New entity likely to develop last-mile port connectivity.

The shipping ministry is looking at setting up a special purpose vehicle (SPV) for all major ports to provide last-mile rail connectivity.

Public sector undertakings (PSUs) under the administrative control of the Indian Railways are being considered to develop the SPV, which will involve subscription-based equity from all the major ports.

The proposal, in preliminary stages, is likely to be finalised within a couple of months. 'We are currently exploring setting up an SPV to enhance last-mile port connectivity using railways,' said a senior ministry official. 'It will involve an equity base of Rs. 50-100 crore which will be funded by port trusts. The work will either be done by the SPV or it can be outsourced.'

Last-mile connectivity, in this case, is linking the port to the railway network. Using railway to move cargo increases efficiency and reduces cost, when compared with road transport. But last-mile connectivity has been an issue ports have been grappling with for a while. Cities and population have become impediments to port connectivity. Ministry officials and analysts pointed out that ports would benefit from this move, as it would improve the turnaround time and efficiency.

BS