Union minister for shipping G K Vasan has called for private sector investments in capacity augmentation and efficiency improvement of ports and shipping services in the country. He said, the 17 rail connectivity projects to the ports sanctioned in the Railway Budget would help improve the performance of these ports.
Addressing the annual general meeting and conference on ‘Thriving In An Imbalanced World’ organised by the Confederation of Indian Industry (CII)’s southern region, Vasan said, “From the perspective of the port sector, the increase in foreign trade has led to enormous demand for new ports and existing ports’ infrastructure.”
He said, increased investment from the private sector would be required, particularly for mechanisation of cargo handling, deepening of draft at the ports, strengthening port connectivity by building road and rail links, and inland waterway connectivity, and technology upgrade and automation.
The 17 rail connectivity projects announced in the Railway Budget, if executed with a sense of urgency, could result in a huge boost to India’s present growth rate. He also said, the extension of Rs 5,000-crore tax-free bonds for the ports sector for one more year would help develop the sector.
With almost 95 per cent by volume and 70 per cent by value of India’s overseas trade effected through the sea route, the maritime sector plays a crucial role in facilitating India’s international trade.
At present, around 12 major ports handle 64 per cent of the sea-borne traffic, while the share of non-major ports has increased from 7 per cent in 1990-91 to around 36 per cent in 2010-11. “Cargo handling is projected to increase significantly at all the ports during the 12th Plan,” he said.
Delivering his keynote address, B Muthuraman, president of CII, and vice-chairman, Tata Steel, said the market stability and strength witnessed in the 20th century would not be there in the 21st century, as imbalance and volatility were increasing.
The issue of unwillingness of the western world to shift power to emerging economies, strengthening of currency in emerging countries compared to weakening western world currency and increasing focus on national and regional economies rather than global economic approach, would increase the volatility and imbalance in future, he added.