Centre Encourages PPP Approach for Harbour Crane Procurement

28 Aug 2023 CW Team

The pressing requirement for a new crane emerged due to the breakdown of the port's harbour mobile crane in 2020. The subsequent intermittence in container cargo feeder services prompted cargo redirection to Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The harbour crane is pivotal to bolstering container cargo operations at the port.

To address this issue, MPA is currently in the midst of a PPP tender for the redevelopment of berths 10 and 11. Integral to this plan is the acquisition of a 100-tonne mobile crane. The Ministry's suggestion to incorporate the crane into the ongoing PPP model aligns with broader redevelopment goals.

N Vinod Kumar, Chairman of MPA, stated, "In the event of the tender not attracting participants or receiving bids, the Ministry has offered to allocate necessary funds to the port for acquiring the crane. This acquisition is intended to streamline cargo movement."

Initially, MPA sought financial support from the Ministry under the Sagarmala mission, which was declined. The Ministry's recommendation to opt for a PPP approach aims to drive efficient and sustainable procurement.

Kumar elaborated on the forward strategy, saying, "Our hope is that a private entity will undertake the crane procurement and operate it under a revenue-sharing arrangement for ten years."

Given the specialised nature of harbour cranes and the limited supplier pool, a timeline of six to eight months is anticipated for the acquisition process. Even if the PPP route is pursued, operational readiness is expected to take a similar duration.

As the port navigates this crucial decision, the collaboration between the government and private sector is poised to shape the future of container transfer operations at Mormugao Port.

The Union Ministry of Shipping has proposed a dual strategy to Mormugao Port Authority (MPA) for acquiring a much-needed harbour crane. In a bid to enhance container transfer efficiency, MPA has been advised to explore the public-private partnership (PPP) model. However, if private sector participation proves elusive, the Ministry stands ready to fund the procurement.The pressing requirement for a new crane emerged due to the breakdown of the port's harbour mobile crane in 2020. The subsequent intermittence in container cargo feeder services prompted cargo redirection to Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The harbour crane is pivotal to bolstering container cargo operations at the port.To address this issue, MPA is currently in the midst of a PPP tender for the redevelopment of berths 10 and 11. Integral to this plan is the acquisition of a 100-tonne mobile crane. The Ministry's suggestion to incorporate the crane into the ongoing PPP model aligns with broader redevelopment goals.N Vinod Kumar, Chairman of MPA, stated, In the event of the tender not attracting participants or receiving bids, the Ministry has offered to allocate necessary funds to the port for acquiring the crane. This acquisition is intended to streamline cargo movement.Initially, MPA sought financial support from the Ministry under the Sagarmala mission, which was declined. The Ministry's recommendation to opt for a PPP approach aims to drive efficient and sustainable procurement.Kumar elaborated on the forward strategy, saying, Our hope is that a private entity will undertake the crane procurement and operate it under a revenue-sharing arrangement for ten years.Given the specialised nature of harbour cranes and the limited supplier pool, a timeline of six to eight months is anticipated for the acquisition process. Even if the PPP route is pursued, operational readiness is expected to take a similar duration.As the port navigates this crucial decision, the collaboration between the government and private sector is poised to shape the future of container transfer operations at Mormugao Port.

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