पत्तन,पोत परिवहन और जलमार्ग मंत्रालय
Ministry of Ports, Shipping and Waterways
Government of India

Coastal Shipping is a fuel efficient, economical and environment friendly mode of transport. Its ability to move large volumes in a shortperiod of time at economical cost can take load off road and rail. Waterways transportation costs only Rs. 0.2-0.3 per ton-km. as against Rs. 1.2-1.5 per ton-km. by rail and Rs. 2.0-3.0 per ton-km by road.   This gives coastal shipping a  distinct comparative advantage  over other modes of transport.

At present, the share of coastal shipping in India is only 120 mmt which is 6% of the total domestic cargo movement. Various policy initiatives have been taken by the Government to promote coastal shipping,  which have led to  coastal  traffic growing at CAGR of 11.2% from 2015-16 to 2018-19.

Policy initiativestaken  to promote coastal shipping :

1. Priority berthing for coastal vessels
2. GST reduction on Bunker fuel
3. Licensing relaxation  for coastal trade.

The movement of coastal cargoes is restricted to Indian flag vessels. However, cabotage in India is not absolute.  Section 406 & 407(1) of Merchant Shipping Act, 1958 require a foreign flag vessel chartered by a citizen of India or a company or a cooperative society for coastal movement of cargoes as well as a foreign flag vessel before engaging directly in coastal trade of India to obtain a license from the Director General of Shipping. Due to unavailability of Indian vessels and with a view to give a boost to coastal shipping, cabotage  has been relaxed under section 406 & 407 (3) of Merchant Shipping Act, 1958 for the coastal movement of :

1. Exim and Empty containers vide General Order No. 1 of 2018 and notification dated 21^st May, 2018.
2. Agriculture, horticulture, fisheries and animal husbandry commodities vide General order No. 2 of 2018 and notification dated 22^nd May, 2018.
3. Fertilizers vide General order No. 3 of 2018 and notification dated 22^nd June,  2018.

(Refer Circulars/orders)

Cabotage under Section 407 (3) has been relaxed for Ro-Ro vessels, hybrid Ro-Ro, Ro-Ro Pure Car carriers, Pure car and truck carriers, LNG vessels and over-dimensional cargo or project cargo carriers vide General Order dated 2^nd September, 2015 for a period of five years commencing from the date of issue of the said order.

Effects of relaxation of cabotage law are being monitored regularly, particularly impact on transshipment.  The overall container traffic at Indian ports has increased from 99 mmt in April-December, 2015-16  to 126 mmt in April-December, 2018-19 at a CAGR of 8%. The growth of containers  transshipped at Indian ports  has increased by CAGR  of 33% in the same  period indicating a significant increase  in the share of Indian ports.

Cruise Shipping

Cruise Shipping is one the most dynamic and fastest growing components of the leisure industry world-wide. A cruise ship is like a moving township studded with state of the art facilities and variety of recreational activities. Cruise tourism leads to significant regional development and development of allied services in the vicinity.  A huge amount of foreign exchange can be earned and employment generated both directly and indirectly in tourism sector. The vision of the Government is to put India on global cruise market both in ocean and river cruises.

The Ministry of Shipping and Ministry of Tourism jointly are promoting cruise tourism in India for its vast economic impact, potential for job creation and earning of foreign exchange. Currently, the ports of Mumbai, Goa, New Mangalore, Cochin and Chennai are primarily the ports of call for cruise ships. An internationally renowned consultant has projected the possibility of a phenomenal growth over the next 25 years, from 0.2 million in 2016 to 4 million in 2041, increase in ship calls from 166 to 955 and passengers per ship from 1200 to 4100, employment potential of 2,50,000 persons from the existing 5000 persons and economic growth potential of Rs.35,500/- crores from Rs.712 crores in 2016.

The following steps have been taken by the Government to promote cruise shipping:

1. A Task Force was constituted in November, 2015 headed jointly by Secretary (Shipping) and Secretary (Tourism) for coordinated efforts to create an enabling eco-system for the development of cruise tourism in India.

2. Foreign flag vessels carrying passengers have been allowed to call at Indian ports for a period of 10 years with effect from 6^th February, 2009 without obtaining a licence from Director General of Shipping.  This facility has been extended for a further period of 5 years i.e. upto 5^th February, 2024.

3. Standardized Operating Procedures (SOPs) for cruise vessels have been revised and operationalised w.e.f. November, 2017 at all Major Ports. Thereafter a Monitoring Committee for implementation of the SOPs was constituted comprising officials from Ministry of Shipping, Major Ports, Ministry of Tourism, CISF.

4. E-visa facility has been extended to five ports namely Mumbai, Goa, New Mangalore, Cochin and Chennai. Immigration counters have been set up at the aforesaid five major ports visited by cruise ships. 
5. To make India attractive to cruise passengers and to promote cruise tourism in the country, Ministry of Home Affairs has at the request of Ministry of Shipping, exempted cruise tourists arriving with e-visa  from the requirement of biometric enrolment for a period of three years i.e. till 31.12.2020 vide their order dt 20^th December, 2017.  This will facilitate in expeditious immigration clearance of cruise passengers with e-visa   enabling them to spend more time on shore.

(vi)The port charges for cruise vessels have been reduced from 3^rd November, 2017 for 3 years and all major ports charge a uniform single rate of $0.35 per GRT for first 12 hours of stay. No other charge like berth hire, port dues, pilotage, passenger fee, priority/ousting/shifting charges for berthing a cruise vesselis levied.

7. Walk-in berthing/preferential berthing to homeport cruise without any extra charge.
8. To address manpower, coordination and logistics issues for handling cruise vessels at ports, Port Level Committees with chairman of the respective Major Port Trust as Chairman, Secretary Tourism of the concerned state as Vice-Chairman and Regional Director of the respective region of Ministry of Tourism as Convener have been constituted.

4.    Infrastructure at ports for cruise ships

Cruise vessels visit five major ports in India namely Mumbai, Mormugao, New Mangalore, Cochin and Chennai.  The status of construction of terminals at these ports is given below

1. A Cruise Terminal is operational in Mumbai Port from 2006, which is being upgraded to match international standards at a cost of Rs.197 crores approximately and is likely to be operational by April, 2020.

2. Mormugao Port has constructed state of the art; three storied new cruise terminal building having the facility for Custom, immigration, Duty free shop for passengers and it was inaugurated on 22.12.2016.

3. NMPT converted a part of its transit shed (shed number 2) inside wharf area into a cruise passenger terminal at a cost of about Rs. 2.45 crores, which has been  operational since 11.04.2008. The cruise terminal is functioning with facilities for customs, immigration, port, health, banking service, facilitation centres, duty free shop and boutique. Foreseeing the growth in cruise traffic, the Port has constructed a modern cruise passenger lounge near the berth with an area of 2150 sq. mtrs.  with   facilities  like money exchange, locker room, medical officer room, duty free shops, cafeteria, conference hall etc.

4.  Construction of a new cruise terminal with modern facilities is under progress at Ernakulam wharf of Cochin port and is expected to be in operational  by February, 2020. Upgradation work for the development of existing infrastructure of the  Facilitation  Centre at Cochin Port Cruise is in process and expected to be operational by December, 2020.

5. Chennai Port Trust has developed Cruise Tourism Facilitation Centre with State of Art technology on par with facilities at International Airports and commenced functioning on 12.10.2018.

6. 65 counters have been provided in the immigration halls at the five ports to facilitate e-visa (15 each for Mumbai, Cochin and Goa and 10 each for Mangalore and Chennai).

5. The following table shows the number of passengers handled from 2013-14 to 2018-19: