Module_2

MODULE 2
MARITIME BUSINESS – AN EMERGING INDUSTRY

2.1 INTRODUCTION

Post the era of globalization and liberalization, the reach of consumers has expanded to global
markets from local markets. Ordering a product from anywhere across the world is now
considered a superpower for any consumer. To keep pace with swift worldwide demand and
supply to goods and services, a dire need for an efficient knowledgeable group of facilitators
who can provide effective solutions to the inevitable nightmare of every manufacturer for
fundamental economics of a business such as delivery to the consumer by providing the
backbone to the overseas logistics, connecting the goods and services with the consumer in the
most convenient and reasonable manner.

Maritime studies is perceived as an inter-disciplinary study that embraces liberal arts as the
foundation to explore the constantly and spontaneously evolving connections with the
revolutionary world’s waterways. In addition to due recognition of the economical linkages of
human activities through waterways, it also embraces the cultural side of the human-water
relationship. While the former sphere prepares cadets for jobs in the merchant marine, the
expansion of the latter sphere hones a variety of facilitators in the civilian Maritime industrial
and service sectors.

Since the wake of the night of Independence, India has tremendously evolved in the labyrinths of
modernization with abundance of geographical resources that boosts the Maritime industry to
expand its reach on a vast coastline of 7,500 km and a strategic location most major shipping
highway. For years Indian Maritime routes remained allocated solely for trade which enhanced
its confidence to handle a modern shipbuilding and shipping sector which gives them all the
stocked-up pre-requisites for overall industrial growth in the Maritime sector. A number of
recent impressive government initiatives such as the Sagarmala project, ports modernization and
Inland Waterways & Coastal Shipping development is gradually contributing to a higher GDP
and consistent influx of trade volumes. The increasing public-private partnership (PPP) in

response to these initiatives adds to the vibrancy of the Maritime sector and signals to resurged
interest of these PPPs in its potential.

However, the development of a robust and sustainable Maritime sector will largely depend on
optimum utilization of various growth opportunities by the different stakeholders to transform
the sector into an engine of growth for India. Therefore, while 2016 was viewed as the year for
enabling the Maritime sector’s transformation, it seems India is on the cusp of major Maritime
revolution which will play out over the next couple of years and will be a promising industry for
the development of India and the students aspiring to pursue it.1

2.2 IMPORTANCE OF MARITIME BUSINESS

Waterways are as crucially beneficial as highways and land-ways. The current Maritime industry
business thrives to create a coherent intermodal system that is vital to the success of a port as it
will support the seamless movement of cargo across all modes - ship, rail and truck with
minimum workforce intervention.

The delivery of goods via ship is constructed to be an exceptionally responsible task due to
inflated amount of manpower involved to accomplish this task and it’s astounding to see they
range from the dockhands who load and unload the cargo ships to the captains who sail them to
the logistics managers who arrange the entire transport operation at the starting point. . Many
automobile manufacturers, for example, depend upon maritime logistics to get their cars and
trucks to a foreign consumer base. These vehicles must be transported to the shipping dock,
loaded onto the cargo vessels, transported across the sea, unloaded at the receiving shipping dock
and taken to the vehicle dealerships.

As evident from above-mentioned example, Maritime industry business is substantially reliant on
the logistics and transportation industry which warrants stakeholders to be fully educated with
maritime transport, laws and regulations. The sector vouches for a lucrative career and
development on a large scale. Apart from the fishing and merchant navy activities, the Maritime
business also facilitates a wider reach to open business relations with other States. It also brings a


1 Indian maritime sector- on the cusp of revolution, www.forbesindia.com accessed on 13 Jan 2019.

chance to various employment opportunities which are beneficial for the Maritime sector to
flourish.

To promote investment in the Maritime sector, India responsibly initiated a “Make In India”
project for tremendous opportunities significantly in construction and ship repair industry. Its
strategic role in tapping all Indian vessel necessitates inside the country and therefore, the edges
of a vivacious industry cannot be overemphasized. The government’s construction/shipbuilding
policy provides a lift by encouraging Indian shipyards participants to bag foreign orders in a
more aggressive manner and meet the wants of Indian ship-owners. A cheap workforce base,
established industry, technology ability and increased demand in domestic shipbuilding would
contrtibute to India’s global shipbuilding prosperity from one per cent share to five per cent by
20202.

The Indian Navy too is giving a powerful push to the Make In India project to encourage self-
sufficiency within the production of warships. A recent project to manufacture LNG vessels at
the Cochin Shipyard has also been approved.3 Other Indian shipyards have coined stratergic
investment plans and accessed capital markets to emerge as high-stake associates in the Make In
India programme.

2.3 FUTURE PROSPECTS IN THE MARITIME BUSINESS STREAM

Aspirants with exceptional operational and organizational management skills, as well as the
ability to multi-task and problem-solve are well suited for a Maritime business degree. An inate
passion for the ocean and its conservation is pertinent within this career, as environmental
regulations are a key component in today’s Maritime business. Graduates are expected to fill key
leadership roles in the maritime industry.4

Recent graduated aspirants with a Maritime business degree can find suitable profiles in
numerous aspects of maritime business and logistic such as:

Logistics and Distribution Manager


2 Ibid.
3 Ibid.
4 Ibid.

In the case of Maritime management, the goods are transported overseas which presents
additional challenges to due to involvement of numerous personnel at preliminary
shipment level The role of a logistics and distribution manager becomes crucial since he
is at the top of the supply chain, and must also be aware of all legal and environmental
implications involved in transport.

Freight Forwarder

In Maritime business, liaising between the manufacturer and shipper includes ground
transportation to and from the shipping docks and freight transport overseas. The freight
forwarder acts as this liaison alongside ensuring that all shipments are conducted under
appropriate maritime and environmental laws. The maritime industry grew between 6
to 8% up to 2018.

The Maritime industry offers lucrative career prospects with commensurate salaries, job stability
and job flexibility. This sector seeks to foster transformation on a large scale with the
introduction of Maritime clusters inspired from developed States. These clusters induce
innovations, create employment opportunities, attract foreign investors and implement new
ideas.

India has identified two major Maritime clusters in Tamil Nadu & Gujarat similar to the global
success stories in Japan and South Korea. These clusters will aim to focus on developing various
components of the Maritime cluster like shipbuilding & ancillary services, maritime services,
promoting maritime tourism and marine goods and services. Given the inherent logistics such as
manufacturing strength, size of the ports and synergies with other steel ancillaries, both these
identified locations have immense potential to attract business and improve the overall
economics for the cluster participants.5

Conclusively, the Maritime business sector provides a promising career prospects within India
and overseas, a source of elaboration of domestic Maritime industry through Maritime clusters
and establishes a global platform for trade negotiations on waterways for neighbouring States.


5 T E Narasimhan, Maritime clusters & CEZ proposed in Tamil Nade and Gujarat, https://www.business-
standard.com/article/economy-policy/maritime-clusters-cez-proposed-in-tamil-nadu-and-gujarat-
116083101206_1.html.