Govt to focus on improving efficiency of major ports

Major ports in the country have revered a declining trend in cargo handling and have shown some improvement in their operational efficiency, minister of shipping and road transport Nitin Gadkari said, adding that the government is focused on modernisation of major ports.

While the government will change existing laws governing ports to make them more profitable and efficient, the minister stopped short of announcing any plans to corporatise ports in order to improve efficiency.

He said with new initiatives, these state-run ports have recorded improvements in performance with the volume of cargo handled increasing by 4.6 per cent and revenue increasing by 8.7 per cent in 2015.

Addressing a press conference in New Delhi today, Gadkari said profit margins of major ports had declined from 43 per cent to 28 per cent between 2008 and 2014 while their market share during the period declined from 72 per cent to 57 per cent., underlining that the development of ports is important for increasing the GDP of the country.

In order to improve efficiency of major ports, the minister said, the government has delegated more powers to port managements.

Also, he said, the government has carried out capital dredging to 18 meters through PPP mode as in the case of Mormugao Port, besides introducing a new scheme to assist ports to mitigate oil pollution and a scheme for setting up coastal berths, passenger jetties etc.

The government has established a new company, Indian Port Rail Corporation, to focus on last mile connectivity, and a new company India Ports Global to take up projects abroad.

Under the Sagarmala project, the government proposes to promote port-led development, equipments and technology upgradation, mechanisation and initiatives for large vessel handling.

Besides, the minister said major ports will generate 200MW of green power which include 150MW solar power and 50 MW wind energy.

He emphasised the need for port sector in India to adopt best international practices and said the governbment's priorities include treatment of waste water at ports, use of bio-diesel to reduce air pollution and opening of modern hospitals and medical facilities at ports.

Earlier speaking on the occasion, secretary, shipping, Rajiv Kumar, said as the government is promoting coastal and inland waterways trade, the efficiency of ports has great bearing on cost of transportation.