PFC, JICA line up to fund ₹76,220-cr. Vadhavan Port project

Sub: Geography

Sec: Eco Geo

Context:

Indian and global financial institutions, including the Power Finance Corporation (PFC), Rural Electrification Corporation, and Japan International Cooperation Agency (JICA), have expressed interest in funding the ₹76,220-crore Vadhavan Port project.

Details:

The project will be developed by Vadhvan Port Project Ltd. (VPPL), a special-purpose vehicle formed by the Jawaharlal Nehru Port Authority (JNPA) and Maharashtra Maritime Board (MMB).
The project will be developed in two phases under the landlord model, with a significant portion of the infrastructure, including breakwater, dredging, and rail/road linkages, costing ₹43,622 crore.
This includes contributions from the Ministry of Railways, the Ministry of Road Transport and Highways/National Highways Authority of India, and Maharashtra State Electricity Distribution Company Ltd.
The remaining ₹37,244 crore will be funded by private operators of various port facilities. The total debt requirement is estimated at ₹27,283 crore.
The port, strategically located to enhance maritime traffic and reduce logistics costs, will feature nine container terminals, multiple berths for various cargo types, and will increase the national container handling capacity by 23.2 million TEUs, accommodating mega container vessels.

About Vadhavan Transhipment Port:

Vadhavan Transshipment Port is a proposed new port that is going to be the country’s 13th major port.
Situated near the town of Dahanu, in the Palghar district of Maharashtra, the state will have its 3rd port and the country’s one of the six mega ports.

What is the Landlord Model of Port?

In this model, the publicly governed port authority acts as a regulatory body and as a landlord, while private companies carry out port operations—mainly cargo-handling activities.
Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install their own equipment to handle cargo.
In return, the landlord port gets a share of the revenue from the private entity.

Source: TH