Time to scale up capabilities at express speed
The Modi Government's emphasis on developing the shipping industry, especially the sea ports, with a one-trillion rupee commitment announced at the inaugural Maritime India Summit in Mumbai on Thursday, comes not a day soon. This sector has been ignored in the past decades, even though India has the potential to be a major maritime power, with a 7,517km-long coastline, not to mention the 14,426km-long navigable inland waterway that criss-crosses the country. Sea ports handle as much as 95 per cent of the country's cargo, and this number will increase as the economy grows. It is expected that, over the next decade, Indian ports will have to handle as much as 3,000 million tonnes per annum. Their current total capacity is only 1,400 MTPA. To successfully make this leap, a generational upgrade is necessary. The first step here is mechanisation and upgradation of existing infrastructure at the ports, much of which is old. This will also include draft enhancement or dredging so that the ports can handle the large shipping vessels used today. The average draft of an Indian port ranges from 12 to 14 metres whereas, globally, the norm is up to 23 metres. New terminals will also have to be developed so that the existing ports can handle the additional cargo that India expects to receive in the near future. For example, a berth to handle food grains and fertilisers has been proposed for Kandla port while Kochi is being considered for an edible oil terminal. Apart from bringing the existing 12 major ports and 200 non-major to international standards, new ports are also needed. India hasn't built a new port since the 1950s. Today, the existing ports are saturated, while there are stretches along the coastline that do not have an operational port. Keeping this in mind, major new ports have been proposed at Vadhavan (Maharashtra), Sagar Island (West Bengal), Cuddalore/Sirkazhi (Tamil Nadu) and Machilipatnam/Vodarevu (Andhra Pradesh). Additionally, two international container transhipment hubs are being planned at Enayam (Tamil Nadu) and Vizhinjam (Kerala). These will handle the shipping traffic that ideally should have come to India but currently goes to Colombo or Singapore.
Another area of focus is re-invigorating India's inland waterways so that they may complement port activities. New ports will not be competitive enough if they lack last-mile connectivity. Currently, hinterland connectivity is all about roads and railways while our waterways lie under-utilised. This is despite the fact that waterways trade is cheaper and environment-friendly. India has recognised 106 waterways, of which six have been declared as national waterways. These must be developed at a rapid pace. Additionally, the ship-building and ship-repair industry must be re-invigorated and coastal tourism given a boost. Finally, port-led industrialisation, an almost forgotten idea, needs to be revived.