Union Transport and Shipping Minister Nitin Gadkari has said the Centre is looking to increase the share of water transport substantially in view of its cost-efficiency, environment friendliness and employment potential.

“The target is to increase its current share of 3.5 per cent to 15 per cent by the end of the five year term of BJP government at the Centre. Water transport has the potential to increase the GDP by 2 per cent and generate 5 million new jobs,” Gadkari told a conference on Coastal Shipping and Inland Waterways, organised by Assocham here on Wednesday.

New ports

Three new ports – Wadhwan (Dahanu), Colachel (Tamil Nadu) and Sagar Island (West Bengal) – are likely to come up with 18-metre draft. The project will involve an investment of ₹18,000-20,000 crore. Tenders for the three ports will be out by March and work on breakwater will start from April-May this year, Gadkari said.

The Shipping Ministry will invest ₹70,000-80,000 crore in port-rail connectivity and full financial cooperation will be extended for modernisation, mechanisation and computerisation of ports, he said.

Logistics costs form 30 per cent of any product, which is partly responsible for the poor export competitiveness. Waterways are the cheapest means of transport with cost of 25-30 paise per km, which can be brought down to 15 paise with new technology and efficient fuel. The same by road costs ₹1.50 and by rail it is ₹1, Gadkari said.

In China, passenger and goods traffic by water is 47-49 per cent, while it is 43-44 per cent for Japan and Korea and the same is around 40 per cent for Europe.

Maharashtra Port Policy

Gautam Chatterjee, Additional Chief Secretary (Transport and Ports), Maharashtra, said a comprehensive port policy for the State would be unveiled by the month-end.

The policy will make the Maharashtra Maritime Board the single point of contact for all the port-related permissions. This will streamline the work for entrepreneurs, who now have to go to various departments such as revenue, urban development etc.

The entire spectrum of water transport-based activities, including ports, jetties, shipping lines, shipyards, repair yards etc will be covered by the policy, he added.

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