Industries & ports – leading the socio-economic development
A paper presented recently by a leading international consultant, Mantrana Maritime Advisory PVT Ltd., at the INMEX conference and exhibition, made out a strong case for linking development of both industries and ports for the overall economic growth of a region. Having involved in the preparation of detailed project reports for various infrastructure projects in different countries Mantrana Maritime points out that in China, UAE, Singapore and other countries, it is the synergy of ports, port-related industries and special economic zones (SEZ) that has severed as the driving force for their industries.
Anand Sharma, Director of Mantrana Maritime Advisory said, “These entities collectively contribute to the overall socio-economic and industrial development of the region. For example Jebel Ali and many other regions, the industrial growth to a large extent is driven by the ports and associated free trade zone. However, in India, it is noted that policy and regulatory frame work deter Indian ports from making as favorable impact as the aforementioned international ports do.”
However, in India there have been some exceptions stated Mr Sharma. For example despite these limitations the ports of Gujarat state, with support and backing from the state’s Gujarat Maritime Board (GMB), have created a landmark for themselves. Presently, it handles more than one-third of India’s seaborne trade. It was the industrialization of Gujarat supported by the favorable policy of GMB that has led to the development of state and gave Gujarat the highest share of India’s EXIM trade. The state has a long coastline and it made reasonable sense to develop ports catering to every conceivable stretch of that coastline. The combination of sufficient gateway for the cargo required and generated by the industries has justified the operation of so many ports in Gujarat.
Taking up a specific case Mr Sharma refers to Sikka port which handles 110 tonnes of liquid cargo that is about 12% of the total port traffic. This he says can be considered as an ideal example where industry and port together make larger economic benefit. It has been built and operated by Reliance and turned out to be a big success owing to the favorable port policy for private developers. No other refinery in India has been able to achieve such a phenomenal growth. Similarly, there are several such industries specific marine facilities in that state which have benefitted from the industry favorable port policy of GMB.
For states looking to develop ports rampantly, the paper suggests it may be worthwhile to consider the pros and cons of the GMB promotional measure. The same set of fundamental parameters may not necessarily exist in other states. These states need to focus on creating an atmosphere where ports are created to support an industry. Both industry and ports would have to co-exist. In the absence of it, all the ports would be fighting for the same cargo. As a result of the close interaction between the industry and the ports, Gujarat has created a ‘niche ports’ to cater to every need and these ports normally do not compete for the same cargo.