Govt.

of India

Sagarmala Program
Presentation by
A.K. Saran, Deputy Secretary 1
Importance of India’s Coastal Regions & Maritime Sector (1/4)

“Our coastal area can be a channel

for global trade…”
– Hon’ble Prime Minister of India, Maiden Speech to Parliament
2
Importance of India’s Coastal Regions & Maritime Sector (2/4)

“Maritime infrastructure and shipping will play a pivotal

role in India’s economic engagement with the rest of
the world. India is blessed with one of the longest
coastlines located in the most strategic global trade
routes. Harnessing it will generate rich economic
dividend to the country.”
– Hon’ble Minister of Shipping, Road Transport and Highways
3
 STRING OF PORTS IN INDIA
Kandla

Kolkata

Paradip
Mumbai Dhamra
JNPT
Jaigad Visakhapatnam

Mormugao Andaman & Nocobar

Krishnapatnam
Islands
Kamarajar
N. Mangalore

Chennai
Cochin
Laksha- Dwwep
V.O. Chidambarnar

4
4 4
Importance of India’s Coastal Regions & Maritime Sector (3/4)

Significance of
India’s Coastal
Regions
~7,500km of coastline spanning 13
maritime States and Union Territories

~20% of India’s population

lives in coastal areas

Contribution of Maritime States to Indian GDP:

~60% (as of 2012-13)

SOURCE: MOSPI, Census of India, IBEF, Secondary Research 5

Importance of India’s Coastal Regions & Maritime Sector (4/4)

Significance of
Indian Maritime India has12 major ports
Sector and about 200 non-major ports

~95% of India's trade by volume

and 70% by value takes place through
maritime transport

Cargo traffic expected to grow from

976 MMT in 2012 to 1,758MMT by 2017
SOURCE: MOSPI, Census of India, IBEF, Secondary Research 6
Maritime Sector: India vs. China
India China

Container traffic (Mn TEU) 11 185

Average annual growth in container traffic1

0.5 10
(Mn TEU)

Number of ports in Global top 20 0 9

Port capacity stock (% of GDP) 1 3

Number of shipyards2 7 70

Contribution of waterways in domestic

<1% 24%
transportation3

Average Turn-around time (Days) 4.5 1

1 Over 2008-2012
2 That can make more than 120 m long ships
3 Includes both Coastal Shipping and Inland Waterways
SOURCE: McKinsey research, Press search 7
Rationale for Sagarmala Project
Constraints to the Growth of Maritime Sector

 No cohesive institutional arrangement

− Involvement of multiple agencies in development of infrastructure
− Presence of a dual institutional structure leading to development of major and non-major
ports as separate, unconnected entities

 Weak infrastructure at ports and beyond

− Limited mechanization, lack of scale, deep draft and other facilities at various ports in India
− Lack of requisite infrastructure for evacuation from major and non-major ports leading to
sub-optimal transport modal mix
− Limited hinterland linkages increasing the cost of transportation and cargo movement

 Limited economic benefit to the region and to the community

− Limited development of centres for manufacturing and economic activities in hinterland
− Limited conscious skill development & leverage to peripheral trades (fisheries etc.)

SOURCE: Ministry of Shipping 8

Objectives of Sagarmala Project
Focus Areas of Sagarmala Project

 Port Led Development

− Undertake development of Coastal Economic Zones with projects like- port based
industrialization, coastal tourism, Logistics parks, warehousing, fisheries etc.

 Port Infrastructure Enhancement

− Action points on transforming existing ports into world class ports by
developing deep drafts, mechanization of existing berths, creation of new
capacity & greenfield ports

 Efficient Evacuation
− Expansion of rail / road network / inland waterways connected to ports
& identification of congested routes
− Find optimized transport solution for bulk and container cargo

SOURCE: Ministry of Shipping 9

Example of Coastal Economic Zone

10 10
POTENTIAL HINTERLAND OF MUMBAI - DIGHI CLUSTER

11 11
EXISTING INDUSTRIAL CLUSTERS IN MUMBAI - DIGHI COASTAL
ECONOMIC ZONE

12 12
Sagarmala Vision (1/2)

 Change how India moves logistically

− Increase competitiveness of core industries including manufacturing sector by
reducing supply chain cost and time
− Increase volume of trade via inland waterways and coastal shipping
− Create an IT en abled national multimodal logistics system
− Develop coastal roads through maritime states for inter-state port connectivity

 Boost development through ports & shipping

− Develop 3-4 new mega ports
− Develop a world-class transshipment port of more than 10 Mn TEU capacity
− Create additional capacity of 1200-1500 MMTPA by strengthening existing ports
− Develop maritime and manufacturing clusters around the ports
− Develop 2-3 port based smart cities & Coastal Economic Zones

SOURCE: Ministry of Shipping 13

Sagarmala Vision (2/2)

 Create world class institutions

− Set up the Sagarmala Development Company to enable project implementation
− Set up world-class PPP programs in port, waterways and connectivity projects
− Develop Indian Maritime University as a center of excellence for maritime education
− Set up best in class maritime services clusters in India

 Empower coastal communities

− Create more than 1 million jobs in the maritime and related sectors
− Increase GDP contribution of maritime states and sector through comprehensive
coastal community development plan

SOURCE: Ministry of Shipping 14

Sagarmala Project Background
“Sagarmala”
initiative announced
by then Prime
Minister of India
15th August, 2003
SOURCE: Ministry of Shipping
9th June, 2014 27th November 2014 15th May 2015
Decision to make Ministry “Sagarmala” concept and various issues McKinsey - AECOM
of Shipping the nodal related to its implementation consortium selected as
Ministry for Sagarmala deliberated upon by the Committee of Strategy & Programme
initiative based on the Secretaries (CoS). Ministry of Shipping Management Consultant
Hon’ble President of India sought ‘in principle’ approval of the for the Sagarmala
address to the Parliament concept of Sagarmala project initiative
The CoS deliberated on issues relating to the area of Note for the Cabinet on
responsibilities of the Ministry of Shipping, other line Ministries/ “Sagarmala: Concept and
Departments and State Governments / State Maritime Boards Implementation” submitted
along with the timelines for execution of various activities by Ministry of Shipping
envisaged under the “Sagarmala” initiatives
14th January 2015 19th February 2015
15
Sagarmala Institutional Framework

National Sagarmala Apex Committee

Sagarmala Coordination State Sagarmala

and Steering Committee Committee

Central implementing
Ministries

Sagarmala Development
Central-level SPVs State level SPVs
Company (SDC)

Port SPVs

SOURCE: Ministry of Shipping 16

Sagarmala Development Company
Sagarmala Development Company (SDC)

 Implementation of the projects in Sagarmala will be taken up by

relevant Ports, Line Ministries, State Governments and State Maritime
Boards in the form of SPVs through private sector or PPP route

 Ministry of Shipping will set up the Sagarmala Development Company

(SDC) to assist the project SPVs (State / Port / Line Ministry level SPVs)

 SDC may provide funding window / equity support / access to relevant

technical consultants for the projects undertaken, as may be required
and necessary

 SDC will implement only those residual projects that cannot be funded
by any other means or mode

SOURCE: Ministry of Shipping 17

 Benefits for
CBIC
Regions under
Sagarmala
Program

18
EXISTING INFRASTUTURE IN KRISHNAPATNAM - CHENNAI CEZ

19 19
PORT LED INDUSTRIAL DEVELOPMENT IN
KRISHNAPATNAM – CHENNAI CEZ

20 20
Potential Benefits for Maritime States from Sagarmala (1/3)
Development of Coastal Economy

 Integrating the coastal economy with the ports through development of Coastal
Economic Regions & projects with synergies to Coastal Industrial Corridors

 Development of port-based smart cities and other

urban infrastructure to improve standards of living

 Implementation of skill development/livelihood generation projects for

coastal community development, e.g.
− Coastal Tourism Development projects (Lighthouses & Mainland Islands)
− Fisheries sector development
21
Potential Benefits for Maritime States from Sagarmala (2/3)
Maritime Sector & Infrastructure Development

 Modernization/capacity expansion of existing ports and creation

of greenfield ports to reduce bottlenecks for future growth

 Development of port evacuation (road/ rail/inland waterways)

and logistics infrastructure to reduce overall logistics cost and
to increase cargo movement to-and-from the hinterland

 Development of maritime sector leading to new economic activity

in the region - E.g. Ship Building and Repair Cluster

22
Potential Benefits for Maritime States from Sagarmala (3/3)
Easing the Project Development Process

 Integrated approach to project identification and

implementation through coordination between Line
Ministries, State / UT Governments and Private Agencies

 Easing of policy and institutional bottlenecks for

− Obtaining project approvals
− Accessing project funding and implementation partners
− Project implementation and monitoring

23
 Projects
Identification
for
Sagarmala

24
Sagarmala Project Archetypes (1/3)
Project Theme Project Archetype* Project Description and Examples*

 Infrastructure development and maintenance projects in the

Port-led industrial area/estate near the ports
industrialization − E.g., Port-industry connectivity, setting up industrial estates
in port land

 Green-field and Brown-field urbanization projects to promote

Port based standards of living
Port-led urbanization − E.g., Developing port smart cities, water supply for urban
Development areas near the port
Projects

 Infrastructure projects for ship building/breaking yards and

Ship building, ship maritime clusters
repair and recycling
− E.g., Water gates, setting up maritime clusters

 Infrastructure and non-infrastructure projects related to coastal

Coastal community community development
development − E.g., Skill development and livelihood generation, health and
sanitation projects

*Not Exhaustive 25
Sagarmala Project Archetypes (2/3)
Project Theme Project Archetype* Project Description and Examples*

Short-sea coastal  Infrastructure development and maintenance projects for

shipping and inland promoting coastal shipping/inland waterways
waterways − E.g., Jetties for coastal shipping, maintenance dredging for
transportation inland waterways

 Projects to improve the logistics infrastructure between the ports

Connectivity Logistics parks, and hinterland hubs
warehousing, maritime
Projects zones/services − E.g., Logistics Parks and warehouses projects within the port
area or outside

 Projects to integrate the ports to the hinterland industrial hubs

Integration with
hinterland hubs − E.g., Multimodal hubs along with road/rail/inland waterways,
Inland Container Depot/Container Freight Station

*Not Exhaustive 26
Sagarmala Project Archetypes (3/3)
Project Theme Project Archetype* Project Description and Examples*

 Projects to enhance the existing port infrastructure and setting

Modernizing existing up of greenfield ports
ports and development
of new ports − E.g., Strengthening of roads within port area, improving
mechanization of cranes, gantries, etc.

Specialization of ports  Infrastructure projects in ports to support specific industry

in certain economic developments
Port activities such as energy
containers, chemicals, − E.g., Effluent treatment plan for chemicals industry, RFID
Augmentation coal, agro products projects for containers
Projects
Offshore renewable  Renewable energy projects for the sustainable development of
energy projects with the ports and the associated coastal regions
base ports for
installation − E.g., Solar and wind energy generation projects

 Projects related to port ancillary services

Offshore storage and
drilling platforms − E.g., infrastructure for POL storage, Facilities for offshore
bunkering

*Not Exhaustive 27
 SEND
COMMENTS/SUGGESTION
on
sagar.mala@gov.in

28 28
29
Progress
Update

30
Progress Update: Coordination & Communication

Indian Port Rail Corporation has been incorporated on 10th

July, 2015

Active engagement with the Maritime States for getting their

views and suggestions

Engagement with Ministries dealing with infrastructure

development including DIPP to align and synergize with the
existing infrastructure projects (e.g. industrial corridors,
industrial parks etc.)
31
Progress Update: NPP Preparation

National Perspective Plan [NPP] to be finalized by January 2016

OD Study for traffic forecast and potential for coastal shipping and
inland waterways for key commodities (E.g. coal, POL, containers etc.)
undertaken
Report on potential for setting up transshipment port developed
Benchmarking study undertaken to improve productivity, profitability,
operational efficiency, and future prospects of Major Ports
Smart port city at Kandla and Paradeep

32
Progress Update: Island Development & Skill Development

Development of Islands
− Interim report, on possible commercial & developmental activities
in the islands, submitted to the Task Force on Holistic Development
of Islands
− Action plan for development of 15-20 island lighthouses
− Ministry of Shipping in consultation with Ministry of Agriculture is
evaluating potential for oil palm cultivation in islands off east coast

Skill Development in coastal area

− In association with Ministry of Skill Development and Ministry of
Rural Development is being finalized 33
34