According to a spokesman from the shipping ministry, the Ministry has decided to set up a major port at Ramayapatnam in the Prakasam district in Andhra Pradesh. After Visakhapatnam, this port will be the second one, controlled by the Union Government. At present, the Government controls 13 ports. Taking into account the cargo handled, after Gujarat, Andhra Pradesh is said to be second biggest maritime state. Earlier, the Shipping Ministry had decided to build a major port at Sagar Island in West Bengal. For these two new ports, which will cost the Government about INR 20,500 crore with the annual cargo-handling capacity of 116 MT, the ministry will approach the Union Government for in-principle approval in October. These projects will be implemented through a special purpose vehicle (SPV) with a minimum of 26% equity participation from both the State Governments of Andhra Pradesh and West Bengal. The SPV will adopt the landlord model. According to this model, the land and waterfront infrastructure belong to the government-monitored company while other essential operations of the port such as cargo handling will be outsourced to proper private firms. These firms will be responsible for the superstructure and equipments. As of now, 12 out of 13 ports function as trusts as per Major Port Trust Act, 1953. Ennore Port, however, was formed as a company, unlike the other ports, under the Companies Act, 1956. The spokesman added: “From now onwards, all new major ports will be set up companies under the Companies Act”. Unlike the ports that function as trusts, the ports that run as companies have an advantage; they can decide their own tariff. Setting up new major ports is a significant mission the Shipping Ministry has to undertake in order to move on to achieving their Maritime Agenda that spans for ten years; by 2020, India must attain the capacity to handle 3.13 billion tonnes at its ports as against the existing 1.16 billion tonnes.
Sunday, 16 September 2012
Ramayapatnam to be the new major port
According to a spokesman from the shipping ministry, the Ministry has decided to set up a major port at Ramayapatnam in the Prakasam district in Andhra Pradesh. After Visakhapatnam, this port will be the second one, controlled by the Union Government. At present, the Government controls 13 ports. Taking into account the cargo handled, after Gujarat, Andhra Pradesh is said to be second biggest maritime state. Earlier, the Shipping Ministry had decided to build a major port at Sagar Island in West Bengal. For these two new ports, which will cost the Government about INR 20,500 crore with the annual cargo-handling capacity of 116 MT, the ministry will approach the Union Government for in-principle approval in October. These projects will be implemented through a special purpose vehicle (SPV) with a minimum of 26% equity participation from both the State Governments of Andhra Pradesh and West Bengal. The SPV will adopt the landlord model. According to this model, the land and waterfront infrastructure belong to the government-monitored company while other essential operations of the port such as cargo handling will be outsourced to proper private firms. These firms will be responsible for the superstructure and equipments. As of now, 12 out of 13 ports function as trusts as per Major Port Trust Act, 1953. Ennore Port, however, was formed as a company, unlike the other ports, under the Companies Act, 1956. The spokesman added: “From now onwards, all new major ports will be set up companies under the Companies Act”. Unlike the ports that function as trusts, the ports that run as companies have an advantage; they can decide their own tariff. Setting up new major ports is a significant mission the Shipping Ministry has to undertake in order to move on to achieving their Maritime Agenda that spans for ten years; by 2020, India must attain the capacity to handle 3.13 billion tonnes at its ports as against the existing 1.16 billion tonnes.
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