India Loses $12b on Higher Transaction Costs

Tuesday, April 22, 2008

India loses about $12b each year because of higher transaction costs at its ports, according to MM Saggi, nautical adviser to the government of India.

Saggi told an industry conference that the transaction costs at Indian ports is about 10 percent, compared to 6 percent in developed countries, owing to problems like large turnaround time, port congestion, inadequate use of information technology, a shortage of dredging capabilities, and a shortage of trained personnel.

has 12 major ports that handled 519 million tonnes of cargo in the year ended March 2008, with 12 percent year-on-year growth, a study by Ernst & Young Pvt. Ltd. shows.

Identifying a lack of dredging facilities as an impediment, Samson said the government must accelerate processes, as an 8-billion-rupee proposal to deepen the channel at Jawaharlal Nehru Port Trust's (JNPT) port at Mumbai, which handles most of 's seaborne trade, is lying undecided for about five years.

He said that though a quote had been made for 10 billion rupees for capacity dredging at JNPT, delay costs amount to about 0.5 billion rupees a year.

The Indian government allows 100 percent foreign direct investment in the shipping and ports sector but the no foreign company has come forward, an official said.

The shipping industry both in India and globally is short of trained personnel, according to Rajesh Tandon, managing director of V Ships India Pvt. Ltd., which supplies manpower to shipping companies. He said the shortage is so acute that his company plans to source labour from countries like .

Government of figures show infrastructure, including ports development, needs about $500 billion investment by 2012.


Source:  Thompson Financial

Maritime Reporter October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Moody Upgrades Port of Palm Beach

The Port of Palm Beach District announced that Moody’s Investors Service, Inc. upgraded the Port of Palm Beach District senior rating to Baa3 from Ba1, and reported the outlook to be stable.

Commodity Surge Boosts World Equities; Dollar Falls

Major world stock markets were poised for their biggest weekly advance since 2011 on Friday, as greater investor appetite for riskier assets propelled gains in

Commodities See Biggest Price Jump in 3 Years

Commodities jumped on Friday, headed for their largest weekly gain in more than three years as base metals roared higher after Glencore pledged to slash zinc output

Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1116 sec (9 req/sec)