Shipping industry seeks budget sops, govt backing for skill development

Budget is a great leveller and it imparts the government with the wherewithal to initiate and direct economic growth. The maritime sector, including, ports, shipping industry and merchant navy has the potential to ignite growth, both through a trade resurgence and development of ancillary businesses.

Governments, both past and present, have tried to bring maritime industry into focus by announcing some major proposals to boost infrastructure and thereby the industry, but nothing much has been done to develop maritime transport industry so far.

The shipping industry is sore that despite promises by successive governments, the industry failed to get the necessary thrust it deserves and that governments have not initiated steps in right earnest.

Though development of maritime transport industry, including ocean and inland and coastal shipping is one of the biggest ideas for boosting economic development of the country, governments have not so far given the necessary thrust. Today, the 7,500-km coastline of the country is grossly underutilised.

This budget gives an opportunity for the government to lay a strong foundation for an all round development of this sector, including ports and inland and coastal shipping, and very importantly creating enthusiasm among the youth for promotion of merchant navy by granting a liberal annual budget outlay and encouraging private participation along with foreign participation.

The new government at the centre must give a boost to merchant navy and shipping industry in general as it is the second line of defence and the backbone of our economy, says Capt Sunil Nangia, editor of Sailor Today.

In a pre-budget memorandum submitted to the government, Capt Nangia said there was an urgent need to revive education, training and employment opportunities in this sector, including the creation of a ''Merchant Navy National Cadet Corps'' under the ministry of shipping and ministry of human resources development and skill development to preserve the quality, practical skills and competence of qualified human resources for merchant navy in India.

Merchant navy, he says, has always been a promising career option, though not many are aware of this profession. Apart from the high profile and secure job opportunities it offers, merchant navy can be an adventurous ride too. Many of the young Indians are still not aware of this profession and its career prospects, says Capt Nangia.

Capt Nangia is of the opinion that there are many more aspects which the government should look into as the shipping industry urgently requires reforms, policies and this, he said, calls for active participation and representation in Parliament by those actually involved in the profession. This will help bring this sector back to its past glory and in turn get the Indian economy back on track.

This budget gives an opportunity for the government to lay a strong foundation for an all round development of this sector, including ports and inland and costal shipping, by granting a liberal annual budget outlay and encouraging private participation.

''Maritime transport is a critical infrastructure for the economic development of a country. It influences the pace, structure and pattern of economic development.

''India is set to embark on a high economic growth path, increasing pressure on the port capacities available at present. The current emphasis on 'Make in India' project is also expected to multiply outbound and inbound merchandise trade in India in the coming years to the proportions seen in developed countries, increasing the need for building new port capacities and raising the efficiencies of existing ports further, '' he says.

To cope with the emerging demand and to harness the much safer, cheaper and cleaner mode of transportation like water-borne transport better, Capt Nangia highlights the following demands of the industry:

Top on the list of priorities that needs immediate attention of the ministry of shipping for the revival, development and growth of the shipping sector are:

• Reviving of ports, revamping of infrastructure at many ports like Mumbai, Kolkata etc; Creating effective contingency plans for the ports; Investment in infrastructure and upgrading / maintaining of existing facilities is the area to look into. 
• Upliftment of financially decaying maritime companies and organisations.
• Assisting and controlling infrastructure growth and development in setting up new ports, shipyards, globally competitive dry and floating docks with foreign investors, which are economically attractive to the shipowners.   
• Allowing foreign investment in maritime infrastructure building.
• Image building and promotion of India as a global provider of young shipping professionals and strong shipping hub. Develop India into a ship-making hub and iron out policy issues relating to incentives for beleaguered Indian ship builders.
• Government needs to look into investments in pilot facilities, harbor control centers, eco-tourism, coast guard capabilities, and seafarer empowerment.
• Special incentives and priority should be given to maritime professional, who have a good track record and entrepreneurial skills, providing them with easy means and support to venture into ship owning.

Capt Nagina said the maritime industry can prosper if the government pursues speedy execution and commissioning of the Sagar Mala (Ocean necklace) project. With the announcement of Rs25,000 crore plan to create a national waterway grid linking Ganga, Brahmaputra, Mahanadi and Godavari rivers - this itself is a big and welcome boost to the shipping community. The government needs to ensure that this ambitious project is completed in time by providing sufficient funds to kick-start its implementation on various fronts, so that it can be completed in an eight-year timeframe. (The project proposes to focus on development of coastal and inland water transport infrastructure and coastal economic regions, and promotion of coastal tourism).

For this he suggested the following:

• Streamlining of custom duties and implementing procedures;
• Creation of dedicated facility for coastal vessel in all major ports and selected minor ports, road and rail linkages and connectivity to ports;
• Competitive advantage to Indian liners by introducing a concept of India controlled tonnage. Build competitive advantage to Indian liners by introducing a concept of India controlled tonnage;
• Provision of soft and long term loans to aspiring entrepreneurs for acquisition of new tonnage;
• Providing incentive schemes to cargo owners to divert cargoes from rail/road to sea;
• Provision of incentives to shipowners through operating cost or capital expenditure incentives;
• Restructuring of all the major ports into corporate entities;
• Rapid development of coastal shipping and inland water transport;
• Resolving policy issues relating to incentives for beleaguered Indian ship builders;
• Rationalisation of fuel charges, removal of subsidies on diesel for road sector and / or bringing diesel prices at par for road and sea. Setting up of strategically located low cost fuel supply terminals;
• Special focus on cleaning and deepening of sea, rivers and ponds;
• Focus on creating quality manpower; Development of skills and training to shipboard personnel, to keep them at par, with latest maritime technology advancement in other developed countries; Lucrative salary package for crew with added incentives;
• Improving documentation procedure and approval by high-tech and secure technology;
• Focus on capacity in the form of dedicated tonnage; and 
• Implementing strict international regulations and addressing safety related issues on priority. Adhering to all international regulations and being at the forefront in implementation.

If the Government of India is able to implement even 40-50 per cent of the demands over the next five years, the country would be able to achieve a significantly positive shift in Indian shipping and economy, he added.