Ports

There are 12 major ports and 184 minor/intermediate ports along India's 5,560-km coastline. The major ports are Kolkata/Haldia, Mumbai, Jawaharlal Nehru Port Trust (JNPT) at Nahava Sheva in Mumbai, Chennai, Kochi, Vishakhapatnam, Kandla, Mormugao, Paradip, New Mangalore and Tuticorin. A new major port, Ennore Port, has started functioning near Chennai from 1 February 2001. The ports at Kolkata, Mumbai, Chennai and Mormugao are more than hundred years old, while the Kochi and Visakhapatnam Ports are over 60 years old. The ports at Kandla, New Mangalore, Tuticorin, Paradip and Haldia were developed after Independence and the JNPT was commissioned in 1989. Major ports handle about 75 per cent of the country's port traffic, with the minor/state ports handling the remaining 25 per cent.

Policies and Programmes for the Tenth Plan

Productivity

Although productivity in terms of ship turnaround time, waiting time and average ship berth day output has slightly improved over the last decade, the performance continues to be modest when compared with generally accepted international standard and performance of regional ports.

Port Productivity at Major Ports

The Functioning of major ports under various Port Trusts is operationally inflexible, and they are unable to respond quickly to changing market situation due to delays inherent in the decision making process. Steps are, therefore, being taken by the Government towards corporatisation of major ports.

Corporatisation of Major Ports

• A new major port, Ennore Port Company Limited, has started functioning from 1 February 2001.
• It has been decided that existing major ports would be corporatised, starting with JNPT and Haldia. To enable speedy corporatisation of the existing major ports, the Major Port Trusts Act, 1963 needs to be amended. The amendement needs to provide for vesting undertaking of the major ports in successor companies, define the scope of transfer of assets and liabilities, protect the right of successor companies in relation to the licenses etc. granted to the erstwhile port trusts, vest the land and waterfront in the Central Government, provide consideration for transfer of assets and liabilities, protect the guarantees enjoyed by the port trusts and lay down the terms and conditions of leasing the land and waterfront to the companies. The Major Port Trusts Amendment Bill, 2001 has been introduced in the Parliament.

Private Sector Participation

The broad objectives of the participation of private sector in port development have been to bring about an improvement in efficiency, productivity, quality of service as well as to usher competitiveness in the provision of port services. In addition, the private sector is expected to mobilise adequate resources required for capacity augmentation and introduce the latest technology and management techniques in the ports sector.
The Government has identified the following areas for private sector participation:

• Leasing out assets of the ports.
• Construction and operation of container terminals, multiple cargo berths and specialised cargo berths, warehousing, storage facilities, tank farms, container freight stations, setting up captive power plants etc.
• Leasing of equipment for cargo handling and leasing of floating rafts from the private sector.
• Pilotage.
• Captive facilities for port based industries.

During the Tenth Plan (2002-2007), an ambitious investment plan for private sector participation is to be initiated. In addition to Plan allocations for major ports, investment to the tune of Rs. 11,256 crore is expected from the private sector.

Joint Ventures

The objective of setting up joint ventures is to attract new technology, introduce better managerial practices, expedite implementation of schemes, foster strategic alliances with minor ports for the creation of the optimal port infrastructure and enhance the confidence levels of the private sector in funding of ports.
A scheme for joint ventures between major port and foreign ports, between major port and minor ports, without tender, as well as major port and companies following the tender route has been approved by the Cabinet and guidelines on joint venture formation have been issued. Amendments to the Major Port Trusts Act, 1963 for this purpose have come into effect from 1 September 2000.

Development of Gateway Ports

International trade is witnessing an increasing trend towards containerisation. JNPT and Chennai Ports, which are capable of berthing mother vessels, need to be developed as mainland gateway ports connected by a rail/road bridge and equipped with efficient, modern container handling facilities. The availability of such inter-modal facilities will result in considerable savings in cost and time for ships from the east carrying containers destined for Chennai and beyond and those from the west carrying containers for Mumbai and beyond.
At present, about 70 per cent containers are trans-shipped at Colombo, Singapore etc. benefiting those ports. This has made India's imports costlier and exports less competitive due to longer transit time and additional port cost. Trans-shipment through Indian ports by way of establishing two hub ports would result in a saving of Rs. 1,000 crore per annum, in addition to cutting transit time. The policy to avoid transshipment at foreign ports should lay emphasis on:

• Increased thrust on private sector participation
• Simplifying customs procedures
• tarting a round-the-clock working regime in customs
• Stopping the payment of multiple overtime to customs officials
• Relaxation in the cabotage law for export/import container cargo
• Implementing Electronic Data Interchange (EDI) for trade facilitation
• Relaxing bank guarantee and bond formalities for transhipment of cargo
• An integrated approach to be adopted by railways, roads and ports so as to ensure hinterland connectivity.