Thursday, June 20, 2013

JNPT signs Concession Agreement with Nhava Sheva (India) Gateway Terminal for container facility

Source:http://www.sagarsandesh.com/news/jnpt-signs-concession-agreement-with-nhava-sheva-india-gateway-terminal-for-container-facility/

The Jawaharlal Nehru Port Trust (JNPT), Mumbai and Nhava Sheva (India) Gateway Terminal Pvt. Ltd. (a subsidiary of M/s DP World), signed a concession agreement on June 19 for development of standalone container handling facility at the Jawaharlal Nehru Port.

Mr G. K. Vasan, Union Minister for Shipping and Sultan Ahmed Bin Sulayem, Chairman, M/s DP World were present on the occasion.

Under the agreement, a terminal with the quay length of 330 metres will be developed by the concessionaire at an estimated cost of Rs. 600 crores.

The estimated capacity addition will be 0.8 Million TEUs per annum. The project is slated to be completed by December 2015.

While addressing the elite gathering, Mr Vasan said, “I complement the management of JNPT for taking the lead in achieving this feat, I also urge the other ports to develop systems conforming to international standards in respect of infrastructure development through PPP as a part of Maritime Agenda.

According to JNPT official sources, the project would be executed on DBFOT (Design, Built, Finance Operate and Transfer) basis, with a concession period of approximately 17 years.

The Jawaharlal Nehru Port Trust floated a global tender and DP World was the successful bidder for the project, with their offer of 28.9 percent revenue share to the port. M/s DP World has formed a special purpose vehicle (SPV) namely Nhava Sheva (India) Gateway Terminal Pvt. Ltd. to implement the project.

The agreement was signed on behalf of JNPT by Chairman Mr N.N. Kumar and on behalf of Nhava Sheva (India) Gateway Terminal Pvt. Ltd by Mr Anil Singh, Senior Vice President & MD of DP World (Subcontinent).

Patting DP World for being the main player in Indian port sector, Union Minister for Shipping Mr Vasan said, “I am happy that the Chairman of DP World is here with us on this historic occasion. Having started their operations in India in 1999 with the container terminal at JNPT, they have expanded their presence to Chennai, Mundra, Visakhapatnam, and Cochin.”

The Minister also used the opportunity to invite DP World to participate in development projects taken up across various ports in India.

Congratulating the JNP for being a harbinger of growing container-handling ports in the country, Mr Vasan said, “Having set for itself a long term goal of achieving 10 million TEUs by the year 2018-19, JNP throws open an array of worthwhile opportunities for Shipping Lines and Shippers to ferry their cargo to various sectors across the globe.”

With its strong commitment to provide seamless service to its customers as India’s prime facilitator of international trade, JNP strives to be the undisputed leader in the South Asian region in years to come, the Minister added.

JN Port is the biggest container handling Port in India, handling around 44 percent of the country`s containerized cargo, first crossing the historic landmark of 4 million TEUs in container throughput in the year 2007-08. The port is currently ranked 26th among the top 100 Container Ports in the world.

Besides others, Secretary (Shipping), Mr. P.K. Sinha, Additional Secretary & Financial Adviser, Dr. (Mrs.) T. Kumar, Joint Secretaries, Mr. N. Muruganandam and Mr. M.C. Jauhari, Senior Vice-President and MD, DP World, Mr. Anil Singh and Chief Operating Officer, Mr. Anil Vats attended the signing ceremony.

The new 330-metre berth with 27 hectares of yard will add 800,000 TEUs (twenty foot equivalent container units) of container capacity and help ease congestion at Jawaharlal Nehru Port. DP World will invest around US$200 million to build the terminal, which is expected to commence operations in 2015. The new terminal is adjacent to the Nhava Sheva International Container Terminal (NSICT), which DP World currently operates.

Commenting on the development, Sultan Ahmed Bin Sulayem, Chairman, DP World, said: “We thank the Government of India and the Jawaharlal Nehru Port Trust for their confidence in our ability to support the growth of India’s vibrant economy through the construction and operation of new state-of-the-art, modern infrastructure in the country’s busiest port.

With a 17-year concession period, we are investing for the long term and we look forward to continuing to work with Jawaharlal Nehru Port Trust into the future, the Sultan added.

Mr. Anil Singh, Senior Vice President and Managing Director, DP World Subcontinent, stated: “We have worked closely with Jawaharlal Nehru Port Trust over the years. We were the port’s first private partner in 1997 with NSICT, and together with the port we have played a key role in serving India’s growing trade for more than a decade.”

“I take this opportunity to thank the Jawaharlal Nehru Port Trust for its continued support over the years, and also for giving us the opportunity to partner with the port once again to provide world class facilities for India’s trade,” he added.

The new container terminal will be equipped with four modern rail-mounted quay cranes and 12 rubber-tyred gantry (RTG) cranes.

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