Reports suggest that the cost of the proposed 330-metre container terminal berth project at Jawaharlal Nehru Port may exceed the original estimate of Rs 600 crore by Rs 300 crore.
The berth will have the capacity to handle eight lakh Twenty Foot Equivalent Unit (TEU) per annum, which could be augmented to one million TEU, with better equipment and deeper draught.
It is worth mentioning that DP World, the Dubai Government-owned port company, constituted Hindustan Ports to execute the project.
The company recently received approval from the Foreign Investment Promotion Board for an equity investment of Rs 440 crore for the project.
DP World, the lone bidder for the project, agreed to share 29.09 percent revenue with the landlord port. The concession agreement is expected to be signed by end of this month. The bidder hopes to complete the project in less than two years. This will be the second project of DP World at JN port.
The company already owns and operates a container terminal Nhava Sheva International Container Terminal (NSICT) at the port. DP World, reportedly looking at restructuring its operations in India, may bring all its local assets under one company Hindustan Ports.
The company owns four container terminals in India NSICT at JN port, Mundra in Gujarat, Chennai terminal and Vallarpadam Transhipment Terminal at Kochi.
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