Karwar, Mangalore, Malpe berths up for privatization under Karnataka PPP plan

By Admin

27 Nov, 2025

The Karnataka government has taken a significant step toward modernising its coastal infrastructure by inviting bids to privatise four key cargo berths located at Karwar, Mangalore and Malpe ports. This strategic move brings major cargo-handling points under a Public-Private-Partnership (PPP) framework, aimed at boosting efficiency, attracting investment and enhancing the competitiveness of Karnataka’s maritime sector.

Key Berths Identified for Privatization

The tender includes four berths across the state’s coastline:

• Karwar
  
  

• Old Mangalore (City side)
  
  

• Old Mangalore (Bengre side)
  
  

• Malpe
  
  

These facilities will be awarded to private operators under a Renovate, Operate, Maintain and Transfer (ROMT) model, ensuring long-term operational upgrades while keeping ownership with the government.

Tenure and Selection Criteria

Following Cabinet approval on October 30, the state government issued tenders inviting private firms to bid for these assets. The winning bidder will be selected based on the highest royalty per ton of cargo handled.

• Old Mangalore and Malpe berths: 30-year concession
  
  

• Karwar berth: 15-year concession
  
  

This structure aims to provide clarity, stability and efficiency to both the state and private operators.

A Push Toward Modern Maritime Infrastructure

A senior state government official noted that the PPP model is designed to modernise port infrastructure, improve cargo-handling efficiency and provide a sustainable revenue stream for the Karnataka Maritime Board (KMB). The involvement of private players is expected to drive the adoption of advanced technology, optimise performance, and improve long-term reliability of operations.

Wider Economic and Sectoral Impact

The initiative is expected to generate multiple benefits for the region, including:

• Stronger coastal shipping activity
  
  

• Increased private investment
  
  

• Additional employment opportunities
  
  

• Growth in tourism and fisheries
  
  

• Better integration of coastal logistics with hinterland markets
  
  

With Karnataka's coastline emerging as a strategic stretch for maritime trade, these enhancements are likely to boost overall economic activity.

Bid Submission Timeline

Black Brix, the transaction advisor for the project, confirmed that bid documents are now available on the Karnataka Public Procurement Portal. Interested firms can submit their qualification documents until December 23.

Positive Market Sentiment Post Iron Ore Export Resumption

The state expects strong interest from private players, especially after the Supreme Court lifted the ban on iron ore exports through the Karnataka coastline in May 2022. The berths included in this tender fall under the Standard Operating Procedure for handling iron ore, increasing their commercial appeal.

Additionally, the Amdalli railway siding at Karwar, currently being developed by the Karnataka Maritime Board in collaboration with the Konkan Rail Corporation Ltd, is expected to significantly improve the cargo-handling potential and marketability of the Karwar berth.

Karnataka’s PPP Track Record and New Beginnings

Compared to other coastal states, Karnataka has had limited success with port PPPs. So far, the only notable achievement has been the 30-year concession awarded to JSW Infrastructure Ltd to develop and operate a port at Bhavikeri Keni in Ankola taluka. The port, estimated to cost ₹4,118.84 crore, will handle 30 million tonnes (mt) in phase one, scalable up to 56.5 mt based on demand.

With the new tender, Karnataka is now positioning itself for a more ambitious and competitive maritime future, hoping to attract leading private operators and unlock the full economic potential of its coastline.