PPP model in Port development sector completes 25 years

CHENNAI: Government of India introduced private sector participation in Major Ports to infuse funds, induct latest technology, improve management practices and for addition of capacity and enhancement of functional efficiency marks 25 years this year.

In order to commemorate 25 years of Public Private Partnership (PPP) in the development of Major Port Sector, Chennai Port, Kamarajar Port and VO Chidambaranar Port jointly organized Maritime PPP Conclave on Friday.

S Krishnan, Additional Chief Secretary of Industries inaugurated the conclave alongside guest of honour Muruganandam, Additional Chief Secretary of Finance and Sunil Paliwal, chairperson of Chennai Port Authority delivered the special address. He said that the PPP mode of development was introduced in the Indian port sector in the mid 1990s along with other infrastructure sectors.

"It is expected that such interactions through PPP Conclave will further encourage Public Private Partnerships in Port Industry and lead to the development of state of the art infrastructure in the port and drastically improve the logistics efficiency parameters," stated Sunil Paliwal.

Jawaharlal Nehru Port Authority entered into the first agreement with the private player, viz, Nhava Sheva International Container Terminal (NSICT) in July 1997 making it the first Port Terminal to be developed on PPP basis. "Since then, PPP mode has become the preferred mode of Infrastructure Development in Major Ports accounting for nearly 90 percent of the new investment in berth /terminal infrastructure, " another official from the port authority stated.

The very first agreement between the concessioning authority and concessionaire on PPP mode completed its 25 years of success in July 2022. The conclave saw discussions on various topics, including State maritime development plans, port tariffs, Green and sustainable maritime practices and others.