Elective - Port and shipping management

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Case Study Project

Total Marks: 100

Elective -  Port and shipping management

Question. 1. For establishing a new port with the goal of creating a world-class port in India and indeed, it clearly has an edge over other Indian ports with respect to both infrastructure and performance.

However, it suffers from some of the inherent drawbacks ailing the Indian port sector that can prevent it from achieving world standards in port efficiency. As the most modern among Indian ports, and also the one with the least labor problems, the natural choice as a test case in privatization of port operations. Discuss the key reforms needed for establishing such a port, w.r.t. their formulation and implementation. The process must be designed and optimally sequenced with active participation of a wide range of actors and capability to enhance efficiency of the public terminal through the introduction of intra-port competition and must succeed in earning the distinction of being the world largest container port.

Answer:It has been reported in the press that an estimated 100 or more such mega vessels rule the sea, these are able to transfer small lots of containers for onward transmission to portsthat cannot berth these mega vessels. It would follow that, in due course, these smaller container vessels will also be forced to leave the shipping lanes and land up in ship-breaking yards.

As far as India is concerned, as a sequel to the development of Hambantota port in Sri Lanka, cargo to USA, UK and Europe are now seeking transhipment facilities at Colombo, Singapore and Jebel Ali (UAE). Unfortunately at the moment, most Indian ports lack deep drafts and cranes with sufficient reach to serve such mega vessels.

In a way, this works to India's disadvantage because when customers nominate their cargo carriers, by identified shipping companies, we may land up handing over the cargo that would employ the advanced facilities available in the ports mentioned above, for the final destination.

At the moment, even NhavaSheva port, which handles around 45% of India's container movement, does not have sufficiently deep draft. And yet, we are only six years away from the goals set for the Maritime Agenda 2020 by the government. If this target has to be met, it is imperative that in the "Make in India" campaign, special attention is drawn to this inadequacy and efforts are made on a war footing, to develop deep drafts and obtain matching equipment to be able to handle such mega vessels.

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