Coastal Shipping in India

ACKNOWLEDGEMENT

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I hereby certify that the work described in this thesis is my own work, except where otherwise acknowledged, and has not been submitted previously for a degree at this or any other university.

Signature:

Dated:

ABSTRACT

Currently railway and road means are being used as modes of bulk transport. Coastal shipping has the potential to carry this large part of this traffic. Also, it is an exceptionally cheap, environment friendly, energy proficient and profitable mode to transport goods or cargo. Even though it is true that the whole coastal trade is set aside for Indian ships, still the development in this sector is not significant. In India coastal shipping is very much affected by factors like major port giving fewer yields, scarcity of ship repair services and spare parts and under-development of small seaports. Even investors and ship owners seem to be unwilling and hesitant to purchase efficient sea-vessels because of various barriers like difficult custom regulations, time-consuming clearance processes, costly labour, etc.

By giving required monetary inducements for the growth of the coastal shipping sector and by simplifying custom regulations, policies and building necessary infrastructure conveniences could contribute highly in making this sector more attractive and effective. There is a need to harmonize the growth and improvement of small sea-port with the requirements of this sector. Hence, coastal shipping should be given a status and importance equal to the various means of transport, particularly with respect to the regulations, policies and procedures of customs, which act as a barrier for coastal shipping from realizing its actual production capacity. In order to promote the sector of coastal shipping, steps have already been taken to award priority berthing to sea-vessels without priority berthing tariffs. Also, ships and sea-vessels have been excused from the fee payment of minor tolls.

This sector entails no investment in tow facility except for the navigational assistance and relevant terminal services. Taking into account the gigantic shoreline and harsh clogging experienced by the ground modes of transportation, coastal shipping suggests a valuable substitute with improved energy efficiency and minor expenses.

TABLE OF CONTENT

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION TO COASTAL SHIPPING1

Coastal shipping1

CHAPTER 2: METHODOLOGY4

A. OBJECTIVES OF RESEARCH4

B. RESEARCH METHHOD AND DESIGN5

C. Research Type5

D. STUDY LIMITATIONS5

CHAPTER 3: COST AND REVENUE7

COST7

A. CAPITAL EXPENDITURE; (CAPEX)7

B. Day to Day COSTS8

C. TYPES OF COSTS8

D. COSTS; (TECHNICAL DEPARTMENT)9

E. COSTS; (SUPPLIES)10

F. COSTS; (INSURANCE)11

G. DUTY COSTS; (IMPORTS)13

H. TAXES15

I. TAX-SERVICE16

J. COSTS; (ADMINISTRATION)16

K. COSTS; (VOYAGE)17

REVENUE22

CHAPTER 4: POTENTIALS OF CARGO24

INDIA'S COASTAL SHIPPING IN INDIA; (CARGO POTENTIAL)24

A. COMMODITY MOVEMENT; (COASTAL SHIPPING)24

C. MAGNITUDE OF PETRORLEUM OIL AND LUBRICANT MOVEMENT; (COASTAL SHIPPING)31

D. ANALYSIS OF COMMODITY32

E. LIQUEFIED NATURAL GAS (LNG)37

CHAPTER 5: INFRASTRUCTURE FACILITIES OF INFRASTRUCTURE41

Different Facilities of Infrastructure41

A. BERTH41

B. EQUIPMENTS FOR CARGO HANDLING45

C. CONNECTIVITY VIA INLAND54

D. IN-LAND WATER TRANSPORT57

NATIONAL WATERWAY-163

NATIONAL WATERWAY-267

NATIONAL WATERWAY -369

CHAPTER 6: REGULATIONS OF GOVERNMENT72

A. COASTAL SHIPPING; (GOVERNMENT POLICIES)72

B. DIFFERENT REGULATIONS OF GOVERNMENT75

CHAPTER 7: CLASSIFICATION SOCIETIES84

CHAPTER 8: ANALYSIS AND FINDINGS85

CHAPTER 9: SUGGESTIONS AND RECOMMENDATIONS86

CHAPTER 10: SUMMARY AND CONCLUSION88

References90

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