August 22, 2008

Indian ports could soon run out of capacity – Ernst & Young

According to an Ernst & Young report, India's ports could soon run out of capacity. Entitled “Transforming Indian ports into world class facilities”, the report highlighted a 12% YoY jump in cargo throughput at Indian ports for the financial year 2007-08 and said that such increases are putting pressure on port performance and productivity.

The report outlined 3 key measures for Indian ports to achieve world class status namely focused infrastructure development along related logistics chains, emphasis on trade facilitation value added services and increasing competition through privatization.

Mr Rajesh Samson associate director of Ernst & Young said that "India needs to have full fledged information technology systems like Portnet and Tradenet of Singapore in place. It should encourage competition and devise a comprehensive multi modal transport policy to develop its ports into world class facilities."

The Ernst & Young report was released just as Indian government announced new plans to double cargo handling capacity at the country's ports to 1.5 billion tonnes per by 2012.

Mr APVN Sharma secretary for the department of shipping in ministry of shipping, road transport & highways said that the investments, through public private partnerships, would total some USD 25 billion. He highlighted the government's aim of attracting more private sector involvement in infrastructure projects, including investment from global companies.