 "Mechanisation perks up non-major ports")
With increased focus on mechanisation and efficiency, private-owned non-major ports in the country are eating into the market share of government-owned major ports. In the last three years, the share of major ports in total cargo has declined continuously, while that of non-major ports has been increasing. As a result, capacity utilisation of non-major ports was better than their counterparts.
Experts said frustrated with growing delays at some of the major ports, shippers and ocean carriers were looking for alternative port options. Data show non-major ports increased their share in country’s total seaborne trade to 44.75 per cent in 2014-15, from 42.90 per cent in the previous year. Also, cargo volumes reached 470.87 million tonne (mt), up from 417.22 mt in 2013-14. That translates into a 12.85 per cent growth in 2014-15 over the previous financial year.
On the other hand, the overall market share of major public ports declined from 57.10 per cent in 2013-14 to 55.25 per cent in 2014-15. Cargo volumes stood at 581.34 mt in 2014-15 compared with 555.49 mt in the previous year, a growth of 4.7 per cent. India has 12 publicly-owned major ports.
Speaking to Business Standard, K Ravichandran, senior vice-president and co-head, corporate ratings, Icra, said, “Non-major ports have been more successful in attracting cargo as they are perceived to be more business-oriented, customer-friendly and more efficient. This has been largely due to lower levels of regulatory and financial controls compared with major ports.”
Experts said frustrated with growing delays at some of the major ports, shippers and ocean carriers were looking for alternative port options. Data show non-major ports increased their share in country’s total seaborne trade to 44.75 per cent in 2014-15, from 42.90 per cent in the previous year. Also, cargo volumes reached 470.87 million tonne (mt), up from 417.22 mt in 2013-14. That translates into a 12.85 per cent growth in 2014-15 over the previous financial year.
On the other hand, the overall market share of major public ports declined from 57.10 per cent in 2013-14 to 55.25 per cent in 2014-15. Cargo volumes stood at 581.34 mt in 2014-15 compared with 555.49 mt in the previous year, a growth of 4.7 per cent. India has 12 publicly-owned major ports.
Speaking to Business Standard, K Ravichandran, senior vice-president and co-head, corporate ratings, Icra, said, “Non-major ports have been more successful in attracting cargo as they are perceived to be more business-oriented, customer-friendly and more efficient. This has been largely due to lower levels of regulatory and financial controls compared with major ports.”
They also have high-level of mechanisation, restricting the waiting period to one-two hours compared with one or two days in major ports. “Quick turnaround time on the back of modern infra and dedicated hinterland connectivity has made these ports attractive,” he added.
Experts said inadequate draft at some of the major ports was also the reason for choosing private non-major ports.
According to data, Adani Ports and special economic zone’s flagship Mundra Port led the non-major ports’ growth in market share. It is followed by Reliance Jamnagar Port(captive), Krishnapatnam(Chennai), Essar Vadinar and Kakinada Seaports.
As far growth in current fiscal is concerned, earlier rating agency- ICRA said that major ports in the country are likely to achieve better growth in the current financial year compared to last year on the back of domestic requirements of coal for power sector, crude oil and other cargo. However, their growth rate would continue to be less than the non-major ports, according to ICRA.
To stay ahead of expected trade growth, the government, proposes to establish four new major ports in the country. The ports likely to be established at Dahanu(Maharshtra), Colachel(Tamil Nadu), Sagar(West Bengal) and Dugarajapatnam(Andhra Pradesh) at an estimated cost of Rs. 32,000 crore over the next few years.
