It has been reliably learnt that ABC & Co is also in talks for the joint venture with other international players. ABC & Co too declined to comment. Earlier this year, the Mumbai port in an attempt to improve efficiency had floated tenders for the operations and management contract for two general cargo terminals (5 berths) and 5 container berths at Indira docks. In containers, MbPT has reserved for itself the right to continue operations at the other three berths, as also the right to build a new offshorecontainer terminal in line with the JICA recommendations.

The privatisation was driven by the fact that for the first time in several decades, the port handled lower volumes (in containers: 509,301 teus as against 601,289 teus in the previous year), and yet, JNPT right across the harbour notched up a 32 per cent increase in traffic in the face of stagnant trade volumes only on account of its superior efficiency norms.

When the tenders were first floated, there was an enthusiastic response, with several shipping and port management companies buying the tender documents. Experts had then attributed the fact that 41 per cent of the throughput of Mumbai port is destined for the city as a reason for the good response. Subsequently however, in pre-bid meeting bidders had expressed reservations about several issues. Among these was competition from the Mumbai port itself, the compulsion to use existing port labour and archaic rules regarding night navigation.

The Mumbai port chairman had clarified that whilesome of the issues could be looked into, competition from the port itself would have to be factored in by the bidders. In India, with several ports offering existing facilities to private players, the country has become one of the most important emerging markets for port contracts. Also as shipping lines have got into the business of managing ports, there is a tendency to favour their own ports, changing shipping logistics dramatically. Port Authorities therefore are being forced to diversify to protect their own long term interests.

If DPA does decided to bid for the privatisation of berths at Mumbai Port, it will become the second foreign public sector port authority after Port of Singapore Authority (PSA) to look for investment opportunities in India. PSA is already fairly well entrenched in the Indian market via the management contract at Tuticorin and its joint venture with Gujarat Pipavav.

It is also a shortlisted bidder for privatisation of Bharti docks at Chennai Port and a likley bidder forCochins Vallarpadam hub project. DPA, although much less of a global player than PSA, is reputed for running an extremely efficient facility at Jebel Ali. It has two port management contracts at Jeddah and Beirut. According to a press release issued by DPA, the contracts in the two countries are a part of their diversification plan for the next millennium.

The Southern Container Terminal in Jeddah, which is managed by a joint venture between the DPA and Saudi Maintenance Corporation is an important one for DPA as it is strategically located in the Red Sea, south of the Suez Canal. The terminal handled an estimated 1 million teus in 1998, higher than any Indian port. With good transhipment possibilities, the DPA is looking at the making Jeddah an important hub in the region.