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PPPs IN INDIAN

PORT SECTOR

BY-

BASUDHA BISWAS

MOUSUMI SARKAR

SWASTI RANJAN SAHU

TANIA DUTTA

YUSUF HYDERBHOY

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PPP- A contractual partnerships between the publicsector(Govt.) and private sector agencies under terms andconditions agreeable to both the parties.

Purpose- specifically targeted towards developing andoperating public utilities and infrastructure by the private

sector.

Mainly formobilizing private financing, but also

y to maximize revenue for Port Authority

y to improve port competitiveness

y to boost international trade with the rest of the world

y to bring in private sectorefficiency

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EFFICIENT &

QUALITY

DELIVERYOF

PUBLIC

SERVICES

Common

O j ti

Pri t

S tor

P li

S tor

S i l kill

Fi i l

Resour es

Effi iencies

Technical

skills

Risk

Mana

gemen

t

S st inabl

& Effi i nt

S r i

D li ry

Syst m

Leveraging mutual strengths

OUTCOME

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SectorAnalysis

y Indian ports handle 90% (599.00MT)of the foreigntrade by volume.

y Growing at 7.7% p.a. & expected to reach 15.5% by2011-12 over a period of 7 years.

y 11 out of 12 major ports run by Port Trust while theport at ENNOR is corporation under GoI.

y All the projects are under National Maritimedevelopment Plan ofGoI.

y Major participants are- Dubai Ports International,Maersk, P & O Ports, PSA Singapore, etc.

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Estimated Cargo Capacity

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FDI in Ports

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P rojected Investments into

Ports

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PROJECT LOCATI

ON COMPANY I

NVESTMENTDhamra Port Orissa L&T and Tata Steel Rs. 22464 crores.

GreenfieldShipyard

South Gujarat ABG Shipyard USD 255.58million

Mega-

shipbuilding yard

Chennai L&T USD 425.97

millionMundra Port andSpecial Economic

Zone Limited(MPSEZL)

Gujarat Adani Group Rs 12 billion

Common rail

operator service

Dubai JNPT & Dubai

Ports World

------------------

Kandla Port Trust(KPT)

Gujarat ABG Shipyard &Bharati Shipyard

Rs 4-billion

Rewas port. Mumbai Reliance LogisticsInvestment & Jai

Corporation

Rs 25 billion

REALITYBITES

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private players continue to face several challenges

2009-10 would be another challenging year fordomesticports

most states are yet to seriously commence PPPprograms

frameworks in India need to be developed

processes for identifying and procuring PPPs are

often not clearly laid out. most state governments in India are at an early stage

in the development of their PPP programs.

CONCLUSIONS

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The public partner should set clear and unambiguousobjectives

Public sector negotiators have to improve their strategic

and technical proficiency as well as their negotiatingstrategies

public actors should distinguish between short-termliquidity and long-term profitability

Public-privatepartnershipprojects require democraticcontrol

increasing public-private co-operation should notdowngrade quality and competence in established local

authorities

RECOMMENDATIONS

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