Inland Waterways Authority of India (IWAI) will soon allow private players to “operate and maintain” three of its multimodal logistics hub on National Waterways-1 (NW1) on revenue sharing basis, Moneycontrol has learnt.
“For multimodal terminals, at Varanasi (Uttar Pradesh), Sahibganj (Jharkhand) and Haldia (West Bengal), we are doing request for qualifications (RFQs) to engage private shipping and logistics operators for a period of 30 years on a royalty or revenue sharing basis,” Pravir Pandey, chairman, IWAI told Moneycontrol.
Logistics hubs act as “freight aggregation and distribution hubs” to enable long haul freight movement between hubs on large-size trucks, rail and waterways.
Pandey said that the tender process for the hubs at Varanasi and Sahibganj will be considered this year, while the tender for the hub at Haldia will be done in the next financial year.
“For Varanasi, we have started the procedure. The tender process has started and should be final by November… For Sahibganj, the tender process will start in October or November,” the chairman said, adding, “For Haldia, it would be later in May or June next year”.
According to sources, parties applying for O&M work at these hubs should have handled such work in the past for at least half a decade involving projects worth more than Rs 250 crore.
Development of these hubs is part of Jal Marg Vikas project (JMVP), approved by the cabinet in January 2018. The project, which is expected to be completed by 2023, aims at development of NW1 at the cost of about Rs 5,369.18 crore.
Pandey said that while the waterways will be developed and maintained by them, private players have shown interest in these hubs.
“As far as the waterways is concerned that is being maintained by us, through contractors, through the government budget. No private player will come and invest money in development and maintenance of waterways…They are interested in maintaining the terminals,” he said.
IWAI signed a contract with World Bank in February this year for financial and technical assistance. According to IWAI’s estimates, out of the total USD 800 million, USD 375 million would be given by WB, USD 380 million would be provided by the Centre from its own resources and the remaining fund of about USD 40 to 45 million would be routed through private sector.
IWAI had engaged KPMG “to study and devise a framework for operationalisation and maintenance of the assets being built on NW1”.
“This framework will include various institutional and operational models ranging from outsourcing to Special Purpose Vehicle (SPV) formulation with participating states and other authorities like railways and ports,” ministry of shipping said in a statement.
