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A Review on Development of Minor Ports to Improvethe Economy of

Developing Country

Article · December 2015

DOI: 10.1016/j.aqpro.2015.02.035

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Aquatic Procedia 4 (2015) 256 – 263

INTERNATIONAL CONFERENCE ON WATER RESOURCES, COASTAL AND OCEAN

ENGINEERING (ICWRCOE 2015)

A Review on Development of Minor Ports to Improvethe Economy of

Developing Country
Geetha Kuntojia* and Subba Raob
a,b
Department of applied mechanics and hydraulics, National Institute of Technology Karnataka, Surathkal, Dakshina Kannada District,
India,Pincode-575026.

Abstract

India, is the second largest country in Asia, has a coast line about 7500 km and is studded with 13 major ports and close to 200
minor ports. The major ports in India are Calcutta, Haldia, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin, Cochin, New
Mangalore port trust (NMPT), Mormugao, Jawharlal Nehru Port Trust (JNTP), Mumbai, and Kandla. Approximately, 95 per cent
of the country’s trade by volume (70 per cent in terms of value) is moved by sea. Major ports handle about 75 per cent of the total
cargo and the rest by intermediate and minor ports. Hence, shipping plays an important role in the transport sector of India’s
economy. The development of port can be defined as “Technological changes in recent years in transport systems as a whole and
maritime transport in particular have made it imperative to reorient the working of the ports in developing countries to meet the
challenges posed by these new innovations”.
In this paper,as anexample development of Karwar portis discussed. Karnataka has a coastline of 300 km with one major port at
New Mangalore and minor ports. Karwar port is located at the northern extremity of the state in Latitude 12º48’ N and Longitude
74º7’ E. The improvement can be done by Extension of the Existing Berth and land reclamation, Dredging, and Construction of
Petrol, Oil and Lubrication (POL) loading Jetty. Finally, the development of minor ports support the major ports which directly
and indirectly helps to improve the economy of the developing countries like India.
©
© 2015
2015TheTheAuthors.
Authors.Published
Publishedbyby
Elsevier B.V.B.V.
Elsevier This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of organizing committee of ICWRCOE 2015.
Peer-review under responsibility of organizing committee of ICWRCOE 2015
Keywords: Major ports; minor ports; development of minor ports; Karwar port; Dredging.

* Corresponding author. Tel.: +91 7204858053; fax: +91-0824-2474039.

E-mail address:geeta.kuntoji@gmail.com

2214-241X © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of organizing committee of ICWRCOE 2015
doi:10.1016/j.aqpro.2015.02.035
 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263 257

1. Introduction

Shipping plays an important role in the transport sector of India’s economy. Approximately, 95 percent of the
country’s trade by volume (70percent in terms of value) is moved by sea. India, is the second largest country in Asia,
has a coast line about 7500km and is studded with 13 major ports and close to 200 minor ports. The major ports in
India are Calcutta, Haldia, Paradip, Visakhapatnam,Ennore,Chennai, Tuticorin, Cochin,New Mangalore Port Trust,
Mormugao, Jawaharlal Nehru Port Trust, Mumbai, and Kandla. In 2007, 74% of cargo traffic handled by major
seaports and nearly 10-15% by intermediate ports. The major Ports handle more than 911.5 million tons of cargo
annually as per 2012. The Indian ports and shipping industry plays a crucial role in sustaining growth in the
country's trade and commerce. India currently ranks 16th among the maritime countries,
The new manufacturing and power projects and higher cargo traffic at ports, the sector is poised for significant
development. During 2013-14, India's major ports handled 555.50MT of cargo as compared to 545.83 MT handled
in 2012-13, and 387.9 MT handled by minor ports in 2012-2013, registering a growth of 1.8 per cent.The State
governments have realised the strong growth potential and the increasing need for robust port infrastructure, and
have consequently provided sops and a favourable investment climate which are attracting investments from private
players into the sector.
In age of globalization where international goods and commodities are to be transported from one country to the
other, efficient infrastructure is the key to the success.The developments of ports will also help in de- congestion of
the traffic on the other mode of transport viz. road, rail and air.Development of minor ports and its infrastructure will
aid in lessening the burden of major ports and help improving the economy of the country. Hence, shipping plays an
important role in the transport sector of India’s economy.Karnataka has a coastline of 300km with one major port at
New Mangalore, an intermediate port at Karwar and 9 minor ports at Belekeri, Tadri, Honnavar, Bhatkal,
Hangarkatta, Malpe, Gangolli, Padubidri and Old Mangalore.

2. Development

2.1. Definitions of port development

The Water way transport can be classified into three categories viz. Inland Waterways, Coastal Shipping and
Overseas Shipping. A case study on Karwar port is presented in this review paper.
Port development is defined as “Technological changes in recent years in transport systems as a whole and
maritime transport in particular have made it imperative to reorient the working of the ports in developing countries
to meet the challenges posed by these new innovations”.
Advantages of waterway transport: It is relatively economical mode of transport for bulk and heavy goods, safe
mode of transport with respect to occurrence of accidents, cost of maintaining and constructing routes is very low as
most of them are naturally made, and it promotes international trade.
Limitations: The depth and navigability of rivers and canals vary and thus, affect operations of different transport
vessels, it is a slow moving mode of transport and therefore not suitable for transport of perishable goods, adversely
affected by weather conditions, sea transport requires large investment on ships and their maintenance.
The two crucial sub systems of transport viz. rail and road are highly congested and give rise to problems
including escalating social costs. Economic losses due to congestion and accidents on roads are estimated to result in
the loss of around Rs.400 billion annually. Coastal trade is an integral part of national trade. Present market size in
terms of Cargo traffic at Indian ports stood at 911.5 MT in FY 12(Fiscal Year) and is expected to touch 1,758 MT by
FY 17. During April and May 2014, India's major ports handled 95.87 MT of cargo as against 91.48 MT handled
during the corresponding period last year, an increase of 4.8 per cent, according to statistics released by the Indian
Ports Association (IPA).
In 2013-14, coal cargo traffic (thermal coal and coking coal) volumes rose by 20.6 per cent to 104.5 MT from
86.7 MT a year ago. Among commodities, there was an increase of 25 per cent in handling of fertilizers in April
2014 in comparison to April 2013. Iron ore handling has also shown an increase of 16.8 per cent during the month.
Increasing investments and cargo traffic point to a healthy outlook for port support services. These include operation
and maintenance (O&M) services such as pilotage, harbouring and provision of marine assets like barges and
258 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263

dredgers. The Planning Commission of India in its 12th Five Year Plan expects a total investment of Rs 180,626
crore (US$ 30.05 billion) in the ports sector.
Through its Maritime Agenda 2010-2020, the Ministry of Shipping has set a target capacity of over 3,130 MT by
2020, largely through private sector participation. More than 50 per cent of this capacity is expected to be created at
non-major ports (minor ports).
Visakhapatnam port looks forward to a bright year in 2014-15, as several development projects are on the verge
of completion, and the port expects to handle not less than 65 MT of cargo during the year, according to Mr. GVL
Satya Kumar, Deputy Chairman, and Visakhapatnam Port Trust.
Hence, the major ports would not be able to take the higher rates of traffic growth if the necessary programs for
capacity augmentation do not take place. The major ports’ preoccupation with international trade will influence
increase in coastal vessel operations. The coastal trade will have to increasingly lean on minor ports for servicing
their incremental needs. Hence, minor ports also play an important role in increasing the country trade and economy
of the developing countries. The Inland waterway transport also has considerable untapped potential. It holds
promise of its emergence in future as a credible mode of transport. For example, importorder of coal from Indonesia,
Australia and china for merchant power projects have been issued and since ports in Chennai, Ennore and Tuticorin
cannot handle the huge consignment of coal, minor ports at Manapadu, Nagapattinam, Cuddalore, Marakkanam,
Thirukadaiyur and Cheyyur have been sanctioned to ease the congestion in coal traffic. For the whole of last year
(2013-14), the cumulative volume growth at the dozen plus one ports, which has a market share of 57%, was a paltry
1.78% at 555.49 MT. These ports are located at Kolkata, Vizag, Paradip, Chennai, Tuticorin, Ennore, Cochin, New
Mangalore, Mumbai, Navi Mumbai, Mormugao and Kandla. Private ports (essentially those owned by the state
governments but given to private firms for development and operation) account for the balance 43% share of India’s
sea-borne cargo with a volume of 420.24 MT. A look at the data compiled by the Indian Ports Association (IPA), a
body representing the 13 ports and intermediate ports, gives an indication that India’s in-bound and out-bound cargo
shipped through these ports is improving, compared with the sluggishness seen in the last three-four years, chiefly
fallout of the global meltdown of 2008. Driving this volume growth is India’s voracious appetite for thermal coal
that is used to fire power stations. Between April and September, thermal coal loadings at the 13 ports jumped
8.54% to 39.59 MT from 36.48 MT a year earlier. Last year, the 13 ports loaded a combined 71.60 MT of thermal
coal, 22% more than the 58.65 MT handled in the previous year. Coal imports have been increasing sharply year-on-
year because of a severe shortage of coal in India despite significant coal reserves. The ports located at Paradip.
Vizag, Ennore, Tuticorin, New Mangalore and Mormugao are ramping up their coal loading capacities to cater to the
rising demand for imports. Container volumes handled by the 13 ports clocked a growth of 6.46% at 4 million
twenty-foot equivalent units, or TEUs (the standard size of a container and a common measure of capacity in the
container business), from 3.76 million TEUs a year ago. In the year to March 2014, the container volumes loaded at
the 13 ports shrank 3.1% to 7.46 million TEUs from 7.70 million TEUs a year earlier. Volume growth in imported
raw fertilizers is another redeeming feature of the recovery in cargo volumes at these ports. Raw fertilizer loadings
jumped 25.72% to 4.39 MT from 3.49 MT a year earlier. Petroleum, oil and lubricants (POL) cargo-the largest
category of cargo handled by the 13 ports remained flat at 94.24 MT in the April-September period from the 94.50
MT handled a year earlier. POL loadings touched 187.31 MT in the year to March 2014. Iron-ore shipments through
these ports remained depressed as a court-imposed ban on production and exports in Karnataka and Goa sliced
exports by about 90% over the past three years. During April-September, the 13 ports handled a combined 9.14 MT
of the steel-making commodity, down from 11.84 MT a year earlier.
Ports in India are classified into two categories namely MAJOR PORTS and MINOR PORTS. “Major Port”
means any port, which the central government may by notification in the official Gazette declare, or may under any
law for the time being in force have declared to be a major port. Ports other than Major Ports are classified as “Minor
Ports”. There are 13 Major Ports & 200 Minor/Intermediate Ports along the coast line of the country. As shown in
Fig.1
 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263 259

Fig.1. Major Ports and Minor ports in India (Google)

2.2. Problem Existing

Capacity constraint of major ports: 4 out of 13 Major Ports are experiencing more than 100 per cent utilization
namely Vizag, Tuticorin, Mormugao& Mumbai. Another 9 ports are also facing capacity utilisationconstraints being
utilized more than the optimum accepted range of 70 to 75%. This clearly shows that there is an urgent need of
capacity addition so that Indian ports can handle the increased cargo traffic in future. Further, the capacity utilization
at non-major ports was 77 per cent in 2009-10.
The major problems existing in development of ports:
260 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263

a. Managerial problems and administrative problems.

b. Under utility and over utility of facility.
c. Problems due to technological changes.
d. Operational problems.
e. The number of non-functional minor ports.
Issues in port developments:
Srinivasan and Kapileshwar (1985) have discussed about the field measurements for the development of port
facilities at the mouth of tidal inlets. A natural tidal inlet, connecting a bay or a long back-water forms an ideal
location for the development of a small craft harbour as the required depth could be maintained naturally by flushing
effects of tides. But stabilization of inlet and maintenance of adequate depths at entrance is a major problem faced
by a coastal engineer.
Dharmalingam and Subramanian (1985) have made a review of the navigational requirements of seaports. The
navigational parameters fixed on basis of empirical formulae were inadequate due to unfavourable wind conditions,
rocky seabed, and proximity of breakwaters. Hence, the navigational parameters should be planned on the basis of
optimum requirements and not on the basis of optimistic requirements.
Johansson (1985) says that the answer to the growing demands in shipping industry is the construction and
development of mini ports. Floating or movable mini ports of various types were given as solution by the author for
meeting the growing demand s in shipping industry and help to relieve congestion in major ports. Mini ports have
the advantages of being cost effective as the fabrication can be done economically, less maintenance dredging will
be required, low cost per berth and due to short delivery time capitalizing cost is low.
Krishnamurthy and Gosain (1989) have said that the causes for delay in the completion of fishery harbour
projects and presented the case studies with reference to fishery harbours at Mumbai, Ratnagiri, Chinnamuttom and
Chennai. The delay in completion of construction of most of the major and minor fishery harbours due to time and
cost over-run due to various resons.
Deshmukh (2003) said that Maharastra state does not have adequate infrastructure facilities. This inadequacy is
leading to the destruction of investments from both domestic as well as foreign sources and the low employment and
income, hampering the quality of life of people. To overcome this problem is to quantify the available and required
strength/space of the ports for cargo handling.
Tata Consultancy Services (2003) has identified the ports of Karwar, Malpe, Old Mangalore, Tadri and Belikeri
for further development. Karwar’s development is likely to be low key because of restrictive policies of
development in the future considering the sensitive nature of the “Sea Bird” Naval project. As Karwar is being
proposed as a coastal port it would have a major bearing in the selection as only in and out movements from Indian
ports are being considered.
Paravath and Pareeth (2004) have discussed development of a mini fishery harbour at Thottappally coast in
Kerala, which is connected to open sea by an artificial spillway.
Vinayak (2005) says that KARWAR port, one of the important minor ports along coastal Karnataka, seems to
have received a major chunk of funds under the ASIDE (Assistance to States for Developing Export Infrastructure
and other Allied Activities) scheme for infrastructure development and other related activities.
Shirlal and Suman (2007) have done infrastructure planning of New Mangalore Port for oil dock arm, general
cargo and dry bulk cargo. Ports capacity indicates capability to provide a particular service with minimum cost. This

‚ Areas to be focused:
in turn helps for economy development.

According to Banger(2007) says that the following are the major grey areas in port development:
1. Inadequate draft.
2. Lack of industrial growth in hinterland.
3. Lack of proper connectivity.
4. Existence of mangrove growth on coastline.
5. Complex procedures.
6. Lack of productivity.
7. Lack of seamless documentation.
8. Higher cost.
 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263 261

‚ The following measures are necessary for the port development:

Johansson(1985) says that the answer to the growing demands in the shipping industry is the construction &
development of minor ports.
X This development helps in relieving the congestion in major ports.
X Minor ports have the advantages of being cost effective.
X Since, it is easily movable used as a temporary port to alleviate port congestions.
X Effectively used as riverine & estuarine ports.
X Economical.

3. A case study on development of Karwar port (Fig.2)

Introduction to Karwar port and the existing facilities are as follows:

Fig.2 Karwar port Layout (http://karnatakaports.org)

KARWARportis one of the important minor ports along coastal Karnataka, as it has a coastline of 300 km
with one major port at New Mangalore. It lies between 130 55' and 150 31' north latitude and 74'' 9' units
and 750 10' East longitude Asia Map India in Green.
It is situated at the northern extremity of Karnataka coast 64 Kilometres south of Marmugoa Porton the
Southern side of the Kali River and caters to the requirement of 2.00 lakh square Kms,of hinterland.This
port has been developed as an all-weather port in the Karwar bay with 355 metres, long quay for
accommodating simultaneous berthing of two ships with other matching infrastructure facilities. At present
it caters to vessels with a draft of 8.25 metre only due to under water physical obstructions in front of
berths.The port is declared for handling all types of commodities including class “B” and Class “C”
petroleum products.
The reputed private companies have constructed 25 liquid cargo storage tank terminals with an installed
capacity of 75,000 MT of liquid cargo about 30,000 MT warehousing facilities,(including Government &
Private)Gantry crane and other facilities. Presently Karwar port handles Import &Export of about 24.88
lakhs MT of various commodities and earnsrevenue of 11 to 12 crores.
262 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263

The ports have handled a record of 35,07,830 MT of Cargo during the year of 2004-05
New Mangalore port already exceeded its capacity & is overcrowded most of the time. The only way to
relieve the congestion & allow smooth working of the port is by developing the minor ports & in land
navigation in the state. Hence, the nearest minor port available is Karwar port which will help New
Mangalore port and helps in easy transactions of imports and exports. With this easy of working economy
of the country also increases. The location and facilities of Karwar port is given below.
*Location: Latitude 14° 48’.5 N Longitude 74° 07’ E
Designed to 9.75 metreDraft
KonkanRailway line, N.H 17 passing close and linkage of Hubli-Ankola Railway line is under progress.
Catering for 2 lakhs Sq.km. Hinterland covering 3 States
*Existing facilities:-
205 metres lighter age wharf of 2.5 metre draft.
Stone masonry wharf of 800’.
250 metre. long break-water
One transit shed of 150 metre& 24 metre.
Two transit sheds of 10 x 18metre.
30 Tonnes capacity weigh bridge.
One Warehouse of 120 x 24 metre. (Owned by State warehousing corporation.)
*Other facilities:-
Reputed private companies have constructed 25 liquid cargo storage tank terminals with a capacity of
75,000 MT. Permanent warehouse of 100 x 45 metre. Size and permanent warehouse is under
Construction in the ASIDE scheme.It has 30ton capacity Weigh Bridge & a ware house of 150*24metre.

3.1. Reasons for development:

1. Development of food processing parks & Agro Export Processing Zones at Bagalkot, Bijapur,
Chitradurga, require facilities for shipment of goods.
2. To introduce the container service at Karwar by state government.
3. Cost effective linkages between existing and new industries.
4. A proposal for setting up chemical complex at Agsur in Ankola near to this port.
5. Overall growth in industrial development in the hinterland.

3.2. Proposed developments in second stage:

Ü Extension of the Existing Berth and land reclamation:-

In order to handle the projected traffic of 5 MT per annum by increasing length (460metre) and number
of berths. It is proposed to construct two berths providing a berth length of 360metre.
Ü Dredging:
To provide for handling 60,000 DWT ships, normally the draft requirement is 12.5metre taking into
Keel clearance.
Ü Construction of a POL Jetty:
Karwar port handles class “B” petroleum products hence a POL Jetty can be constructed in the lee of the
breakwater.
Efficient rail & road connectivity must be available.

4. Summary

X The best way to meet the growing demands and remove congestion in major ports so they can perform
to their full potential is to develop the minor ports of the country.
 Geetha Kuntoji and Subba Rao / Aquatic Procedia 4 (2015) 256 – 263 263

X Development of Karwar port with deepened drafts & addition of berths would facilitate receiving larger
vessels and commodities sizes.
X Cargo from minor port can be shifted to major port for exports.
X Finally, the development of minor ports support the major ports which directly and indirectly helps to
improve the major economy problem of the developing countries like India.

References

Banger., M. K., 2007. Inland Water Transport (IWT), Article, Economic Times of Indiaon 15th September.
Deshmukh, A., 2003. Indian Ports- The current scenario. Department of Economics University of Mumbai.
Development of Ports in India – Problems And Aspects (1991)
Dharmalingham, K. andSubramanian, M.R., 1985. A review of the navigational requirements of sea ports. Proc. 1st Conf. Dock and Harbour
Engineering, IIT Bombay, India,pp-A-137.
Johansson Goran., 1985. MiniPort- The answer to the growing demand for flexible ports. Proc. 1st Conf. Dock and Harbour Engineering, IIT
Bombay, India, pp-A-277.
Krishnamurthy and Gosain.,1989. Causes for delay in the completion of fishery harbour projects. Proc. 3rd Conf Dock and Harbour
Engineering, NITK Surathkal, Mangalore,pp.477.480.
ParavathKunhimammu and Pareeth Sheik., 2007.Development of mini fishery Harbour at Thottappally.Proc. 3rd Conf. on Harbour and
Ocean Engineering”, NIO Goa, pp-570-578.
Srinivasan,R. and Kapileshwar, P.S., 1985.Field measurements for the development of port facilities at the mouth of tidal inlets.Proc.1st Conf.
Dock and Harbour Engineering, IIT Bombay, India, pp-A-75.
ShirlalKiran and Sumana.K ., 2007. Infrastructure planning of NMPT for General cargo and Dry bulk upto 2021-22. INCHOE, NITK
Surathkal, Mangalore, pp.155.162.
Tata, C. S., 2003. Development of Coastal Shipping and minor ports.Survey Report submitted to Govt.of India, 300 pages.
Vinayak, A.J., 2005. Development of minor ports in Karnataka”, Article, HinduBuisness Line, 10 th December.
Vaidyanathan, S., 2008.Conceptual Plan for Developments of Coastal Shipping And Inland Water Transport in Karnataka. National Institute of
Technology Karnataka, Surathkal.
http://karnatakaports.org/?page_id=47
http://www.ibef.org/industry/ports-india-shipping.aspx
http://www.livemint.com/Opinion/jqDn7icnoQe3dcNTV31XdL/Indias-12-big-ports-see-first-signs-of-revival-in-cargo-gro.html
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