Major Ports need Single Agency for Shore Handling of Ships

Amid India's non-major ports eating into the share of 12 major ports, a government-appointed panel has recommended ensuring that shore handing of vessels be done by a single agency to improve the profitability of centre-owned ports. Unlike about 200 non-major ports, there are multiple agencies for shore handling and stevedoring at major ports presently.

"The non-Major Ports have by and large a system of having one agency looking after all the work of unloading / loading of ships and shore handling of cargo in their port. This gives a more focused approach to marketing of the port," the committee said.

The recommendations are aimed at protecting major port’s interests amid their market share nose-diving to 57 per cent in 2013-14 from 91 per cent in 1994-95.

The Committee said work could be handled efficiently by single operators providing example of PPP berths in Major Ports where the terminal operator gets to do end to end handling, unloading / loading and delivery / receipt of cargo for the ships.

"In fact only about 23 per cent of the traffic of Major Ports in 2012-13, amounting to about 124 million tonnes, which is mostly non-mechanised, gets handled by stevedores; with 54 PPP projects awarded in the last two years, this is likely to fall even more," it said.

A stevedore is the name given to an agency that transfers cargo between ship and shore.

India has about 200 non-major ports and 12 major ports - Mumbai, Jawaharlal Nehru Port, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Port Blair, Tuticorin and Kandla

The Narendra Modi led-government has also initiated steps aimed at "corporatising" major ports and has started the process for appointment of a world-class consultant to come out with a draft report for amendments in the relevant act. The move is aimed at infusing professionalism in the major ports in order to make them compete with private sector ports by empowering them with additional financial autonomy. These ports have also been asked to come up with a shelf of projects to augment their capacity to 1600 MT from the present 800 MT in next five years.