Emergence of industrial clusters near the port, consolidation of distribution centres and warehouses post GST can address the infrastructural bottlenecks and reduce the average in-land logistics cost by as much as 68 per cent, according to a research report on the maritime sector.

The report released by Ernst and Young (EY) in association with the Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) at the East Coast Maritime Business Summit on Friday said some of the major ports have land constraints limiting their ability to expand as well as promote port based industrial zone. The study also claims that non-major ports have much bigger land banks and have better infrastructure.

Kiran Malla, director (corporate finance and strategy), EY India, said “If India has to become a superpower by 2030, it has to get ready to make the next big leap in trade. Fortunately, it has a strategic advantage in terms of long coastline which can serve as a backbone for trade. Right strategy would be to create economic epicentres around modern ports with world class infrastructure.”

In order to reduce costs arising from infrastructure bottlenecks, several private non major ports have developed close to demand clusters, the report said, adding that they are also implementing new concepts to reduce logistics costs. According to the report, non-major ports are also to lead on cost optimisation with improved productivity and cutting edge technology ushering Indian ports onto the world stage.

Potluri Bhaskara Rao, APCCIF general secretary, said, “Indian maritime trade has been drawing attention both at home and globally on the back of improved trade and a series of measures launched by the government to transform the port sector while establishing the country as a major manufacturing and trading hub. This research aims to highlight key opportunities and challenges in the ports sector. It also attempts to showcase the vast opportunity present in the ports sector, especially on the east coast.”

Source: TNN