The New Mangalore Port will shift to become the ‘landlord’ model port with private participation

New Mangalore Port set for transformation, adopt ‘landlord’ model.

The New Mangalore Port will shift to become the ‘landlord’ model port with private participation instead of the current ‘service’ port model. The transformation is expected to come in four years.

This shift in priorities is not unique to Mangaluru. The central government has planned to change models of all the 12 major ports into landlord model from the current service port model. Private participation will be the major shift here. This fact has also been indirectly dealt with by the central budget. In her budget address, minister Nirmala Sitharaman, said that seven projects worth Rs 2,000 crore would be undertaken in mega ports. She hinted that the ports will shift from the maintenance service and become partners in the new system.

The government feels that the progress is not on expected level under the current situation where port trusts are overseeing all activities of the ports. It proposes to adopt landlord model as in several countries, to improve the efficiency and functioning. Under this, the port ownership will be with the government but various services herein would be handed over to private persons. The private parties will look after containers, ships, terminals, godowns etc. The private people will have to establish their machines, cranes etc.

In the case of New Mangalore Port, already it has begun the process of private management by handing over berth No. 15 for coal handling to UPCL which is now with Adani group. Berth No. 16 and 14 are managed by JSW where containers, coal and cement are among the things handled. Reliable sources say that the port here has been asked to get transformed into the new model by the year 2024. All services will have to be given on contract basis and the management will be just outsourcing services and collecting dividend.

Towards changing over to the new style, the port may retain certain employees in strategic positions and ask others to opt for voluntary retirement.