Corporatization - Mundra vs Kandla Port

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This infographic intends to compare the growth of Kandla and Mundra Port depicting how Mundra overtook the Union government controlled Kandla port in terms of cargo handled. This serves as a good example of how corporatization has been the key to success for the Mundra port and it has been able to become the No 1 port of India leaving Kandla behind. Kandla port needs to take decisive actions to compete with fast growing private ports like Mundra: The time for Kandla to act is now!

There is a tide in the affairs of men.

Which, taken at the flood, leads on to fortune;

Omitted, all the voyage of their life

Is bound in shallows and in miseries.

On such a full sea are we now afloat,

And we must take the current when it serves,

Or lose our ventures.

Excerpt from Julius Caesar (Play): William Shakespeare

The essence of seizing the opportunity at correct times enables a man to achieve attractive outcomes; analogous to a ship’s passage is faster when accompanied by current of tides. This notion is aptly conveyed through this classic scene of Shakespeare’s play. Though the Indian major ports might not exactly be Caesar, with each passing day they are losing more and more traffic. Major ports are continuously losing the market share to non major ports and the Indian major ports now need to find their high tide to growth.

The major ports are central government controlled entities that are regulated by the policy framework and tariff ceiling. On the contrary, the non-major ports controlled by respective state maritime boards enjoy autonomy in terms of tariff fixation and a more competitive land acquisition policy. The result is that the 12 major ports have been snowballing downhill over the last five years.

Overall a long term strategy is required to emulate the global maritime competitiveness which encourages private sector and consequently both public and private sector can benefit from amalgamated business, social and economic benefits induced through port sector aided development. Corporatization of ports is an important step towards providing autonomy to the ports which will further help in creating fair inter-port competition. The fund-raising can also become easier for ports wherein they can float the issues and bonds by themselves. Ports will become free from the spending limits of government and they can plan their expansions by themselves. In this regard Ports don’t have to compete with investment proposals of other public ventures/organizations.


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