The Hindu Business Line : Andaman and Nicobar may get a major port

New Delhi, Sept. 19 The Shipping Ministry is considering a move to set up a port in Andaman under the Major Ports Act, which will allow the port at Andaman to be funded from the Centre.

The Ministry is also exploring the possibility of setting up a shipping company at Andaman in which the Shipping Corporation of India (SCI) will have a stake. The shipping company will acquire and operate ships.

“Under the Central jurisdiction, the port can access budgetary grants. It can be developed as a transhipment port such as Colombo, where majority of cargo is transhipped,” said a source.

Nods awaited

Nods from the Island Development Authority headed by the Prime Minister, Dr Manmohan Singh, and Planning Commission are required to execute the proposal. The proposal is at a fairly nascent stage, said sources.

According to Mr Manoranjan Bhakta, Member of Parliament, Andaman and Nicobar Islands, “This has been our long-pending demand. Andaman enjoys a location advantage for accessing South-East Asia. The Centre can develop this as a gateway for foreign trade.”

Currently, the major ports are Kolkata, Haldia, Paradip, Visakhapatnam, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, Jawaharlal Nehru port, Ennore and Kandla.

Andaman and Nicobar Islands has 23 ports, according to the Indian Ports Association data — Port Blair, Mus, Car Nicobar, Havelock, Mayabunder, Diglipur, Rangat, Hut Bay, Katchal, Campbell Bay, Neil Havlock, Dugong Creek, Nancowry, Chowra, Teressa, Kondul, Pillow Millow, East Island, Clnque Island, Jolly Bouy Island, Tillonchong, Castle Bay and South Bay. According to Government data, ports at Pondicherry, Andaman and Nicobar, and Lakshdweep together handled 1.6 million tonnes of cargo in 2006-07.

Incidentally, a high-powered committee set up by Government a few years ago had recommended developing Port Blair as a cruise tourism destination.

Port Management

The shipping activities at A&N Islands are managed by the Port Management Board, which is under the A&N Administration. So the incomes from shipping operations accrue to the consolidated fund. “If a major port were to be set up, it would help to have a coordinated development of port as a transshipment hub given the geographical advantage,” Mr Mohammed Jadwet, President, Andaman Chamber of Commerce and Industry, said.

“The administration has a fleet of 70-80 odd vessels—mostly passenger, some passenger-cum-cargo and some pure cargo,” said Mr Jadwet. He also said given the administration’s fleet size, corporatisation of shipping operations would help access better technical knowledge. About 5-6 of these vessels that offer services between the mainland and island are managed by SCI and the administration pays management fee to SCI.

There are five private companies that offer cargo services between mainland and islands – Gati, Transport Corporation of India, EHL, Mak, ITT Shipping, he said.

Then there are some 20-25 companies that offer inter-island services with 50-100 tonne vessels.

Currently, Shipping Corporation of India offers regular passenger services to Port Blair from Chennai, Kolkata and Visakhapatnam and back. There are three to four sailings every month from Kolkata and Chennai to Port Blair and vice-versa, according to the official Web site of Andaman and Nicobar Islands. There is one sailing from Visakhapatnam in a month.