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With the growth in container handling at New Mangalore Port (NMP) in Mangaluru over the past few years, stakeholders are now focusing on strengthening other infrastructure in the region.
After JSW Infrastructure operationalised a mechanised container terminal at NMP in April 2022, it handled 1.65 lakh TEUs of containers in 2022-23 (as against 1.52 lakh TEUs in 2021-22). During the first quarter of 2023-24, the port handled 47,036 TEUs (37,581 TEUs in Q1 of 2022-23), recording a growth of 25.15 per cent.
The development of infrastructure such as container freight stations (CFS) plays an important role in a logistic ecosystem that is centred on containers. Apart from enhancing container handling capabilities at the port, CFS also benefits the supply chain.
At least two CFSs, including one in the private sector, are being planned in Mangaluru.
In June, the Central Board of Indirect Taxes and Customs (CBIC) issued a letter of intent to Mangaluru-based Delta Infralogistics (Worldwide) Ltd to set up a CFS in Mangaluru within a year.
Cargo consolidation
The New Mangalore Port Authority (NMPA), too, has signed a memorandum of understanding with the Central Warehousing Corporation (CWC) and Sagarmala Development Company Ltd (SDCL) to develop a CFS-cum-warehousing facility at NMP through a special purpose vehicle.
Ahmed Mohiuddin, Managing Director of Delta Infralogistics, told BusinessLine that the CFS will start operations within a year in an area less than a kilometre from NMP.
He said Delta’s CFS aims to provide services to trade in interior Karnataka, including consolidation of LCL (less than container load) cargo. The CFS will provide ancillary support to JSW’s dedicated container terminal at NMP while also decongesting the port and terminal.
It will target industrial hubs in Peenya, Nanjangud, Mysuru, Mandya, Shivamogga, Belagavi, Hubballi-Dharwad, and parts of Kerala for cargo such as automotive components, agriculture products, pharmaceutical products, and reefer cargo, among others.
Delta will forge tie-ups with mainline container lines for better access to the trade in general, he said.
Agro export
Meanwhile, NMPA’s joint venture CFS will be developed on 16.6 acres at an estimated cost of ₹125.42 crore. AV Ramana, Chairman of NMPA, said the port authority’s contribution would be the cost of the land (around ₹44.25 crore). The rest would be shared equally by CWC and SDCL.
Expecting a significant improvement in LCL cargo handling in future, he said the proposed infrastructure will boost the export of agro products such as gherkhin, vegetables, and coffee through NMP.
Nagaraja Shetty, Managing Partner of Ganesh Shipping Agency, suggested that the CFS-cum-warehouse should have facilities to handle both agro-based and general cargoes.
Global supply chain
Welcoming the move by NMPA and Delta to set up CFSs in Mangaluru, Shekar Pujari, President of NMP Stevedores’ Association, said the infrastructure addition will boost the exim trade in the region. NMP can expect significant improvement in container cargo once the CFSs are built, he said.
Praveen Kalbavi, Chairman of CII-Mangaluru, said the proposed infrastructure will help global supply chains, especially from Mangaluru. Such infrastructure will help local industries do much more, he said.
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