Devising business strategies for port development and selling for Karaikal port

Abstract

The Indian Port Industry is one of the fastest growing sectors in the country. The current focus of the port authorities is largely on the expansion and increase of capacity in the existing ports. The importance of minor and intermediate ports has been increasing over the past couple of years and their development is being aggressively pursued by every state with a coastline. The cargo handled by Ports has recorded tremendous growth from nearly 25 million tonnes in 1996-1997 to nearly 213 million tonnes in 2008-2009. The cargo handling at all the ports is projected to grow at 7.7% p.a. till 2013-2014 with minor ports growing at a faster rate of 8.5% compared to 7.4% for the major ports (IL and FS). Traffic at non-major ports and private ports is growing at a CAGR of 11.74% in the years 2002-07 as against 8.54% for major ports (Planning Commission 2007)1. Over the last two decades, minor ports traffic has grown at a CAGR of 19.4%, almost triple the growth rate of major ports. It should be pointed out here that the growth of traffic in non-major ports was skewed across coastal states, with Gujarat handling more than 60% in 2006-2007 (Planning Commission 2007). 2 MARG Infrastructure limited is one of the fastest growing players in the maritime logistics in the eastern coast of the country. The Company is operating the Karaikal Port which is strategically located between the Chennai Port and the Tuticoron Port on the East coast. The Port has the ability to handle Dry and Bulk cargo and also can handle containerised cargo. The Port is also building up the facilities for the development to carry liquid cargo and thus would enable it to have the capabilities to handle all types of cargo. However the main problem faced by the company is the selling of the Port facility to the customer and also to increase and grow the business. The paper tries to understand the issues faced by the port and suggest solutions / recommendations for the same.