Port trade in India is at an all-time high and rising steadily. Water, as a way of transport and everything that forms part of its ecosystem, has long been an underutilised and overlooked segment in India. Realms of newsprint and research bear testimony to the fact that Indian waterways have not been optimised.
At present, ports in India handle more than 90 per cent of India’s total exim trade volume but the current proportion of merchandise trade in GDP is only 42 per cent whereas in Germany and European Union, it is 75 per cent and 70 per cent respectively. Then again, waterways have a meagre share of 0.3 per cent in India as compared to 42 per cent in the Netherlands, 16 per cent in China and over 7 per cent in the US. This is a great economic opportunity loss to India.
Amid this reality concerning Indian maritime, another reality worth cheering about is the government’s ‘in-principle’ approval for the concept and institutional framework of Sagarmala project. As we all know, the prime objective of this project is to promote port-led direct and indirect development and to provide infrastructure for transportation of goods to and from ports quickly, efficiently and cost effectively.
Thus this project aims to develop access to new development regions with intermodal solutions and promotion of the optimum modal split and enhanced connectivity with the main economic centres and beyond through expansion of rail, inland water, coastal and road services.
At least 12 smart cities and several coastal economic zones will come up under the ambitious Sagarmala project, lifting India’s GDP growth by 2 per cent. Besides enhancing port capacity, the Sagarmala project will boost export-import as well as domestic trade.
Port trade in India is at an all-time high and increasing by the day. So there is a constant need for capacity enhancement through advanced technology. More important, the inland waterways system needs to be addressed more aggressively. Evacuation by sea will bring in efficiency and reduce congestion.
Talking about the positives that are at play in Indian maritime, DP World Nhava Sheva also known as Nhava Sheva International Container Terminal (NSICT) was the first privatisation in India forging a strong PPP model, which has changed the way container trade is conducted in India.
It has ushered in a major transformation and propelled the growth of container trade in India.
Through the first decade of the new century India has seen a tremendous rise in containerised cargo movement and increased the demand for container terminals.
The growth in containerised cargo was also mirrored in the meteoric rise in India’s GDP in those years, which has been attributed in better capabilities of exim trade. Riding the growth, the mantra has been simple for DP World, provide customer delight and it is manifested in the long association that NSICT has forged with its customers.
If you take note of the Indian expertise in handling containers, at DP World Nhava Sheva there is a constant zeal to excel in addressing customer needs by showing them the true potential of the terminal through efficient state-of-the art infrastructure.
For great world-class trade and efficiency, it is imperative to have a focus on infrastructure development, optimisation in the use of existing and future transport assets and development of new lines/linkages for transport (including roads, rail, inland waterways and coastal routes). This will result in improving the hinterland connectivity for ease of cargo movement.
To facilitate development, it is important to have a collaborative approach, it is time that India looks up in great detail at setting up of more logistics hubs, and establishment of industries and manufacturing clusters to be served by ports in exim and domestic trade.
Trade is a very big part of the Indian economy and it is an integral part of the country’s history. With the privatisation of the container terminals there has been transfer of skills and technology that has led to increase in productivity.
Though there has been great development over the past two decades, it is still not keeping pace with the demand. There is a need for more ports and better infrastructure to be underway to sustain the growth momentum required for a burgeoning economy.
