Gujarat as a 'port State'

Published : Apr 25, 2003 00:00 IST

A.K. Pradhan, Chairman, Gujarat Maritime Board. - BY SPECIAL ARRANGEMENT

A.K. Pradhan, Chairman, Gujarat Maritime Board. - BY SPECIAL ARRANGEMENT

With an ambitious programme of developing a string of ports, Gujarat is set to become the gateway on the western coast.

GUJARAT can be said to be one of the most progressive, forward-looking and advanced States in the country when it comes to infrastructure development efforts. In particular, Gujarat's maritime sector is considered to be the most developed among the States of India in the matter of minor ports. During the year 2001-02, ports in the State together handled about 82 million tonnes of cargo, which accounted for 86 per cent of the total cargo handled by all the minor ports of India.

Those in charge of policy formulation in the State felt that the time was ripe for the launch of a major effort to ensure that Gujarat emerged as the "port State" of India. This could earn it, in the long run, the status of being the main gateway on the western coast to the entire hinterland beyond, at a time when the need for berthing space for cargo vessels is swelling in the ports along the western coast.

The Gujarat Maritime Board (GMB) was set up in 1982 under the Gujarat Maritime Board Act, 1981, in order to develop and regulate the State's port sector. The GMB manages 40 ports, with the exception of Kandla, which is a major port under the Central government. Of these 40 ports, 11 are intermediate ports and 29 are minor ports.

The setting up of such an agency in Gujarat was found to be necessary to exploit the immense potential for port and shipping facilities in the State, which has a coastline of 1,600 km, nearly one-third of the country's total coastline length. Gujarat also has a big strategic advantage: it is the nearest maritime outlet from India to West Asia, Africa and Europe.

Over the years, the GMB has sought to ease the load on the overburdened major ports of western India, including Mumbai and Kandla, by developing new port facilities. In the process, state-of-the-art ports have become the order of the day in Gujarat. Some of these all-weather, direct-berthing, deep-sea ports represent the country's first greenfield ports to be developed in the joint sector on BOOT (Build, Own, Operate and Transfer) basis.

The Gujarat coastline features the Gulf of Khambat and the Gulf of Kutch, both of which provide the natural navigational and logistical advantage that is required to reach out to a vast hinterland of coast-based industries in the State. The development of ports, however, requires huge long-term investments.

In this age of liberalisation, it was felt that such investments should come from the private sector. In 1995, Gujarat set a precedent by formulating a port policy, which expressed the State's intention to opt for the increasing participation of the private sector in the development of the port sector. The objective of the policy is to achieve the highest standards in the matter of port infrastructure and services and consequently attain higher traffic at the ports and enhance the process of industrialisation in the State. The policy is comprehensive as it appreciates and accounts for the strategic maritime location of Gujarat and the existing entrepreneurial spirit of the State.

One of the highlights of the State's port policy is the identification of 10 greenfield sites with a vision to develop these ports matching global standards. Of these 10 ports, four - Pipavav, Dholera, Hazira and Maroli - are envisaged for development under private sector ownership and another four - Bedi, Positra, Mundra and Dahej - are being operated in the joint sector.

The Government of Gujarat announced in 1997 the BOOT scheme to serve as a framework for investment in the port sector. This lays emphasis on timeliness of infrastructure creation, efficiency of operation and operational autonomy to the private sector, and synchronisation with the development of the hinterland. Under this scheme, the government's role is to be maintained only in appropriate areas and its financial liabilities are to be kept to a minimum.

The Mundra port, developed by Gujarat Adani Port Ltd., has a draft of 16 metres and it can handle post-Panamax vessels up to 80,000 DWT. Its 300-metre container berth is likely to become operational in April.

The Hazira port is being developed by Hazira Port Pvt. Ltd., a Shell group company, and it will have the capacity to handle 5 million tonnes of liquefied natural gas (LNG) every year. It is planned to be made operational by August 2004.

Petronet LNG Ltd. is constructing an LNG terminal and solid cargo berth at Dahej. The LNG terminal, with a capacity of 5 million tonnes, is likely to become operational by December 2003.

It can be said with confidence at this point that Gujarat is truly on its way to becoming the `Port State' of India.

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