Port Con­ges­tions

Cargo Talk - - Cover Story -

In­dian ports are the gate­ways to In­dia’s in­ter­na­tional trade, and are han­dling over 90 per cent of for­eign trade. Though the bulk of In­dian trade is car­ried by sea routes, the ex­ist­ing port in­fra­struc­ture is in­suf­fi­cient to han­dle trade flows ef­fec­tively. A Deloitte study un­veiled that the cur­rent ca­pac­ity at ma­jor ports is over­stretched. The ca­pac­ity util­i­sa­tion at ma­jor ports has been in­creas­ing over the years ow­ing to grow­ing trade. The ca­pac­ity uti­liza­tion now is about 100 per cent sig­ni­fy­ing in­creas­ing con­ges­tion in all the ma­jor ports.

Another ma­jor chal­lenge faced by In­dian ship­ping in­dus­try is the rel­a­tively low hin­ter­land con­nec­tiv­ity with the ports. In­dian ports are find­ing it dif­fi­cult to han­dle ad­di­tional traf­fic be­cause of slow evac­u­a­tion from ports. There­fore, it is im­por­tant that con­nec­tiv­ity of ma­jor ports with the hin­ter­land is aug­mented not only to en­sure smooth flow of traf­fic at the present level but also to meet the re­quire­ments of pro­jected in­crease in traf­fic.

In­dian-bound con­tainer traf­fic in neigh­bour­ing ports out­side In­dia. This in­creases the trans­porta­tion costs for In­dian traders. With a view to over­com­ing this chal­lenge, con­certed mea­sures to deepen chan­nels in var­i­ous ma­jor ports have been taken. com­pa­nies will lose sig­nif­i­cant mar­ket share hence their con­cerns must be heard. re­mark­ably, re­cently the Gov­ern­ment of In­dia re­laxed the Cab­o­tage Law to some ex­tent by al­low­ing costal ship­ping from DP World’s In­ter­na­tional Con­tainer Trans­ship­ment Ter­mi­nal in Cochin.

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