General Management

Project on

“A STUDY ON PORT MODERNIZATION IN INDIA

THROUGH SAGARMALA’’

Submitted in partial fulfilment for the Award of the Degree

ofMaster of Management Studies (MMS)

Under Mumbai University

Submitted by

Nadar Chandru Soundara Pandian

Roll No. 80

Under the Guidance of

Ms. Anguja Agrawal

2020-2022

SIES COLLEGE OF MANAGEMENT

STUDIESNERUL, NAVI MUMBAI 400706

 CERTIFICATE
This is to certify that project titled “A study on Port Modernization in India through
Sagarmala” is successfully completed by Mr. Nadar Chandru Soundara Pandian
during the fourth Semester, in partial fulfilment of the Master’s Degree in
Management Studies recognized by University of Mumbai for the academic year
2020-2022 through SIES College of Management Studies.

This project work is original and not submitted earlier for the award of any Degree
or Diploma or associate ship of any other University / Institution.

Name: Nadar Chandru Soundara Pandian

Date:
Signature of Guide
 DECLARATION
I hereby declare that this project report submitted by me to the SIES College of
Management Studies, is a bonafide work undertaken by me and it is not submitted
to any other University / Institution for the award of any Degree orDiploma /
Certificate or published any time before.

Name: Nadar Chandru Soundara Pandian

Date:
Signature of Student
 ACKNOWLEDGEMENT

I would like to express my indebtedness appreciation to my departmental supervisor

Ms. Anguja Agrawal. Her constant guidance and advice played a vital role in
making the execution of the report. She always gave me her suggestions that were
crucial in making this report as flawless as possible.

I am using this opportunity to express my deepest gratitude and special thanks to the
Dean of operations Department of SIES College of management studies Dr.
Sandeep Bhanot providing me the opportunity to embark on this project.

Last but not least, also give my sincere thanks to all the people to directly indirectly
have help and encourage me in finding the way to us collecting the requisite
information and completing the project effectively and timely

Signature

Nadar Chandru Soundara Pandian

Date: ________________
 EXECUTIVE SUMMARY
India being one of the fastest growing economies in the world, the vital transport system is under
pressure and challenges which are to be addressed on a long time perspective. The Maritime
Sector has a greater role to play for the overall economic development of the country. Though
Indian Ports handle about 95% of EXIM Trade volume, the proportion of merchandize trade in
GDP is only 42%, when Germany’s share is 75% and European Union 70%. With new policy
initiatives like Make in India programme, the share of merchandize trade in India’s GDP is set to
increase considerably. The major role of India’s transportation system is movement of bulk
commodities. The thermal coal alone constitutes about 60% of the freight volume on Indian
Railways and 24% of Sea Port freight mix. Coal, POL, iron ore, fertilizers and container
constitute 80% of the total export import freight movement across the country. The study aims to
highlight the Sagarmala Project with regard to logistics sector in India. Further it identifies:-
■ Opportunities to optimize logistics cost for existing and future capacities
■ Capacity additions/reconfigurations needed at different ports to prepare for future traffic flow,
including identification of new ports
■ Imperatives for government and industry to ensure time-bound implementation of
opportunities
 CONTENTS
SR.NO CHAPTER PAGE
1. Chapter 1 – Introduction 2
1.1 Need for port led development 3
1.2 Transformation of Logistics Sector 4
1.3 What is Sagarmala 4
1.4 About Sagarmala 5
1.5 Implementation 6
2. Chapter 2 - Review of Literature 7
3. Chapter 3 - Objective 8
4. Chapter 4 - Methodology 8
5. Chapter 5 - Analysis & Discussion 9
5.1 SWOT Analysis 9
5.2 Components 10
5.3 Expected Impact 14
5.4 Government Initiative 14
5.5 Statistics 15
6. Chapter 6 - Conclusion 18
7. Chapter 7 - Recommendation 18
8 Reference 19
 INTRODUCTION
India is richly endowed with natural maritime advantages, Maritime logistics has been an important
component of the Indian economy. A robust maritime logistics sector with modern and efficient port
infrastructure can be a strong catalyst of economic growth. EXIM trade can become competitive through
cost-efficient and timely logistics. Coastal and inland waterway transportation is energy efficient, eco-
friendly and reduces logistics costs for domestic freight. However, the Indian coastline and river
network has historically remained underleveraged. Despite significantly lower costs, water transport
accounts for only 6 per cent of total freight movement in India in tons km terms. Industrial development
has not fully utilized the structural advantages of efficient supply chains leveraging proximity to coast.
Logistics costs account for a large part of the Indian non services GDP compared to developed nations.
EXIM containers in India travel a distance of 700 to 1,000 km between production centers and ports,
compared to 150 to 300 km in China. Lack of seamless connectivity across various logistics modes and
complexity in procedures contribute to high variability in transit times. As a result, container exports
take 7 to 17 days from the hinterland to vessel, compared to 6 days in China. The high variability of
transit time impacts the trade since exporters are not able to commit to tight delivery schedules and have
to finance higher working capital. Adequate road and rail connectivity linkages to ports have not been
developed in tandem with port development, resulting in instances of new ports with modern facilities
being underutilized due to connectivity bottlenecks. Inadequate focus on developing coastal shipping
and inland waterways for domestic (non-EXIM) logistics has skewed the modal mix of transport in India
with a disproportionately high share of roadways. The siting and master planning of industrial clusters
and zones (often with high EXIM traffic) does not adequately take into account proximity to ports. The
port land itself is inadequately utilized for setting up industries and manufacturing. Major ports have
2.71 lakh acre of land, of which 2.35 lakh acre is underutilized. Raw material often travels a large
distance from coastal areas to the hinterland and then finished products travel back from the hinterland
to the coast for exports. This reduces the competitiveness of Indian exports compared to other exporting
countries. Internationally, several ports have been successful in generating higher value-add and jobs
inside the port area compared to the metropolitan area. Existing policies in India for usage of port land
are focused on maximizing rental yields, rather than the maximization of overall economic value-add
and job creation. Indian ports are often small, inefficient and lack the draft to accept larger sized vessels.
As a result, no Indian port ranks among the global top 20.

2
1.1 NEED FOR PORT LED DEVELOPMENT IN INDIA
 India is one of the fastest growing large economies in the world with a GDP growth rate of 7.3% in
2018-19 and ports play an important role in the overall economic development of the country.
Approximately 95 % of India’s merchandise trade (by volume) passes through sea ports. Many ports
in India are evolving into specialized centres of economic activities and services and are vital to
sustain future economic growth of the country such as JNPT, Mundra Port, etc.
 However, Indian ports still have to address infrastructural and operational challenges before they
graduate to the next level. For example, operational efficiency of Indian ports has improved over the
years but still lags behind the global average. Turnaround time (TAT) at major ports was
approximately 2.5 days in 2018-19, whereas global average benchmark is 1-2 days. Some of the
private sector ports in India like Mundra and Gangavaram, have been able to achieve a turnaround
time of around 2 days.
 Secondly, last mile connectivity to the ports is one of the major constraints in smooth movement of
cargo to/from the hinterland. Around 87% of Indian freight uses either road or rail for transportation
of goods. A significant share of this cargo experiences “idle time” during its transit to the ports due
to capacity constraints on highways and railway lines connecting ports to production and
consumption centers. Although water-borne transport is much safer, cheaper and cleaner, compared
to other modes of transportation, it accounts for less than 6% of India’s modal split. By comparison,
coastal and inland water transportation contribute to 47% of China’s freight modal mix, while in
Japan and US, this share is 34% and 12.4% respectively. Significant savings can be achieved by
shifting movement of industrial commodities like coal, iron ore, cement and steel to coastal and
inland waterways.
 However, more than 90% of coal currently moves via railways. The constraints on connectivity and
sub-optimal modal mix results in higher logistics cost thereby affecting the manufacturing sector and
export competitiveness
 The third factor is the location of industries / manufacturing centers vis-à-vis the ports. While cost
differential between India and China is not significant on a per ton km basis, China still has a lower
container exporting cost, than the cost in India, due to lower lead distances . Presence of major
manufacturing and industrial zones in coastal regions in China, which were developed as part of the
Port-Led Policy of the government is the main reason for lower lead distances.

3
1.2 TRANSFORMATION OF LOGISTIC SECTOR
In general, logistics cost is higher in India compared to other growing economies which adversely affect
the competitiveness of EXIM industry. The important initiative taken in this direction is to move as
much cargo as possible by coastal shipping and inland waterways. There is great scope for adopting IT
enabled multi modal logistics system like RFID, ERP etc., for ensuring quick transaction and movement
of cargo. It is a global practice that infrastructure development in the logistics sector is done after a
systematic Origin Destination study of dominant cargo mix. About 80% of the cargo of Indian Ports is
contributed by five cargoes viz. POL, Coal, Containers for achieving the objectives.
1.3 What is Sagarmala?
Vision
Sagarmala is an ambitious national initiative aimed at bringing about a step change in India’s logistics
sector performance, by unlocking the full potential of India’s coastline and waterways. The vision of
Sagarmala is to reduce logistics cost for both domestic and EXIM cargo with optimized infrastructure
investment. Sagarmala aspires to reduce logistics costs for EXIM and domestic cargo leading to cost
savings. Some of this will be direct cost savings, while others are savings from inventory-handling costs
resulting from time in transportation of goods, particularly containers. These cost savings apply to
current industrial capacities as well as future coast proximate capacities for energy, material, marine and
discrete industries that could come up through port-linked industrialization. In addition, Sagarmala
aspires to reduce carbon emissions from transportation sector by 12.5 MT/annum.
Mission:-
 Boost the overall trade by imports and exports.
 Rise in GDP.
 Rise in Foreign Direct Investment.
 Enhancing maritime security.
 Rise in tourism and fisheries industries.
 Rise in employment.
 India to be an economic superpower.

4
1.4 Sagarmala
India has valuable coast line of 7500 KMs and potential navigable waterways of 14500 KMs which
have not been fully leveraged for the economic development of the country. The Maritime Sector is
the backbone of every developed country. Though approximately 95% of India’s Merchandize trade
by volume is through sea ports, there is greater potential to be unlocked by improving
infrastructural and operational challenges. Efficiency parameters of Indian Ports and cost of
handling are below international standards. Last mile connectivity has not been sufficiently
provided too many Major Ports. About 94% of Indian freight uses either road or rail for
transportation of goods. Though water borne transport is much cheaper and safer, it accounts only
6% of India’s modal split. On the other hand, coastal and inland water transport has a share of 47%
of China’s freight modal mix. Japan and U.S have the share of 34% and 12.5% respectively. 90% of
the coal currently moves by railways when the cost of transportation by coastal movement is only
1/6th. Unlike in other developed countries, the location of Port based industries far away from Ports
also contributes to higher logistics cost. Having realized the great potential of Maritime Sector,
Govt. of India has formulated an ambitious programme viz. Sagarmala Project, with the objective
of achieving optimum modal split, enhanced connectivity with main economic centers, expansion
of rail, inland water, coastal and road services, enhancing the Port infrastructure and efficiency,
simplified procedures and developing new regions called Maritime Clusters and Coastal Economic
Zones for various economic activities and development. A new National Perspective Plan has been
prepared for this purpose. The concept of Sagarmala was approved by the Union Cabinet on 25th
March 2015. As part of the programme, a National Perspective Plan (NPP) for the comprehensive
development of India’s 7,500 km coastline, 14,500 km of potentially navigable waterways and
maritime sector has been prepared which was released by the Hon’ble Prime Minister, on 14th
April, 2016 at the Maritime India Summit 2016.

5
1.5 Implementation
The Indian government wants to transform the country’s ports and reduce logistics costs for
domestic as well as import/export cargo by optimizing infrastructure investment. The government
has planned six megaports under the project, namely the Vizhinjam International Seaport (Kerala
state), Colachel Seaport (Tamil Nadu), Vadhavan Port (Maharashtra), Tadadi Port (Karnataka),
Machilipatnam Port (Andhra Pradesh), and Sagar Island Port (West Bengal). A study done in
September 2016 estimates that the resultant cost savings could range from US$5.2 billion (Rs
35,000 crore) to US$5.9 billion (40,000) crore per year by 2025.India currently permits 100 percent
FDI for the construction and maintenance of ports. The government also allows a tax holiday for 10
years and up to 50 percent financial aid – subject to a maximum of US$3.88 million (Rs 250
million) – for investing companies. Under Sagarmala, 577 projects at an estimated investment of
US$120 billion have been identified for phase-wise implementation over the period 2015 to 2035.
These projects will be taken up by the relevant federal ministries/agencies and state governments,
preferably through private sector participation or publicprivate-partnerships (PPP). The details are
as below: Port modernization – 245 projects (US$21 billion); Connectivity enhancement – 210
projects (US$36 billion); Port-linked industrialization – 57 projects (US$68 billion); and, Coastal
community development – 65 projects (US$1 billion). As of March 31, 2018, a total of 492 projects
– worth US$62 billion – were under various stages of implementation, development, and
completion.

6
 REVIEW OF LITERATURE
Wan, Chengpeng, Zhang and Yang Zaili (2017) have carried out a study on this paper Environmental
problems that seriously affect both natural systems and social development of human beings. The
concept of green port is developed to mitigate the negative impacts of inappropriate port operations on
environment. This paper analyzes the current status of green port development worldwide. An
evaluation model for quantitative measurement of green port development is established based on the
Drivers, Pressures, States, Impacts and Responses (DPSIR) framework. The weight of each index
composing the evaluation model is calculated through an analytical hierarchy process method, and the
evaluation results of the investigated ports with respect to each index are aggregated using an evidential
reasoning approach. The next step required the evaluation model is further demonstrated through a
comparative analysis of five major ports in China. In china 5 major port developed in Greenfield port
based system. The novel model developed along with the methods applied in this paper can provide
significant insights for the comparative evaluation on the development of green ports in other countries,
as well as a powerful tool to conduct self-assessment of green port development.
David Romaro and Alberto Camarero (2017) have carried out a study on this paper focuses on the first
mandatory step of analyzing the different types of risks faced by a commercial port infrastructure. The
number of potential risks is large – information technology risks, operational risks, labor risks, etc. This
paper presents a methodology for improving the scoring of the risks to commercial ports and
understanding their real scope. The paper discusses the results of a survey of experts at Spanish ports
and an analysis of almost two years of security statistics, the goal being to obtain realistic information
about the importance of the various risks in order to specify suitable countermeasures and evaluate their
costs. The results have enabled the identification of several new parameters that must be considered
when assessing the risks to commercial ports, as well as enhancements to the definitions and use of
some of the existing parameters. The new parameters include Enhance maritime risk security, the risk to
a port, and intrinsic risk to the type of terminal, accessibility, terminal layout and operational relevance
of key elements to port operations. The structures, rail and road facilities and development of warehouse
provide in port sector.

7
 OBJECTIVE
Vision of the Sagarmala Programme is to reduce logistics cost for EXIM and domestic trade with
minimal infrastructure investment. This includes:
 Reducing cost of transporting domestic cargo through optimizing modal mix
 Lowering logistics cost of bulk commodities by locating future industrial capacities near the
coast
 Improving export competitiveness by developing port proximate discrete manufacturing clusters
 Optimizing time/cost of EXIM container movement.

METHODOLOGY
This study is based on secondary sources of data and information. Different books, journals, newspaper,
magazines, NITI AAYOG, PIB, IBEF websites have been consulted and identified in order to make the
study in an effective manner. The study attempts to scrutinize the integration of logistics sector in Indian
economy.
Data Source: Secondary Source
The data is wholly based on secondary source. The data was mostly collected from selected
websites, articles and research papers.

8
 ANALYSIS & DISCUSSION
5.1 SWOT Analysis
Strength
 Implementation of GST
 E-way Bill Introduction
 Dedicated Freight Corridor
 Wider reach to all parts of India
 Providing large number of job opportunities
 Infrastructure Facilities like workshops, depot and motels.
 Projects like Bharathmala project, SetuBharatam, Sagarmala project, UDAN scheme, Multi
modal Logistics Park, etc.
Weakness
 Average speed of fleet vehicle is 40KM/Hr
 Average speed of train carrying cargo fleet is 25KM/Hr
 The average distance covered by the driver is about 250-300KMs/day
 Shortage of skilled drivers
 Lack of wireless technology and GPS
 Minimum number of refrigerated vehicles
 Minimum number of intermodal and multimodal transportation services in India
 Poor warehouse facilities in major airports
 Heavy traffic congestion in all major sea ports
Opportunity
 FDI allowed 100% automation in Logistics Sector
 Ever increasing demand of transport services due to the construction of many highways
 Different type of cargo fleet vehicles for targeting potential customers
 Financial position can be improved by implementing price packages in season time
 More number of privatization which catalyst to improve productivity and operational efficiency.
Threats
 Pathetic conditions in many rural areas
 Traffic congestion in all toll gates during festival season
9
  Variation of input costs such as fuel, chassis, tyre and tubes, etc.,
 Large number of trade unions which tends to strike in many ways
 Lack of performance linked incentives for the workers
 Job insecurity among the workers
 Technological and operational glitches.
5.2 Components
Port modernization & New port development
Since about more than 90% of India's trade by volume is conducted via the country’s maritime route,
there is a continuous need to develop India's ports and trade related infrastructure to accelerate growth in
the manufacturing industry and to assist the 'Make in India' initiative. India has 12 major ports and
approximately 200 non-major ports administered by Central and State Governments respectively.
As per the studies conducted under the Sagarmala Programme, it is expected that by 2025, cargo traffic
at Indian ports will be approximately 2500 MMTPA while the current cargo handling capacity of Indian
ports is only 1500 MMTPA. A roadmap has been prepared for increasing the Indian port capacity to
3300+ MMTPA by 2025 to cater to the growing traffic. This includes port operational efficiency
improvement, capacity expansion of existing ports and new port development.

New Port Development

To fill the demand gap, 2 new major ports are planned which will bring in significant capacity
expansion. The locations of these new ports are deliberated after detailed origin-destination study of
cargo commodities and there are mainly three levers that propel the need for building new ports: New
port locations have been identified based on the cargo flow for key commodities and the projected
traffic:
Greenfield ports are proposed to be developed at
 Vadhavan (Maharashtra)
 Paradip Outer Harbour (Odisha)

10
Capacity Expansion of existing Major Ports

For all the 12 major ports, master plans have been finalized. From the port master plans, 92 port capacity
expansion projects (cost: Rs. 58,884 Cr) have been identified for implementation over next 20 years and
are expected to add 712 MTPA to the capacities at major ports.
Port connectivity enhancement
India's hinterland connectivity is mainly based on surface transport i.e. road and rail, wherein, domestic
waterways (coastal shipping and inland waterways) playing a very limited role. Pipelines are
predominantly used only for transporting crude oil, refined petroleum products and natural gas. In India,
smooth connectivity to ports is even more important as the cargo generating centers are mainly in the
hinterland instead of in the coastal region. The long lead distance increases the logistics cost and time
variability within which the cargo can be delivered.
 National waterways prioritized for development in the first phase
 Connectivity to Dedicated freight corridors
 Last mile rail and road connectivity projects
 Major rail connectivity projects
 Freight friendly Expressway projects connecting the major ports
 Development of Multi-Modal Logistics Parks
 POL Pipelines
Port led industrialization
Development of port-proximate industrial capacities near the coast, in future, is a step in this direction.
In this regard, the concepts of Coastal Economic Zones (CEZs), Coastal Economic Units (CEUs), Port-
Linked Industrial & Maritime Clusters and Smart Industrial Port Cities have been introduced.
 Coastal Economic Zones (CEZs): CEZs could be spatial economic regions comprising of a group
of coastal districts or districts with a strong linkage to the ports in that region. CEZs are also
envisaged to tap synergies with the planned industrial corridor projects
 Coastal Economic Units (CEUs): CEUs will be specific industrial estate projects with a
demarcated boundary similar to the DMIC nodes. The CEUs will house the industrial clusters /
projects proposed within the CEZ.

11
Coastal Economic Zones under Sagarmala:

12
Vision of the Sagarmala Programme is to reduce logistics cost and time for the movement of EXIM and
domestic cargo and development of port-proximate future industrial capacities near the coast is a step in
this direction. In this regard, 30 potential port-linked industrial clusters across three sectors, namely –
Energy, Materials and Discrete Manufacturing, have been identified. These include 9 bulk clusters for
basic input industries such as Power, Refineries & Petrochemicals and Cement and 21 discrete
manufacturing clusters, in the labour intensive sectors of Electronics, Apparel, Leather Products,
Furniture and Food-Processing etc. The master plans for the proposed Maritime Clusters in Gujarat and
Tamil Nadu have been prepared.

Industrial & Maritime Clusters under Sagarmala

13
Further, development of a SEZ at JNPT and Smart Industrial Port City (SIPC) at Paradip is in progress.
SIPC at Kandla and Coastal Employment Units (CEUs) at VoCPT and KPL are also under development.
5.3 EXPECTED IMPACT
Logistics cost–saving opportunity of INR 35,000-40,000 crores per annum the study estimates the
potential to save around INR 35,000-40,000 crores per annum by optimizing logistics flows for key
commodities by 2025. Four key initiatives could drive these savings:
1. Coastal shipping to carry about 230-280 MMTPA from current and planned capacities across coal,
cement, iron and steel, food grains, fertilizers, POL (estimated INR 21,000-27,000 Crores saving by
2025)
2. New coastal capacities for bulk commodities (steel and cement) of 80-100 MMTPA (estimated INR
5,500-6,500 Crores saving by 2025)
3. Reduced time to export containers by 5 days (estimated INR 5,000-6,000 Crores saving by 2025) 4.
Increase share of railways in container modal mix from current 18 percent by 2025 leading to a saving
of around 2,000-3,000 INR crores.
5.4 Government Initiatives

 Ministry of Shipping has notified licensing relaxation to foreign flag vessels for carrying
transshipment containers, empty containers, fertilizers and agricultural, fisheries, animal husbandry
and horticultural commodities on coastal routes.
 The licensing Relaxation for coastal shipping to special vessels such as Ro-Ro, Hybrid Ro-Ro, Ro
Pure Car Carriers, Pure Car and Truck Carriers, LNG Vessels and Over-dimensional or Project
Cargo is extended till 2021.
 Under coastal berth scheme, financial assistance up-to 50% of total project cost or maximum
funding limit can be provided to the implementing agency for creation of infrastructure to promote
movement of cargo/passengers by sea/National Waterways.
 A study has been conducted in association with Asian Development Bank to prepare a perspective
plan for coastal shipping and an action plan has been formulated under the topics of policy
interventions, infrastructure interventions and process interventions is being implemented by the
Ministry of Shipping.
 Minimum 40% discount is offered by major ports on vessel and cargo related charges to coastal
vessels.

14
5.5 Statistics (DEVELOPMENT OF PORT AND SHIPPING SECTOR)
In the coastline of 7500 KMs, there are 12 Major Ports and about 200 Non-Major Ports in the Maritime
Sector. Major Ports handle about 55% of the total cargo of Indian Ports and Non-Major Ports’ growth
has been faster and share of about 45% of total cargo [5]. Cargo handled by 12 Major Ports during the
year 2016-17 is as under:

Out of 200 Non-Major Ports, 7 Ports viz. Sikka, Mundra, Krishnapatnam, Gangavaram, Dhamra,
Kakinada and Pipavav are quite active and the cargo handled by these ports during the year 2016-17 are
given below:

Compared to leading International Ports, the performance indicators of Indian Ports are far below. 7 of
top 10 Ports are in China while no Indian Ports figured in first top 30 World Ports [7-8]. Due to non-
availability of draft of 18+ meters in Indian Ports, most of EXIM containers are transhipped at nearby
transhipment Ports in other countries. Average turn-around time at Indian Ports is 4.5 days as compared
to 1 day in China. The main reasons for less efficiency of Indian Ports are lack of mechanization of Port

15
handling facilities, insufficient draft, lack of sufficient capacity, lack of sufficient infrastructure in the
hinterland including connectivity, etc.
A. Capacity Addition: A table showing the percentage capacity utilization of Major Ports is given
below:

It can be seen that most of the Ports are having more than 60% capacity utilization which is considered
as a benchmark for taking action for capacity addition [6]. Thought the global recession has depressed
the shipping sector to certain extent, the Indian economy and EXIM trade has shown its resilience and
there will be more demand for POL products and coal movement, due to increased demand by organized
power projects, enhanced coastal movement due to increase in the production and consumption of
domestic products and growth in the container volume due to robust manufacturing sector and increase
in the EXIM trade. As throughput growth in most of the Indian Major Ports is consistent, it is required to
take up projects for capacity addition.
B. New Ports: As it is proven that the maritime strength of the country can be leveraged for its economic
development which is not fully unlocked in the case of India, Sagarmala programmed envisages to start
the following New Ports.
1. Sagar- As Calcutta has its perennial problems for its further expansion and as North Eastern
hinterland has potential to generate more cargo, there is potential for establishing a Port at Sagar.
2. Paradip South Satellite Port - This satellite Port is required to meet with the handling requirement of
enhanced volume of thermal coal.

16
3. Belekeri– As there is no major port between Mormugao and New Mangalore on the Western Coast, it
is justified to develop a port at Belekeri to meet with the logistics requirement on the region especially
the thermal power and steel plants.
4. Port at Central Andhra Pradesh – Thermal power plants at Central Andhra Pradesh and limestone
availability in the region justify setting up of Port in this area.
5. Central Tamil Nadu – As there is potential for thermal power plants at Neyveli and to meet with other
regional cargo, a Port is justified in this region.
6. Vadhvan– As JNPT is expected to be saturated in the near future and to facilitate additional volume
of containers and other bulk cargo, Vadhvan will be ideal location for the Port.
7. Ennayam– As 75% of Indian EXIM cargo is transhipped at nearby countries, there is potential for
development a transhipment port closer to International Trade route and Ennayam also can have a deep
draft of more than 20 meters.

17
 CONCLUSION
Overall economic development of the country especially industrialization through Port based projects
and development of coastal region is the overall motto of Sagarmala Programme. Maritime Clusters and
Coastal Economic Zones are envisaged to be set up under the programme. As shipping and EXIM trade
are having international ramifications, it is essential to address the cost and time involved in the
movement of EXIM containers. Movement between gateway Ports and hinterland is mainly by road and
the modal shift from road to rail has to be geared up as done in the countries like China. Rail sector is
also facing lot of challenges due to congestion and priority to passenger trains, higher freight to
compensate passenger charges, lack of availability of rakes at ICDs etc. Roads are also congested
causing congestion in the approach roads of many Ports which highlights the need for providing proper
last mile connectivity. Delays are also taking place in customs clearance formalities and delivery
formalities and the initiatives taken under ‘Ease of Doing Business’ has a long way to go to translate
into substantial reduction of cost and time in the movement of EXIM containers. The overall picture
emerging is the tremendous unlocked potential in the coast line of the country for development which is
being leveraged through a well prepared Sagarmala Programme, which will prove to be a beacon of
development in the economic horizon of the country.

RECOMMENDATIONS
Delay in implementation: In the year (2019), only one more port modernization project had been
completed. The Committee was concerned to know that no progress had been made on the all-weather
all-cargo Vadhavan port.
Infrastructure financing: To be globally competitive, the cost of financing for Indian companies has to
be at par with the global rate. To achieve this, the Committee recommended the Ministry to take an
expedited decision on creating a Maritime Development Fund.

18
 REFERENCES
https://www.ijrte.org/wp-content/uploads/papers/v8i2/B1831078219.pdf
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f
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https://en.wikipedia.org/wiki/Bharatmala
https://sagarmala.gov.in/sites/default/files/NPP%20executive%20summary.pdf
http://www.ipa.nic.in/
https://www.india.gov.in/spotlight/pm-gati-shakti-national-master-plan-multi-modal-connectivity
https://tradestat.commerce.gov.in/eidb/default.asp
https://commerce.gov.in/
https://shipmin.gov.in/
https://www.dgft.gov.in/CP/
https://wits.worldbank.org/CountryProfile/en/IND
https://www.indiantradeportal.in/vs.jsp?lang=0&id=0,25,45

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