{"id":164339,"date":"2025-05-03T20:16:42","date_gmt":"2025-05-03T14:46:42","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&p=164339"},"modified":"2025-05-03T20:16:42","modified_gmt":"2025-05-03T14:46:42","slug":"port-led-development","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/port-led-development","title":{"rendered":"Port-Led Development"},"content":{"rendered":"

Recently, the Prime Minister <\/span>commissioned the \u20b98,800 crore<\/b> Vizhinjam International Deepwater Multipurpose Seapor<\/b>t in Thiruvananthapuram, Kerala, marking a pivotal step in India’s <\/span>port-led development strategy<\/b>.<\/span><\/p>\n

About Vizhinjam International Seaport<\/b><\/span><\/h2>\n
    \n
  • Type<\/b>: India\u2019s <\/span>first deep-water transshipment port<\/b> (natural depth: 18\u201320 m).<\/span><\/li>\n
  • Developer<\/b>: Adani Ports & SEZ Ltd (APSEZ) via <\/span>PPP<\/b> (Kerala Govt: 61.5%, Centre: 9.6%).<\/span><\/li>\n<\/ul>\n
    <\/p>\n\n\n\n
    A <\/span>deepwater transshipment port<\/b> is a specialized maritime hub designed to handle <\/span>ultra-large container ships (ULCS)<\/b> by transferring cargo between <\/span>mother vessels<\/b> (large ships) and <\/span>feeder vessels<\/b> (smaller ships) for final delivery to smaller ports.<\/span><\/span><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n

    <\/div>\n

    Importance and Impact<\/b><\/span><\/h2>\n

    Strategic Importance<\/b><\/span><\/h3>\n
      \n
    • India\u2019s First Deep-Water Transshipment Hub<\/b>\n
        \n
      • Eliminates Dependence on Foreign Ports<\/b>: Previously, <\/span>75% of India\u2019s transshipment cargo<\/b> was handled in <\/span>Colombo, Singapore, and Dubai<\/b>, costing <\/span>$200\u2013220 million\/year<\/b> in lost revenue.<\/span>\n
          \n
        • Vizhinjam reduces this reliance, saving Indian traders <\/span>$80\u2013100 per container<\/b>.<\/span><\/li>\n<\/ul>\n<\/li>\n
        • Proximity to International Shipping Lanes<\/b>: Located <\/span>just 10 nautical miles<\/b> from the <\/span>east-west shipping route<\/b> (busiest global trade corridor).<\/span>\n
            \n
          • Reduces voyage time by <\/span>1\u20132 days<\/b> compared to Colombo.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
          • Natural Advantages<\/b><\/li>\n
          • \n
              \n
            • Deep Draft (18\u201320 m)<\/b>: Can accommodate <\/span>ultra-large container ships (24,000+ TEU)<\/b> like <\/span>MSC Turkiye<\/span><\/i> (world\u2019s largest eco-friendly vessel).<\/span><\/li>\n
            • No Littoral Drift<\/b>: Unlike Colombo (requires frequent dredging), Vizhinjam\u2019s seabed is stable, cutting maintenance costs.<\/span><\/li>\n<\/ul>\n<\/li>\n
            • Boost to India\u2019s Maritime Trade<\/b>\n
                \n
              • Global Competitiveness<\/b>: Positions India as a rival to <\/span>Singapore, Salalah, and Jebel Ali<\/b> in transshipment.<\/span><\/li>\n
              • Logistics Efficiency<\/b>: AI-driven <\/span>Vessel Traffic Management System (VTMS)<\/b> optimizes cargo handling, reducing turnaround time.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                Economic Impact<\/b><\/span><\/h3>\n
                  \n
                • Cost Savings & Revenue Generation: $220 million\/year saved<\/b> by reducing foreign transshipment fees.<\/span>\n
                    \n
                  • Expected to contribute <\/span>1\u20132% to India\u2019s GDP growth<\/b> via trade efficiency (Sagarmala projections).<\/span><\/li>\n<\/ul>\n<\/li>\n
                  • Employment & Local Development: 750+ jobs created<\/b> (67% from Kerala, with 57% from Thiruvananthapuram).<\/span>\n
                      \n
                    • Pioneering Gender Inclusion<\/b>: First Indian port where <\/span>women from fishing communities<\/b> operate heavy cranes (CRMG).<\/span><\/li>\n<\/ul>\n<\/li>\n
                    • Industrial & Logistics Growth: Attracts Manufacturing<\/b>: Proximity to the port incentivizes industries to set up near Kerala (e.g., electronics, seafood exports).<\/span>\n
                        \n
                      • Multi-Modal Connectivity<\/b>: Linked to <\/span>NH-66, rail networks, and Trivandrum Airport (15 km away)<\/b>.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                        Geopolitical Impact<\/b><\/span><\/h3>\n
                          \n
                        • Countering Colombo\u2019s Dominance: Colombo handles 45% of India\u2019s transshipment<\/b>; Vizhinjam offers an alternative amid China\u2019s influence in Sri Lanka (e.g., Hambantota Port).<\/span><\/li>\n
                        • Strengthening Regional Trade: <\/b>Potential hub for <\/span>Bangladesh, Myanmar, and Maldives<\/b> due to proximity.<\/span><\/li>\n<\/ul>\n

                          Port-Led Development in India<\/b><\/span><\/h2>\n
                            \n
                          • Port-led development involves <\/span>leveraging port infrastructure and connectivity<\/b> to drive <\/span>economic growth, industrialisation, <\/b>and trade by integrating ports with hinterland economies through <\/span>logistics, industrial clusters, and coastal economic zones (CEZs).<\/b><\/li>\n
                          • Significance<\/b>: Ports handle ~95% of India\u2019s trade by volume and 70% by value, making them critical for economic development and global trade competitiveness.<\/span><\/li>\n<\/ul>\n

                            Importance of Port-Led Development<\/b><\/span><\/h2>\n
                              \n
                            • Reduces Logistics Cost and Enhances Export Competitiveness: <\/b>By lowering the cost of transporting goods, Indian exports become globally competitive.<\/span>\n
                                \n
                              • The Sagarmala vision aims to <\/span>reduce logistics cost for EXIM and domestic cargo<\/b>, saving <\/span>\u20b935,000\u201340,000 crore annually<\/b>.<\/span><\/li>\n
                              • Coastal shipping of coal from Mahanadi Coalfields to Andhra Pradesh\/Karnataka can save the power sector over <\/span>\u20b910,000 crore<\/b> annually .<\/span><\/li>\n<\/ul>\n<\/li>\n
                              • Unlocks the Potential of Coastal Shipping and Inland Waterways: <\/b>\u00a0Coastal and inland waterway transport is <\/span>60\u201380% cheaper<\/b> than road and rail.<\/span>\n
                                  \n
                                • By 2025, coastal shipping could increase <\/span>5x<\/b> to <\/span>330\u2013420 million tonnes<\/b>; inland waterways could carry <\/span>60\u201370 million tonnes<\/b>, saving cost and emissions.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                • Supports Port-Proximate Industrialization: <\/b>Industrial clusters near ports reduce logistics cost for raw materials and finished goods.<\/span>\n
                                    \n
                                  • Sectors like <\/span>steel, cement, petroleum refining, food processing, electronics, leather<\/b> are targeted under Sagarmala for port-linked growth .<\/span><\/li>\n
                                  • There are <\/span>14 Coastal Economic Zones (CEZs)<\/b> mapped across India .<\/span><\/li>\n<\/ul>\n<\/li>\n
                                  • Improves Multimodal Connectivity: <\/b>Integrates ports with rail, road, pipelines, and waterways for faster, smoother cargo movement.<\/span>\n
                                      \n
                                    • Western DFC spur lines, Bharatmala highways, Paradip-to-Hyderabad pipeline, and National Waterways (NW1, NW2, NW4, NW5) are part of the connectivity push .<\/span><\/li>\n<\/ul>\n<\/li>\n
                                    • Generates Massive Employment and Boosts GDP: <\/b>Creates large-scale direct and indirect jobs while adding to national income.<\/span>\n
                                        \n
                                      • Expected to create <\/span>more than 1 crore employment opportunities<\/b>.<\/span><\/li>\n
                                      • GDP growth is projected to rise by <\/span>2%<\/b> through enhanced port-led infrastructure and industrialization.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                      • Increases Port Capacity and Efficiency: <\/b>Expanding port capacity improves cargo handling and reduces congestion delays.<\/span>\n
                                          \n
                                        • Under Sagarmala, Indian ports\u2019 capacity is targeted to rise from <\/span>~1,500 MTPA (2015)<\/b> to <\/span>3,300+ MTPA (2030)<\/b>.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                        • Supports Coastal Community Development: <\/b>Improves the livelihoods and skills of people in coastal regions, including fishermen.<\/span>\n
                                            \n
                                          • Focus on <\/span>fishermen welfare, skill development, and island development<\/b> as part of Sagarmala.<\/span><\/li>\n
                                          • Coastal states like <\/span>Gujarat (2,340 km coastline)<\/b> and <\/span>Andaman & Nicobar Islands (3,083 km coastline)<\/b> are prioritized for community upliftment .<\/span><\/li>\n<\/ul>\n<\/li>\n
                                          • National Security<\/b>: Strengthens maritime security by securing strategic installations (e.g., naval bases, nuclear plants).<\/span><\/li>\n<\/ul>\n
                                              \n
                                            • Counters China\u2019s String of Pearls via projects like Sagarmala and Chabahar Port.<\/span><\/li>\n<\/ul>\n

                                              Major Initiatives for Port-Led Development<\/b><\/h2>\n
                                                \n
                                              • About Sagarmala Programme<\/b>\n
                                                  \n
                                                • Launched in 2015 by the<\/span> Ministry of Ports, Shipping & Waterways (MoPSW).<\/b><\/li>\n
                                                • Objective: <\/b>Enhance port-led development, reduce logistics costs, and improve coastal trade.<\/span><\/li>\n
                                                • The concept of <\/span>“port led development”<\/b> is central to the <\/span>Sagarmala vision.<\/b><\/li>\n
                                                • The four pillars of the Sagarmala Programme are:<\/b>\n
                                                    \n
                                                  • Port Modernization & New Port Development: <\/b>Debottlenecking and capacity expansion of existing ports and development of new greenfield ports<\/span><\/li>\n
                                                  • Port Connectivity Enhancement:<\/b> Enhancing the <\/span>connectivity of the ports <\/b>to the <\/span>hinterland<\/b>, optimizing cost and time of cargo movement through multi-modal logistics solutions including domestic waterways (inland water transport and coastal shipping)<\/span><\/li>\n
                                                  • \u00a0Port-linked Industrialization:<\/b> Developing <\/span>port-proximate industrial clusters and Coastal Economic Zones<\/b> to reduce logistics cost and time of EXIM and domestic cargo<\/span><\/li>\n
                                                  • Coastal Community Development:<\/b> Promoting <\/span>sustainable development of coastal communities <\/b>through skill development & livelihood generation activities, fisheries development, coastal tourism etc.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
                                                  • National Perspective Plan (NPP) under Sagarmala<\/b>\n
                                                      \n
                                                    • Provides a <\/span>blueprint<\/b> for holistic development of the Indian coastline and maritime sector.<\/span><\/li>\n
                                                    • Identifies opportunities across ports, industry, and logistics to improve efficiency and reduce costs .<\/span><\/li>\n<\/ul>\n<\/li>\n
                                                    • Maritime India Vision 2030<\/b>\n
                                                        \n
                                                      • It is a <\/span>10-year maritime sector blueprint succeeding Sagarmala,<\/b> aiming to enhance waterways, boost shipbuilding, and promote cruise tourism.<\/span><\/li>\n
                                                      • Key Initiatives<\/b>\n
                                                          \n
                                                        • Maritime Development Fund<\/b>: \u20b925,000-crore fund for low-cost, long-term financing, with \u20b92,500 crore from the Centre over seven years.<\/span><\/li>\n
                                                        • Port Regulatory Authority<\/b>: New authority under a modern Indian Ports Act to oversee all ports and boost investor confidence.<\/span><\/li>\n
                                                        • Eastern Waterways Grid<\/b>: Enhances connectivity with Bangladesh, Nepal, Bhutan, and Myanmar.<\/span><\/li>\n
                                                        • Riverine Development Fund<\/b>: Finances inland vessels, extending tonnage tax benefits to increase availability.<\/span><\/li>\n
                                                        • Port Charge Rationalisation<\/b>: Streamlines charges, removes hidden fees for transparency and competitiveness.<\/span><\/li>\n
                                                        • Water Transport Promotion<\/b>: Develops waterways as an alternative to decongest urban areas.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
                                                          \n

                                                          Key Statistics on Port-Led Development and Maritime Trade<\/b><\/h3>\n
                                                            \n
                                                          • Cargo Handling Capacity: <\/b>Current cargo handling capacity of Indian ports: ~2,500 MMTPA (Million Metric Tonnes Per Annum)<\/span>\n
                                                              \n
                                                            • \n
                                                                \n
                                                              • Total cargo handled at major ports (FY24): <\/span>819.23 million tonnes<\/b>, up 4.45% from FY23<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
                                                              • Growth in Coastal Shipping and Inland Waterways: <\/b>Coastal shipping growth over the past decade: <\/span>118% increase<\/b><\/li>\n<\/ul>\n
                                                                  \n
                                                                • \n
                                                                    \n
                                                                  • \n
                                                                      \n
                                                                    • Inland waterway cargo movement growth: <\/span>700% increase<\/b><\/li>\n
                                                                    • Increase inland waterways\u2019 and coastal shipping share in the modal mix from 6% to 12% by 2025<\/span><\/li>\n
                                                                    • Power sector impact: <\/b>Coastal coal movement to rise from 27 MTPA (FY16) to 129 MTPA by 2025<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n
                                                                    • Foreign Direct Investment (FDI): <\/b>Cumulative FDI in the port sector (April 2000\u2013Sep 2024): \u20b914,237.96 crore (~US$1.64 billion)<\/span><\/li>\n
                                                                    • Global Recognition: 9 Indian ports ranked in the world\u2019s top 100<\/b> in the Container Port Performance Index (CPPI) 2023<\/span><\/li>\n<\/ul>\n
                                                                        \n
                                                                      • \n
                                                                          \n
                                                                        • Visakhapatnam Port climbed to <\/span>19th rank globally<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                                                          Major Achievements and Initiatives in India\u2019s Port Sector<\/b><\/h1>\n
                                                                            \n
                                                                          • Infrastructure Development<\/b>\n
                                                                              \n
                                                                            • Vadhavan Mega Port<\/b>: Developed with over \u20b976,000 crore, featuring nine container terminals and multiple berths to enhance capacity.<\/span><\/li>\n
                                                                            • Tuticorin International Container Terminal<\/b>: Launched in September 2024, it handles 6 lakh twenty-foot equivalent units (TEUs) annually, accommodating vessels up to 10,000 TEUs.<\/span><\/li>\n
                                                                            • Outer Harbour at Tuticorin<\/b>: Boosts capacity by 4 million TEUs with two 1,000-meter terminals.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                                                            • Port-Led Industrialisation<\/b>\n