The Hindu Business Line : Minor ports may drive capacity expansion in 11th Plan

New Delhi, July 4 Non-major ports led by Gujarat, Maharashtra and Andhra Pradesh are likely to drive the port capacity expansion of the country over the next five years.

The non-major ports are expected to add 610.85 million tonne per annum (mtpa) capacity during the Eleventh Plan period of 2007-08 to 2011-12 taking the total non-major port handling capacity to 839.168 mtpa. Non-major ports (also called minor ports) are the ports that are under the States’ jurisdiction, while major ports are under the Centre’s jurisdiction.

“At present, the non-major ports have a capacity to handle 228.3 mtpa traffic, while the major ports have a capacity to handle 508 mtpa,” Mr A.K. Mohapatra, Secretary, Department of Shipping, told Business Line. Compared to total port capacity (both major and minor ports) of 737 mtpa in 2006-07, the ports handled 649 mtpa – while major ports handled 464 mtpa traffic, non-major ports handled 185.54 mtpa.

Capacity Addition

Since the total required port capacity by 2011-12 is about 1,500 mtpa, the Government expects the major ports to add about 500 mtpa, while the minor ports can handle the rest. “We have initiated the process of involving maritime States in common endeavour to expand port capacity. On the basis of plans made by these States, it is expected that non-major ports would contribute 839 mtpa by 2011-12,” said Mr Mohapatra.

On the major ports, Mr Mohapatra said to add the projected capacity, expansion plans of at least 52 berths need to be implemented.

Investments key concern

For the port capacity expansion planned over the next five years, the shipping sector requires Rs 90,000 crore, a significant portion of which would have to be tapped from the private sector. Moreover, the concept to commissioning stage itself takes about 3-4 years for this sector.

“In this context, it is important to have a fast decision making process. The private sector is unlikely to wait for years for us to firm up our decisions,” he said.

On what are the major concerns for the port sector today, he said the biggest worry is to create additional port capacity at the quickest possible time. Moreover, it is also important to ensure that the hinterland rail and road connectivity gets built so that the port traffic is evacuated fast instead of resulting in congestion.