India plans $7.6 billion investment in the build of seven new ports
India plan to use public and private funding for the build of a further seven ports by 2017
Funding the projects expected to cost up to US$7.6 billion
India is to invest a total of US$7.6 billion to build seven new ports by the year 2017, according to reports.
Public and private funding will be used for the construction of the ports as the Asian country looks to take advantage of a surging boost in trade.
Talking to Bloomberg, Rakesh Srivastava, joint secretary at the Ministry of Shipping in India said, "The Government has to lead the way in creating port capacity given the growth in trade. Private sector is welcome, but the Government won’t give up its responsibility.”
Srivastava added that he expects up to two-thirds of funding to be supplied by private companies. Interest is expected to be high, considering the investments already made by major terminal operators DP World and APM Terminals in the country's terminal facilities in recent years.
Congestion at India's major ports including Chennai and Jawaharlal Nehru (Nhava Sheva) has become an increasing problem in past months, with surcharges and diverted cargo becoming ever more common.
In the year ending March 2010 the average turnaround of vessels calling at India's ports was around four and a half days, compared with just six hours at ports in Singapore and Hong Kong, according to Bloomberg.
Rahul R. Pathak, principal consultant at Mumbai-based Mantrana Maritime Advisory Pvt commented, “More ports will definitely help remove trade bottlenecks, which provides consulting to shipping lines and port operators. But the government has to ensure that they all don’t end up competing for the same basket of goods.”
The proposed plans for the construction of the seven ports has been sent by the government to each individual Indian state, advising them to make available up to 2,500 acres at their respective harbors.
Under the proposals, India aims to triple the amount of exports from the $225 billion recorded last year to $750 billion by 2017.