MUMBAI: The Indian government has announced it is considering the establishment of a number of small ports, private ports for coastal shipping, taking another step toward improving supply chain services that have taken a hit in recent years amid port infrastructure bottlenecks and growing cargo volumes.
In a policy document released last week, the Ministry of Shipping said it is weighing a plan to build a clutch of new “low-cost, non-major” ports as part of its much-publicized “sagar mala” project designed to upgrade port connectivity systems.
The ministry said that low-cost, non-major, or private, ports could be established to cater to coastal traffic exclusively and cited the U.K. and Japan as models in its report titled “Vision for Coastal Shipping.”The ministry said long wait times at major ports are hurting vessel productivity and that faster turn times are imperative if the government intends to promote coastal shipping as an alternative to other inland modes of transport.
“It is estimated that coastal vessels in India spend about 70 percent of their total time in ports and only 30 percent of their time in actual voyage. Such delays render coastal shipping uncompetitive against other modes of transport,” the ministry said.
The ministry also said about 75 percent of the country’s coastal cargo is currently handled at major public ports, adding to landside congestion and delays that have lately produced a wave of ocean carrier surcharges for shippers and significant traffic diversions to minor, private cargo terminals.
The new policy is the latest in a series of schemes that the Modi government has implemented in the past few months to encourage shippers to drive up their coastal and short-sea presence.
Incentives include allowing a green channel facility for the clearance of coastal cargo at major ports, priority berthing of coastal ships at major ports and a special state-aid program in the form of grants for the construction of new infrastructure suitable for handling coastal vessels at major ports.
The government has earmarked $105 million for the first phase of infrastructure development under its sagar mala project.
Shipping activity at Port Qasim on February 11
KARACHI: Three ships namely, Glen Canyon, Al-Salam- II and TSM Pollux carrying Containers, Gas oil and Palm oil were arranged...
