Non-major ports have taken away a significant share of cargo from the major ports in the last two years. The drop in iron ore handling is a major reason for the decline in the cargo handling at major ports.
However, the increased investment by private players has led to better efficiency in non-major ports (NMP).
In the two years ago, the share of NMPs in the total cargo handling has increased to 39.77 per cent as against 33.98 per cent.
It is the reverse for major ports, which saw its share decline to 60.22 per cent from 66 per cent in the period under review.
In 2011-12, cargo handling at the country's ports increased by a 5.13 per cent over last year.
According to Mr S.S. Kulkarni, Secretary General, Indian Private Ports & Terminals Association, the emergence of NMPs in the handling of sea-borne traffic of the country has been acknowledged for long.
The share of NMPs increased from seven per cent in 1990-91 to 36 per cent in 2010-11.
Private participation
Many of the NMPs that are being developed through private participation are specialised ports with dedicated clients, he said.
The Maritime Agenda 2020 has also recognised this fact and it is expected that the share may now onwards tilt more towards the non-major ports with the ratio getting reversed. Says Mr K. Ravichandran, Senior Vice-President, ICRA Ltd, the marginal negative growth (1.73 per cent) in major ports' cargo volumes in 2012- over the previous year was mainly due to lower iron ore volumes handled (down by 30 per cent).
Regulatory actions impact
This was beyond their control as it was largely precipitated by regulatory actions by both the Centre and the states.
The NMPs on the other hand saw healthy growth in coal, fertilisers, POL and containers. This enabled some of the private ports having exposure to iron ore cargo to mitigate lower iron ore volume.
Overall, the rising share of NMPs has been on the expected lines and should acquire further momentum in the medium term as large number of imported coal-based power plants get commissioned, which are expected to use mainly the private ports for handling.
Need of the hour
Major ports need to speed up the public-private-partnership projects award and implementation to augment capacity and attract the trade in fast growing segments such as coal and containers; else the private ports could seize the opportunity and consolidate their grip in the market, said Mr Ravichandran.
The Government is taking steps to improve cargo handling at major ports, said the Union Shipping Minister, Mr G.K. Vasan.
This includes deepening of channels for improvements in drafts, construction of jetties and berths, procurement, replacement or upgrade equipment, improvement of rail/ road projects and other capacity addition projects such as backup facilities, he said while replying to a query from a member of the Rajya Sabha.