India: Bright Future for Jawaharlal Nehru Port
- Business & Finance
The Jawaharlal Nehru Port Trust (JNPT), Mumbai and Nhava Sheva (India) Gateway Terminal Pvt. Ltd. (a subsidiary of M/s DP World), signed a concession agreement for development of standalone container handling facility at the Jawaharlal Nehru port.
Shri G. K. Vasan, Union Minister for Shipping and Sultan Ahmed Bin Sulayem, Chairman, M/s DP World were present on the occasion. Under the agreement, a terminal with the quay length of 330 metres will be developed by the concessionaire at an estimated cost of Rs. 600 Crores. The estimated capacity addition will be 0.8 Million TEUs per annum. The project is slated to be completed by December 2015. The project would be executed on DBFOT (Design, Built, Finance Operate and Transfer) basis, with a concession period of approximately 17 years.
The Jawaharlal Nehru Port Trust floated a global tender and DP World was the successful bidder for the project, with their offer of 28.9% revenue share to the port. M/s DP World has formed a special purpose vehicle (SPV) namely Nhava Sheva (India) Gateway Terminal Pvt. Ltd. to implement this project. The agreement was signed on behalf of JNPT by Chairman Shri N.N. Kumar and on behalf of Nhava Sheva (India) Gateway Terminal Pvt. Ltd by Shri Anil Singh, Senior Vice President & MD of DP World (Subcontinent).
Speaking on the occasion, Union Minister for Shipping Shri G.K. Vasan said that the achievement of the Ministry was outstanding during 2012-13, in terms of awarding capacity augmentation projects at major ports. The Ministry has awarded 32 Projects in 2012-13 which will add a capacity of 137 MMTPA (Million Metric Tonne Per Annum) at an estimated investment of Rs. 6765 crore.
This is the best performance for any year in the history. JN Port is the biggest container handling Port in India, handling around 44% of the country’s containerized cargo, first crossing the historic landmark of 4 million TEUs in container throughput in the year 2007-08. The port is currently ranked 26th among the top 100 Container Ports in the world.
Press Release, June 24, 2013