The Jawaharlal Nehru Port has recently become the first significant port of India to transition into a 100% Landlord port. This move involves all berths operating under the Public-Private Partnership (PPP) model.
Understanding the Concept of a Landlord Port
In the realm of ports, a landlord port refers to a model where the publicly governed port authority acts both as a regulatory body and a landlord, while private companies assume responsibility for port operations, primarily cargo-handling activities. Hence, in this setup, the port authority owns the port, but it leases its infrastructure to private firms. These firms then provide and maintain their superstructure, installing their own equipment for cargo handling. The revenue earned in this process is shared between the landlord port and the private entity.
Service Port Model
In contrast to a landlord port, a service port model involves the port authority handling administration and operation of port activities. They provide navigational services, warehouse facilities, cranes, and skilled laborers. All aspects, including infrastructure, superstructure creation and providing employees, is the responsibility of the port authority. Despite the state or government retaining full ownership of the port, inefficiencies often lead to financial losses for service ports.
Jawaharlal Nehru Port: A Snapshot
Situated in Navi Mumbai, the Jawaharlal Nehru Port is the topmost container handling port in India, handling around 50% of the total containerized cargo volume across the country’s major ports. Since its inception in 1989, the port has evolved from a bulk cargo terminal to the premier container port in India.
With top-notch facilities, the JNP meets all international standards and offers excellent connectivity by rail and road to the hinterland. Presently, it handles 9000 twenty-foot equivalent units (TEUs) capacity vessels, but with upgrades, it is expected to handle 12200 TEUs capacity vessels.
Decoding the PPP Model
Public-private partnerships (PPP) involve a government agency working together with a private-sector company for financing, building, and operating projects. These can range from public transportation networks to parks and convention centers.
From an Indian perspective, PPPs are considered as an effective tool for attracting investment in the port sector. Until now, 86 projects worth Rs. 55,000 Crores have been granted approval under PPP. Key projects include berths, mechanization, development of oil jetty, container jetties, O&M of the container terminal, commercialization of non-core assets, and tourism projects.
With the cargo volume projected to grow1.7 to 2 times by 2030 compared to 2020, up to 85% of cargo handled at Major Ports could be managed by PPP or other operators by 2030.
UPSC Civil Services Examination Previous Year Question
In 2009, UPSC Civil Services Examination posed the question about major and non-major ports in India. The question was “In India, the ports are categorized as major and nonmajor ports. Which one of the following is a nonmajor port?” The options given were (a) Kochi (Cochin) (b) Dahej (c) Paradip (d) New Mangalore. The correct answer was (b) Dahej, which is a non-major port located in Gujarat.
Currently, the country has 13 major ports and 200 non-major ports. Some of the major ports include Deendayal Port Trust- (Kandla) in Gujarat, Mumbai Port Trust and Jawaharlal Nehru Port Trust in Maharashtra, Mormugao Port Trust in Goa, and Chennai Port Trust in Tamil Nadu among others.
