India Can Save $33.3bln If Trade Moves near to Ports
By Aiswarya Lakshmi
Sunday, February 12, 2017
India can save up to USD 28 billion in infrastructure spend and another USD 3.3 billion in transportation cost if 50 per cent of overall trade moves closer to ports by 2020, PTI said quoting an EY report.
The EY report "Knowledge Paper on Port Sector" said that India ranked as low as 126 out of 189 countries on total cost of trade while China and Germany are ranked at 98 and 18 respectively.
The non-major ports on the eastern and western coasts can play a pivotal role in port centric industrial development thereby achieving cost competitiveness through optimsation of network and logistics.
Backed with credentials, the report highlights the potential role of non-major ports on the east-coast of the country in leading the sustainable growth path for the country’s maritime trade.
Emergence of industrial clusters near the port, consolidations of distribution centers and warehouses post GST and directional distribution of cargo can address the infrastructural bottlenecks and can reduce the average in-land logistics cost by as much as 68 percent, it said.
While major ports are facing increased congestion owing to constraints in their ability to expand any further, non-major ports in India have a bigger scope for development, according to the report.
"For example, Mundra port and SEZ on the west coast is spread of 23,000 acres whereas Krishnapatnam on the east coast has a land bank of around 6,800 acres for the primary port area and another 13,000 acres was earmarked for industrial development. These ports also have drafts in excess of 18 meters on part with international standards, it said.