Ports are gateway to development
Colombo port of Srilanka, largest in Asia
Singapore and Hong Kong known for ports
85% of Indian Global trade happens through ports
Provide immense employment
India’s long coastl ne is serviced by 14 major ports, 187 notified minor ports and intermediate ports.
Ports are under concurrent list.
Major ports are administered by the Central Govt Ministry of Shipping while non-major ones are managed by relevant dept. in state govt
Major ports are administered under Major Port Trust Act 1963 and non-major ports governed by state governments under the Indian Ports Act 1908
FDI 100 percent allowed under automatic route for ports
Roll-on Roll-Off ferry service was launched by Ministry of Shipping under Sagarmala Programme b/w Ghogha (GJ) and Dahej (GJ)

Major Port	Minor Port
Administered by Central Govt's Ministry of Shipping	Managed by relevant State govt
14 major ports West Coast 7 East Coast 7	187 notified minor ports
Tariff Authority for Major Ports decides maximum tariff charged by Major ports for cargo handling	Don fall under TAMP regulation and free to fix own rates

Indian Major ports

From east to west are: Haldia, Paradip, Vishakhapatnam, Ennore (private), Chennai, Tuticorin, Enayam (new one TN), Kochi, Panambur Port (Mangalore), Marmagoa, Nhava Sheva- Maharashtra, Mumbai Port, Kandla Port- Gujarat. Also Port Blair- Andaman

S.No	PORT	TYPE OF DOCK/PORT	State
1	Kolkata /Haldia	Riverine port, natural	WB	East
2	Paradip	Wet Dock, man-made lagoon	Odisha	East
3	Vishakhapatnam	Natural Harbour	AP	East
4	Chennai	Artificial Harbour; all weather	TN	East
5	Kamarajar(Ennore)	Artificial Harbour; private ;	TN	East
6	V.O.Chidambaranar (Tuticorin)		TN	East
7	Port Blair	Natural	A&N	East
8	Cochin/Kochi	Natural Port; Dry Dock; Willingdon island	KE	West
9	New Mangalore	Artificial; all weather; Lagoon Port	KA	West
10	Mormugao	Natural ; Protected ; Tidal Port	Goa	West
11	Mumbai	Natural	MH	West
12	JNPT/Jawahar Nehru, Nhava Shewa	Natural ; all weather; TI DAL PORT	MH	West
13	Deendayal/Kandla	Natural; Tidal Creek Port	GUJ	West
14	Enayam port project		TN	WEST
15	Vadhavan Port	Cabinet approved; landlord model	MH	WEST

Enayam port project

West coast
For development of this port, a Special Purpose Vehicle (SPV) will be formed with initial equity investment from the three Major Ports in Tamil Nadu i.e., V.O.Chidambaranar Port Trust, Kamarajar Port Limited and Chennai Port Trust.
The SPV will develop the port infrastructure including construction of breakwater, dredging and reclamation, ensuring connectivity links etc.
Projects like Sagarmala will also complement the new port at Enayam.

Vadhavan Port

Cabinet approved
It is based on landlord-tenant model
Special Purpose Vehicle will be formed with Jawaharlal Nehru Port Trust (JNPT) as the lead partner with equity participation equal to or more than 50% to implement the project.

Tariff Authority for Major Ports TAMP

PPP projects in Major ports operate on Revenue Sharing model and are regulated by Tariff Authority for Major ports (TAMP).

Revised Model Concession Agreement for PPP projects

Jan 2018, revised agreement
In India, PPP projects in Major ports operate on Revenue Sharing model and are regulated by Tariff Authority for Major ports
Features of Revised MCA

Exit clause: It provides an exit route to developers where they can divest their equity up to 100 per cent after completion of two years from the Commercial Operation Date
Lower land charges
Society for Affordable Redressal of Disputes - Ports (SAROD-PORTS)

Dispute resolution mechanism for port related disputes
This is similar to what we have for Road Highways

To provide for compensation to concessionaire in case of changes in Tariff Authority for Major ports guidelines, labour laws or environmental laws. [Change in law compensation]
Royalty to the developer will be charged on basis of per million tonne of cargo handled and will be linked to wholesale price index

LANDLORD PORT MODEL

Ownership of the port remains with port authority.
Infrastructure is leased to private firms that provide and maintain their own superstructure and install own equipment to handle cargo.
In return, the landlord port gets a share of the revenue from the private entity.

SERVICE PORT MODEL

Port authority owns the land and all available assets whether fixed or mobile and performs all regulatory and port functions.
In this model, the port trust is both landlord and the cargo terminal operator

Sethu Samudram Project

Pro-argument: Will reduce time and fuel consumption. Improve traffic @minor ports in South-East India

Anti-argument: marine biodiversity will be damaged + religious sentiments about Ram Sethu.

Sagarmala project

Under ministry of shipping

Objective:

Having a string of world class ports, which are to be well-connected industrial clusters in the hinterland.
Four pillars - Port modernization, Port connectivity, Port led industrialization, Coastal Community development
Reduce logistics cost and time for the movement of EXIM and domestic cargo.

Under this project

Ministry of Railways has decided to take up 21 port-rail connectivity projects
Indian Port Rail Corporation Limited (IPRCL). Undertakes 6 projects
- In order to execute the last mile connectivity, of the Major Ports, a Special Purpose Vehicle (SPV) IPRCL established under Companies Act 2013
- Administrative control under Ministry of Shipping
- 90% of equity of the company has been provided by the 11 Major Ports and 10% by the Rail Vikas Nigam Limited

Coastal Economic Zones CEZ

Coastal Berth scheme

Under Sagarmala programme, Ministry of Shipping
Provides financial assistance to Major/Non-Major Ports/ State Maritime Board/ State Governments for creation of infrastructure to promote movement of cargo/passengers by Sea/National Waterways

The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017

This Act will fulfill a long-standing demand of the maritime legal fraternity
Admiralty laws are those laws that deal with cases of accidents in navigable waters or involve contracts related to commerce on such waters
Repeals laws such as the Admiralty Court Act, 1861, the Colonial Courts of Admiralty Act, 1890.
Features

Admiralty jurisdiction

The jurisdiction of maritime claims will vest with respective High Courts and will extend up to the territorial waters of their respective jurisdictions
Before, admiralty jurisdiction applies to the Bombay, Calcutta and Madras High Courts which now extended to High courts in coastal states
The jurisdiction will be extendable by the Union Government notification upto exclusive economic zone (EEZ) or any other maritime zone or islands constituting part of India

It applies to every vessel irrespective of place of domicile or residence of owner. However, it does not apply to naval auxiliary, warships and vessels used for non-commercial purposes
Inland vessels and vessels under construction are excluded from its application. But it empowers Union Government to make it applicable to these vessels by notification

Among all claims in an admiralty proceeding, highest priority will be given to maritime claims, followed by mortgages on the vessel, and all other claims.
Courts may exercise admiralty jurisdiction against a person with regard to maritime claims.

The courts may order for the arrest of any vessel within their jurisdiction for providing security against a maritime claim which is the subject of a proceeding.
It also provides for protection against wrongful and unjustified arrest and has provision for transfer of cases from one High Court to another High Court.

Major Port Authorities Bill 2020

Major Port Authorities Board

Currently, ports are managed by Board of Port Trusts that have members appointed by the central government
This bill proposes for creation of Board of Major Port Authority for each major port which will succeed the existing Port Trusts
Composition

Chairperson, vice chairperson appointed by Central Govt on recommendation of committee
One member each from

State Govt
Railways ministry
Defence ministry
Customs department

3-4 independent members
One member representing the interests of employees of port authority

Powers

Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.
Rates fixation

Currently, Tariff Authority for Major Ports, established under the 1963 Act, fixes the scale of rates for assets and services available at port
This bill empowers this Board will determine the rates in consistent with provisions of Competition Act 2002
For PPP projects, board may fix rates for initial bidding process. But the appointed concessionaire will be free to fix the actual tariffs based on market conditions. The revenue share will be on the basis of the s pecific concession agreement.

Financial powers

Currently, Port Trust board has to seek permission of Central Govt to raise loans
This bill empowers this board to raise loans from any (i) Indian scheduled bank or financial institution, or (ii) any financial institution outside India that is compliant with all the laws. However, for loans above 50% of its capital reserves, the Board will require prior sanction of the central government.

Adjudicatory Board

The Bill provides for the central government to create an Adjudicatory Board
Functions of the Adjudicatory Board will include:

(i) certain functions being carried out by the Tariff Authority for Major Ports,
(ii) adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires,
(iii) reviewing stressed PPP projects,
(iv) looking into complaints received from port users regarding port services.

Central Major Port Authorities Bill 2016

Objective

Enable major ports to function like corporate entities

Features

To increase their functional autonomy, the ports have been delegated powers to raise loans and issue securities for the purpose of capital expenditure and working capital requirement
Ports will now be able to lease land for port-related use for up to 40 years, and for non-port related activities up to 20 years
Power of Central Govt. to take over the control of the Port Authority is limited to the event of grave emergency or in case of persistent default in performance of their duties
Switching to “Landlord-Tenant” Model< style='font-family:Calibri;font-size:12.0pt'> (where the govt. becomes owner & regulator while operation is in the hands private player).
Having an integrated approach to port development i.e. multi modal port development

Land Ports Authority of India (LPAI)

It is a statutory body under the, Department Of Border Management, Ministry of Home Affairs.
It aims to develop, sanitize and manage the facilities for cross-border movement of passengers and goods at designated points along the international borders of India
It is mandated to plan, develop, construct, manage and maintain Integrated Check Posts (ICPs)
Five Integrated Check Posts ICPs — are already functional

Attari in Punjab (Pakistan border),
Petrapole in West Bengal (Bangladesh border),
Akhaura in Tripura (Bangladesh),
Raxaul in Bihar (Nepal) and
Jogbani in Bihar (Nepal) —
Moreh in Manipur(Myanmar border)

Ship Breaking Industry

Under Ministry of Shipping
Also known as beaching or ship-recycling/dismantling sector

Shipbreaking code 2013

Recycling Plan, Worker Safety and Health, Ensure labour welfare

Hongkong convention 2009

Establishment of an appropriate enforcement mechanism for ship recycling, incorporating certification and reporting requirements.

Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009.

UN

IMO

Yes India

The convention aims to ensure that the ships after reaching the end of their operational lives do not pose any threats to human and environment.

Alang in Gujarat, is the largest shipbreaking site in India, facilitated by geographical advantages such as wide continental shelf, mud free coast and vast expanse of intertidal zone, making it feasible to accommodate big ships
In 2016, India dismantled over 300 ships, which is more than ship dismantling in Bangladesh, Pakistan and China
Significance

Economic: Provide huge quantum of re-rollable steel with less capital cost as compared to integrated steel plant.
Quality
Availability of technology: India is probably the only country that has the technique of re-rolling scrap into producing construction steel without having to first cast scrap as billets and ingots.
Western India have limited source of steel generation and Gujarat ship Recycling yard industry saves a lot of transportation cost for the steel sector industries.
India's share in the ship recycling business is around 30% at present. Aim is 50%

Recycling of Ships Act, 2019

Ship Breaking Industry
to provide for the regulation of recycling of ships by setting certain international standards and laying down the statutory mechanism for enforcement of such standards
Restricts and prohibits the use or installation of hazardous materials,

Applies irrespective of whether a ship is meant for recycling or not.
For new ships, such restriction or prohibition on use of hazardous materials will be immediate, that is, from the date the legislation comes into force,
Existing ships shall have a period of five years for compliance.
Restriction or prohibition on use of hazardous materials would not be applied to warships and non-commercial ships operated by Government
statutory duty on ship recyclers to ensure safe and environmentally sound removal and management of hazardous wastes from ships

Authorization before recycling
Surveyed and certified- Ready for recycling certificate according to Hongkong convention

Dry Ports / Inland Container Depots ICD

They are inland terminal, directly connected to a seaport by rail or road,
It provides similar services as that of a seaport such as handling, temporary storage, inspection and customs clearance for international freight etc
They are known to improve logistics, supply chain and reduce capacity constraints faced by sea ports

Coastal Economic Zones CEZ

CEZ are spatial economic regions comprising group of coastal districts/districts with strong port linkages to tap into synergies with planned industrial corridor projects
CEZ which could extend along 300-500 km of coastline and around 200-300 km inland from the coastline
Each CEZ will consist of multiple CEUs and more than one industrial cluster can be housed within a CEU.
These zones are expected to provide business-friendly ecosystem including ease of doing business, ease of exporting and importing, swift decisions on environmental clearances and speedy electricity connections
The idea is to attract large firms interested in serving export markets as they will bring with them capital, technology, good management practices and links to world markets which in turn create ecosystem around them in which small and medium firms will emerge and flourish
India‘s first mega oastal economic zone (CEZ) at the Jawaharlal Nehru Port in Maharashtra
Union Cabinet in 2016 had approved setting up of 14 mega CEZs under National Perspective Plan of Sagarmala Programme

No.	Proposed location for CEZ	State	Potential Industries
1	Kachch	Gujarat	Petrochemicals, Cement, Furniture
2	Saurashtra	Gujarat	Apparel, Automotive
3	Suryapur	Gujarat	Marine Clusters
4	North Konkan	Maharashtra	Power, Electronics, Apparel
5	South Konkan	Maharashtra, Goa	Refining, Steel, Food Processing
6	DakshinKanara	Karnataka	Petrochemicals
7	Malabar	Kerala	Furniture
8	Mannar	Tamil Nadu	Apparel, Refining
9	Poompuhar	Tamil Nadu	Leather Processing, Power
10	VCIC South	Tamil Nadu	Steel, Petrochemicals, Electronics, Shipbuilding
11	VCIC Central	Andhra Pradesh	Electronics
12	VCIC North	Andhra Pradesh	Food Processing, Petrochemicals, Cement, Apparel
13	Kalinga	Odisha	Petrochemicals, Marine Processing
14	Gaud	West Bengal	Leather Processing

*VCIC - Vizag Chennai Industrial Corridor

White shipping agreements

White shipping information refers to exchange of relevant advance information on the identity and movement of commercial non-military merchant vessel
It establishes an information network protocol that allows the navies of both countries to exchange information about ships in their oceanic territories.
Ships would be classified into white (commercial ships), grey (military vessels), and black (illegal vessels).
The Navy’s Inf rmation Management and Analysis Centre (IMAC) at Gurgaon would be the nodal centre for WSA
India has signed white shipping agreements with various nations such as the US, Singapore, France, Israel, Myanmar

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.