The prime minister recently held a meeting with the ministers regarding a long-term vision. What’s on the agenda on the infrastructure development front?
Infrastructure creation is definitely a key focus. The vision of making India a developed and self-dependent country by 2047 is a priority which Prime Minister Narendra Modi has emphasised. If large projects such as Bharatmala and Sagarmala were not visualised, India would not have progressed at the pace it did. Kartavya Kal, the next 25 years till 2047, will see improvement in connectivity and communication.The PM has said there can be no transformation without transportation. People in Indian villages will get better prices for their produce as they get access to markets.
There has been a significant improvement in port parameters such as port efficiency, productivity, and performance in the past nine years. The total cargo handling capacity in major ports has increased by 86% from 871.52 mtpa in 2014-15 to 1617 mtpa in 2022-23. Policy reforms have also been successfully implemented to empower major port authorities.
This should be looked at considering 60 years of misgovernance of the Congress-led governments, against nine years of breakneck development under the present regime.
India’s container turnaround time is 0.9 days which is better than Singapore (1 day), UAE (1.1 days), Germany (1.3 days), USA (1.5 days), Australia (1.7 days), Russia (1.8days) and South Africa (2.8 days), according to the Logistic Performance Index Report-2023 published by World Bank,
The average Container dwell time of India is less than 3 days which is better than UAE and South Africa – 4 Days, USA – 7 Days, and Germany – 10 Days.
What steps are being considered to encourage shipping lines to prefer Indian ports?
We need to enter strategic alliances with major shipping lines to set up their dedicated terminals in Indian ports. This would ensure that their vessels call at Indian ports, bringing more cargo and business. It is also required to increase gateway and transhipment cargo at Indian ports, minimise turnaround time, rationalizing vessels, and cargo related charges. Value-added services such as bunkering, container repair, vessel inspection and repairs can also be developed at Indian ports.
What is the status of port infrastructure upgradation?
Multiple ports are undergoing an uplift. Development of Vadhavan port with cargo handling capacity of over 300 mtpa is under pipeline. This deep draft port in Maharashtra is expected to add container handling capacity of more than 23 million twenty feet equivalent units (TEUs) by 2040, placing India on the global map of top 10 container ports.
Major ports of Deendayal and Paradip would also be developed as mega ports having cargo handling capacity of more than 300 mtpa by 2027.
Is there a need for government intervention to bring the ship recycling hubs of Alang back into prominence?
India was the leader in ship recycling a decade ago. However, due to various factors, both domestic and international, ship recycling volume in India has been dwindling and today we are globally at the third position. The government is keen to take remedial steps to bring back the ship recycling industry in India at the top position. These interventions include improving road connectivity from Alang shipyard to Trapaj village. More international partnerships, tax and customs reforms are also planned to revive the sector.
Terminal leases signed in early 2000s are due for an extension this decade. What is the government’s stance on renewal?
Terminals in major ports are offered through public private partnership mode based on Model Concession Agreement. The first such MCA came into being in 2008, modified in 2018 and recently in November, 2021. Terminals operated by private investors prior to 2008 were governed by the agreements signed between the then port trusts and the private investors. Once the period of agreement in such cases gets over, the existing operators can continue to operate if they choose to participate in the bidding process and turn out to be successful bidders. A well-defined process is now available in the Model Concession Agreement, 2021, which also provides for extension through transparent bidding process.
