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JNPT plans ship repair facility at Nhava

Jawaharlal Nehru Port Trust plans to build a mega terminal at Nhava Sheva that would raise its capacity by 8-10 million twenty-foot equivalent units.

Updated: Jul 25, 2011, 03.39 AM IST
Jawaharlal Nehru Port Trust, India’s largest container port, plans to build a mega terminal at Nhava Sheva that would raise its capacity by 8-10 million twenty-foot equivalent units, or TEUs, as it rushes to meet competition from private players that are growing at a much faster rate.

JNPT also plans to build a ship repair facility at the port and is looking to acquire a property near Raigad from a public sector company to build a special economic zone (SEZ).

The port trust, which currently has a capacity of 4.27 million TEUs, will add another 4.8 million TEUs once its proposed fourth terminal is constructed. The .`6,700-crore contract for this fourth terminal has been bagged by a consortium led by ABG Infra and PSA. For the mega terminal, JNPT is looking to acquire land from City and Industrial Development Corporation of Maharashtra and the state government.

“We are awaiting clearance to buy the land at Nhava as part of our long-term view to increase the capacity at the port. While there are certain land constraints at the port, the additional land should help us take our total capacity to 20 million TEUs. We intend to develop the area at Nhava as a mega container terminal and have initiated a detailed study. Once the land acquisition is completed, we will invite bids for developing the terminal,” said JNPT chairman Luxman Radhakrishnan.

“Being strategically located along the west coast, JNPT is expected to attract a major chunk of the northern hinterland traffic. Currently, the port handles more than 60% of India’s container traffic. A mega terminal will help JNPT attract higher traffic,” said Anand Sharma, a director at Mantrana Maritime Advisory.

The port trust is also awaiting clearance from the Defence Ministry to go ahead with its proposed free-trade and warehousing zone (FTWZ). “We are currently awaiting clearance from the ministries of defence and home to go ahead with the FTWZ that we are proposing within the port. The .`3,500-crore FTWZ will be built on more than 276 hectares to help us generate huge revenues once completed.

In addition, we have identified a property owned by a public sector company and we will look to partner it in developing an SEZ. While the PSU will provide us the land, we will develop all the facility,” said Mr Radhakrishnan.

JNPT, which currently functions as a trust, had been plagued by protests from unions against the proposal to corporatise the port. “The biggest advantage that we hold once we corporatise is that we will be able to leverage on our existing assets. No firm can progress if it cannot leverage on its assets to raise more money. For an entity making more than .`787 crore as profit, we cannot be dependent on the government for all our decisions,” said Mr Radhakrishnan.

There are three terminals at JNPT that are operated one each by Dubai-based DP World, Denmarkbased APM Terminals and JNPT.
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