Regulation and technology will be the key

Once free of TAMP, we are going to see how far that can change the operating practices to make the ports more efficient, says Saibal K De, Director & CEO, IF&FS Maritime Infrastructure Company, in an interview with Sumantra Das.

Can the concept of green port be a reality in India?
I think the "green port" is more of a concept now, however it will catch up once the long term benefits and sustainability of projects is recognised by the sector

Is there any progress on implementation of green norms at ports yet?
Even so, there is no component or special attention to the implementation/operating costs of green norms within the traffic structure stipulated by TAMP, as these entail additional costs, whatever that additional cost needs to be reflected in the tariff.

Really not much work has happened in this direction As per current regulations and laws relating to Indian maritime sector, there is no specific mandate that a port should employ only sustainable development methods in port operations and development activities. The stake holders continue to focus on capacity augmentation and de-congestion of the ports, while competing with each other for customers, traffic and reduction of operating costs.

Having said that, there is an honest and willing approach by port developers to develop Green ports / terminals and also implement and adapt sustainable operations. Even though there is a reluctance to change seen throughout the large ports, awareness and regulations can bring about a lot of positive actions on the sustainability front.

So, do you think abolition of TAMP may fasten implementation of green norms?
Yes, to a certain extent. I think if tariffs stipulated by TAMP are removed, then the first priority of the developers would be to look at the efficiency aspects. Once free of tariff stipulated linked to throughputs by TAMP, we are going to see how far that can change the specification or operating practices to make the ports more efficient. Once this is achieved, then only the concepts of green port will come in. As far as the non-major ports are concerned, green ports conceptually will be especially implemented to the extent of addressing the environmental and social impacts of the projects. Beyond that, I think the Greenport concept probably will catch on more when the port users are going to demand for it. So, essentially it will be more of demand driven.

What are the initiatives that the ports should take up to go green?
I think with the new-generation vessels which are more fuel-efficient coming to Indian coast may request some particular requirements at the ports which of course help to put an extra effort to go green. Secondly, the entire transaction at port, needs to be paperless. There are some ports who have already been instituted the same methodology, but that will need to be instituted throughout at all ports. The other aspects would be of course housekeeping of the project and using power efficient equipment. While it is quite difficult for older ports, in the newer ports those aspects are being taken care of.

Inland waterways in the country are not utilised properly. Given this situation, how coastal shipping will act as a catalyst?
Of course, it is in the interest of the industry to rely more on coastal transport and using the inland waterways in our county as it significantly reduces the cost of transportation and ease the existing burden on roads and rail, in addition to reducing environmental impacts substantially. But then this is something which we have been talking about so far. I can say it has just been started and probably in next five years’ time we will be able to see more of it. I am told that in the coming year Shipping Ministry will introduce more incentives on inland water transport and coastal shipping

But there is no major movement in that segment.
Yes, there isn’t any significant movement of cargo along the coastal / inland waterway routes. Regarding inland waterways, due to the routes passing through multiple States, there are multiple agencies involved in the regulatory and monitoring framework and thus it becomes difficult to implement and operate such project, but some work has already started in this direction. NTPC is already doing it so that one project is going to start soon.

Meanwhile, the government asked private port operator to facilitate coastal shipping, how far do you think that private players will show interest?
The private sector is interested in coastal shipping especially considering the logistical advantages and costs benefits to the end user. However, coastal shipping needs to be incentivised to improve its viability for the private sector to be able to invest in such initiative. Coastal shipping will see a completely a different group of players from the port developer/operator and while ports are more "infrastructure" sector and coastal shipping more a "service sector"

Will green norms be a solution for sustainability and cost for port operators?
Yes, green norms contribute to overall sustainability and operating costs of ports. As I had mentioned, for example, improvement of the operating environment by making paperless transactions does contribute to advantages in operating costs. Similarly, if there is economically viable renewable source of power available at the port then obviously that will be a positive on the port financials. Besides, if there is some specific operating measures which have to be taken, these will have to be demand-driven.

What will be the real drivers in the concept of going green?
I think the key drivers for promotion and implementation of green concept to ports will be technology and regulation.

Given this present global economic situation do you think Indian ports will show interest to follow green norms?
In the present global scenario, Indian ports are likely to focus on financial sustainability and hence I envisage Green norms are likely to be considered in the future. I believe, that the Green concept is very much recognised and appreciated by the sector. However, the ports face limitations for transforming the concept into operating practices and implementation is limited currently.