Gujarat Maritime Board - Innovative Policies to Promote Trade through Ports

Case Study of the Day: Gujarat Maritime Board – Innovative Policies to Promote Trade through Ports

The Gujarat Maritime Board (GMB) is a statutory body of the Government of Gujarat that is responsible for the development and management of non-major ports in the state.

Table of Contents

Introduction

The Gujarat Maritime Board (GMB) is a statutory body of the Government of Gujarat that is responsible for the development and management of non-major ports in the state. The GMB has been a pioneer in the development of innovative policies to promote trade through ports.

In 1996, the GMB privatized the stevedoring services at all its ports. This was a major step towards improving the efficiency of the ports and reducing costs. The GMB has also privatized other port services, such as cargo handling, toll collection, and dredging.

Another important policy of the GMB is the development of integrated port-led development (IPLD) zones. IPLD zones are areas that are developed around ports to attract investment and create jobs. The GMB has developed several IPLD zones, such as the Mundra Special Economic Zone and the Dahej Port Industrial Area.

Intervention

Private companies were allowed to operate their own jetties in GMB ports in 1987. In 1995, PPP in ports was allowed. In 1997, BOOT policy was introduced to provide operational -flexibility with tariff freedom and low water-front royalty. SEZ Act was launched in 2004.
The Ship Building Policy was introduced in 2010 to allow private companies to develop ship building parks. To promote coastal shipping and trans-shipment, concessions to the extent of 20% (for outside Gujarat coastal traffic) to 25% (for Gujarat coastal traffic) in port related charges is being provided.
LNG Terminal Policy, 2012 facilitates setting up of new Greenfield LNG Terminals and Floating Storage Regasification Units.

Impact

The Sagarkheru Sarvangi Vikas Yojana has contributed substantially in the development of coastal regions in the state with its work on recharge tanks, spreading channels, anti-sea erosion work, etc.
The GMB percentage share in national traffic is growing steadily over the years and stood at 32% in 2013-14. GMB’s percentage share in total non-major ports traffic is around 80%. Gujarat has the highest number of operational and commercial cargo ports.

The GMB’s policies have been praised by industry experts and have been cited as a model for other states to follow. The GMB is a leading example of how innovative policies can be used to promote economic development.