster

5 Prof. Raghuram Faculty, Indian Institute Management (IIM), Ahmedabad.

6 Mr. Mitsuhiko IDA Deputy Director for International Affairs, Shipbuilding and Ship Machinery Division, Maritime Bureau

7 Mr. Tomohito Takeuchi Director, Shipbuilding Division, JETRO Singapore

8 Dr. (Capt.) S. Bhardwaj Resident Director, Maritime Training and Research Foundation, Chennai

9 Mr. Krishna Prasad Managing Director, Aster Marine, Dubai & Education Officer, Institute of Chartered Shipbrokers, Dubai branch

10 Capt. Unmesh Abhiyankar COO, Adani Port & SEZ Ltd.

11 Mr. Palash Srivastava Director - IDFC

12 Mr. Shardul Thacker Partner, Mulla & Mulla & Craigie Blunt Caroe

13 Mr. Amit Oza Astramar Management Consultancy FZE, UAE

14 Mr. K. K. Sinha Director, Essar Ports Ltd.

15 Mr. Hitendra Solanki Vice President, Swan Energy

16 Dr. M.S. Sharma Vice Chancellor, Ganpat University

17 Mr. Job Glass Chief Representative, Netherlands Business Support Office


19 Mr. Ashish Joshi Senior General Manager, ABG Shipyard

20 Capt. Naveen Karn General Manager, Marine Operations, Ultratech

21 Mr. Suren Vakil Managing Director, BMT Consultant

22 Mr. Sharad Sarangdharan Project Manger, GPIDCL

23 Mrs. Mansi Junnarkar Gujarat Maritime Board

24 Mr. Jatin Patel Gujarat Maritime Board

25 Mr. Sagar Vyas Gujarat Maritime Board





4.5. PROPOSED LOCATION OF THE CLUSTER:

A geographical centric area should be chosen for the cluster with good access to ports as well as demand

centers. The transportation linkages of the cluster with the key ports should be excellent. The cluster should

have international representation as well.

Ahmedabad is located in the central area of Gujarat and has good connectivity with the ports as well as the

hinterland of the port. The city is also well connected through air. Surat could be another potential location for

the maritime cluster as it also has a geographical concentration of many ports. At present, Mumbai is well

connected to some of the south Gujarat ports as compared to Ahmedabad. With this cluster, the maritime

services could be developed in the state itself.

ANNEXURE 1

LIST OF ATTENDEES IN THE CONSULTATIVE MEETING ON 11TH DECEMBER 2014

S. No. Name Designation and Organization

1 Mr. A.K. Rakesh, IAS VC&CEO, Gujarat Maritime Board

2 Mr. Masahiro Uesono Director for the Office of International Affairs, Shipbuilding and Ship Machinery Division; Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism


4 Mr.Helge Grobæk Manager of Maritime Forum South of Norway and the Sørlandet Shipowners Association, Norwegian Maritime Cluster

5 Prof. Raghuram Faculty, Indian Institute Management (IIM), Ahmedabad.

6 Mr. Mitsuhiko IDA Deputy Director for International Affairs, Shipbuilding and Ship Machinery Division, Maritime Bureau

7 Mr. Tomohito Takeuchi Director, Shipbuilding Division, JETRO Singapore

8 Dr. (Capt.) S. Bhardwaj Resident Director, Maritime Training and Research Foundation, Chennai

9 Mr. Krishna Prasad Managing Director, Aster Marine, Dubai & Education Officer, Institute of Chartered Shipbrokers, Dubai branch

10 Capt. Unmesh Abhiyankar COO, Adani Port & SEZ Ltd.

11 Mr. Palash Srivastava Director - IDFC

12 Mr. Shardul Thacker Partner, Mulla & Mulla & Craigie Blunt Caroe

13 Mr. Amit Oza Astramar Management Consultancy FZE, UAE

14 Mr. K. K. Sinha Director, Essar Ports Ltd.

15 Mr. Hitendra Solanki Vice President, Swan Energy

16 Dr. M.S. Sharma Vice Chancellor, Ganpat University

17 Mr. Job Glass Chief Representative, Netherlands Business Support Office


19 Mr. Ashish Joshi Senior General Manager, ABG Shipyard

20 Capt. Naveen Karn General Manager, Marine Operations, Ultratech

21 Mr. Suren Vakil Managing Director, BMT Consultant

22 Mr. Sharad Sarangdharan Project Manger, GPIDCL

23 Mrs. Mansi Junnarkar Gujarat Maritime Board

24 Mr. Jatin Patel Gujarat Maritime Board

25 Mr. Sagar Vyas Gujarat Maritime Board





Snapshots of the Consultative Meet organised by the Gujarat Maritime Board on 11 December, 2014 at the Hotel Courtyard by Marriot, Ahmedabad















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