Note4Students
From UPSC perspective, the following things are important:
Mains level: Issues related to Merchant Shipping;
Why in the News?
The government is set to introduce the Merchant Shipping Bill, 2024, and the Coastal Shipping Bill, of 2024, aiming to drive critical reforms and deliver transformative changes to strengthen and revitalize the shipping industry.
Have the Merchant Shipping Act, of 1958, and the Coasting Vessels Act, of 1838 failed?
The Merchant Shipping Act, 1958, and the Coasting Vessels Act, 1838, do not meet contemporary maritime needs and regulatory requirements as follows:
- Regulatory Gaps: Significant gaps exist for offshore vessels, which account for nearly 50% of Indian-flagged vessels. The current framework fails to regulate these vessels adequately.
- Seafarer Welfare Limitations: Welfare provisions are restricted to Indian-flagged ships, neglecting the majority of Indian seafarers (85%) who work on foreign-flagged vessels.
- Lack of Legal Framework: There is no effective legal framework to regulate private sector participation in maritime training, leading to unauthorized institutions operating without oversight.
- Inadequate Implementation of International Conventions: The existing laws lack provisions to implement various international conventions that India has signed or plans to ratify.
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What are the key features of the New Merchant Shipping Bill 2024?
- Ease of Registration: The Bill allows for reduced ownership thresholds (from 100% to 51%) for Indian entities and permits foreign entities to hold shares in Indian vessels while ensuring majority ownership remains with Indians.
- Expanded Scope of Vessels: It broadens the definition of ‘vessels’ to include a variety of crafts (e.g., submersibles, barges), ensuring comprehensive regulatory oversight.
- Temporary Registration for Ship Recycling: Introduces provisions for temporary registration of vessels destined for demolition, facilitating operations in ship recycling hubs like Alang.
- Strengthened Coastal Security: Empowers authorities to issue instructions across all vessel categories to enhance coastal security.
- Integration with International Standards: Aligns with global best practices from leading maritime jurisdictions like the U.K., Norway, and Singapore.
What are some of the international maritime conventions that India has ratified?
- International Convention for the Safety of Life at Sea (SOLAS): Establishes minimum safety standards in the construction and operation of ships.
- International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW): Sets standards for training and certification of seafarers.
- Maritime Labour Convention (MLC): Focuses on the rights and welfare of seafarers, ensuring decent working conditions.
- International Convention on Civil Liability for Oil Pollution Damage (CLC): Addresses liability for oil pollution damage from ships.
- International Convention for the Prevention of Pollution from Ships (MARPOL): Aims to minimize pollution from ships, covering various aspects of marine pollution.
- Convention on Limitation of Liability for Maritime Claims (LLMC): Limits the liability of shipowners in case of maritime claims.
- Wreck Removal Convention: Provides a legal framework for the removal of wrecks to prevent marine pollution.
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Will the new Bills address maritime training and education as well?
Yes, the new Merchant Shipping Bill, of 2024, specifically addresses maritime training and education, aiming to fill regulatory gaps and ensure standardization.
- Establishment of a Legal Framework: The new Merchant Shipping Bill introduces clear legal provisions to regulate maritime training institutes, addressing the absence of such a framework in the existing law.
- Elimination of Unauthorised Institutes: It empowers the government to act against unauthorised maritime training institutes, ensuring only approved institutions operate and deliver high-quality, standardised education.
- Alignment with Global Standards: The Bill ensures maritime training aligns with international best practices, enhancing the employability and skills of Indian seafarers in the global maritime sector.
Way forward:
- Robust Implementation and Monitoring: Ensure effective enforcement of the new Bills by establishing transparent regulatory mechanisms, leveraging technology for compliance, and regular monitoring to address gaps swiftly.
- Stakeholder Engagement and Capacity Building: Foster collaboration between the government, private sector, and international maritime bodies to enhance infrastructure, promote innovation, and build capacity for sustainable growth in the maritime sector.
Mains PYQ:
Q What are the maritime security challenges in India? Discuss the organisational, technical and procedural initiatives taken to improve maritime security. (UPSC IAS/2022)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green Tug Transition Program (GTTP)
Why in the News?
The Union Minister of Port Shipping and Waterways has launched the standard operating procedures for Green Tug Transition Program (GTTP).
What is the Green Tug Transition Program (GTTP)?
- The GTTP aims to transition conventional fuel-based harbour tugs to greener, more sustainable alternatives.
- The program is a part of India’s broader efforts to decarbonize maritime operations and promote environmental sustainability in the maritime sector.
- The GTTP is also aligned with the ‘Panch Karma Sankalp,’ a strategic framework for enhancing India’s commitment to a greener and more sustainable maritime industry.
Key Features:
(1) Decarbonization of Maritime Operations
- Objective: Replace conventional tugs with green tugs powered by cleaner fuels like battery-electric, hybrid, methanol, and green hydrogen.
- Impact: Significant reduction in greenhouse gas emissions in Indian ports.
(2) Phased Implementation
- Phase 1 (2024-2027): Four Major Ports (Jawaharlal Nehru, Deendayal, Paradip, and V.O. Chidambaranar) will each procure or charter two green tugs.
- Technology: Initial tugs will be battery-electric with provisions for adopting newer technologies.
(3) Standardization and Compliance
- ASTDS-GTTP Standards: By 2040, all tugs in Indian Major Ports will comply with green standards, ensuring an eco-friendly fleet.
(4) Alignment with National Visions
- Maritime India Vision 2030: Supports goals like sourcing 60% of port power from renewable energy and reducing carbon emissions by 30% per ton of cargo by 2030.
- Maritime Amrit Kaal Vision 2047: Aims to reduce greenhouse gas emissions from port vessels by 30% by 2030.
PYQ:
[2023] Consider the following pairs:
| Port |
Well known as |
| 1. Kamarajar Port |
First major port in India registered as a company |
| 2. Mundra Port |
Largest privately owned port in India |
| 3. Visakhapatnam Port |
Largest container port in India |
How many of the above pairs are correctly matched?
(a) Only one pair
(b) Only two pairs
(c) All three pairs
(d) None of the pairs |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Vadhavan Port
Why in the News?
The Ministry of Ports, Shipping and Waterways has approved the project proposal for setting up a Major Port at Vadhavan, Palghar District of Maharashtra.
About Vadhavan Port Project
- The project involves the development of core infrastructure, terminals, and other commercial infrastructure through a public-private partnership (PPP) mode.
- The shareholding for the project is divided between the Jawaharlal Nehru Port Authority (74%) and the Maharashtra Maritime Board (26%).
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- The project aims to create a total capacity of 298 million metric tonnes per annum (MMTPA).
- Trade routes facilitated:
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Existing Major Ports in India
- India has 12 Major Ports: Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V.O. Chidambaranar (Tuticorin), Visakhapatnam, and Kamarajar Port Limited.
- Private Sector participation is allowed in Major Ports for specific projects/berths/terminals through concession agreements for a specific period via open competitive bidding on revenue share/royalty between the Concessionaire and the Major Port Authority.
- After the expiry of the concession period, the asset is handed over to the Port Authority.
Significance of Major Ports
- Major ports play a critical role in facilitating international trade and commerce.
- They serve as gateways for the import and export of goods, significantly contributing to the country’s economy.
- Ports generate substantial revenue for the government through customs duties, port fees, and other related charges.
- Ports facilitate international collaboration and partnerships, enhancing diplomatic and trade relations with other countries.
PYQ:
[2016] Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to sea by a long navigational channel?
(a) Andhra Pradesh
(b) Chhattisgarh
(c) Karnataka
(d) Rajasthan |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Nicobar Triangle, GNI Project
Why in the News?
- The opposition party has demanded the immediate suspension of all clearances granted to NITI Aayog’s Great Nicobar Island (GNI) Project.
- It alleged violations of due process, legal and constitutional provisions protecting tribal communities.
Great Nicobar Island: An Overview
- Geography and Ecology: Southernmost tip of India, part of the Andaman and Nicobar archipelago comprising 600-odd islands.
- Environment: Hilly, covered with lush rainforests, annual rainfall of around 3,500 mm.
- Biodiversity: Hosts numerous endangered and endemic species including the giant leatherback turtle, Nicobar megapode, Great Nicobar crake, Nicobar crab-eating macaque, and Nicobar tree shrew.
- Area: 910 sq km with mangroves and Pandan forests along the coast.
- Indigenous Communities:
- Shompen Tribe: Approximately 250 people live in interior forests, predominantly hunter-gatherers, classified as a Particularly Vulnerable Tribal Group.
- Nicobarese Community: Two groups – Great Nicobarese and Little Nicobarese, practice farming and fishing.
- Resettlement: The Great Nicobarese were resettled in Campbell Bay after the 2004 tsunami.
- Administrative Hub: Campbell Bay serves as the administrative hub, housing local offices of the Andaman and Nicobar administration and the panchayat.
Back2Basics: “Nicobar Triangle”
It is named after the Nicobar Islands, which are located at the northern apex of this triangular area.
The islands within the Nicobar Triangle include:
- Nicobar Islands: This group of islands belongs to India and is situated to the south of the Andaman Islands. They are known for their diverse flora and fauna and are inhabited by indigenous tribes.
- Andaman Islands: Located to the north of the Nicobar Islands, the Andaman Islands are also part of India. They are well-known for their lush forests, coral reefs, and indigenous tribes.
- Indonesian Archipelago: To the south and southeast of the Nicobar Islands lies the Indonesian archipelago, which includes thousands of islands spanning a vast area between the Indian and Pacific Oceans.
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What is GNI Project?
The GNI Project refers to the “Holistic Development of Great Nicobar Island,” a proposed mega project being piloted by NITI Aayog.
- Implementing Agency: The project is to be implemented by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO).
- Historical Context: Development plans for a port in Great Nicobar date back to the 1970s, aimed at leveraging its strategic location near the Malacca Strait.
- The project aims to develop the southern end of the Andaman and Nicobar group of Islands in the Bay of Bengal by constructing –
- Transshipment port
- Dual-use military-civil international airport
- Power plant (450 MVA gas and solar-based) and
- A township over a span of 30 years on more than 160 sq. km of land, of which 130 sq. km is primary forest
Features of the Project
- Transshipment hub of the East: The proposed port will allow Great Nicobar to participate in the regional and global maritime economy by becoming a major player in cargo transshipment.
- Naval control: The port will be controlled by the Indian Navy, while the airport will have dual military-civilian functions and will cater to tourism as well.
- Urban amenities: Roads, public transport, water supply and waste management facilities, and several hotels have been planned to cater to tourists.
Significance of the project
- Economic significance: The proposed port would allow GNI to become a significant player in cargo transhipment, as it is positioned equidistant from Colombo, Port Klang (Malaysia), and Singapore.
- Strategic significance: The proposal to develop GNI has been on the table since the 1970s, and it has been highlighted repeatedly as a crucial element for national security and consolidation of the Indian Ocean Region.
- In recent years, the escalating Chinese presence in the Indian Ocean has added greater urgency to this imperative.
Issues with the Project
- The project entails the deforestation of 130 sq km, and felling 10 lakh trees, threatens biodiversity at Galathea Bay, displaces indigenous tribes, lacks thorough impact assessments, and poses seismic risks to vulnerable communities.
Due-process Violations highlighted by the ‘Opposition’
(1) Did not recognise the grant ownership: The island administration did not recognise or grant ownership of any forest land to local tribespeople as per FRA, a requisite step under the Forest Conservation Rules, 2017, before Stage-I clearance is granted.
- This is despite the fact that Rule 6(3)(e) of Forest Conservation Rules-2017 (FCR) requires that any diversion of forest land first requires the District Collector to recognise and vest rights to locals under the FRA.
- The legislation allows forest communities the right to control and manage the use of the forest land over which they hold titles, and their consent is mandatory for diverting it.
(2) Inconsistencies with Stage-I Clearance: The Stage-I clearance for the project was granted in October 2022, two years after the application was received. Monthly progress reports show that the district administration did not process any claims over forest land under the FRA in the 26 months since project sanction.
(3) Withdrawal of Consent: Weeks after the Stage-I clearance was granted, the Tribal Council at Campbell Bay withdrew the consent granted by the Gram Sabha.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: About Generalised System of Preferences (GSP)
Mains level: Trades and Relations; Changing Geopolitics of the World;
Why in the News?
It is widely believed that renewing the Generalised System of Preferences (GSP) program would pave the way for comprehensive U.S.-India trade negotiations, potentially elevating the bilateral trade relationship to new heights.
What is the ‘Generalised System of Preferences (GSP)’ Program about?
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- The Generalised System of Preferences (GSP) is a trade initiative by developed countries to aid developing countries.
- Nearly all developed countries have their versions of the GSP, tailored to their economic and policy goals.
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- It involves reducing tariffs on imports from these countries, aiming to stimulate their economic development. (It is not formally part of the World Trade Organization).
- Origin and its Evolution:
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- During the 1960s: The idea of the GSP emerged during the 1960s as part of broader efforts within the United Nations Conference on Trade and Development (UNCTAD) to help developing countries gain better access to markets in developed countries.
- During 1968: UNCTAD proposed the GSP as a mechanism to offer non-reciprocal, non-discriminatory tariff preferences to developing countries, aiming to promote their economic growth and industrialization.
- During 1974: The US officially established its GSP program under the Trade Act of 1974. This act authorized the U.S. to provide duty-free treatment for selected products imported from designated beneficiary developing countries (BDCs).
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The Significance of Renewing the GSP:
- US Factor: The GSP program is unique because it requires periodic reauthorization by Congress. This program of the U.S. expired in 2020 and has not yet been renewed, despite bipartisan support.
- For Stability in the Market: Renewal is challenging in a polarized political environment but is crucial for maintaining stable market access for developing countries.
- For Diversification: The GSP supports small businesses and women-owned enterprises, encouraging economic empowerment and diversification away from Chinese imports.
- To bring Reform: It will promote labor and environmental reforms and reduce tariff costs for American businesses, particularly small and medium-sized enterprises.
Significance of US – India Trade Relationship:
- Broader the Trade agreement: The U.S. and India have a significant trade relationship, with bilateral trade worth around $200 billion. Renewing the GSP could facilitate further negotiations and potentially lead to a broader trade agreement.
- Need for GSP renewal: Before the GSP expired, the U.S. and India were close to a trade deal covering various sectors including medical devices, agriculture, ethanol, and IT products.
- Despite ongoing trade dialogues, the U.S. is currently not negotiating new Free Trade Agreements (FTAs), making GSP renewal a key tool for enhancing trade relations.
- A renewed GSP could cover multiple areas such as labour rights, environmental laws, and regulatory practices, fostering a more robust and ambitious trade partnership.
- In the Indo-Pacific region.
- It can significantly boost trade and economic cooperation between the two countries.
- It would signal a mutual commitment to deepening their trade relationship and addressing broader economic and regulatory issues.
Way forward:
- Utilize GSP as a Negotiation Tool: Leverage GSP renewal as a platform to initiate broader trade negotiations between the U.S. and India, potentially leading to a more comprehensive trade agreement.
- Focus on Strategic Sectors: Identify and prioritize sectors such as technology, pharmaceuticals, and agriculture where both countries have mutual interests and complementary strengths.
Mains PYQ:
Q “What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem (UPSC IAS/2019)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Paradip and other major sea-ports
Mains level: NA
Why in the news?
Paradip Port in Odisha has made history by becoming India’s largest major port in terms of cargo volumes, surpassing Deendayal Port Authority in Gujarat during FY24.
About Paradip Port
- Paradip Port is situated at the confluence of the Mahanadi River and the Bay of Bengal in the Jagatsinghpur district of Odisha.
- It has a natural deep-water harbor, allowing it to accommodate large vessels and handle bulk cargo efficiently.
- The port was commissioned in 1966 to serve as a gateway for the maritime trade of eastern India.
- Paradip Port Trust, a statutory body under the Major Port Trusts Act, 1963, manages and operates the port.
Key Features of the Port
- Infrastructure: It is equipped with modern facilities for handling a variety of cargo, including dry bulk, liquid bulk, containerized cargo, and general cargo.
- Deep-Draft Port: The port has extensive berthing facilities and cargo-handling equipment capable of handling millions of tonnes of cargo annually.
- Strategic Importance: Paradip Port serves as a vital link for the export and import trade of eastern and central India, contributing significantly to the region’s economic development.
- Connectivity: The port is well-connected to major cities and industrial centers in Odisha and neighbouring states through road and rail networks.
Key Feats Achieved
- Cargo Throughput: Paradip Port achieved a record-breaking cargo throughput of 145.38 million metric tonnes (MMT) in FY2023-24, surpassing Deendayal Port.
- Coastal Shipping Traffic: The port recorded the highest-ever coastal shipping traffic of 59.19 million metric tonnes, showcasing a growth of 1.30% over the previous year.
- Thermal Coal Handling: Thermal coal shipping reached 43.97 million metric tonnes, marking a growth of 4.02% over the previous year.
- Revenue Growth: Operating revenue crossed Rs 2,300 crore in FY24, reflecting a notable increase of 14.30% compared to the previous fiscal.
Driving Factors of this Success
- Enhanced Operational Efficiency: Mechanised coal handling plant operations were optimized, resulting in the highest handling of thermal coal at 27.12 million tonnes.
- Productivity Improvement: Paradip Port improved berth productivity to 33,014 MT, the highest among all ports, showcasing a growth of 6.33% over the previous financial year.
- Rake Handling and Ship Movements: The port handled 21,665 rakes and 2,710 ships during FY24, registering significant year-on-year growth in both metrics.
Future Prospects
- Capacity Expansion: With a current capacity of 289 million tonnes, Paradip Port is poised to exceed 300 million tonnes capacity in the next 3 years with the commissioning of the Western Dock project.
- Strategic Location: Located near a mineral-rich hinterland, Paradip Port remains a strategic asset for India’s maritime trade and economic growth.
PYQ:
2017:
What is the importance of developing Chabahar Port by India?
(a) India’s trade with African countries will enormously increase.
(b) India’s relations with oil-producing Arab countries will be strengthened.
(c) India will not depend on Pakistan for access to Afghanistan and Central Asia.
(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.
Practice MCQ:
It is situated at the confluence of the Mahanadi River and the Bay of Bengal. It has a natural deep-water harbor, allowing it to accommodate large vessels and handle bulk cargo efficiently.
Which sea port in Odisha is being talked about by the above description?
(a) Haldia
(b) Gopalpur
(c) Belikeri
(d) Paradip |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Andaman and Nicobar Islands (ANI), Holistic Development of Great Nicobar Island project
Mains level: Holistic Development of Great Nicobar Island project and related concerns
Central Idea
- The ₹70,000 crore Holistic Development of Great Nicobar Island project raises concerns about its ecological impact and the Union government’s hasty clearances, while its feasibility and sustainability remain questionable.
- The Holistic Development of Great Nicobar Island project is a major infrastructure development initiative launched by the Indian government in 2020.
- The Union Ministry of Environment, Forest and Climate Change (MoEFCC) has cleared the way for the ‘Holistic Development of Great Nicobar Island project.
- The project aims to transform the Great Nicobar Island, the largest island in the Nicobar group of islands in the Bay of Bengal, into a modern, sustainable, and self-sufficient territory.
- The project includes an international transhipment port, an international airport, a gas and solar-based power plant, and an ecotourism and residential township.
Environmental and Ecological Concerns
- Quick Clearances and Exemptions: The project’s quick approvals, clearances, exemptions, and de-notifications indicate the Union government’s keenness to implement it.
- Urbanization and Biodiversity: The project is expected to attract a population equal to the entire island chain, with potential negative impacts on the region’s marine and terrestrial biodiversity.
- Biosphere Reserve and Tribal Reserves: The island was declared a biosphere reserve in 1989 and is home to vulnerable tribal communities, such as the Nicobarese and Shompen.
Feasibility and Sustainability Issues
- Hinterland Economic Activities: A successful transhipment hub requires viable hinterland economic activities, which may be wishful thinking in Great Nicobar.
- Afforestation and Coral Reef Translocation: The far-field afforestation recommendation and coral reef translocation are questionable compensation methods.
- Tectonic Instability: Great Nicobar Island’s proximity to the Ring of Fire and its history of earthquakes raise concerns about the feasibility of developing an urban port city.
Facts for Prelims: Andaman and Nicobar Islands (ANI)
- Location: Located between 6° and 14° North Latitude and 92° and 94° East Longitude lie the Andaman and Nicobar Islands, a union territory in India.
- Two groups of Island: It consists of two groups of islands. The islands located north of 10° north latitude are known as Andaman while islands located south of 10° north latitude are called Nicobar.
- The Andamans: More than 300 islands make up the Andamans. North, Middle, and South Andaman, known collectively as Great Andaman, are the main islands;
- The 10- degree channel: The 10-degree channel which is about 145 km long separates Little Andaman in the south from the Nicobar Islands.
- The Nicobars: The Nicobars consists of 19 islands. Among the most prominent is Car Nicobar in the north; and Great Nicobar in the south. About 90 miles to the southwest of Great Nicobar lies the northwestern tip of Sumatra, Indonesia.
- Formation: Both the Andaman and Nicobar groups are formed by the above-sea extensions of submarine ridges of mountains and are a part of a great island arc. The highest peak is 2,418 feet at Saddle Peak on North Andaman, followed by Mount Thullier at 2,106 feet on Great Nicobar and Mount Harriet at 1,197 feet on South Andaman. Barren island, the only known active Volcano in south Asia lies in the Andaman Sea. In the late 20th and early 21st centuries, there were volcanic eruptions on Barren Island.
- Andaman Terrain: Formed of sandstone, limestone, and shale of Cenozoic age, the terrain of the Andamans is rough, with hills and narrow longitudinal valleys. Flat land is scarce and is confined to a few valleys.
- Nicobar Terrain: The terrain of the Nicobar is more diverse than that of the Andamans. Some of the Nicobar Islands, such as Car Nicobar, have flat coral-covered surfaces with offshore coral formations that prevent most ships from anchoring. Other islands, such as Great Nicobar, are hilly and contain numerous fast-flowing streams.
- Great Nicobar is the only island in the territory with a significant amount of fresh surface water.
- Climate: The climate of the Andaman and Nicobar Islands is tropical but is moderated by sea.
Conclusion
- The Great Nicobar Island project’s ecological and environmental costs, along with its questionable feasibility and sustainability, raise concerns about India’s commitment to conservation, sustainability, and green development models. It is crucial that the green developmental model becomes the guiding principle for future economic activities, ensuring that growth does not result in irretrievable loss of natural capital.
Mains Question
Q. Recently Union Ministry of Environment, Forest and Climate Change (MoEFCC) has cleared the way for the Holistic Development of Great Nicobar Island project. In this backdrop, discuss environmental and ecological concerns and sustainability issues.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Vizhinjam Port Project
Mains level: Transshipment hub: Economic potential
Kerala’s ambitious Vizhinjam port project for a transshipment container terminal is caught in protests and violence.
Vizhinjam Port Project
- In 2015, the Adani Group signed a concession agreement with the Kerala government to build India’s first mega transshipment container terminal at Vizhinjam near Thiruvananthapuram.
- The ₹7,525 crore project — an all-weather deep-sea port with a depth of 24 meters — can service large megamax-sized container ships.
- This natural port has no littoral sedimentation, obviating the need for periodic dredging and lowers maintenance costs.
- The port, which is well-connected to the hinterland, will handle 1 million twenty-foot equivalent units in Phase-I and another 6.2 million TEUs when completed.
Significance of the project for India?
- Transshipment hub: The Vizhinjam Port holds the potential to attract a large share of container transshipment traffic that is now handled by Colombo, Singapore or Dubai.
- Important shipping lane: It located just off the International Shipping Lane and close to the East-West Shipping Axis.
- Cargo handling: A large share of India’s exports and imports that are now transshipped through these international ports can be handled at Vizhinjam.
- Reducing logistic costs: It would mean a sharp reduction in shipping costs and lead time. This will go a long way in reducing overall logistics costs and making manufacturing competitive.
- Employment generation: It will also create thousands of jobs – directly and otherwise.
Reasons for protests
- Local fishermen fear displacement and loss of livelihood. They blame higher tides and increasing coastal erosion on the project.
- Protests has some leftist leaning inherently opposing every development project.
- A Latin Catholic Church has been at the forefront of the protests.
- Many right-wing outfits have thrown their weight behind the project and want its quick completion.
- They blame foreign funding for what they call ‘anti-development’ protests.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Great Nicobar Islands
Mains level: Read the attached story
The Ministry of Environment, Forest and Climate Change gave environmental clearance for the ambitious Rs 72,000 crore development project on the strategically important Great Nicobar Island.
About the Great Nicobar Development Project
- A “greenfield city” has been proposed, including an:
- International Container Transhipment Terminal (ICTT),
- Greenfield international airport,
- Power plant, and
- Township for the personnel who will implement the project
- The project is to be implemented in three phases over the next 30 years.
When was the project incepted?
- The proposal to develop Great Nicobar was first floated in the 1970s, and its importance for national security and consolidation of the Indian Ocean Region has been repeatedly underlined.
Scope of the project
- A total 166.1 sq km along the southeastern and southern coasts of the island have been identified for project along a coastal strip of width between 2 km and 4 km.
- Some 130 sq km of forests have been sanctioned for diversion, and 9.64 lakh trees are likely to be felled.
- Development activities are proposed to commence in the current financial year, and the port is expected to be commissioned by 2027–28.
- More than 1 lakh new direct jobs and 1.5 lakh indirect jobs are likely to be created on the island over the period of development.
Features of the Project
- Transshipment hub of the East: The proposed port will allow Great Nicobar to participate in the regional and global maritime economy by becoming a major player in cargo transshipment.
- Naval control: The port will be controlled by the Indian Navy, while the airport will have dual military-civilian functions and will cater to tourism as well.
- Urban amenities: Roads, public transport, water supply and waste management facilities, and several hotels have been planned to cater to tourists.
Why need such project?
- Geostrategic advantage: The Island has a lot of tourism potential, but the government’s greater goal is to leverage the locational advantage of the island for economic and strategic reasons.
- Critical shipping chokepoint: Great Nicobar is equidistant from Colombo to the southwest and Port Klang and Singapore to the southeast, the region through which a very large part of the world’s shipping trade passes.
- Huge source of revenue: The proposed ICTT can potentially become a hub for cargo ships travelling on this route.
- Countering Chinese presence: Increasing Chinese assertion in the Bay of Bengal and the Indo-Pacific has added great urgency to this imperative in recent years.
Malacca Dilemma
In recent years, China’s efforts to expand its footprint in the Indian Ocean Region to overcome its ‘Malacca Dilemma’ (China’s fear of a maritime blockade at the Straits of Malacca) and fulfil its ‘Maritime Silk Road’ ambitions have fuelled apprehensions about freedom of navigation in these waters.
Issues with the Project
- Ecological damage: The proposed massive infrastructure development in an ecologically important and fragile region, including the felling of almost a million trees, has alarmed many environmentalists.
- Threats to marine ecosystem: The loss of tree cover will not only affect the flora and fauna on the island, it will also lead to increased runoff and sediment deposits in the ocean, impacting the coral reefs in the area.
Damage control measures by the govt
- India has successfully translocated a coral reef from the Gulf of Mannar to the Gulf of Kutch earlier.
- The Zoological Survey of India is currently in the process of assessing how much of the reef will have to be relocated for the project.
- The government has said that a conservation plan for the leatherback turtle is also being put in place.
- The project site already is outside the eco-sensitive zones of Campbell Bay and Galathea National Park.
Conclusion
- Given its physical location, the A&N Islands are the natural platform for collaboration between India and Southeast Asia.
- By most accounts, political will in India and other countries to develop these islands is high.
Back2Basics: Great Nicobar Islands
- Great Nicobar, the southernmost of the Andaman and Nicobar Islands, has an area of 910 sq km.
- It has tropical wet evergreen forests, mountain ranges reaching almost 650 m above sea level, and coastal plains.
- The A&N Islands are a cluster of about 836 islands in the eastern Bay of Bengal, the two groups of which are separated by the 150-km wide Ten Degree Channel.
- The Andaman Islands lie to the north of the channel, and the Nicobar Islands to the south.
- Indira Point on the southern tip of Great Nicobar Island is India’s southernmost point, less than 150 km from the northernmost island of the Indonesian archipelago.
- Great Nicobar is home to two national parks, a biosphere reserve, and the Shompen and Nicobarese tribal peoples, along with ex-servicemen from Punjab, Maharashtra, and Andhra Pradesh who were settled on the island in the 1970s.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: NA
Mains level: Sustainable coast management
Context
- It is politically hard, but developmentally critical, to run port development projects with coastal management sustainably.
- A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manchester and Duluth; these access the sea via rivers or canals.
What is meant by port management?
- A port management analysis involves an understanding of the port conditions, including intra-port distribution, and routes and hinterland connections outside the port.
Why ports are important?
- Ports infrastructure is key to the development of any nation. India has a coastline spanning about 7,500 km. around 90 percent of India’s external trade by volume and 70 percent by value are handled by ports.
What are concerns with port projects?
- Displacement: Some 350 families that have lost homes to coastal erosion last year, and those living in makeshift schools and camps are just a foretaste of things to come if coastal erosion and extreme cyclones continue unabated.
- Ecological impact: A further danger is an irreversibly destroyed ecology, triggering deadlier hazards of nature. Ports without adequate safeguards in a highly delicate ecology unleash destruction on marine life and the livelihoods of the local population.
- Coastal erosion: Visakhapatnam and Chennai show how siltation, coastal erosion and accretion can be exacerbated by deepening of harbour channels in ecologically sensitive areas.
- Oil spills: During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards.
- Ecosystem threat: The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems
- Impact on fisheries: Dredging cause’s environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries
Value addition example
A just published study shows that during 2006-20, the sea gobbled some 2.62 square kilometres or close to 650 acres from the Thiruvananthapuram coast alone.
Steps to take
- Compensation: The first order of business, as in infrastructure projects worldwide, is that the project provides compensation to the displaced people and restores their rights.
- Reversing marine damage: Second, the gross neglect of the damage to invaluable marine biodiversity must be redressed with an acceptable EIA, including inputs from experts in biology, ecology, and oceanography.
- Safeguard to place: Third, there needs to be an independent assessment of safeguards that port authorities must put in place as a precondition for any further construction.
- Blue Economy:Blue Economy as a concept includes all the economic activities related to oceans, seas, and coastal areas and emerges from a need for integrated conservation and sustainability in the management of the maritime domain.
Way forward
- Master plan: Countries should adopt a National Long-term Mater plan addressing the aspects of smarter, greener, safer sustainable port development and productivity improvement.
- Planning: Port development and investment should be driven by setting specific and realistic goals, such as building a stable infrastructure focused on reducing trade costs and contribute to achieving sustainable transport.
- Cooperation of multiple sectors: In order to establish a comprehensive port development master plan, cooperation with financial, environmental, technical, energy, transportation and urban development authorities is essential and must reflect the needs of users, including shippers and shipping lines.
Conclusion
- To address existing challenges, we should provide research, analysis and technical assistance to help ports and the maritime transport sector especially in developing countries to improve operations and become more sustainable and resilient to crises, including climate change.
Mains question
Q. What do you understand by sustainable port development and port productivity? Discuss the challenges in achieving the same along with way forward.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Vizhinjam Port Project
Mains level: Port-led development in India
Vizhinjam near Thiruvananthapuram, is on the boil due to the under-construction Vizhinjam Port Project, from both sea and land.
Vizhinjam Port Project
- The Vizhinjam International Transhipment Deep-water Multipurpose Seaport is an ambitious project taken up by Government of Kerala.
- It is designed primarily to cater container transhipment besides multi-purpose and break bulk cargo.
- The port is being currently developed in landlord model with a Public Private Partnership component on a design, build, finance, operate and transfer (“DBFOT”) basis.
Why protests are erupted?
- The protestors have been opposing the construction work by the Adani Vizhinjam Port Private Limited.
- Adani group is developing the port on DBFOT basis.
What lies at the heart of the protest?
- According to fisherfolk, the port work has aggravated the coastal erosion along the coast of Thiruvananthapuram.
- A scientific study to assess the impact of the port work on the shoreline has to be conducted urgently by stopping the construction.
- Further, around 300 families along the coastline were shifted to relief camps after their houses were destroyed due to high-intensity coastal erosion.
- The protesters demand a comprehensive rehabilitation package, an assured minimum wage when the sea turns rough due to inclement weather and subsidised kerosene for boats.
Why the Vizhinjam project is considered important?
- The port is located on the southern tip of the Indian Peninsula, just 10 nautical miles from the major international sea route and east-west shipping axis.
- It has a natural water depth of more than 20 m within a nautical mile from the coast.
- The Vizhinjam port is likely to play a pivotal role in the maritime development of the country and Kerala.
- The commissioning of the port is expected to leverage the growth of 17 minor ports in the State along with creating thousands of employment opportunities.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Port of Ningbo-Zhoushan
Mains level: Not Much
China has partially shut down the world’s third-busiest container port, the Ningbo Port, after a worker there tested positive for Covid-19.
Port of Ningbo-Zhoushan
- This port is the busiest in the world in terms of cargo tonnage.
- It handled 888.96 million tons of cargo in 2015.
- The port is located in Ningbo and Zhoushan, on the coast of the East China Sea, in Zhejiang province on the southeast end of Hangzhou Bay, across which it faces the municipality of Shanghai.
- The port is at the crossroads of the north-south inland and coastal shipping route, including canals to the important inland waterway to interior China, the Yangtze River, to the north.
- The port consists of several ports which are Beilun (seaport), Zhenhai (estuary port), and old Ningbo harbour (inland river port).
What is the potential impact of the closure?
- Despite the diversion of shipments to other terminals, experts are anticipating a backlog of consignments with average wait times being expected to rise.
How is it likely to affect global trade?
- In the aftermath of Covid-19, global supply chains have remained fragile mainly on account of closures and lockdowns that affected both the manufacturing and the logistical segments of the chain.
- This has not only resulted in a growing backlog of shipments but has also caused freight charges to go up as demand outgrew the supply.
- Extended closure of one of the biggest terminals at the third-busiest port in the world could further exacerbate the stress in global trade.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Various ports in India
Mains level: Corporatization of ports
Rajya Sabha has passed the Major Ports Authorities Bill 2020 with 88 votes for and 44 against it. The Bill was passed in Lok Sabha in September last year.
Major Ports Authorities Bill 2020: Major: Highlights
- The Bill provides for the regulation of major ports and will replace the Major Port Trusts Act of 1963, and a board of Major Port Authority for each major port will replace the current port trusts.
- The Bill will apply to the major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, VO Chidambaranar and Vishakhapatnam.
Boards to replace trusts
- Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government.
- The Bill provides for the creation of a Board of Major Port Authority for each major port.
- These Boards will replace the existing Port Trusts.
- It will have a member each from the state governments, the Railways Ministry, the defence ministry, and the customs department.
- The Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.
Board has financial powers
- Under the 1963 Act, the Board had to seek the prior sanction of the Centre to raise any loan.
- Under the new Bill, to meet its capital and working expenditure requirements, the Board may raise loans from any scheduled bank or financial institution within India, or any financial institution outside India.
- However, for loans above 50% of its capital reserves, the Board will require prior sanction of the central government.
The board will fix rates
- At present, the Tariff Authority for Major Ports fixes the scale of rates for assets and services available at ports.
- Under the bill, which now awaits President’s accent to become a law, the Board or committees appointed by the Board will determine these rates for services that will be performed at ports.
- The services would include the access to and usage of the port assets, and different classes of goods and vessels, among others.
Punishments
- Under the 1963 Act, there are various penalties for contravening provisions of the Act.
- The penalty for setting up any structures on the harbours without permission, for example, may extend up to Rs 10,000, and the penalty for evading rates may extend up to 10 times the rates.
- Under the new Bill, any person contravening any provision of the Bill or any rules or regulations will be punished with a fine of up to Rs one lakh.
Opposition criticism
- Opposition parties had opposed the legislation terming it the move to privatize ports.
- They said that this Bill is nothing but a retraction of the Singapore model.
- When there were hue and cry that there cannot be the privatization of ports, it adopted a policy of so-called corporatization. Thereafter, it ultimately privatized its ports.
- So, corporatization is the first step. The next in the offing is privatization said the opposition.
What did the govt. say?
- The government has brought in a provision that will allow ports to take their own decisions. To change tariffs, the ports have to now approach the ministry.
- The port sector in the last six years has doubled the profit. Profit has increased, liabilities have come down. For modernization, 300 projects are ongoing.
- This Bill is not to privatize any port, but it is to ensure that our ports can properly compete with private ports.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Sagarmala
Mains level: Paper 3- India's shipping industry and challenges
The article deals with the problems faced by India’s shipping sector and suggests the measures to improve the shipping sector.
Importance of shipping for economic growth
- The major economies of the world have always realized the potential of shipping as a contributor to economic growth.
- For instance, control of the seas is a key component of China’s Belt and Road Initiative (BRI).
- However, geographically, China is not as blessed as India, yet, seven of the top 10 container ports in the world are in China, according to the World Shipping Council.
- What aided China’s growth are strong merchant marine and infrastructure to carry and handle merchandise all over the world.
Lack of carrying capacity
- All the shipping infrastructure in peninsular India only helps foreign shipping liners.
- India has concentrated only on short-term solutions.
- Foreign ship owners carry our inbound and outbound cargo. This is the case in container shipping too.
- As a country, we have still not optimized our carrying capacity.
- Much of foreign currency is drained as transshipment and handling costs every day.
- Due to this, members of our maritime business community have also preferred to be agents for foreign ship owners or container liners rather than becoming ship owners or container liners themselves.
- As a result, there is a wide gap between carrying capacity and multi-folded cargo growth in the country.
Way forward
1) Regional cargo-specific ports
- Instead of creating regional cargo-specific ports in peninsular India, we allowed similar infrastructural developments in multiple cargo-handling ports.
- As a result, Indian ports compete for the same cargo.
- We need to make our major ports cargo-specific, develop infrastructure on a par with global standards, and connect them with the hinterlands as well as international sea routes, they will automatically become transshipment hubs.
- We need to only concentrate on developing the contributing ports to serve the regional transshipment hubs for which improving small-ship coastal operations is mandatory.
2) Sagarmala
- Sagarmala aims are port-led industrialization, development of world-class logistics institutions, and coastal community development.
- Sagarmala will help in increasing domestic carrying capacity.
- Shipbuilding, repair, and ownership are not preferred businesses in India and the small ship-owning community in India also prefer foreign registry instead of domestic registration.
- If this has to change, there needs to be a change in the mindset of the authorities and the maritime business community.
- ‘Make in India’ will result in multi-folded cargo growth in the country, we need ships to cater to domestic and international trade.
- Short sea and river voyages should be encouraged.
- Shipbuilding and owning should be encouraged by the Ministry.
- The National Shipping Board is an independent advisory body for the Ministry of Shipping, where the Directorate General of Shipping (DGS) is a member.
- The NSB should be able to question the functioning of the DGS, which is responsible for promoting carrying capacity in the country.
- Coastal communities should be made ship owners.
- This will initiate the carriage of cargo by shallow drafted small ships through coast and inland waterways.
- Sagarmala should concentrate on consolidating the strength of the coastal youth and make them contribute to the nation’s economy with pride.
Consider the question “How shipping contributes to the economic prosperity of a country? Suggest the steps need to be taken to develop its shipping sector.”
Conclusion
Shipping plays an important role in the economic development of a country. India needs to focus on developing it to achieve the economic prosperity.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Gujarat Maritime Cluster
Mains level: Need for a Maritime Cluster in India
The Gujarat Maritime Cluster coming up in the GIFT (Gujarat International Finance Tec-City) City at Gandhinagar will be a dedicated system to address logistics of ports and seaways.
Try answering this:
Q.What do you mean by Central Business Districts? How it is different from a Special Economic Zone (SEZ)?
What is a Maritime Cluster?
- The concept of the maritime cluster is new to India, but these clusters have been driving some of the most competitive ports of the world like Rotterdam, Singapore, Hong Kong, Oslo, Shanghai, and London.
- Simply put, a maritime cluster is an agglomeration of firms, institutions, and businesses in the maritime sector that are geographically located close to each other.
Gujarat Maritime Cluster
- While the project was conceptualized back in 2007, it received in-principle approval from the state government only in 2015.
- The Gujarat Maritime Board (GMB), a nodal agency of the Gujarat government, has been trying to develop such a cluster at GIFT City in the state capital Gandhinagar.
- This cluster will initially consist of Gujarat-based shipping lines, freight forwarders, shipping agents, bunker suppliers, stevedores, and shipbrokers with chartering requirements.
- In the second stage, the cluster would attempt to bring Indian ship owners, ship operators, Indian charterers and technical consultants scattered in cities like Mumbai, Chennai, and Delhi to Gujarat.
- Thereafter it would target to attract global players in the maritime sphere.
Need for a maritime cluster
- This project will try to bring back businesses that have migrated over the years to foreign locations due to the absence of the right ecosystem in the country.
- Gujarat has a lot of ports and handles 40 per cent of the country’s cargo, but it does not target the entire value chain.
- Since we didn’t have the ecosystem, a lot of Indian companies have moved to foreign locations. For instance, Adani Group has the biggest port in Gujarat, but for their chartering needs, they are based out of Dubai.
Back2Basics: GIFT City, Gandhinagar
- GIFT city is India’s first operational smart city and international financial services centre (much like a modern IT park).
- The idea for GIFT was conceived during the Vibrant Gujarat Global Investor Summit 2007 and the initial planning was done by East China Architectural Design & Research Institute (ECADI).
- Currently approximately 225 units/companies are operational with more than 12000 professionals employed in the City.
- The entire city is based on concept of FTTX (Fibre to the home / office).The fiber optic is laid in fault tolerant ring architecture so as to ensure maximum uptime of services.
- Every building in GIFT City is an intelligent building. There is piped supply of cooking gas. India’s first city-level DCS (district cooling system) is also operational at GIFT City.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: RO-RO ferry services
Mains level: Not Much
PM has virtually inaugurated the Ghogha-Hazira Ro-Pax ferry service in Gujarat.
Try this question from CSP 2016:
Q.Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to the sea by a long navigational channel?
(a) Andhra Pradesh
(b) Chhattisgarh
(c) Karnataka
(d) Rajasthan
Ghogha-Hazira Ferry Service
- It will work as a Gateway to South Gujarat and Saurashtra region. It will reduce the distance between Ghogha and Hazira from 370 km to 90 km.
- It has a load capacity of 30 trucks (of 50 MT each) on the main deck, 100 passenger cars on the upper deck and 500 passengers plus 34 crew and hospitality staff on the passenger deck.
- The reduced cargo travel time from 10 to 12 hours to about four hours will result in huge savings of fuel (approx 9,000 litres per day) and lower the maintenance cost of vehicles drastically.
- The ferry service, while making three round trips per day on the route, would annually transport about 5 lakh passengers, 80,000 passenger vehicles, 50,000 two-wheelers and 30,000 trucks.
Benefits
- It will reduce the fatigue of truck drivers and enhance their incomes by giving them more opportunity to do extra trips.
- It will give an impetus to the tourism industry with ease of access to the Saurashtra region and lead to the creation of new job opportunities.
- With the onset of ferry services, the port sector, furniture and fertilizer industries in Saurashtra and Kutch region will get a big boost.
- Eco-tourism and religious-tourism in Gujarat, especially in Porbandar, Somnath, Dwarka and Palitana will grow exponentially.
- The benefits of enhanced connectivity through this ferry service will also result in increased inflow of tourists in the famous Asiatic lion wildlife sanctuary at Gir.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: National Authority of Ship Recycling (NASR)
Mains level: Not Much
The Central government has notified the Director-General of Shipping as the national authority for recycling of ships under the Recycling of Ships Act, 2019.
The ‘Hong Kong Convention’ is the odd man out here. Read more about the convention at:
https://www.civilsdaily.com/news/pib-hong-kong-international-convention-for-safe-recycling-of-ships-2009/
About NASR
- The national authority of ship recycling will be set up in Gandhinagar, Gujarat.
- The location of the office will benefit the ship recycling yard owners situated in Alang, Gujarat which is home to the largest ship recycling industry in the world.
- DG Shipping is authorized to administer, supervise and monitor all activities relating to ship recycling in the country.
- DG Shipping will oversee the sustainable development of the ship recycling industry, monitoring the compliance to environment-friendly norms and safety and health measures for the stakeholders.
- DG Shipping will be the final authority for the various approvals required by the ship-recycling yard owners and state governments.
Recycling of Ships Act, 2019
- Under the Ship Recycling Act, 2019, India has acceded to the ‘Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships’.
- This was adopted by the International Maritime Organization (IMO).
- DG Shipping is a representative of India in the IMO and all the conventions of IMO are being enforced by DG Shipping.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: SAROD-Ports
Mains level: Not Much
Union Ministry of Shipping has e-launched ‘SAROD-Ports’ (Society for Affordable Redressal of Disputes – Ports).
Try this MCQ:
Q.The term SAROD is sometimes seen in the news with context to governance is related to:
(a) Disputes Redressal
(b) Employment
(c) Sustainable Development
(d) None of the above
SAROD Ports
SAROD-Ports are established under the Societies Registration Act, 1860 with the following objectives:
- Affordable and timely resolution of disputes in a fair manner
- Enrichment of Dispute Resolution Mechanism with the panel of technical experts as arbitrators.
- They consist of members from the Indian Ports Association (IPA) and Indian Private Ports and Terminals Association (IPTTA).
- They will advise and assist in settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector in Major Port Trusts, Non-major Ports, including private ports, jetties, terminals and harbours.
- It will also cover disputes between granting authority and Licensee/Concessionaire /Contractor.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Major ports of India
Mains level: Not Much
The Ministry of Shipping has reviewed the development activities of the Vallarpadam Terminal of Cochin Port, envisaged as first trans-shipment port of India.
Try this question from CSP 2016:
Q.Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to the sea by a long navigational channel?
(a) Andhra Pradesh
(b) Chhattisgarh
(c) Karnataka
(d) Rajasthan
Vallarpadam Terminal
- The Kochi International Container Trans-shipment Terminal (ICTT), locally known as the Vallarpadam Terminal is located strategically on the Indian coastline.
- It is the terminal at the port which handles containers, stores them temporarily and transfers them to other ships for the onward destination.
- It is proposed to be developed as the most preferred gateway for South India and leading transhipment hub of South Asia.
It successfully fulfils all the criteria which are needed to develop it as trans-shipment hub which include:
- It is best positioned Indian port with regard to proximity to International sea routes;
- It is located at least average nautical distance from all Indian feeder ports;
- It entails connectivity which has multiple weekly feeder connections to all ports on West & East Coast of India, From Mundra to Kolkata;
- It has proximity to key hinterland markets of India;
- It has the infrastructure to manage large ships and capacity to scale it up as per requirement.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: MARPOL
Mains level: Maritime pollution control and its international mechanism
The Ministry of Shipping has informed about the steps taken for prevention and control of pollution arising from ships in the sea and in the inland waterways under the MARPOL Convention.
Aspirants must note the following things:
1. If the convention is a subsidiary to the United Nations/IMO,
2. Whether it is Legally binding?
3. If India is a signatory or not …..
MARPOL Convention
- MARPOL is the main international convention aimed at the prevention of pollution from ships caused by operational or accidental causes.
- The Protocol of 1978 was adopted in response to a number of tanker accidents in 1976–1977.
- It is one of the most important international marine environmental conventions.
- It was developed by the IMO with an objective to minimize pollution of the oceans and seas, including dumping, oil and air pollution.
- The Convention includes regulations aimed at preventing and minimizing pollution from ships – both accidental pollution and that from routine operations – and currently includes six technical Annexes.
- India is a signatory to MARPOL.
- It has six annexes (I to VI) and it deals with prevention of (1) Pollution from ships by Oil, (2) Noxious liquid substances, (3) Dangerous goods in packaged form, (4) Sewage, (5) Garbage and (6) Air pollution from ships respectively.
Context
- Major Port Authorities Bill 2020 was recently introduced in the Lok Sabha by the Ministry of Shipping.
- The Bill aims to replace the Major Port Trusts Act, 1963.
- It seeks to provide for regulation, operation and planning of Major Ports in India and to vest the administration, control and management of such ports upon the Boards of Major Port Authorities.
- This will empower the Major Ports to perform with greater efficiency on account of full autonomy in decision making and by modernizing the institutional framework of Major Ports.
Background
Ports in India
- India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Government plays an important role in supporting the ports sector.
- According to the Ministry of Shipping, around 95 per cent of India’s trading by volume and 70 per cent by value is done through maritime transport
- India has 12 major and 205 notified minor and intermediate ports.
- The Indian ports and shipping industry plays a vital role in sustaining growth in the country’s trade and commerce.
- It has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbour construction and maintenance projects.
- It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports.
Major Port authorities bill,2020
Key features of the Bill include:
Jurisdiction
- The Bill will apply to the major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar, and Vishakhapatnam.
Major Port Authorities Board
- Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government.
- The Bill provides for the creation of a Board of Major Port Authority for each major port.
- These Boards will replace the existing Port Trusts.
Composition of Board
- The Board will comprise of a Chairperson and a Deputy Chairperson, both of whom will be appointed by the central government on the recommendation of a selection committee.
- Further, it will include one member each from
(i) the respective state governments,
(ii) the Railways Ministry,
(iii) the Defence Ministry, and
(iv) the Customs Department
- The Board will also include two to four independent members, and two members representing the interests of the employees of the Major Port Authority.
Powers of the Board
- The Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.
- The Board can also make rules on:
(i) declaring the availability of port assets for port-related activities and services,
(ii) developing infrastructure facilities such as setting up new ports, jetties, and
(iii) providing exemption or remission from payment of any charges on any goods or vessels.
Fixing of rates
- Currently, the Tariff Authority for Major Ports, established under the 1963 Act, fixes the scale of rates for assets and services available at ports.
- Under the Bill, the Board or committees appointed by the Board will determine these rates.
- They may determine rates for:
- services that will be performed at ports,
- the access to and usage of the port assets, and
- different classes of goods and vessels, among others.
- Such fixing of rates will not be with retrospective effect and must be consistent with the provisions of the Competition Act, 2002, or any other laws in force, subject to certain conditions.
Financial powers of the Board
- Under the 1963 Act, the Board has to seek the prior sanction of the central government to raise any loan.
- Under the Bill, to meet its capital and working expenditure requirements, the Board may raise loans from any:
- scheduled bank or financial institution within India, or
- 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.
Corporate Social Responsibility
- The Bill provides that the Board may use its funds for providing social benefits.
- This includes the development of infrastructure in areas such as education, health, housing, and skill development.
Public-Private Partnership (PPP) projects
- The role of the Tariff Authority for Major Ports (TAMP) has been redefined. The Bill defines PPP projects as projects taken up through a concession contract by the Board.
- For such projects, the Board may fix the tariff for the initial bidding purposes.
- The appointed concessionaire will be free to fix the actual tariffs based on market conditions, and other conditions as may be notified.
- The revenue share in such projects will be on the basis of the specific concession agreement.
Adjudicatory Board
- The Bill provides for the constitution of an Adjudicatory Board by the central government.
- This Board will replace the existing Tariff Authority for Major Ports constituted under the 1963 Act.
- It will consist of a Presiding Officer and two members, as appointed by the central government.
- Functions of the Adjudicatory Board will include:
- certain functions being carried out by the Tariff Authority for Major Ports,
- adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires, and
- reviewing stressed PPP projects.
Penalties
- Under the 1963 Act, there are various penalties for contravening provisions of the Act.
- For example, (i) the penalty for setting up any structures on the harbours without permission may extend up to Rs 10,000, and (ii) the penalty for evading rates may extend up to 10 times the rates.
- Under the Bill, any person contravening any provision of the Bill or any rules or regulations will be punished with a fine of up to one lakh rupees.
Why need corporatization?
- Indian state-owned ports or major ports (12 in number) account for around 55% of maritime cargo traffic in the country.
- Currently, most major port trusts in India carry out terminal operations as well, resulting in a hybrid model of port governance.
- The involvement of the port authorities in terminal operations leads to a conflict of interest and works against objectivity.
- But, they still have to adhere to a tariff and policy regime that has its roots in the 1960s.
Significance of the bill
- Privatized ports operate under a much more liberal regime and are under the control of state governments.
- They are operationally more efficient and are crucially developed better linkages to the hinterland to enable smooth traffic flows.
- The bill aims at decentralizing decision making and to infuse professionalism in governance of major ports.
- It would help to impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
- The Bill is aimed at reorienting the governance model in central ports to the landlord port model in line with the successful global practice.
- This will also help in bringing transparency in operations of Major Ports.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Ro-Pax Ferry
Mains level: Not Much
Mumbai – the first metropolitan city in India has introduced Ro-Pax service to its transport infrastructure. M2M1 Ferry Vessel has commenced operations between Mumbai and Mandwa.
Ro-Pax Ferry
- Ro-Pax Ferry is a ferry that combines the features of a cruise ship and a roll-on/roll-off service.
- This service has brought much to the relief of daily commuters, job seekers and holiday-goers travelling between Mumbai and Mandwa and also other parts of Alibaug.
- Ro-Pax service enables people to ferry along with their vehicles on board, between Mumbai and Mandwa.
- With this, Mumbai, Alibaug and the adjoining Konkan region will experience a boost in tourism, hinterland connectivity and also job opportunities.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Kolkata Port
Mains level: Ports in India
PM Modi has renamed the Kolkata Port Trust after Dr Syama Prasad Mookerjee, at an event to mark its 150th anniversary.
History of Kolkata’s port
- In the early 16th century, the Portuguese first used the present location of the port to anchor their ships, since they found the upper reaches of the Hooghly river beyond Kolkata, unsafe for navigation.
- Job Charnock, an employee and administrator of the East India Company, is believed to have founded a trading post at the site in 1690.
- Since the area was situated on the river with jungle on three sides, it was considered safe from enemy invasion.
- After the abolition of slavery in the British Empire in 1833, this port was used to ship lakhs of Indians as ‘indentured labourers’ to far-flung territories throughout the Empire.
- During World War II, the port was bombed by Japanese forces.
Its administration
- As Kolkata grew in size and importance, merchants in the city demanded the setting up of a port trust in 1863.
- The colonial government formed a River Trust in 1866, but it soon failed, and administration was again taken up by the government.
- Finally, in 1870, the Calcutta Port Act (Act V of 1870) was passed, creating the offices of Calcutta Port Commissioners.
- In 1869 and 1870, eight jetties were built on the Strand. A wet dock was set up at Khidirpur in 1892. The Khidirpur Dock II was completed in 1902.
- As cargo traffic at the port grew, so did the requirement of more kerosene, leading to the building of a petroleum wharf at Budge Budge in 1896.
- In 1925, the Garden Reach jetty was added to accommodate greater cargo traffic. A new dock, named King George’s Dock, was commissioned in 1928 (it was renamed Netaji Subhash Dock in 1973).
- In 1975, the Commissioners of the port ceased to control it after the Major Port Trusts Act, 1963, came into force.
Significance
- After Independence, the Kolkata Port lost its preeminent position in cargo traffic to ports at Mumbai, Kandla, Chennai, and Visakhapatnam.
- The Kolkata port is the only riverine port on R. Hooghly in the country, situated 203 km from the sea.
- The Farakka Barrage, built in 1975, reduced some of the port’s woes as Ganga waters were diverted into the Bhagirathi-Hooghly system.
