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Optimizing ocean gateways: an empirical study of port privatization and its effects on the performance of the Indian major ports

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  • Pranjal Sudhir Ghate

    (University of British Columbia)

Abstract

This study provides an in-depth examination of the policy shift towards seaport privatization in India, evaluating its repercussions on key performance metrics over the past 25 years. Beginning in 1997, the government embarked on 32 public–private partnership (PPP) projects leading to the privatization of 55 berths across the nation’s major ports. Utilizing the cross-sectional berth-level data from 2020 and 2021, the study reveals a compelling pattern of decreased berth occupancy coupled with increased utilization. Later, using the panel port-level data, this research probes more directly into the operational and administrative performance indicators, encompassing Average Turnaround Time (Avg. TRT), Average Pre-Berthing Delay (Avg. PBD), Average Output per Berth Shift Day (Avg. OBSD), profits, and manpower. The paper utilizes regression analysis to study the above. The empirical findings suggest that each subsequent PPP project incrementally reduced Avg. TRT, Avg. PBD, and manpower, while simultaneously enhancing Avg. OBSD and overall profits. The research emphatically concludes that port privatization has been instrumental in bolstering operational efficiency, augmenting profitability, and promoting effective workforce optimization. These conclusions bear significant implications for economists and maritime researchers interested in understanding the impacts of shifts in ownership structures on performance.

Suggested Citation

  • Pranjal Sudhir Ghate, 2025. "Optimizing ocean gateways: an empirical study of port privatization and its effects on the performance of the Indian major ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 27(1), pages 1-19, March.
    • Handle: RePEc:pal:marecl:v:27:y:2025:i:1:d:10.1057_s41278-025-00311-w
    DOI: 10.1057/s41278-025-00311-w
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    References listed on IDEAS

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