Kerala opts for PPP mode to develop assets under ports department

As a means of revenue generation, the ports department has leased its assets including land, buildings and godowns to private parties.
Beypore port
Beypore port

KOCHI: The Kerala government has decided to develop assets under the ports department, including the 16 non-major ports in the state, in the public-private partnership mode. The Kerala Maritime Board has brought in the consultancy wing of the Kerala State Electricity Board to select project monitoring consultants to prepare project proposals for the development of assets.

The KSEB has already invited requests for proposals for the purpose. “There is tremendous possibility for the development of maritime assets once the Vizhinjam port becomes operational," Kerala Maritime Board Chairman N S Pillai said. "There are 16 non-major ports under the ports department. The development of the non-major ports needs huge investment and we have limitations in implementing the projects because of a lack of funds. There is huge potential for jobs and revenue generation. Private investors will be developing and operating the projects for 30 years.”

One of the major projects is to design, construct and operate a floating dry dock at Kollam. "We have assessed the dry dock capacity and the demand for the facility. Considering the limited number of dry docks in the country, there is an urgent need for a state-of-the-art floating dry dock facility for the repair and maintenance of vessels with an overall length of 100 to 110m. Besides, the development of a dry dock adjacent to the Vizhinjam port will have great prospects,” Pillai said.

As a means of revenue generation, the ports department has leased its assets including land, buildings and godowns to private parties. The coastal land under the Kerala Maritime Board at Valiyathura, Kozhikode and Kasaragod has enormous potential for development. Private investors can establish hotels, convention centres, maritime museums and fish processing units in these assets. The project is expected to bolster coastal tourism as well.

The Kerala Maritime Board has held discussions with the Shipping Corporation of India on the possibility of launching passenger ship services connecting the Middle East and Kerala. The plan is to operate hybrid ships with cruise and cargo facilities. The ships will be operated to Kochi and Beypore. The maritime board will appoint a project monitoring consultant to study the viability of the project, after which a global tender will be floated inviting operators.

A private cruise operator has come forward expressing interest in operating cruise services connecting four non-major ports in Kerala. Having received permission from the maritime board, the operator is in search of a local investor.

Non-major ports in Kerala

Thalassery, Kannur, Neeleswaram, Manjeshwar, Kasaragod, Azhikkal, Ponnani, Beypore, Kozhikode, Vadakara, Alappuzha, Kodungalloor, Kollam, Kayamkulam, Neendakara and Valiyathura are the non-major ports in Kerala.

Plans are afoot to develop a dry-dock facility at Kollam, hotels and convention centres at Valiyathura, Kozhikode.

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