Inaugural Speech by Minister of External Affairs, Shri Pranab Mukherjee at the International Conference on Infrastructure Development in the Port Sector and its Management (IDPM)

Ladies and Gentlemen,

I am happy to note that the Chennai Port is celebrating its 125th year of commercial operations and is organizing various events during January 2007. I deem it a privilege to be invited to inaugurate the ‘International Conference on Infrastructure Development in Port Sector and its Management’ (IDPM) which is being organized in collaboration with the University of Madras, International Ocean Institute (India) and the Indian Institute of Technology – Madras, till the 20th January 2007, at the University of Madras.

2. I note from the Conference brochure that there will be Sessions on ‘Port Connectivity’, ‘Port Infrastructure Modernisation’, ‘Port Management’, ‘Port and Environment’, ‘Port-University linkages’, ‘Opportunities and Challenges’, and ‘Challenges faced by seafarers’. The themes covered during the Conference are current and are very relevant to the port sector which I strongly believe will be a major player in the economic development of the country.

3. Ports in India have to be modernized and developed to enable them to cope with the demand that would be generated by the high growth rate of our economy and the increase in our foreign trade. However, technological advancement for port alone will not ensure high productivity unless its connectivity to the hinterland is properly developed. The National Highways Authority of India (NHAI) is doing a creditable service in improving the road connectivity and action is already underway on improving the Chennai Port’s link to the National Highway. I strongly believe that there is scope for further improvement in this regard. Since containerized cargoes are increasing in volumes significantly and the road sector has capacity limitations, it will be appropriate to upgrade the rail movement of containers, as it is a more economical and faster mode of transportation. The opening of the railways to the private sector will further influence the increase in the rail share of containers.

4. Consistent with the need to expand the capacity of the ports, it is necessary to improve and modernize the existing infrastructure concurrently with the creation of additional capacities. I am sure that the schemes formulated under the National Maritime Development Programme (NMDP) will ensure that the required capacities are available at the right time and at the right locations. The development of the infrastructure that services the Chennai Port together with the creation of additional capacity is bound to promote India’s trade with East Asia and give a further fillip to our Look East policy.

5. A crucial issue involved in increasing efficiency of the port sector is the need to upgrade the quality of management services. I find that a lot has been done by the Ministry of Shipping to increase the skills of the port management personnel and also bring in the latest techniques in management of ports. As there are limited funds available for the development of ports, the role of the private sector in the development of terminals and their management on ‘Build, Operate and Transfer’ (BOT) basis is essential. We already see the increase in productivity of ports due to the participation of private sector in its management.

6. Development activities very often have a negative impact on the environment. It is, therefore, heartening to note that in line with the environmental laws, the developmental activities in the ports are being taken up after implementing all environmental safeguards prescribed by the Ministry of Environment and Forests while according clearance. This will ensure that the ecology and bio-marine life are not adversely affected.

7. In this world of knowledge explosion, the Indian Ports will be left behind in the race for cargo handling if they do not upgrade themselves with the latest information and knowledge. It is, therefore, essential to maintain a strong linkage between the Ports and academic bodies, which are store houses of knowledge. The interaction between the port personnel and the specialists from the academic side in related fields will be mutually beneficial as the port personnel will be enriched by the knowledge from the academic side, while the academics will be exposed to practical aspects of functions in Ports.

8. The growth in the development of international ports in the neighbourhood like Singapore, Hong Kong, Colombo, etc., means that the Indian Ports have to be highly competitive to attract cargoes from other regions. It is now recognized that a port’s hinterland is no longer confined to the area in its vicinity but has become extensive and includes the countries in other continents also. Hence the port sector is dynamic and offers both opportunities and challenges for development of the ports and scope for its contribution to the Indian economy.

9. Many of the Kingdoms in Ancient India had a highly developed sea trade with the civilizations across the oceans. It is a fat that all major powers in the world derived their development from strong seafaring skills. The advancement in instrumentation on board cargo vessels is at the same time accompanied by exponential increase in the size of operating vessels where any accident on the high seas can have catastrophic effects by way of oil spills and other environmental damages. Hence, it will not be out of place to mention that the Indian seafarers still face a lot of challenges while at sea in spite of the significant technological advancements. The shipbuilding sector has a very important role to play in the development of ports.

10. The Conference, I am sure, will have increasing and useful presentations on some of the themes, as the participants include both Indian and foreign experts who would be making presentations on the topics in the form of keynote and invited lectures. The interaction with international experts from the World Maritime University, National University of Singapore, Korea Maritime University, University of Shanghai and other prominent institutions of international repute in the field of Ports and Shipping, will add significantly to the knowledge available to Indian Port personnel. Participation from commercial organizations like the Shipping Corporation of India, major Shipping Lines’ operating facilities all over the world apart from experts from the Major Ports, State Planning Commission, State Civic Authorities, Financial Institutions, Indian Waterways Authority, etc., will provide scope for widening the knowledge of all participants. I am sure the Conference has brought together the cream of experts in the field of Port Planning, Infrastructure Modernisation, Environment, Academic Institutions and Financing of port development and shipping.

11. The proceedings of the Conference are likely to provide useful inputs to the policy makers in the Port sector and enable the Ports to compete strongly with the foreign ports in the vicinity.

12. With these few words, I wish the organizers of the Conference and the participants all the best over the next few days.

Thank you,