WASHINGTON: Jawaharlal Nehru Port Trust’s (JNPT’s) Board has plans to invest a minimum of Rs 1,000 crore as part of its latest expansion plan, wherein it may either build a new port or buy an existing one on the western coast. Even under-construction ports are being considered for acquisition. Apart from that, the port authorities are also considering investment in ancillary facilities that will not only reduce cargo movement on land but also generate higher returns.
As per the plan, which is in the initial stages, JNPT wants to explore new investment opportunities on the western coast of India. “We need synergy for our existing port. The new port can preferably be in and around Maharashtra’s coastline” added a senior JNPT official. “Apart from a port, the investment option that is being explored includes containers, dry ports, or port-related infrastructure such as logistics hubs or ancillary facilities such as wind or solar assets for captive or grid connectivity,” read the proposal. A study will be conducted soon to explore the economic viability and prepare a business plan, revenue model, etc, of such an investment. Recently, the investment plan received a nod by JNPT Trustees. Moreover, handling of polluting cargo like coal will soon be discontinued at JNPT. Therefore, it will have to be shipped to some other port in order to keep coal-fired thermal power plants in Indian hinterland operational. “There could even be handling of coastal cargo, roll on-roll off service, etc. It will also help in reducing cargo movement in the hinterland or on roads and highways,” shared the official.
Depending upon the outcome of the study, if positive or if it is remunerative, the investment plan will be implemented in the years to come. The authorities are in the process to appoint a consulting firm to commission the study. At the moment, fourth container terminal is under development at JNPT at an estimated cost of Rs 7,915 crore on design-build-finance-operate-transfer basis. Its first phase worth Rs 4,719 crore is a 1,000-metre long quay with approach trestles was initially scheduled for December 2017 completion, but it has now been revised to January 2021. “Our container handling capacity will double with this fourth terminal,” said the source. Meanwhile, JNPT’s plan to have all-weather Wadhwan port at Dahanu near Mumbai is already in the pipeline. With an estimated investment of Rs 10,000 crore, around 5,000 acre of land will be reclaimed to serve as a satellite port. Despite these two projects being planned, JNPT officials are still keen on future development to match up with Ministry of Shipping’s grand Sagarmala project to give a fillip to shipping industry. Sagarmala project aims at having port-led development to contribute to India’s overall economic growth.
