Posted on January 12, 2016
By Meera Siva, The Hindu BusinessLine
Currently, only 0.15 per cent of domestic cargo is transported by inland water transport in India, compared with 43 per cent in China. Ports and inland waterways are however, expected to get a boost with the recent Cabinet approval to increase the number of national waterways from five to 111 in the National Waterways Bill.
Investors who want to bet on the growth in water-based transport in India can consider buying shares of Dredging Corporation of India (DCI), a public sector unit. DCI is the only government provider of dredging services, with 80 per cent market share in maintenance dredging.
The Plan target for maintenance dredging has been increasing — from 430 million cubic metres (mcm) in the 11th Plan to 529 mcm for 2012-17. About 70 per cent of this target is being achieved each year. DCI added three new dredgers since 2012 to capitalise on the demand.
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