Year End Review – 2010 – Ports and Shipping


Steps to protect seafarers, acquisition of three new ships by SCI, setting up of four new lighthouses along with automation of 30 lighthouses, steps to set up National Maritime Complex, approval of Cruise Shipping Policy and declaration of new Waterways market the main activities of the Shipping Sector. The main developments were:

•The capacity on major ports has increased from 574.77 million tonnes as on 31st March, 2009 to 616.73 million tonnes as on 31st March, 2010.
•The Kolkata Port Trust completed the R&D Project on' Study of impact of Alluvial Meanders and Tributaries on Bhagirathi river' costing Rs. 19.88 crores.
•In the port sector an agreement for development of Container Terminal at Ennore Port at a cost of Rs. 1407.00 crores was signed during June, 2010.
•An agreement for construction of deep draft from one berth from Paradip Port at a cost of Rs. 597.35 crores was signed.
•An agreement for construction of deep draft berth for handling coal on BOT basis at a cost of Rs. 479.01 crores at Paradip Port was signed.
•The project on development of Mega Container Terminal at Chennai port on PPP basis at a cost of Rs. 3686.00 crores with a capacity of 4 million TEU's has been approved by the Government.
•Construction and Development of two berths namely EU-I and EU-1A have been approved for Visakhapatnam Port Trust which will add a capacity of around 14 MTPA under PPP mode.


For the Protection of Seafarers the Government has approved the establishment of the Indian Marine Casualty Investigation Cell. The objective of the Cell is to undertake investigation into marine causalities such as groundings, sinking or collision of vessels or death or grievous injury omission reports of seafarers. The cell would be empowered to:
(i) To conduct investigation into causes of shipping causalities.

(ii) Co-opt experts for the conduct of causality investigations.

(iii) Depute persons within and outside the country for casualty investigation and other related matters.

(iv) Publish reports of finding of casualty investigation in so far as its causes are concerned.

(v) Participate in national and international forum for investigation of marine accident related matters.



To boost Cruise Shipping in the country, Cochin Port in Kerala, New Mangalore Port in Karnataka, Chennai and Tuticorin Port in Tamilnadu and Mormugoa Port Trust in Goa have developed or are developing dedicated passenger cum-cruise terminals.



Cochin Shipyards Limited, Kochi achieved an all time high Net Profit of Rs. 223 Crores for the year 2009-10 as compared to Rs. 160 crores for the year 2008-09. It declared dividend of 10% on equity shares and 7% on preference shares for the year 2009-10. The yard signed a contract for 4 Platform Supply Vessels for M/s. Seatankers Management Company Ltd. Cyprus on 3rd September, 2010. It signed another contract for construction of 20 Fast Patrol Vessels for the Indian Navy on 20 October 2010. During the year 2010 the shipyard delivered 7 Platform Supply Vessels to owners in USA and Western Europe.



In the sphere of Inland Water Transport (IWT) two terminals respectively at Bolghaty Island and Willingdon Island in Cochin Port Trust area to provide connectivity between NW-3 and International Container Transshipment Terminal (ICCTT), Vallarpadam have been completed. These terminals will have LO-LO (Lift on - Lift off) and RO-RO (Roll on -Roll off) facilities.
o NTPC has given commitment for transportation of 3 million tonnes per annual of imported coal from Haldi/Sagar/Sandheads to Farakka by IWT mode for at least seven years. A joint Committee of senior officers of IWAI and NTPC has been constituted to develop and implement this project on PPP mode. In this process an EOL was published in Aug, 2010 which evoked encouraging response from prospective investors and subsequently IWAI and NTPSC are finalizing RFP and other documents to invite bids.

o Under Kaladan Multi project for which Inland Waterways Authority of India (IWAI) is Project Development Consultant (PDC) for Ministry of External Affairs, the bids for construction of port and IWT portion were invited by IWAI on behalf of MEA and work has been awarded by MEA to an Indian Private agency M/s ESSAR Projects (I) Pvt. Ltd. in May,2010

o In May,2010 Addendum to Indo-Bangladesh Protocol on Inland Water Transit and Trade has been signed thereby incorporating Ashuganj in Bangladesh and Silghat in India as new Ports of Call.



Shipping Corporation of India(SCI) - The Government approved issue of fresh equity of 10% by SCI and sale of 10% by SCI and sale of 10% of the existing Government shareholding in the domestic market as per SEBI regulations. The issue opened on 30 November 2010 and was oversubscribed several times. Rs.582.364 crores was raised by SCI/Government of India each. With the recent follow-up public offer, Government of India’s holding in SCI has come down to 63.75% from the existing 80.12%.


SCI proposes to acquire 62 vessels during 11th Plan as part replacement of its vessels scheduled for phase out the end of their economic life and also to enhance its capacity. SCI has so far taken delivery of 16 vessels during 11th Plan period, out of which 9 vessels were delivered during the current year i.e. 2010-11. SCI has placed orders for construction of another 33 vessels. Finance for these acquisitions will be arranged through domestic or international borrowings and the balance amount will be arranged through internal resources and the recently concluded equity issue.



To further International Cooperation and to strengthen cultural ties and also encourage trade and commerce between India and Sri Lanka a Memorandum of Understanding (MOU) for commencement of ferry services between Tuticorin and Colombo and between Rameswaram and Thalaimannar has been finalized and the proposal for signing of the MoU has been approved by the Govenment. The proposed ferry services would ensure mobility of people and increase trade, tourism and development activities.



To provide Aid to Navigation Two New Lighthouses at Mallapatnam and Pumpuhar and one DGPS station at Rameswaram (All in Tamil Nadu Coast) have been established in the year 2010. Work order for National Automatic identification system to cover the entire Indian Coast line, which will help also in the surveillance of the Indian Coast Line, has been placed. An amount of Rs. 99 crore has been collected as Light dues during the year up to November, 2010.


In the Port Sector, during the year 2009-10, 13 PPP projects were awarded at the Major Ports envisaging an amount of Rs. 265377 crore and a capacity of 65.65 MTPA. In addition, 6 PPP projects have so far been awarded in the current year till December, 2010. This private investment will inject Foreign Direct Investment into the port sector and will result in creation of additional capacity in the ports.



Ennore Port Ltd.(EPL) : The project of Development of Container Terminal with 1.5 TEU's capacity and costing Rs.1407 crores, on BOT basis has been approved by the Government and an agreement was signed on 13th August, 2010.



In order to improve connectivity, 18.3 Km four-lane Elevated Expressway from Chennai Port to Maduravoyal on National Highway 4 has been approved by the Government recently. Chennai-Ennore Port Road Connectivity of 29.3 Kms length with an estimated project cost of Rs.309 crores is also underway. 4-laning of Tuticorin-Madurai Road (NH 45 B) with road length of 144 Kms at an estimated cost of Rs.629 crores has been sanctioned, work awarded and Financial Close achieved in January, 2007 and scheduled to be completed by 2010. Doubling of Madurai-Dindigul Section of railway line connecting Tuticorin Port of 62.06 Kms. Length with estimated project cost of Rs.126 crores has been sanctioned and the work has been awarded. Ambaturai-Kodaikanal road doubling has been merged with his work.


Chartering: During the year 2010 ( January-December, 2010), the chartering Wing made shipping arrangement for and on behalf of Government Departments and PSUs for Cocking Coal, Fertilizers, Crude Oil, Iron Ore, Lime Stone besides project cargoes of 198.43 lakh MT



Besides making shipping arrangements for movement of cargoes, Chartering wing chartered an ice Breaker and an Expedition Vessel for National Centre for Antarctic and Ocean Research for the 30th Indian Antarctic Expedition.



During the year Chartering wing collected one percent Chartering Service Charges amount to Rs. 1.45 crores (January-December)

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