The Hindu Business Line : `Major Indian ports have a long way to go'

Key recommendations
Shipping Ministry must delegate powers to port authorities
Ports must invest in hinterland connectivity and cargo handling

New Delhi April 5 Even as the major Indian ports are witnessing high growth rates, they have a lot of catching up to do as far as their counterparts in North West Europe are concerned.

While the 11 major ports between Hamburg and Le Havre handle 1,020 million tonnes of cargo, the 12 major ports in India between Kolkata and Kandla handle about 420 mt of cargo annually, according to Mr Marc Evertse, Area Manager (South Asia, Middle East, Africa and Turkey), Port of Rotterdam, here.

He was speaking at an interactive meeting held between the Shipping Ministry and port officials.

The North West European ports serve a population of about 200 million, where as the Indian ports serve a population of 1,100 million. "While the North West European ports are matured markets, India is emerging," he said.

Port of Rotterdam, one of the busiest container ports in the world, was commissioned by the Indian Ports Association about a year ago, to advise on business plans of the major ports in India.

`DELEGATE POWERS'

The key recommendations of the Port Authority of Rotterdam include delegation of powers - from Shipping Ministry to the major port authorities, and from higher ups to places of action within ports - so that several decisions can be taken and acted upon in a relatively faster manner. "Indian port authorities are relatively cash-rich. But even if they want to invest in berths, they have to take clearances, " he told Business Line on the sidelines of the conference.

"Port authorities should make master plans and not do the jobs. We have outsourced most of our activities," Mr Pieter Struijs, COO, Port of Rotterdam, said.

CARGO HANDLING

The Rotterdam Port has also suggested that major ports should invest more in mechanised cargo handling. "Ports appear to be berth minded. It is cheaper to improve efficiency of present berths than create more berths," Mr Evertse said.

Moreover, investments in cargo handling also tend to create employment. "In 2005, out of some 66,000 people employed in 11 major ports in India, almost one-third were engaged in cargo handling. This does not include the private sector employment and data on indirect employment is not available," he said, adding that some Indian ports have good facilities like dry bulk handling at Ennore.

"The private sector in the Port of Rotterdam directly employ about 70,000 people in cargo handling and 3,00,000 people are indirectly employed," he said.

HINTERLAND CONNECTIVITY

Pointing out that hinterland connectivity is often a problem, it suggested that ports should invest in hinterland connectivity to be able to offer total transportation solutions to the clients.