Digital transformation is a pre-requisite for a developed port system in any country.

R. Ravi kumar

- Secretary General, IPPTA

What is the overall progress of target opportunities on the trade front in the port sector?

The potential in the port sector is immense with the Government throwing open even existing operating facilities at major ports for privatisation. This has tremendous scope for induction of modern technology and equipment into major ports in India. In addition, announcement of new port infrastructure projects, development of new major ports, renewed thrust on developing CFSs/ICD/Warehouses/Cold Logistics Facilities/Multimodal Logistics Facilities etc. are opening up new opportunities to the private sector to participate in such projects.

Infrastructure development, especially connectivity enhancement to and from the port, is critical which is envisioned by the Government of India through the Sagarmala Project. How do you see this vision in terms of planned and integrated rail, road, highways, coastal shipping lanes and inland waterways network?

India has been unable to capitalize on its geography due to infrastructural and operational deficiencies leading to logistics inefficiencies. Government is therefore rightly focusing on infrastructure development and connectivity enhancement. However, this vision needs to be backed by robust planning and adequate funding. It is vital that road, rail and coastal connectivity to ports is enhanced to bring in overall logistics efficiencies and reduce the logistics costs. More coordination is needed between central and state authorities to ensure road connectivity is enhanced much before the demand arises.

How optimistic are you about the government initiatives and policies in the ports sector, especially on the handing over the allocated assets to private operators?

The intent of Government for private sector involvement on a large scale in port modernization is quite clear. We have no doubt in our mind that privatisation is the panacea for addressing infrastructure and investment issues in the country. There could be a challenge in privatising the existing assets as all of them may not be amenable to privatization. 

Having said this, we have to bear in mind that while the government has introduced several policy measures designed to encourage growth in the port sector, certain policy reforms are needed to accelerate the development of India's port sector. Such reforms should be aimed at upgrading infrastructure at Indian ports, giving complete tariff freedom to PPP Operators (unfortunately even the new Major Port Authorities Act, 2021 does not address this), rationalising vessel related charges, bringing out suitable land reforms relating to fixation and revision of lease rentals, rebalancing risk allocation by revisiting model concession agreements, simplifying the environmental clearance process for port projects, simplifying customs procedures, offering more tax incentives, establishing suitable financing mechanisms at concessional rates of interest for financing PPP infrastructure projects etc.

How do you see the adaptation of smart technologies for digital transformation of ports like Internet of Things (IoT), Artificial Intelligence (AI), tracking system, automation, big data and advanced analytics?

Digital transformation is a pre-requisite for a developed port system in any country. Leveraging Technology for efficiency enhancement is a must for major transformation. The introduction of a Port Community System and plan to develop a National Logistics Portal by the Government are steps in the right direction in taking the maritime sector to a paperless regime and facilitate Ease of Doing Business.

India has envisaged in the Maritime India Vision-2030 transformation of its ports into 'smart ports' and in due course upgrade these to 'intelligent ports'. In this pursuit, modern technologies such as IoT, artificial intelligence and machine learning would be put to use, and smart traffic management tools including block chain technology and accelerator platforms, would not only simplify and smoothen the operations of the ports but add to efficiency.

What are the significant concerns / challenges / potential in the ports sector with respect to turnaround time, cargo-handling, road networks within the port area etc.?

Some of the challenges faced in respect of existing ports include inadequate berthing capacity, low drafts, outdated cargo handling equipment, poor hinterland connectivity, inadequate road networks within the port area, inadequate navigational aids, facilities and IT systems, lack of technical expertise and a lack of modern equipment for handling large volumes. Ports established prior to 1960's need a major overhaul of road and rail network. One of the biggest problems is the drainage systems in these old ports and this need to be addressed.  Bulk cargo storage plots need to be developed and the ports which are in the midst of habitation need to be augmented with covered storge facilities for bulk handling. Problems relating to inadequate truck parking areas, ports intra-connectivity need to be addressed. There is also a need to set up a separate dredging fund to meet the dredging needs of the ports. All the above factors need to be addressed to make Indian Ports on par with the major international ports as envisaged in the Maritime India Vision-2030.

Hits: 230