JNPT to take a huge leap forward – massive $ 2.8 b expansion plans to get underway

Monday, 28 May 2012 00:00 - - {{hitsCtrl.values.hits}}

India’s biggest port, JN Port, which handles India’s 55% container traffic (4.32 million TEU) is set for mega expansion valued at $ 2.8 billion.

The Chairman of the port, L. Radhakrishnan, announced that the expansion would be to the tune of 5 times its present capacity thus raising it to 20 million TEUs by the end of the decade. This was necessary to have 30-40 per cent more capacity than demand.

Giving details of the projects Radhakrishnan stated, “$ 2.8 billion comprised of fourth Container Terminal: $ 1.6 billion; Dredging Phase-I: $ 314.2 million, 330 M Berth: $ 150 million, modernisation of JNP-CT and Shallow Water Berth (SWB) $ 80 million and SEZ Phase-I: $ 600 million. The execution of these projects would take place this year itself and implementation of projects valued at $ 9 billion would take place by 2020.”

With regard projects on the anvil under detailed project design are 5th Container Terminal: $ 5 billion; Multipurpose Terminal: $ 1 billion, Dredging Phase-II: $ 1 billion and SEZ Phase-II: Above $ 2 billion.

JNPT has always been in the forefront of container operations in the country and has displayed rapid progress. It hit new records in 2011- 12 in respect of all performance criteria. The net profit before income tax was a record $ 178.4 million ($ 21.2 million more than the previous highest in 2010 - 11). The total freight handled: 65.73 million tons, containers handled: 4.32 million TEUs, were all new records. The qualitative performance criteria had also improved. The throughput of JNP Container Terminal operated by the Port’s employees exceeded one million TEUs, while its original installed capacity was only 0.87 million TEUs p.a. “The first phase of the dredging of the approach channels is set to get underway this year for raising the draft from the present 11 meters to 14 meters,” said Radhkrishnan. “In the second phase the draft will further be raised to 17 meters. We have taken on board Tata Consulting Engineers and Ernst & Young to advise us on the second phase dredging which will sufficiently widen the channel and deepen it to 17 meters. This will be undertaken under global bidding process. This will allow bigger vessels to enter JN port directly and not have to offload containers destined for India at Colombo, Singapore or other ports.

“The next will be the mega project for raising the capacity of the port from 10 million TEUs by another 10 million. For this two different parties will be appointed each for setting up facility for handling 5 million TEUs. The estimated cost could be around $ 4 billion to $ 6 billion and will have a quay length of four km.

He informed also about another project being planned on the Southern side of the port where there is limited scope to dredge more than 10 meters. The plan is to diversify JNP into a multipurpose facility that would also handle bulk, break-bulk, coastal cargo, coal and chemicals, among others, through the development of a new quay and other facilities of 50 million tonnes capacity.

The development of a Port-based SEZ of 2,750 acres (1st phase 700 acres) is also under way.