The Hindu Business Line : `Deepen port channels to attract mainline vessels'

THE Union Shipping Ministry has been encouraging major ports to participate in special purpose vehicles for road and rail connectivity projects through equity participation with an objective to improve the infrastructure, according to the Union Shipping Minister, Mr T.R. Baalu.

There is a need to improve infrastructure to global standards to face the immense competition in a globalised environment. For this, he said the port channels had to be deepened to attract mainline vessels and road and rail connectivity to the ports improved when and where necessary to provide dedicated freight corridors for cargo evacuation from ports to the hinterland.

Speaking at a recent function here, the Minister pointed out that his Ministry recognises the limitations of major ports in funding capital dredging projects. However, ways and means of reducing the burden on the ports in this regard will be found, he said, adding that a national sea waterways network, to be maintained by the Union Government on the lines of National Highways, is on the anvil.

The Government will also take action to modernise the country's ageing fleets. He said that the tonnage tax regime introduced by the Ministry to bring out taxes in line with international levels will have a positive impact in boosting foreign investment in shipping.

The maritime sector has shown tremendous improvement in the recent period as ports in the country have coped admirably with the challenges thrown up by India's globalisation process.

The major ports today handle more than 350 million tonnes of cargo, against 19.3 million in 1950-51. The operations in minor ports had registered an increase, touching 120 million tonnes from a meagre 4.41 million tonnes in 1960-61.

Container traffic is also growing at an average rate of 16 per cent per annum. However, lack of deep drafts in major ports is hampering the anchoring of large-size vessels. Consequently, every second container originating from or bound for India depends on a port in a neighbouring country for transhipment, adding that transaction cost to the trade, he said.

To overcome this crisis, the Minister said that JNPT on the West Coast and Chennai Port on the East Coast are already being developed as hub ports. Setting up of an international container transhipment terminal is also a major step in reducing the transhipment costs. Efforts will also be made to divert transhipment of containers of other countries to the ICTT, he added.

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