Implementation of Dedicated Freight Corridor projects - game changer in improving logistics infrastructure.

Mohammad Aslam Bijapur

- Managing Director, Royal HaskoningDHV, India

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

The expansion plans of Government of India and private sector are being implemented as planned. The capacity of terminals and ports are being augmented by improving processes and systems. The government is implementing their new capacity expansion plans at all major ports of India. The Ministry of Ports, Shipping and Waterways is also implementing additional and dedicated infrastructure creation for coastal shipping at major ports of India. Private sector has undertaken large-scale expansion plans leading to creation of additional capacity. Additional port capacity has been created especially in Gujarat, Maharashtra on the West Coast of India and Odisha, Andhra Pradesh and Tamil Nadu on the East Coast of India.

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?

Government of India (GoI) has initiated infrastructure and connectivity improvement of existing ports on a large scale. Infrastructure improvements have taken place for road and waterways. Establishment of organisations like IPRCL, G-Ride, DFC etc and proposal for setting up of Port Infrastructure Vikas Nigam Limited by GOI are some of the key steps which can improve the port connectivity effectively. Implementation of Dedicated Freight Corridor projects is going to be a game changer in improving logistics infrastructure of India. Ports in association with highway development authorities have undertaken widening of roads connecting port with the hinterland. This is helping reduce logistics time and costs associated with international trade. Government has invested a huge amount in improving water transport infrastructure on national waterway (NW-1) River Ganga. Implementation of this project would lead to creation of additional mode of transportation for landlocked states namely Uttar Pradesh, Bihar, Jharkhand, etc. Government of India plans to operationalize other waterways of India for passenger and cargo transportation. These improvements would help the existing ports of India to expand its capacity which was one of the key aspects of Sagarmala Project. The steps taken by the GoI towards the port led infrastructure development in India is very commendable considering the pace at which port sector is growing in India which is being driven by various public and private agencies by garnering partnerships with various stakeholders and bringing in large investments which makes it difficult to exit in short term.

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

Government of India initiatives in the port sector increasing public private partnership mode of investment is likely to generate large cargo handling capacity. Looking at the development and fast growth of private ports like Mundra and Hazira on the West, Krishnapatnam, Kakinada, Gangavaram and Dhamra on the East which are in close proximity to the major ports of India, it is evident that private players are competent to add substantial value and growth to the port sector in India. JNPT is one of the best examples for successfully running the JN Port with the involvement of various key private operators.

Since, port sector has evolved as a successful logistics business over the years, it is important to integrate the shipping industry to all its upstream and downstream stakeholders effectively to enable stable growth.

Also, Ministry of Shipping (GoI) has initiated the capacity augmentation by way of developing new ports. One of these is the development of Greenfield mega container port on the west coast of India that will be developed with PPP basis. Studies for this proposed development is already under progress and Royal HaskoningDHV is the engineering consultant for the same.

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?

Smart technologies have helped real-time tracking of cargo. It has also helped in reduction of time and cost. Smart technologies have also helped in planning future infrastructure with the help of big data and analytics. Over the years, we have seen that ports are rapidly moving towards the cargo centric hinterland to tap captive cargo and accordingly building the entire marine and land based infrastructure which suits the hinterland which is impacting the possibility of expanding the facility badly unless existing hinterland industries shows improvement. By adapting smart technologies in ports, one can track the source and destination of the cargo and analyse the cargo flow pattern while planning the infrastructure itself. This kind of open and transparent information would also enable governments, regulatory agencies, financial institutions to work effectively which improve the effectiveness of available infrastructure.

At Royal HaskoningDHV, we assist our clients establish 'Smart Ports' and meet the challenges of adopting sustainability initiatives and delivering more efficient operations. Our Smart Ports expertise is based on collaborative thinking, working in partnership and delivering studies, designs and projects in a cost-effective manner around the themes like Project sustainability, Electrification and sources of renewable energy, Health, safety, social and environmental management, Emissions management and improved air quality, Greenhouse gas / carbon measurement, foot printing, monitoring and management (reduction strategy).

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.?

In our opinion, the unorganised trader's business model and congestions at last mile connectivity are some of the significant challenges with respect to dwell time and throughput of the port terminals. With effective implementation of smart technologies in port sector and tracking the cargo movements effectively will lead to overcoming these issues. Also, with the capacity constraint in the existing ports, development of new ports preferably away from cities is a possible solution for them.

Royal HaskoningDHV is a global maritime consultant specialising in the planning and design of marine facilities, ports, terminals and shipyards. It ranks # 2 in marine sector by ENR (Engineering News Record) for being top consultants in marine sector.

In India, Royal HaskoningDHV has one of the largest maritime teams working on ports and shipyards projects for major public and private clients in India. Our design offices are in Mumbai and Delhi.

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