JNPA now becomes 100% landlord port
A consortium of JM Baxi Ports and logistics along with CMA Terminals recently won the contract for the expansion of JNPCT.
Currently there are five container terminals that operate at JNPA, of which only one is port owned i.e. JNPCT. As per the port authority JNPCT received overwhelming response from 11 investors having both domestic and international presence. However, to win the tender, the equal joint venture between J M Baxi Ports and Logistics Ltd. and CMA Terminals offered a substantial royalty price of Rs. 4,520 per TEU for the concession period.As per JNPA the royalty due will increase yearly in line with the rise on the basis of the wholesale price index (WPI). Under the new Major Port Authorities Act and the model concession agreement (MCA), the terminal operator is free to fix market determined tariff rates. The MGC expected to increase from 4 lakh TEUs in the first year of operation to 9 lakh TEUs starting in the tenth year and continuing through the end of the 30-year contract.
The concession will be Awarded after compliance to the conditions within 180 days. The period of phase I is 18 months from the date of award of concession agreement and the cost of phase I is Rs. 591.99 crores.The Jawaharlal Nehru Port Container Terminal (JNPCT) has 2 berths with a total length of 680m and 15m draft which will be handed over under this PPP contract along with a backup area of 54.74 hectares for 30 years. JNPCT is presently handling 9000 TEUs capacity vessels and with the upgrade it can handle 12200 TEUs capacity vessels.
- JM Baxi Consortium offers royalty price of Rs. 4,520 per TEU
- Total Investment Rs. 872 crores
- From 9000 TEUs capacity vessels to 12200 TEUs capacity vessels
It is also proposed to increase the RMQC rail span from 20 meters to 30.5 meters at the port. Investment for this project will be carried out by the concessionaire at a total cost of Rs. 872 crores.