JSW Infrastructure has received a Letter of Award from the Syama Prasad Mookerjee Port Authority, Kolkata, to develop container berths at the port. The company will reconstruct berth number 8 and will also mechanise berths no. 8 and 9 of Netaji Subhas Dock of the port.
The company has received the order under the DBFOT model, where it will be responsible for Designing, Building, Financing, Operations and Transfer of the said berths of the dockyard.
In a filing exchange, JSW Infrastructure said that it will spend Rs 740 crore for the construction and mechanisation work over the neon projects over the next 2-year period. The company has received the project for a 30-year concession period.
Why is the project important for JSW Infra?
JSW Infrastructure is among the largest private port operators in India. It operates 14 ports and terminals in India and the United Arab Emirates. The company claims to have a combined capacity of 170 metric tons per annum. However, faces fierce competition from Adani Ports and SEZ, the largest private port operator in India.
JSW Infrastructure is rapidly expanding its operations amid the growing competition. The company says that it is aiming to increase its cargo handling capacity to 400 metric tonne per annum and to achieve that target, winning orders like that of Kolkata Port are crucial for the company.
While JSW Infrastructure has operations at 6 locations on the western coast, on the east coast, it has operations just at the Paradip Terminal, Odisha. This is the second port location for JSW Infra on the east coast and the first at the Kolkata port.
Secondly, the Kolkata port operations will bring a much higher container handling capacity to the company. Currently, its New Mangalore Container Terminal has a capacity of 20 lakh standard containers (TEU), which it is planning to expand to 30.5 lakh TEUs. However, the Kolkata port project of the company is expected to bring a massive 1 million standard container (TEU) capacity to the company