India's key ports like JNPT, Vishakapatnam and Kandla have for long been the mainstay of the country’s sea-borne trade, but smaller ports are now rapidly emerging as their toughest rivals. Over the last 10 years, the share of total cargo handled by minor and intermediate (non-major) ports in India has jumped from a modest 10 per cent to 25 per cent, indicating fundamental changes in the way marine trade is conducted. Of the approximately 240 million tonnes of marine cargo handled in 1995-96, non-major ports managed barely 10 per cent. By 2005-06, these ports handled 145 million tonnes or over a quarter of total Indian sea-borne traffic. And the first six months of 2006-07 indicate that the share has gone up even further to 26 per cent.

“The share of minor and intermediate ports has been rising and will continue to rise over the next few years,” said a senior official from the Department of Shipping. “In 2005-06, 187 non-major port sites were identified for development, of which 61 are cargo-handling facilities. This is pushing growth.”

The increasing draw of non-major ports is a product of the aggressive shipping policies being pursued by states like Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Kerala. Since non-major ports are a state subject, the respective governments have the freedom to facilitate fast-track clearance and establishment of ports, particularly through private participation.

Gujarat is a case in point. The state, with its 1,600 km coastline, has 41 non-major ports that come under the jurisdiction of the Gujarat Maritime Board. These ports together handled 74 per cent of the total non-major port cargo in the country in 2005-06, or about a fifth of total cargo passing through all Indian ports. In a move that is certain to increase the pace of shipping growth, the state has now identified several more greenfield ports to be executed in various phases.

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