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Port restructuring in a global economy: An indian perspective

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In 1991-92, India embarked on an ambitious economic reform programme aimed at transforming its inward looking, centrally planned economy into a market-driven economic system based on export-led growth. Since then, economic performance and international competitiveness have improved markedly. The country's external trade, currently in excess of 250 million tons of cargo (exports and imports), is projected to nearly double by the year 2001. This confronts the port sector, on average already operating beyond capacity, with the significant challenge to sustain this growth in a seamless, cost effective and efficient way. Undoubtedly, this paramount pre-condition to Indian economic development will require significant effort towards port modernisation and coordinated port development. Currently, Indian ports are characterised by the existence of obsolete and poorly maintained equipment, hierarchical and bureaucratic management structures, excessive labour and, in general, an institutional framework that is considerably in variance with the Government's overall economic objectives. In the current 5-year plan, the Government of India has earmarked significant resources to port development which, however, fall short of requirements. Greater participation of the private sector is thus sought together with the accompanying institutional reforms. The latter should clearly define the "parameters" of port restructuring in a way that makes port investment in India an attractive business alternative to both national and international capital. (JEL: 121, 615, 731).
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... It might be possible to negotiate with the labor sector in India and introduce some new commercial orientations. Moreover, the Major Ports Trust Act (MPTA) has been criticized as the main stumbling block to the introduction of successful privatization in India (Haralambides and Behrens, 2000). Legislation and institutional change should be more important than physical infrastructural improvement in the Indian context and will take considerable time to achieve. ...
... (4) "Major Ports Trust Act (MPTA)" has been criticized as the main stumbling block to the introduction of successful privatization in India, which may lag India's intermodal development. (2018) Haralambides and Behrens (2000), (11) Pucher et al. (2007), (12) Postigo (2008), (13) Kim and Nangia (2008) and (14) Ng and Gujar (2009). ...
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In this study, we present insights on how the privatization of Indian ports is altering the market share of containerized shipments across two key Industrial corridors of India. Using bill of lading dataset, we implement a binary multi-level discrete port choice model that measures the multidimensional attributes that inform the systematic differences in container shipment transport characteristics between the major government ports and private ports in India. The analysis shows that the private port of Mundra has non-trivial effects on the hinterlands of other state-owned ports. This research offers important markers of port selection in developing economies such as India. Keywords: Port Selection, Privatization, Port competition, Choice modeling, India
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