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JULY 31, 2005
 Cover Story
 Editorial
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Redefining Consumer Finance
Jurg von Känel, a researcher at IBM's J. Watson Research Centre, and his colleagues are working on analytical software that would
simplify consumer finance
and make it more secure as well. An oxymoron? Känel doesn't think so.


Security Check
First, it was Mphasis. Then, the Karan Bahree sting operation by UK tabloid, The Sun. The bogey of data security appears to be rearing its ugly head in right earnest. How can the Indian call-centre industry address this challenge?
More Net Specials
Business Today,  July 17, 2005
 
 
PORTS
BOTTLENECKED
India's port infrastructure is creaking at the seams. This could undermine the government's export target of $150 billion by 2008-09.
Crucial doorway : The Chennai Port, like the rest of its ilk, is antiquated and expensive

India is steadily emerging as a global auto manufacturing hub. The government harbours ambitions of replicating China's model of becoming the world's factory. But port infrastructure, that crucial doorway to the global marketplace, doesn't support these grandiose dreams. The harsh reality: Indian ports are small, antiquated, bureaucratic and expensive. In Chennai, Hyundai complains that apart from the capacity crunch at the city's port, it also has to pay through its nose to send cars out, thereby partially neutralising the cost advantage that India provides. Says S.S. Rangnekar, Director, Shipping Corporation of India: "Indian infrastructure is woefully inadequate, not only in the ports but also in terms of road and rail linkages (to ports)."

The good news is that government is alive to these problems. It has drawn up an ambitious Rs 60,338.53-crore plan (individual break-ups below) to expand capacities and to bring Indian ports up to global standards. This investment will help increase existing (2004-05) traffic flows of 384 million tonnes (MT) to 706 MT by 2013-14. Total port capacity will then be 918 MT. This is in keeping with the international benchmark of having 30 per cent excess capacity in order to avoid congestion and delays.

Global Dreams, Local Problems
Here's a peek at what's going on in some of India's major ports.

VISAKHAPATNAM, Andhra Pradesh

Capacity: 50 MT
VESSEL SIZES: 1,50,000 DWT
TURNAROUND TIME: 3.2 days
INVESTMENTS: Rs 3,544 crore
DWT: Dead weight tonnes

Visakhapatnam is essentially a bulk cargo handling port. Users feel it is quite safe as it has no mafia, but complain that the port lacks adequate storage space. Adds a Vizag Steel Plant official: "The depth of the channel should also be increased to facilitate the entry, exit and handling of Panamax vessels at the inner harbour berths." The authorities are aware of these problems. "Tenders are being floated for the development of storage sheds and warehouses," informs Visakhapatnam Port Trust Chairman K. Ratna Kishore. Plans have also been made to deepen and widen the inner harbour entrance channel in two phases. According to officials, the volume of traffic is expected to increase to 84 MTPA by 2014. The port mainly handles iron ore, pellets, POL (petroleum oil lubricant), coking and thermal coal, fertilisers and some general cargo.

KANDLA, Gujarat

CAPACITY: 42 MT
VESSEL SIZES: N.A.
TURNAROUND TIME: N.A.
INVESTMENTS: Rs 4,985 crore

Kandla Port, which is located in the Kandla creek, is a protected natural harbour, and mainly serves the states of Gujarat, Rajasthan, mp, Haryana and Punjab. The port, which has 11 operational cargo berths at present, handled in excess of 40 MT of exports and imports for the third year running in 2004-05. It is now looking to expand capacities in a big way: it plans to add nine additional berths over the next five years and is also partnering with public and private sector companies to set up additional cargo handling facilities. According to Kandla Port Chairman, A. Janardana Rao, the best way to grow is through public-private partnerships. The major problem Kandla faces is one of limited draught, but the new facilities will enable the port to host vessels with displacements of up to 90,000 tonnes.

CHENNAI, Tamil Nadu

CAPACITY: 44 MT
VESSEL SIZES: 175,000 DWT
TURNAROUND TIME: 2.5 days
INVESTMENTS: Rs 2,174 crore

The Chennai Port is often crippled by strikes. The infrastructure is also near breaking point. Says an official of Toyota Kirloskar Motor, which exports cars from the port: "Our volumes have jumped from 1,120 in 2000 to 8,189 in 2005, but facilities at the port just haven't kept pace." The customs department works only five days a week. This means ships arriving at the port after office hours on Friday have to wait till Monday morning for clearance. Admits K. Suresh, Chairman of the port: "We can't really compare ourselves with global hubs like Singapore."

MORMUGAO, Goa

CAPACITY: 31 MT
VESSEL SIZES: 275,OOO DWT
TURNAROUND TIME: 1.65 days
INVESTMENTS: Rs 808 crore

The Mormugao Port, which handles 40 per cent of India's iron ore exports, is really stretched; a single crane breakdown means delays of a few days. Admitting this, Mormugao Port Trust Director S.S. Keshkamat says the port is operating at over 100 per cent capacity. Another major problem: truck thoroughfare to the port is restricted; this cripples large cargo movements. "With the increase in iron ore exports (which constitute 80 per cent of the port's traffic) it has become necessary to create additional berthing capacity," she says.

KOCHI, Kerala

CAPACITY: 16 MT
VESSEL SIZES: 100,000 DWT
TURNAROUND TIME: 1.5 days
INVESTMENTS: Rs 7,885 crore

The Kochi Port is often criticised for being unable to handle the seafood and spice exports that pass through it. According to the Seafood Exporters Association of India, over 300 containers, each carrying 20 tonnes of cargo, were stuck at the port for weeks last year, owing to heavy congestion. Says Kochi port Chairman Jacob Thomas: "The problem happened due to a breakdown in equipment and a surge in exports. Since then, we have had no issues and we plan to become a regional hub in four years."

TUTICORIN, Tamil Nadu

CAPACITY: 16 MT
VESSEL SIZES: 50,000 DWT
TURNAROUND TIME: 2 days
INVESTMENTS: Rs 3,000 crore

Tuticorin Port, which is spread over 2,500 acres, is not easily accessible. The closest airport is in Madurai, around 170 km away. The port, which is operating at over 100 per cent capacity, doesn't have any space to spare, says Tuticorin port Deputy Chairman T. Balakrishnan. But the Sethusamudram Project and the plans to deepen the anchorage point and widen the port entrance are expected to improve the situation. Further, the single lane approach road is being four laned to provide easier access to the port, which handles commodities like coal, fertilisers, salt, rice, sugar and stone.

KOLKATA-HALDIA, West Bengal

CAPACITY: 46 MT
VESSEL SIZES: NA
TURNAROUND TIME: 2.94 days
INVESTMENTS: Rs 6,238 crore

The Kolkata Port has two dock systems-the Kolkata Dock System and the Haldia Dock System. The biggest problems: high turnaround times and low draught. Says A.K. Chanda, Chairman, Kolkata Port Trust: "Our problems are not understood because we are the only riverine port in the country." A CII official complains that the port is over-congested. The roads leading to the ports are also in very poor shape. Tea, leather goods, jute products and processed foods are the main items handled here.

PARADIP, Orissa

CAPACITY: 30 MT
VESSEL SIZES: 70,000 DWT
TURNAROUND TIME: 2.72 days
INVESTMENTS: Rs 2,405 crore

The Paradip Port handles iron, manganese and chrome ores, fertilizers and charge chrome. Its advantages: the absence of rocky bottoms and a tranquil harbour. But its problems far outweigh these pluses. Admits Subrat Tripathi, Deputy Chairman of the port: "Three things are vital to a port's functioning: smooth entry, storage and exit of cargo." He adds: "Our performance has been hampered by poor road and rail connectivity." The two main roads connecting Paradip to the rest of India witness daily jams. These are being four-laned and will be ready next year. A four-track freight service linking Paradip with Cuttack will also be ready next year. Till then, users will continue to suffer.

JNPT, Maharashtra

CAPACITY: 33 MT
VESSEL SIZES: 85,000 DWT
TURNAROUND TIME: Less than 1 day
INVESTMENTS: Rs 15,877 crore

Jawaharlal Nehru Port Trust (JNPT) is located in a deep, natural harbour and has sufficient back-up area that can accommodate any expansion plans in the foreseeable future. Its average turnaround time of less than one day is the shortest in India and comparable to any major port anywhere in the world. According to Ravi Budhiraja, Chairman, JNPT, there is no congestion at the port. But it faces a shortage of container handling capacities and lacks back-up infrastructure for ship repairs. Extortion by the local mafia is also a problem here. The port handles 60 per cent of India's containerised traffic.

MUMBAI, Maharashtra

CAPACITY: 35 MT
VESSEL SIZES: NA
TURNAROUND TIME: 3 days
INVESTMENTS: Rs 1,948 crore

This 130-year-old port has been long associated with shipping in Mumbai; the city alone contributes 28 per cent of its total traffic. Ankit Miglani, Director, Uttam Galva Steel, has no complaints about this port, which he uses for both exports and imports. "The port is extremely efficient and functions very smoothly. The clearing doesn't take very long," he says. The ample space it has is a huge plus and ensures that there are no unnecessary delays. This is what sets it apart from most other ports in India. Mumbai port is used mainly for bulk and liquid cargoes and also runs and operates its own railway.

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