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i-maritime News Service

Minor ports like Adani Ports, Gujarat Pipavav sail ahead on better infrastructure - 2013-05-17


India's 12 major ports which handled more than 90% of the cargo until a decade ago are facing stiff challenge from minor ports, led by Adani Ports, Gujarat Pipavav Port and Essar Ports, largely due to better infrastructure.

Among the minor ports in the country, Adani group-controlled Adani Port and Special Economic Zone, Maersk group promoted APM terminal and Essar group controlled Essar Ports seem to be giving the major ports in the country a run for their money as the three are seen to be controlling more than half of the share of the minor ports in the country.

Experts have also pointed out that the cargo controlled at these ports is only expected to rise significantly, helping their financials. Minor ports currently account for 39% of the cargo handled in India and industry experts peg the share to grow to 45% in two years as major ports are expected to suffer due to capacity constraints.
While the major ports in the country controlled 561 million tonnes (mt) of cargo in the financial year ended 2012, the minor ports handled nearly 350 mt of cargo during the period, about 39% of the total cargo handled at the ports. Adani Port handled close to 70 mt while Pipavav and Essar Ports handled more than 100 mt together.

Major ports in the country, including Jawaharlal Nehru Port Trust, Mumbai Port and Chennai Port, have been struggling due to capacity constraints and lack of modernisation. Expansion plans at major ports have hit a roadblock due to
inefficiency by port officials and lack of interest from private port operators.

Source: The Economic Times