Govt plan to develop seven operational cargo berths gets industry nod

04 Aug 2021 CW Team

The Rs 2,500 crore-plan of the government, to utilise private players to seven operational cargo berths managed by state-owned ports has received industry nod.

Several industry players such as Adani Ports, Special Economic Zone (APSEZ), Essar, J M Baxi Group, DP World (owned by the Dubai government), and APM Terminals Management BV, have shown interest in Paradip Port and VO Chidambaranar Port Trust (VOC).

According to the sources at VOC port, they are planning a bulk cargo terminal in a private-public collaboration model at more than Rs 400 crore. At the expression of interest (EoI) stage, they have witnessed interest from several players, like Adani Port, DP World, Baxi Group, and Essar.

Most private players, including Essar, are in line to develop the South Quay Berth (SQB) at Paradip Port Trust for nearly Rs 75 crore.

Moreover, VOC is also planning to develop the North Cargo Berth-III. It could witness an investment of nearly Rs 420 crore.

Nirmala Sitharaman, the Finance Minister, proposed in the Union Budget that seven projects costing Rs 2,000 crore would be on offer for private players, being a part of the new model of management ports.

In February 2021, parliament passed a new law under which ports would move towards an authority governance model, away from the trustee model before.

The Jawaharlal Nehru Port Trust (JNPT) is the largest of the seven projects, planning to privatise its terminal container, investment of nearly Rs 860 crore.

As per the media reports, the port trust is likely to appear with a global tender, in which DP World, APM Terminals Management BV, and APSEZ are expected to participate.

Currently, APM and DP World are managing terminals in JNPT. JNPT would also witness private participation to develop a specific berth run to manage ships that ply just on local routes, an expense of Rs 170 crore.

There are 12 ports under the control of the central government—JNPT, Visakhapatnam, Mumbai, VO Chidambaram, Deendayal (erstwhile Kandla), Mormugao, Chennai, Kamarajar (earlier Ennore), New Mangalore, Cochin, Paradip, Kolkata, including Haldia.

Image Source

Also read: Adani Ports to expand cargo, plans revenue growth

Also read: JNPT's container cargo traffic rose 65.38% to 454,385 TEUs in May

The Rs 2,500 crore-plan of the government, to utilise private players to seven operational cargo berths managed by state-owned ports has received industry nod. Several industry players such as Adani Ports, Special Economic Zone (APSEZ), Essar, J M Baxi Group, DP World (owned by the Dubai government), and APM Terminals Management BV, have shown interest in Paradip Port and VO Chidambaranar Port Trust (VOC). According to the sources at VOC port, they are planning a bulk cargo terminal in a private-public collaboration model at more than Rs 400 crore. At the expression of interest (EoI) stage, they have witnessed interest from several players, like Adani Port, DP World, Baxi Group, and Essar. Most private players, including Essar, are in line to develop the South Quay Berth (SQB) at Paradip Port Trust for nearly Rs 75 crore. Moreover, VOC is also planning to develop the North Cargo Berth-III. It could witness an investment of nearly Rs 420 crore. Nirmala Sitharaman, the Finance Minister, proposed in the Union Budget that seven projects costing Rs 2,000 crore would be on offer for private players, being a part of the new model of management ports. In February 2021, parliament passed a new law under which ports would move towards an authority governance model, away from the trustee model before. The Jawaharlal Nehru Port Trust (JNPT) is the largest of the seven projects, planning to privatise its terminal container, investment of nearly Rs 860 crore. As per the media reports, the port trust is likely to appear with a global tender, in which DP World, APM Terminals Management BV, and APSEZ are expected to participate. Currently, APM and DP World are managing terminals in JNPT. JNPT would also witness private participation to develop a specific berth run to manage ships that ply just on local routes, an expense of Rs 170 crore. There are 12 ports under the control of the central government—JNPT, Visakhapatnam, Mumbai, VO Chidambaram, Deendayal (erstwhile Kandla), Mormugao, Chennai, Kamarajar (earlier Ennore), New Mangalore, Cochin, Paradip, Kolkata, including Haldia. Image Source Also read: Adani Ports to expand cargo, plans revenue growth Also read: JNPT's container cargo traffic rose 65.38% to 454,385 TEUs in May

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