panel has recommended that no new port be allowed in 100 km vicinity of top
ports without a permit from board.
The recommendation comes at a time when the 12 major
ports are losing about 33 percent market share to non-major and private ports,
which have developed in the surrounding areas.
This initiative will help stop the negative growth
registered by the major ports in competition with the non-major and private
“New ports are coming up in the vicinity of major
ports affecting their business and profitability. The committee therefore
recommends that no new ports be established in the 100 km vicinity of existing
major ports without the permission of board..,” Parliamentary Standing
Committee on Transport said in its latest report.
“The major ports have lost around 33 percent of their
market share in the last two decades. Moreover, transshipment of containers is
taking place in foreign ports such as Colombo, Singapore which causes great
loss to Indian ports,” it said.
India has 12 major ports under the Centre – Kandla,
Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore, V O
Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) which
handle approximately 61 per cent of the country’s total cargo traffic.
Apart from this, there are about 200 non-major ports
and private ports in the country.
The 31-member committee, chaired by Mukul Roy has
given its recommendations after examining the Major Port Authorities Bill,
2016, referred to it by the Rajya Sabha Chairman on January 12 this year.
The bill seeks to provide greater autonomy to the 12
ports in decision-making besides repealing of Major Port Trusts Act of 1963.
The committee said the need for restricting new ports was felt as there has
been a paradigm shift with non-major ports and private ports accounting for
more than 40 per cent of market share of the cargo handled.
The 12 ports handled a record 647.43 million tonnes
(MT) of cargo in 2016-17 registering an annual growth rate of 6.79 per cent
against 4.32 per cent in 2015-16.