The Hindu Business Line : To handle growing traffic volume... <br> Ports asked to float plans

THE Shipping Ministry has asked the 12 major ports under it to prepare development plans that outline their long-term vision with the accent on their core strengths. The Government is keen that the ports develop world-class facilities to meet the challenges of the future.

The Ministry has made it clear that the funding of the proposals to be incorporated in the plan has to be through internal generation and private sector participation.

The traffic in the country's major ports has been growing at 10 per cent per annum for the past few years. If this trend persists, the volume will double in the next decade. This is a major challenge before the ports, which have to gear themselves to handle the projected increase in traffic volumes.

While the need to create additional port capacity can hardly be over-emphasised, the Government is also serious that the existing facilities are put to efficient use, and the port management and employees at all levels become more responsive to customer requirements.

The proper functioning of the ports is critical for the efficient functioning of the economy because 95 per cent of the country's foreign trade is sea-borne. In fact, depending on the efficiency level, a sea-port can either be a facilitator or a hurdle to trade. The cost of the imported goods and the competitiveness of exports in the world market can be influenced by the port sector. According to the Ministry, the proposed development plan should cover seven years, fix the targets, work out strategies and firm up an action plan to achieve the targets within the stipulated period.

Acting on the Ministry's directive, the Cochin Port Trust has decided to engage an international consultant to prepare a business plan for the next seven years (up to 2012-13). The plan must provide a basis for institutionalising the process of reviewing, updating and modifying the plans on a rolling basis.

To be eligible for bidding for the consultancy job, an international consultant must have completed at least three assignments outside the home country in the preceding five years and three, involving development of business plans for ports, at least one in a developing country. The plan should be on the lines of similar exercises normally undertaken for a modern commercial corporation.

The selected consultant has to take into account plans and guidelines outlined in the National Maritime Development Programme and those proposed for the port. In addition to setting the long-term vision and working out the strategies, it must also examine the current capabilities and recent performance of the port, the competitive situation and outlook, business opportunities and demand forecasts, and estimated investments in port facilities and equipment.

Assuming that the impediments to growth are successfully tackled, the consultant should examine other related issues, such as terminal infrastructure development, channel and harbour dredging, acquisition of handling equipment and IT systems, environmental improvements to meet national and international pollution control standards and other capital projects required to keep the port competitive and responsive to user requirements.

Location-wise, Kochi port, the authorities feel, has strategic importance in the sense that it is perhaps the only commercial location that opens straight into the international sea-lane and, therefore, the global market, particularly the key markets of West Asia and South-East Asia.

Internally also, the port is well-connected to the rest of the country through the network of national highways and railways.

Meanwhile, the Ministry has decided to appoint its own consultant to vet the business plans to be prepared by various consultants in each port.

The consultant, who will act as the advisor to the Ministry, will review reports prepared by the consultants to be appointed by the individual port, participate in their presentations and give his comments.