The Government’s ₹17,630-crore project approval to the port sector to augment the capacity of major ports by about 151 million tonnes per annum (MTPA), has been hailed by the industry, as it would improve exim trade. Of the five projects approved, four are container terminals and one is a multipurpose cargo berth project in Mumbai port.

M Rafeeque Ahmed, President of the Federation of Indian Export Organisations (FIEO), said it is a positive development since it would raise declining GDP numbers.

Of a total of 276 projects, covering capacity augmentation and modernisation schemes in 13 major ports, under the National Maritime Development Programme (NMDP), 82 have been completed so far, while work in 98 others is in progress.

The National Maritime Agenda 2010-20 has included in its ambit capacity creation projects with a target capacity of over 3 billion tonnes by 2020. The FIEO chief stated that at the macro level, impetus to infrastructure and investment in the economy would raise GDP numbers, which have fallen to a decade low of 4.5 per cent.

Ahmed said t the response has been good, with the maximum number of 11 qualified bids for the Ennore container terminal, and seven qualified bids for the JNPT's fourth container terminal. Highlighting the doubling of container handling capacity, which is at 11.57 million TEUs (twenty foot equivalent units), Ahmed elaborated on the congestion at JNPT, which traditionally covers the western hinterland. He said the JNPT port is working beyond its installed capacity in the peak season, at times to over 110 per cent, leading to delays and diversion of cargo to adjoining ports of Mundra and Kandla. All of this, he added, increases the overhead cost for exporters.

Given that the 12th plan envisages $1 trillion for infra development, raising funds for infra projects needs to be institutionalised in the form of a specialised Maritime Finance Corporation to appraise and fund port projects, he said.

Related Topics
comment COMMENT NOW