According to estimates released by the Mumbai Port Trust, in 1999-2000, the port expects to handle 480,000 teus with 6.63 million tonnes. This is a decline from the previous year. Operating income is expected to be Rs 620 crore, a fall over the previous years on account of declining cargo traffic over the last two year.

Among the capital investment being undertaken in the current fiscal is Rs 259.9 crore on port-related expenses including equipment. Of this Rs 175 core will be spent on replacement of submarine pipelines and loading arm, Rs 18 crore on tugs and Rs 3.8 crore on lockgates for Indira docks.

Mumbai port will also be accessing a $97.5 million direct loan sanctioned by the ADB to be used for replacement of the submarine pipeline. The replacement of the common user pipeline is expected to cost another Rs 70 crore. The ADB loan will also be used to fund the modernisation of some berths, expected to cost Rs 167 crore. The disbursement for the current year is expected to be Rs 112 crore.

The falling traffic at Mumbai port and the need for modernisation has forced port authorities to offer container and some general cargo berths to the private sector. While these had a good response initially, competition from the Mumbai port itself detered bidders. According to a spokesperson of the port, authorities have replied to some clarifications demanded by the bidders and the technical and financial evaluation of the bids is underway. The board is expected to take a decision at its meeting in the first week of October.

While the privatisation is expected to lead to modernisation and better volumes in future, sources at Mumbai port do not expect any significant improvement in volumes in the next two year, "In the short term atleast, the port will see a decline in cargo," says a highly placed source.