The Kandla Custom Brokers’ Association (KCBA) has submitted a detailed representation to Union Minister for Ports, Shipping & Waterways, Shri Sarbananda Sonowal, urging a reconsideration of proposals to allot additional dry cargo berths at Deendayal Port Authority (DPA) under the PPP/BOT model.
In its submission, KCBA highlighted DPA’s strong operational performance, noting that the port handled around 150 million metric tonnes (MMT) of cargo in the last financial year. The Association credited this achievement to direct port oversight and coordinated efforts of stakeholders, including Custom Brokers, stevedores, port users, and the Port Administration.
KCBA drew attention to past experiences with PPP-operated dry bulk berths at DPA, stating that such models had delivered sub-optimal outcomes. Berths 13 to 16, previously operated under PPP/BOT, were taken back by DPA due to persistent non-performance, leading to litigation and administrative challenges. Following reversion to direct port operations, these berths reportedly achieved an annual throughput of around 22 MMT with 97% berth occupancy, underscoring the efficiency of the existing model.
The Association cautioned that PPP arrangements in dry bulk cargo handling often result in higher user charges, operational rigidity, labour challenges, and reduced flexibility—factors that can impact overall port efficiency in a volume-driven and market-sensitive segment.
Looking ahead, KCBA acknowledged the need for capacity expansion to meet future trade growth and suggested the development of at least 10 additional public deep-draught berths under direct port ownership. It also supported a phased and calibrated PPP approach for 5–10 additional berths, with balanced concession terms and stakeholder consultation to ensure sustainability.
KCBA referenced recent remarks by Shipping Secretary Shri Vijay Kumar, who, during a visit to Kandla, emphasised DPA’s goal of achieving 170 MMT cargo handling and aspiring to global port standards. The Association stated that a judicious mix of public infrastructure expansion and well-designed PPP projects would be essential to realise this vision.
The Association has requested the Ministry to reconsider privatisation plans for additional dry cargo berths in their current form and adopt a more balanced, stakeholder-oriented approach.
