The Sagar mala Project
About the Sagar mala Project : The Sagar Mala project is a strategic and customer-oriented initiative of the Government of India to modernize India's Ports so that port-led
development can be augmented and coastlines can be developed to contribute
in India's growth. It looks towards "transforming the existing Ports into
modern world class Ports and integrate the development of the Ports, the
Industrial clusters and hinterland and efficient evacuation systems through
road, rail, inland and coastal waterways resulting in Ports becoming the
drivers of economic activity in coastal areas.
Proposed Investment : The
Union Minister of Shipping on 5 October 2015 said, "The project includes
modernization of our ports and islands, setting up of coastal economic zones,
new major ports and fish harbors. We expect that the total investment in the
project would be to the tune of ₹70000 crore (US$10 billion)."
This plan
envisages
1.
Port
Modernization includes
a. Port capacity augmentation
b. Major ports Operational
efficiency improvement and
c. Development of Six megaports namely
West Bengal , Sagar
Island
Karnataka Tadadi
1.
Port connectivity
Improvement including
a. establishment
of Indian Port Rail Corporation &
b. Origin destination
Study for Key cargo Types including initiatives for traffic scenario for 5 10
& 20 years being developed
c. initiatives of
coastal shipments
2.
Port-led
Industrial development - Key initiatives
to develop
a. Port based
smart cities
b. Port led Industrial
development
c. CEZs Coatal economic
Zone
3. Coastal Community development - Skill
development, Light house tourism development and Fisheries development planned
Let us also look at a few success stories in Port led development
programs in other countries
Many countries with long coastlines have
leveraged ports for supporting industrial growth. Some examples of success
stories are
1 The refinery and petrochemical complex in Rotterdam
a. 5 oil refineries in the port of Rotterdam form
the core of the petrochemical cluster in the port area. The oil
refineries manufacture products such as gasoline, diesel, kerosene, heating oil
and feedstock for the chemical industry. The refineries in the port have a
combined distillation capacity of 58 million tonnes. In the Netherlands,
Belgium and Germany another five refineries are supplied with crude oil via
pipelines from the port of Rotterdam.
b. Ideal location for crude oil supply - The oil refineries in the port of Rotterdam
receive their crude oil by tanker from areas including the North Sea region,
Russia and the Middle East. The port of Rotterdam offers the advantage that
even the largest oil tankers can enter the port and load and unload at the oil
terminals in a single visit. The crude oil is transported by pipeline to the
refineries in Rotterdam and the hinterland.
c. Cluster with Vlissingen, Antwerp and Germany - The
petrochemical cluster in Rotterdam is not isolated. Together with the
refineries of Total/Lukoil in Vlissingen, Shell in Godorf, BP/Rosneft in
Gelsenkirchen and Total and ExxonMobil in Antwerp, the port of Rotterdam makes
up one of the three largest fuel hubs in the world. Excellent distribution
possibilities within Europe and overseas and the broad range of tank storage
ensure that also large-scale trade in fuels takes place in Rotterdam.
d. Production of fuels and chemical feedstock - The refineries
process the crude oil into various products. Around 85 per cent of the output
consists of fuels such as diesel, gasoline, gas oil, heating oil and LPG for
the European market or global trade. The other 15 per cent is naphtha, base
oils and bitumen. The naphtha is converted into aromatics or alkene and then
serves as feedstock for the chemical industry. The oils are processed into
lubricants, while bitumen is a raw material for products such as asphalt.
2. The steel cluster
in Pohang
Pohang was a small coastal city with a population
of 50,000. The next major development in
Pohang's growth came in 1968 with the inauguration of the steel maker POSCO,
and the local plant's commencement of production in 1972. The introduction of
heavy industry to the city brought the local economy to a blend of iron, steel,
shipbuilding and fisheries through the end of the 20th century. Posco based in the port city of Pohang — is world's
most efficient steel producer'. Analysts believe Posco can do a Samsung in
steel. Its innovative Finex smelting technology uses low cost iron ore and coal
to bypass costly coke and sintering processes.
3. The electronics
manufacturing cluster in Shenzhen.
The Electronics
Manufacturing Services industry has developed a number of meaningful clusters
in Shenzhen. These Electronics manufacturing clusters developed like a rolling
snowball and vitalized regional economies while defining manufacturing trends
for many years. The geographic concentrations of interconnected companies,
specialized suppliers, service providers, and associated institutions tend to
form from one or more catalysts and evolve to take on a life of their own. Clusters
tend to arise because the clustering effect serves to increase productivity and
lower costs, providing a microcosm of competitive advantage. The largest manufacturers in China namelu
Huawei and Foxconn have their manufacturing base in Shenzhen.
The author is a Shipping & logistics
professional and can be reached on
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