India Determined to Raise its Share of Global Shipbuilding by 2020

The Indian government and shipping industry have established a steering committee in a bid to become a major bunkering destination and increase the nation’s share of global shipbuilding to 5% by 2020.

Various associations had been working in isolation but ministers said it had become apparent that a cross-industry body was needed. The steering committee has been established with various representatives from the shipping industry and the government to focus on achieving the aims set out in India’s Maritime Agenda 2020, published last year.

Stone Chambers barrister Ravi Aswani, who attended the shipping conference at which the committee was announced, said: “There was a really palpable feeling among speakers and delegates that now was India’s time to strike and take its place on the world shipping stage. India was perceived to have a dynamic and ascendant economy at a time when the developed world was in real economic difficulty.”

Mr Aswani said it was noteworthy that the conference was held in New Delhi and not in Mumbai, which has previously been the default venue of choice for such events, as this is where many of the shipping interests are based. The move indicated increased involvement from the government.

Shipping minister Shri GK Vasan said development of India’s port and shipping industry was critical to sustaining current levels and achieving higher levels of growth in the years to come. The capacity of Indian ports stood at 1bn tonnes per year last January but rose to 1.2bn tonnes by year-end.

The Maritime Agenda 2020 envisages capacity should rise to 3.2bn tonnes by 2020.

Targets for growth include dredging deeper ports, improving the infrastructure necessary for efficient evacuation of cargo to and from ports, and developing support services such as bunkering, which is not of the same standard as in more established jurisdictions such as Singapore or Hong Kong.

“It was mentioned by a number of speakers that geographically India has a huge advantage as it is a destination on many shipping routes,” said Mr Aswani. “However, it was also acknowledged that India has not marketed itself as a bunkering destination and not all ports presently have the facilities to accept vessels simply for bunkering. However, there was a sense that people wanted to change this.”

Mr Aswani said the main debate on bunkering centred on pitching India at the right level in terms of quality and price.

India’s share of global shipbuilding stands at less than 1%. Domestic yards have been successful in building ships for the Indian navy but this has not been replicated in the private sector, even on a domestic level.

Liz McMahon, Lloyd's List, January 2012

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This article appeared in Lloyd's List on the 25th of January 2012. For more information visit www.lloydslist.com