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Public Private Partnership in port sector crucial; efforts of all stakeholder imperative in making it more efficient: Chairman, IWAI

Aug 17, 2022

Pipeline of around Rs 28,000 crore in next 7-8 years which is a big boost for the shipping and port sector: Chairman, Syama Prasad Mookerjee Port

KOLKATA, 17 August 2022: Mr Sanjay Bandopadhyaya, Chairman, Inland Waterways Authority of India, GoI today said that Public Private Partnership (PPP) in maritime sector, especially in port sector is crucial and with the collective steps of all stakeholders it is becoming a more efficient and better model. "We have to innovate, customize the solutions, sit with all stakeholders to put everything in the concession agreement to the extent we can put in. Flexibility has to be also built in," he added.

Addressing the two-day 'Maritime Public Private Partnership Conclave 2022', organized by Syama Prasad Mookerjee Port, Kolkata with FICCI as an Industry Partner, Mr Bandopadhyaya said that the technology is shifting towards higher efficiency which is throwing up new challenges. The next 25 years will witness significant changes in the entire sector including cargo and vessels. Highlighting the importance of PM Gati Shakti Masterplan, he said that the multi-modal connectivity is aimed at developing infrastructure to reduce logistic costs and boost the economy. "PM Gati Shakti will ensure true public-private partnership in infrastructure creation and would bring down the time and cost overrun of projects," he stated.

Mr Vinit Kumar, Chairman, Syama Prasad Mookerjee Port, said, we are celebrating the silver jubilee of PPP in the port sector and over Rs 20,000 crore have been invested in it under the PPP model which accounts for around 30 per cent of the total capacity in the port sector. "There is a pipeline of around Rs 28,000 crore in next 7-8 years which is a big boost for the shipping and port sector," he added. Speaking on the vision MIV 2030, he said that the Landlord model is the model for the future where in the ports will play the role of a regulator and the services will be provided by the private sector under the PPP mode.

He further stated that most of the PPPs are taking place for berth and terminal and there is a lot of opportunity in the connectivity and services. "We need to look at multi-modal transport including rail terminals. We also need to have more avenues in the shipping services sector where PPP should be introduced," he added.

Mr Dhruv Kotak, Chairman, Ports and Shipping, FICCI Committee on Transport Infrastructure and MD, JM Baxi Group said that the National Monetization Pipeline has been a planned and structured manner that has been able to generate major interest globally and India is rightly placed to tap the opportunities.

Mr Madhu S Nair, Chairman and Managing Director, Cochin Shipyard Ltd said that ship repair ecosystem is one of the most important enablers for the maritime sector. He also stated that for India to become a $5 trillion economy, it is imperative to bring down the logistics cost. "The PM Gati Shakti also highlights the need to bring down the total logistics cost in India which is around 14 per cent of the GDP today to 8 per cent at par with the international market," he added.

Mr Gopal Krishna, Principal Program Advisor, Cross Border Infrastructure and Connectivity Program, USAID and Former Secretary, Ports, Shipping and Waterways, Govt of India said that in the times to come, it is the policy of the government to give all business activities to the private sector. "We have to be easy in regulations but strong in governance," he added.

Mr Shambhu Singh, Former Special Secretary & Financial Adviser, Ministry of Road Transport & Highways, Govt of India and Mr AK Mehera, Deputy Chairman, Syama Prasad Mookerjee Port also shared their perspective on the future of PPP in maritime sector.

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