Page 169 - Technology Roadmap Transportation

TECHNOLOGY ROADMAP: TRANSPORTATION

cost becomes as low as 26% of the fuel a river-sea vessel would require a draft of
consumed by road. around 3.5 metres for carrying out coastal
operations economically. Addressing this
(iii) According to the World Shipping problem would entail large scale dredging
Council, emissions from ships are one- operations of the port and river channels.
sixth of that by road and one-half of
those emitted by rail .
(j) Lack of port infrastructure in the inland
(iv) Coastal shipping would help reduce regions and along the river channels capable
concentration of traffic on the already of accommodating small vessels and barges
strained road network of India. is also a hindrance to the growth of inland
shipping.
(v) Coastal shipping is much better suited
for handling large parcels, which rail
and road networks cannot compete (k) The approach roads leading to ports
are narrow, making them unsuitable for
with because of size and infrastructure containers/cargo movement. The inefficient
constraints, especially cement, iron ore
and coal. and underdeveloped supply chain becomes
a bottleneck in the development of coastal
(vi) It entails optimal use of India’s natural shipping and renders end-to-end logistics
advantage and resource – a long coast costs uneconomical, while also increasing
line and a wide network of rivers in transportation time.
many parts of country.
(l) Non-availability of concessional finances for
(f) Given that India is blessed with a long acquisition of coastal vessels, cumbersome
coastline, coastal shipping has been identified customs procedures, lack of quality
as a major potential growth area for the manpower, high import duties on bunker oil
Indian economy offering enormous benefits and spares are some of the other challenges
to the Indian commercial activities. that need to be addressed.

(g) As the need for capacity enhancement 2.2.3 Shipbuilding
accelerates over the coming years, it would (a) Shipbuilding traces its routes to pre-recorded
be inevitable to consider coastal shipping as a history and was one of the prosperous
strong option to ease the pressure on roads industries in ancient India. History shows
and railways. It is estimated that the nation us that the evolution of nations as
would save an estimated INR 15-20 billion manufacturing powerhouses during various
through diversion of 5% of cargo from road periods of time has a strong association with
to coastal shipping. their shipbuilding capabilities. The shipbuilding
industry has been amongst the most dynamic
(h) One of the major challenges restricting of the maritime sectors with the industry
growth of coastal shipping in India is that we shifting dominance from country to country.
do not have an integrated transport policy, or The British during early part of 20 century,
th
an institutional mechanism that encourages the Americans during post second world war,
and promotes inter-modal coordination. This the Japanese during 1960-90, the Koreans
has resulted in different modes competing post 1990 and China since early 2000
with each other leading to sub-optimal use with almost 50% share, have become the
and allocation of resources. Instead, a more undisputed leader in commercial shipbuilding.
integrated transport system with reasonable
share of road, rail, coastal and inland shipping (b) The consistent growth in Indian economy
needs to be developed. since 1990s, coupled with unprecedented
boom in commercial shipbuilding sector
(i) Non-availability of adequate draft is the other worldwide in the period commencing
impediment to the development of coastal 2002, gave ample scope to the Indian
shipping, as ship owners prefer to operate shipbuilding industry for growth. In the 10
th
coastal vessels having draft of 7-9.5 metres five year plan period (2002-2007), wherein
due to its economic feasibility. Adequate a subsidy scheme (30%) was granted by
depth for such vessels is not available at the Government of India to create a level
most of the non-major Indian ports. Even playing field for the Indian shipbuilders, India’s

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