The country is looking for US$7.6bn in order to scale up the total handling volume by the major ports from 616.7m tonnes to as much as 1.46bn tonnes by 2017 – two thirds of which the government expects to come from private investment.
This has no doubt been driven by unfavourable comparisons with both other Asian countries and some of India’s very successful so-called ‘minor’ operations such as Adani’s Mundra port: for example, Chennai has been dogged by endemic queues while Jawaharlal Nehru Port (JNPT) has also been facing recent problems with congestion.
But now there is a proposal being considered for a structural reorganisation that would mean corporatisation for India’s government facilities, according to a local media report. It seems despite challenges from the trade unions the Indian minister of state for shipping, Mr Mukul Roy, is of the opinion that the Major Port Act has to be amended.
This would allow ports to be converted into companies which would gain from “a professional management which will have greater financial and operational autonomy”, he said. If adopted, it is likely that JNPT would be the first port to be put through the process.