India’s main ports saw a significant decline between 2008 and 2014, with profit margins falling from 43% to 28% and the market share drop from 72% to 57%. But Union Minister of Shipping, Road Transport and Highways, Nitin Gadkari, said performance has “reversed”.
“With new initiatives, the improvements have been registered in the performance of major ports with the volume of cargo handled increasing by 4.6% and revenue increasing by 8.7% in 2015,” he said.
Efficiency initiatives carried out include assigning more power to major ports, a new scheme to help ports mitigate oil pollution, setting up coastal berths and passenger jetties, and capital dredging to 18m in Mormugao Port.
In addition, new companies Indian Port Rail Corporation and India Ports Global have focused on hinterland connections and projects aboard. Elsewhere, the Sagar Mala project continues promote port-led development and implement new equipment and technology as well as upgrade existing equipment to enable the ports to handle the larger vessels of the future.
Major ports throughout the country will also “adopt best international practices”, with priorities including treatment of waste water, use of bio-diesel to reduce air pollution and solar and wind power.
It’s understood the government’s decision not to move forward on the port corporatisation plan follows a similar move to withdraw efforts to ease land acquisition laws to build roads and ports.
Its plans were unwelcome by port and dock workers earlier this year who went on strike over the matter, seeing the move as detrimental to the existence of ports, in addition to affecting the survival of workers and pensioners.
Local media reports a longstanding plan to harmonise taxes across all of India’s 29 states by April 2016 is also now in question.