Indian ports close to capacity
India's ports could soon run out of capacity, a leading global financial consultancy has warned.
An Ernst & Young report pegged current capacity utilisation at Indian ports at over 90%, which had led to “immense congestion at the ports and delays in cargo handling”.
Entitled 'Transforming Indian ports into world class facilities', the report highlighted a 12% year-on-year jump in cargo throughput at Indian ports for the financial year 2007-2008, and said the increases were putting pressure on port performance and productivity.
Ernst & Young recommended “massive infrastructure development to handle the ever growing traffic”.
The report outlined three key measures for Indian ports to achieve world-class status -- focused infrastructure development along related logistics chains, emphasis on trade facilitation/value-added services, and increasing competition through privatisation.
“India needs to have full-fledged information technology systems like Portnet and Tradenet of Singapore in place”, Ernst & Young associate director Rajesh Samson was quoted as saying.
“It should encourage competition and devise a comprehensive multi-modal transport policy to develop its ports into world class facilities."
The Ernst & Young report was released just as the the Indian government announced new plans to double cargo-handling capacity at the country's ports to 1.5 billion metric tonnes (mt) per by 2012.
The investments, through public-private partnerships, would total some $25 billion, said APVN Sharma, Secretary for the Department of Shipping in the Ministry of Shipping, Road Transport and Highways.
Sharma highlighted the government's aim of attracting more private-sector involvement in infrastructure projects, including investment from global companies.
“There is tremendous room for the private sector to participate,” Sharma said.
Industry players, however, have reacted with scepticism, with many who have pursued projects at Indian ports complaining of red tape and inefficiencies.
An Ernst & Young report pegged current capacity utilisation at Indian ports at over 90%, which had led to “immense congestion at the ports and delays in cargo handling”.
Entitled 'Transforming Indian ports into world class facilities', the report highlighted a 12% year-on-year jump in cargo throughput at Indian ports for the financial year 2007-2008, and said the increases were putting pressure on port performance and productivity.
Ernst & Young recommended “massive infrastructure development to handle the ever growing traffic”.
The report outlined three key measures for Indian ports to achieve world-class status -- focused infrastructure development along related logistics chains, emphasis on trade facilitation/value-added services, and increasing competition through privatisation.
“India needs to have full-fledged information technology systems like Portnet and Tradenet of Singapore in place”, Ernst & Young associate director Rajesh Samson was quoted as saying.
“It should encourage competition and devise a comprehensive multi-modal transport policy to develop its ports into world class facilities."
The Ernst & Young report was released just as the the Indian government announced new plans to double cargo-handling capacity at the country's ports to 1.5 billion metric tonnes (mt) per by 2012.
The investments, through public-private partnerships, would total some $25 billion, said APVN Sharma, Secretary for the Department of Shipping in the Ministry of Shipping, Road Transport and Highways.
Sharma highlighted the government's aim of attracting more private-sector involvement in infrastructure projects, including investment from global companies.
“There is tremendous room for the private sector to participate,” Sharma said.
Industry players, however, have reacted with scepticism, with many who have pursued projects at Indian ports complaining of red tape and inefficiencies.
Cowan Thant Zin | Tue Apr 22 03:52 GMT 2008