India Okays 'Major Port Trust Authorities Bill, 2016'
The Union Cabinet of India, chaired by the Prime Minister, Narendra Modi has approved the Major Port Authorities Bill, 2016, a move aimed at bringing greater efficiency and professionalism in governance of ports through full autonomy in decision making and by modernizing the Institutional structure of Major Ports. It will replace the Major Port Trusts Act, 1963. The Union Cabinet "has approved the proposal of the Ministry of Shipping to replace the Major Port Trusts Act, 1963 by the Major Port Authorities Bill, 2016," an official statement said. The new Major Ports Authority Bill, 2016 would help to impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
Indian Ports: Private Vs Government
Rising competition from fast growing private sector ports is forcing government-controlled major ports to re-invent themselves, reports Business Standard. Slowdown in India's international trade is adding to the woes. The government-owned port trusts had been used to near monopoly revenues and profits from 'grateful' exporters and importers. These ports are now finding it difficult to fill their berths as newer ports are willing to sing in customer's tune. A recent report from JOC stated that chronic capacity constraints and infrastructure woes at some state-owned ports spur the diversion of cargo and vessels to nearby minor ports. The gainers have been large private sector ports such as Adani Ports, Pipavav Port and Vadinar Port among others.
India's Maritime Growth Fueled by Foreign Companies
Foreign players continue to dominate several segments of the Indian maritime industry: from salvage to dredging, chartering to ship management and ship manning, to name but a few. And the list of foreign firms setting up shop in India is growing as the country is hurriedly putting in place the required infrastructure to meet the huge demands of India’s growing international trade. Globally, India is the 7th largest country in area, 2nd in population and 11th in GDP, with the expectation that it will ascend to the top five in GDB by 2020. The country is blessed with a 4,700 mile coastline, making it one of the longest in the world not forgetting the 14…
