PPP Projects
Gujarat has been pioneer in encouraging public private participation in the Port sector. It has reaped enormous success in its PPP model and has set up a benchmark for other states to follow.
 |
Gujarat Maritime Board has multiple port privatization models to promote private player participation in Gujarat ports and to enhance its holistic development.
The State has pioneered the concept of port liberalization and has tactically utilized it to become India’s fastest-growing state. It has broken new ground with different forms of privatization and has aptly converted the minor ports into one of the biggest revenue creator. It has devised SPVs to build rail links between new ports and the country’s main rail system. Augmenting its presence, private ports has also significantly improved its efficiency and capacity with the central government’s recent scheme for Special Economic Zones.
The private participation has also enhanced efficiency of port infrastructures, which have in turn, created industrial centers (such as the pipeline hub at Anjar and several new shipyards).
These results hold salutary lessons for other nation’s and Indian states to follow. The State has shown an adept business model of developing minor port and gradually upgrading it to a major port. The progression starts with privatization of port services such as stevedoring, piloting, tug towing, lighterage and dredging. This follows with the creation of privately managed jetties and terminals within government-owned ports. Subsequently, captive jetties are set up by coast-based industries. And, finally, an entirely new, privately owned ports comes up. An important supplementary investment is required for rail links connecting new port to the hinterland. This strategy of privatization in stages reduces the financial constraint of the business and thus increases competition. Implying the strategy of step-by-step approach, Gujarat has shown its competency in the field of liberalization and privatization. It has also shown how private investment can be used to create rail links with the hinterland. This approach endows with better and cheaper infrastructure (which increases the profitability of exports and hence economic growth), the development of new port-based industries, and skill development—which will come in handy when developing new ports in the future.
The prominent laurels accomplished by Gujarat Port sector by the virtue of privatisation are:
Successful PPP Models for port sub sectors:
- Captive Jetties
- Greenfield Ports
- Private Jetties
- Development of Port Terminal through Joint Venture
- Private Participation in Rail linkages to Ports
- Private Participation in Existing ports for revival
- Coastal Area Development and Ro- Ro services
- Private Participation in Supporting Services
- Ship Building
|
|
|