30 new ports may come up along Guj coast: Assocham

Gujarat government's proposed policy to facilitate landlocked states set up ports along its long coastline is likely to see development of 30 new ports over the next five years, a study by Associated Chambers of Commerce and Industry of India (Assocham) said.

The recent study titled 'India's Ports, Shipping & Maritime Logistics' by Assocham also recommended to other coastline states to adopt a strategy similar to that of Gujarat government for the development of the ports sector.

According to the study, there exists scope for development of about 30 new ports along the 1600 km Gujarat coast, not only by the land locked states of North and Central India, but also by the private enterprises from these regions.

"The development of a full fledged port initially requires an investment of about Rs 3,000 crore. Therefore, Gujarat would see an investment of nearly Rs 90,000 crore in the coming five years," the study said.

"This investment would be supplemented by matching investments in the development of infrastructure in both Gujarat and land locked states," it added.

The study also pointed out increase in employment opportunities following the development of ports in Gujarat.

Development of these ports along Gujarat coastline could see generation of 60,000 new jobs through direct and indirect employment in the ports and logistics, it added.

The Gujarat government has proposed policy to facilitate landlocked states of Northern and Central regions like Delhi, Punjab, Haryana, Himachal Pradesh,Jammu & Kashmir, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Chhattisgarh and Rajasthan to develop ports along its coastline.

Assocham's study also highlighted presence of number of capacity constraints in the ports sector which include inadequate draft availability, low level of mechanisation of operations, usage of outdated and inadequate cargo handling equipment and poor connectivity with hinterland that were affecting the functioning of ports.

Involvement of multiple agencies and complex administrative procedures were hampering India's overseas trade, the study said, adding that there was a need for revamping of port management system in the country.

Assocham Secretary General, D S Rawat said the increase in integration of Indian economy with the rest of the world has created higher demand for port services.

The study by the chamber body also suggested a few policy measures for development of Port sector which include demand for single body for comprehensive development of the sector, restriction on role of port authority only till implementation of policies, setting up of regulatory body for dispute resolution, performance standards and consumer protection and addressing the issue of taxation in order to increase capacity in shipping.