ASEAN India Ports and Shipping Networks
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1 ASEAN India Ports and Shipping Networks National Seminar on ASEAN-India Maritime Cooperation Organised by ASEAN-India Centre Research Information Systems for Developing Countries Subrata K Behera (behera@drewry.co.uk) Drewry Maritime Research 31 Jan 2014
2 Outline 2 Changing trade dynamics with the East Shipping network between India and ASEAN Container port capacity in ASEAN and India Dependency on Strait of Malacca: Need for alternate route India-Myanmar cooperation in transportation Potential areas of cooperation
3 Changing trade dynamics with the East 3 India s trade with East is growing - CAGR of 22% during last decade ( ) Since 2003 share of imports rising % 38% 36% 34% 32% 30% 28% 26% 24% Despite rising trade with east, ports on the east coast not the first choice as gateway ports 50 0 Trade with 'East' (US$ bil) Share of Exports to 'East' (%)-R Share of Imports from 'East' (%)-R Note: POL and other major bulk trade have been excluded from the calculation. Source: UNCOMTRADE Database, compiled by Drewry Maritime Research 22% 20%
4 Shipping network between India and ASEAN 4 14* mainline services 5.5 mteu* (approx.) annual capacity Mostly connected to west coast ports of India * Non-dedicated mainline services
5 Container port capacity in ASEAN and India (mteu) Country Ports Capacity (mteu) Throughput (mteu) Utilisation Brunei % Myanmar % Cambodia % Indonesia % Malaysia % Philippines % Singapore % Thailand % Vietnam % ASEAN % India % ASEAN India Source: Drewry Maritime Research, 2013 Source: Drewry Maritime Research, 2013
6 Dependency on Strait of Malacca: Need for alternate route 6 Cargo destined for different locations in South East Asia typically moves through the transhipment hub located in Singapore, Tanjung Pelepas, Port Klang. High dependency on the Strait of Malacca. Continued safe passage through the Strait of Malacca is in India s interest. Safe passage through this channel is not in direct control of India. Therefore, finding an alternate arrangement is required to uphold India s economic as well as strategic interest. Alternate access to South China Sea can only be obtained by gaining access through a mixture of ocean and land route. Myanmar can be the crucial link in this process. Cargo movement through the Bay of Bengal can use any major port in Myanmar as the landfall port for India for moving into the region and further to South China Sea through other countries like Thailand, Cambodia and Vietnam Myanmar has the potential to become a convenient transit route for India s growing trade relations with Southeast Asia.
7 7 India-Myanmar cooperation in transportation Being a landlocked region, India s North East has no easy access to ocean ports. All cargo originated from and destined to travels through the chicken neck corridor (Siliguri); Bangladesh provides no transit access for cargo from/to India s North East due to political apprehensions; As an alternative, India plans to move this region s cargo though Myanmar. Started the ambitious Kaladan Multi-modal Transit Transport Project which connects North East with the ports in Myanmar.
8 8 Potential area of cooperation Initiating mainline calls in the Bay of Bengal region will go long way in instilling confidence in the shippers and traders in East Coast India, Bangladesh and Myanmar besides acting as a stepping stone in the area of mutual cooperation in the maritime transportation sector. State owned shipping lines like the Shipping Corporation of India (SCI) could make the first move in this regard. The cooperation in development of landside infrastructure is a crucial part of any ocean transportation linkage. Developing port infrastructure in coastline of Myanmar is in India s interest as Myanmar has all the potential to provide an alternate gateway to the South China Sea. The cooperation with Myanmar could be in two functional area. One being financial and the other being technical. The other form of cooperation is to make India s presence in the region and build the port infrastructure. This may include capital dredging, Berth creation, crane installation and other such infrastructural development.
9 Thank You! 9 Drewry was founded in 1970 as a provider of independent information and advice to the global maritime industry. Since then we have worked with over 4,000 clients in more than 100 countries. We are privately owned with research and advisory teams in London, Delhi, Singapore and Shanghai. London Drewry Christopher Street London EC2A 2BS,United Kingdom T: +44 (0) E: info@drewry.co.uk Singapore Drewry 15 Hoe Chiang Road, #13-02 Tower Fifteen Singapore T: E: singapore@drewry.co.uk Delhi Drewry 209 Vipul Square, Sushant Lok-1 Gurgaon , India Telephone: /32 E: india@drewry.co.uk Shanghai Drewry 555, 5th floor Standard Chartered Tower, 201 Shi Ji Avenue, Pudong District, Shanghai, China T: +86 (0)
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