The maritime sector in India has made significant progress over the past year. Numerous measures have been introduced to augment capacity at Indian ports, improve port governance and enhance port efficiency.
Indian Infrastructure looks at some of the key developments in the ports and shipping sector over the past year…
Government impetus
- Under the Union Budget 2024-25, the Ministry of Ports, Shipping and Waterways has received an allocation of Rs 23.77 billion. This allocation is 7.12 per cent higher than the budget estimate of Rs 22.19 billion for FY 2023-24. Funds worth Rs 7 billion have been earmarked for the Sagarmala programme, the ministry’s flagship scheme to promote port-led development in the country.
- In October 2023, the central government launched the Maritime Amrit Kaal Vision 2047, the long-term blueprint for the Indian maritime blue economy. It aims to quadruple port capacity to 10,000 million tonnes per annum (mtpa) and get 100 per cent public-private partnership for 12 major ports in the country.
- Other key initiatives of the government include the launch of the Strategic Actions to Aid Growth and Rewards scheme; digital modules within the Sagar Setu platform (National Logistics Portal – Marine) including the maritime single window and the Mercantile Maritime Department; Harit Nauka guidelines; and a river cruise tourism roadmap, for which the MoPSW announced an investment worth Rs 450 billion.
Increasing capacity at Indian ports
- As of March 2024, under the Sagarmala Programme, 262 projects worth Rs 1.4 trillion have been completed, while 217 projects worth Rs 1.65 trillion are under implementation and 360 projects worth Rs 2.7 trillion are under development.
- Several new projects were also inaugurated during the past one year. Notable projects include the Capital Dredging Project Phase V at Kamarajar port; general cargo berth II (automobile export/import Terminal II) under the Master Plan Project Phase III for Kamarajar port; a land port at Sabroom in Tripura; a dry port in Jalna, Maharashtra; and augmentation of facilities at Kakinada port, including the construction of wharves and dredging of commercial canals and approach channels. Further, trial operations began on the Vizhinjam International Container Transhipment Terminal Project Phase I.
- Foundation stones were laid for various projects, including the revamping of the western quay (WQ)-6 berth and mechanisation of WQ-7, WQ-8 and eastern quay-7 berths at Visakhapatnam port; a third container terminal and the development of the outer harbour container terminal, including dredging and construction of a breakwater at V.O. Chidambaranar Port; and a fourth container terminal and the upgradation of the Jawaharlal Nehru Port container terminal. Additinally, foundation stone was laid for Vadhavan port in August 2024. The union cabinet approved the project in June 2024. The project, with a capacity of 298 mtpa and 9.87 million twenty-foot equivalent units, will cost approximately Rs 762.2 billion.
Financial developments
- Nalanda Capital divested a 1.4 per cent stake in Great Eastern Shipping Company Limited for Rs 1.9 billion through an open market transaction in May 2024.
- Adani Ports and Special Economic Zone Limited entered into a definitive agreement for the acquisition of a 95 per cent stake in Gopalpur Port Limited in March 2024. The acquisition is expected to be completed by March 2025 at an estimated cost of Rs 13.49 billion, with an enterprise value of Rs 30.8 billion.
- In December 2023, JSW Dharamtar Port Private Limited signed a share purchase agreement to acquire 50 per cent plus one share of PNP Maritime Services Private Limited from SP Port Maintenance Private Limited for Rs 27 billion.
Shipping scenario
- In February 2024, India’s first indigenously developed and built hydrogen fuel cell ferry was launched in Cochin. Further, in January 2024, a new dry dock at Cochin Shipyard Limited and its International Ship Repair Facility were inaugurated.
- In December 2023, the Indian Ministry of Defence signed a contract with Mazagon Dockyard Shipbuilders Limited to procure six next-generation offshore patrol vessels for the Indian Coast Guard.
- In November 2023, three ships (in a series of eight anti-submarine warfare shallow water crafts) were simultaneously launched at a shipyard in Kochi.
Progress of inland water transport
- In June 2024, the Indian Register of Shipping (IRS) and the Uttar Pradesh Transport Department signed an MoU to establish the Uttar Pradesh Inland Waterways Authority. The IRS will assist the state government in formulating the entity and developing relevant rules based on the Inland Waterways Authority of India [IWAI] Act, 2021 and IWAI Rules 2022.
- In February 2024, projects worth Rs 3.08 billion were launched for the northeastern region. These include a passenger-cum-cargo terminal at Bogibeel near Dibrugarh, an inland water transport terminal (IWT) at Sonamura in Tripura and upgraded terminals at Karimganj and Badarpur in Assam. Additionally, the Kalughat IWT terminal and two community jetties in Bettiah, Bihar, were inaugurated in the same month. In October 2023, dredging works at NW-44 (Ichamati river) were inaugurated.
