Escolar Documentos
Profissional Documentos
Cultura Documentos
1. Introduction and Policy Updates 2. Trends and Outlook 3. Capacity Addition 4. Tariff Issues 5. Taxation Regime 6. Private Participation Models 7. Challenges 8. Recommendations 9. Comp. of FP (Adani/Essar)
Capacity
Capacity growth scenario The overall port capacity in the country is expected to grow at a CAGR of 13.3% from 1,020 MT in FY11 to 3,130 MT in FY20. The capacity at nonmajor ports is projected to expand at a faster CAGR of 18% during FY1120 from 375 MT to 1,670 MT. As compared to this, the capacity at major ports is expected to grow at a CAGR of 9.5% during this period, from 645 MT to 1,460 MT. The share of non major ports in port capacity is anticipated to increase from 36.8% in FY11 to 53.4% by 2020.
Tariff Issues
For Non major ports, the chief risk originates from proposals to bring them under tariff purview, with the latest such step being the Draft Port Regulatory Bill 2011. In major ports, the main tariff risk for the BOT (build-operate-transfer) operators originates from certain anomalies in the Tariff Authority for Major Ports (TAMP) Guidelines. There was a sharp reduction in tariff rates being ordered by the regulator for some main terminals of the country namely Gateway Terminals India (GTI); Nhava Sheva International Container Terminal (NSICT); Chennai Container Terminal Ltd (CCTL) and Chennai International Terminal Pvt Ltd (CITPL). Further there are efforts underway to refine the TAMP guidelines, wherein again the proposals under consideration (The Energy and Resources Institute- TERI recommendations) are viewed to be unfavorable for industry participants. Tariff risk thus continues to be a key event based risk factor for the port sector entities.
Taxation Regime
Direct tax The Government proposes to introduce the Direct Tax Code, 2010 (DTC) to simplify and rationalize existing tax laws, rates and exemptions and make
Private Participation
Challenges
Recommendations
Policy reforms Construction of dedicated freight corridor projects (railways and roads), Development of coastal shipping and inland waterways, which may help to reduce the pressure on roads and railways and increase hinterland coverage Guidelines on areas such as licensing, environment, conservation, safety, quality of services, dispute resolution and container freight station (CFS) development can be revaluated and simplified Emphasis on containerization The share of container traffic in Indias total port traffic has been rising, but total container throughput is still substantially low as compared to transshipment hubs in Singapore and Dubai Setting up of ultra mega ports (UMPs) with integrated industrial, residential and transportation hubs Human resource development (HRD) and retention According to the Maritime Agenda 2020, the global demand for marine staff is expected to rise from 1.15 million at present to 1.6 million by 2020. Creating an efficient and transparent mechanism for shipping companies and training institutes to trade in training slots Collaborating with foreign universities for personnel to attend courses relating to the maritime sector Establishing more campuses of the Indian Maritime University (IMU) and opening more institutes that will impart education and training in specialized sectors such as dredging
Financial Performance
money.rediff.com