The Karnataka government has called bids to privatise four cargo berths located at Karwar, Mangalore and Malpe ports, shifting key cargo handling facilities along the state’s coastline to a Public-Private-Partnership (PPP) model of operation.
The tender covers berths at Karwar, Old Mangalore (city side), Old Mangalore (Bengre side) , and Malpe. These will be awarded to private firms on a Renovate, Operate, Maintain and Transfer (ROMT) model.
The state government invited offers after the Cabinet approved the plan on October 30.
The private entity quoting the highest royalty per ton of cargo handled at the berths will be awarded the deal for 30 years for the Old Mangalore and Malpe berths and 15 years for the Karwar berth.
The introduction of the PPP model is aimed at modernising port infrastructure, improving cargo-handling efficiency and creating a more sustainable revenue framework for the Karnataka Maritime Board (KMB), a state government official said. The model is also expected to facilitate the adoption of advanced technology and improve long-term operational reliability.
The initiative will boost coastal shipping, attract private investment, expand employment opportunities and support allied sectors such as tourism and fisheries, the official said.
Black Brix, the transaction advisor for the projects, said the bid documents have been uploaded on the Karnataka Public Procurement Portal and potential bidders have time until December 23 to submit their qualification documents.
The projects are expected to draw good interest from private operators after the Supreme Court allowed resumption of iron ore exports through the Karnataka coastline in May 2022.
These berths are included in the Standard Operating Procedure for handling iron ore in Karnataka, the official said.
Simultaneously, the Amdalli siding at Karwar is being developed by Karnataka Maritime Board in collaboration with Konkan Rail Corporation Ltd which is expected to enhance the marketability of Karwar berth substantially.
Unlike other coastal states, Karnataka has had limited success in developing ports on PPP model.
The only success has been awarding a 30-year contract to JSW Infrastructure Ltd, the port unit of Sajjan Jindal-led JSW Group, for developing and operating a port at Bhavikeri Keni village in Ankola taluka of Uttara Kannada district.
The new port is estimated to cost ₹4,118.84 crore to build. It will have a capacity to handle 30 million tonnes (mt) of cargo in the first phase which can be expanded to 56.5 mt based on demand.
(source: ET Infra)