The Inland Waterways Authority of India (IWAI) plans to augment cargo exports from two key ports in Assam, namely Dhubri and Pandu, fostering trade connections with Bangladesh and other South Asian nations, with a targeted annual export capacity of 3 million metric tonne within next two years.

To realise this objective, the IWAI has forged a strategic Public Private Partnership (PPP) model by collaborating with a private Operations and Management (O&M) contractor.

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This collaboration is anticipated to streamline operations, augment cargo throughput, and enhance the efficiency of both Pandu and Dhubri ports.

“IWAI is committed to offering guidance and support to facilitate the successful attainment of the 3 million MT cargo export target within the initial two years,” a statement said.

Under this framework, the responsibility for operating and managing the Pandu and Dhubri terminals, which remain firmly under the jurisdiction of IWAI and the Government of India, has been delegated to a private operator.

The primary objective is to elevate the efficiency of these terminals and facilitate the smooth flow of cargo along National Waterway-2 and the Indo-Bangladesh Protocol (IBP) routes, the statement added.

This strategic approach has previously yielded favorable results in other ports, such as GR Jetty in Kolkata and the Haldia terminal, culminating in improved port performance and unlocking the trade potential within the region.

A Selvakumar, Regional Director (Pandu) at the Inland Waterways Authority of India, said that Pandu and Dhubri ports have not been subjected to privatisation.

Instead, a specialized contractor has been enlisted to oversee and manage cargo operations at these ports. The selection of this contractor was executed through a competitive nationwide bidding process, following an exhaustive study and consultations with stakeholders and local operators.

The PPP model is poised to introduce global best practices, paving the way for substantial enhancements in trade opportunities at Pandu and Dhubri ports.

Tariffs for cargo loading and unloading, along with the incorporation of advanced mechanical handling equipment to bolster efficiency, have been meticulously established in consultation with stakeholders. This approach is designed to establish a transparent and proficient logistics system.

Importantly, in the event that the private operator falls short of meeting the Minimum Cumulative Riverine Cargo Volume (MCRCV) requirements, they will incur financial penalties, and the duration of their contract will be subject to reduction.