OVERVIEW

Around 90% of world trade is carried by the international shipping industry. Without shipping the import and export of goods on the scale necessary for the modern world would not be possible.

HOW SHIPPING IS REGULATED INTERNATIONALLY

Merchant shipping is one of the most heavily regulated industries and was amongst the first to adopt widely implemented international safety standards. The shipping industry is principally regulated by the International Maritime Organization (IMO),

INDIAN SHIPPING INDUSTRY

India presently has 938 ships totaling to approx.9.5 million GT Its Coastline is dotted with 12 Major ports and 187 intermediary ports Its fleet caters to only 13% of its overseas trade. This is very low, a fact which the Govt. has realized. 42% of Indian fleet is over 20years age and needs replacement

DIFFERENT TYPES OF SHIPS IN THE WORLD

FLEET

Different sectors as a percentage of total no of ships in the world fleet 2012

WORLD ROUTE

SWOT ANALYSIS
Strengths Weaknesses

Access to two major shipping routes. Fleet expansion by major domestic. shipping companies Large number of Indian seafarers.

Under investment in Indian maritime sector. Inefficient judiciary system slow development of new port infrastructure High level of bureaucracy preventing the government from funding the new projects.

Opportunities

Threats

Indian shipping companies have acquisitions with foreign companies. Major container terminal being developed at the port of Chennai and Mumbai.

Major development taking place in srilankas port. Indian ports have suffered from congestion, slowing countrys growth trajectory.

CHALLENGES AND STRATEGY

Tax Regime- Government of India, the shipping industry is facing significant tax burden, though the tonnage tax has been introduced. Multiplicity of Regulations- International Maritime Organisation has a set of rules to ensure safe, secure and efficient shipping, besides the labour standards required for seafarers worldwide.

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Manpower Shortage-The only way the shortage of seafarers can be managed is by creating a workplace environment that is attractive to applicants, and corporate values. High Port Calling Costs- High port charges, like port dues, berth hire, pilotage and cargo-handling charges, in India are also affecting the Indian shipping industry.

STRATEGIES
Increasing investment in shipping industryAround 50% of operating fleets in India has an average age of over 20 years. This makes Indian fleets less competitive, as mostly younger vessels, which are below 15 years old. Strengthening shipbuilding industry-An expanding shipbuilding industry would require a large trained work force, covering all areas in the techno-economic spectrum of shipbuilding. Developing adequate container freight stations

Creation of multimodal logistics parks-Another trend has been the establishment of multi-modal logistics parks. Each logistics park will have a container terminal for both domestic and international operations. Tapping LNG business- If transportation of LNG is taken up by the shipping industry, it would provide significant volume of business for the shipping industry. Bilateral shipping / cargo reservation schemes.

PORT INDUSTRY CHALLENGES

 Ports

provide an interface between the ocean transport and land-based transport. They represent a promising sector for India, given the countrys 7517 km long coastline.

West Coast of India Gujarat (41 ports) Maharashtra (55 Ports) Goa (6 ports) Daman & Diu (2 ports) Karnataka (11 ports) Kerala (14 ports) Lakshadweep Islands Total 139 (ports)

East Coast of India Tamil Nadu (18 Ports) Pondicherry (1 port) Andhra Pradesh (13 Ports) Orissa (3 ports) West Bengal (2 port) Andaman & Nicobar Islands (24 ports) Total 61 (ports)

PORT CHALLENGES
Limited draft of the Indian ports Old infrastructure Inefficient cargo handling. Hinterland connectivity Lack of skilled manpower

INDIA'S PORT SECTOR TRAFFIC GROWTH (IN MN. TONS)

SWOT ANALYSIS
Strengths Weaknesses

High growth Financial means available Most ports located at strategic locations

Old infrastructure Limited water depth Old and inefficient cargo handling systems Poor hinterland connections

Opportunities

Threats

Invest in infrastructure, lower costs for port users Invest in total transport chain

Private ports Minor ports Bureaucracy