The Hindu Business Line : Major plans for minor ports

The role of minor ports run by State governments is going to be crucial for the country in the next five years. Recognising this, the maritime States have drawn up plans for a number of projects to expand their port capacities considerably. Under the National Maritime Development Programme (NMDP) of the Shipping Ministry, projects worth Rs 5,163 crore are to be taken up in the minor ports.

Besides the country's 12 major ports, there are 185 minor ports dotting India's 7,517-km coastline. However, only some of them provide round-the-year berthing facilities.

The major ports handle around 75 per cent of India's sea-borne traffic and the minor ports account for the remaining 25 per cent. The aggregate capacity in the 12 major ports as on March 31, 2006 was 456.20 million tones per annum (MTPA). The non-major ports handled around 150 mt last fiscal.

Port traffic is estimated to reach 960 mt by 2013-14. Cargo handling at all major ports is projected to grow at 7.7 per cent per annum till 2013-14, with minor ports growing at a faster rate of 8.5 per cent compared to 7.4 per cent for the major ports.

Of the country's 185 minor ports, only 61 are functional, according to a report. The number of non-functional minor ports is the maximum in Maharashtra, at 46, while the corresponding numbers for the other States are Gujarat (23), Andamans (17), Kerala (10), Tamil Nadu (9), Andhra Pradesh (9), Goa (4) and Karnataka (4).

Minor ports fall in the Concurrent List of the Constitution and the primary responsibility for their development and management rests with the State concerned.

States' Responsibility

The current Five-Year Plan envisages a significant change in the role of coastal shipping and provides for the establishment of a Coastal Vessel Traffic Service by the Director General of Lightships and Lighthouses.

Some of the major projects for additional capacity at minor ports include 115.50 MTPA in Gujarat, 83.20 MTPA in Maharashtra, 30 MTPA in Tamil Nadu, 27.50 MTPA in Kerala, 25.20 MTPA in Orissa and 17 MTPA in Karnataka.

The projects include greenfield projects, captive facilities and upgrading of existing ports.

Gujarat has greenfield projects at Simar, Mithivirdi, Vansi Borsi and Maroli, and Bedi is in the pipeline. Andhra Pradesh, has many projects including those under development in Machillipatnam, Nizampatna and Bhimunipatnam ports.

Tamil Nadu plans to develop Cuddalore, Colachel (a major container transhipment port is planned here) and Rameshwaram ports. Maharashtra plans to develop Rewas-Aware, Dighi, Jalga and Vijaydurg, and Redi is on the anvil.

Orissa is concentrating on Gopalpur, Dhamra and Jatadhari. Karnataka is expanding Karwar, Tadri and Belekri ports. Similarly, Kerala is focussing on Azhikal and Vizhinjam ports.

Puducherry plans to develop the Puducherry and Karaikal ports.Domestic and international private investors are also developing minor ports — such as Pipavav Port by Maersk and Mundra Port by the Adani group.

Further, a feasibility study is being taken up for development of a transhipment port at Great Nicobar Islands, the Shipping Ministry report says.

What It Will Cost

The development of minor ports also came up for discussion at the recent meeting in Chennai of the National Shipping Board, which advises the Government on development of ports and shipping.

A proposal was sent to the Ministry of Shipping in July 2005 to develop minor ports.

A meeting of the representatives of the maritime States was held by the Director-General of Shipping in January this year. After detailed discussions, State-wise options with fund requirements were submitted to the Ministry in March for consideration.

The requirements for Orissa alone, for instance, will be around Rs 1,300 crore in the first phase.

The funds will come from the Government under the Centrally-Sponsored Scheme and private developers will invest in the ports. The investment will be phased over 5-7 years, sources said.

It is learnt that an action plan has also been formed to complete development programme in the next three years in minor ports. The implementation agency will be the Government of Orissa through tender process or Rites Ltd will choose the selected developer among the prospective bidders, the sources said.

Draft Policy

A draft Maritime Policy prepared by the Ministry of Shipping says that to avoid unhealthy competition and to protect the territories of major ports, no new minor ports may be carved out of the territory of a major port.

Similarly, no minor port, or a part thereof, will be converted into a major port without the consent of the respective State Government. Criteria will be prescribed for declaration of minor ports as major ports.

The possibility of extending financial support for the development of minor ports, including for improvement in draft, breakwaters, road and rail connectivity and development of coastal shipping, will be explored.

Efforts will also be made to develop at least one minor port on each coast through Central Government funding.

As the policy envisages integrated development of facilities in the port sector covering both major and non-major ports, specific synergies would be developed to avoid unhealthy competition, the report says.