India plans to build seven ports by 2017, using 7.6 billion in public and private funds, according to reports
“The government has to lead the way in creating port capacity given the growth in trade,” Rakesh Srivastava, joint secretary at the Ministry of Shipping, told Bloomberg News. “Private sector is welcome, but the government won’t give up its responsibility.”
About two-thirds of the funds for the new facilities will be raised from private sector, Srivastava said. APM Terminals and DP World are among the companies that have invested in ports in India to benefit from a surge in trade.
India top container gateways, the ports of Jawaharlal Nehru (Nhava Sheva) and Chennai, in the last two months have experienced congestion, forcing ocean carriers to add surcharges and shippers to divert cargo. The bottlenecks reflect the infrastructure hurdles the country faces in raising its profile in world trade.
The government sent the proposal for the new ports to seven Indian states, Srivastava said. The plan requires the states to set aside about 2,500 acres for each harbor. He did not specify a schedule for starting the projects.
India currently has 13 major ports that are administered by the federal government. They together handled 561 million tons of cargo in the year ended in March 2010, according to official data.
India plans to triple its merchandise exports to $750 billion by March 2017 from $225 billion last year, according to the trade ministry.