In 1992, on Sea King Infrastructure Ltd's initiatives in the development of ports a Memorandum of Understanding was signed with the Gujarat Maritime Board, Government of Gujarat, to form Gujarat Pipavav Port Ltd (GPPL). The Port of Pipavav was developed as the first private port in India with world-class facilities, like mechanized cargo handling and day-and-night navigation systems. It came into being as a deep-draught all weather port in the Amreli district of Gujarat, India.
	To create a Special Purpose Vehicle (SPV), Pipavav Railway Corporation limited (PRCL) was set up in May 2000 under Companies Act, 1956, as a Joint Venture Company with Indian Railways and Gujarat Pipavav Port limited (GPPL) under a Shareholder's Agreement having 50% equity participation of each party. PRCL is the unique example of Public-Private Participation (PPP) in the development of infrastructure.
	The SPV was assigned the task of conversion of meter gauge line between Surendranagar and Rajula City to broad gauge and its further extension to Pipavav Port. The company is also entrusted the task of managing all operations and commercial functions in connection with the carriage of freight traffic on the 270 km PIPAVAV RAILWAY connecting port of Pipavav.
	Having special approval of the Cabinet Committee on Economic Affairs to undertake construction, operation & maintenance of the broad gauge railway system, PRCL is entitled to the rights, obligations and duties of a Railway Administration.