Plans to modernise 12 ports and launch three new ports to raise efficiency to global stds
No fund shortage but reforms on policy, administration and mechanised systems need of the hour – Nithin Gadkari , Shipping and Road Transport Minister
By TN Ashok / Economics Editor
New Delhi, Sept 23: The Union Minister for Shipping and Road Transport Nithin Gadkari today unveiled government’s plan to modernize some 12 existing ports in the country besides launching three more new ones to bring efficiency on par with international ports while admitting resources were no constraint as ports were flush with funds but time and cost overruns had to be checked by bringing in policy and admin reforms.
“There is no need to go to the equity markets to raise money or tap into pension funds as ports have enough money parked in term deposits in banks as they are all in profit making mode “, he said however admitting that still they were way behind international ports in handling turnaround time as they were handicapped by capacities and modern equipment. Indian ports still cannot handle vessels of over 200,000 tonnes and turnaround time is eight days compared to 4 days in international ports.
Gadkari told a press conference today that resource was not a constraint for the ministry but what was needed was major reforms in policy, administration and mechanized systems. Approvals take time and there are too many bureaucratic delays which come in the way of executing projects, Gadkari said. Money can also be raised through the PPP (public private partnership) for port expansion and modernisation, he said.
International consultants had been roped in to help modernize the 12 major ports in the country ranging from – BPT, CPT, JNPT, Kandla to Haldia, Vizag and some others and three new ports such as Dahanu in Maharashtra bordering Gujarat, Collachel in Tamil Nadu and Sagar Mala in West Bengal but details were not revealed.
India was lagging behind many nations in seafarer trading which was enabling nations to prosper fast, Gadkari said adding that Euro Zone countries accounted for 40% of global trade via the sea route, China 47%, South Korea 43% and India barely accounted for 4.2% of the trade.
India had a vast coastline of 7,500 kms which had not been exploited. Road transport as a means of evacuation of goods for movement or exports was expensive as highways sucked in a huge investments. Whereas the only cost involved in moving goods through the sea route was one for dredging and the other for establishing ports that involved capital expenditure.
Gadkari also spoke of a plan to set up a urea plant in Iran to help secure not only domestic supplies but also make available surplus for export to third countries. But this entirely depended upon gas pricing which was under intense negotiation between the two countries, he said pointing out that he had already visited Iran and discussed the matter with the Oil and Gas Minister there.
While on cost reduction, Gadkari said ports were spending enormous amounts of money in paying a high tariff of Rs 11.50 per unit for their power needs while industry paid only Rs 7.50 per unit. To settle this problem once and for all, he said government had decided to create 150 MW of power totally by setting up small sized solar power plants in the captive mode concept.
Each of the captive power plant to be installed in each of the port would vary in size from 15 MW to 25 MW to 50 MW depending upon the size of the port and its power needs.
Elaborating on new schemes, Gadkari said a new company termed Indian Port Rail Corporation was being set up to focus on the last mile connectivity for movement of cargo. Another company called India Port Global was being established to take up overseas projects – one in Iran and the other in Bangaldesh.
Gadkari said several steps had been taken by the government to help ports handle large vessels , upgrading equipment and technology ( best in class container cranes for JNPT and new ones ordered for Paradip, Vizag and Kandla ), upgrade mechanization, and launched efficiency improvement initiatives.
