Port development leads to spin-off in rigorous economic activity
Gujarat ports garner 70% of total investments
By Sheethal Balakrishnan
The private-public partnership in port development in Gujarat is yet one more example of how the State has managed to be first among equals. The partnership has now encompassed both the small and large investors as well. The total investment pumped in by the private sector in the non-major ports in Gujarat is in the vicinity of Rs 13,000 crore.
Now juxtapose this with the total private investments committed by the private sector in the country in 19 different port projects: Rs 6,000 crore. This bit of detail has been brought out by the Indian Ports Association (IPA).
Out of Rs 6,000 crore, 13 projects involving investments of about Rs 2,100 crore have already started operations and six projects involving about Rs 3,900 crore are in different phases of implementation, says IPA.
While Gujarat, under the Gujarat Maritime Board (GMD), has witnessed a whopping Rs 13,000 crore investment even as it boasts of high-profile players and port-based industries taking all the risk.
The private sector players who evinced interest in Gujarat include Reliance Industries Limited (Sikka Captive Port Terminal), Shell Gas BV (Hazira LNG Port Project), Petronet LNG Ltd (Dahej LNG Port Terminal), P&O Ports (Mundra Container Port Terminal), Maersk Sealand (Pipavav Port Project) and Adani Group (Mundra Port Project).
Gujarat alone accounts for 83 per cent of total non-major ports? traffic and Sikka (a non-major port in the state) accounts for 56 per cent of Gujarat traffic.
Gujarat'ssuccess has had a cascading effect on the development of ports. Notably, these projects have led to port based industries like cement projects (Ambuja, L&T, Sanghi, Surashtra Cement, etc), refinery projects (Reliance, IPCL, HPCL etc), chemical projects (Gujarat Alkalies), fertilizer projects (GNFC, IFFCO, KRIBHCO) and steel projects (Essar, Welspun).
?No need to investigate more on secrets behind this success. This has happened just because of the strong will power of the State Government and their minimum role in development,? says a GMB official.
The ports under GMB offers maximum operational flexibility with tariff freedom and maximum concession, he adds.
No wonder, Gujarat alone accounts for 83 per cent of total non-major ports? traffic and Sikka (a non-major port in the State) accounts for 56 per cent of Gujarat traffic.
The story is not over. The port privatisation drive of the State has been designed in a phased manner and covers the complete investment portfolio including captive jetties, private jetties in existing ports, private ports and privatization of port services.
?The last ten years have seen a significant surge in the State'scargo traffic across categories. The traffic has been both inbound as well as outbound, providing a gateway to all
major countries in the world,?
a GMB official commented.
Currently, GMB has profiled detailed investment opportunities for the investors for Greenfield port sites including Bedi, Simar, Mithvirdi, Vansi Borsi and Maroli.