The Jawaharlal Nehru Port Trust (JNPT), in navi Mumbai, is in the process of expanding its capacity five fold in the next eight to 10 years, apart from its major projects such as setting up of a special economic zone (SEZ) in a public private partnership. The company is, in the process of floating a tender, seeking eligible partners for dredging of the Channel up to 14 metres at a cost of Rs 1,600 crore, in the next two years, according to a senior official from JNPT.
Speaking to reporters on the sidelines of JNPT’s agreement with Venice Port Authority to enhance direct shipping between the two ports, L Radhakrishnan, chairman said, “We would be increasing our capacity from around 4.5 million TEUs (Twenty Foot Equivalent Units) to 20 million TEUs in the next eight to 10 years in a phased manner.”
At present, it handles 55-60 per cent of the total container trade in India.
The trust expects development of a fourth container terminal with an estimated capacity of 4.8 million TEUs, at a cost of around Rs 8,000 crore, to be completed in the next three to four years. The company has awarded a contract to the Port of Singapore to develop the terminal. Smaller capacity addition projects for one million TEUs at a cost of around Rs 700 crore is also expected to come up in a couple of years.
The dredging of the channel up to 14 meters in the first phase, at a cost of around Rs 1,600 crore is also getting ready.
It is planning to finalise a partner through tender process to go ahead with the project, said Radhakrishnan.
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It is to be noted that according to earlier reports, the central government refused to approve a proposal from the trust to raise money through tax free bonds to fund the dredging project.
We have our investment mostly as land, of around 7,000 acre, he said when asked about funding of the projects. JNPT has a reserve of Rs 2,000 crore and most of its projects are on a revenue sharing model. For instance, for our project for fourth terminal with Port of Singapore, we have a 51 per cent revenue sharing, he said.
JNPT has plans on dredging of Channel further to 17 meters, which is in the planning stage, in two years at a cost of about Rs 3,500 crore.
It would also develop a SEZ in which the basic infrastructure would be developed by the port at a cost of Rs 240 crore and private sector participation of about Rs 3000 crore in two to three years. The fifth container terminal, which is under planning stage to set up at Nhava Island, to handle 8 million TEUs and other facilities including ship repairs is expected to complete in next four to five years, at a project cost of Rs 20,000 crore. Further, it would also develop a liquid cargo berth of capacity upto 18 MTPA at a cost of around Rs 2,000 crore, in three years.