The Ministry of Shipping announced that it will award 25 port projects under public-private partnership model in the current financial year, which will equip major ports to better compete with the non-major ports
 In yet another major step to boost capacity of the major ports in the country, the Ministry of Shipping (MoS) has announced that it would award 25 port projects,under public-private partnership model, worth nearly Rs 800 crore in 2010-11. MoS’ announcement has come at an opportune time considering the fact that during the period from April-July 2010, the major ports have registered a growth of just a little over 2% in cargo handling as compared to the same period last year. Commenting on this, Dere Babaji, managing partner of Fast Track Logistics, a mid-sized shipping firm in Navi Mumbai, says, “These port projects will not only play an instrumental role in elevating overall capacity of the major ports, it will also boost business of shipping and logistics firms operating within the hinterland of these ports. At the same time, it will increase the role of the private sector in port development projects, which would in turn elevate overall efficiency of the ports.”
Projects to be awarded
Among the projects, a mega container terminal will come up at Chennai and New Mangalore ports, while a berth will be converted for container terminal at Tuticorin port. The projects will also include setting up of three mechanised facilities at Vizag port and building of two jetties at Kolkata port.
“These port projects will help the major ports of the country to better compete with the minor ports, whose services are being preferred at present due to better infrastructural facilities and governance,” says Winston Vinod Kumar, manager at Geo Logistics, a mid-sized logistics firm in Bengaluru. Figures too reflect the same. While in 1999, the share of major and minor ports stood at 95% and 5%, respectively, in the country’s total cargo handling, in 2009, the figure stood at 65% and 35%, respectively.
Arup Choudhury |
