Infra projects for MPT to help boost exports: FIEO

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SME Times News Bureau | 28 Jun, 2014
Slew of projects for 1800 acres under Mumbai Port Trust (MPT) would spruce up waterfront and also commissioning of 4th terminal at Jawaharlal Nehru Port Trust (JNPT) could streamline movement of containerized traffic from hinterland, said M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO).

Union minister for road transport, highways and shipping, Nitin Gadkari on Thursday announced projects to come at 1,800 acres under MPT along the eastern shore of the city.

While commenting on the announcement of a slew of projects to come up under the Mumbai Port Trust, along the eastern shore of the city stated that this, in addition to commissioning of the ports 4th terminal will raise its capacity to over 11 million TEUs equipping it to handle more containerized cargo than the existing 55 percent primarily originating from or destined for Maharashtra, Madhya Pradesh, Gujarat, Karnataka as well as most of North India.

Major exports from the JNPT being textiles, sporting goods, carpets, textile machinery, boneless meat, chemicals and pharmaceuticals, whereas the main imports are chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminum and other non-ferrous metals. This would also contribute to the pace of cargo contanerisation which is about 20 percent annually as against over 70 percent in developed countries.

FIEO chief stated that for the existing container terminals land side infrastructure for road, parking; need for second stage of dredging to enable larger vessels to make JNPT a port of call is also required. While the port is connected to three major highways – Mumbai-Pune, Mumbai-Goa and Mumbai-Agra by 43 km of internal road network, the movement and evacuation of cargo continues to be a problem in peak season and upgrading of existing four laning to 8 to 12 lane to evacuate/move 8 to 10 m TEU's of cargo is much needed to cater to the volume of traffic. The implementation of the Dedicated Freight Corridor is anticipated to streamline 50 percent of the cargo movement out of the port.

Given is long relationship with liners as a port of calling, JNPT clearly stands to gain in the container trade with shifting of production of many auto and TNC's and is bound to play a critical role in further development of trade in the continent. It also has the capacity to attract funds from overseas markets given its zero debt balance sheet AAA rated bonds.

President, FIEO stated that a stimulus to infrastructure projects such as this would boost core infrastructure sector which constitutes 37.9 percent of IIP which had contracted for two months in a row to a low of 0.5 percent.