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23 Jul 2022 Jawaharlal Nehru Port First Major Port with Landlord Model

Posted at 10:28h in Daily current-affairs by khyati khare 0 Comments

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Recently Jawaharlal Nehru Port has become the first major port in India to have 100% Landlord Model, with all berths operating on Public-Private Partnership model.

In this model the publicly governed port authority acts as a regulatory body and a landlord, while private companies operate the port which mainly involves cargo-handling activities.
In this model, the port authority owns the port, while the infrastructure is leased out to private firms, who themselves provide and maintain the port’s superstructure and have their own resources to handle the cargo.
In return, the landlord port continues to receive a portion of the revenue from the private entity.

In the service port model, the port authority administers and conducts port activities.
Port operations include providing shipping services, warehouse facilities, cranes and skilled workers/labourers. It is the responsibility of the port authority to build infrastructure, provide superstructure and staff.
Even if the port serves the public interest, the full ownership of the port remains with the state or the government.
Service port models run at a loss due to inefficiency in most cases. Since the port belongs to the state and the port authority has its operational control, the workers go on strike for their demands.

It is located in Navi Mumbai, which is the major container handling port in India, with about 50% of the total containerized cargo volume in the major ports of India.
It was commissioned in the year 1989 and in three decades of its operation the JNP Bulk Cargo Terminal has become the major container port of the country.

It is one of the leading container ports in the country and ranks 26th among the top 100 global ports (as per Lloyd’s List Top 100 Ports 2021 report).
JNP meets all international standards with its state-of-the-art facilities, user friendly environment, as well as excellent connectivity to hinterland by rail and road.
It is currently handling 9000 Twenty-Foot Equivalent Units TEU capacity and with upgrades it can also handle 12200 TEU capacity ships.

Public-private partnerships involve collaboration between a government agency and a private sector company that can be used to finance, build and operate projects such as public transportation networks, parks and convention centers.

PPP is considered as an effective tool for attracting investment in the port sector. So far 86 projects worth Rs 55,000 crore have been approved under PPP.
Major projects on PPP basis include Dockyard, Mechanization, Development of Oil Jetty, Development of Container Jetties, Development of O-&M of Container Terminal, Development of O-&M of International Cruise Terminal, Non-Major of PPP System Commercialization of assets, development of tourism projects, such as development of ports, islands, so as to promote tourism.
The volume of cargo is also expected to increase, due to which this increase will increase from 1.7 percent in 2020 to double by 2020. The percentage of cargo unloading at major ports by PPPs or other operators is expected to reach 85 percent by 2030.