Deloitte calls for integrated approach to develop ports

Says support infrastructure like road and rail connectivity also needs to be focused

With award of new port projects gaining pace, consultancy firm Deloitte today called for an urgent need on a holistic approach while developing such terminals, saying support infrastructure like road and rail connectivity also needs to be focused.

"Time has also come that an integrated approach is adopted to plan investments in the sector," it said in a report released today.

Thought it acknowledges that greater private participation has led to rapid port capacity expansion, it pointed out that necessary evacuation infrastructure like roads and railheads needs to be built to transfer goods between the hinterland and ports.

It can be noted that for the first time in many years, the government achieved the project award target for the last fiscal by giving 30 projects entailing an investment of over Rs 21,000 crore, which will add 217 million tonne per annum to the capacity.

Exporters and importers complain about the lack of necessary infrastructure both on the connectivity front as well as bottlenecks in the customs clearance, which affects timely deliveries and leads to losses in case of perishable items.

Commenting on the setbacks faced by port projects due to necessary clearances on the security and environmental fronts, the report said steps must be taken to address any major project viability risks, before they begin to start impacting the investments in the project and the sentiment.

It said though the public-private partnership frameworks have matured in the case of ports, but it was not the case with the road sector as recently winning bidders have been demanding renegotiation of certain provisions under the concession agreements to make the project viable.