MANAGING PORT REFORMS IN INDIA: Case Study of Jawaharlal Nehru Port Trust (JNPT) Mumbai

JNPT was established with the goal of creating a world-class port in India. Indeed, it clearly enjoyed an edge over other Indian ports with respect to both infrastructure and performance even in the pre-reforms period. However, it suffered from some of the inherent drawbacks ailing the Indian port sector that prevented it from achieving world standards in port efficiency. As the most modern among Indian ports, and also the one with the least labor problems, JNPT was the natural choice as a test case in privatization of port operations. This paper discusses the key reforms at JNPT, their formulation and implementation. It is clear that the reform process was well designed and optimally sequenced with active participation of a wide range of actors. The nittygritty of the reform process at JNPT was not imposed top-down. The reform has been a reasonable success. With the creation of a new private terminal and the follow-up measures undertaken thereafter, JNPT has demonstrated its capability to enhance efficiency of the public terminal through the introduction of intra-port competition and it has succeeded in earning the distinction of being the world’s 29 largest container port.