Dubai-based operator to sign concessional agreement for JNPT’s new 800,000 TEU capacity terminal on Wednesday
DP World are expected to sign a concession for its second box facility at Jawaharlal Nehru Port on Wednesday.
“These issues have been resolved. We will be signing the agreement on June 19th in New Delhi,” a senior official at DP World told the Hindu Business Line.
The world’s third largest terminal operator was awarded the project after agreeing a 28.09 percent revenue share with Jawaharlal Nehru Port Trust (JNPT) in October 2012. However, the signing of the concessional agreement, which was scheduled to be signed 30 days after the signing of the letter of intent for the project, has been delayed due to both environmental concerns and the decision by DP World to restructure its Indian operations as a separate holding company, Nhava Sheva (India) Gateway Terminal.
“We will able to build at least the berth in 12 months once we start the construction, which is expected to commence after the monsoon,” said the DP World official.
Once constructed, the new terminal at a cost of Rs 1,000 crore will add 800,000 TEU of container capacity to the port. The terminal is expected to commence operations in 2015.
Dubai-based port operator DP World, currently the largest terminal operator in India, is responsible for the handling of more than 40 percent of the country’s containerised trade through its five indian terminals.