Containerisation is a recent phenomenon in India's port sector. As such, the country has a trifling presence in the international scenario. India's most modern port, Jawaharlal Nehru Port Trust, which handled 2.37 million TEUs in 2004-05 does not feature even in the top 30 ports of the world in terms of container port traffic. Even if one takes the container traffic handled by all ports in India, which is around 4.5 million TEUs per year, it is less than what was handled by the Long Beach Port of USA that earned it the 13th rank in world container traffic in 2003.
Despite India's nascence in containerisation, signs of progress are now clearly noticeable, thanks to active participation by international leaders like P&O, Maersk and Dubai Port Authority. Today, private sector container terminal operators handle over 65 per cent of container traffic. As of June 2005, there were 11 projects in various stages of implementation aiming to add over 9 million TEUs of capacity over the next 20 years or so. JNPT's third container terminal, Kandla Port's second container terminal and the Vallarapadam ICTT project are the major projects currently under execution (see table).
India's recent attempts to develop container terminals at major ports on BOT basis with a revenue-sharing agreement between the developer and the port have been generally successful. It is also encouraging to see that the revenue sharing proportion has been steadily rising. For the Kandla Port, the private sector developer, ABG Shipyard, offered a revenue sharing proportion of 48.997 per cent, the highest so far. Kochi Port Trust had received 33.33 per cent from Dubai Ports Authority for the Vallarapadam ICTT, while for JNPT's third container terminal project the developer, a consortium of Maersk and Concor, offered 35.503 per cent.
The biggest impediment to CT projects and also to existing terminals is timely evacuation of containers. In India, container evacuation is primarily done through rail unlike in the West where road transport is the principal mode of evacuation. Container terminal efficiency can improve only when ports can ensure availability of rail corridors and rolling stock. Currently, passenger traffic gets overriding preference over cargo movement including containers.
By this reckoning, the government's proposal of setting up a dedicated rail freight corridor along the Golden Quadrilateral holds promise. The Rs 60,000 crore project, cleared by the Committee on Infrastructure in May 2005, would cover Delhi-Kolkata and Delhi-Mumbai corridors to begin with, and would be expanded to the Mumbai-Chennai and Chennai-Kolkata corridors. The dedicated freight corridor would take five years to complete and would involve development of tracks for 2,000 freight trains.
While India is clearly taking the right steps to bolster its container handling capacity, it is an uphill task to bring it on par with international standards. Japan International Consulting Agency has estimated that Indian container traffic would grow by 14 per cent to reach 10 million TEUs by 2010 and to 17 million TEUs by 2015. Timely implementation of container terminal projects and their successful operation is therefore the key to meet the projected traffic volume.
The next three-four years would be the bellwether for future private sector participation. By then, JNP, Kandla Port and Mumbai Port would have additional terminals, if plans progress as envisaged. If major ports do not match the augmentation of container handling capacity by better evacuation infrastructure, there would be a serious compromise on not only port efficiency but also on private entrepreneurship in future projects.
Major ports should also ensure that pre-project activities like tendering and shortlisting of developers are performed expeditiously. Indian shipping infrastructure is replete with instances of pre-project activities consuming precious years. Mumbai Port Trust's third container terminal, the Vallarpadam ICTT and the Vizhinjam terminal project are outstanding cases in point.
In sum, major ports that plan to develop container terminals on BOT basis through private sector participation must ensure speedy clearances and maximum support in the form of rail connectivity, storage yards etc. Successful precedents of container terminals operating efficiently need to be created. It is this more than the omnipres-ent "in-principle potential" that would inspire private participation and possibly earn the country a mention, if not a respectable place, in world container cargo trade.
Container
Terminal Projects at a Glance
|
|
Port
|
Location
|
Project
|
Cost
|
Capacity*
|
Developers
|
|
|
|
|
(Rs
Cr.)
|
(Mn
TEU)
|
Current Status
|
|
Projects
Under Execution
|
|
JNPT
|
Maharashtra
|
Third
CT
|
1,000
|
1.3
|
Maersk
+ Concor
|
|
|
|
|
|
|
Construction
work commenced in March 2005
|
|
Kandla
|
Gujarat
|
Second
CT
|
200
|
0.4
|
ABG
Shipyard + Voltri Terminals
|
|
|
|
|
|
|
ABG
Shipyard appointed in May 2005
|
|
Vallarpadam**
|
Kerala
|
ICTT
|
2,118
|
3.4
|
Dubai
Ports International + Concor
|
|
|
|
|
|
|
Work
commenced in April 2005
|
|
Projects
in Planning or Nascent Stage
|
|
JNPT
|
Maharashtra
|
Fourth
CT
|
3,500
|
3.0
|
Jawaharlal
Nehru Port Trust
|
|
|
|
|
|
|
Feasibility
report in progress
|
|
Vizhinjam
|
Kerala
|
ICTT
|
4,200
|
4.1
|
Kochi
Port Trust
|
|
|
|
|
|
|
Techno-economic
bids invited
|
|
Hazira
|
Gujarat
|
New
CT
|
|
|
Royal
Dutch/Shell
|
|
|
|
|
|
|
Shell
in talks with Maersk, P&O, Dubai Ports
|
|
Chennai
|
Tamil
Nadu
|
Second
CT
|
490
|
0.6
|
Chennai
Port Trust
|
|
|
|
|
|
|
Global
bids invited in April 2005
|
|
Mumbai
|
Maharashtra
|
Third
CT (Offshore)
|
1,197
|
1.2
|
Mumbai
Port Trust
|
|
|
|
|
|
|
Eleven
bidders shortlisted
|
|
Pipavav
|
Gujarat
|
New
berths at CT
|
|
|
Pipavav
Port Co
|
|
&nb
[18 July 2005]
|
| |
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(c) 2001 Economic Research India Limited
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