Dry ports will improve structure of J&K economy: Drabu

JAMMU: Jammu and Kashmir Finance Minister Haseeb Drabu today said the proposed dry ports to be build by the Dubai Ports World and the state government through a joint venture would immensely improve the quality and structure of the local economy.

The ports are proposed to be built at Jammu and Srinagar, the minister

"The proposed Multi Modal Logistics Parks (dry ports) will facilitate faster movement of local produce to the processing centres and the markets outside.

"This will raise the income of farmers, industrialists, traders and businessmen, and create a large number of jobs," Drabu told media-persons on is arrival from Dubai this morning.

Drabu, on behalf of the J-K Government, yesterday signed an MoU in Abu Dhabi with Dubai Ports Chairman and CEO Sultan Ahmed Bin Sulayem.

The MoU was signed in the presence of Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Mohammed bin Zayed Al Nahyan.

The ports would be set up in the state through Foreign Direct Investment (FDI).

The minister said that the Multi-Modal Logistic Park as the name suggests is one centralised place for all types of transportation activities and value added services needed by exporters and local traders for shipment their goods.

"It also works as an inter-linking point for all modes of transport at one specific place," he said.

The Dubai Ports team has already reached here to formally start work on the ambitious project in consultation with the state's industries and commerce department, Drabu said.

He said that in the first phase an investment of Rs 1,500 crore would be made by the Dubai Ports World which would increase to Rs 5000 crore over the next five years.

The minister said that the proposed Inland Logistic Parks to be established at Samba in Jammu and Ompora in Kashmir would include warehouses and specialised storage solutions for transportation of agriculture, horticulture and handicraft products.

Drabu said it will not only bring down the transportation costs of goods, but also increase their market accessibility and transform the abysmal scenario wherein logistics accounts for about 18 per cent of the total product cost, as against 8- 12 per cent in other countries.

"These logistic parks would immensely improve efficiency in freight movement, bringing down the transportation costs by 20 to 25 per cent and giving major fillip to the local economy," he said.

Sulayem, along with a team of senior executives of the Dubai Ports visited J-K earlier this week to hash-out the modalities for setting up the parks in Jammu and Srinagar and finalise the MoU in this regard.

 

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PTI