Ahmedabad: The Gujarat government recently announced plans to invite a global offer to develop a non-main port in Nargol with an initial investment of Rs 3,800 Crore.
Less than 50 km in Vadhavan in Maharashtra, the central government is working on plans to develop the main port for the estimated investment of Rs 65,000 Crore.
Nargol is likely to face fierce competition from Vadhavan in drawing traffic.
In addition, plans to develop a new port and to increase port-led development activities can face challenges if the Draft Port Bill 2021 from the Ministry of Port, shipping and water channels is implemented in its current form.
The draft bill is aimed at modifying the current management model of the non-main port or port run by the state maritime regulator.
The main port is run by the central government.
“The strength of the state maritime board tends to be affected because the policy proposes the formation of the Maritime State Development Board (MSDC) where the plan to develop a new port must be cleaned,” said a state government official.
He said that the Board would have a minister of port and shipments from each country as a representative, with the Union Minister of Port to be chairman.
“The problems faced by Nargol and Vadhavan are common in many parts of the country today,” said Anand Sharma, Director of Mantra Maritime Advisory Private Limited.
“And the draft bill, if it becomes a reality, will only create more jurisdictional problems.” Sharma continued by saying: “The bill asked the state to establish a maritime board to plan infrastructure and mandate them to act independently.” Sharma added: “However, the approval vest of any infrastructure planned by the State on the Board.” The majority of 27 functions defined for MSDC put aside the independence of the State Maritime Board, Sharma said.
The board has the power to attract, suspend, or cancel port registration without defining parameters, he continued.
MSDC can also suggest maritime boards about agreements and concession areas such as competition and anti-competition.
An official with the Ministry of Ports said that MSDC will formulate a national plan for the main Indian and non-main port, both existing and proposed.
“There are more than 200 small ports in which there will be 50 who are fully operational,” he said.
“We need to revive this port and write a national plan that covers all countries.” Minister of Tamil Nadu recently wrote to his colleagues in nine countries, including Gujarat, proposed that all coastal countries and trade union territories target bills due to weakening countries.
The Gujarat Maritime Board arranged Port handles 338 million metric tons (MMT) cargo for 2020-21 compared to total national cargo 1.247mmt.
The state accommodates the largest commercial port in the country, the largest jetty captive, and is the only country that has three LNG terminals.
“Gujarat handles around 31% of the total marine cargo of the country and is likely to have a negative impact because the new policy is proposed,” said other state government officials.
“If there is a central council to decide whether a country can develop a greenfield port or where it can be developed, if the existing port can be expanded or not, the role of the state maritime regulator is diluted.”