Experts call for caution on non-viable ports in State

The government should give immediate priority to Machilipatnam and Nizampatnam ports, which will make a strategic fit in the plan for development of seaports., said Vakkalagadda Bhaskar Rao AP Chambers of Commerce and Industries.

With doubts being expressed over the feasibility of developing 14 seaports in close proximity, experts feel the State government should tread cautiously on unviable ones, which require huge investments, at a time when it is struggling to bridge the huge fiscal deficit post-bifurcation.

Seaports like the long-awaited one at Machilipatnam may cost a fortune, mainly due to the expenditure entailed by the construction of breakwaters and massive scale of capital dredging required for bringing in large vessels.

The government is yet to arrive at a conclusion whether to go ahead with the construction of the proposed port at Dugarajapatnam (Nellore) or shift the project to Ramayapatnam (Prakasam district), while efforts are on to sort out land acquisition and other logistical issues to give the Machilipatnam port a tangible shape.

The other ports are also in a limbo, as they have failed to attract investments. Therefore, the government has to first mobilise funds and provide basic infrastructure before proceeding with its grandiose plans.

For the record, the Machilipatnam port project has reached a stage where land had to be “pooled” on the lines of the capital construction plans. The project also has problem with depth (about 10 metres now), whereas large ships require deeper approach and anchorage points.

Cost factor

Meanwhile, Andhra Pradesh Chambers of Commerce and Industry Federation executive director P. Bhaskar Rao said the construction of breakwaters alone for the Machilipatnam port would cost a few hundred crores. Similar is the fate of other ports that have been put on the backburner.

Coming to scale, since most of the proposed seaports are non-major ones, generating business should not be a difficult proposition, Mr. Rao said, adding that due priority should be given to ports situated between Kakinada and Krishnapatnam.

Federation of Andhra Pradesh Chambers of Commerce and Industries managing committee member Vakkalagadda Bhaskar Rao appreciated the Chief Minister’s vision but doubted the sustainability of “so many” ports.