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Government Mulling to Set Up Low Cost Non Major Ports to Boost Coastal Trade

News: 

Concerned over lack of berthing facilities at ports forcing ships in India to spend 70 per cent time waiting and only 30 per cent in voyage, the government is planning to set up low-cost non-major ports along coastline under the Sagarmala project. To boost coastal shipping in the country, it has asked all the 12 major ports to accord priority berthing to such vessels and facilitate faster movement of cargo, as a short term measure.

Source: ET

SNP Infra Research: 

The move to allow priority berthing of Indian vessels at major ports can certainly help in boosting coastal shipping. However given the existing shortage of cargo handling capacities at Major Indian ports, it may impact the imports of crucial commodities thereby giving opportunity for non major ports to capture the share. To address this it becomes imperative to fast track the development process of Major Indian Ports along with the addition of low cost non major ports on the Indian coast line.

Source: SNP Infra Research