Gujarat’s Port Review May Set National Benchmark

This could open a new chapter in the country’s port policy and benefit all coastal states. For this purpose, the state government has completed the process of selecting an asset valuer, who will soon be appointed to conduct the study. 

The move assumes significance amid the Narendra Modi government’s aggressive push for a port-led development model. 

A top official of the Gujarat Maritime Board (GMB) told The Secretariat that currently, 36 captive jetties and around 11 private jetties are operational in the state, strengthening Gujarat’s recently re-measured 2,300-km-long coastline. 

Evaluating the assets of seven private ports and their jetties marks a significant step toward transparency and policy direction in the maritime sector. 

In addition to the centrally operated Kandla port, Gujarat has 48 non-major ports where the state government and private companies are jointly developing cruise facilities, port-led cities, and other projects.

In June last year, GMB issued a request for proposal (RFP) to select an accredited asset valuer for evaluating these seven major private ports and 24 captive jetties. The process has now been completed. 

Under the concession agreements with private ports and captive jetty contracts, parameters such as construction cost, current condition of assets, and market value will be assessed using methods like depreciated replacement value (DRV) and depreciated historical cost (DHC).

Such a study will help the government bring transparency to royalty, lease rentals, and other recoveries. It will also enable the reassessment of capital investments made by private and captive ports, reducing disputes. The financial bids for this process were completed in August.

Likely Impact of the Valuation:

• Until now, the actual valuation of investments in private ports and captive jetties was unclear, but this process will provide the government with accurate figures
• If the valuation shows a higher market value of assets, the government’s royalty collections will increase
• Transparent valuation will require private ports to bring greater order and documentation into their operations
• This exercise by GMB could become a model for India’s maritime sector and be replicated by other states
• GMB currently collects waterfront royalty charges, lease rentals, and Vessel Traffic Management System (VTMS) fees from private ports and jetties

Senior sources in the Ports Department said that over the past three decades, Gujarat has made several pioneering efforts to attract private investment in ports. Ports like Pipavav, Mundra, Dahej, and Hazira have today become national leaders. Now, with accurate valuation of its assets, Gujarat can further strengthen its position as India’s maritime hub. 

Cargo handled at non-major ports in the state has grown from just 16 million metric tonnes (MMT) in 1995 to 449 MMT by 2024 — the highest growth rate among all states.

New Direction For Nine Coastal States

The valuation of ports will also help the nine coastal states of India generate higher revenues. Across the country’s 14 major and 217 non-major ports, actual investment data will become available. Importantly, Gujarat alone accounts for more than 60 per cent of India’s non-major port cargo. By 2030, the state’s cargo handling is expected to reach 650 MMT.

The valuation will boost state revenues, while also strengthening port-based infrastructure in preparation for events like the 2030 Commonwealth Games and the 2036 Olympic projects.

Union Territories With Ports:

• Andaman & Nicobar: 1 major port, several small jetties
• Lakshadweep: 10 small jetties
• Puducherry: Small fishing ports and jetties