February 12, 2024 [News on Projects]- JSW Infrastructure Ltd, spearheaded by Sajjan Jindal, has secured the highest bid for equipping, operating, and maintaining the new liquid cargo berths 3 and 4 at Jawaharlal Nehru Port near Mumbai for a duration of 30 years. The company presented the highest royalty bid of Rs. 252 per ton in the tender process.
Unmesh Wagh, Deputy Chairman and Chairman In-charge of J N Port Authority, confirmed the news, highlighting the significance of JSW Infrastructure’s bid in augmenting the port’s revenue and alleviating congestion in handling liquid cargo.
JSW Infrastructure outpaced six other contenders by a considerable margin to clinch the top spot. The second-highest bid came from IMC Ltd, which quoted Rs. 155 per ton. Bharat Petroleum Corporation Ltd (BPCL), a state-owned oil refining and marketing firm, offered Rs. 108.01 per ton as royalty, currently overseeing the operations of liquid cargo berths 1 and 2 at J N Port.
JSW Infrastructure’s aggressive pricing strategy in the liquid terminal bid has surprised industry observers, considering its previous conservative approach in port bids.
The news of JSW Infrastructure’s bid has stirred anticipation within the port industry, with officials noting that the company’s quoted royalty significantly surpasses initial expectations. While the port authority had anticipated bids within the range of Rs. 50-75 per ton or a maximum of Rs. 80-90 per ton, JSW Infrastructure’s bid of Rs. 252 per ton sets a new benchmark.
The bid approval process is pending a special board meeting by the J N Port Authority, scheduled to convene in the coming days.
Securing this deal will bolster JSW Infrastructure’s position as one of India’s leading private port operators, facilitating expansion into new customer segments and enhancing revenue diversification. With a current capacity of handling approximately 170 million tonnes of cargo across its network of ports and terminals along India’s coastline, JSW Infrastructure aims to further bolster its capabilities through synergistic businesses such as container terminals, liquid storage terminals, and multi-modal logistics parks.
The additional liquid cargo berths at Jawaharlal Nehru Port are poised to address the burgeoning demand for petroleum, oil, and lubricants (POL), edible oil, chemicals, and other liquid bulk commodities. Designed to accommodate vessels carrying up to 90,000 tons of liquid cargo with a draft of 15 meters, these berths will alleviate pressure on existing facilities and cater to the port’s growing needs.
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