Said to be operating much above capacity, India’s largest container-handling port, JNPT, which achieved an increased throughput of about five per cent at 4.27 million TEUs over last year's 4.09 million TEUs is being positioned on a high growth trajectory. The contract for the development of the port’s fourth box terminal was awarded last week. Now the port has taken another significant step and invited proposals for consultancy services for developing the port’s fifth container terminal facilities at the Nhava Island area.

The three currently operating terminals of JNPT that helped achieve the annual record of 4.27 million TEU containers are:  Gateway Terminals International of APM Terminals, (Maersk's port operating arm) whose volume notched 1.85 million TEUs.  DP World's Nhava Sheva International Container Terminal throughput recorded 1.54 million TEUs and the State-run JNPT facility handled 880,000 TEUs (780,000 TEUs).

The $ 1489 million contract for this fourth terminal which has been bagged by a consortium led by ABG Infra and Port of Singapore Authority will add another 4.8 million TEUs once the fourth terminal is constructed.   The Port of Singapore Authority, which will do the honors, enjoys a 50.8% revenue-sharing agreement with JNPT.

According to the JNPT Chairman L. Radhakrishnan the port trust has chalked out plans to expand the capacity of some of its existing terminals. This will require investments of up to $ 445 million funds which will be raised by issuing the first tranche of tax free bonds this year.

According to the proposal document for the fifth terminal, “the port plans to extend the development activities for augmentation of capacity and other allied activities. Since the area around Sheva is saturated, it is now proposed to examine developing Nhava Island. Hence, it is essential to study Nhava Island in an overall perspective”. The Port, therefore, “is looking for capable consultants of international repute to provide the required consultancy services for development of port facilities in Nhava Island Area”, the document said. The scope of consultancy services is broadly divided into three phases:

Phase I: Preparation of a Master Plan for all-round development of Nhava Island in Zones I, II & III.

Phase II: Preparation of a Detailed Project Report for a container terminal in Zones I and II.

Phase III: Carrying out Comprehensive EIA study and providing technical assistance in getting MoE&F approval for the container terminal in Zones I and II.

The overall duration of the consultancy contract covering the three phases is expected to be about 27 months, the document stated. It goes on to explain that as per the Business Plan of the Port, the expected traffic projection up to 2015-16 was about 11 million TEUs (subsequent to the commencement of the 4th container terminal). The projection up to 2024-25 is 23 million TEUs.

“Expansion alone will not improve port efficiency,” says Mr Radhakrishnan. “Dredging is also a big problem.” The dredging work which will increase the draft to 14 meters for allowing mother vessels to come in has been long overdue. This project will now be taken up by October/November 2011.

“This is the second time that we are taking up the dredging project work,” stated Mr. Radhakrishnan. “Last time the plan had to be dropped because the bid cost had exceeded the estimated cost. This time we will be going ahead successfully. The estimated cost of the project is around $ 300 million which includes the cost of dredging, consultancy, etc. The time for completion of the capital dredging work will be 27 months.” 1/8th of the cost of common channel will be borne by Mumbai Port Trust with which JNPT shares a common channel through which ships enter the two ports.

The chairman desired that concessions be given for the equipment, which comes from abroad for dredging purposes, which will really reduce the cost of dredging and it will reduce the burden on ports.