CHALLENGES IN SHIPPING AND

PORT INDUSTRY

PRESENTED BY

SANDEEP K SINGH 011195

DEEPAK CHAUDHARY 011193

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  Under investment in Indian

shipping routes. maritime sector.
 Fleet expansion by major  Inefficient judiciary system
domestic. shipping slow development of new
companies port infrastructure
 Large number of Indian  High level of bureaucracy
seafarers. preventing the government
from funding the new
projects.
Opportunities Threats

 Indian shipping  Major development

companies have taking place in srilanka’s
acquisitions with foreign port.
companies.  Indian ports have suffered

 Major container terminal from congestion, slowing

being developed at the country’s growth
port of Chennai and trajectory.
Mumbai.
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.
.
 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 industry-
Around 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
 Portsprovide an interface between the ocean
transport and land-based transport. They
represent a promising sector for India, given the
country’s 7517 km long coastline.
West Coast of India East Coast of India
Gujarat (41 ports) Tamil Nadu (18 Ports)
Maharashtra (55 Ports) Pondicherry (1 port)
Goa (6 ports) Andhra Pradesh (13 Ports)
Daman & Diu (2 ports) Orissa (3 ports)
Karnataka (11 ports) West Bengal (2 port)
Kerala (14 ports) Andaman & Nicobar
Islands (24 ports)
Lakshadweep Islands
Total 139 (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  Old infrastructure

 Financial means available  Limited water depth

 Most ports located at  Old and inefficient cargo

 strategic locations handling

 systems

 Poor hinterland
connections
Opportunities Threats

 Invest in infrastructure,  Private ports

 lower costs for port users  Minor ports

 Invest in total transport  Bureaucracy

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