New Delhi, June 17: The working group on port sector constituted by the surface transport ministry has identified 26 major projects for private participation. The port projects identified are in the Kandla; Jawaharlal Nehru; Mormugo; Tuticorin; Madras; Visakhapatnam; Paradip; and Calcutta/Haldia port.

The report submitted to the surface transport ministry last week says that, the Indian ports will handle about 430 million tonnes of traffic by the end of the Ninth Plan in 2002 and the traffic level may touch about 800 million tonnes by 2007.

All this may require 300 to 400 additional berths to handle cargo of different types. The creation of additional port capacity of this order, at the current costs, would require an investment of Rs 40,000 crore.

It is estimated that not more than Rs 10,000 to Rs 12,000 crore would be available from the Ninth Plan's (1997-2002) funds by way of budgetary support and internal resources for the development. The balance monetary requirement for creating more capacities at these ports would have to come from private sector or the capital market.

The areas identified by the committee for the private participation are:

*Leasing out existing assets of the ports.

*Construction of additional assets such as:

--Construction and operation of container terminals.

--Construction and operation of bulk, break bulk, multipurpose cargo berths and specialised cargo berths.

--Provision of warehousing, container freight stations, storage facilities and tank farms.

--setting up of carnage/handling equipment;

--setting up of captive power plants; and

--setting up of dry docking and ship repair facilities.

--leasing of equipment for cargo handling and floating craft etc.

--Pilotage.

The government has already approved a number of schemes for private participation with an estimated aggregate investment of Rs 900 crore in the following areas:

* Leasing of existing berth/asset of the port;

* Creating of storage/warehousing facilities;

* Creation of dry docking and ship repair facilities;

* leasing of equipment by port from private sector

* capital dredging from resources provided by user agencies.

Therefore, it is an imperative need to promote private sector investment in the port development, the working group has observed.

It has been pointed out that the private sector would bring in substantial part of the much needed resources. It has been perceived that the private participation in the ports would be advantageous. The much needed financial resources for the ports would be brought in by the private companies.

Also, with private managerial expertise, efficiency, productivity and quality of services can be expected to improve.

The group has stated that with increased involvement of private companies gestation period for setting up new facilities is likely to be reduced and modern technology on a global basis can be accessed.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.