At the high port: Industrial development along ports to get a push

Centre identifies 14 coastal economic zones

The shipping ministry is set to launch the National Perspective Plan (NPP) by January next year, aimed at comprehensive and integrated development of coastline. The proposed NPP will identify potential geographical regions to be called coastal economic zones (CEZs), a spatial-economic region around a group of major and minor ports, which could extend along 300-500 km of coastline and 200-300 km inland from the coastline.

Detailed master plans will be prepared for CEZs to identify projects. Officials said 14 CEZs have been identified across several states and perspective plans are under development.

The shipping ministry is in talks with state governments besides coordinating with the ministries of railways, road transport & highways, coal, power, steel, petroleum & natural gas, and department of industrial policy & promotion to provide necessary inputs for NPP and CEZ master plans. It has also asked McKinsey to prepare the plan.
 

"The plan is a part of Sagarmala initiative. While preparing the NPP, synergy and integration with the planned industrial corridors, dedicated freight corridors, National Highways Development Programme, industrial clusters and SEZs would be ensured," said a senior official in the ministry. The state industrial development agency will provide land available with major or non-major ports for industrial development.

According to experts, closer proximity of manufacturing centres to ports in China unlike in India where the main hinterland container depot is at an average distance of 700 km from the nearest port is the main reason why export costs in India are more than that in China. Thus, the development of CEZ will help in reducing the transportation cost substantially.

"After preparation of the NPP and detailed master plan of the coastal economic zones, specific projects will be identified in all the identified coastal economic zones covering the entire coastal region and islands coastline of the country. Thereafter, in accordance with the detailed project reports and the preparedness of the implementing agencies (state governments, state maritime boards and central line ministries) individual projects will be taken up. It would be region over which the influence of ports exists insofar as supporting industrial and other economic activities is concerned," he added.

As far funding of projects is concerned, it may be executed through private agencies, public-private partnership mode, budget of relevant ports, line ministries, central agencies, state government in accordance with NPP. The other financing models will be explored, including Viability Gap Funding.

The proposed plan will give traffic forecast for five, 10 and 20 years and potential for coastal shipping and inland waterways for key commodities such as coal, containers etc.

The NPP will also undertake study to improve productivity, profitability, operational efficiency and future prospects of major ports.

Earlier, Union minister for road transport, highways & shipping Nitin Gadkari stressed on the development of maritime sector and said approximately 50 million tonne per annum of inland coal movement can also be potentially shifted to national waterways. The shifting of coal movement to coastal shipping is expected to lead to annual savings of about Rs 8,000 crore in coal logistics cost by 2020.

Since logistic costs account for around 30 per cent of the overall cost of power, this will lead to a reduction of 50 paise a unit in power generation cost of plants sourcing through coastal shipping and generate Rs 4,000 crore as additional revenue for ports by 2025.

COAST IS CLEAR

• The shipping ministry is set to launch the National Perspective Plan (NPP) by January next year, aimed at comprehensive and integrated development of coastline
   
• The proposed NPP will identify potential geographical regions to be called coastal economic zones (CEZs), a spatial-economic region around a group of major and minor ports, which could extend along 300-500 km of coastline and 200-300 km inland from the coastline
  

 

The plan is a part of Sagarmala initiative. While preparing the NPP, synergy and integration with the planned industrial corridors, dedicated freight corridors, National Highways Development Programme, industrial clusters and SEZs would be ensured