SKIL predicting the privatisation of ports, in 1991, joined hands with the Government of Gujarat to promote and develop the Port of Pipavav. Pipavav Port, a modern all weather deep water port located between Mumbai and Kandla is the first Private Sector port in the country.

The Port of Pipavav is one of the principal gateways on the west coast of India and is located in the Saurashtra region of the state of Gujarat. Port of Pipavav is an all weather port and is protected by two islands, which act as a natural breakwater maximizing port safety.

In 2005, SKIL sold its holdings in Gujarat Pipavav Port Limited, the company through which the Port of Pipavav was developed and managed, to the Denmark based A.P. Møller Maersk Group.