Sagarmala

Development of Port-led infrastructure to reduce the cost of logistics by utilisation of India’s 14500 kM long water ways and 7500kM coastline.

Background:

  • India has 7500 kM long coast line and potential of 14500 kM long water ways and strategic location on the route of international maritime trade route. Sagarmala aims to promote port-led development in the country. Programme launched on 25thMarch 2015.

Need of Sagarmala: 

  • Approx 95% of India’s merchandised trade (by volume) passes thru sea ports.
  • TAT( turnaround time) in India’s port is 4 days ( in 2014-15) while world average is 1-2 days.
  • Last mile connectivity to the port is major constraint in the movement of cargo to/from hinterland.
  • 87% of Indian freight use rail or road for goods transportation. Due to constrains in the railway and road highway, this cargo experience significant idle time.  
  • Water borne transport is much safer, cheaper, easier and cleaner.
  • Significant saving can be achieved by movement of industrial commodities like coal, iron ores, cement, steel to coastal and inland waterways.
  • Transportation cost (Rs/Ton- kM): Road :2-3, Rail: 1.2-1.5, Waterways :0.2-0.3, Pipeline : 0.1- 0.15
  • In India 90% of the coal move thru railways which leads to higher logistics cost.
  • China has lower logistics cost due to lower lead distance and location of industries at coastal region makes logistics transfer by port-led facility.
  • Programme for port -led development will leads to minimize the logistics cost by utilization of potential of long coastline of India.

OBJECTIVE:

  • Reduce logistics cost for EXIM and domestic trade with minimizing infrastructure investment.
  • Port modernization and new port development
  • Port connectivityenhancement thru connecting port to hinterland, multi model logistics solution including domestic waterways.
  • Port linked industrialization– to reduce cost and time by development of industry near to the port.
  • Coastal community developmentby Costal tourism, Fisheries, skill development etc.
  • Cost saving approx 40,000 crores per annum by Sagarmala for EXIM and domestic trade.
  • It will reduce carbon emission from transportation sector by 12 MT/annum.
  • 4 lakhs crores will be invested in the infrastructure development.
  • 40 lakhs new direct jobs and 60 lakhs indirect job generation.
  • Sagarmala Development Company Limited (SDCL) has been set up under the Companies Act, 2013 for implementation.