India: Inadequate investment in ports may slow cargo growth

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Jun 2008

Ports in the country require more investment in infrastructure to record a 20 per cent growth in cargo handling in next few years, an executive of a leading international shipping line said here today. "The port infrastructure in Indian ports are not adequate to meet the demand of the industry to maintain a 20 per cent growth in cargo handling from major ports in the years to come," CMA-CGM Global India Managing Director Marc Bourdon said here today while addressing the AGM of the Calcutta Freight Brokers Association.
"There is also no sense of urgency in investment in port infrastructure. There are also signs of capacity constraints in leading ports," he added.
Among the few ports that registered high growth rate are Pipav-42 per cent, Chennai-35 per cent, JNPT--23 per cent, Mundra 24 per cent while, Kolkata port registered just six per cent growth, Bourdon said.
He pointed out that additional capacity from shipping lines was not possible due to infrastructure constraints.
Shipping liner also seemed worried over the zooming oil price. The average global freight rate has doubled to USD 500 per tonne from USD 250 per tonne in 2007.

Source: PTI