In its initial study, the Cornell group has found that the problems that abound in Indian ports were unique and complex. The study says that a practical solution to the problem would be to reduce the financial dependence of ports on government funding. Some of the more difficult areas in the final report would be that of commercial style management and change in operating methods that had not changed in 50 years and dealing humanely with excess employment.

The study of cargo traffic at major ports has found that both import, export and trans-shipment traffic were on the increase in most of the major ports.About the economic impact of ports, Cornell group sources told The Financial Express that for every1000 TEUs (20-feet equivalent units) of cargo handled, 8.8 direct port jobs are created at the port, 19.7 jobs are created in the transportation sector, 59.2 jobs are created in the manufacturing and retail sector and resultantly for every 1000 TEUs of cargo handled, 79 jobs in total are created.

On the business side, the major ports handle 90 per cent of India's sea-borne trade and modernisation of Indian ports would make these ports cost efficient and make "exports more competitive in world markets.

Sources said the interim report of Cornell group was now ready and is likely to be submitted to ADB and MoST later this month. The final report is to be presented by August this year". The study attempted to determine the problems that inhibit the ports from moving towards a commercialised atmosphere and attempting to offer solutions.

It found that some of the ports were ready for such a move, but some were years away. Some were in reasonable financial condition while some were in dire straits and may nothave time to move towards a solution.

Cornell has been reviewing organisation, operations and port policies to determine if the ports were ready for the world of private enterprise without government intervention and subsidy.