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Competition may deepen in port sector

Competition may deepen in port sector
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Industry experts feel that the extent of competition in the port sector in India may deepen and broaden further on completion of the ongoing port projects.

Major ports in India are facing very keen competition from the neighbouring non-major ports, both in respect of quality of services and in price, they argue.

Newly emerging non-major ports, namely Krishnapatnam, Gangavaram and Dhamra, have already handled 21, 14 and 11 million tonne cargo, respectively, during 2012-13.

Moreover, the number of development projects coming up at non-major ports in the ten maritime states in India would clearly suggest that the partial monopoly enjoyed by the major ports in India about 16 years ago has almost disappeared.

In the field of container traffic, the competition appears to be more intense. In JNPT three container terminals are now in operation and there is intense inter-port competition among JNPT, Mundra Port, Pipavav and Hazira.

There is already keen intra-port competition among the three container terminals in JNPT, as a result all three terminals appear to have exceeded their installed capacity, experts argue.

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