1. Asia

1.1 China

Fishing fleet and fishing technology in East China Sea

Category of fishing vessels		No.
Powered fishing vessels		114 010
Steel fishing vessels
	>600 HP	502
	<600 HP	9 985
	Sub-total	10 487
Wooden fishing vessels
	>15 HP	38 401
	<15 HP	65 122
	Sub-total	103 523
Unpowered fishing vessels		200 000
TOTAL		314 010

Type of fishing technology used	East China Sea
	% of volume of total catch
Trawling	54
Set net fishing	25
Gillnetting	7
Purse seining	6
Longline and hand
Line fishing	2
Others	6

Fishing areas	China
	% of volume of total
	marine catch
East China Sea	85
Yellow and Bohai Sea	8
South China Sea	1
Others (deep sea and distant waters)	5

The East China Sea is China's most important fishing area, especially the coastal waters of Jiangsu, Zhejiang, Fujian Province and of the City of Shangaï (Lusi, Zhoushan fishing grounds). Most fishing grounds are between 100 and 200 meters deep.

Fisheries legislation and regulations

The following management measures and regulations are in place:

- An increasing number of fishing vessels are controlled through licence systems;

- fishing areas are delineated; fishing vessels operating in these areas are controlled;

- closed areas and closed seasons (01/07 to 31/08) have been established;

- MSY and MEY have been established for important species, i.e. yellow croaker, little yellow croaker, long hairtail, triggerfish, etc.

Type of vessel	Length (m)	GRT	H.P	On board storage facilities	Fishing gear	Owner-ship
Purse seiner	42.4	80	600	Ice + Fishhold 137 m3	1 purse seine	State-Owned Company
Purse seiner	27.8	37,6	279	12,4 m3	1 purse seine	State- Owned Company
Bottom-pair trawler	38.3	235	367	156 m3	3 trawl nets	State-owned Company
Bottom-pair trawler	25-28	80-95	183	24 m3	Bottom pair trawls	Share-owned by crew
Single trawler	15-16	65	150	24 m3	Single trawl	Share-owned by crew
Jigger	44.8	270/304	551/735	Freezing 190 m3 + 10t/day	12 jigging machines	State-owned company
Set netter	29.5	67	147	Ice + Fishhold 26 m3	Set net 100 pieces	Share-owned
Stow netter	30.5	107	198	37 tonnes	Stow net	Share-owned
Stow netter	27	115	183	90 tonnes	Stow net	Share-owned

Type of vessel	Fishing days	Average duration of fishing trips	Fishing seasons (off-seasons)
Purse seiner	246	30 days / trip	Jan-Feb and Jul-Dec (Mar-June)
Bottom pair-trawler	300	15/20 days / trip	Jan-Jun and Sep-Dec (Jul-Aug)
Bottom pair-trawler	305	15 days / trip	"
Single trawler			All year long
Jigger	220	220 days	Jun-Dec (Jan-May)
Set netter	300	1/12 days / trip	Jan-Jun and Sep-Dec (Jul-Aug)
Set netter	202	1/9 days / trip	Jan-Jun and Sep-Dec (Jul-Aug)
Stow netter	300	11/12 days / trip	Jan-Jun and Sep-Dec (Jul-Aug)
Stow netter	160	7/9 days / trip	Jan-Jun and Sep-Dec (Jul-Aug)

Financial and economic characteristics of individual fishing units

Type of vessel		Purse seiner	Bottom-pair trawler	Bottom-pair trawler	Single trawler
Total Earnings		1 146 970	371 340	182 130	54 480
Running costs
	Fuel	93 210	98 880	37 050	11 760
	Lubricant
	Harbour dues	7 390		140	50
	Ice / salt			5 220
Total running costs		100 600	98 880	42 410	11 810
Labour charges
	Labour share, wages	117 030	46 140	99 030	27 200(1)
Total labour charges		117 030	46 140	99 030	27 200
Vessel costs
	Gear expenses	55 410	38 150	2 490	1 040
	Repairs and maintenance	119 200	39 440	2 420	1 160
	Vessel insurance			4 830	840
	General expenses	20 830	41 260	11 450	6 260
Total vessel costs		195 440	118 850	21 190	9 300
Total costs / expenses		413 070	263 870	162 630	48 310
Gross cash flow		733 900	107 470	19 500	6 170
	Depreciation (1)	224 000	32 500	18 800	3 500
	Interest (2)	98 600	14 300	8 300	1 500
Net cash flow		411 300	60 670	-7 600	1 170

(1) Estimate
(2) Average amount for repayment on 10 year loan 80 percent of investment. Interest rate eight percent

Type of vessel		Jigger	Set netter	Stow netter
Total Earnings		1 092 780	155 170	100 020
Running costs
	Fuel	240 730	16 570	11 500
	Lubricant
	Harbour dues	3 840	2 410	2 410
	Ice / salt		7 370	7 530
Total running costs		244 570	26 350	21 440
Labour charges
	Labour share, wages	79 330	49 500	53 860
Total labour charges		79 330	49 500	53 860
Vessel costs		Jigger	Set netter	Stow netter
	Gear expenses	60 840	29 030	18 870
	Repairs and maintenance	38 320	4 990	7 420
	General expenses	101 180	7 290	7 050
Total vessel costs		200 340	41 310	33 340
Total costs / expenses		524 240	117 160	108 640
Gross cash flow		568 540	38 010	-8 620
	Depreciation	256 000 (1)	3 300 (1)	7 000 (1)
	Interest	112 600 (2)	1 300 (2)	3 100 (2)
Net cash flow		199 940	33 410	-18 720

(1) Estimate
(2) Average amount for repayment on 10 year loan 80 percent of investment. Interest rate eight percent.

1.2 Taiwan Province of China

Taiwan operates two types of tuna fishing vessels, i.e. longliners and purse seiners. The Taiwan study covers the fleet of Taiwanese purse seiners; 42 vessels operating in Papua New Guinea and in Micronesian waters.

Financial and economic characteristics of individual fishing units (in US$)

Type of vessel	Purse seiner (1000 GRT)
Total Earnings	3 859 880
Running costs
Fuel	562 500
Harbour dues	93 750
Ice / salt	37 500
Food	187 500
Other running costs	168 750
Total running costs	1 050 000
Labour charges
Labour share, wages	506 250
Social insurance	37 500
Total labour charges	543 750
Vessels costs
Gear expenses	187 500
Repairs and maintenance	375 000
Vessel insurance	75 000
General expenses	487 500
Total vessel costs	1 125 000
Total costs / expenses	2 718 750
Gross cash flow	1 141 130
Depreciation	380 000
Interest	182 500
Net cash flow	578 630

1.3 Republic of Korea

Purse seiners at fisheries training center, Republic of Korea

Purse seiners at fisheries training center, Republic of Korea

Purse seiners at fisheries training center, Republic of Korea

Fishing fleet

Type of fishing	Number of vessels		Main Species
	Main	Auxiliary
Offshore stow netting	806	-	Hairtail, corvine
Offshore jigging	827	-	Squid
Large purse seining	48	279	Mackerel, jack mackerel
Anchovy mid-water trawling	110	578	Anchovy
Large bottom/ mid-water trawling	99	-	Squid, hairtail
Large bottom/mid-water pair trawling	384	-	Corvine, croaker
Danish seining	186		Corvine, croaker Flounder, sea eel Alaska pollack
Eastern Sea Bottom trawling	40		Alaska pollack, Shrimps
TOTAL = 3 357	2 500	857

Fishing areas

- Offshore stow netting: Yellow Sea and East China Sea,

- coastal stow netting: near the shore of Yellow Sea,

- offshore jigging: mainly East Sea, partially Yellow Sea in about 400 n mi (nautical miles) from harbour,

- large purse-seining: all along the coast, from coastal waters to 300 n mi from shore, including East China Sea,

- anchovy mid-water trawling: from coastal waters up to 100 n mi from shore,

- large bottom/midwater trawling: around Cheju Island (Southern Sea) and East China Sea. within 200 n mi from shore,

- large bottom/midwater pair trawling: same area as above additional areas in Yellow Sea and East China Sea, fishing distance up to 400 n mi from shore,

- Danish seining: large vessels operate around Cheju Island, middle and south of East China Sea less than 250 n mi from harbour; middle size vessels operate in southern part of Yellow Sea, western part of Southern Sea less than 100 n mi from harbour and coastal part of Eastern Sea,

- Eastern Sea bottom trawling: coastal part of Eastern Sea less than 50 n mi from harbour.

Type of fishing	Number of vessels	Age (in years)
	Total	<5 years	6-10	11-15	16-20	21 and over
Offshore stow netting	806	68	206	209	282	41
Offshore jigging	827	275	209	145	133	65
Large purse seining	327	43	57	40	48	139
Anchovy midwater trawling	688	111	290	88	97	102
Large bottom/midwater single trawling	99	58	7	10		24
Large bottom/midwater pair trawling	384	81	38	42	26	197
Danish seining	186	31	29	23	5	98
Eastern Sea bottom trawling	40	2	7	9		22
Total	3 357	669	843	566	591	688

Plans for future development of fleet

There is little potential for development of new fishing areas, in coastal areas or offshore. Almost all types of fishing gears, equipment and fishing vessels have been operated in the Republic of Korea since the 1970s. Almost all existing resources are fully exploited.

The Korean Ministry of Maritime and Fisheries Affairs, through the Law of Fisheries Industry, controls the fishing effort. Recently, the Ministry has stopped issuing new fishing licences and has also forbidden the replacement of old vessels by larger ones in order to conserve the fishery resources.

Techno-economic and operational characteristics of individual fishing units

Type of vessels	GRT average	KW Average	On board facilities/processing and storage	Fishing gear	Crew	Sharing system
Offshore stow netting	84.3	276		3 sets of nets	9	Minimum wages + share
Offshore jigging	52	248	Freezer storage = 100 m3 +28 t/day	300-900 hooks	13	"
Large purse seining	133	664	255 m3	Seine 900-1000 m X200-300 m	80	Fixed wages + share
Anchovy mid-water trawling	33,6	262		Trawl 700 m	56	Fixed wages
Large bottom/mid-water trawling	135	814	172 m3 + 50 t/day	Trawl HR 34-48 m	15	Fixed wages + share
Large bottom/mid-water pair-trawling	106	448	130 m3 + 22 t/day	Trawl HR 54-114 m	22	"
Large Danish seining	130	284	190 m3	Seine HR 50-104 m	8	Minimum wages + share
W-South Sea Middle Danish seining	100	"	130 m3	"	9	"
Eastern Sea Middle Danish seining	60	"	80 m3	"	10	"
Eastern Sea Trawling	65	321		Trawl HR 27 - 31 m	8	"

Type of vessel	Fishing days	Average duration of fishing trips	Fishing seasons (Off-seasons)
Offshore stow netting	180	240	All year
Offshore jigging	150	180	"
Large purse seining	240	270	"
Anchovy mid-water trawling	180	180	Jul-Mar (Apr-Jun)
Large bottom/mid-water trawling	240	270	All year
Large bottom/mid-water pair-trawling	240	270	"
Large Danish seining	180	210	"
W-Southern Sea middle Danish seining	210	240	"
Eastern Sea middle Danish seining	180	180	"
Eastern Sea trawling	180	180	"

Financial and economic characteristics of individual fishing units

Investment costs (in US$)

Investments	Hull (1)	Engine and propulsion (1)	Deck equipment and others	Fishing gears	Total value
Depreciation rate	4 %	10 %	10 %	20 %
Type of vessel
Offshore stow- netting	151 710	75 850	12 500	55 630	295 690
Offshore jigging	231 410	115 710	18 580	75 670	441 370
Large purse seining	3 143 450	1 571 730	938 350	386 260	6 039 790
Anchovy mid- water trawling	440 830	220 420	177 350	203 650	1 042 250
Large bottom/ mid-water trawl	1 051 500	525 750	39 100	78 540	1 694 890
Large bottom/ mid-water pair trawling	408 540	204 270	40 030	110 510	763 350
Large Danish seining	58 050	29 030	28 680	21 670	137 430
W-Southern Sea middle Danish seining	241 930	120 970	17 750	29 370	410 020
Eastern Sea middle Danish seining	127 780	63 890	19 960	17 020	228 650
Eastern Sea trawling	188 890	94 440	33 040	20 670	337 040

(1) LEI - DLO Breakdown assumption Hull = 2/3 Engine = 1/3

Economic and financial performances of individual fishing vessels (in US$)

Type of vessel		Offshore	Offshore	Eastern Sea
		Stow-netting	Jigging	trawling
Total earnings		412 710	424 920	313 270
Running costs
	Fuel	39 430	50 560	38 010
	Harbour dues	41 280	20 650	23 200
Total running costs		80 710	71 210	61 210
Labour charges
	Labour share, wages	150 050	171 320	103 500
	Other labour charges	29 940	21 440	58 470
Total labour charges		179 990	192 760	161 970
Vessel costs
	Gear expenses	46 630	17 690	13 080
	Repairs and maintenance	32 070	23 410	26 360
	General expenses	14 130	16 800	8 070
Total vessel costs		92 830	57 900	47 510
Total costs / expenses		353 530	321 870	270 690
Gross cash flow		59 180	103 050	42 580
	Depreciation	26 030	37 820	24 440
	Interest (1)	10 800	16 100	12 300
Net cash flow		22 350	49 130	5 840

(1) Average amount for repayment on seven year loan 80 percent of investment.
Interest rate eight percent.

Type of vessel		Large Purse seining	Anchovy midwater trawler	Large bottom single trawler	Large bottom pair-trawler
Total Earnings		5 119 510	1 466 710	1 890 980	1 472 110
Running costs
	Fuel	566 490	161 110	158 320	213 300
	Harbour dues	790 600	139 080	173 660	139 830
Total running costs		1 357 090	300 190	331 980	353 130
Labour charges
	Labour share, wages	1 628 780	512 160	364 300	378 040
	Other labour charges	486 030	94 260	114 240	134 180
Total labour charges		2 114 810	606 420	478 540	512 220
Type of vessel		Large purse seining	Anchovy midwater trawler	Large bottom single trawler	Large bottom pair trawler
Vessel costs
	Gear expenses	234 150	103 940	70 900	78 440
	Repairs and maintenance	400 940	101 480	151 000	222 790
	General expenses	32 679	68 330	57 550	69 230
Total vessel costs		961 880	273 750	279 450	370 460
Total costs / expenses		4 433 780	1 180 360	1 089 970	1 235 810
Gross cash flow		685 730	286 350	801 010	236 300
	Depreciation	454 000	98 140	114 250	62 870
	Interest (1)	220 900	38 100	62 000	27 900
Net cash flow		10 830	150 110	624 760	145 530

(1) Average amount for repayment on seven year loan 80 percent of investment.
Interest rate eight percent.

Type of vessel		Large Danish seining	W-S Sea middle Dan. seining	E-Sea middle Dan. seining
Total Earnings		411 950	424 100	313 270
Running costs
	Fuel	22 550	53 720	20 920
	Harbour dues	32 260	34 770	21 030
Total running costs		54 810	88 490	41 950
Labour charges
	Labour share, wages	119 290	125 660	149 500
	Other labour charges	29 540	27 250	45 210
Total labour charges		148 830	152 910	194 710
Vessel costs
	Gear expenses	13 540	28 450	8 540
	Repairs and maintenance	49 280	22 340	21 260
	General expenses	15 940	23 930	8 430
Total vessel costs		78 760	74 720	38 230
Total costs / expenses		282 400	316 120	274 890
Gross cash flow		129 550	107 980	38 380
	Depreciation	12 430	29 420	16 900
	Interest (1)	5 000	15 000	8 400
Net cash flow		112 120	63 560	13 080

(1) Average amount for repayment on seven year loan 80 percent of investment.
Interest rate eight percent.

Financial services available to fisheries sector

The Central Federation of Fisheries Cooperatives is a specific credit institution available for the Fisheries Sector. Deposit and loan conditions differ little from those of commercial banks, but it provides some interest rate discounts to its members. In case of natural disasters, loans of up to the equivalent of US$ 12 500 are provided interest free. In addition to loans for fishing craft and gear, loans in the range US$ 125 000 to 250 000 are available for construction of landing sites and fishing ports. Repayment periods range from: 5 to seven years after a two or three year grace period. The average rate of interest is 5 to 8 percent.

All fuel consumed by fishing vessels is tax-free.

1.4 India

Fishing fleet, small/medium-scale coastal fishing

State	Traditional craft		Mechanized boats	Total
	Unpowered	Powered
Gujarat	8 825	3 730	5 294	17 849
Maharashtra	8 927	244	7 661	16 832
Karnataka	11 670	190	3 730	15 590
Tamil Nadu	14 763	11 374	3 742	29 879
Andhra Pradesh	28 539	5 152	5 426	39 117
Orissa	48 645	1 688	4 082	54 415
West Bengal	13 488	1 142	1 118	15 748
Lakshadweep	4 091	270	1 880	6 241
Andaman and Nicobar islands	447	298	415	1 160
Pondicherry	840	124	184	1 148
Goa	4 950	355	466	5 771
Others	1 100	900	850	2 850
TOTAL	146 285	25 467	34 848	206 600

Traditional gillnetters, India

Shrimp trawler, India

Traditional Kattumaram (fishing raft), India

Large-scale fishing fleet

The fleet consists of 180 Indian vessels, mostly shrimp trawlers, which are operated off Vishakhapatnam. There are also 30 chartered foreign vessels, i.e. 12 tuna longliners, 13 stern- trawlers and five pair trawlers which operate in the Indian EEZ.

Fishing areas

Most of the fishing activities are concentrated in the area within 40 fathoms depth. At present, there is no offshore fishing in India except for deep sea lobsters and deep sea prawns. Some trawlers, however, are trying to diversify towards tuna and cuttlefish.

Fisheries legislation and regulations

Since 1981, India has managed the exploitation of its marine resources up to 200 n mi from shore. This includes the control of foreign fishing vessels operating in the Indian EEZ (30 ships in 1994).

Large vessels may fish inside the Indian EEZ:

- along the East Coast, beyond 12 n mi from the coast;
- along the West Coast, beyond 24 n mi from the coast.

- along the Upper East Coast, around Sand-Heads;
- along the South West Coast, off Quilon.

In the past, national rules and regulations were not well respected by chartered foreign vessels and traditional fishers urged the Indian Government to reconsider its Policy between 1986 and 1991. The Murari Committee was set up in 1995 and recommended:

- Cancellation of fishing permits to joint ventures, chartered or leased foreign vessels;
- modernization of traditional fishing vessels;
- introduction of more fishing vessels longer than 20 m.

· Upgrading of fishing capabilities of existing mechanized vessels (below 20 m LOA) by providing them with navigational aids (GPS, fish finders, communication equipment, etc.) and increasing their fish hold capacity.

· Introduction of intermediate range of fishing vessels (15-19 m LOA) with capacity to fish in depths of 70-150 m (or even up to 200 m). These vessels would be a combination of trawlers, longliners, purse seiners, etc.

· Diversification of existing trawlers (wherever there is extra fishing pressure) to long liners, purse seiners, squid jigging, etc.

· Continuation of assistance for procurement of patrol boats.

· Motorization of traditional craft with outboard or inboard motors including the gear component, particularly for States with weaker response to the ongoing schemes.

· Introduction of new hull materials such as FRP and Ferrocement for fishing vessels.

· Provision of central excise duty exemption on HSD oil supplied to vessels of below 20 m LOA.

- For improved exploitation of demersal resources: 511 25-35 m trawlers with the following distribution: West Coast: 390, East Coast : 94, Wadge bank and the Gulf of Mannar: 27;

- for improved exploitation of oceanic pelagic resources: 95 to 100 vessels, e.g. 30-35 m tuna longliners. with the following distribution: S-W Coast: 20. lower East Coast, Andaman and Nicobar islands: 75-80.

Type of vessel	Length (m)	KW	On-board facilities / storage	Fishing gear	Crew	Owner-ship	Fishing days
Stern trawler	14.6	108	Ice + insulated Fish hold (10 t)	6 trawls	8	Individual	240
Tuna longliner	36	590	Freezer storage 4T X -55°C 110 m3 X -50°C	Spare hooks and lines (2 000 hooks/days)	17	Company	240
Purse seiner (43 ft) Karnataka	13	108	Ice + insulated fish-hold	1 seine (300 m X 30 m)	16/18	Company	100 (Oct. to Feb).

Sharing systems

Stern trawler 14.6 m: crew of eight seamen / 240 days fishing.

- Basic wages: skipper (1) = US$1 143 deckhands (7) = US$286 (each)
- Share: 30 % of income (total earnings less fuel expenses = US$15 822
- Total share and wages: US$18 965 = 28 % of total earnings

- Basic wages : skipper (1), engineer (1), mate (1), engine driver (1), cooks (2), oil men (2), deckhands (8), topass (1) = US$98 825

- Sea allowance for 240 fishing days = US$4 571

- Share: 40 % of income (total earnings less fixed and variable costs) = US$176 571

- Total share and wages = US$279 967 = 37 % of total earnings

- Share: 24 % of income (total earnings less fuel and lubricant expenses) = US$8 240 = 23 % of total earnings.

Investment costs (in US$)

Investments	Hull	Deck equipment	Engine and propulsion	Fishing gear	Total value
Depreciation rate	4 %	10 %	10 %	20 %
Type of vessel
Stern-trawler 14 m	31 750	6 980	10 760	3 970	53 460
Tuna longliner 36 m	793 650 (1)			47 620	841 270
Purse-seiner (Karnataka) 13 m	27 300	1 910	8 950	9 520	47 680

(1) Includes deck equipment and engine / propulsion

Economic and financial performances of individual fishing vessels (in US$)

Type of vessel		Stern trawler 14.6 m	Tuna longliner 36 m	Purse seiner 13 m
Total earnings		66 950	751 730	35 560
Running costs
	Fuel	14 800	73 600	1 420
	Lubricant	1 430	3 660	320
	Harbour dues	320	1 590	320
	Ice	1 430		320
	Food	1 710	4 510
	Costs of selling fish	1 020	44 820	1 780
	Other running costs		11 270
Total running costs		20 710	139 450	4 160
Labour charges
	Labour share, wages	18 970	279 970	8 240
Total labour charges		18 970	279 970	8 240
Vessel costs
	Gear expenses	1 310	1 590	3 170
	Repairs and maintenance	2 820	16 670	2 480
	Vessel insurance	1 140	11 900	950
	General expenses	1 110	4 440	1 270
Total vessel costs		6 380	34 600	7 870
Total costs / expenses		46 060	454 020	20 270
Gross cash flow		20 890	297 710	15 290
	Depreciation	3 840	58 400	3 790
	Interest	(1) 4 230	(1) 66 630	(1) 3 780
Net cash flow		12 820	172 680	7 720

(1) Average amount for repayment on ten year loan 80 percent of investment.
Interest rate 18 percent.

Volume, composition and value of catches for three types of selected vessels

Type of vessel	Stern Trawler			Tuna Longliner				Purse seiner
	14.6 m Wood			36 m				13 m (Karnataka)
Catches (per year)	Weight (kg)	Price $/kg	Revenue ($)	K		P	R	K	P	R
1 - Shrimps
Tiger shrimp	480	12.0	5 760
White shrimp	2 400	8.2	19 680
Other shrimp	6 880	3.5	24 080
Fish
Prime fish	2 000	1.27	2 540
Other fish	32 000	0.48	15 360
	43 760		67 420
2- Yellowfin tuna				159 500		3.75	598 120
Bigeye tuna				2 000		5.7	11 400
Skipjack				200		0.6	120
Sailfish, marlin				15 000		3.3	49 500
Shark				53 000		1.75	92 750
Other				400		0.6	240
				230 100			752 130
3- Mackerel								40 000	0.48	19 000
Sardine								100 000	0.16	16 000
Other										600
								140 000		35 600

Return on investment

Type of vessel	Stern trawler 14.6 m	Tuna longliner 36 m	Purse seiner 13 m
Invested capital	53 460	841 270	47 680
Net cash flow	12 820	172 680	7 720
Return on investment	24.0 %	20.5 %	16.2 %

Financial services available to fisheries sector

The National Bank for Agriculture and Rural Development (NABARD) provides refinancing through commercial banks, cooperative banks and RRBs for development of marine fisheries.

Other agencies providing credit for marine sector are:

- Industrial Finance Corporation of India (IFCI)
- Industrial Development Bank of India (IDBI)
- Shipping Credit and Investment Corporation of India (SCICI)
- Industrial Credit and Investment Corporation (ICIC)
- National Cooperative Development Corporation (NCDC)
- State Finance Corporations (SFCs)

- Traditional craft and gear;
- mechanized vessels;
- motorization of fishing vessels;
- offshore fishing vessels (purse seiners, trawlers, longliners, etc.);
- processing plants;
- cold storage;
- ice plants;
- retail shops;
- refrigerated vans.

NABARD prepares guidelines for formulation of projects and assistance to financing banks.

- Borrowers: any individual, cooperative, corporation, private company etc. can submit a project to any bank. The financing bank, after appraisal, submits the same to NABARD for refinancing assistance.

- Loans: Contribution of borrowers: five to 25 percent.

Amounts and rates:

	Commercial banks	RRBs	SCBs
Up to US$800	8.5 to 12 %	6.5 %	6.5 %
From US$800 to 6 350	10.5 to 13.5 %	9.5 %	9.5 %
Above US$6 350	Commercial rate less 3 % to commercial rate	12.0 %	12.0 %

Security: mortgage on financed assets

Repayment period: usually four to ten years.

Capital subsidies:

In Karnataka State, a subsidy of Rs. 100 000 is available, in principle, for building multipurpose vessels.

MPEDA provides subsidies to offshore fishing vessels.

1.5 Malaysia

Fishing fleet

The Malaysian fishing fleet consists of two units, i.e.:

- Coastal or inshore fisheries include boats of less than 70 GRT operating within 30 nautical miles; they account for 87 % of total marine landings in Malaysia.

- Deep-sea fisheries include boats of 70 GRT and above operating beyond 30 nautical miles; they account for 13 % of total marine landings.

				tonnes
Otter trawl	5 991	Units in operation	Landing	609 298
Purse seine	953	"	"	156 826
Drift and gillnets	19 296	"	"	150 207
Hooks and lines	3 989	"	"	41 888
Portable traps (Bubu)	666	"	"	9 110
Total	30 895	"	"	967 329

Fishing areas

Inshore fisheries are located within the three following zones:

Zone A: 5 n mi from shore
Zone B: 5 to 12 n mi
Zone C: 12 to 30 n mi

- Deep Sea fisheries take place beyond the 30 n mi limit.
- 70 % of the fishing vessels are operated from Peninsular Malaysia.
- 30 % are operated off Sabah and Sarawak coasts

The Government acknowledges that inshore fisheries are already heavily exploited and that in this sector any attempt to increase fishing effort should be avoided. Special emphasis is given to proper management of existing resources.

Deep-sea fisheries are seen to have further potential for development. Since 1980, Malaysian waters expanded from 47 000 n mi² to 162 000 n mi², but off shore fisheries were not developed. This is the reason why the Government assumes there is still considerable potential for further development. As this kind of activity requires large capital investment, the corporate sector is expected to take an active role in its growth. Also aquaculture shows bright prospects for expansion.

The Government of Malaysia - through its Department of Fisheries - has started promoting the development of offshore fisheries and commercial aquaculture while maintaining a sustainable level of production for inshore fisheries.

Techno-economic and operational characteristics of individual fishing units

Type of vessel	Tonnage (GRT)	Crew size	Fishing trips/year
Trawler (otter trawl)	20 - 40	3 - 4	15 - 16
Purse seiner	20 - 40	14 - 15	14 - 15
Drift or gillnetter	5 - 10	1 - 2	19 - 20
Handliner	5 - 10	2 - 3	18 - 19
Portable traps	5 - 10	2 - 3	11 - 12

Sharing system

Gross revenue - operation costs = net profit

Owners share = 50 % of net profit

Crew share = 50 % of net profit including:

- Captain's share
- Wages - other key positions
- Wages - ordinary crew

Investment	Hull (1)	Engine and propulsion	Deck equipment	Fishing gear	Total
Depreciation rate	10 %	10 %	10 %	20 %
Trawler (30 - 40 GRT)	41 480	22 590	12 520	6 130	82 720
Purse seiner (30 - 40 GRT)	37 410	15 810	7 850	12 300	73 370
Drift or gillnetter (5 - 10 GRT)	11 110	3 700	1 850	3 700	20 360
Handliner (5 - 10 GRT)	11 410	6 200	3 780	390	21 780
Portable traps (5 - 10 GRT)	11 110	6 200	4 070	2 590	23 970

(1) Assumed depreciation rate for traditionally built wooden hull = 10 %

Economic and financial performance of individual fishing vessels (in US$)

Type of vessel	Trawler (30 - 40 GRT)	Purse seiner (30 - 40 GRT)	Drift or gillnetter (5 - 10 GRT)	Handliner (5 - 10 GRT)	Portable traps (5 - 10 GRT)
Total earnings	62 450	116 730	7 160	19 300	12 300
Running costs
Fuel	19 470	17 360	1 470	3 440	2 400
Ice / salt	4 100	13 100	490	1 520	1 200
Other running costs	3 190	10 740	650	1 600	1 150
Total running costs	26 760	41 200	2 610	6 560	4 750
Labour charges
Total labour charges	12 950	35 210	1 040	4 300	2 300
Vessel costs (1)	10%	15%	5%	3%	5%
Total vessel costs (1)	6 240	17 500	360	580	610
Total costs / expenses	45 950	93 910	4 010	11 440	7 660
Gross Cash Flow	16 500	22 820	3 150	7 860	4 640
Depreciation	8 890	8 570	2 410	2 220	2 660
Interest (2)	2 910	2 580	720	770	840
Net Cash Flow	4 700	11 670	20	4 870	1 140

(1) Estimate: proportion of earnings

(2) Average amount for repayment on ten year loan 80 percent of investment value.
Interest rate eight percent.

1.6 Indonesia

Artisanal fishing: (Indonesian EEZ)

Non- powered boats: 61 %	245 162
- Dugout canoes	127 936
- Plank boats	117 226
- Small	73 392
- Medium	37 139
- Large	6 695

Purse seiners, Indonesia

Purse seiners, Indonesia

Trawler, Indonesia

Powered boats: 39 %		159 491
- Outboard powered boats : 25 %		94 024
- Inboard powered boats: 16 %		65 467
	<5 GRT	48 855
	5 - 10 GRT	9 562
	10 - 20	2 789
	20 - 30	1 519
	30 - 50	1 682
	50 - 100	687
	100 - 200	253
	>200	120
	Subtotal	404 653
Industrial fishing (international waters)		1 674
TOTAL No. of fishing vessels		406 327

Fishing areas

The major fishing areas and the fishing carried out throughout Indonesian waters are:

Java Sea, west coast of Jakarta	Gillnetters < 30 GRT	150 n mi
Java Sea, central coast	Purse seiners 20-50 GRT	20 - 30 n mi
Pekalongan	Purse seiners 50 - 100 GRT	50 - 60 n mi
Java Sea, Makassar Strait " South China Sea Pekalongan	Purse seiners > 100 GRT	> 100 n mi
Indian Ocean, Benoa, Bali-Nusa Tenggara	Longliners 15/40/60/100 GRT	South of Java and Bali
North Sulawesi and Obi Strait (N. Maluku) Gorontalo and Labuha	Tuna handliners 3 - 5 GRT	Coastal fishing
Obi Strait (N. Maluku) Labuha	Pole and liners 10 GRT	Coastal fishing
Waigeo island and Arafura sea (W Irian Jaya) Sorong, Fakfak, Kaimana	Pole and liners 30 GRT	20 - 100 n mi

Plans for future development of fleet

While the MSY has been estimated by Indonesian Directorate General of Fisheries at a level of 6.72 million tonnes / year, to compare with actual landings of 3.29 million tonnes (49 % of the total resource potential), many fishing areas are reported to be fully or overexploited:

- Fully exploited resources: Penaeid stock (Java Sea), Spiny lobster stock (Indian Ocean)

- Overexploited resources: small pelagic fish (Malacca strait and Java Sea), demersal fish stocks (Malacca strait, Java Sea, Makassar Strait, Flores Sea, Seram Sea, Tomini bay, Celebes Sea, Pacific Ocean).

Techno-economic and operational characteristics of individual fishing units

Type of vessel		Length (m)	Tonnage (GRT)	KW	On board facilities/ storage	Fishing gear	Crew Size	Ownership
Purse seiners
	Small	17	15	2 x 17 (outboard)	Fishhold (9t)	Purse seine 250 / 300 x 40 m	21	Individual
	Medium	18	54	59	Ice, salt + fishhold (13 t)	400 / 600 x 60m	34	Company
	Large	25.5	114	171	Ice, salt + fishhold (60 t)	600 / 800 x 80 m	44	Company
Skipjack Pole and liner
	Small	16	10	33	Ice + fishhold (4 t)	10 poles	20	Individual
	Large	22.2	30	177	Ice + fishhold (20 t)	20 poles	23	State owned company
Tuna Handliner		13	5	11 - 18	Ice + fishhold (2 t)	Line (60/100 m)	4	Individual
Type of vessel		Length (m)	Tonnage(GRT)	HP (KW)	On-board facilities/ storage	Fishing gear	Crew size	Ownership
Tuna Longliners
	15 GRT	14.5	15	77	Ice + fishhold (4.6 m3)	Hooks 700	11	State-owned company
	40 GRT	18.8	40	177	" (32 m3)	Hooks 1 200	13	"
	60 GRT	23.4	60	177	" (41 m3)	" 1 500	13	"
	100 GRT	27.8	100	295	" (125 m3)	" 1 500	19	"
Gillnetter		12.3	5.5	25	" (3.8 t)	Pieces of nets 60	7	Individual

Type of vessel		Fishing days	Average duration of fishing trips	Fishing seasons (and off-seasons)
Purse seiners
	Small	149	1 day	May-Jul and Aug-Dec (Jan-Mar)
	Medium	155	17 days	"
	Large	164	21 days	"
Skipjack pole and liners
	Small	150	1-2 days	9 month-peak Sept-Nov (Dec-Jan)
	Large	205	5 days	"
Tuna handliner		132	1-2 days
Tuna longliners
	15 GRT	254	15 days	Jul-Dec (Jan-Mar)
	40 GRT	278	"	"
	60 GRT	265	"	"
	100 GRT	283	35 days	"
Gillnetter		276	14 days	Feb-Sep (Oct-Jan)

Financial and economic characteristics of individual fishing units

Investment costs (in US$)

Investment		Hull	Fishhold	Deck equipment	Engine and propulsion	Fishing gear	Total
Depreciation rate		4 %	4 %	10 %	10 %	20 %
Type of vessel
Purse seiners
	Small	15 450	2 580	20	3 080	12 170	33 300
	Medium	30 040	16 310	1 290	6 050	31 490	85 180
	Large	51 500	18 460	1 300	7 430	35 410	114 100
Skipjack pole and liners
	Small	3 860		40	20 170	90	24 160
	Large	62 230		1 720	40 770	100	104 820
Tuna handliner		2 150		20	5 360	30	7 560
Tuna longliners
	15 GRT		(not available)
	40 GRT		"	"
	60 GRT	429 180				85 840	515 020
	100 GRT		(not available)
Gillnetter		15 020		60	7 330	3 220	25 630

Economic and financial performances of selected fishing vessels (in US$)

Type of vessel		Purse seiner 17 m	Purse seiner 18 m	Purse seiner 25.6 m	Tuna longliner 23.4 m
Total Earnings		25 430	62 030	85 700	203 150
Running costs
	Fuel	2 460	22 360	27 570	21 040
	Lubricant		490	530	2 100
	Harbour dues	260	730	900	4 280
	Ice / salt	910	3 330	4 640	970
	Food	980	5 670	6 780	5 950
	Costs of selling fish	1 270	3 100	4 280
	Other running costs		20	30	18 450
Total running costs		5 880	35 700	44 730	52 790
Labour charges
	Labour share,wages	4 980	5 500	9 220	11 800
	Social insurance	510	1 240	1 710	3 480
	Other labour charges	1 270	3 100	4 280	22 910
Total labour charges		6 760	9 840	15 210	38 190
Vessel costs
	Gear expenses	330	620	730	4 500
	Repairs and maintenance	590	980	1 070	18 470
	General expenses		630	660	420
Total vessel costs		920	2 230	2 460	23 390
Total costs / expenses		13 560	47 770	62 400	114 370
Gross cash flow		11 870	14 260	23 300	88 780
	Depreciation	3 470	8 890	10 750	(est) 45 000
	Interest (1)	2 050	5 250	7 030	31 720
Net cash flow		6 350	120	5 520	12060

(1) Average amount for repayment on ten year loan 80 percent of invesmtent.
Interest rate 14 percent.