What in the country’s port sector is engaging the government’s attention most?

The issue of capacity expansion of ports. The objective is to double the capacity to 1.5 billion tonnes by the end of the 11th Plan. For an economy that is growing at nine per cent per annum with sea-borne trade accounting for 95 per cent of the country’s foreign trade, the present port capacity is clearly inadequate.

Look at China, where the port capacity is around three billion tonnes. We have a long way to go.

What will be capacity distribution between major and non-major ports?

By the end of the Eleventh Plan, it was initially thought, the major ports would end up with a total capacity of one billion tonnes, up from around 500 million tonnes (mt) at present, and the non-major ports the balance 500 mt, up from around 250 mt.

However, the maritime states have indicated that the non-major ports could step up the capacity up to 830 mt by the end of the 11th Plan.

We are very bullish about the future performance non-major ports, which currently handle nearly 25 per cent of the country’s total sea-borne traffic.

How much of the proposed additional capacity will be created through private participation?

Frankly, the picture is not clear yet. One reason for this is that it is an ongoing exercise. In the original National Maritime Development Programme (NMDP) the outlay for the port sector was set at Rs 55,000 crore, including private sector participation of Rs 40,000 crore. The figures are being revised. It is now estimated that the port sector might need an investment of about Rs 90,000 crore, and 70 per cent of that should come from the private sector.

How hopeful are you about private sector participation?

I’m very hopeful.

How is the public-private partnership (PPP) model working?

It is working quite well. Private sector investment in the port sector so far has been to the extent of Rs 7,000 crore and the figure in the next five years is likely to be around Rs 40,000 crore, the bulk of it through the PPP route.

What about acquisition of equipment?

The ports have been told to modernise their operations through the acquisition of modern equipment and the state-of-the art technology, and private firms are being encouraged to play an active role in this regard.

What are the new port projects coming up, particularly in the private sector?

Quite a few. Gujarat, of course, is in the forefront but a number of port projects, particularly those being developed by the private sector, are in various stages of implementation in other States such as Maharashtra, Tamil Nadu, Andhra Pradesh and Orissa.

How hopeful you’re about the deep-sea port project in West Bengal? Will there be enough traffic to warrant the kind of investments needed for the project?

We are in the process of appointing a consultant for the deep-sea project in West Bengal. A clearer picture will emerge once the project report is ready. I am optimistic about the project. If the projected growth of the economy is any indication, there should be no dearth of traffic. What we woefully lack is infrastructure. Many more ports are needed.

Is creating port infrastructure per se enough? Unless the ports are linked properly…

The government is fully seized of the importance of an integrated approach to the transport sector. Port connectivity is an important component of the National Highway Development Programme. The dedicated freight corridors being planned by the Indian Railways, again, will be linked to ports, both on the east and west coasts.

While the western corridor will link north India with JNPT port, the eastern corridor will hopefully link Kolkata port. The high-powered infrastructure committee, headed by the Prime Minister, regularly monitors the progress of the various infrastructure projects covering road, rail, civil aviation, among others.

Finally, could you comment on the acquisition programmes of Shipping Corporation of India and Dredging Corporation of India?

The Government would like to strengthen the capacity of both SCI and DCI and has accordingly asked these two organisations to go ahead with their acquisition programmes. Both the organisations have major acquisition programmes.

What about funding?

I don’t think budgetary support will be needed. Both SCI and DCI have resources and they can leverage their present strength to raise further resources to fund their planned acquisitions. We are not unduly worried about it.

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