In a landmark asset monetisation move, the Mumbai Port Authority is set to award operation and maintenance (O&M) contracts for 22 cargo berths at Indira Dock to J M Baxi Ports and Logistics Pvt Ltd and M Dinshaw & Co Pvt Ltd for a period of 15 years.
J M Baxi Ports and Logistics emerged as the highest bidder for a cluster of 10 berths, quoting a royalty of ₹153.44 per ton. The company is partly owned by Hapag-Lloyd AG, one of the world’s leading container shipping firms. Meanwhile, M Dinshaw & Co secured the remaining 12-berth cluster with a higher royalty bid of ₹217 per ton.
The deal marks the largest O&M-based monetisation initiative undertaken by a state-owned port authority in India. The move is being spearheaded by M. Angamuthu, Chairman of Mumbai Port Authority, who is replicating a similar model successfully implemented earlier at Visakhapatnam Port.
The initiative is aimed at reviving cargo volumes at Indira Dock, which has seen a decline in recent years, while improving asset utilisation. The port will now focus on handling cleaner cargo segments such as automobiles, construction materials, and project cargo.
Under the O&M model, private operators will handle stevedoring, loading, unloading, storage, and transportation activities, while earning revenue through user charges. However, tariffs will be capped by the port’s Scale of Rates. Operators will pay a royalty per ton of cargo handled and must meet minimum guaranteed throughput targets.
The shift to an O&M framework comes after multiple unsuccessful attempts by Mumbai Port Authority to privatise terminals under the Public-Private Partnership (PPP) model over the past decade, largely due to investor concerns over long-term cargo visibility, ageing infrastructure, and competition from nearby ports.
The new approach is also expected to address operational challenges arising from reduced labour availability and declining productivity, enabling more efficient cargo handling through private sector participation.
