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‘Port sector added record 94 mtpa capacity in FY16’

India added 94 million tons per annum (mtpa) capacity in financial year 2015-16 through 34 capital investment projects which is the highest in the history of the major ports.

Nitin Gadkari, Union Minister of Shipping, Road Transport and Highways, said financial year 2015-16 has been historic for the port sector in the country, with 94 mtpa capacity added through 34 capital investment projects.

The minister informed that state-run Kandla Port became the first major port to reach 100 million tons (mt) of traffic in a year which showed a 20% improvement in port efficiency while Jawaharlal Nehru Port Trust (JNPT) became the first major port to reach Rs 1,000 crore in net profit, an increase of 12% over the previous year.

Paradip Port achieved the highest coal loading volumes of 24 mt with 30% efficiency improvement. It added 50 mtpa of cargo handling capacity, which helped to generate high returns for ports with comparatively low investments. 

Gadkari informed that operating profit margins for major ports improved from 27% in FY2013-14 to 39% in FY2015-16. The major ports increased their operating profits from Rs 3,593 crore in 2014-15 to Rs 4,268 crore in 2015-16, registering an increase of about Rs 670 crore.

He further added that that efficiency improvement has lowered logistics costs for the trade, creating an estimated benefit of Rs 400-500 crore per year and turnaround time has reduced by over 40% at Paradip, Tuticorin and Vizag. Gadkari said projects worth Rs 72,818 crore have been awarded for port modernisation and new port/terminal development. 

While emphasising on the need for pushing port and port-led development, Gadkari said that the forthcoming Maritime India Summit would be a game changer. Port-led development has the potential for direct employment generation for 40 lakh people and indirectly for 60 lakh individuals.