KCBA urges Union Minister Sarbananda Sonowal to Reconsider PPP Model for Dry Cargo Berths at Deendayal Port

GANDHIDHAM/NEW DELHI: The Kandla Custom Brokers’ Association (KCBA) has urged the Ministry of Ports, Shipping & Waterways (MoPSW) to reconsider the proposed move to allot certain dry cargo berths at Deendayal Port Authority (DPA) under the Public–Private Partnership (PPP/BOT) framework, citing past operational challenges and performance concerns. India Shipping News has reviewed a copy of the letter addressed to Hon’ble Union Minister Shri Sarbananda Sonowal.

In a detailed representation to the Minister, KCBA highlighted that while it appreciates the government’s ongoing efforts to modernize port infrastructure and promote the Blue Economy, the earlier experience of PPP-run dry bulk facilities at Kandla has not delivered the desired outcomes.

According to the Association, Deendayal Port Authority—one of India’s leading ports—handled approximately 150 million metric tonnes (MMT) of cargo in the last financial year, a performance enabled by direct port operations and close coordination among port users, stevedores, Custom Brokers, and the Port Administration.

However, the letter points out that PPP-operated Berths No. 13 to 16 experienced prolonged non-performance, contractual lapses, and legal disputes, ultimately leading to their takeover by DPA. Since reverting to direct port management, supported by licensed stevedores, these berths have reportedly achieved an average throughput of around 22 MMT annually with 97% occupancy.

KCBA argues that dry bulk cargo, being volume-driven and sensitive to market dynamics, benefits from flexible, adaptive operational control under the Port Authority. “The PPP model in dry bulk handling often results in operational rigidity, higher user charges, labour-related issues, and reduced direct oversight of strategic assets,” the Association stated in its submission.

While expressing reservations about the current plan for privatization, KCBA has simultaneously emphasized the need for significant capacity expansion over the next decade. The Association has recommended the development of at least 10 new deep-draught public berths under direct port ownership to meet future trade requirements, accommodate larger vessels, and support India’s growing economic activity.

At the same time, KCBA has suggested that an additional 5 to 10 berths may be developed through PPP/BOT arrangements, but only in a phased, calibrated, and stakeholder-driven manner. The Association stressed the need for balanced concession agreements, fair user charges, proper risk allocation, and consultations to ensure commercial viability and long-term sustainability.

The letter also references observations made by Shipping Secretary Shri Vijay Kumar during his recent visit to Kandla, where he underscored the need for Deendayal Port to enhance its cargo-handling capacity to 170 MMT and work toward becoming a globally competitive port.

KCBA concluded by appealing to the Minister to adopt a more balanced approach toward the privatization proposal, keeping in view operational realities, past experience, and stakeholder feedback.