India: Shipping – Year End Review 2011 by Ministry of Shipping

by OldSailor on December 31, 2011

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Here is the reproduction of Year End Review 2011 of Shipping released by the Ministry of Shipping, India (Released through Press Information Bureau, Release ID: 79210 dated 26 December 2011).

Maritime Agenda 2010-20 Launched
Fund Requirement for Shipping Sector Projected Rs. 90,519 Crore in 12th Plan
India Sri Lanka Ferry Service Launched
Government Identifies 23 Projects to Increase Ports Capacity by 236.63 MTPA

Year End Review

1. Maritime Agenda for the decade 2010-2020:

The Ministry of Shipping has launched Maritime Agenda 2010-20 in January, 2011. The Agenda is a perspective plan of the Ministry for this decade and gives a visit and road map for comprehensive development of the maritime sector. The overall vision of the Ministry as per the Maritime agenda aims towards navigating and steering the Indian Maritime sector realistically into the premier maritime nations of the world. This document basically presents an agenda in the Shipping Sector for consideration within overall objective to increase efficiency of the delivery system and overall pace of growth in the sector. Indeed, this is a path breaking document which will serve as road map for all ports (major as well as non-major ports) and the shipping sector during the decade 2010-2020

2. 12th Five Year Plan (2012-2017):

The Planning Commission constituted a Working Group on Shipping & Inland Water Transport for the formulation of Twelfth Five Year Plan 2012-17 under the Chairmanship of Secretary (Shipping). The Working Group in its report submitted to the Planning Commission has recommended the fund requirement of Rs.90,519 crores for the Shipping sector which includes Rs.10,499.00 crores as GBS, Rs.2340.00 crores State Govt. Funding and Rs. 77,680 as private investment/IEBR as per details given below:

(Rs. In crores)

Sr. No. Major Head of Expenditure GBS State Govts. Private Investment/

IEBR

Total
1 Ship Acquisition

-

-

60,000

60,000

2 Restructuring of the Regulatory Regime

546

-

-

546

3 DG (Shipping)

150

-

-

150

4 IMU

1,280

-

-

1,280

5 Training & Welfare

828

-

-

828

6 Seafarers Safety

30

-

-

30

7 Coastal Shipping

2,835

1,200

12,360

16,395

8 Multimodal Transport

-

-

-

-

9 Lighthouses & Lightships

790

-

-

790

10 IWT

4,040

1,140

5,320

10,500

Total

10,499

2,340

77,680

90,519

3. Shipping Corporation of India:

The Shipping Corporation of India Ltd. (SCI), a Navratna company is the largest shipping company in India, owns a fleet of 81 vessels of 33 lakhs gross tonnage (GT) i.e. 58 lakhs DWT with a share of nearly 1/3rd of the total Indian tonnage. During the 11th Plan SCI proposed to acquire 62 vessels at a cost of approximately Rs.13,000 crores out of which they have taken delivery of 26 vessels so far. Out of the 62 vessels proposed for acquisition during the 11th Plan, they have placed orders for construction of 36 vessels with different shipyards and have acquired 3 Resale vessels. Except for the last two years (i.e. 2009-10 and 2010-11) when SCI’s profit was affected due to the global economic crisis, the SCI has been making profit of over Rs.800 crores for each of the previous 5 years i.e. from 2004-05 to 2008-09. SCI declared a profit of Rs.567.35 crores for the year (2010-11) ended March, 2011 and declared a final dividend of 25% on the paid up share capital in addition to the interim dividend of 30% paid during financial year 2010-11.

4. Cochin Shipyard Limited:

Year at a Glance:

2011-12 (April- November, 2011)

Delivered 3 Platform Supply Vessels.

Launched 2 Anchor Handling Tug Supply Vessels for Shipping Corporation of India on 19th July 2011.

500 T SWL Bollard Pull Testing Facility set up by Cochin Shipyard at Vizhinjam was dedicated to the Nation on 23 September 2011.

Financial Performance of CSL:

Cochin Shipyard continued its stellar performance for the fifth year in a row. The turnover for the year 2010-11 was Rs.1461.72 Crores as compared to Rs.1416.92 Crores in the last year. The net profit for the year 2010-11 was Rs.227.53 Crores as compared to Rs.223.04 Crores for the last year. This performance is creditable especially in the light of the withdrawal of government subsidy to shipbuilding since August 2007.

5. Central Inland Water Transport Corporation (CIWTC):

The principal activity of the Corporation is transportation of cargo by barges through Inland Waterways in the country and through the routes identified in the Protocol on Inland Water Transport between India and Bangladesh.

The Corporation also operates and maintains the biggest IWT terminals in the country i.e. T. T. Sheds at Kolkata apart from the terminals at Karimganj and Badarpur in Assam.

6. Major Achievements of CIWTC During The Year 2011 – 12:

During this year, agreements with regard to 11 (eleven) vessels of the Corporation for Bare Boat charter hire for 5 (five) years (+ extendable by 5 years) period have been signed. One number Oil Tanker – M.T. Naharkatia put on bare boat charter and the agreement would be signed shortly.

7. Directorate General of Lighthouses & Lightships:

Following schemes in the financial year 2011-2012 are under implementation:-

Establishment of Vessel Traffic Service in Gulf of Kachchh at a cost of Rs. 165 Crore. Establishment of National AIS Network (Rs.75.20 crore).

Automation of Lighthouses in Cochin, Chennai, Vishakhapatnam & Kolkata Lh Distt. (Rs.30.45 Crore).

Automation of Lighthouses in Port Blair Lighthouse district.

(Rs.6.52 crore).

Establishment of new Lighthouses at Chilka (Orissa Coast),

Rava (Andhra Coast), Barua (Andhra Coast), Maipura

(Orissa Coast), Markanam.

Establishment of five lighted beacons in A&N Islands.

Presently Directorate General holds inventory of 185 General Lighthouses, 1 Lightship, 23 Differential Global Positioning System (DGPS), 64 Radar Beacons (Racons), 21 Deep Sea Lighted Buoys & 2 Wreck Marking Buoys.

8. Inland Water Transport:

The development and maintenance of National waterways (NWs)1,2, & 3 (the Ganga, the Brahmaputra and the West Coast Canal) by providing/ upgrading/ maintaining Inland Water Transport (IWT) infrastructure namely fairway, navigational aids and terminals were continued by Inland Waterways Authority of India (IWAI).

An important highlight of 2011-12 was selection of a private agency for developing infrastructure and transportation of 3 million tonne per year of imported coal from Sagar/ Sandheads to Farakka power plant of NTPC Ltd through inland waterways for a period of 7 years and signing of Tripartite Agreement among IWAI, NTPC Ltd and Jindal ITF Ltd in August 2011 thereof. Success of this project may pave way for many other such projects which could revive the IWT sector on Ganga and Brahmaputra rivers.

Another significant activity was transportation of project cargo by inland waterways (through Bangladesh) for ONGC’s Palatana powerplant in Tripura which became possible due to declaration of Ashuganj as a new port of call under Indo-Bangladesh Protocol on inland water transit trade.

The proposal to use an alternative route bypassing Core Area of Sunderbans Tiger Reserve. This route has been made operational w.e.f 1st June, 2011, within a short span of 5 months. Besides helping in the preservation of the flora and fauna of the unique biosphere reserve of the Sunderbans, it will prevent poaching; illegal infiltration and facilitate enhanced vigil on Indo-Bangladesh border by Border Security Force.

Ro-Ro terminals at Wilingdon island and Bolghatty in Cochin Port Trust area to provide connectivity between NW-3 and International Container Transhipment Terminal, Vallarpadam commissioned in February, 2011. On an average, about 250 containers (TEUs) are being moved per day through this facility

In order to ensure safety of navigation in NW-1 & NW-2, DGPS stations are already established in Bhagalpur in NW-1 and Jogighopa in NW-2. New stations are being commissioned at Swaroopganj and Patna in NW-1 and Silghat and Dibrugarh in NW-2 shortly.

Under Kaladan Multimodal Transit Transport Project in Myanmar, construction of Sittwe port is in progress through an Indian contractor (M/s Essar Projects (I) Pvt Ltd). The IWT and Port components are targeted to be completed by June, 2013.

9. India Sri Lanka Ferry Service:

Pursuant to a Memorandum of Understanding (MoU) signed between India and Sri Lanka on 07 Janaury, 2011 in Colombo for commencement of passenger transportation by sea between the two countries, passenger ferry service between Tuticorin and Colombo has been started w.e.f. 13.06.2011.

10. Port Sector:

Government has identified 23 projects for award during to increase the capacity of ports by 236.63 MTPA (Million Tons per annum) with an estimated investment of Rs. 16,743.92 Crores under PPP mode.

A project for development of 4th Container Terminal on BOT basis was awarded to M/s PSA Mumbai Investment Pvt. Ltd. on 26th September, 2011.

A draft report of Working Group for Port Sector for the Twelfth Five Year Plan (2012-17) was sent to the Planning Commission on 3rd November, 2011 for consideration and approval.

Regarding Rail-road connectivity to Ports: The work of 18.3 Kms four-lane Elevated Expressway from Chennai Por4t to Maduravoyal on National Highway 4 is in progress. The work of Chennai-Ennore Port Road Connectivity of 29.3 Kms has been started in June, 2011. The work of 4-laning of Tuticorin-Madurai Road (NH-45B) with road length of 144 Kms has been completed. The 2-lane Port Connectivity to ICTT, Vallarpadam, Cochin has been completed and work of 4-lane connectivity is on near completion.

The work of Haridaspur-Paradip new railway line is in progress and likely to be completed by march, 2015. For Mormugao Port, doubling of Hospect-Vsasco Section rail-line, work is likely to be started.

11. India Maritime 2012:

In line with the fast pace development of Indian maritime sector and further developments required by Indian Ports for handling future cargo traffic, the Ministry of Shipping and Federation of Indian Chamber of Commerce & Industry(FICCI) jointly propose to conduct a mega event for the first time in the port sector titled “India Maritime-2012” during 17-20 October, 2012 at Goa. This event will provide a platform to shipping lines and organizations involved in the port infrastructure and management, cargo handling, ship builders and manufacturers, ancillary suppliers and other related service providers to showcase their capabilities.

12. Corporate Social Responsibility (CSR) for Major Ports:

Taking into account the economic, social and environmental impact of activities of the Major Ports on the society and the environment, 12 major ports in the country have been directed to create a mandatory CSR budget setting apart a certain part of their net profit every year towards activities mentioned in possible areas as at Annexure.

13. Multi User Liquid Terminal (MULT) project at Cochin Port Trust:

The Cochin Port Trust handles general, dry bulk cargo, fertilizers and oil cargo. The Ernakulam Wharf have 5 berths(Q5,Q6,Q7,Q8 & Q9) handling general and dry bulk cargo, Q10 handles fertilizers and three oil berths viz. Cochin Oil Terminal(COT), Non Tanker Berth(NTB) and South Tanker Berth(STB). Crude oil is being handled at the Single Point Mooring (SPM) facility provided by Bharat Petroleum Corporation Ltd.(BPCL)-Kochi Refineries(KR) and at Cochin Oil Terminal(COT). Petroleum Oil and Lubricants(POL) products are presently handled at COT Non Tanker Berth(NTB) and South Tanker Berth(STB). To avail deep water facilities, the Port is presently developing new facilities at Vallarpadam and Puthuvypeen area which have been declared as Port based Special Economic Zones(SEZ). The facilities which are recently developed/being developed include i) development of International Container Transshipment Terminal(ICTT) at Vallarpadam SEZ, (ii) development of Tank Farms at Puthuvypeen SEZ area for storage of crude oil received at the SPM and (iii) development of captive Liquefied Natural Gas Port and Regasification Terminal by M/s Petronet LNG Limited. In order to cater to these developmental plans, a Multi User Liquid Terminal(MULT) project at Cochin Port is under consideration.

Annexure

POSSIBLE AREAS OF ACTIVITIES UNDER CSR

(THE LIST IS INDICATIVE AND NOT EXHAUSTIVE)

(i) Drinking Water Facility.

(ii) Education.

(iii) Electricity Facility.

(iv) Solar Lighting System.

(v) Health and Family Welfare.

(vi) Irrigation Facilities.

(vii) Sanitation and Public Health.

(viii) Pollution Control Measures.

(ix) Animal Care.

(x) Promotion of Sports and Games including promotion of marinas.

(xi) Promotion of Art and Culture.

Environment Friendly technologies

Promotion of livelihood for economically weaker sections through forward and backward linkages.

Relief to victims of Natural Calamities like earthquake, cyclone, drought & flood situation in any part of the country.

Supplementing Development Programmes of the Government.

Non-conventional energy sources.

Construction of Community Centres/Night Shelters/Old Age Homes.

Imparting Vocational Training.

Setting up of skill development centres.

Adoption of Villages.

Taking action on points suggested by Ministry of Forest and Environment pertaining to Charter of Corporate Responsibility for Environment Protection for 17 categories of Industries.

Scholarships to meritorious students belonging to SC, ST, OBC and disabled categories.

Adoption/Construction of Hostels (especially those for SC/ST and girls).

Skill training, entrepreneurship development and placement assistance programmes for youth.

Building of Roads, Pathways and Bridges.

Entrepreneurship Development Programme (EDP).

Disaster Management Activities including those related to amelioration/mitigation.

Activities related to the preservation of Environment/Ecology and to sustainable Development.

MG/AS

(Release ID :79210)

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