Port development in india

Submitted by:Gautam Soni(18)

Why Port Development

Capacity Required Capacity required in 2007 -600 Million Tonnes(approx.) Total Capacity required by 2011-12 would be 1100 MT Assuming 7.7% CAGR Total Capacity required by 2016-17 would be 2000 MT

 Target The Government of India targets to increasing the cargo handling capacity of major ports by two folds to reach 1.5 billion metric tonnes (MT) by the year 2012. This will be achieved at an investment of around USD 25 billion through public-private partnerships. A Crisil research on Indian ports and maritime transport estimates that ports will grow by 160 per cent over the 201112 period. tonnes by 2011-12.

 Size of the Initiatives With 12 major ports and 187 minor ports, 7,517 km long Indian coastline plays a pivotal role in the maritime transport helping in the international trade. Traffic handled at major ports during April 2008 to January 2009 is recorded to be 436686 units. The ports in India offer tremendous scope for international maritime transport both for passenger and cargo handling.

 Approach Indian Government plans to bring a new orientation to encourage the private sector to come forward in developing port activities and operations. The goal is planned to be achieved through numerous initiatives and policies. Many international port operators are invited to submit competitive bid for BOT terminals on a revenue share basis, which has attracted foreign players, such as Dubai Ports International (Cochin and Vishakhapatnam), Maersk (JNPT, Mumbai) and P & O Ports, (JNPT, Mumbai and Chennai),

Why PPP? Induct Additional Resources Bring in private sector efficiency Client-Port Symbiosis for Port development and diversification Strong Global networking New business opportunities

PPP Framework Private sector participation and Joint Ventures permitted under Major Port Trusts Act 1963 Comprehensive guidelines 1996 Joint Venture Guidelines 1998 Model Bidding Documents 2000

 Extent of PPP Contract A normal PPP conract extent from 30 to 50 years. While the private entrepreneours are expected to bring investment,technology and the required skill set while public sector side provide proper regulation and policy guidelines,providing enough data for evaluation of developers

Lack of support is shown by private sector as for them in this field: Investment is high. The gestation period is high. Delay in land acquisitions and resistance by locals Priority is given to brown field ports above green field ports.

Suggestions
The current contract term of 30-50 years need to revisit the contract agreement for the reason which was not seen at time of bidding. Viability analysis with expected percentage of gross revenue is not caried out by agency.For eg JNPT AND Chennai port Instead of Multiple Agencies like Mumbai port trust,municipline,central and State government there should be a single Agency