Us media: Poor ports hinder India from becoming the world's factory

    On August 22, the New York Times published an article entitled "Replacing China as the world's factory? India needs bigger and better ports" by Peter Goodman and Hari Kumar. The full text is as follows:

    About 25 percent of containers passing through India are loaded and unloaded at Nehru Port, on the Arabian Sea south of Mumbai. Container throughput at the port has roughly tripled over the past 20 years, but the port is still small by the standards of the world's largest ports.

    India is now taking steps to actively catch up, expanding existing terminals while preparing for the construction of new ports. Whether and how quickly these plans can be realized will affect one of India's grandest ambitions: to develop the country into a full-fledged manufacturing and export giant.

    That prospect has become increasingly possible. Global retailers that have long relied heavily on Chinese factories to produce goods amid fears of a hostile trade stance between the US and China have begun to look for alternatives after experiencing supply chain collapses caused by the coronavirus pandemic. No matter who wins the US election in November, the expectation is that trade relations between the world's two largest economies will not improve. As companies embrace this expectation, they are also stepping up their efforts to find alternatives. Many big brands are looking to set up factories in India.

    "The world does not want to be totally dependent on China," said Wimesh Sharad Wag, chairman of the Port Nehru Authority. "Without a doubt, India is the best alternative. Now everyone is moving their bases to India."

    Big retailers such as Walmart are looking more to India. But whether the trend continues, leading to continued growth in factory orders and much-needed manufacturing jobs, may depend on whether India's ports can do their bit.

    At Nehru Port, construction teams are expanding one of the five terminals by adding two berths, doubling the loading and unloading capacity.

    The bigger action will be north along the shoreline in the Watwan industrial area. The port authority there is moving ahead with plans to build a giant facility that would increase the port's annual capacity to 20 million 20-foot containers.

    The project, which is expected to cost more than $9 billion, will be built in two phases and completed in 2035. The project was recently approved by the Indian Cabinet.

    Key to the new port is its deep water area, which can accommodate the world's largest vessels with a capacity of 24,000 containers. Other ports in India can accommodate ships with a capacity of up to 18,000 containers.

    This limits trade flows. About 25 percent of containerized cargo between India and Europe or East Asia passes through ports in Singapore, Dubai or Colombo, Sri Lanka, where it is transferred to smaller vessels capable of docking in India, the equivalent of having to change planes in Chicago or Atlanta instead of taking direct flights.

    That would cost Indian shipping companies about $200 more per 20-foot container and add three days to transit time, Mr. Wagg said. The three-day lead time gap weakens India's competitiveness as a commodity producer.

    Wager said the Port of Watwan aims to reduce such costs and speed up delivery times. "We should not rely on smaller ships," he said. "Our ports should be prepared for future growth." Another port in the southern Indian state of Kerala has been designed with the largest container ships in mind and relies heavily on automation.

    In recent months, there has been chaos at some ports on India's west coast, with outbound cargo piling up, as shipping lines bypass some destinations and concentrate vessels on major routes connecting East Asia with Europe and North America.

    The main reason for the confusion is that ships are bypassing the Suez Canal to avoid attacks by Houthi rebels in Yemen. Due to the longer distances, shipping companies need additional vessels to maintain weekly schedules. They have diverted some ships that normally call at Indian ports.

    Another concern is a possible strike by dockworkers at India's 12 biggest ports as contract talks stall.

    In the longer term, countries that depend on India for trade are calling for more aggressive action to deepen shipping lanes at existing ports - a costly and complex process.

    "Indian ports must be dredged." Dushiant Mulani, president of the Federation of Freight Forwarders Associations of India, said. The federation represents trucking companies, customs brokers and other companies.

    The question is how long these efforts will take to complete and whether they can keep up with the growing volume of freight. If India becomes a viable alternative to Chinese industry, the demand will be even greater.

    "Both the railways and roads have to speed up." 'said Wagg.






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2024-08-30来源:航运在线

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