Mumbai port will give out on license two dry docks --Hughes and Merriweather along within two wet berths to the private sector for 20 years. Tender documents are currently being prepared and will be made available to bidders within a month. The dry docks will be used for ship repairs.

The decision to privatise the dry dock is one in a series of privatisation projects being taken to improve productivity at the port. Earlier last month, the port invited bids for five container berths and two general cargo berths. Both got a good initial response with about 27 tender documents being sold. The bid deadline has been extended on the request of the bidders.

Currently Mumbai port earns Rs 4.5 crore from thedry docking facility. However, multiple agencies operate from here. While the port provides docking facilities for a fee, the shipping lines bring in their own ship repair agencies. As a result, value addition by the port itself has been extremely low. According to a port spokesperson, "The objective behind this privatisation is to improve efficiency. Finally, all operations can be coordinated by one agency, improving the bottomline of the facility." By licensing out the facility to private players, the port management hopes to get more through royalties than docking fees.

According to sources in shipping and stevedoring companies, the port will find buyers for the dry docks only if it resolves some of the issues connected to the privatisation of the other facilities (the container and general cargo terminal. These relate to use of port labour and antiquated docking rules. For instance, in the privatisation of the container and general cargo terminals, the port authorities have insisted that the existingport trust labour be used.

Since their productivity has been very low and manning scales too high, bidders have been seeking freedom to use their own labour. The port trust has categorically refused to allow this. If the same is made to hold for the dry docks, experts feel that MbPT will not get a good response to its proposal.