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Business Environment and Law-Infrastructure Of The Economy

Sea Transport- Infrastructure Of The Economy

   Posted On :  04.05.2018 06:05 am

The government has recently approved a scheme, which envisages voluntary cargo support of the shippers to indian shipping lines, up to 40% of the value of linear cargo transacted in the foreign trade in a phased manner.

Sea Transport
 
 
The government has recently approved a scheme, which envisages voluntary cargo support of the shippers to indian shipping lines, up to 40% of the value of linear cargo transacted in the foreign trade in a phased manner. To reap the benefits of the scheme, SCI has beefed up its customer services cell to attend to the requirements of shippers on a priority basis.
 
Steps have been initiated by the government to frame guidelines for indian shipping companies as per the international safety management (ISM) code, which was adopted by the international maritime organization (IMO) in november 1993. Under the ism code, which will be applicable to passenger ships and tankers by july 1998 and for other vessels by july 2002, shipping companies are required to provide special training to on shore staff and the crew on board. There are eleven major ports and 139 operable minor ports located along the 5560 km long coastline of the country.
 
The phenomenal growth of our merchant navy from a modest base of 0.2M GRT in 1947 to 6.3 M GRT has placed our country 17th among the maritime nations of the world. Today, our shipping industry can boast of a modern versatile and technically superior fleet with an average of 13 years as against the world average of 17 years and is well equipped to compete in the international markets.

Strengths, Weakness And Remedies Of Shipping

 
 

Strengths

 
            Long coastline of over 5700 kms and almost the whole of foreign trade passing across the seas.
 
            Largest merchants shipping fleet among the developing countries and 14th in the world in shipping tonnage
 
            Skilled and competent managerial and ship board personnel
 
            Huge potential in the make of india becoming one of the signatories of the WTO. There will be considerable increase in sea-borne trade
 

Weaknesses



Limited cargo handling capacities of ports

Challenge from containerisation which is highly prevalent in advanced countries

Fund starving

Undue hardships to ship owners due to conversion of fob items into cif, which has been introduced because of decanalisation.

Remedies


  Amend the Major Port Trust Act, 1963, to allow private sector bot projects at the 11 major ports

  Raise the capital expenditure ceiling of the port trust boards from rs.5 Crore to rs.200Crore.

  Abolish the need for pib approvals for private projects that do not need port trust investment

  Unbundle activities like cargo handling and warehousing into profit centers.

  Allow port-based businesses to create captive facilities for themselves under the BOT system

        Initiate restraining programmes to reduce labour resistance to private sector participation.
Tags : Business Environment and Law-Infrastructure Of The Economy
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