The government today said the capacity of ports is likely to reach 1.5 billion

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tonnes over the next two years, with Rs one lakh-crore expansion programme underway for docks and shipping sector.

"We are hopeful of raising ports capacity to 1.5 billion tonnes by the end of the Eleventh Five Year Plan ( 2007-12) and expect to take 12 major ports capacity to 1 billion tonnes From the present 574.77 million tonnes (MT)," Shipping Minister G K Vasan told PTI on the sidelines of CII meet here.

"About 200 non-major ports will have a capacity of 580 million tonnes by then (March 2012). We are implementing Rs one lakh crore National Maritime Development Programme (NMDP) and out of this Rs 55,804 crore is for ports while remaining will go for shipping and inland waterways sector," Vasan said.

Ports handle around 95 per cent of the country's total trade in terms of volume and 70 per cent in terms of value. Of this, 12 major state-owned ports accounted for 70 per cent of the total traffic.

"During the last five years alone, the total traffic handled by these (major) ports has increased from Rs 344.79 MT during 2003-04 to 530.39 MT during 2008-09, representing a compounded annual growth rate of approximately 9 per cent," he said.

Given the vital role played by the shipping industry in economic development of nation, he said, the government was committed to develop world-class infrastructure at ports.