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MG - GMB Jan 11
- 1. Perspective maritime gateway January 2011 50 Gujarat Maritime Board Heading to Inclusive Growth The year 2010 has been vibrant for Gujarat Maritime Board – a prime advocate of port-led development. Surendra Sharma provides a glance at the happenings in 2010 across the maritime segments regulated by GMB. 30 ports at a cost of ` 90,000 crore are planned in the next five years. G ujarat is celebrating its golden jubilee from May 1, 2010 as ‘The Year of Progress’. It made great strides, despite challenges, to reach the global scenario with its track record of growth and investor- friendly policies. While the state has been the engine of progress, its maritime sector led by Gujarat Maritime Board (GMB) has been the driver. Several proactive and futurist policies, like the solar power or the state’s ownership in oil and gas exploration, the first for any state, have been addressing the needs of the country. The state’s maritime policy has been proactive and government participation has ensured success in identifying prospective port projects, conducting feasibility studies and inviting private investment. The precedent GMB model of maritime development and the success it has achieved in creating infrastructure for the country through private sector participation shines as a model for other maritime states. The year 2010 has been an eventful year with several initiatives being implemented, including the shipbuilding policy. Some of them are covered below: Ship recycling Recycling industry at Alang with a it, conduct technical studies and prepare development plans, assist and coordinate to provide supporting infrastructures and common amenities both on the land and sea side to facilitate shipyards to develop. It will also assist in soft skill development and setting up of training and R&D institutes. The world’s biggest dock with a length of 680 metre and width of 60 metre is to be constructed by Pipavav Shipyard Limited at a cost of ` 1,000 crore to undertake repair and maintenance of vessels. Three more shipbuilding yards worth ` 1,070 crore have also been approved. Port cities and gateway ports The state has been inviting landlocked states like Delhi, and Punjab to have their own captive ports in partnership with GMB along its 1,600-km-long coastline. The government is leading the development of 30 small ports with an investment of ` 90,000 crore in the next five years. The plan needs to also include maritime states, to enable development of maritime infrastructure for coastal shipping. The state also plans to develop self- sustained port cities with modern urban amenities around Pipavav, Hazira, Mundra and Navlakhi ports which will also serve as international cargo transportation hubs. Vessel Traffic & Port Management System (VTPMS) As mentioned in the earlier issues, a Vessel Traffic and Port Management System (VTPMS) that has been installed and put into operation from turnover of ` 7,500 crore enjoys a share of above 50 per cent of the total ships recycled in the world. As against 70 plots in 2008-09, it has 170-odd active ship recycling plots where 3 million tonnes of steel is estimated to be recycled every year. GMB’s ‘Green Alang’ initiative covers upgrading water treatment plants, insulators and waste handling facilities, training sites for skill development of workers, introducing fixed working hours, developing eco-friendly infrastructure and introducing best practices with healthcare management for workers. It also enables recycling shipyards to provide gas-free certificate issued after removal of oil sludge. Ship building As shipbuilding and ship repair in the state contribute to 60 per cent of the Indian order book, GMB has come up with Shipbuilding Policy 2010. The policy aims to explore the potential as well as the resources available on the coast for shipbuilding though private investments. It seeks to provide world-class ship repair facilities by providing support and encouraging establishment of downstream ancillary industries. The policy gives priority to shipyards within Marine Shipbuilding Parks in the territorial limits of the existing GMB ports, private ports and isolated stand-alone locations, in exceptional cases. As a developer, regulator and facilitator, GMB will acquire government land for the MSPs and other shipbuilding yard sites, develop
- 2. maritime gateway January 2011 51Gas Panic! The rise and fall and rise of oil prices page no. 52 felt the need to cover the risk, till a central policy plan can cover such mishaps. The future outlook The year 2011 starts with Gujarat holding the 5th Vibrant Gujarat Summit which offers a platform for global investors to explore investment opportunities in the state. With preceding biennially summits since 2003 getting investment proposals of over US$ 370 billion, the event has gained global recognition. The state of Karnataka is also participating in the event. GMB aims to cover 40 per cent of the country’s cargo, by increasing its port capacity to handle 500 MT by the year 2015. Important port projects under development include Chhara, Dahej, Hazira, Mahuva, Modhawa, Kuchhigarh and Nargol. Comprehensive development As part of comprehensive development, GMB focusses on allied projects. These include last-mile connectivity projects in road and rail, development of marine tourism facility like marinas, cruise lines and marine parks. Ro-ro services, LNG terminals, private jetties, bunkering terminals, two mega logistics parks surrounding the western Dedicated Rail Freight Corridor (DRFC) under PPP mode, coastal shipping, shipbuilding, security enchantment, training institutes and prevention against pollution will also be covered. A newly constituted Gujarat Coastal Area Development Board will work with GMB to develop the marine / coastal resources. It will primarily explore potential of tourism, forest & environment, fisheries development, industrial development and natural calamity management. GMB will now require a new mandate to play a pivotal role of developing compatible infrastructure in other states and in due course the neighbouring South Asian Association for Regional Cooperation (SAARC) countries. This will help in development of coastal shipping, ro-ro and other shipping concepts in the country, along with bilateral trade and help India emerge as a shipping hub in the region. As optimism prevails in the maritime sector, it is time for industry captains to signal full speed ahead in infrastructure projects and help the country bridge the gap between capacity and projected demand. Surendra Sharma (surendrasea@gmail. com) is an expert on greenfield marine project development, with special focus on western India. He has also been actively associated with various management consulting projects (strategy and operations) for private, state and central government agencies. August 15 this year covering the Gulf of Khambhat puts Gujarat coast in line with international practices. VTMS will enhance protection of vessels carrying hazardous cargo, provide vessel traffic information and navigation advice, monitor shipping lanes and enforce compliance of safe navigation regulations, assist the coast guard and other authorities. It will also help detection of oil spill and improve overall port efficiency. The fee will be collected from the ships that call at the ports that are covered by the system. A similar facility will be installed in the Gulf of Kutch shortly. Protection and Indemnity (P&I) insurance cover Effective November 2010, ships calling at Gujarat ports are required to furnish documents of payment of premiums for protection and indemnity (P&I) cover for the ships, covering wreck removal and pollution. This is to ensure that in case of any oil spill there is sufficient insurance cover available for cleanup operation and wreckage removal. This is keeping in mind the earlier oil spills along Gujarat coasts and the recent oil spill off Mumbai on August 7, 2010, which cost about ` 250 crore in clean- up operations. While other states do not have such a policy, Gujarat with its high exposure to oil cargo traffic and specialised chemical vessels has I personally believe that infrastructure is the enabler of development and we are committed to the cause. We have vision documents for the next 20 to 30 years. We are aiming to build the best of infrastructure from a global perspective. Gujarat is not only the pioneer in public private partnership but is recognised as the most admired PPP enabler. Narendra Modi Chief Minister of Gujarat Quoted GMB milestones • Highest number of operational ports • 16 per cent CAGR cargo growth during 2004-2010 • First to introduce port policy & shipbuilding policy • First to start private port & rail company development • Use of double-stack container trains • Development of largest ship recycling yards • Operation of 2 LNG terminals • Launch of dedicated chemical port • Introduction of VTPMS The Growth Path