Corporatised Ports Can Provide Better Services

Only an independent, profit-making corporate entity can provide modern facilities to expedite operations at each port, Assocated Chembers of Commerce and Industry of India president Shekhar Bajaj said here.

Assocham has suggested the formulation of a package of incentives to Indian ports to enhance their efficiency through commercialisation and creation of fresh capacitybased on projected traffic requirements.

Bajaj said corporatised ports could efficiently regulate investment, execute projects and manage operations with professional competence. "A lacuna at present is that port trust are not allowed to float bonds issues or raise external commercial borrowing.

He also said port capacity needs to be increased substantially in the Ninth Plan period. An additional investment of Rs 17,500 crore is required to increase the capacity of Indian ports in the Ninth Plan. Ports maybe able to generate funds equipvalent to Rs 60 billion. However, the balance amounting to Rs 95 crore has to come from the private sector, the Assocham release said.

 

"Pre-berthing delays and longer turnaround time of ship leads to suboptimal utilisation of port capacity," Bajaj said, adding that this rsult in higher transaction cost fro import as well as export.

"Indian ports continue to show lower productivityin comparison to port in the Asain region in terms of labour and equipment productivity norms," he added.

Indian exporters and forced to pays $80 per conatiner more than their foreign competitors to move their cargo through demostic ports.

"According to the World Bank, the actual cash cost of moving contrainers through Indian ports runs to about $500 per containers," the statement said. Speed money and customs agent charges are higher in India since 23 documents need to be processed to clear import and 118 documents to clear exports.

Bajaj said most Indian ports well ill-equiped to handle foodgrains. The locak of mechanised handling eqipment slows down operations, resulting in delays in the turnaround time of a ship.