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PPP Framework for Indian Ports Expansion

The document discusses public private partnerships in Indian ports. It notes that India's major ports currently handle 75% of cargo but will require significant additional capacity investments to meet projected demand increases. Public private partnerships are seen as a way to bring in private sector efficiency and investments to develop new port infrastructure and capacity. The document outlines the existing PPP framework and guidelines, as well as several ongoing and planned port development projects through PPPs to develop new berths, terminals, and dredging projects through 2022 with billions of dollars in total investments. Key implementation issues are also discussed.

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141 views16 pages

PPP Framework for Indian Ports Expansion

The document discusses public private partnerships in Indian ports. It notes that India's major ports currently handle 75% of cargo but will require significant additional capacity investments to meet projected demand increases. Public private partnerships are seen as a way to bring in private sector efficiency and investments to develop new port infrastructure and capacity. The document outlines the existing PPP framework and guidelines, as well as several ongoing and planned port development projects through PPPs to develop new berths, terminals, and dredging projects through 2022 with billions of dollars in total investments. Key implementation issues are also discussed.

Uploaded by

sumit6singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

Public Private Partnership

in Ports

By
A.K. Mohapatra
Secretary
Department of Shipping
Port sector in India

 Major Ports –
(under Government of India)
12 Major Ports
 259 berths

 account for about 75% of total traffic

Cargo handled – 423 MT (2005-06)


 Non-Major Ports
(under State Governments)
 187 non major ports (61 cargo handling);
 97 berths

 account for about 25% of total traffic

 Total Cargo handled-568 MT (2005-06)


Capacity Required

 Present Capacity - 600 Million Tonnes (approx.)

 Total Capacity required by 2011-12 would be -


1100 MT
Assuming 7.7% CAGR

 Total Capacity required by 2016-17 would be -


2000 MT
Assuming 8% CAGR upto 11th plan and 12% for 12th plan
Why PPP ?

 Induct Additional Resources


 Bring in private sector efficiency

 Client-Port Symbiosis for Port development and


diversification

 Strong Global networking

 New business opportunities


PPP Framework

 Private sector participation and Joint Ventures permitted


under Major Port Trusts Act 1963

 Comprehensive guidelines 1996

 Joint Venture Guidelines 1998

 Model Bidding Documents 2000


Scope

AREAS FOR PRIVATE SECTOR PARTICIPATION

 Construction and Operation of :


 Container Terminals
 Bulk, Break-Bulk, Multipurpose and specialised cargo berths
 Warehousing, Container Freight Stations, Storage Facilities
and Tank Farms, Dry Docking Facilities
 Ship Repair Facilities
 Leasing of equipment for port handling and
floating crafts from private sector
 Auxiliary Port Services (like Pilotage, Tugging and
Mooring)
 Captive facilities for port based industries
Principles

 100% FDI

 Open Competitive bidding

 Lease Period of BOT upto 30 years

 No Government guarantees on ROI

 Discourage private monopoly

 Independent Tariff Regulatory Authority

 Protection of labour interest


Procedure

For Terminals and Berths


 Request for Qualification (RFQ)

 Request for Proposal (RFP)

 Draft Concession Agreement finalised in pre-bid


meeting

 Approval of PPPAC

 Selection Criterion - Highest Revenue


Share to Port
Present Status of Private Investment

Already Operational
 14 projects with investment of Rs.3,516 crores
Container terminals
Liquid cargo berths
General cargo berths
Container Freight Station(CFS)
Under Implementation
 4 projects with investment of Rs. 2,898 crores
Container terminals
Single Point Mooring (SPM)
Berth Construction Plan
2006-07

 15 Berths to be awarded during 2006-07


 Total Capacity Addition – 94 MT
 Total Investment – Rs.6497 crores

2007-08

 13 Berths to be awarded during 2007-08


 Total Capacity Addition - 107.65 MT
 Total Investment - Rs. 7664 crores
Berth Construction Plan – 2006-07

 Construction of two off-shore container berths - Mumbai


 LNG Re-Gassification Terminal - Cochin
 International Bunkering Terminal - Cochin
 Construction of 4 cargo berths - Kandla
 Creation of Berthing & Allied facilities off Tekra - Kandla
 Construction of cruise-cum-container berth - Mormugao
 Construction of Deep Draft berth for handling iron-ore and coal -
Paradip
 Construction of Bulk Coal Terminal - New Mangalore
 Development of existing 8th berth as Container Terminal -
Tuticorin
 Marine Liquid Terminal - Ennore
 Coal Terminal - Ennore
 Iron-Ore-Terminal - Ennore
 Second Container Terminal - Chennai
 Construction of WQ-8 Berth - Vizag
 Construction of EQ-10 Jetty at Inner Harbour - Vizag
Berth Construction Plan – 2007-08

 Construction of 2nd berth for handling chemicals /


specialised grade of POL – Mumbai
 Extension of container berth by 330 m - JNPT
 International Container Transhipment Terminal – Cochin
 International Cruise Terminal – Cochin
 Development of one berth in East Docks – Vizag
 Construction of berths at Vasco Bay - Mormugao
 Construction of berth for clean cargo - Paradip
 POL Berth in Oil Dock Arm - New Mangalore
 Construction of six berths - Tuticorin
 Construction of three Shallow Draught Berths – Tuticorin
 Construction of Coal Berth - Tuticorin
 LNG Terminal - Ennore
 Container Terminal - Ennore
Dredging Plan
2006-07

 7 Capital Dredging Projects to be awarded during 2006-07


 Paradip, JNPT, Mumbai, Tuticorin, Ennore & Vizag
 Total Investment - Rs. 2040 crores

2007-08

 6 Capital Dredging Projects to be awarded during 2006-07


 Kolkata, Mumbai, Chennai, Cochin, Vizag & Mormugao
 Total Investment - Rs. 1105 crores

Target draft - 14 meters (in phases)


Port Connectivity Projects
-under implementation
Road
 9 connectivity projects (completion in 1to3 years)
 286.12 kms
 Total cost of Rs.1661 crores

Rail
 8 connectivity projects(completion within 2 years)
 961.56 kms
 Total cost of Rs.1780.68 crores

Dedicated High Axle Load Freight Corridor on Western


and Eastern routes at an estimated cost of Rs.22,000
crore
ISSUES

 Faster decision making


 Criterion for selection- Revenue share/MGT
 Mergers and Acquisitions
 Tariff Regulation
 Post selection alteration in scope of business
 Captive facilities
 Dispute Resolution Mechanism

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