India’s Seaborne Trade To Cross 830 Million Tones Mark By FY17

The seaborne trade in India is expected to cross 830 million tones (mt) mark by 2016-17. According to an ASSOCHAM study, the trade is growing at a compounded annual growth rate (CAGR) of over 8% year on year.
“This would require massive investment to the tune of over Rs 17,000 crore as there is a need to augment the port capacity by over 140 mt from the current level of about 690 mt,” said DS Rawat, national secretary general of the industry body.
He further added that the private sector had a pivotal role to play in the growth of the seaborne trade. “The private sector participation is imperative for such huge investments in the shipping sector. Lack of level playing field for the private operators, hinterland connectivity, especially lack of co-ordination between road, rail and port authorities and proper risk allocation are certain key issues affecting port development in India. These issues must be addressed for enhancing and increasing port capacities and efficiency,” noted Rawat.
Emphasizing on the role of the government, the industry body stated that the government should facilitate the shipping industry to attract fresh investments in the sector. The study also revealed that nearly 41% of India’s fleet of ships is over 20 years old, thus indicating a slow rate of new fleet addition.
“This augurs well for the Rs 7,300 crore worth India’s shipbuilding and ship-repair industry as 20 years plus older ships require more frequent and extensive repair and maintenance. These make Indian fleets less competitive as young vessels below 15 years old are often preferred in international trade,” pointed out Rawat.