Seaports and airports - transport infrastructure, Microeconomics

Seaports and Airports:

Seaports India has 12 major ports and about 185 minor ports over its coastline spread over 7,000 kms. Major ports are managed by the Central Government and account for over 75 per cent of total cargo. Minor ports are managed by the State governments and account for the residual 25 per cent of cargo transportation. After the 1991 economic liberalisation, on an average, the sector realised a growth rate of 6.22 per cent.  A number of changes are taking place in the ports sector. After economic liberalisation, private investment is encouraged in this sector. This typically takes the form of private parties setting up terminals at existing ports. Such terminals have come up at Marmugao (JLNPT) and at Tuticorin and a new one is coming up at Kochi. Foreign collaborators have shown interest in setting up these terminals and the Australian P&O and the Port Authority of Singapore are among the investors already present.  Growth rate of traffic handled by major ports has accelerated in recent years, partly because of booming exports and partly owing to the new investments and consequent better efficiencies. Despite this, the volumes of cargo handled by India's biggest ports are small in comparison with international ports like Singapore, Hong Kong and Rotterdam.   


Mumbai and Delhi account for the largest share of all air traffic (domestic plus international) in India.  Airports are under the management of Airports Authority of India. Private investments are to be drafted for the upgradation of the four major airports (Delhi - Mumbai - Kolkata and Chennai). New 'greenfield' airports under private ownership are coming up at Bangalore and Hyderabad.  A new airport promoted by Kerala State Government has come up in Kochi with private investor participation.  There is large scope for expanding airport traffic, especially on the cargo side. This requires modern handling facilities and adequate infrastructure. Passenger traffic is also  increasing rapidly with recent changes in policies relating to 'Inland travel tax' and duties and taxes levied on aviation fuel. A new policy framework that permits private airlines to operate international  

Posted Date: 11/10/2012 7:33:35 AM | Location : United States

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