WASHINGTON: With increased focus on mechanisation and efficiency, private-owned non-major ports in the country are eating into the market share of government-owned major ports. In the last three years, the share of major ports in total cargo has declined continuously, while that of non-major ports has been increasing. As a result, capacity utilisation of non-major ports was better than their counterparts.
Experts said frustrated with growing delays at some of the major ports, shippers and ocean carriers were looking for alternative port options. Data show non-major ports increased their share in country’s total seaborne trade to 44.75 per cent in 2014-15, from 42.90 per cent in the previous year. Also, cargo volumes reached 470.87 million tonne (mt), up from 417.22 mt in 2013-14. That translates into a 12.85 per cent growth in 2014-15 over the previous financial year.
On the other hand, the overall market share of major public ports declined from 57.10 per cent in 2013-14 to 55.25 per cent in 2014-15. Cargo volumes stood at 581.34 mt in 2014-15 compared with 555.49 mt in the previous year, a growth of 4.7 per cent. India has 12 publicly-owned major ports.
Speaking to Business Standard, K Ravichandran, senior vice-president and co-head, corporate ratings, Icra, said, “Non-major ports have been more successful in attracting cargo as they are perceived to be more business-oriented, customer-friendly and more efficient. This has been largely due to lower levels of regulatory and financial controls compared with major ports.”
