Major Ports to Embrace Landlord Model

22 May 2024 CW Team

The Shipping Ministry of India is set on transforming 80% of its major ports to the landlord model by 2030. This strategy involves port authorities acting primarily as regulators and landlords, while private companies manage port operations, including cargo handling and terminal management.

The landlord model is anticipated to enhance operational efficiency, boost investment, and upgrade port infrastructure, aligning Indian ports with global standards. T.K. Ramachandran, Chairman of the Indian Ports Association, highlighted that this shift is critical for improving competitiveness and supporting economic growth. Under this model, ports can attract more private investments due to increased transparency and better regulatory practices. The private sector?s involvement is expected to bring advanced technology and best practices, thereby improving service quality and operational performance.

This move follows successful implementations of the landlord model in leading global ports, which have shown significant improvements in performance and profitability. The Indian government aims to replicate these successes, fostering a more dynamic and efficient port sector that can better handle the growing demands of international trade.

In addition to efficiency gains, the landlord model is likely to provide substantial economic benefits, including job creation, improved logistics, and enhanced global trade connections. By modernising port management and operations, India hopes to establish its ports as major hubs in the global maritime landscape, driving economic growth and development.

Overall, this strategic initiative represents a significant step towards modernising India?s port infrastructure, positioning the country as a competitive player in the global maritime industry.

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