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Explained: What is the unique maritime cluster coming up at GIFT City in Gujarat?

12th November, 2020 Economy

Context: The Gujarat Maritime Board (GMB), a nodal agency of the Gujarat government, has been trying to develop such a cluster at GIFT City in the state capital Gandhinagar.

What is the Maritime Cluster project?

  • The concept of maritime cluster is new to India, but these clusters have been driving some of the most competitive ports of the world like Rotterdam, Singapore, Hong Kong, Oslo, Shanghai, and London.
  • It is an agglomeration of firms, institutions, and businesses in the maritime sector that are geographically located close to each other.
  • The Gujarat Maritime Board (GMB), a nodal agency of the Gujarat government, has been trying to develop such a cluster at GIFT City in the state capital Gandhinagar through its subsidiary Gujarat Ports Infrastructure and Development Company Ltd (GPIDCL).
  • This cluster will initially consist of Gujarat-based shipping lines, freight forwarders, shipping agents, bunker suppliers, stevedores, and ship brokers with chartering requirements.
  • In the second stage, the cluster would attempt to bring Indian ship owners, ship operators, Indian charterers and technical consultants scattered in cities like Mumbai, Chennai, and Delhi to Gujarat.
  • Thereafter it would target to attract global players in the maritime sphere.

What is the need for a maritime cluster?

  • This project will try to bring back businesses that have migrated over the years to foreign locations due to the absence of the right ecosystem in the country.
  • Landlocked countries like Switzerland and Luxembourg have developed a number of maritime services that are not currently available in India.
  • Gujarat has a lot of ports and handles 40 per cent of the country’s cargo, but we have not targeted the entire value-chain.

Apart from attracting maritime businesses, what else will the maritime cluster do?

  • An Alternate Dispute Resolution (ADR) Centre will be set up under the aegis of the Gujarat Maritime University, which will come up at the maritime cluster.
  • A centre such as this does not currently exist in India.
  • This sector is international in character and hence is a breeding ground for arbitration and mediation in cases revolving around bunker disputes, ship sales, shipbuilding and repairs, commodities, etc.,”
  • This centre will function like the Emirates Maritime Arbitration Centre (EMAC) at the Dubai Maritime Cluster, China Maritime Arbitration Commission in the Greater Bay Area in China, and the Singapore Centre for Maritime Arbitration in the Singapore Maritime Cluster, among others.
  • This centre in Gujarat will provide an option to Indian players seeking to avoid availing the services of international alternate dispute resolution hubs, which entail huge costs, time, and travel.

How old is this project and what is the current status?

  • While the project was conceptualised back in 2007, it received in-principle approval from the state government only in 2015.
  • A high-level committee was also formed to pilot this project.

https://indianexpress.com/article/explained/explained-what-is-the-unique-maritime-cluster-coming-up-at-gift-city-in-gujarat-7048302/