The State of India's Port Sector

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The State of India's Port Sector Powered By Docstoc
					   Contemporary Trends in
Infrastructure Development in
             India
        Dr. Douglas Hill
       University of Otago
    Aims of National Maritime Development Policy

•    Increase capacity of Ports (increase 528 million tonnes in next
     ten years)

•    Port connectivity with hinterlands via link with highways, rail and
     inland waterways

•    Increase domestic share of shipping

•    Increase significance of Inland waterways (especially NW-1,
     NW-2 and NW-3)

•    Sethusamudran canal development
              The State of India’s Port Sector

•   Over 90 per cent of volume and 70 per cent value of India’s trade
    through maritime transport

•   12 Major Ports - handling 75 per cent of all traffic (run by Central Govt.)

•   185 minor intermediate ports (run by State govt. or Private sector) only
    1/3 handle cargo but growing quickly.

•   POL 35.5%; Iron Ore 17%; Coal 14%; Container Traffic 15.5%;
    Fertiliser 2%; Miscellaneous Cargo 16%

•   Biggest growth in container trade: fourfold increase 1994-2004


•   Attempts to shift to Landlord model only a partial success
         Problems and Bottlenecks

•Poor connectivity to hinterland (road, rail and
inland water)
•Draft problems (eg Kolkata,Visakhapatnam,
Kandla)
•Congestion in approach to port (eg Paradip)
•Lack of adequate or appropriate facilities (eg
Mormugao, Kochi);
•Labour Disputes (eg Chennai);
•Mafia problems (JNPT)
•High turn around time (eg Kolkata)
                         Aims of NMDP

•   228 projects: to be implemented in two stages

•   Public-Private Partnerships emphasised: public sector for common use
    and private sector for commercial use

•   NMDP outlay: Rs. 60 339 crore = Rs. 40 000 for ports and Rs. 20 000
    for Inland Waterways and Shipping

•   Private sector contribution: Rs. 39 238 crore

•   Budgetary support Rs. 11, 445 crore

•   Port Trust’s internal resources: Rs. 5 078 crore

•   Rs. 4575.65 crore rail and road connectivity
Proposed investment and capacity
Intermodal connections
                             Kolkata

•   An old port whose significance has waned in post-Independence
    period

•   Operationally divided into two domains: Kolkata and Haldia

•   Kolkata located 221kms from Sandheads, 148 by river

•   Frequent draft problems because only 6-6.5 metres

•   More traffic now directed to Haldia

•   Dock Labour Board supported by leftist unions have won good
    conditions for dock workers but now ageing workforce
               Revenue Situation of KOPT

•   KoPT currently owns 3326 acres of land in Kolkata, Howrah and
    Budge Budge apart from its land in Haldia

•   Until recently KoPT gained only Rs. 18 crore in revenue from
    arrangement, now Rs. 55 crore

•   Outstanding dues of Rs. 840 crore (Rs. 741 crore Public (Govt
    Depts and PSUs) and Rs. 89 crore private sector

•   KoPT has now launched litigation against 150 cases
    (approximately 10 per cent of total)

•   Reduce period of new leases from 30-90 years to 15 years with
    possible 15 year extension
                   Labour Rationalisation

•   Labour rationalisation attempted (Reduce from 10,000 plus to
    2500)
•   Pension burden and VRS: KoPT 32 000 pensioners +1000
    every year

•   Leading to increased casualisation, criminalisation of contracting
    and reduction in Housing and medical benefits

•   Destruction of Workers colony

•   Unions in a paradoxical situation (to support or not?)
                   Kolkata and the NMDP

•   National Maritime Development Project commits to 4723 crore
    to Kolkata

•   Development of cargo handling at Saugar Island: virtual jetty,
    breakwater (2465 crore)

•   Transloading dry bulk cargo and installation of floating terminal
    container at Sandheads

•   Gentrification and redevelopment of Kolkata docks and
    waterfront:
Gentrification and Redevelopment under NMDP

•   Development of cruise ship facilities
•   Ship repair and ship breaking facilities
•   Inland Water Terminals (100 crore);
•   Development of Convention Centre, Multiplexes, Shopping Mall,
    Parking Yards, Service Hubs and Port Uses complex (100
    crore)
•   Development of Industrial township/Commercial Centre (500
    crore)
•   Riverfront and existing ghat at hooghly redevelopment (60
    crore)
                            Conclusions

•   Sector is growing very quickly but extremely unevenly

•   Increased need to concentrate on multi-modalism to integrate
    hinterland

•   Difficulty in attracting FDI to older ports

•   Rise of Minor Ports needs to be accompanied by attention to the
    regulatory environment

•   Previous employment conditions likely to be eroded

•   Increased transformation of old docklands