The new year is upon us. What positives are we carrying into it? With infrastructure development being a key way to spur an economy,
what more needs to be done? What opportunities are likely to unfurl in the near future? CW (Construction World magazine) examines the core sectors in their Cover Story “FORECASTING CONSTRUCTION & INFRASTRUCTURE IN 2022”
Mr Rajiv Agarwal Operating Partner, Infrastructure, Essar, and Managing Director, Essar Ports share his views with Construction World magazine. Here are excerpts from the interview.
WHAT GOOD HAS HAPPENED?
The Ministry of Ports, Shipping and Waterways has undertaken measures to boost the sector and the economy, lower the cost of logistics and improve the country’s competitiveness in the global market, observes Rajiv Agarwal, Operating Partner, Infrastructure Essar, and Managing Director, Essar Ports. “Key initiatives include bringing projects up for competitive bidding during the past year and developing a pipeline of projects for bidding, paving the way for mechanism and efficiency. The Government is focusing on port connectivity projects under Sagarmala. The Major Ports Act 2021 will enable private players to fix tariffs based on market conditions, boosting fresh investments and growth. Gati Shakti will pave the way for holistic development across different ministries, easing coordination and ensuring effective implementation. The launch of the Maritime Vision 2030 will pave the way for global maritime leadership. The NIP and NMP will enable the infrastructure support required for Atmanirbhar Bharat.”
WHAT MORE NEEDS TO BE DONE?
Private terminals are looking at flexibility of old concessions in major ports (under different tariff regimes) to put them on an equal footing with new concessions in major and non-major ports, says Agarwal.”Port project finance needs more government support as banks are averse to supporting new investment in ports.” Agarwal wants the government to promote and empower infrastructure finance companies to fund port projects. Also, mechanisms to enable flexibility in long term concessions to ride out evolving market dynamics and other risks impacting projects and operations.
DEVELOPMENTS TO LOOK FORWARD TO
“At Essar, we are investing in infrastructure and resources to stay future-ready, to ensure the visibility of cargo, to handle cargoin the most efficient and environment-friendly manner and to speed up the turnaround of bigger vessels, to lower the logistics cost, continues Agarwal. “With over 50 years of experience, being pioneers in the art of end-toend supply chain management offering total logistics solutions, we will continue to expand in the existing line of business and develop new assets. We aspire to continue to deliver state-of-the-art solutions with a sustainable advantage to our customers. Diversification through service offerings, customer mix and cargo will play a pivotal role.”
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“Port project finance needs more government support as banks are averse to supporting new investment in ports.”
Rajiv Agarwal Operating Partner, Infrastructure-Essar, and Managing Director, Essar Ports
Source: Construction World magazine