'Connectivity woes hamper port sector'

NEW DELHI: Productivity-linked reward to major port employees should be determined on the basis of individual port trusts performance rather than on all-India basis, says a CII-KPMG report on India’s maritime sector.

The report, which has highlighted human resource development as one of the five crucial issues for improving maritime infrastructure, has emphasised the need for imparting specialised training in areas where ports face manpower shortage, such as crane and vessel traffic service (VTS) operators.

The other areas of concern are global maritime security, hinterland connectivity, ports and ship building and ship repair.

The study criticised multiplicity of taxes in the sector. It has recommended introduction of simplified tax procedures and incentives.

It has also pointed out the lack of efficient port connectivity. “Besides new projects, there is also a need to upgrade infrastructure to improve the load carrying capacity and quality of roads as well as the capacity of rail to match future traffic,” it said.

Ship building and ship repair industry is facing neglect, the report said. Cochin shipyard is the only yard that has the capability to repair and develop large ocean going ships. While China, Japan and Korea are capable of developing highly sophisticated ships which meet international requirements, Indian ship builders lack the capability to match foreign players in technology, it added.

The total volume of traffic handled by all Indian ports during ’05-06 was 568.93 million tonnes, of which 74% was handled by major ports. Major ports have registered a growth rate of 10.3%, which is higher than the GDP growth, it said. Petroleum crude and products maintain the largest share of total traffic at about 33%, iron ore 20%, coal 14% and container 14%.