India has had a historical advantage in ship-owning and modern shipbuilding but there has been a shift in the narrative post-1980s, with China outpacing India in maritime development. Therefore, it is important to explore the maritime trajectories of China and India, with a focus on the Yangtze River’s role in China’s maritime prowess and India’s challenges and opportunities in the shipping industry, reports The Hindu.
The Significance of the Yangtze River in China’s Maritime Success Story
The Yangtze River has been China’s heartbeat through its long history. Tradition, legend, myth, culture, as well as commerce and industry, are integral to the Yangtze tradition. In present-day China, the Yangtze River serves as a vital lifeline, seamlessly blending modernity with its ancient essence.
The Three Gorges project has further enhanced its importance, as one approaches the Yangtze from the sea, it is easy to hear the melodic tunes of Chinese opera or, more contemporarily, the sounds associated with Kung Fu Panda.
At the same time, it is impossible to ignore the presence of large merchant ships, often moving in groups of two or three, navigating in and out of the river.
Unique Characteristics of Yangtze Compared to Global Counterparts
The modern engineering and shipping marvels of Suez or even the Panama Canal see a convoy of ships, one behind the other.
The Yangtze often sees multiple convoys steaming in parallel and, in between, smaller barges crisscross the river, much like the autorickshaws on Indian roads.
It is an incredible sight, a story of expert seamanship, logistical planning, and piloting skills.
The ships are either bringing in raw materials from across the world including from far away Chinese-owned mines from Peru and Africa or leaving with finished products all over the world.
Some vessels are new, built-in shipyards that stand cheek-by-jowl at every bend in the river. Many are repaired in those same yards and dry docks.
China Surpassing India by a Considerable Margin
The Yangtze River serves as a classic example of the often-repeated narrative highlighting the difference in progress between China and India. This narrative is based on statistics demonstrating that India and China were in similar situations until the late 1980s.
However, it is more of a China story about how China has made significant leaps forward since then, surpassing India by a considerable margin. A Comparative Analysis Between India and China in the Maritime Industry
Historical Background
India had a head start in the maritime sector until the late 1980s and the country had a tradition of modern ship-owning. This was exemplified by a former Indian Navy officer who commissioned giant oil tankers, marking a unique contribution to the global maritime landscape.
On the other hand, China was a late entrant to the global merchant shipping scene. However, by the end of 2020, it had emerged as the builder of half of all ships worldwide, a remarkable feat driven by a dedicated government plan to boost shipbuilding and ownership.
Shipbuilding and Ownership
While India had private players entering the shipping industry, the focus was primarily on expanding the seafarer population.
However, ship owning, chartering, financing, and building remained largely out of reach for Indian entities.
The state-owned Shipping Corporation of India faced challenges, impacting the order books of Indian shipyards.
China, driven by a government-led plan, became a global leader in shipbuilding, and by 2020, it was producing half of the world’s ships.
Chinese shipowners played a pivotal role, often building most of their ships at state-owned government yards.
Labour and Seafarer Contribution
India’s main source of growth and foreign exchange earnings in the maritime sector has been the supply of labor.
Indian seafarers, known for their proficiency in English, became a routine presence in global shipping.
The UPA government decentralized maritime training, leading to institutions across the country producing seafarers of various grades and competencies.
While specific data on Chinese seafarer contribution is not provided, India’s seafarers and their management companies were estimated to bring in around $6 billion in foreign exchange annually, showcasing a significant contribution to the country’s economy.
Government Role and Industry Strategy
Successive Indian governments have primarily focused on expanding the seafarer population.
However, ship-owning, chartering, and building have not seen significant progress, with state-owned entities facing challenges.
On the other hand, China’s success in shipbuilding is due to a dedicated government plan.
The state played a crucial role in supporting shipbuilding activities, and Chinese shipowners largely built their ships at state-owned yards.
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Source: The Hindu
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