Mr Rajiv Agarwal, Managing Director & CEO, Essar Ports, shares his views on PORT INFRA – ‘Modernisation initiatives’ and ‘Major Challenges’ for Construction Times’ cover story
MODERNISATION INITIATIVES
According to Rajiv Agarwal, MD & CEO, Essar Ports, policy measures have played a crucial role in supporting Indian port infrastructure development. “Initiatives such as the Sagarmala Program, Maritime India Vision 2030, and Blue Economy 2047 have provided a strategic framework for port infrastructure projects. However, further steps are necessary for the continued enhancement of port operations,” he says.
MAJOR CHALLENGES
According to Agarwal, the Indian ports sector has undergone remarkable advancements in recent years, witnessing significant improvements in both infrastructure and cargo handling efficiency. “However, challenges remain, including low-cost funding, and last-mile connectivity issues. There is a need to invest in advanced technologies to further optimise port operations and develop green hubs with a focus on renewable, LNG, ammonia, and smart ports.”
Elaborating on the challenges, he says, “Port infrastructure development in India faces several noteworthy challenges. The pertinent problems that require prompt action are inadequate last-mile connectivity, congested road & rail networks, enhanced utilisation of existing infrastructure, scarce investments in port modernisation & expansion projects, unavailability of long-term & low-cost financing options and the streamlining of regulatory procedures.”
“There is a need to invest in advanced technologies to further optimise port operations.”
Mr Rajiv Agarwal, Managing Director & CEO, Essar Ports in an exclusive interview with Construction Times magazine.
Below are excerpts from the interview.
Q.- India needs deep draft ports to attract larger ships. What steps has Essar Ports taken in this regard?
At Essar Ports, we recognize the significance of deep draft ports in attracting larger ships and facilitating global trade. To address this need, we have made substantial investments in developing deep draft terminals at our port facilities. Our terminals are designed to efficiently handle large vessels, accommodating Capesize vessels for carrying dry bulk cargo up to 200,000 DWT and VLCC vessels for liquid cargo up 320,000 DWT.
By offering sufficient depth and state-of-the-art, eco-friendly cargo handling infrastructure, we aim to support the growth of maritime trade and ensure uninterrupted service for our customers. We have been instrumental in the development of 168 MMTPA port capacity in India with similar infrastructure.
Q.- Hinterland connectivity plays a major role in cargo movement to and from the ports. How do you view this, and what connectivity enhancements have been implemented at your facilities?
The smooth cargo movement to and from ports heavily relies on hinterland connectivity. Recognizing this significance, the facilities developed by Essar have multimodal connectivity solutions enabling cost-effective logistics. Along with road and rail connectivity, our facilities are equipped with an integrated conveyor system, ensuring end-to-end logistics solutions for sustainable business of our customers. These connectivity enhancements significantly contribute to improving overall port efficiency and customer satisfaction.
Q.- How effective are policy measures in supporting Indian port infrastructure development? What additional steps are needed for further enhancement of port operations?
Policy measures have played a crucial role in supporting Indian port infrastructure development. Initiatives such as the Sagarmala Program, Maritime India Vision 2030, and Blue Economy 2047 have provided a strategic framework for port infrastructure projects. However, further steps are necessary for the continued enhancement of port operations. Creating regulatory procedures with an enabling framework that fosters private sector participation and improves ease-of-doing business can attract more investments in the port sector. Enabling green hub development, embracing digital technologies, automation, and smart port solutions with incentives will further enhance operational efficiency and promote sustainable growth in the sector.
Q. – How do you assess the current scenario of the Indian ports sector in terms of infrastructure and cargo handling efficiency?
The Indian ports sector has undergone remarkable advancements in recent years, witnessing significant improvements in both infrastructure and cargo handling efficiency. Infrastructure development projects, such as the Sagarmala Program, have considerably reduced logistics costs. Mechanization, automation, and adoption of state-of-the-art technologies has led to an increase in operational efficiency, resulting in streamlined cargo handling processes and reduced turnaround times. However, challenges remain, including low-cost funding, and last-mile connectivity issues. There is a need to invest in advanced technologies to further optimise port operations and develop green hubs with a focus on renewable, LNG, ammonia, and smart ports.
Q.- India has improved its position in the World Bank’s Logistics Performance Index (LPI). How do you view this as a key achievement for Indian ports?
India’s improved position in the World Bank’s Logistics Performance Index is a testament to the concerted efforts made by the government and industry stakeholders in strengthening the Indian ports sector. This achievement is a significant milestone that not only boosts the confidence of international traders but also positions Indian ports as an attractive destination for global trade. It reflects the progress made in the country by improving port efficiency, connectivity, and overall logistics performance. This recognition highlights India’s enhanced competitiveness in the global market, opening up new opportunities for trade and economic growth, and thus aiding businesses across the country.
Q.- What are the major challenges that hinder port infrastructure development in India?
Port infrastructure development in India faces several noteworthy challenges. The pertinent problems that require prompt action are inadequate last-mile connectivity, congested road & rail networks, enhanced utilisation of existing infrastructure, scarce investments in port modernisation & expansion projects, unavailability of long-term & low-cost financing options and the streamlining of regulatory procedures. Additionally, efficient land acquisition processes and timely environmental clearances are vital to avoid unnecessary delays.
Successfully addressing these challenges requires a collaborative approach involving government bodies, private sector participation, and the implementation of streamlined approval mechanisms to expedite infrastructure development and promote sustainable growth in the port sector.
Q. – What are the latest technologies adopted by the company to enhance port operations?
Essar Ports is committed to leveraging the latest technologies to enhance port operations and optimise efficiency. We have implemented advanced cargo handling systems, including modern mechanised equipment and automated processes to improve operations and reduce turnaround times. These systems enable us to deliver cost-effective, seamless, and reliable port services while adhering to stringent safety and environmental standards. We are focused on investing in our existing operations and building new assets with more efficient, carbon-neutral, and new-age technologies, which will be sustainable and aligned with our theme of Energy Transition.
Source: Construction Times (August 2023)
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