SWARNA

SUVARNAPOTA
POTA
IS N
E A
C U
O G
N U
D R IAS LS UI S
E S U E 8 T H D5 ET CH E M
A B E R
P R I L- 2 0 1 7

Quarterly
Newsletter of
From the Director’s desk
Department of Port
& Shipping

The Team Since the dawn of history India has participated in International
Since the dawn of history Indian geography has participated in international sea-borne commerce, thus Indian shipping industry has been exploring its potential. Today, India is set to compete in world's maritime sector with facilities at par with global standards. To
celebrate the growing enthusiasm of Indian maritime industry, April 5 has been marked as National Maritime Day since 5th April, 1964. The significance of the date is related to 1919, when navigation history was created when SS Loyalty, the first ship of the Scindia

Sea-Borne commerce. Thus, Indian shipping industry has been

Steam Navigation Company, journeyed to the United Kingdom.
Maritime Day is a time-honored tradition that recognizes one of our country’s most important industries.This day pays special tribute to the benefits that the maritime industry provides for the India, as well as different stakeholders who participated in carving the

Patrons exploring its potential. Today, India is set to compete in world's

shape of today's Indian Industry. A number of organizations including major port trusts do celebrate this day and thus add value to its significance every year. Although Indian maritime sector has to spread more, but to celebrate national maritime day always

Maritime Sector with facilities at par with global standards. To

motivates us towards our objective of being leaders in the world.

Prof. Utpal Ghosh CEO We in University of Petroleum & Energy Studies take pride in being a part of the journey by preparing maritime managers of the future
The Team celebrate the growing enthusiasm of Indian Maritime with the
I wish all the success
Dr. S J Copra—
steep growth of Indian Maritime Industry, April 5 has been
Chancellor
Patrons marked as National Maritime Day. The significance of the date is
Dr. Deependra Kumar
Dr. Shri Hari related to 1919, when navigation history was created when S.S.
Jha —Vice Chancellor
Dr. D. N. Pandey Loyalty, the first ship of the SCINDIA Steam Navigation
Dr. D. N. Pandey : Company, sailed to the United Kingdom.
Dr. T. B. Raju
Director S.o.B
Dr. S. K. Pokhriyal : Maritime Day is a time-honored tradition that recognizes one
Editor In Chief Dr Dayanand Pandey,
Associate Dean ( PG) of our country’s most important industries. This day pays special tribute
Prof. Mihir K. Das
Dr. Ruchi Tyagi: HOD to the benefits that the maritime industry provides for India, as well Dr Director
Dayanand Pandey,
School of Business
Transportation as different stakeholders who participated in carving the shape of today's
Director CoMES UPES
Associate Editor UPES
Prof . Abhijit Singh International trade. A number of organizations including Major Ports &
Editor Private Ports do celebrate this day and thus enhances its significance
Prof . Chandra Prakash
Prof. Mihir K. Das year on year. Although Indian maritime sector has to spread more, but to celebrating such occasions,
always motivates us towards our objective of being the world leaders.
Executive Editors
Executive Editors
Nasir Nafees
Vivek K. N. We, in University of Petroleum & Energy Studies, take pride in being a part of the journey by
Rehan Shahid preparing maritime managers of the future.
Ishan Pandey
Harsh Sangal
Purbesh Pande
Devansh Mishra
Pradeep Saini
From the Editor’s desk
Today we are publishing the second issue of the “Suvarna Pota” The first sea-
Suvarna in port was Lothal which was established in 2500 BC and we can see the port in apparently
Sanskrit is fine condition today. Today’s port managers are no lesser competent. Unfortunately we
Gold and often tend to forget the contribution of the maritime community in our economy partial-
Pota is a Secondary Story Headline
ly “because of the sea blindness”.
ship. Thus we In this issue we have got contributions from students ( both past and present)
who have or had joined the full time MBA Port and Shipping course this year and also
are looking
during last two years. We are grooming the present batches to become ace managers.
for a golden It is absolutely necessary that they appreciate and align with the pulse of the nation in
future while terms of maritime projects and Government’s determination to make India a leading Prof Mihir Das,
sailing on a Maritime Today
Commercial we are
entity going
in th ensuing to this newsletter on the eve (Industry
5 years. of NationalFellow
golden ship of These students have very bright future once they pursue & get committed Port and Shipping)
knowledge
Maritime Day which is 5th of April. This day is celebrated across In-
to the domain and simultaneously use the profuse resources that UPES provides for
dia to remember
them. Incidentally the
this branch maritime
(MBA-PSM) community
is in existence for the lastwho are
10 years toiling
and some hard
brilliant to
students
maintain the India’s glorious international tradition and business and
have passed out from this campus. This platform is expected to communicate to the maritime fraternity,
the Government of India and allied organisations that the university is determined to contribute to the
continuously
nation - in providing traveling across
skilled manpower who areSeven
absolutelySeas
neededfor morethethan
for ensuring Prime4000 years.
Minister’s dream
The
“Make in first
India”seaport
successful. was Lothal which was established in 2500 BC and

we can see the port in apparently fine condition still today. Today’s
port managers are not less. They run ports in India and are chosen
 SUVARNA POTA
From the Desk of Associate Dean (PG)
INSIDE
THE ISSUE
I take immense pleasure in felicitating the Department of Transportation and the team
PSM in bringing out the second issue of the Newsletter “ SUVARNA POTA” – the Golden Ship .

Port-Led Our School of Business is a cauldron of activity – where academics merge with culture
Developments : Future and innovation. We have more than 87 courses in the campuses and
in India : Mr. H K Dash each day is a day of evolving and unfolding. The students excel in
(IAS) - ex Secretary GOI
studies, manage other activities and finally add value to the industry.
& CEO Gujarat Maritime
Board The MBA Port and Shipping Division is not an exception.

PPP in Indian Ports : In the light of above, we look forward to constructive sugges-
Mr. M A Bhaskarachar - tions from all the readers so that it gets refined and meaningful with
~ Ex. Chairman & Man- passing days.
aging Director (Ennore Dr.. S K Pokhriyal
Port Limited) Associate Dean ( PG)
School of Business
Stargazing in the Fu-
ture of Ports & Ship-
ping: Prof Mihir Das ~
Industry Fellow Port &
Shipping FROM THE DESK OF HOD TRANSPORTATION ( SOB)
Dubai Diary : Shiva
Karthik ~ Management Dear Readers,
Trainee ( from UPES)
It is heartening to note that Prof Mihir Das is emphasizing on exposing
Sailing on a Container our students to real-life situations of the corporate world and facilitating
Ship - Sohan Mishra : interaction with the best minds in the industry and with those who have helped achieve their
( Student MBA PSM -
missions with strong ethical connotation through this e-Newsletter.
2017-19)
I earnestly hope that students of MBA –Port and Shipping will not only be intellectual equal to
My experience on a the best of their fellow students in other parts of the world but will also live a righteous life, care
Dynamic Positioning for their nation and be loyal to the supreme ruler.
Vessel ~ Purbesh Pande
( Student MBA - PSM:
2017-19) ‘Each soul is potentially Devine. The goal is to manifest this Divinity within by controlling
nature, external and internal’.
Booming Port Industry
in India - Ishan Pandey The success of the efforts of our Student-Faculty Fraternity is the result of the continued
MBA PSM ( 2016-18) co-operation and best wishes of all parents, well-wishers and friends. I am sure this will continue
in future also.
Enjoy your reading of the e-Newsletter. We also welcome interested readers to write for us. We
also invite you at our campus.
Sincerely,

Ruchi Tyagi
( Dr. Ruchi Tyagi)

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 3

Port Led Development—leveraging the coastline

H K Dash I.A.S. ( Ex CEO Gujarat Maritime Board) & Former Secretary GOI

Historically, Gujarat has been in forefront with respect to maritime trade and has a strong
lineage towards maritime activities. Gujarat’s rich maritime heritage traces to prehistoric
Indus Valley Civilization times wherein remains excavated shows evidence of thriving
ports and port based cities at Lothal and Dholavira. The Lothal, Dholavira, Bharuch,
Khambhat and Surat were the prominent ports within Gujarat. The Gujarat traded in beads,
ornaments, metal products etc. The remains of ancient cities show evidence of having
perfectly co-ordinated drainage systems and sewer management. Also the cities excavated
had designated market place in the city where traders used to gather to sell their goods. The
people use to trade with countries like Egypt, Bahrain, Mesopotamia, Africa and other West
Arabian countries. A dockyard at Lothal is believed to be one of the first dockyards of the
world and also was equipped with berth and service ships.

About Gujarat Maritime Board: To reach a

The Gujarat Maritime Board (GMB) is the first maritime board set up in India in order to port we must
develop, administer, operate and regulate the state’s port sector. Gujarat, with its 1600 Km
of coastline today boasts of 48 minor ports and 1 major port. Of these 48 ports, private ports set sail—Sail,
and captive jetties handle a majority of the cargo. GMB is known for implementing a not tie anchor
policy driven and innovative approach to maritime sector development. GMB is also a pioneer
in privatizing port development and allied services. at Sail not drift

- Franklin D
In December 1995, the state government set a precedent in
the country by announcing a comprehensive “Port Policy” for Roosevelt
the integrated and balanced port led development on the
Gujarat coast. This was the first such policy in India. Consequently,
in 1996, port of Pipavav in Gujarat became the first private port to
be set up in India. This was followed by the deciding
investor-friendly build, own, operate and transfer (BOOT)
principles by the state government in July 1997.

As a result of GMB’s efforts, many private players started entering the port sector; in
2001, the concession agreement was signed for the Mundra Port, which is one of the
largest ports in India today. In the same year, the first of its kind chemical terminal
was set up at Dahej. In 2004, first LNG terminal was
also set up at Dahej.

In 2004, first LNG terminal was also set up at Dahej.

The Government of Gujarat has also announced the
Captive Jetty Expansion Policy in 2008, Special Invest-
ment Region (SIR) Act in 2009, Shipbuilding policy in
2010 and LNG Terminal Policy in 2012. Currently,
Greenfield ports at Dahej, Nargol and Chhara are being
developed through private participation

Capacity and traffic handled

From a mere 3 million metric tons (MMTPA) in 1981-82, cargo throughput at GMB ports reached
17 MMTPA in 1995 and 41 MMTPA in 2000. In the last fifteen years, there has been a massive

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 4

growth, with throughput reaching 340 MMTPA in 2015 - 16, which accounted for nearly 32% of the
total cargo handled by all ports in India. Today, the cargo traffic at GMB’s non-major ports amounts
to about 73% of the non-major port traffic in India. While the capacity has increased from 164-
MMTPA in 2005-06 to 466-MMTPA in 2015-16 (CAGR of ~11%), The capacity utilization rate at
Gujarat non-major ports has increased from 66% in 2005-06 to 73%% in 2015-16. Also, the state ac-
counts for ~89% share of the Indian shipbuilding order book. The state possesses combined LNG
cargo handling capacity of 15 million tons.

Port based development

Port based development projects such as Kandla Port SEZ, Mundra SEZ, Reliance Port SEZ and
Petroleum, Chemicals and Petro – Chemicals Investment Region (“PCPIR”) accounting rapid indus-
trialization and economic growth of the region. Another crucial aspect of Gujarat’s port-led develop-
ment has been a continued focus on development of strategic as well as softer segments of the mari-
time industry. GMB, via its subsidiary Gujarat Ports Infrastructure & Development Co. Ltd.
(GPIDCL) is engaged in the process of developing a Gujarat Maritime University, as well as India’s
first dedicated Maritime Cluster in Gujarat. Other projects, which are in various phases of develop-
ment include: Ro – Ro and Ro – Pax Ferry Services, Integrated Port Management System (“IPMS”),
Marine Shipbuilding Parks, Floating Storage & Regasification Unit (“FSRU”) LNG Terminal; and
Bunkering Terminal.

Leveraging coastline
Coastal shipping is an ideal solution to help de-bottleneck India’s infrastructure and logistics
challenge. It is the cheapest and least polluting mode of transport (Rs 0.55 per tonne-km versus
Rs 0.90 for rail and over Rs 1.50 for road). With India’s road and rail infrastructure in most high
traffic areas running at over 100 per cent utilisation, there is urgent need to create additional capacity
Given land acquisition problems and other challenges, coastal shipping offers a relatively easier
option. It can significantly help improve energy security and carbon footprint of India. Gujarat with
its longest coastline and network of multiple ports can be used to transport goods through coastal
route. Dedicated coastal cargo handling facilities handling dry bulk, liquid bulk as well as container
cargo can be envisaged.

Gujarat’s coastline can be leveraged to boost tourism such as developing beach tourism at Mandvi,
Dwarka and Somnath, religious tourism at Dwarka and Somnath, cruise tourism at Dwarka-
Nageshwar-Bet Dwarka circuit, Lighthouse tourism at 12 locations as well as island tourism at 55
potential islands. Currently, feasibility study of island tourism development at Bet Dwarka, Siyal
Bet, Pancham Bela –Khadir Bet are underway.

The development of Chabahar port will give India access to mineral rich regions of Iran and access to
Afghanistan, Russia and Europe. Geographically, Gujarat’s ports have an advantage over other ports
in terms of proximity to proposed Chabahar port, which would result into free flow of goods between
Iran and Gujarat.

The effect of the Russian Port Agency ROSnet and its partner Companies taking over Vadinar, there
will be a sea change in Maritime Global relationship. This will facilitate Gujarat to play a key role
in North South international corridor.

That apart, in the backdrop of Sagarmala, non-major ports of the country will get a facelift not only
by way of rail connectivity, but in terms of Inter-State Maritime coordination. Upcoming ports like
Dighy, Jaigadh (Maharashtra), Goa, Vizingam (Kerala), Machlipatanam (Tamilnadu),
Durgarajpatanam, Kolachal, Dhamra and Sagar Island erc. in east coast will bring about Inter-State
Shipping and Trade in times to come.

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 5

SMARTER PPP FOR INDIAN PORTS

M A BHASKARACHAR - EX CMD ENNORE PORT

While many of the regulations in India have undergone sea change – the regulations in
the port sector country possibly need to be reviewed more deeply. The neighboring mari-
time nations like Myanmar, Bangladesh and Sri Lanka are advancing quite fast so far as
collaborations and partnerships are concerned. To be specific Hambantota has become a
real threat to some of India’s great dreams.

We need to appreciate that the right kind of regulatory framework and creating a synergy
with the market dynamics can get access to investments worth thousands of crores of
Singapore Port rupees through public-private-partnership (PPP) projects at India’s major ports or those
owned by the Centre. It can take away lots of worries of the authorities managing the
port sector in India.

Very recently one Major Port had scrapped a couple of PPP projects in August 2017. It is
“He who loves very easy to find faults on either side but one has to think of the long standing conven-
practice without tions – habits and mental makeup of the industry stake-holders that keep the administra-
tors enchained.
theory is like the

sailor who boards ship Once the defaults creep in, then it is very difficult to come out of the cycle. The fight
goes on sometimes over the contractually mandated revenue share or at times the ports
without a rudder and may delay in offering the right kind facilities that were considered useful / needed at the
beginning. Some very essential connectivity services are also missed at times.
compass and never

knows where he me At a port in East Coat of Indian four PPP projects were under stress from rate issues and
other tender terms, which could force termination in some cases. Therefore in generic
cast”
terms it seems that the “scenario analysis” is missing or inadequate – that creates such
- Leonardo da Vinci hurdles.

More than thirty PPP projects with an investment of about Rs. 20,000 crore are opera-
tional, while 20 more projects worth about Rs. 25,000 crore are under implementation.
True there are problems in every PPP project but it seems that with handling of such pro-
jects across last one decade must have provided enough experience to mature good reve-
nue generation for the partners in PPP.

Across the global industries we shall find that some of the PPP projects are under litiga-
tion or arbitration with the government. In India we find such things with the IPPTA also
– who had been vociferous from year 2000 – when the Indian Major Ports found their
competitors in Private Port investments in Maharashtra and Gujarat. They also had raised
issues against the TAMP in 2004.

Some of the rough edges involved rate setting, lack of dredging on time, delayed envi-
ronment and security clearance and insufficient yard space. Projects have also collapsed
due to non-compliance of contractual obligations by the port trusts. impact on finance
once the new investors starts ploughing back.

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 6

PPP in Ports : Continued

There is a continuing debate as whether major ports need to have more capacity when cargo vol-
ume growth is flat, or even declining owing to slow global trade. Therefore in one way the authori-
ties are under pressure to go in for more PPP projects – and on the other hand the statisticians are
providing a bleak picture saying that diminishing cargo volumes will have negative impact on fi-
nance once the new investors starts ploughing back.

The former head of a PPP terminal on India’s eastern coast said the blame for the crisis has to be
widely shared — among port trusts (the Central government) and the bidders. “But it is the consult-
ants who made the detailed project report who are mainly responsible,” he said. “Not to have

control over the

The so called experienced consultants also make ambitious forecasts – which prove untenable senses is like
soonest and that happened at one of the major ports. The full picture covering the intent and the
sailing in a
capacities of the egress and also the customs process and willingness to invest in taking out goods
also matter. rudderless ship,

bound to break
The MCA (Model Concession Agreement that varies between 100 and 250 pages) is considered to to pieces on
be so sacrosanct that it is never to be reviewed or amended during the continuity of 15-30 years. coming in contact
Even our constitution has been amended many times. As of September 2017, there have been 101
with the very first
(latest by GST Act) amendments to the Constitution of India since it was first enacted in 1950.
rock.”

*** Mahatma Gandhi

Jawaharlal Nehru Port (Maharashtra)

Pioneers in PPP

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 7

STAR-GAZING INTO FUTURE SHIPPING

Mihir Das – Industry Fellow (Port & Shipping)

Maritime challenges are being fundamentally transformed by new techno-

logical and geopolitical realities, shifting trade and energy patterns, and the rise
of unconventional threats. The fact that about 50 per cent of the maritime bounda-
ries in the world are still not demarcated, accentuates the challenges.
Numerous articles have come out during last two years and similarly hun-
dreds of studies have been undertaken to find what lies ahead. In this short span I
plan to make out a sketch so that the people connected with maritime industry
and even the students can find some clue to the future happenings.
Water covers more than seven-tenths of the planet’s surface, and almost
half the global population lives within 200 km of a coastline. It has been known
fact that 90 per cent of the world’s trade uses maritime routes. With countless
freighters, fishing boats, passenger ferries, leisure yachts, and cruise ships plying
the waters, there is a pressing need for right kind of maritime logistics and also
the focus on maritime security. But the major technological issues would relate to
Material Technology:
Changing the materials currently used forms a big part of the report. While met-
als will remain the dominant force for ship structures, there will be an opportunity
to refine their characteristics through what is known as microscale or Nano-scale
manipulation.
For example, implementing magnesium or calcium Nano-particles could
strengthen welds, while a new anti-corrosion coating will be used to better protect
vessels.
Green Ports & Green Ships:
Successful ports will differentiate themselves by leveraging technology that
maximizes port efficiency, takes a strategic approach to asset management, en-
hances security and resilience, and encourages port sustainability through man-
agement of environment and the bridge between the port and the society.

International Maritime Organisation (IMO) has been intensifying

their efforts in environmental rule-making in recent years. This no
doubt drives the entire industry in an inevitable direction – to
greener, cleaner solutions. As a result, ships and ports are demand-
ed to be more ‘green’ these days. Green ships consist of elements
from cleaner fuels to various green ship technologies to minimise
energy wastage, carbon output and seek to decrease negative im-
pact on marine biology.

Green ship is about marine biology, cleaner fuels, and energy

wastage minimization

I S S U E 2 — D E C E M B E R 2 0 1 7
 STAR GAZING –INTO FUTURE SHIPPING

Big Data:
With more and more data being collected from sources such as oceanographic data,
maritime accident data, port data and personal information, one question is: how can
this be analysed and used to improve shipping logistics?
The evolution of big data analytics creates the ability to use algorithms to look at cor-
relations between the different forms of data. When the correlation is spotted, new
algorithms will be established and applied automatically.

Robotics:
One topic that stirs up much discussion is the use of robots. One report predicts that
by 2030 three new types of robots will be used in commercial shipping: a learning
robot; one that can handle an asset – dubbed a practical robot; and a mini-robot, po-
tentially used for inspections in harsh environments, for example to identify and rec-
ord emissions and pollutants. Already the ports are using the AGV-s but the fit be-
tween the semi-automated environment and the automated one is still to be achieved.

Sensors: wireless monitoring

A new generation of sensor technologies will remove the need for regular visits to
remote locations. Sensors will be able to collect data autonomously and then relay this
information in real time.
Drones:
Many of you are aware of the different functions of the drones but the beauty is that
Maersk Line has used a drone to deliver cake in a birthday party on a ship deep in the
North Sea when the visibility was nil and the chill was near freezing.

Communications: the connected ship

The growth in communications – from Wi-Fi to 5G connectivity – will see the birth
of the ‘connected’ ship. This ship will allow operators to access live audio as well as
HD and 3D video from on-board recording devices, and remove the need for physical
on-board surveys.

Smart Ships:
The 38,800-metric ton bulk carrier, named Great Smart, started a weeklong trial on
Tuesday off Guangzhou and will be delivered at the end of this year to an unidentified
lessee, CSSC said in a statement.

It was designed primarily by Shanghai Merchant Ship Design and Research Institute
and built by Huangpu Wenchong Shipbuilding Co in Guangzhou. The two entities are
subsidiaries of CSSC.

I S S U E 2 — D E C E M B E R 2 0 1 7
PAGE 9

Dubai Diary
The Editor had a discussion with Shiva Karthik yesterday
morning.

Shiva was thrilled to learn that the MBA PSM was having a
regular newsletter and he promised to contribute in detailed
form in the next issue.

Shiva Karthik was a student of MBA Port & Shipping ( 2014

-16) batch and was selected by the Transworld Group for Du-
bai in January 2017 as a Management Trainee.

His has been found to be a good worker in the Group and the
management had once asked him for identifying some able
students from UPES Campus.

He talked about the large scale requirement of properly

trained managers in Dubai—ports and port led industries as
there had been a spate of M & A in port sector.

Due to political disturbance in other states in the West

Asia—lot of cargo and transshipments are likely to take place
in Dubai Region and the ports are gearing up for the same.

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 10

MBA PSM student recalls his working

days on a ship
Being an 4th engineer on board container vessel APL Salalah I started my voyage from
Singapore joining with 2nd engineer and Captain over Filipinos and Chinese respectively.
The vessel went on to sale in the forest to the ports of Ningbo in China followed by Hong
Kong, then going for the to Busan in South Korea followed by Naha in Japan and a return
voyage back to Singapore with for the sharing through the Swiss canal into the material see
two parts of European ports as an officer watch-keeper I was assigned the duty for morn-
ing 12 to 4 AM and Night Watch of 12 midnight to 0400 hours during normal times and “A Ship is Safe
at times we worked in a shift of morning 8 AM to 5 PM. I was happily keeping rounds At Harbor,
with a multinational crew of almost 14 different nationalities. I was the only Indian on But That’s
board. Not What
Shipping is a very different profession from all other jobs. Thus it allowed me to work Ships Are For”
with Multinationals on board who spoke different languages & had different cultures al- - William Shed

together but we teamed up nicely . The working cultures of strong teamwork is the focus
in maritime adventure .
I could share my knowledge simultaneously got a rare but different perspective of life

Sohan Mishra ( Ex. 4th Engineer on APL SALALAH) now a student in MBA PSM ( 17-19)

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 11

I loved rough Sea ~ Purbesh recalls

My experience in sailing in a dynamic positioning vessel in Bombay High was one of
a kind.

I used to work on 12 on 12 off shifts with my second engineer.

My shift was from 6 at evening to 6 in the morning.

We used to supply special cargoes like synthetic oil based mud , barite cement drill
water etc.

The main experience was to see the dynamic operations which was operated once the
ship arrived rigs to carry out cargo operations.
The ship had bow and stern thruster which would help the ship to hold its position
even in all conditions of winds tides and currents once the D mode was activated.

To operate in these conditions by making the ship hold its GPS position was very
risky and it was an experience to be learned.

But I am enjoying a cooler life in UPES now and preparing to take up greater
challenges in future.

Purbesh Pande
MBA PSM @ UPES

Purbesh and the ship he worked upon

I S S U E 2 — D E C E M B E R 2 0 1 7
PAGE 12

Booming Port Industry for India

The present government's policy in the Indian Ocean Region is a sea change from the
past. The maiden Maritime India Summit in Mumbai from April 14-16 provides an
appropriate backdrop to discuss a dilemma which will increasingly confront policy-
makers and money managers in New Delhi. Nothing illustrates this better than the
economic and diplomatic investments planned for project Sagarmala and the initiative
of SAGAR (Security And Growth for All in the Region).
The current Indian Government as part of its aggressive plans for port-led develop-
ment, is looking to add eight new major ports to the already existing 12 major ports.
Honourable Minister Mr. Nitin Gatkari has talked about three of the eight new addi-
tion, which are, at Wadhwan in Maharashtra, Sagar in Bengal and Colachel in Tamil
Nadu at the recently held Indian Maritime Summit, and also told that an investment
of 25000 crores is to be made toward the installation of these ports.
India’s older maritime infrastructure, especially its ports and cargo-handling capacity,
needed urgent revitalisation. This is being planned as Project Sagarmala, a necessary
plan to modernise India’s ports which are vital to both trade and economic growth. It
envisages massive infrastructure spending of Rs 70,000 crore to upgrade 12 major
ports, and of over Rs 1 trillion for capacity enhancement, modernisation and port-led
industrial development.
There is also an urgent need to build bridges of friendship with our maritime neigh-
bours for mutual benefit. This is encapsulated in SAGAR, a worthy government initi-
ative which recognises that a peaceful environment and calm seas are a prerequisite
for trade to flourish.
As matter of priorities. The six most important SAGAR initiatives are:
 The Bangladesh Pyaradeep water port project, despite reservations on silting,
dredging and even financial viability issues. The port is near Chittagong, which
China is helping to upgrade.
 The Kyaukpyu and Dawei ports in Myanmar. New Delhi can seize
the advantage from the change of government in Myanmar to invest in
projects solo or with allies like Japan, despite the Chinese head-start in
the construction of the Kyaukpyu port in the Rakhine province, which
can carry oil pipelines overland into China.
 Having lost Hambantota in Sri Lanka to Beijing, India should ac-
tively promote the petrochemical complex at Trincomalee, one of the
best natural harbours in the world.

 In the Maldives, India must rebuild bilateral confidence, so it re-

gains the privilege of being consulted in all strategic and maritime mat-
ters.

I S S U E 2 — D E C E M B E R 2 0 1 7
 PAGE 13

 The opportunity in Oman’s Duqm port on the

Arabian Sea Coast, beyond the energy route’s
choke-point of Hormuz. This may have been lost to
Kuwait, which is now building infrastructure in
Duqm, and where the UK’s Royal Navy will have a
permanent presence. Indian companies can partici-
pate in the project through sub-contracts.

 Finally, there is the long-overdue Rs 1.3 trillion

promise to develop the Chabahar port and its ener-
gy infrastructure – a project caught in the govern-
ment processes and inter-ministerial discussions in
New Delhi, and which China
was also interested in. Now it is
in full steam and the project is on.

None of this is possible unless New Delhi abandons its narrow accountant mindset “Man cannot
which demands immediate book-balancing, and discounts intangible gains from discover new
government expenditure. The Marshall plan for the successful post-World War II
reconstruction of Europe, and consequent US strategic advantage in that continent, is oceans unless he
the best example of strategic expenditure, the returns from which far exceeded any has the courage
financial losses incurred by the US. to lose sight of
The time is nigh for India to be expansive in its approach to regional funding out- the shore”.
lays. This will require a strategic decision – such as upgrading existing ports over ( Andre Gide )
building new ones under the Sagarmala plan because India’s trade has not expanded
commensurately. Instead, better to prioritize and fund SAGAR, which will provide
access to those strategic nations and be a balancing factor to China’s Indian Ocean
play.

Ishan Pandey
MBA Port & Shipping Management

I S S U E 2 — D E C E M B E R 2 0 1 7