Government committed to bring down logistics cost to world average of 9% within 5 years: Union Shipping Minister

Coastal Shipping, Inland Waterways and Cruise Tourism need to be capitalized
Directorate General of Shipping Celebrates 70th Foundation Day

The Union Shipping Minister Shri Mansukh Mandaviya inaugurated the 70thFoundation Day celebrations of Directorate General of Shipping (DGS) in Mumbai today. Addressing a conference on “Indian Maritime Administration, 70 years – The Vision Ahead”, organized by DGS, the Minister said that the maritime sector has a pivotal role to play in the making of a New India. He said that the Government is committed to bring down the logistics cost of Indian industry from 14% at present to the world average of 9%, within five years. He said that this will help increase our exports by 25%, and bring down price level by 2.5%. The event was organized at the Maritime Training Institute of Shipping Corporation at Powai in Mumbai, on September 3, 2019.

The Minister told various stakeholders of the maritime industry that coastal shipping, ship repair and maintenance, cruise tourism and inland waterways are opportunities that need to be capitalized. Inland waterways and coastal shipping can help reduce the cost of public transportation as well, said the Minister. Highlighting the importance of adaptation and innovation in solving problems, the Minister exhorted the industry to not be threatened by technology; he said that technology creates opportunities as well and that competition needs to be faced courageously, it being the key to success.

Shri Mandaviya informed that he is in talks with the Union Finance Minister on bringing down the cost of capital, especially for shipbuilders and coastal shipping players. He added that the government is considering to allow Indian entities the long-term charter to operate foreign ships; he said this will support small entrepreneurs and develop coastal shipping. He assured the industry that the government is stable, industry-friendly and supports wealth creators, as the Prime Minister pointed out in his Independence Day 2019 address. He exhorted the audience to embrace continuous learning, which will lead to reform, innovation and better outcomes.

Earlier in the morning, the Minister inaugurated a course titled, Proficiency in Survival Craft and Rescue Boats (PSCARB), to be conducted by Maritime Training Institute, SCI.

He also inaugurated an exhibition put up by DGS, to highlight the glorious history and achievements of the Indian maritime sector.

On the occasion, the Minister hoisted the national flag, took the salute and inspected the Guard of Honour. Shri Amitabh Kumar, Director General of Shipping; Capt. Anoop Kumar Sharma, CMD, SCI; seafarers, stakeholders and various other dignitaries were present. Four contingents of Trainee Cadets representing Maritime Training Institute from East, West, North and South regions of the country offered the Guard of Honour. The 5th contingent was exclusively of women cadets. A contingent each of Indian Navy and Indian Coast Guard was also part of the contingent to symbolize the close co-operation between the DG Shipping, Coast Guard and Indian Navy.

Addressing the conference, Additional Secretary, Ministry of Shipping, Shri Sanjay Bandopadhaya said that the Merchant Shipping Act needs to evolve with changing realities. He said that the IMO has been very active in coming up with regulations concerning environmental protection. He said that we need to take advantage of emerging technologies and trends.

Director General, Shippping, Shri Amitabh Kumar observed that the Indian maritime sector has come a long way from 49-50 registered vessels and 0.1 GMT in 1949 to 1,209 ships and 12.72 GMT in 2019. There are 182 training institutes under the regulatory ambit of DGS, and India presently has more than 2 lakh active seafarers, he said. The DG highlighted the need to explore solutions to issues such as high cost of capital, changing regulatory environment and business atmosphere, in order to boost the growth of the sector. He expressed confidence that India’s share of coastal and exim trade will grow in geometric proportion in the near future. Stating that the government is working towards reducing logistics costs, the DG added that the support of entrepreneurs is required in transforming the sector. Saying that the seafarers of today are the ship-owners of tomorrow, he encouraged small and marginal entrepreneurs to enter the industry.

Nautical Advisor (in charge) to the Government of India, Captain K. P. Jayakumar gave a presentation on The Future Challenges of the maritime sector. Asserting that every challenge is an opportunity, he said that climate change offers opportunities to participate in formulation of revised standards of seafarer training. Speaking on the trend of ultra large vessels, Shri Jayakumar asked the audience whether a shift can be made from ship-to-port concept to port-moving-to-ship, where port services are provided at the ship itself. He also spoke on the need for the sector to explore alternate fuels such as hydrogen and solar energy.

In his presentation on “Business Transformation in Container Shipping”, Head, Customer Care, CMA CGM India, Shri M. P. Anand highlighted the role of technologies such as Internet of Things, Big Data, blockchain and Robotic Process Automation in improving customer visibility of supply chain, and in improving customer experience, business processes and operational efficiency.

Presenting on “Impact of Disruptive Technologies in Maritime Industry: Future of Shipping”, Area Manager, DNV GL Maritime, Shri T S Girish said that connectivity, digitalization, automation and mega trends are driving the shift to increased fuel efficiency, transition towards remotely operated and autonomous ships, reflecting the ambition to enable cost efficiency without loss of safety or operational performance.

Highlighting the potential of Maritime Development Fund, a dedicated fund for the maritime sector, former Deputy Managing Director, EXIM Bank, Shri Debashish Mallick said that such a fund, with capital provided initially by the government and multilateral organizations, can help bridge the need of the industry for low-cost long-term finance. He said it will also increase the volume of funds available and will be tuned to the deep and long trend cycles which are characteristic of the sector.

About Directorate General of Shipping

DGS has completed 70 years of its existence and its foundation day is being celebrated today on 3rd September 2019. This special day has been dedicated to reflect not only the beginnings of the Directorate and its achievements, but also on the significant development since the Directorate’s inception and to chart out the future course for the Directorate to boost upon safe, secure and pollution free shipping. It is a day set aside to celebrate our history and revisit and reconnect with the continuing journey of the Directorate.