Nitin Gadkari, Shipping Minister for India, said the government is planning to spend an estimated US$10.7 billion as part of its ‘Sagar Mala’ project in a bid to upgrade the country’s major ports in a five-year plan, according to the Journal of Commerce.
The minister said the Sagar Mala program intends to focus on four key areas: port modernization, port connectivity improvement, port-led industrial development and coastal community development.
Gadkari said: “Our logistics cost is thrice that of China. If we want to compete in the global market, logistics costs need to be reduced. Sagar Mala will address all these issues by developing ports and waterways in the country.
“We have identified 104 port efficiency improvement initiatives based on the report of an international consultant. The projects would be taken up in a phased manner,”
Gadkari said that a total of 14 concession contracts had been awarded as part of the port modernisation scheme.
30 new port development projects are also planned for 2015.