Container Shipping in India: Mapping the cargo Containers India 2014 Navin Kumar Email: thakur@drewry.co.uk 20 Aug 2014
Presentation outline 2 India s international trade Cargo / hinterland mapping Trade partners Outlook Conclusions
3 INDIA S INTERNATIONAL TRADE
India's international trade 1993-2013 4 CAGR Exports Imports Total Trade 1993-2013 14.6% 16.2% 15.4% 2003-2013 18.9% 20.5% 19.8% 2008-2013 6.4% 4.0% 4.9% India s international trade grew from just $45.5 billion in 1993 to $802.7 billion in 2013. While the country s trade grew at a CAGR of ~15% over last two decades, imports grew faster than the exports. Faster growth in India s imports has adversely affected the country s trade balance India had about $130 billion of trade deficit in 2013. Source: UNCOMTRADE Database, Drewry Maritime Research The present government has announced intentions to minimise trade deficit by promoting domestic production to meet country s own demand, and increase exports.
India's container throughput 5 12 26% 10.4 10 9.7 9.9 19% 9.0 17% 8.0 18% 8 14% 7.3 7.6 10% 6 5.8 8% 7% 5.0 4.4 5% 4 3.6 3% 2-5% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Throughput (million teu) Annual growth-right Source: Drewry Maritime Research 30% 25% 20% 15% 10% 5% 0% -5% -10% One of the salient feature of Indian container market is that it is primarily O- D traffic driven, transshipment contributing only marginally to the total throughput. Therefore, it is a very stable market growing at an exceptional pace. Container traffic in India has achieved a CAGR of around 13% over the last 10 years, while annual average growth rate over the last five years has hovered around 5%. In 2002, major ports in India accounted for almost 99% of the container traffic. However, over the last few years the container traffic at non-major ports in India has increased considerably, primarily due to the growth registered by Mundra and Pipavav.
6 CARGO / HINTERLAND MAPPING
Product category wise India s trade 2013 Others 51% Others 41% Export Imports RMG/Textiles 11% Reefer food products 8% Electrical & electronic goods 17% Chemicals 11% Fabric/Yarn 10% Steel Products 9% Machinary/ spares 16% RMG/Textile sector has traditionally dominated the exports. Chemicals, especially cyclic hydrocarbons, are the second most exported containerized cargo from India. Steel products and Reefer food products are other major products in India s export basket. Rising income levels and invention of end user gadgets have led to higher imports of electrical and electronics good. Advanced mechanisation and industrialization in India has resulted in higher imports of machinery and spares. 7 Food Products 6% Steel Products 8% Chemicals 12% Source: UNCOMTRADE Database, classified and compiled by Drewry Maritime Research
Major centres of cargo origin Exports from India Export 8 Others 45% Tamil Nadu 16% Maharashtra 14% Gujarat 12% NCR 13% Tamil Nadu is the single largest containerised cargo producing state in India with a market share of 16%. Major exports include Automobile parts, RMG/textile and electronics. Delhi NCR is the only non-coastal state to feature among top 4 cargo producing centres. Source: Drewry Maritime Research
Major centres of cargo destinationn Imports in India 9 Import Others 35% Tamil Nadu 20% Maharashtra 18% Gujarat 12% NCR 15% Tamil Nadu is also the single largest containerised cargo importing state in India with a market share of 20%. Major imports include Electronics, metal scrap and automobile spares. Top 4 importing centres account for ~65% of India s total containerised cargo import. Source: Drewry Maritime Research
10 TRADE PARTNERS
Country wise trade direction of India s container trade (in $ billion) 11 Exports-2013 45.9 Imports-2013 28.4 11.5 9.9 7.6 7.4 5.5 4.8 4.5 4.1 4.0 12.2 10.7 10.2 8.7 7.3 6.7 5.2 4.4 3.7 Changing ranks of India s export partners Country 1993 2003 2013 USA 1 1 1 China 17 5 2 UAE 4 2 3 Germany 2 4 4 UK 3 3 5 Changing ranks of India s import partners Country 1993 2003 2013 China 10 2 1 USA 1 1 2 Germany 2 3 3 Korea, Rep. 5 4 4 Japan 3 5 5 Source: UNCOMTRADE Database, classified and compiled by Drewry Maritime Research
Changing share of top trade partners of India 12 Major export destinations Major import sources Source: UNCOMTRADE Database, classified and compiled by Drewry Maritime Research
13 OUTLOOK
Delhi-Mumbai Industrial Corridor (DMIC) 14 Components being developed along DMIC Manesar-Bawal investment region Ahmedabad-Dholera investment region Surat-Navsari Industrial Area alsad-umbergaon Industrial Area Source: DMIC Development Corporation Dadri-Noida-Ghaziabad investment region Khushkhera-Bhiwadi-Neemrana investment region Pithampur-Dhar-Mhow investment region Shendra-Bidkin industrial park Dighi Port industrial area Sinnar-Nashik Industrial Park LEGEND DMIC Investment Region Other Key Investment Zones Seaports Identification and development of Greenfield ports. Up-gradation of existing ports. Dedicated Jetties for cargo movement. Rail Construction/ Augmentation of new rail links/feeder lines to DFC. Developing additional DFC spurs and regional rail links. Roads Construction / Augmentation of major arterials and expressways. Developing additional feeder roads. Developing regional connectivity to DFC Rail heads. Industrial Setting up self-sustainable manufacturing/industrial regions. Promote development of processing activities (SEZs/ Industrial Parks/ Port Based Industries, Integrated Food/ Agro Parks). Logistics Setting up free trade warehousing zone, container freight stations, cargo hubs, truck terminals, etc.
Dedicated Freight Corridor (DFC) 15 Western Dedicated Freight Corridor Alignment Post commissioning, it would facilitate higher number of trains running on a particular corridor. For example, the number of trains running on Ahmedabad-Marwar corridor could increase from 15 trains each way to 72 trains per way; and the trains running on JNP- Vadodara corridor would increase from 9 to 49. Eastern and Western corridors will be constructed simultaneously. It is envisaged that the corridors will be fully operational over their entire length by 2018 19. Western DFC Project Timelines Section Year Phase 1 Revari Vadodara (920 Km) 2011 2017 Phase 2 Vadodara JNPT (430 Km) 2012 2018 Phase 3 Rewari Dadri (140 Km) 2013 2018 Source: Dedicated Freight Corridor Corporation of India (DFCCIL) Source: DFCCIL
16 CONCLUSIONS
Conclusions 17 Policy initiatives by the new government aimed at providing impetus to manufacturing, will create more cargo centres. Containerization penetration to be increased by producing more processed goods and light cargo. Containerization of containerisable general bulk cargo to be promoted, innovative ideas needed to tap the market potential. Efficient transportation network needs to be developed, spread uniformly, to connect India s coastline both East and West. Liner Shipping Connectivity Index Source: UNCTAD Stats, 2014
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