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Sector structure/market size
The Indian coastline is dotted with 12 major ports and 187 minor ports. According to the Indian Ports Association, these major ports together handled a total of 519.24 million tonnes (MT) of cargo in 2007-08, an increase of 11.94 per cent over 463.78 MT handled in 2006-07. In 2008-09, cargo traffic at major ports increased to 530.4 MT.
During April to December 2009, major ports handled 411.95 MT, an increase of 5.14 per cent over the same period in 2008.
For the third quarter ended December 2009, the major ports in the country have registered cargo growth of 10.7 per cent compared to the same period last year, while sequential growth has been 9.7 per cent, according to data from the Indian Ports Association (IPA).
India is also likely to emerge as a major destination for container operations. The container trade went up to 7.2 million twenty-foot equivalent units (TEUs) by 2007 from 2.47 million TEUs in 2000.
The Indian shipbuilding industry comprising 27 shipyards—including eight public sector and 19 private sector shipyards—is on a roll driven by the booming maritime trade. According to an industry report, the shipbuilding sector has witnessed a 359 per cent increase in the turnover of shipyards from US$ 216.60 million to US$ 778.90 million in the last five years. By 2012, it is likely to corner around 3 per cent of the global share with an annual turnover of US$ 3.72 billion.
Minor ports are expected to add 610.85 MTPA capacity during the Eleventh Plan. A section of experts feels that new capacity could add up to one billion tonnes by 2011-12. Gujarat, Maharashtra and Andhra Pradesh are likely to drive the port capacity expansion of the country over the next five years.
Investments
According to the Planning Commission, there is an investment opportunity of US$ 25 billion by 2011-12 in India's shipping and ports sectors, as the country seeks to double its ports capacity to over 1,500 MT. Segment-wise, while ports sector would provide a US$ 13.75 billion investment opportunity, shipping and inland waterways are likely to present a US$ 11.25 billion-investment opportunity.
In a major thrust to expand capacity at important ports in the country, the Ministry of Shipping has awarded seven projects worth over US$ 387 million, to be developed through the public-private partnership (PPP) route.
In November 2009, another three projects worth US$ 1.66 billion were approved, to be developed through public-private partnership (PPP) mode.
Moreover, in January 2010, the Public Private Partnership Appraisal Committee (PPPAC) gave its nod for the proposed US$ 795.59 million mega container terminal at Chennai port. The port trust is likely to award the project by March 2010.
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