HOME > BUSINESS > Indian port capacity in need of expansion – Assocham

Indian port capacity in need of expansion – Assocham

India would need to undertake massive investments and upgrades at its seaports to handle future traffic, a study by Assocham found.

great-eastern-shipping-vessel

Growing at a compounded annual growth rate (CAGR) of over eight per cent, the seaborne trade in India may cross 830 million tonnes (mt) mark by 2016-17, apex industry body ASSOCHAM said today.

“This would require massive investment to the tune of over Rs 17,000 crore as there is a need to augment the port capacity by over 140 mt from the current level of about 690 mt,” according to a study titled ‘Shipping Industry: Today & Tomorrow,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The private sector participation is imperative for such huge investments in the shipping sector,” said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the chamber’s study at a press conference held here in Kochi.

“Lack of level playing field for the private operators, hinterland connectivity, especially lack of co-ordination between road, rail and port authorities and proper risk allocation are certain key issues affecting port development in India,” said Mr Rawat. “These issues must be addressed for enhancing and increasing port capacities and efficiency.”

The government needs to act as a facilitator to create opportunities for attracting fresh investments in the shipping sector, more so as about 41 per cent of India’s fleet of ships belong to the 20 plus age group indicating a slow rate of new fleet addition, highlighted the study prepared by ASSOCHAM Research Bureau.

“This augurs well for the Rs 7,300 crore worth India’s shipbuilding and ship-repair industry as 20 years plus older ships require more frequent and extensive repair and maintanenance,” said Mr Rawat. “However, this makes Indian fleet less competitive as mostly young vessels below 15 years old are often preferred in international trade.”

The drastic decline in share of Indian ships in carriage of overseas trade over the years is a significant concern, he added.

Indian shipping carriage dropped from about 36 per cent to just about eight per cent during the period from 1990-91 and 2009-10, highlighted the ASSOCHAM study.

“This is causing a drain on precious foreign exchange in terms of payment of freight charges and this could instead be used for other high priority imports and scaling up infrastructure facilities,” said Mr Rawat.

India can save upto a whopping Rs 26,000 crore by 2016-17 if we can increase the share of coastal shipping in total traffic carriage thereby reducing the burden on other modes of transport, pointed out the ASSOCHAM study.

There is a need to encourage coastal shipping as a viable mode of bulk freight transportation as it has just about three per cent of share in carrying regional traffic.

According to the ASSOCHAM study, there is a need to improve the ports’ connectivity as Indian ports find it difficult to handle additional traffic due to slow evacuation process.

Follow ULTRA.news
India’s trade gap doubles in May as exports grow fast India's merchandise imports continued to grow at a blazing pace, widening the gap between the foreign exchange that the country earns from its exports and the money that it has to shell out for its imports.Imports for May rose by 33% compared to a year ago, resulting in a do...
Chennai cruise terminal to be ready this month India's first terminal dedicated for cruise ships on its east coast will be ready in Chennai this month, the shipping ministry said.This will make it the fifth such cruise terminal in the country.All four existing cruise terminals are located on India's western coastl...
Industry welcomes move to include made-ups in apparel package SIMA has welcomed the move include made-ups in the apparel packageThe industry has welcomed the move by the government led by Narendra Modi to extend support to the made-ups export industry and said it would help the sector break out of its current slump.The cabinet had ...
Anil Ambani’s Reliance Defence and Engineering to enter the oil rig business Reliance Anil Ambani Group said its unit Reliance Defence and Engineering Ltd partnered with US-based oil rig comopany ALLRIG to provide jack-up rigs, drilling rigs and other floating fixed oil & gas assets in India."The association will be helpful in providing solutions ...
PAPER GOLD: Govt raises Rs 820 cr in fifth tranche of sovereign gold bond scheme The amount realised through the 5th Tranche of Sovereign Gold Bond (SGB) Scheme, is expected to cross Rs. 820 crore, the ministry of finance said.This was mobilised through over 2.00 lakh applications representing around 2.37 tonnes of gold."These numbers are likely to g...
India emerging as alternative to China in electronics manufacturing- study India’s attractiveness for manufacturers is growing due to availability of low-cost labor, said an ASSOCHAM-EY joint study.¨Rising manufacturing costs in China and Taiwan are compelling manufacturers to shift their manufacturing base to alternate markets. In 2014, the average...
Vamaship offers int’l ecommerce shipping of gems & jewelery at Rs 999 Vamaship CEO Bhavik ChinaiVamaship,a company that connects shippers with logistic companies, said it has launched  new service for international e-commerce shipping from Mumbai for the gems and jewellery industry starting from Rs 999 onwards for door-to-door delivery.The...
Non-ferrous metal exports to China falls 36% in June In the midst of debate on the impact of slowdown in the Chinese economy on rest of the world, India’s engineering exports have started witnessing a negative fallout with a drop of 36 per cent in export of non-ferrous metals to China in June, 2015, an analysis by the EEPC India ha...
SCI Q1 profit rises three times The shipping corporation of India(SCI) one of the largest Indian shipping Company, declared its financial results for Q1 ending 30th June 2015 noted a net profit of Rs 163.54 crores as compared to a net profit of 49 crore registered in Q1 ended 30th June 2014.The company had ...
Traders oppose India’s move to curb gold imports again All India Gems and Jewellery Federation (GJF), the largest single trade body in India for the promotion and growth of trade in gems and jewellery across India, has urged the Union Finance Minister Arun Jaitley to avoid re-imposing curbs on gold imports as it could spell doom for ...
$100 oil will keep India’s current account deficit under control – Crisil Research Crisil Research has cut its forecast for current account deficit this financial year to $32 bln, or 1.55 of GDP, from $47 bln, or 2.2% of GDP, due to the sudden fall in oil prices.A country's dealings with the rest of the world is divided into the current account and the capi...
India’s exports, imports starting to pick up pace – Crisil Research India's exports and imports are both starting to show a pick up as economic conditions improve, Crisil Research said.The research agency's comments came after data for August showed that India's trade deficit fell to 4-month low of $10.8 billion due to a 15% y-o-y decline in ...
Great Eastern Shipping to buy a Supramax vessel The Great Eastern Shipping Company Limited said it has signed a contract to buy a Supramax Bulk Carrier of about 52,454 dead weight tonnes.The 2006 built vessel is expected to join the Company’s fleet in September-October 2014, it said.The Company’s current fleet sta...
Mercator gets shareholder nod for $15 mln FCCB Shipping company Mercator Ltd said it has got shareholder approval to raise $15 mln in foreign currency loans.The company said the approval was given through postal ballot. The debt would be raised in the form of foreign currency convertible bonds or FCCBs. The FCCBs will hav...