Restriction on new Indian ports recommended

In its latest report, the Parliamentary Standing Committee on Transport said: “New ports are coming up in the vicinity of major ports affecting their business and profitability.

“The committee therefore recommends that no new ports be established in the 100 kilometre vicinity of existing major ports without the permission of board…”

The committee said that restriction on new ports was needed due to non-major ports and private ports holding over 40% of the market share of cargo handled.

“The major ports have lost around 33% of their market share in the last two decades,” it explained.

“Moreover, transhipment of containers is taking place in foreign ports such as Colombo and Singapore which causes great loss to Indian ports.”

The committee, chaired by Indian MP and the country’s former Minister of Railways Mukul Roy, made the recommendation after looking at the Major Port Authorities Bill, 2016, which was referred to the group by the chairman of the upper house of India’s Parliament in January this year.

The bill seeks to give greater autonomy in decision-making to the country’s 12 major ports, as well as repealing the Major Port Trusts Act of 1963.

As well as the 12 big ports, there are around 200 non-major and private ports in India.