Labour unions in some of the major ports in the country are opposing privatization of cargo-handling activities for fear of losing jobs.
India has 12 major ports, which are controlled by the union government. The shipping ministry has planned to implement several port projects on public private partnership (PPP) mode, thereby attracting private investment in the sector.
However, labour unions in some major ports demand that the capacity expansion plan be financed by the ports themselves from internal resources without relying on private funds.
Their fears have been borne out by the fact that the number of regular workers at the 12 major ports declined below 51,000 from nearly 100,000 about a decade ago when the port privatization programme was flagged off.
Meanwhile, another challenge faced by the shipping ministry is the declining interest of private developers in bidding for port projects. The low bidder turnout and the single-digit price quotations should be a cause for worry for port authorities in awarding contracts because it will lead to allegations of selling port assets cheaply, experts warn.
Under this situation, it remains to be seen whether the shipping ministry is able to attain its target of awarding 30 projects, entailing Rs 24,633 crore investment in 2013-14. Through these projects, the ministry aims to add 288.48 million tonne cargo handling capacity across major ports.
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