Gujarat government announces new port policy to boost captive jetty operations

Gandhinagar: The Government of Gujarat today announced a new port policy, mainly benefiting the existing and future players of captive jetties.

Highlights of new policy

– 32 existing captive jetty permitted are now allowed to handle third party cargo.

– Existing captive jetty permitted will be able to increase the facilities for cargo handling, expansion and modernization and invest more for that.

– Group companies will also be allowed to handle cargo. Present captive jetty companies and terminal companies will be able to handle cargo of group company on jetty.

– Captive jetty holder will be able to handle cargo of other companies by paying double wharfage charges.

– Gujarat government arm, Gujarat Maritime Board (GMB) will issue EoI (Expression of Interest) to invite participation of businesses in port sector for which minimum investment required shall be Rs. 300 crore and minimum port capacity created should be 5 million mt.

– New entrant’s jetty location must be minimum 3 km away from existing jetty and also outside the limit of private port, announced by State govt. In case of strategic ports of Dahej and Hazira, this minimum distance required shall be 1 km.

According to State government, following are projected benefits of new port policy:

– Value addition of captive jetty, capacity building modernization for captive jetty companies and industry due to fresh investment, opportunity for mechanization and backward-forward integration in value chain.

– Comprehensive development of captive jetty due to lifting of restrictions.

– Increase in commercial port activities beyond 79.5 MMTPA.

– More than Rs. 4,000 crore investment in the area of infrastructure facilities.

– Increase in share of Gujarat in cargo handling nationally from 41% to 46%. This will boost port development strategy.

– Gain of potential economic benefits worth Rs. 70,000 crore.

– Creation of more than 25,000 employment opportunities.

– Estimated increase in Gujarat government revenue by over Rs. 400 crore.

– Increase in coastal shipping and reduced logistic cost.

DeshGujarat

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