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Privatization

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CAPTIVE JETTIES FOR INDUSTRIES

To ensure that the new port projects are financially viable. permissions for captive jetties would be given only in exceptional cases, looking to the quantum of investment and the need for specialized facilities. All industrial units would be encouraged to make use of new port facilities being set up.

To take care of the increasing traffic until the completion of the new port projects, it is decided to make use of the existing captive jetties already constructed or under construction, for which the permission has already been given to be utilized for specific commercial cargoes with the prior approval of the Gujarat Maritime Board.

  1. This facility would be available for a reasonable period till new ports become operative. GMB will review the policy, taking into account the progress made in the new ports.

  2. Gujarat Maritime Board would be entitled to collect full wharfage charges on the cargoes handled, which are not captive to the industrial units.

Looking to the huge amount of cargo handled in a short period, captive Single Point Mooring (SPM) facilities of industries located in Gujarat will be charged at concessional rate of wharfage for their captive consumption. Nevertheless, captive cargo for industries located outside Gujarat and non-captive commercial and industrial cargo, will be charged full wharfage by Gujarat Maritime Board.

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PRIVATISATION OF SERVICES

Privatisation of services would be done in the following areas :

  • Lighterage

  • Dredging

  • Piloting

  • Tug towing service

  • Other essential utility services

The lighterage operations will be privatized in the selected existing minor ports and in all new ports. However, for the use of private barges, the operator will have to pay the service charges as per the existing schedule. This would increase the efficiency of handling of the cargo. 

The dredging is an important component for development of ports and its subsequent maintenance. Gujarat Maritime Board will gradually withdraw in a phased manner from the dredging operations. Gujarat Maritime Board would encourage to form a joint venture company, with a private entrepreneur, to form Dredging Corporation of Gujarat, to cater to the dredging needs of all the ports of Gujarat. The existing dredging equipments alongwith waterfront facility available with Gujarat Maritime Board, will form the equity for such a joint venture. The proposed joint venture company will have modern dredging equipments to take care of dredging needs of Gujarat Maritime Board.

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BARGE MOUNTED POWER PLANTS

To increase the availability and ensure quality of power in Gujarat, the barge mounted power plants in five coastal districts of Kutch, Junagadh, Amreli, Bhavnagar and Bharuch will be provided, with port facilities. Wherever possible, they will be accommodated in the existing port sites or any site identified by them in Gujarat Maritime waters. To encourage establishment of these barge mounted power plants, wharfage would be charged at a concessional rate of 25% of the existing rate.

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INDUSTRIALISATION

Major aim of port development in Gujarat, is to promote regional development. Port based industrial estates would be established in 4 to 5 new Port areas to facilitate import of raw-materials and export of finished goods to make industries located in Gujarat globally competitive. These port based industrial estates would emerge as 'Islands of Competence'. Gujarat Industrial Development Corporation would plan such estates in the vicinity of the port locations with all necessary infrastructure facilities. It is estimated that more than 50% of the total future investment coming to Gujarat in the Industrial sector are likely to be located nearer to the port locations. Industrial development shall be synchronized with port development.

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INFRASTRUCTURAL DEVELOPMENT

The huge investments in the port sector would demand and equal investments in the infrastructure facilities like roads and railways for faster and efficient handling of the cargo movement. The existing port locations have been identified where broad gauge railway link and good road network exist. The locations have been specifically selected, with a view to have minimum burden on existing infrastructure facilities.

Three corridors were kept in mind while identifying the sites for new port locations. They are as follows :

  1. The first corridor consists of ports of Okha, Positra, Rozi, Jamnagar Refineries, Navlakhi, Kandla, Mudnra and Mandvi, around Gulf of Kutch. The road connecting these ports will be linked with Rajasthan, through Radhanpur and Tharad and ultimately to Northern States.

  2. The second corridor comprises of connecting Ahmedabad with ports of Dholera, Bhvnagar, Mithiwirdi, Alang, Pipavav, Simar and Veraval.

  3. The third corridor will consist of Dahej, Hazira, Vansi-Borsi and Maroli, which will be linked to the proposed Express Highway.


The above corridors connecting respective ports offer tremendous potential for truck traffic, which will be highly suited for privatization in the future.

These corridors offers nearst destinatiosn to adjoining hinterland states of Rajasthan, Madhya Pradesh and Maharashtra.

Similarly, the Gulf of Kutch corridor offers the possibility for second railway line parallel to the existing one to be connected to Mehsana-Palanpur Delhi route, which is under gauge conversion. Similarly, Ahemdabad-Surendranagar-Bhavnagar gauge conversion and ultimate extension upto Veraval along the coast, by broad gauge railway line also offer goods privatization potential. The port locations also offer opportunities for dedicated railway wagon investment by private entrepreneurs.

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COASTAL SHIPPING

With the development of the new ports with modern handling facilities, many of the Gujarat ports can act as "transshipment ports" for rest of the country. It is expected that in the years to come, 25% of the total cargo would be transported through coastal shipping. 

Introduction of RO-RO service and hovercraft/catamaran service, joining different terminals on Saurashtra and Kutch coast with South Gujarat will be given highest priority. This will not only save the cost and time of transportation of men and material from one place to another, but will substantially reduce the pressure on the existing roads and rail network of the country. These facilities will also promote tourism, linking places of historical, religious and tourist interests of Kutch and Saurashtra with South Gujarat. It will also encourage to locate amusement parks and water sports on Gujarat Coast. These terminals will be used to transport passengers and cargo to important centers on the western coast like Bombay and Goa.

The terminal facilities within the State of Gujarat will be created by Gujarat Maritime Board at its own cost and a service charge will be collected from the operators. Dahej- Gogha and Surat-Bhavnagar passenger terminal facilities will be started on a top priority basis.

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NAVIGATIONAL AID IN GULF OF KUTCH

With the development of new ports, the Gulf of Kutch is likely to handle about 100 million tones of cargo every year. Ultra-model vessels are likely to navigate in the Gulf of Kutch in the coming years. Exclusive Vessel Traffic Monitoring Systems; (VTMS) will be introduced in co-operation with Indian Navy.

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MARITIME RELATED INDUSTRIES

Maritime related industries would be given priority to be located along Gujarat Coast, in collaboration with the leading global manufacturers, in the field of ship building, ship repairing, dredgers and other flotilla units like tugs, barges, launches and support crafts. The manufacturing facilities would be provided in identified three locations of South Gujarat, Saurashtra and Kutch. The traditional boat building activities at Mandvi and Veraval would be leased to such manufacaturing units at subsidized rates. Other concessions extended by the Government of Gujarat as an industrial unit will also be available for such manufacturing units as per the industrial incentive policy in existence.

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IMPLEMENTATION

The port policy is an integrated approach, covering port development, industrial development, power generation and infrastructure development. Gujarat Maritime Board, will act as Co-ordinating Agency in procuring land, water, power, infrastructure facilities like rail and road and any other clearances to be obtained from the Government of Gujarat or Government of India. A High Level Committee headed by the Chief Secretary, will monitor the implementation of the integrated approach and report to the Infrastructure Development Board and Cabinet on the progress of the implementation of the policy, periodically.

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