The Indian Finance Ministry has approved a proposal by DP World to invest 4.4 billion rupees (about $82 million) in a new container terminal project at Jawaharlal Nehru Port (Nhava Sheva).
The project, on a 17-year concession, will extend the port’s container berth by 1,082 feet and provide a 42-acre container yard, offering an annual capacity of 800,000 20-foot-equivalent units.
Dubai-based DP World in November last year signed a contract with the port authority and set up a special purpose vehicle called Hindustan Port Pvt. Ltd. to implement the project. The company, which was the lone bidder for the build-operate-transfer facility, had offered a 28.09 percent share of revenue as annual royalty to the landlord port.
The entire project, which includes a 44-foot draft with four rail-mounted quay cranes and 12 rubber-tired gantry cranes, is projected to require a total investment of approximately $200 million.
To be located next to Nhava Sheva International Container Terminal, DP World India’s existing facility at the port, the new terminal is scheduled to start operations in 2015.
Jawaharlal Nehru, India’s largest box gateway, handled 4.25 million TEUs in 2012, with NSICT contributing 1.09 million TEUs.