Mumbai Port to privatise cargo units

In its bid to induct mechanisation and increase productivity, Mumbai Port Trust is planning to privatise its four cargo terminals and will float tenders inviting bids from private players by this month end.

"The estimated cost for developing these four cargo terminals is around Rs 100 crore (Rs 1 billion). These terminals will be developed on build-operate-transfer basis with a revenue sharing clause," T V Sowri Rajan, additional docks manager MbPT, said.

Rajan said the port would be developing three multi-purpose cargo terminals with two berths each, which would handle conventional cargoes like liquid, dry and break bulk and general cargo.

"The fourth one will be a dedicated terminal, also with two berths, for handling purely dry bulk cargo including fertilisers, pulses and oil cakes", he said.

He said the cost of constructing a multi-purpose berth was estimated at Rs 20 crore (rs 200 million) each and Rs 35 crore (Rs 350 million) for the dedicated dry bulk terminal.

"We will be floating tenders for these terminals by this month end and shortlisting of private players will be complete by October," Rajan said.

Privatisation would not only result in better infrastructure and high productivity, but is also expected to promote healthy intra-port competition. This is expected to boost revenue and traffic prospects of the port too, he said.