Port-led development is the main focus of Sagarmala Programme and is about developing ports in a strategic fashion to spur economic growth by lowering logistics costs and promoting industrial development. Essentially, the coastline and waterways in India provide advantages to attract industries and increase the efficiency of trade by taking advantage of geographic locations.
Key highlights:
- Finding ways to reduce logistics costs: By placing industry close to ports, industries can take advantage of low-cost transportation of goods and avoid high logisitics costs that come with greater distances.
- Developing industrial clusters: Creating designated industrial zones like Coastal Economic Zone (CEZ)/ Coastal Economic Units (CEUs) / Port-Linked Industrial & Maritime Clusters help to pull different and diverse industries together as CEZs are industry agnostic.
- Reducing time in the trade process: When ports operate efficiently goods of both an export / domestic nature can move faster and with less overall cost.
- Development of coastal communities: Sagarmala also looks to develop coastal communities allowing them opportunities for growth with skill development and economic opportunities.
- Waterway development: Using inland waterway transportation can enhance connectivity and start bypassing traffic in logistics and since it is infrastructure will inherently reduce logistics costs.
- Smart industrial port cities: The development of smart port cities or nice port cities with the aid of technology or infrastructure will improve and enhance the port operations and raise investment.
- Heavy logistics industries: Port-led development allows for support of industries that have a heavy reliance on logistics efficiencies.
Investments should be made in infrastructure: This is all encompassing and includes investments into port facilities, connections to road and rail transport infrastructure, coastal shipping and inland water transport.
Role of The Sagarmala Programme:
- National Perspective Plan:
Sargarmala has developed a National Perspective Plan to drive the holistic development of India’s coastline and maritime sector. - Sagarmala Development Company Limited (SDCL):
The SDCL was established to assist in implementing the Sagarmala Programme. - Financial assistance:
Ministry of Ports, Shipping and Waterways provides financial assistance to state and UT governments for several port based projects. - Types of projects:
Projects under Sagarmala are grouped into 5 pillars: port modernization, port connectivity, port led industrialization, coastal community development, and coastal shipping & inland water transport.
