JSW Infra enters container cargo biz; eyes 2 more terminals for Rs 1,400 cr

The company will invest Rs 300 crore in all at the New Mangalore Port Trust container terminal to create a capacity of 400,000 TEUs

JSW Infrastructure, a key bulk cargo operator, has stepped into the container cargo business by commissioning its first container terminal at New Mangalore Port Trust (NMPT) on Wednesday.

The company, which is among the country's top five port operators, will invest Rs 300 crore in total at the NMPT container terminal to create a capacity of close to 400,000 TEUs (twenty-foot equivalent units) by FY24, Arun Maheshwari, joint managing director and CEO, JSW Infrastructure, said. The company has a 30-year concession agreement with NMPT for the container terminal on Design, Build, Finance, Operate and Transfer (DBFOT) basis, he said.

Significantly, JSW Infra has set its sights on two upcoming concession agreements for container terminals at Jawaharlal Nehru Port Trust, Navi Mumbai and at Tuticorin Port, Tamil Nadu respectively. The company has set aside Rs 1,400 crore in terms of investment in the two terminal projects, whose concessions are due this month.

"We are evaluating these opportunities. If we can encash them, this will help us put our container terminal business on a firm footing," Maheshwari said. "It is part of our strategic roadmap to achieve 200 million tonnes per annum (MTPA) cargo capacity in India," he said.

The container cargo terminal at NMPT is expected to contribute five per cent in terms of total revenue to the company this financial year. Bulk cargo operations will make up 95 per cent of its total revenue.

In the next five years, however, JSW Infra hopes to take its revenue contribution from the container cargo business to 25 per cent of its total revenue, as growth prospects in the sector prompt the company to scout for investment and development opportunities across the country.

Besides JNPT and Tuticorin, JSW Infra may also bid for the container terminal at Vadhavan port in Maharashtra in the coming months.

NMPT, for the uninitiated, is an all-weather, lagoon type port situated at Panambur, Mangalore in Karnataka. Container traffic at NMPT has been growing at a compounded annual growth rate of 15 per cent since 2016 as compared to Indian container traffic growth of seven per cent.