The major factors and problems leading to low effiency of Indian ports are:
- Operational problems due to frequent breakdowns and lack of modern equipments.
- Inadequate dredging and container handling facilities.
- Inefficient and non-optimal deployment of port equipments.
- Lack of co-ordination in the entire logistic chain.
- Lack of proper roads connecting the hinterland for speedy movement of cargo.
- Frequent labour unrest.
- Many major ports are affected by silting and requires frequent dredging.
- Except for Bombay and Madras, other ports do not have the facility of night navigation and pilots. This hampers working round the clock.
Some privatization has been in practice in India’s customs broker, forwarding agents, labour contractors and stevedores have been performed by private firms and individuals since beginning of foreign trade in India and remain so today.
Efforts for attracting Private Sector Participation in major ports continued during the year. At present, 36 private sector/captive port projects involving capacity addition of about 137 MTPA and an investment of about Rs.9756 crores are at various stages of evaluation and implementation. Out of these, 13 projects with capacity addition of about 47.40 MTPA involving an investment of about Rs.2597 crores have been operationalised. The projects under implementation include the following two major projects which were approved and for which License Agreements were signed during 2004-05:
Redevelopment of Bulk Terminal into Container Terminal at Jawaharlal Nehru Port License Agreement between Jawaharlal Nehru Port and Gateway Terminals India Pvt. Ltd., a company formed by Maersk A/s-CONCOR consortium was signed on 10th August, 2004 for development, management and operation of the third container terminal at the port on Build Operational Transfer (BOT) basis by converting their existing bulk terminal. On completion, the terminal will have facilities for handling 1.3 million TEUs of container cargo per annum. Estimated investment in the project is Rs.900 crores. Work is in progress for construction of the terminal.
Development and Operation of International Container Transshipment
Terminal (ICTT) Project at Cochin Port - License Agreement between
Cochin Port Trust and India Gateway Terminal Private Limited,
the 100 percent subsidiary of Dubai Ports International, Dubai,
UAE (DPI) was signed on 31st January, 2005 for time bound implementation
of the ICTT project. Under the agreement, the private operator
will initially take over the existing Rajiv Gandhi Container
Terminal at the port for further development and operation till
ICTT becomes operational. The Port Trust will ensure provision
of common user infrastructure facilities namely, rail and road
connectivity and adequate depth in the navigational channels
for the terminals. On completion of the ICTT project, the terminal
will have facilities to handle 3 million TEUs per annum of container
cargo. The development of ICTT will fulfill India’s long
felt need for creating port facilities for transshipping of
cargo on our coast and also tapping the potential for such transshipment
in this region. Estimated investment in the project is Rs. 2118
crores.