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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