Rail corridor delay may hit JNPT terminal project

With the dedicated freight corridor project of the Railways getting mired in procedural hiccups, the much-awaited fourth container terminal at the Jawaharlal Nehru Port Trust (JNPT), involving an investment of Rs 7,000 crore, may be completed much beyond the original schedule of 2009-10.

The progress of the two projects are inter-linked as the dedicated freight corridor is important for evacuating cargo at the fourth terminal.

The structure of the freight corridor project, which will connect Mumbai to Delhi at a much faster pace, is not yet finalised. "Going by current estimates, the dedicated freight corridor will be ready only by 2012," sources said.

JNPT, which handles over 58 per cent of India's container traffic, is already running in full capacity. Besides the state-run container terminal, the port has two terminals run by private players including Dubai Ports World and Maersk-Concor consortium.

A senior port official, however, said the terminal project was on track. "We have appointed UTI Bank as the advisor for financial structuring of the project," he added.

Over 40 major players, including domestic and international players, have submitted expressions of interest (EoI) for the terminal. Out of the total Rs 7,000 crore cost, the port will invest Rs 2,000 crore for dredging the shipping channel. The berth of the proposed terminal will be 2 km long, making it the largest container terminal in the country.

The Mukesh Ambani controlled Reliance Logistics and Anil Ambani's Reliance Energy have submitted EoIs for the project.

Meanwhile, the Rs 800 crore project of deepening the shipping channel has also hit a major roadblock as three international bidders have not yet secured security clearance from the government.

"Three overseas bidders are awaiting security clearance from the government. The port would be able to open the bid by March 20," officials said.

The shipping channel deepening project (otherwise capital dredging) was supposed to start by March this year.

"Dredging process will require at least 27 months after finalising the tender. With JNPT opening tender only by March 20, the project will be delayed further," sources said.

JNPT, in its board meeting scheduled tomorrow, will discuss a revised incentive proposal for its contract pilots to arrest mass exodus. JNPT, like any other port, is facing severe shortage of pilots, who assist a ship to enter a port.