Shipping Ministry working to reach 80% landlord model at major ports by 2030: Ramachandran
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India
21-05-2024
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The Shipping Ministry is working to shift to an 80 percent landlord model by the end of this decade to increase efficiency and reduce logistics costs at major ports, a senior government said on Saturday
New Delhi: Shift to Landlord Model to Enhance Port Efficiency by 2030
The Shipping Ministry of India is striving to transition to an 80 percent landlord model at major ports by the end of this decade, aiming to boost efficiency and reduce logistics costs, a senior government official announced on Saturday. Under the landlord model, private entities manage operational aspects, while the port authority retains a regulatory and landlord role.
At the CII Annual Business Summit 2024, Ports, Shipping, and Waterways Secretary TK Ramachandran highlighted that Jawaharlal Nehru Port (JNPT) has become India's first major port to fully adopt the landlord model, with all berths operated under the public-private partnership (PPP) framework. The PPP model is seen as an effective means to attract investment into the port sector.
India has 12 major ports with substantial capacity. "We aim to shift to an 80 percent landlord model by the end of this decade," Ramachandran stated. He emphasized that the Shipping Ministry's strategy to improve cost-efficiency and ease of doing business revolves around four pillars: developing port-based industrial clusters, investing in the maritime sector, ensuring successful PPPs, and promoting multi-modality.
A decade ago, India had only five national waterways, but now the number has expanded to 111. Significant legislative reforms have been undertaken, including updates to the Major Ports Act and the Inland Vessels Act, alongside amendments to model concession agreements (MCAs) to make them more attractive to the private sector, financial institutions, and investors.
These initiatives reflect India's commitment to modernizing its maritime infrastructure, fostering economic growth, and enhancing its position in global trade.