WASHINGTON: The irony about the proposed Enayam major port is that it is being planned when non-major ports are cannibalising major ports in the country. Thanks to the earlier NDA government’s Sagarmala initiative, from a handful of non-major ports handling primarily captive cargo 20 years ago, their number has crossed 200 and share of cargo handling gone up from 10% to 45%.
The plight of major ports is a cause for concern, and it will have to be factored in by the Union government while pursuing the Enayam project. Between 2010-11 and 2014-15, of the 13 major ports in the country , Visakhapatnam port recorded a slide in cargo handling for four successive years. Kolkata, Chennai and Mormugao slid for three years; Haldia, Paradip, Mangalore and JNPT for two years; and Cochin and Kandla for a year. Ennore, Tuticorin and Mumbai were the only ports that recorded a steady growth all through this period.
A combination of factors keeps major ports down, opined Ishwar Achanta, MD of Portman India, a Chennai based port management firm. “Despite surging 20 years into economic liberali sation, our major ports still have inefficiency built into their systems in the form of restrictive practices that have turned out to be destructive ones for their very existence. When a federal set up fixes tariffs, and structures the model concession agreement (MCA) for major ports, it is difficult for them to compete with privately managed non-major ports that have no MCA. Even if a major port management wants to operate at a lower tariff to be competitive in trade, it has to get the consent of the board, which seldom happens. Top management of the major ports always live in fear of getting pulled up by external auditors and central investigative agencies,” he said.
Today, options are plenty for ships and issues like pre-berthing detentions and congestion surcharges have become things of the past. “Berths in every port, whether major or non-major, are freely available,” opined Ashok Thakkar, chairman of the infrastructure committee of FICCI, TN.
In effect, private investors at major ports have a harrowing time. “Even if they are willing to lower the tariffs from what is fixed by the Tariff Authority for Major Ports to attract ships, they cannot expect any discount on the share to be given to the port trust. But at private ports, I can negotiate and get even up to 20% discount on tariff if my volumes are huge,” said Achanta. “India still has not found a happy mix of private investments in a public sector port and government protecting public interest through correct documentation,” he said. The Boston Consultancy Group’s benchmarking system on berthing policy for bulk vessels, which the Union government seeks to follow, has innate flaws. For instance, the group has failed to factor in labour issues that are unique to India. At major ports, stevedores can engage labourers only from unionised dock labour board. Private ports do not have such issues as there are no unions, he added.
Infrastructure bottlenecks and lack of sufficient automation in port handling, especially at gates, are major concerns for cargo handling. Physical verification of documents at gateways delays clearance of trailers. “At Chennai port, even if a CISF officer clears a trailer in 30 seconds at the gate, only 2,800 trailers can pass in 24 hours,” said Thakkar. “Before creating new ports, rail and road infrastructure should be enhanced to handle the cargo that will go into and come out of ports,” said retired Commodore R S Vasan. Only a paradigm shift in the way major ports operate can turn them around, said Achanta.
Responding to charges that major ports are being managed by non-specialists, Union minister of state for road transport, highways and shipping, P Radhakrishnan said, “We now have a maritime university that churns out professionals. If a dedicated cadre like Indian Shipping and Maritime Service under the Indian civil services would provide an answer to the leadership crisis, the government is willing to discuss that.”
