India: Ports seek cut in cargo target due to capacity constraints

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 May 2009

Slowdown blues have hit major ports across the country. After their slightly lower performance during 2008-09, the Ennore Port and Jawaharlal Nehru Port Trust (JNPT) have written to the shipping ministry to reduce their annual cargo targets. The department of shipping has assigned them higher targets for this financial year. JNPT — that carried only 57.28 million tonne (mt) cargo last year against a target of 63.5 mt — has been given a target of 67.88mt for the year 2009-10.
A senior JNPT official told Financial Chronicle that the cargo target for this year was not reasonable as there is capacity constraints at the port. “We have sent several letters to the ministry asking them to reconsider their targets. It’s not possible to meet them because of capacity constraint. Last year, we tried hard but could achieve only 57.28 mt, which is much lower than the target. This year’s target has to be reasonable,” the official said, requesting anonymity.
Ennore, which carried 11.50 mt cargo, compared to 11.56 mt in the previous year 1 has got a target of 12.45 mt.
“We are negotiating with the ministry to bring down the figures to last year’s level. We have already sent letters and held meetings. The present cargo trend is not very bright and it would be difficult to achieve the given numbers,” a senior official of Ennore Port said.
Port operators are also looking at capacity addition. JNPT has already shortlisted two companies including DP World for extending its existing container berth by 330 metres. It has also invited request for qualifications (RFQs) for a new container terminal.
The ministry official, however, is of the view that the targets set for the present financial year are reasonable. “The ports have been asked to improve their business strategies. We have held meetings with the chairmen of all ports and
they have ensured us that the targets would be achieved this year,” a senior shipping ministry official said.
After missing its cargo target by 8 per cent last year, the shipping ministry has decided to keep it moderate for 2009-10. The 12 major ports across the country have been given a target of 581 mt for this fiscal as against 576 mt in 2008-09.
According to the ministry data, only six major ports were able to achieve their targets last year. Kolkata, Visakhpatanam, Cochin and Mumbai are among those, which could not meet targets. The ministry has brought down the targets for Kolkata (including Haldia) from 60.2 mt to 56.11 mt and for Mumbai, from 61 mt to 53.46 mt this year.
However, for Visakhapatanam, it has upped the target from 64 mt to 67.09 mt this year. “The targets are set on the basis of anticipated traffic growth during the year and new projects. There are a number of infrastructure projects that would add capacity. It would help ports achieve their annual targets,” the official said.
For ports such as Chennai and Tuticorin, the targets have been lowered from 65 mt and 24 mt to 64 mt and 22.01 mt respectively. Even for ports such as Kandla, Goa and Paradip, the targets have been increased.
For Kandla port, which handled over 72 mt of cargo, the highest among all the major ports of the country, the target for this year is of 78 mt.

Source: Mydigitalfc.com