Global terminal operator DP World has been selected to build and operate a new container terminal at the Port of Jawaharlal Nehru (Nhava Sheva), India.
The port authority finalized the 17-year concession deal after the Dubai-based company agreed to hike its revenue share offer by 1 percent to 28.09 percent, port sources said.
DP World India, which operates the first private container facility at Nehru, was the lone bidder for the build-operate-transfer project covering an extension of the port-owned container berth by 1,082 feet.
To be located next to Nhava Sheva International Container Terminal, the private operator’s existing facility at the port, the new terminal will have capacity for 800,000 20-foot-equivalent units.
The entire project, which will include a 44-foot draft and about 42 acres of yard space with four rail-mounted quay cranes and 12 rubber-tired gantry cranes, is projected to require an investment of approximately $200 million. The new facility is expected to be operational in 2015.
“Timely capacity on the west coast of India is critical to the country’s economic growth. JNPT is India’s largest trade gateway and additional port capacity will ease congestion concerns of the shipping community,” said Anil Singh, senior vice president and managing director of DP World Subcontinent.
The project was originally scheduled for completion in 2011, but the process hit a roadblock following cancelation of Nehru’s initial tender in late 2009 when two bidders, including DP World, made the shortlist.
Nehru moves nearly 60 percent of India’s total containerized export and import cargo. Volume through the port's three terminals, including APM Terminals, hit an all-time high of 4.32 million TEUs in fiscal 2011-12, which ended March 31.