The Karnataka Maritime Board has executed a concession agreement with AHPL SPM Logistic Solutions Pvt Ltd for operation of a cargo berth at Karwar Port under a public-private partnership model, marking one of the highest royalty rates achieved in a port PPP project in the country.
What are the key terms of the Karwar Port concession?
The agreement, structured on a Rehabilitate, Operate, Maintain and Transfer basis, will run for a 15-year concession period. The winning bid secured a royalty of Rs 212 per tonne of cargo handled, with the concessionaire required to provide a Minimum Guaranteed Annual Royalty of Rs 26.5 crore to the Karnataka Maritime Board, ensuring a steady revenue stream for the state.
Who advised on the transaction?
The concession process was structured and facilitated by transaction advisor Black Brix, which helped design the bidding framework that delivered what the company described as among the strongest royalty outcomes recorded for a port PPP project nationally.
What is driving demand for Karnataka’s port PPP projects?
Bidding interest surged following the Supreme Court’s approval to resume coastal iron ore exports, boosting investor confidence in Karnataka’s non-major port infrastructure. Alongside the Karwar award, the Karnataka Maritime Board has concurrently awarded cargo berth contracts at Mangalore ports to Chowgule EPC and Hasan Hajee & Co, reflecting a broader push to modernise the state’s port infrastructure and increase revenue.
What does this mean for Karnataka’s port privatisation push?
The Karwar Port award adds to a wider series of PPP concessions being finalised across Karnataka’s non-major ports, as the state accelerates efforts to attract private investment, upgrade cargo handling infrastructure and strengthen its coastal maritime economy in line with its broader logistics and port development goals.
