JSW Infrastructure will invest ₹152 crore at Mangalore Container Terminal as part of phase-II container capacity expansion.
The port owned by New Mangalore Port Trust, has an installed capacity of 4.2 million tonnes per annum (mtpa), including 239,148 TEU and 0.64 MTPA for bulk cargo. The container terminal has a backup area of 65,000 square meters for the storage of containers. Equipment at the container terminal includes six reach stackers, one empty container handler, and two mobile harbour cranes.
JSW Infrastructure will make the investment through its subsidiary, JSW Mangalore Container Terminal, from the proceeds of the proposed IPO.
When contacted, JSW Group’s official spokesperson declined to comment.
The Ministry of Ports Shipping and Waterways in a recent tweet said the upgraded container terminal at NMPT will aid shipping companies to take their exports to global markets in the fastest and most efficient manner.
The concession agreement signed by NMPT grants JSW Infrastructure an exclusive license for designing, engineering, financing, constructing, equipping, operating, maintaining, and replacing the project facilities for 30 years.
Pursuant to the concession agreement signed in January 2020, JSW Infrastructure’s subsidiary MCTPL is responsible for providing equipment for handling containers and other cargoes on DBFOT (Design, Build, Finance, Operate, and Transfer) basis.
The concession agreement JSW Infra to expand the capacity to 6.02 MTPA, allowing the company with an expansion opportunity for an additional capacity of up to 119,574 TEU.
The construction for the second phase of the concession agreement is expected to commence by September.
JSW Infrastructure commissioned the NMPT container terminal in early 2022. The container terminal at NMPT helps the company to diversify into the container cargo business as part of its strategic roadmap. This container terminal helps JSW Infrastructure to achieve an optimal cargo mix as part of its strategy to steadily increase the share of third-party cargo business.
According to a CRISIL report, in FY24, container traffic is expected to grow at 5-8 per cent between FY23 and FY28.
In the medium term, low container traffic per capita in India and containerisation’s inherent benefits like cost-effectiveness would act as key levers for driving growth in container traffic. Non-major ports are expected to add 100-130 million tonnes of capacity between FY’23 and FY’27. The container segment is expected to dominate in terms of tonnage.