International Business Conferences

Great experience, Nice theme and exchange of experiences as on the present scenario when India emerges as a Global Player. Thank you, we have shared our knowledge, innovations and it was a hub to know on varied topics and ways of optimization on energy management.
SHAKARALINGAM NATARAJAN
Head- smart process dept Emerson Process Management

	India Maritime -2007 opening the doors for efficient sea connectivity.



	India is emerging as a modern economy. The Government is committed to ensure that economy grows at 8 to 9 percent per year in a sustained manner over next decade. In order to realise this growth potential, the attention also needs to be given to development & modernisation of our economic infrastructure. To become globally competitive, utmost importance must be given for development of infrastructure in sectors like roads, airports, sea-ports, railways etc. in general and maritime transport in particular, as this sector plays a vital role in the overall economic development of the country.

	There has been sustained rise in volume of exports with revival of growth in the manufacturing sector and improved export competitiveness. Government has fixed an ambitious target of US$ 150 billion for exports by the year 2008-09 to double India’s share in world exports from nearly 0.8 percent to 1.5 percent.

	About 95% by volume and 70% by value of the country’s international trade is carried on through the maritime transport. There are 260 foreign going ships facilitating India’s sea-borne EXIM trade. As regards port infrastructure, there are 12 Major Ports, six each on the west and the east coast and about 45 non-major and private ports contributing to the maritime trade and many more new ports are to be set up such as Rewas in Maharastra, and few more in AP and Orissa coast These ports are spread along the country’s long coastline of around 7517 Kms on the western and eastern shelves of the mainland and also along the islands.

	The country has the largest Merchant Shipping fleet among the developing countries and is ranked 17th in the World. Regulation of merchant shipping is governed by Merchant Shipping Act, 1958.Indian Shipping consists of 31 major companies(INSA members) with Shipping Corporation of India(SCI), the central PSU being the largest one. Apart from facilitating transportation of national and international cargoes, Indian maritime sector also provides a variety of other services such as cargo handling services, ship building and ship repairing, freight forwarding, light house facilities, training of marine personnel etc.

	1. Shipping Tonnage a perspective and scenario:
	At present, India has a total of 706 ships (466 coastal and 240 overseas) with 8.32 million gross tonnage (GT) and 13.78 million DWT (Deadweight). Despite growth in tonnage the percentage of cargo carried by Indian flag ships have reduced from 35.5% in 90-91 to about 15.1 % in 2002-03. As of now Indian flag is fluttering, the shipping tonneage growth has notched a record of 9.07 million gross tonnage (GT) as on August 31, 2007, this figure could well surpass the targeted 12 million GT by the end of the eleventh five- year plan period. With the optimistic freight market conditions, it is healthy for pace of growth. (Last year in the month of April GT was 8.47)

	Today we could see a huge movement of cargo out f India and secondly investment is seen in bulk and tanker area and demand for capsize charter hire has make it attractive. Coastal shipping is an area which is today a carrier with out hurdles Indian freight transport system carries approximately 1000 billion ton kilometers, the road transport system enjoys 60-65 % the rail 30-32% and coastal shipping by 6-7%.

	The modal share of coastal shipping in European Union is more than 40%. With Indian economy growing at 6-7%, the freight transport demand is likely to grow to 2000 billion tonne-km in next 8-10 years. As such, there is a need for integrated transport planning accompanied by modal shifts in favour of cost efficient mode such as coastal shipping. The need for modal shift arises mainly from the environmental concerns and the need to alleviate congestion, not to mention the economic return. Lack of integrated approach will only add to chaos on the road and rail, besides further distorting the modal mix.

	It would, therefore, be in the interest of the country to develop coastal shipping. Our goal should be to reduce the stress on road and rail and also on environment by diverting at least 5% cargo moved by rail and road as on today in the next 10 years.

	Shipbuilding and Shiprepair
	At present India has 23 shipyards, of which 7 are under administrative control of central Government, 2 with the State Governments and rest in the private sector. The present shipbuilding capacity of India is only 1,10,000 DWT which is highly inadequate as per the global shipbuilding standards. The productivity level of all the Indian shipyards are also low due to the lack of mechanization and till recently most of the Indian shipyards were incurring losses. However, the global shipbuilding industry at present is in uptrend, which coupled with shipbuilding subsidy from the Government, have led to turnaround of this sector.

	The geographical profile of shipbuilding industry evinces location change. Shipbuilding industries have shifted from Europe to Japan, Korea and Singapore in 70s and to China in 90s. Due to cost effective labour force and availability of ancillary industry, India now has reached a stage where growth pattern of Korea and China can be replicated locally. Recently, two of the private shipyards i.e. Bharti Shipyard and ABG Shipyard have raised funds for their capital expansion from the stock market. This will create positive environment for investments in this sector.

	Aids to Navigation
	Presently there are 169 Lighthouses, 1 Lightship, 48 Radar Transponder Beacons (Racons), 22 deep sea lighted buoys, 22 Differential Global Positioning System (DGPS) Stations and 6 Long Range Navigation (LORAN – C) Stations.With the introduction of DGPS, better than 5 meters accuracy in position fixing is available in the entire Indian waters.

	The Directorate of Light House and Light Ships is presently establishing 11new lighthouses. Further, one vessel traffic service system for the Gulf of Kachchh is under implementation.

	Inland Water Transport
	India has approximately 15,000 Kms. of navigable waterways out of which 3 stretches covering 2700 kms. have been declared as National Waterways. India IWT fleet comprises of around 350 vessels aggregating to 3.5 lakhs DWT.Trained manpower engaged in this sector is less than 1000. The productivity level of IWT fleet (measured in terms of tonne – km/DWT per annum) is below 5000 tonne – Kms per DWT. An increase in port capcity from 334 MT to 470 MT by the end of the Tenth five year plan envisaged. Investments of around Rs 163 bn planned. India is enabling a business opportunity.

	Dr. Abdul Kalam, in his inaugural speech in the International Seminar on Ship building Opportunities, in Ahmedabad on 29th Sept, 2007 organised by Gujarat Maritime Board empahsised that the country entering the 10% GDP which has just touched one trillion dollars, highlighted the “ Multi-dimensions of ship building”.has empahised the growth competitive Index ranking as 43rd.With the combined effort of R&D , Productivity and shaped policies will make it move at least to 10 in less than a decade for the overall competitiveness of the country, and spoke on improving competitiveness of shipping industries. He spoke on technological perspectives of India for ship building, and the rich human resources in the area of hydrodynamics, metallurgy, composites, non-caviting,propulsion technology, water tight vessel deigns, power generation and distribution systems, seawater desalination, electronic communication , astronavigation and surface preservation and the edge in the development of ship building.

	India is today the most vibrant and success stories highlight the destination India. So far the cargo handling capacity of the major ports is concerned, it is worth mentioning that till 2000-01, most of the ports were operating more than or near saturation levels of their handling capacities, resulting in high pre-berthing detention and turn round time of vessels. However, for the first time, the aggregate Port capacity in the Major Ports exceeded the cargo handled during the year 2000-01 as the capacity achieved a level of 291.45 million tonnes against 281.11 million tonnes of cargo handled. The capacity in the major ports as on 31-3-2005 was 397.50 million tonnes against which the ports handled traffic of 383.75 million tones in 2004-05.

	India Maritime 2007 will view to the happenings and opportunities and growth of the industry. Which is going to be held by International Business Conferences (IBC) on the 18th-19th December , 2007 at J.W.Marriott, Mumbai. The exhibition TECHNO ENTREPREURSHIP which is concurrent to the exhibition. For details contact: Ravi.Krishnamurthy, Conference Director, 022-67112405 or ravi@ibcinfo.com.

Designed ahd hosted by kiteindia.com