Smooth-sailing minor ports veering towards major league

India˜s key ports like JNPT, Vishakapatnam and Kandla have for long been the mainstay of the country’s sea-borne trade...

India’s key ports like JNPT, Vishakapatnam and Kandla have for long been the mainstay of the country’s sea-borne trade, but smaller ports are now rapidly emerging as their toughest rivals. Over the last 10 years, the share of total cargo handled by minor and intermediate (non-major) ports in India has jumped from a modest 10 per cent to 25 per cent, indicating fundamental changes in the way marine trade is conducted. Of the approximately 240 million tonnes of marine cargo handled in 1995-96, non-major ports managed barely 10 per cent. By 2005-06, these ports handled 145 million tonnes or over a quarter of total Indian sea-borne traffic. And the first six months of 2006-07 indicate that the share has gone up even further to 26 per cent.

“The share of minor and intermediate ports has been rising and will continue to rise over the next few years,” said a senior official from the Department of Shipping. “In 2005-06, 187 non-major port sites were identified for development, of which 61 are cargo-handling facilities. This is pushing growth.”

The increasing draw of non-major ports is a product of the aggressive shipping policies being pursued by states like Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Kerala. Since non-major ports are a state subject, the respective governments have the freedom to facilitate fast-track clearance and establishment of ports, particularly through private participation.

Gujarat is a case in point. The state, with its 1,600 km coastline, has 41 non-major ports that come under the jurisdiction of the Gujarat Maritime Board. These ports together handled 74 per cent of the total non-major port cargo in the country in 2005-06, or about a fifth of total cargo passing through all Indian ports. In a move that is certain to increase the pace of shipping growth, the state has now identified several more greenfield ports to be executed in various phases.

“We have given the nod for development of greenfield ports at Mithivirdi, Simar, Vansi Borsi, Maroli, Khambat and Mahua at investments ranging from Rs 3,000 crore to Rs 6,000 crore,” said Gujarat chief nautical officer S Mathur. “Another Rs 23,000 crore have been earmarked for upgradation of existing ports and a lot of this development is happening with private participation.” Not surprisingly, a significant chunk of the state’s $30 billion current and planned investments cluster around non-major ports. Investments in Hazira are pegged at Rs 16,000 crore, Varga expects Rs 15,000 crore while Jamnagar and Pipavav are slated to see Rs 20,000 crore pouring in.

Gujarat’s aggressiveness in promoting shipping is mirrored by that of Maharashtra’s. The latter’s maritime board has greenfield port projects underway at Dighi and Rewas Aware, whereas five other sites have also been identified for development. Experts say that the overall bullish growth in non-major ports is a natural outcome of strained capacities at major ones, resulting in increased berthing time of cargo. “The major ports are a legacy of the past,” said Asian Institute of Transport Development director K L Thapar. “With economic activity mushrooming across locales, they face geographic limitations. Upcoming non-major ports are captive ones to cater to specific companies.”

With marine activities like fishery development at the take-off stage, “The ocean is going to be the reservoir of future exploitation of minerals and non-major ports would be best equipped to handle this,” Thapar said.

States get into the act

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• Non-major ports aggressively pursued in Gujarat, Andhra Pradesh, Kerala, Maharashtra and Karnataka

• State governments facilitating fast-track clearance for port development through private participation

• Gujarat has given nod for development of greenfield ports at Mithivirdi, Simar, Vansi Borsi, Maroli, Khambat and Mahua

• Investments will be around Rs 3,000-6,000 crore. Additional Rs 23,000 crore earmarked for upgradation of existing ports

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• Maharashtra also has greenfield port projects at Dighi, Rewas Aware. Further sites identified at Alewadi/Vadhvan, Anjanvel, Vijaydurg, Ganeshgule, Redi