Jawaharlal Nehru Port (JNP) has become the first major landlord port in India following the awarding of a private tender to expand Jawaharlal Nehru Port Container Terminal (JNPCT).
The tender was awarded to a joint venture (JV) between J M Baxi Ports and Logistics Ltd. and CMA Terminals.
In order to win the tender, the JV offered a royalty price of Rs. 4,520 ($570 million) per TEU during the concession period. The royalty due will increase yearly in line with the rise on the basis of the wholesale price index (WPI).
The minimum guaranteed cargo (MGC) expected to increase from 400,000 TEU in the first year of operation to 900,000 TEU starting in the 10th year and continuing through the end of the 30-year contract.
The Jawaharlal Nehru Port Container Terminal (JNPCT) has 2 berths with total length of 680 metres and 15 metres draft with backup area of 54.74 hectares.
Investment for JNPCT’s expansion project will be carried out by the JV at a total cost of Rs. 872 crores ($109 million).
The project will be implemented in two phases. In Phase I, the 400-metre berth length will be upgraded to handle 12,200 TEU capacity vessels.
JNPA has placed Letter of Award (LOA) to J M Baxi Ports and Logistics Ltd. and consortium member CMA Terminals on 28 June and the concession agreement will be signed on 27 July.
The period of Phase I is 18 months from the date of award of the concession agreement and the cost of Phase I is Rs. 591.99 crores ($74 million).
In Phase II, the 280-metre berth length will be upgraded to handle 12,200 TEU capacity vessels.
The development of Phase II will be commenced after achieving 1.02 million TEU – or seven years, whichever is earlier. Phase II is to be completed within a period of 18 months and will cost Rs. 280.17 crores ($35 million).
Through the upgrades, total handling of JNPCT will increase to 1.8 million TEU from the present handling capacity of 1.5 million TEU.
Union Minister of Ministry of Ports, Shipping and Waterways Shri Sarbananda Sonowal said: “As the Prime Minister Shri Narendra Modi has envisaged that PPP is grounded on the principle of inclusion of the private enterprises as able partners towards progress, this project will improve the utilisation in crane and berth productivity of the terminal.”
“This will reinforce JNPA’s position as the ‘Premier container port of India’,” Sonowal said.
In October last year Jawaharlal Nehru Port Trust (JNPT) recorded a 40.40 per cent surge in container traffic for the first half of the 2021-2022 financial year (FY2021-22).