Port sector plans Rs. 13,000cr capacity addition

Kochi : Shipping Ministry has drawn up an ambitious plan to expand the current port capacity on the public private partnership model during the current financial year involving an investment of Rs. 13,000cr. In the second quarter, the government is awarding Rs. 7,500cr projects including development of fourth container terminal at Jawaharlal Nehru Port, a multi-purpose container terminal at Kochi and also a container terminal at Tuticorin Port and these ports are likely to add capacity of about 80 mt per annum. Environmental bottlenecks, absence of regulatory authority at the national level and scores of similar other problems are playing spoil sports in the process of awarding PPP projects.

Sources said that the port sector has missed the target of awarding four port projects earmarked for the first quarter of the fiscal involving Rs. 5,700cr investments and capacity addition of 75 million tons largely due to environmental bottlenecks. In fact, the government had targeted to award Rs. 16,700cr port projects during the fiscal targeting a capacity addition of 230 mt per annum. But installation of mechanized handling facilities at the Vishakhapatnam was held up due to pending security approvals and the construction for the mega container terminal at the Chennai port could not begin as it could not get environmental clearance. Similarly other two projects which were also delayed include development of a dry bulk terminal at the Kandla port.