The launch of the Gujarat Maritime Cluster in the Gujarat International Finance Tec-City (GIFT City) at Gandhinagar is making headlines for providing an efficient logistics solution for ports and seaways. This promising venture, spearheaded by the Gujarat Maritime Board (GMB), through its subsidiary Gujarat Ports Infrastructure and Development Company Ltd (GPIDCL), intends to create a dedicated ecosystem that comprises Ports, Maritime Shipping and Logistics services providers.
Understanding the Maritime Cluster
Conceptualized as a unique ecosystem, the Maritime Cluster solely focuses on maritime, shipping industry players and service providers. In proximity to Government regulatory agencies, this cluster will claim a spot within the Gujarat International Finance Tec-City (GIFT City) of Gandhinagar – India’s first-ever International Financial Services Centre. The idea was first introduced in 2007 and won the state government’s in-principle approval in 2015.
Attracting Maritime Investments
One of the pivotal benefits of this project is its potential to bring back businesses that previously migrated over time to foreign locations due to the lack of the appropriate ecosystem at home. Large corporations such as the Aditya Birla Group and Tata Group presently rely on clusters in Dubai and Singapore to fulfill their maritime needs. This initiative is expected to draw them back to domestic soil.
Realizing Economies of Scale
Gujarat is home to numerous ports and is responsible for handling around 40% of the country’s cargo. However, it hasn’t aimed at the complete value chain previously, which has led investors to seek opportunities abroad. The maritime cluster aims to tap into this unrealized potential.
Introducing Dispute Resolution Centre
A key feature of the project is the establishment of an Alternate Dispute Resolution (ADR) Centre under the supervision of the Gujarat Maritime University. This special facility, which is currently non-existent in India, will handle cases related to bunker disputes, ship sales, shipbuilding and repairs, and commodities. The ADR Centre will provide a cost-effective and efficient solution to Indian players who are reluctant to access expensive international alternate dispute resolution hubs involving high costs, time, and travel.
Housing Office of the Director General of Shipping
The maritime cluster is also anticipated to house the office of the Director General of Shipping, further bolstering its significance in the maritime industry.
The Way Forward
Despite being a novel concept in India, maritime clusters have been instrumental in fueling some of the world’s most competitive ports such as Rotterdam, Singapore, Hong Kong, Oslo, Shanghai, and London. With the introduction of such innovative concepts, India has the opportunity to ensure a significant presence in global supply chains. The Gujarat Maritime Cluster is a beacon signaling a promising future for the maritime sector in India.
