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Importance of the Indian port sector? |
- It plays a vital role in sustaining growth in the country’s trade and commerce.
- Has an important role in fulfilling India’s dream of achieving greater global engagement and integration with its trading partners. Much of India’s port-led development initiative is expected to revolve around growth in maritime trade, given its share in terms of both volume and value in the country’s overall trade statistics.
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What is the government for undertaking port-led development? |
- Recognising the important role port-led development can play in India, the Central government has undertaken several initiatives such as development of new ports, modernisation and mechanisation of the existing ones, and reduction of logistics costs through the implementation of increased waterways transport.
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The challenges that exist. |
- A recent study by the Bureau of Research on Industry and Economic Fundamentals (BRIEF) titled ‘Bridging Infrastructural Deficits at Select Trade Ports in India’ observed that seaports displayed specific patterns of issues based on differences in geography, infrastructural capacity, operational aspects, contractual arrangements, and so on.
- For instance, the Haldia Dock Complex in Haldia, West Bengal, being a riverine port, faces the natural challenge of heavy siltation and inadequate dredging capacities. Congestion at the approach roads is a common problem at the Jawaharlal Nehru Port in Maharashtra. Underutilisation of physical infrastructure is extremely prevalent at the Vallarpadam International Container Transhipment Terminal — at the Cochin Port.
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What should be the way ahead? |
- In terms of infrastructure, it is important to maintain draft to serve bigger vessels, ensure mechanisation of ports through introduction of new equipment and procedures, build new facilities, upgrade existing facilities and automate systems/procedures.
- In terms of policy and regulatory reforms, it is important to streamline tariff determination by TAMP along with a provision for periodic revisions, ensure transparent and effective contractual arrangements in PPPs, implement strengthened communication platforms for seamless information flow among stakeholders, strengthen system integration, ensure paperless clearance of procedures and transactions, develop user information portals, and so on.
- Apart from reviving the ports currently operational, these measures, if duly incorporated, promise to sufficiently bolster prospective ventures as the country moves towards an optimistic maritime trade regime.
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