Mr Vijay Goverdhandas Kalantri needs no introduction in any Indian industry. Being the President of All India Association of Industries (AIAI), Indian Council of Foreign Trade (ICOFT), Indo-Polish Chamber of Commerce & Industry, and Vice President of MVIRDC, World Trade Centre, Bowling Alley Association, and Indo-Mauritius Chamber of Commerce & Industry, his expertise and experience needs no elaboration too. THE MARINE WORLD recently met with the veteran industrialist, who also is the Chairman & Managing Director of Dighi Port Ltd.

TMW: During his recent visit to Mumbai, Secretary, Ministry of Shipping, Road Transport & Highways stated that our ports need to be empowered to carry on dredging independently. Do you think it would be a real help, or it appears bit improbable practically?
Mr Kalantri: Hon'ble Secretary, Shipping, Road Transport & Highways Mr APV Narayan Sarma rightly pointed out that Indian ports need to be empowered. We have some world class ports like JNPT and Mumbai Port. The amount of cargo handled by our ports is commendable and their performance can be increased if they are provided with better infrastructure and facilities. But all our ports are overburdened and badly need dredging and better infrastructure. If these ports are given autonomy they not only can carry out dredging on their own, but also develop their technology, automation and other facilities. Once they do that, their efficiency will go up and transaction costs will come down too. So the Government must empower the ports for these activities at the earliest.
TMW: Some in the industry opine that smaller ports and coastal transportation must be paid more importance, even prior to developing the major ports. Do you also think similarly?
Mr Kalantri: No, we can't afford to neglect the major ports. Government must strike a balance between developing the major ports, upgrading the minor ports and improving our coastal transportation.
TMW: What according to you should be the real roadmap to improve our ports?
Mr Kalantri: Ports have been attracting private capital of late. There is an urgent need for private sectors to volunteer to take up the responsibility. As far as port development is concerned, Gujarat has already geared up, while Maharashtra and Andhra Pradesh are following its footsteps. Remind you, most Indian ports are debt free.
When we talk about developing the ports, infrastructure and connectivity (by both rail and road) are vital aspects that need to be paid utmost importance. Better connectivity to major and minor ports will reduce the transaction cost and make them more user-friendly. High taxes, local problems and delay in implementation of various port development plans are some bottlenecks, which must be dealt with urgency.
The Union Government plans to double the total capacity of major and non-major ports in the country to 1,500 million tones per annum (mpta) from the current capacity of 750 mpta by 2012. Ports handle almost 90% of the export-import trade in the country. For India to facilitate a GDP growth of 10% in the next few years, large capacity addition in the port sector is a must. If the manpower shortage in shipping sector is solved, our trade will receive further impetus.
The present port capacity just manages to handle the prevailing levels of traffic, though ports are getting increasingly congested. The Planning Commission has planned to create surplus port capacity of around 30% by 2011-12. The Commission estimates that by the end of the 11th Plan, cargo traffic at major ports is likely to grow to 709 million tones.
The Indian trade and commerce is looking up and it is high time that our shipping sector is strengthened to carry out the EXIM trade.
Global merchandise trade is growing by around 15% a year. Containerization has helped in handling this trade in a secure and more efficient manner. Vessel sizes have increased to cater to increasing volumes. The draft (depth of sea) required to accommodate these vessels has increased from 9.1 m to 15 m in the last 38 years. As the length of these vessels has increased from 180 m to 399 m, the facilities available in the existing ports such as berths, turning circle, channel and so on have ceased to match the size of these vessels.
TMW: How do you rate Indian ports in comparison to major ports in other countries?
Mr Kalantri: Today, JNPT is a proven success. It is handling cargo transportation more than its capacity. Other ports are improving, but there are several bottlenecks as we have already discussed. India has already started globalization of its key industries and has also started eco-friendly projects. But unlike the private sector, our public sector undertakings take time to implement various policy decisions. So the key ports which are under government control need to grow and improve their efficiency.
TMW: Do you think MNCs are taking Indian shipping and logistics industries for a ride?
Mr Kalantri: MNCs have a monopoly due to their better efficiency, professionalism and ability to deliver the goods in time. Their quality standards speaks why they are way ahead than us. Unless our Indian companies improve and challenge the MNCs, the fact remains MNCs will take their pie, because that is quite natural in any business.
TMW: Do you think trade promotion and awareness are two weak links of our industry?
Mr Kalantri: I would not describe them as weak links. But we certainly need more efforts. Trade promotions are something which can boost our industry and meet its targets. We need to promote ourselves at the global forums and that must be done strategically so that we are at par with the best in the world market. Regarding awareness, we again need more efforts from the government side. In fact, awareness about the industry can entice the youths from rural and semi-urban areas to join the shipping jobs and that will help the industry lessen its burden of acute manpower shortage.
TMW: What are the major challenges before the Indian shipping industry and what do you think are the solutions?
Mr Kalantri: Global merchandise trade is growing by around 15% every year. There are several challenges before the industry. The Government must increase the Plan allocations and expenditures. Power tariff and extra transaction costs need to be decreased too. We have already discussed a few issues too.
TMW: There was a lot of discussion over SEZ projects and the expectations too appear to be quite high. Even a plan to follow Chinese models of SEZ was debated. Your comments.
Mr Kalantri: India's efforts to replicate China's successful development of Special Economic Zones began to generate controversy as soon as the policy came into force in early 2006. The government was forced to tweak the guidelines in the face of dire opposition. But because of social protests, the government has drifted from China's tested model to SEZs that are too small, too enormous, and too flexible in terms of labour laws to ensue success.
The average size of SEZs approved in India is merely a tiny fraction of what is okayed in China. The SEZ project in China's Shenzhen is a massive 327 sq km. Hence, when we plan to emulate the Chinese model of SEZ projects, size seems to be a major hurdle for us.
But if you ask me about the difference in our trade policies and why we don't taste success like China, then let us realize that people in China don't enjoy democracy like us.
TMW: Tell us something about Dighi Port.
Mr Kalantri: Dighi Port is situated 170 kilometres by road and 45 nautical miles by sea south of Mumbai. It is being developed as a multi-purpose, multi-cargo all-weather port, which would be operational round the year and round the clock, with deep draught direct berthing facilities and state-of-the-art cargo handling equipments with adequate stock yards & warehousing facilities, back-up areas & ample land.
It is the first Greenfield port in Maharashtra to receive the environment clearance and approval, apart from all other requisite permissions and approvals subsequent to conducting all the necessary studies and surveys. The substantial value addition has also materialized for the project since Dighi Port has also been accorded both in-principle and formal approval by the Board of Approval, Ministry of Commerce, for setting up a port based multipurpose SEZ inclusive of Free Trade Warehousing Zone (FTWZ). Simultaneously the Railway Board, Ministry of Railways has also accorded approval for the Rail Project which, in turn would ensure efficient rail connectivity for Dighi Port. The detailed survey for the rail connectivity having already been completed by ICONS, the experts on rail connectivity projects, the same would now be implemented to be co-terminus with the Phase-I port development plans.
The port is proposed to be developed in phases. Phase-I envisages the development of 5 berths for bulk/break-bulk/container cargo, dedicated coal and/or car berths, and a liquid/gas cargo jetty to handle large capacity vessels. HALCROW has already completed the detailed engineering design for berth number one. The port has already become operational having carried out exports of substantial volumes of bauxite cargo.
It is proposed to initially allocate land of 100 hectares for developing a port-based SEZ inclusive of a FTWZ, which would be scaled up further to 1,000 hectares subsequently.
TMW: Would you elaborate the MoU signed with the Belgian dredging company?
Mr Kalantri: Dighi Port Ltd and Belgian dredging major, Jan De Nul NV (JDN) have signed a MoU for undertaking dredging work at the port. The contract envisages 25 million cubic metres of dredging encompassing the approach channel, turning basin, and alongside the berths. The dredging operation will commence this year and will be completed by 2009, enhancing the depth to 14.5 metres, which in turn will enable Dighi Port to handle large capacity vessels and substantial volumes of export-import cargo. Subsequently it is also proposed to enhance the depth to 18 metres in a phased manner to berth higher capacity vessels. However, in the outer harbour wherein Dighi Port limits extend up to 29 kilometres, the nautical depths of 28 metres are already available.
(Interviewed by Anirudha)