In order to connect India's sea, coastal and river ports and to relieve congestion on its roads, reduce logistics costs, and ensure a more environmentally friendly transport model, the Indian government is set to invest US$60 billion into its Sagarmala Programme, which will involve a total of 150 projects throughout the next 10 years, according to IHS Fairplay.
In a statement, the Indian Shipping Ministry said: “These projects include capacity augmentation at existing ports and [the] development of five to six new ports including a transhipment hub.”
Manish Saigal, Managing Director of port and logistics tracking company Alvarez & Marsal India, said: “To attract private and foreign investment, however, there must be a package of financial incentives.
“Existing inland waterways have not been able to attract significant cargo volumes, shipping lines look at volumes. This aspect needs to be addressed.”
PTI previously reported that the Indian government had undergone a reshuffle in its budget, in which more than $115 billion is now being made available for the port sector.
India’s Sagarmala project was announced in 2015, when around $10 billion was originally proposed for the project.