JSW Infrastructure has signed an agreement to buy more than 50 per cent stake in PNP Maritime Services (PNP Port) from Shapoorji Pallonji group for Rs 270 crore.

The port was acquired via a subsidiary. It has a current capacity of 5 million tonnes per annum (MTPA) with potential to expand to 19 MTPA. The deal values PNP Port at around Rs 700 crore.

PNP Port operates multi-purpose jetties at Shahbaj, Raigad district of Maharashtra, about 20 nautical miles from Mumbai Anchorage. In FY23, it reported revenue of Rs 211.6 crore.

JSW Infrastructure is India’s second largest commercial port company and part of the $23 billion JSW Group. 

“This acquisition is part of JSW Infrastructure’s strategic direction to explore opportunities to expand organically and inorganically, to provide end to end logistics services near the cargo consumption, generation centres, ”the company said in a statement. 

PNP port is expected to strengthen JSW Infrastructure’s  position to provide hub and spoke model services to customers, thereby saving substantially in the logistics costs. 

It will allow the company  to service growing share of third party customers in India and derive synergies with its existing ports and terminals. It will be able to participate in the central government’s Maritime Vision to move cargo through Rail- Sea- Rail route and coastal cargo. 

JSW Infrastructure intends to upgrade the PNP Port facilities and expand its capacity while increasing the use of waterways and existing railway facilities at PNP to add synergies to the last mile connectivity.

In 1999, PNP Port entered into a 30 year licence agreement with Maharashtra Maritime Board (MMB) to engage in the business of developing, operating and managing cargo handling facilities at Dharamtar, for import and export of the cargo. In 2012, it also executed a deed of lease for development of multi-purpose jetty for an additional waterfront area of 1,000 metres.

The PNP Port is connected by rail and road to various industries in the hinterlands of Maharashtra, Madhya Pradesh and Karnataka. It has a very strategic locational advantage on the West Coast of India, having direct access to large cargo centres such as Mumbai, Pune, Mumbai, Palghar, Thane, Pune, Solapur, Bhiwandi and Nasik.