In a way, it is reassuring that India?s maritime potential is finally being discussed. As pointed out in my earlier article (?Southern sea loop comfort?, May 2), sea cargo is an excellent low-cost solution to India?s overland transport jumble, assuming the Sethu Samundram project goes ahead. Varied voices were heard at a recent Ficci conference on maritime issues in Mumbai.
Politicians, it seems, are still making up their minds on whether development is good for them or not, never mind the nation. However, since they have to carry the electorate with them, they spy employment generation possibilities for locals in port projects, and with luck, this could trump other considerations. Bureaucrats, on the other hand, claim to be facing the brunt of resistance to development. Everyone else, however, sees them as the main resistance to development. It is time that port development was given over to those with the money and technology to do it. Social and environmental concerns will be addressed better that way.
Shipyards are important. Some 84% of shipyard activity in China, which has over 3,000 ports, is for coastal and inland shipping. India must replicate this model. Goa is an example where the inland shipping sector emerged without any government interference, and there are more small shipyards in Goa than anywhere else in India now. Yes, Gujarat is set to overtake Goa. Shipbuilding and repair are labour-intensive industries, and lack of infrastructure is holding them back. With more ports, we need more shipyards.
Shortage of trained manpower is a worldwide shipping constraint. But India?s coastal regions are not exactly underpopulated, and minimal training can relieve the immediate manpower crunch. Chinese merchant ships have taken over the world with often just one English speaking person on board. Moreover, most of our new seafarers will work in the near waters along the coast, even if some go forth and become the world?s best international seafarers. My seafaring experience has proved invaluable to me in multiple ways, and thousands of others should have such career opportunities. The shipping industry, moreover, should train its own people, just as the software industry does.
If India becomes a major centre for chartering, brokerage, ship-breaking and so on, as is highly possible, demand for specialised finance and legal services will soar. Vast volumes of paperwork accompany such commercial activity. Some of the basics are in place already. Financing a port in India is a win-win deal for any foreign investor, with FDI issues having been reasonably well resolved. There?s domestic funding, too.
Trade inertia could prove trickier. The domestic trade is quite content with the existing system of high-cost, low-efficiency cargo transport. But those who want to see lower wastage, higher efficiency, faster growth and a more dynamic economy are also from the same trade. The latter, in fact, are growing louder than the former. There?s a globally-exposed generation that is demanding world-class port infrastructure and sensible freight options. This new youthful restlessness to overcome maritime inertia will prove to be the prime motivator. In the past, those groaning the loudest about bad infrastructure were the very forces posing impediments to progress. This seems to be changing.
Indian Railways are waking up to competition from sea routes. Roads remain entangled in Centre-State googlies. If modern ports are built, the resultant reduction in dependence on rail and road networks will be a significant boost for the Indian economy. In other countries, ports themselves build access road and rail links, and this should happen here too.
The story for the moment is the accelerating pace of seaport activity along the coasts of Gujarat, Andhra Pradesh and even Tamil Nadu. There?s no reason why the entire coastline should not turn active. Sea transportation is an important element of the India?s economic emergence. No time should be lost muddling our way towards the future.
(Concluded)
Veeresh Malik is an ex-seafarer, with interests in shipping and technology. He is founder of Pacific Shipping and director of Infonox. These are his personal views
