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Thursday, December 3, 1998

Maharashtra maritime board to consider hinterland connectivity at port sites 

Shilpa Joglekar  
Mumbai, Dec 2: The Maharashtra Maritime Board (MMB) will take a review of the hinterland connectivity such as road and rail links at port sites already announced by the government. In an interview to the Financial Express, R Dhumal, CEO, MMB, who has taken charge a few weeks ago, said that the lack of such facilites had deterred potential investors when the sector was first opened for private participation. Of the seven sites initially identified by the state government, none except Vadhavan found takers. However, with Vadhavan in legal trouble, the MMB has no port projects under execution at this point. According to Dhuma, the MMB has not abandoned Vadhavan as a potential site. The location has the best draft in the entire state and with ship size dictating choice of the port, the state hopes that once the environmental and legal issues are sorted out, the site will be made available for a port. While a legal case against the verdict of the Dahanu Taluka Environmental Protection Authority (DTEPA) iscurrently being prepared, the state government has already appealed to the central government to change the regional plan of Dahanu, since it believes that no plan can be permanent and has to accommodate new developmental needs.

Realising that Vadhavan may take some time before all clearances are obtained, the MMB is looking at the possibility of developing other sites. Almost all the port sites identified - Dighi, Dabhol, Jaigarh and others - have very poor hinderland connectivity. The closest railway line is the Konkan Railway and the road link is the Mumbai Goa highway. Connections to both these points could cost port investors several crores, taking project costs to prohibitively high levels. Several potential bidders in review meetings in the past had indicated that funding for the basic project itself was extremely difficult and the state government should set up the ancilliary infrastructure.

Low cargo volumes has emerged as another area of concern for the MMB. Barring north Maharashtra and thechemical industry in the region around Dighi, very little of the cargo originates in Maharashtra. Ports south of Mumbai would therefore have to depend on hinterland cargo, of which there is very little. The fact that the Konkan Railway is running dry of cargo traffic is a good indicator of transport volumes in the region.

Dhumal conceeded that a port north of Mumbai will have to look at the way ports in Gujarat are developing. With the Gujarat Maritime Board (GMB) having a headstart over the MMB, the state has more than eight ports at various stages of development. Since the distance to these ports is less for the north bound traffic, ports in Gujarat could well walk away with most of the traffic. Acutely aware of where it stands, the MMB is now looking more at a long term scenario, where an increase in cargo volumes, clearer policies and an improvement in the environment for investors makes the projects more saleable.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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