1. Sagarmala 1st Meeting of the National Sagarmala Apex Committee
Ministry of Shipping
Sagarmala
Building Gateways of Growth
1st Meeting of the National Sagarmala Apex Committee
5th October, 2015

2. Important pronouncements on Sagarmala
“The Government would evolve a model of port-led development…”
- Hon’ble President of India
“Our coastal area can be a channel for global trade…”
- Hon’ble Prime Minister of India
“Harnessing India’s long coastline will generate rich economic dividend to the country.”
- Hon’ble Union Minister of Shipping & RTH

3. Port-Led Development : Opportunity for India

4. Opportunity for port-led development in India
China: Province-wise GDP per capita ranking
India: State-wise GDP per capita ranking
Top 10
Top 11-20
Others
Top 10
Top 11-20
Others
Key Findings
China has 30x of India’s port capacity & 3x of India’s coastal GDP
India’s share of waterways in domestic transport is 2-3% compared to China’s %
India’s logistics cost is 3x of China’s as a percentage of manufacturing GDP
SOURCE: EIU, National Bureau of Statistics, State Information, Analyst Reports, Secondary Research, OECD, IPA, World Bank Report

5. Ulsan & Pohag (South Korea)
International examples of port-led development
China
Coastal Power Complex
Ulsan & Pohag (South Korea)
Automotive, Steel, Marine Cluster
Ulsan
Pohang
Tianjin port
250 MT
Shanghai Port
50 MT
330 MT
Guangdong Port
All major non-pit head power plant clusters in China are located in coastal regions
~630 MMTPA of thermal coal travels on coastal routes feeding into these plants
World’s largest automotive production complex and shipyard based in Ulsan
Industrial cluster at Pohang has 384 production units, including 17 MMT of steel production capacity
SOURCE: Secondary research

6. Automotive & Steel Clusters Refinery, Petrochemical Complex
Example of port-led development in India - Gujarat
Gujarat (India)
Petrochemicals, Power, Automotive, Steel
Automotive & Steel Clusters
Power Complex
Mundra
Port-led development accelerated the State growth rate to 8.15% per annum in 1990’s and subsequently to >10% per annum
Sanand
Jamnagar
Refinery, Petrochemical Complex
Vadinar
Hazira
Steel plant
SOURCE: Secondary research

7. Sagarmala Institutional Mechanism
National Sagarmala Apex Committee
Sagarmala Coordination and Steering Committee
State Sagarmala Committee
Central
Implementing Ministries
Central-level SPVs
Sagarmala Development Company (SDC)
State level SPVs
Port SPVs

8. Activities Undertaken
Engagement with Maritime States & Central Ministries
Activities Undertaken
1) Engagement with Chief Ministers of Maritime States and Union Cabinet Ministers
Union Minister of Road Transport, Highways & Shipping, vide letter dated , requested CMs of Maritime States / UTs and Union Cabinet Ministers for suggestions
2) Meetings with Maritime States
One Consultative meeting held in Ministry of Shipping
Eight Consultative meetings held in states covering all Maritime States
MSDC meeting held on ; Sagarmala concept presented & discussed
3) Presentation before the Parliamentary Consultative Committee
Committee deliberated on implementation of Sagarmala Programme on

9. Sagarmala: Industry-wise opportunities identified

10. Cargo % of total port traffic in 2013-14
Industries with strong linkages to port
Cargo % of total port traffic in
Sector
Industry
India
China
Energy
Thermal Coal (Power)
20% 8%
Petroleum, Oil and Lubricants (POL)
37%
14%
Manufacturing
Steel and allied industries
14%
43%
Discrete manufacturing (Containers)
12%
10%
Other Sectors
Others1
17%
25%
Key Findings
Four industries contribute about 80% of port traffic
China is far ahead in port-led development of “Steel and allied industries”
1Includes Food, Fertilizer, Chemicals, Cement & Other Dry Bulk Cargo Types
SOURCE: Basic Port Statistics of India, Transport Research Wing, Government of India,

11. Power Generation Cost Break-up
Thermal Coal: Coastal shipping opportunity
INDUSTRY PERSPECTIVE - ENERGY
Thermal Coal
Power Generation Cost Break-up
Thermal Coal Scenario 2020
Key Findings
` per kwh, plant location 1000 km from mine head
Southern & western states need coal for power production
Coal mines are located in Odisha and Chhattisgarh
100 MMTPA coal can be moved via coastal shipping to decongest railways
Potential saving of ~Rs. 7,000 Cr and 15% reduction in power cost
~30% of
Total Cost
Capex
-31
+120
+150
Coal cost 
-75
Coal
Logistics cost 
-32
-50
O&M
0.2
-42
Output (MMTPA)
2020
MCL
250
SECL
Total cost xx
Net coal supply
Commissioned
Coal field
Under construction
Port
SOURCE: CIL, Sigma Insights

12. POL: Coastal shipping and bunkering opportunity
INDUSTRY PERSPECTIVE - ENERGY
POL: Coastal shipping and bunkering opportunity
POL
POL Scenario 2020
MMTPA
Key Findings
Southern states will be supplied from surplus states (Odisha & Gujarat) via coastal shipping
Bunkering fuel sent from India to Fujeirah, Colombo, Singapore; Indian ships go there for cheaper bunkering
Current bunkering volumes in India: ~1.8 MMTPA
Total bunkering potential in India: ~12-14 MMTPA
To Fujeirah
+53
-2.2 +7
-0.4 -3
Colombo
Singapore -2 +5
For Bunkering
Refinery locations xx
Net POL products supply
SOURCE: OD Study

13. Steel: Coastal shipping opportunity
INDUSTRY PERSPECTIVE – MFG.
Steel
Steel Scenario 2015
Steel Scenario 2020
Key Findings
Southern and western states can be supplied from surplus states (Odisha, Jharkhand) via coastal shipping
Potential annual saving of Rs. 1,500 Cr by 2020 and Rs. 5,000 Cr by 2025
Mundra
+14 -7
+16 -2
+3.5
Haldia
+11 +9
+5.7 +4 -7
+1.5
Paradip
Mumbai
Vizag +3 -2 +6 -1
Chennai -5 -8
-3.6 -3
Cochin
Port xx
Net supply of steel
SOURCE: OD Study

14. Container: Exim container movement opportunity
INDUSTRY PERSPECTIVE – MFG.
Container
EXIM Container Volume Split FY 2014
Key Findings
Million TEUs, FY14
Indian containers take 1.5x more time than Chinese containers over the same distance
High inventory cost due to uncertainty
Incremental port capacity required in Maharashtra to handle increasing volumes of containers
Reduce dependence of East Coast cargo on Colombo by building a Container port near international shipping route
Developing deep draft container port in WB can facilitate East & NE India & Nepal trade
Port
Container source/ destination centres
Haryana
Delhi
Rajasthan
Uttar Pradesh
Kutch
Ahmedabad
Mundra
Chhattisgarh
West Bengal
Aurangabad
Haldia
Pipavav
Orissa
Dhamra
Mumbai
Hyderabad
South Maharasthra
Vizag
Bangalore
Chennai
Cochin
Tuticorin
Joining trade route at Singapore or Colombo
East West trade route is the trade conveyor belt for China Europe trade
South Tamilnadu
SOURCE: APMT; IPA statistics; Stakeholder interviews

15. Sagarmala: Key Enablers

16. Key Elements of Sagarmala and Opportunities
Port Modernization
Improve operations efficiency and augment capacity of major ports
Develop 4-5 new ports to cater to cargo traffic growth and reduce logistics cost
Develop a Transshipment Hub Port near international shipping route A
Port Connectivity Improvement
Increase coastal shipping volumes of key cargo – E.g. Coal, Steel, Cement, to reduce logistics cost and decongest rail and road network
Eliminate process bottlenecks to reduce container logistics time and cost B
Port-led Industrial Development
Port led development of heavy industries – E.g. cement and steel clusters to leverage coastal shipping for moving raw materials and finished products
Port led discrete manufacturing to reduce end to end container logistics cost C
Coastal Community Development
Create human capital for port-led industrial development through coastal community skill development and livelihood generation programs
Create community development fund to ensure sustainable development D

17. Activities Undertaken
Port Modernization
Activities Undertaken
1) Port Capacity Augmentation (FY )
Target: 30 projects; Investment of Rs. 14,226 Cr, MMTPA additional capacity
14 projects awarded; Investment of Rs. 8,714 Cr, capacity addition of MMTPA
2) Major Ports Operational Efficiency Improvement
104 initiatives identified for implementation; ~115 MMT incremental volume to be unlocked in existing port capacity; Revenue generation of Rs Cr
3) Development of New Ports
New sites identified: Sagar island (West Bengal), Vadhavan (Maharashtra), Colachel (Tamil Nadu), Tadadi/Belekeri (Karnataka), one site to be identified in central AP

18. Activities Undertaken
Port Connectivity Improvement
Activities Undertaken
1) Establishment of Indian Port Rail Corporation Limited (IPRCL)
IPRCL incorporated with equity participation of Major Ports & RVNL
7 projects already tendered for implementation (Total Cost: Rs Cr); DPR preparation initiated for 15 projects (Total Cost: Rs Cr approx.)
2) Origin-Destination (OD) Study for Key Cargo Types
Key cargo types covered: Coal (Thermal & Coking), Iron Ore & Steel, Container, POL & LNG, Cement, Fertilizer, Chemicals and Food Grains (85% of total cargo)
Traffic scenarios for 5, 10 and 20 years being developed
Inter-ministerial working group (thermal coal) formed; Inter-ministerial working groups for other cargo types currently being set up
Emerging opportunity: Rs. 40,000 Cr of Annual savings from logistic cost and time reduction for key cargo movement (Coal, Steel, Cement & Containers)

19. OD Study, Total Cost Saving Opportunity
Estimated Savings
2025, Rs. Cr
Theme
Initiatives 1
Coastal shipping initiative
Higher coastal shipment of coal by 100 MMTPA
Higher coastal shipment of other commodities (cement, steel, fertilizer, food grains, POL) by 50 MMTPA
11,500 2
Coastal capacities for steel and cement
New cement coastal capacity in Southern Gujarat, Central AP (80 MMTPA)
New steel coastal capacity in Northern Karnataka, Odisha, Northern AP (40 MMTPA)
8,500 3
Reduce time to export container by 5 days
Customs efficiency
Last mile connectivity (dedicated road corridors)
12,500 4
Reduce cost to export by Rs.3000 per container
Increase share of Railways in modal mix from current 18% to 25%
Transshipment hub at Southern tip
Three new container ports (Vadhavan, Central AP, Sagar)
7,500
Total 
40,000

20. Activities Undertaken
Port-led Development
Activities Undertaken
1) Port-based Smart Cities
Land identified in Kandla and Paradip for development of port-based smart cities
Tenders issued for conducting techno-economic feasibility study
2) Port-led Industrial Development
Industrial development plan for existing & new port locations under preparation
Marine cluster potential being evaluated (Katupalli and Ennore)
Coordination Committee constituted between DIPP & M/Shipping
3) Coastal Economic Zones (CEZ)
14 CEZs identified and perspective plans under development; SEZ in JNPT, Free Trade Warehousing Zone at Cochin & Ennore being implemented

21. Activities Undertaken
Coastal Community Development
Activities Undertaken
1) Skill development
NSDC to conduct coastal district skill gap analysis
Sector Skill Council to be set up to promote Maritime sector skill development
2) Community Development Fund
Guidelines for Community Development Fund under preparation
3) Lighthouse tourism development
EoI issued for 70 lighthouses; Investors Meet in Mumbai and 3 roadshows planned
RFQ for 8 lighthouses for development in PPP mode, EoI for 4 being invited
4) Fisheries development projects considered
New fishing harbour at Kulai; modernization of fishing harbour at Sasoon Dock, Mumbai
Fishermen capacity building, hygienic fish handling & high end products development

22. NPP Development Timelines
2015
2016
Activities under NPP Development
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar 1
OD study of key cargo types 2
National Multimodal Grid
(including coastal shipping / IWT) 3
2035 Port Master Plan for major ports
Phase #1 (4 ports)
& debottlenecking existing capacity
Phase #2 (4 ports)
Phase #3 (4 ports)
TS Port 4
New port master planning
Sagar
Port Master Planning
Vadhavan
Port Master Planning
2 new sites
Master Planning for Port #3 & #4
Port led industrial development plan &
Phase 1 5
perspective plan for CEZs
Phase 2
Marine Cluster development 6
NSAC is requested to approve actions taken as part of NPP under port modernization, port connectivity improvement, port-led development & coastal community development and the timelines of NPP as above

23. Expectation from Stakeholders

24. Expectation from the State Governments
Action
Requested
State Governments are requested to:
Set up State Maritime Boards in AP, Goa, WB, Puducherry & Lakshdweep
Set up SSC to coordinate and monitor Sagarmala activities (Gujarat, Maharashtra, Goa, Karnataka, TN, Kerala, Puducherry, AP)
Provide necessary inputs for NPP and CEZ Master Plan preparation by providing data and nominate suitable officers for working groups
Actively participate in SCSC, NSAC and sector-specific working groups
State Industrial Development Agency to factor the land available with major / non-major ports in its plans for industrial development
Land allocation for identified projects; Financial partnership through SPVs
Provide statutory clearances such as land use change, environment etc.
Fast track project appraisal & approval and implement projects under the State’s ownership in a timely manner

25. Expectation from the Central Line Ministries
Action
Requested
Ministries of Railways, Road Transport & Highways, Coal, Power, Steel, Petroleum & Natural Gas, DIPP, other Departments & Central Line Ministries requested to:
Provide necessary inputs for NPP and CEZ Master Plan preparation by providing data and nominate suitable officers for working groups
Actively participate in SCSC, NSAC and Sagarmala related working groups
Make necessary budgetary provision and land allocation for projects
Provide statutory clearances such as land use change, environment etc.
Fast track project appraisal & approval process and implement projects under the Central Line Ministry’s ownership in a timely manner
M/o Home Affairs to expedite action on pending bills for creation of SMBs in Odisha, Kerala, Karnataka, A&N islands after getting comments from states.

26. Thank You