Good port infrastructure must for India to scale up trade

With India expected to emerge as a global trade hub over the next few years, an effective port infrastructure is vital to scale up the country's trade development, global consultancy firm Ernst & Young today said in a report.
       
"In the long-term, India is expected to emerge as an international trade hub. Effective port infrastructure is likely to play a vital role in determining the volume of export-import trade," the report on Coastal Shipping in India released here said.
       
According to the report, the use of larger vessels, construction of new ports, increased focus on coastal, inland transportation and government support are likely to drive the demand for dredging, both capital and maintenance.
       
"Governments plan of constructing new ports and expanding existing ports to support the expected increase in traffic is likely to create opportunities for capital and maintenance dredging in India," it said.
       
The government's ambitious Sethusamudram Ship Channel project and its plan to develop coastal shipping and Inland
Water Transport (IWT) are expected to open avenues for dredging in the country, the report said.
       
Citing a report from National Maritime Development Programme (NMDP), E&Y said that out of the total port development expenditure of Rs558 billion, the expenditure earmarked for the dredging of all major Indian ports by FY12 is estimated at Rs63. billion.