To give a push to the much-needed infrastructure expansion at the 12 major ports, which handle about 75% of the country?s maritime cargo, the ministry of shipping has identified 21 expansion projects on public-private partnership (PPP) basis at a total investment of around Rs 16,000 crore.
These projects are scheduled to be awarded in phases by March next year and would help in the much-needed capacity expansion of the ports. The proposed expansion will reduce sea freight of iron ore and would make Indian iron ore exports more competitive in the global markets. This will also boost industrial activities in the hinterland of the ports.
Sharing the government?s plans, Rakesh Srivastava, joint secretary (Ports), ministry of shipping, says the capacity augmentation projects will involve mechanisation of the berths, construction of new berths, development of bunkering terminals and cruise terminals. ?Out of the new projects that have been identified, the bidding process of 16 projects is currently underway and requests for qualification have been issued. These projects will be awarded by the end of this fiscal. Going forward, we are also in the process of identifying another 10 projects to be developed during 2010-11,? he says.
The maritime infrastructure initiative will see major investment at Jawaharlal Nehru Port Trust (JNPT) in Mumbai. Almost half of the planned investment of Rs 16,000 crore will be pumped at JNPT. The port will see construction of container terminal at an investment of Rs 6,700 crore and development of standalone container handling facility at a cost of Rs 600 crore.
The ministry as a part of its 100-day plan may award six projects worth Rs 3,319 crore on the PPP basis. The plan envisages awarding of contract for development of deep drought iron ore berth at Paradip port at a cost of Rs 591.35 crore for which the contract has already been signed with a consortium of Gammon Infrastructure, Minerals and Metals Trading Corporation and Nobel Group.
In addition to this, Rs 479-crore deep drought coal berth at Paradip port, development of container terminal at Tuticorin port at an investment of Rs 312 crore, coal terminal at Mormugao port at Rs 252.44 crore, and mechanised iron ore handling facility at New Mangalore Port, and a container terminal at Ennore port at an investment of Rs 1,407 crore will be awarded within 100 days. The projects taken together will add capacity of 31.23 million tonnes.
With port development envisaged on the PPP platform, it means a mega opportunity for companies in the sector. Out of the total planned investment of Rs 57,452 crore, investment via PPP mode is estimated at around Rs 38,079 crore towards upgrade or construction of berths, deepening of channels and procurement or replacement of equipments.
Parvez Umrigar, MD, Gammon India, is indeed upbeat with the PPP. ?The ministry has ambitious plans for port development on the PPP basis, which will provide good opportunities for the private sector. We are definitely looking at some of the projects to bid out in the next few months,? he says, adding that they would start the construction of new deep drought iron ore berth at Paradip soon. ?We will complete the deep drought iron ore berth project at Paradip port in the next three years. The financial closure for the project will be achieved in the next four to five months.?
Srivastava of ministry of shipping is optimistic that the construction of new deep drought iron ore berth will be able to handle vessels up to 1,25,000 dead weight tonnage. ?Since bigger ships will be able to come, there will be lesser congestion and turnaround time will be faster.?
The Planning Commission estimates that the total traffic at ports by 2011-12 would be at 708 MMT, a significant rise from 424 MMT in 2005-06. Considering the need to provide for buffer capacity and seasonal variations, a capacity of 1002 MMT would be required at the major ports by 2011-12. Experts feel that the expansion plans would help to meet the future needs.
The government is also planning to set up a regulatory body to oversee the functioning at the major ports. It has drafted the Major Ports Regulatory Authority Act, 2009, which will consist of a chairman and four members. The authority will fix the rates from time to time and will lay down the performance norms and standards of quality, continuity and reliability of service.