Port LED Shipping DEVELOPMENT

What a misnomer?! Silly, considering stupendous effect -mirage creation, destroying environmentally virgin areas, displacing indigenous tribes in Andamans. As if existing -ports & terminals- aren’t enough! Vizhinjam another one with hefty tax concessions and contributions from government that has lost its clue and its marbles.

Setting traps for trade with monopoly, oligopoly and hidden costs, blackmailing them in the hinterland. Whither Sagarmala with ports 100miles apart, to decongest cities/metros that had outgrown- prospered around old colonial ports, and to spread coastal development with new settlements of modern facilities a la Paradip planned layout. Shut down old metro ports like Mumbai and convert into Bullet Train depots, and not labour intensive (that’s JNPT’s call) as commuting congestion and pollution are unbearable.

First things first. Clear backlog of cases in Courts of ports, Tamp and new Maritime Authority. If not good possibility that established players being unfairly penalised will pack up/ exit as they are well ensconced elsewhere globally with reliable good market shares. Ours is only peanuts in such context. Wasn’t it incorrect to change terms of contract-lease after it was bid and awarded? Wasn’t it injustice to provide new tenderers for new projects with easier terms, enabling them `steal’ and undercut the original-neighbour lessees’?

Who pays initial dredging costs and maintenance dredging add-ons? What about new approach roads & linkages? What about existent pollution control & norms in offing? Automation does fall foul of old/existing labour contracts. Can Port Trusts mollify labour or continue milk newies for their ole sins & concessions, from new concessionaires?

Wasn’t Port Charges converted to US$ on liberalisation at then prevailing exchange rate and is still used to calculate Vessel Related Charges making Indian Ports costliest with poor facilities? It is citizens who pay for all pass-on/other costs that get reflected in `inflation’ upsetting ‘real cost’ budgets-revenues.

Back to elementary economics, dear mandarins. Go with Keynesian economic promotion drive promoting infrastructure with multiplier and trickle-down benefits to make trades competitive for exports and imports to balance, to serve humungous populace soonest. Not to evade environment responsibilities and Poseidon principles. CSR could sound like doing a favour; leave it to promoters-operators to serve displaced and affected stake holders.

True, ports do much local- spread out hinterlands as in ole cities. True too that trade chooses where to pass through purely on costs/transit facilities including storage to hedge markets, rules-regulations facilitating and not impeding! Old LILO of liners morphed to FIO/FOB/FOB trimmed lashed secured etc due to port problems, passing such costs to Indian exporters and importers. Insurance too a mess, as some of the trade is reportedly taking no cover to cut costs.

Yes North Sea stalwart STENA has inked a deal till 2100. That’s the way to go, if we can lock in users and revenue streams to raise funds and list the Stocks imparting economical confidence as we steam heading growth charts. Greenbacks aside, Blue funding, Green CII compulsions, new Green Steel and US calls for Ownership disclosures from ’24 are game changers. Indian juggad, jadoo etc won’t do.

Yes Minister, dilute red tapism, educate administrators to be facilitators to solve misunderstandings as amiable compositeurs instead of wearing bandana filter. Yes there are few Cargo led port/terminal developments. SANMAR’s is 25+yrs old; JSW in flow. Industries will develop captive ports. No need promote/fund them; do fast-track them but Identify newer locales on depth, access, multimodal linkages. Change mindsets from ‘rent seeking’ ‘Landlord’ models. Lay out red carpets to walk in, develop ports in underdeveloped areas with backups of warehouses, CFS, ICDs, etc. Ports is joint Centre-State subject; States are active; were in ship-owning too.

Finally, are spin-off Shipyards and Repair Facilities being juxtaposed -at least in talks-for synchronised development? Myopic long-sight to say the least; time for cataract surgery! All those who had ventured into yards and repair backups are ruing in retirement.

An IMEI report states that about 65% of building costs are equipment and fittings, the rest steel, welding and assembling. Hence, what’s India’s core competency? Yes, there is scope for few very specialised ones with foreign collaboration; but the numbers are in small coastal vessels and river barges that are not cheap to import, having to `drive’/sail them down. IRS could lead to design energy efficient ones on a macro scale.

Wasn’t Hindustan pioneers in building, Wadias and all? A foreign Class head visiting Beypore with a young Naval Arch, on observing ongoing frugal boat design there praised that they were mathematically accurate. Did they need `built’ under Class or ISO standards? Have historic Yukti Kalpataru evolved Lothal & Mandvi of repute that served colonisers transforming to Alang?

Please refocus. Discuss with trade and would be users, abandon the old bureaucratic policy mindsets that saline issues can be solved in dry lands in mirage and haze. Take care. Amen.

Marex Media