MBA Aspirants are expected to know core Industry. This helps them to understand infrastructure base of India. Today, you will read on Indian shipping industry
India’s coastline stretches more than 7,000 km and since the country is at the crossroads of the Far East and the West, the waters around India are among the busiest in the world, giving way to a majority of the cargo ships that sail between Europe, Americas, Africa and East Asia.
There are over 200 ports in India, of which 12 are considered the busiest and major ports of India. And they are Kolkata, Paradip, Visakhapatnam, Chennai, Tuticorin, Kochi, New Mangalore Port, Mormugao, Mumbai, Jawaharlal Nehru Port, Ennore, and Kandla. These ports account for 58% of the total cargo shipped through the ports in India.
According to a report published by the Centre for Monitoring Indian Economy, these 12 ports handled 277 million tonnes of cargo between April and September this year, a 2.3% increase as compared to 2012, and this figure is expected to increase to 4% in 2013-2014.
The main commodities handled by the major ports are petroleum, oil, lubricants, and coal, and the freight volume of these goods is expected to increase in the years to come.
The largest shipping company in India is the Shipping Corporation of India, which owns and operates approximately one-third of the Indian tonnage and services both national and international lines. When the Shipping Corporation of India was established in 1961, it had a fleet of 19 vessels, but today, it has a fleet of 79 vessels of 5.9 million metric tonnes deadweight.
Other major shipping companies in India are the Great Eastern Shipping Company, Essar Shipping, Varun Shipping, and Global Offshore Services. The Shipping Corporation of India is the largest state-owned shipping enterprise whereas the Great Eastern Shipping Company is India’s largest private sector shipping company.
To enhance the attractiveness of the Indian shipping industry and to develop the maritime sector, the government of India has established the National Maritime Development Programme. The cost of developing the maritime sector is estimated at Rp 734 billion and the government of India has allowed foreign direct investments of up to 100% under the automatic route for projects pertaining to the construction and maintenance of ports.
Apart from the operation of ports, the shipping industry also looks into the construction of ships. According to Union Cabinet Minister of Shipping G K Vasan, India has the potential to be the next hub of the ship-building industry among the emerging economies. An 87% growth was witnessed in the tonnage capacity in the global shipping industry, and this growth will prove to be beneficial for ship manufacturers in India.
In August 2013, Cochin Shipyard launched INS Vikrant, the first aircraft carrier built in India. The launch of this indigenous aircraft carrier has provided India with a golden opportunity to join the elite club of countries that have the capability of constructing warships in the ‘over 35,000 tonnes class’.
The Indian shipping industry is not a standalone industry – it has an impact on the Indian Navy, Indian Air Force, and the oil and gas industry, to name a few. The Indian shipping industry is set to reach new heights in the coming years.
In fact, port traffic at both major and non-major ports is expected to increase between 2013 and 2014. Also, the cargo capacity in India is likely to increase from 1247.5 million tonnes in 2012 to 2301.6 million tonnes by 2017.