PPPs IN INDIAN

PORT SECTOR

BY-
BASUDHA BISWAS
MOUSUMI SARKAR
SWASTI RANJAN SAHU
TANIA DUTTA
YUSUF HYDERBHOY
 PPP- A contractual partnerships between the public
sector(Govt.) and private sector agencies under terms and
conditions agreeable to both the parties.
 Purpose- specifically targeted towards developing and operating
public utilities and infrastructure by the private sector.

Mainly for mobilizing private financing, but also

 to maximize revenue for Port Authority

 to improve port competitiveness
 to boost international trade with the rest of the world
 to bring in private sector efficiency
 Common Public Private
OUTCOME
Objective Sector Sector

•Efficiencies Sustainable
EFFICIENT & •Social skills
•Technical & Efficient
QUALITY
•Financial Service
DELIVERY OF skills
Resources
PUBLIC •Risk Delivery
SERVICES Management System

Leveraging mutual strengths

 Indian ports handle 90% (599.00MT)of the foreign
trade by volume.
 Growing at 7.7% p.a. & expected to reach 15.5% by
2011-12 over a period of 7 years.
 11 out of 12 major ports run by Port Trust while the
port at ENNOR is corporation under GoI.
 All the projects are under National Maritime
development Plan of GoI.
 Major participants are- Dubai Ports International,
Maersk, P & O Ports, PSA Singapore, etc.
Estimated Cargo Capacity
FDI in Ports
P rojected Investments into
Ports
 PROJECT LOCATION COMPANY INVESTMENT
Dhamra Port Orissa L&T and Tata Rs. 22464 crores.
Steel
Greenfield South Gujarat ABG Shipyard USD 255.58
Shipyard million
Mega- Chennai L&T USD 425.97
shipbuilding yard million
Mundra Port and Gujarat Adani Group Rs 12 billion
Special Economic
Zone Limited
(MPSEZL)
Common rail Dubai JNPT & Dubai ------------------
operator service Ports World
Kandla Port Trust Gujarat ABG Shipyard & Rs 4-billion
(KPT) Bharati Shipyard
Rewas port. Mumbai Reliance Logistics Rs 25 billion
Investment & Jai
Corporation
 private players continue to face several challenges
 2009-10 would be another challenging year for
domestic ports
 most states are yet to seriously commence PPP
programs
 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.
 The public partner should set clear and unambiguous
objectives
 Public sector negotiators have to improve their strategic
and technical proficiency as well as their negotiating
strategies
 public actors should distinguish between short-term
liquidity and long-term profitability
 Public-private partnership projects require democratic
control
 increasing public-private co-operation should not
downgrade quality and competence in established local
authorities