Port Redi being developed by the Earnest John Group is seen as a vital step for triggering coastal shipping activity in India
On the West coast of India just 10 hours by road from Mumbai and 40 miles from Goa, Earnest John Group has launched its $ 267 million first development phase of Redi port - India’s first family owned port. The group widely known for its activities in Real Estate, Property Development and Infrastructure Development, Pharmaceutical Bulk Drugs, shipping and ship building has ventured into port building as its new endeavor to bring in vibrancy in coastal shipping by exploiting the growing opportunities of sea transport.
Though Port Redi is their first venture into the port sector the Group already has plans to set up more ports on the Indian coast with the aim of promoting short sea shipping in a big way and also international trade by sea. The group is in negotiations with various parties in India for taking over other minor ports on the Indian coast and developing them for playing a major role in this regard. They are also in the process of taking over a port in Indonesia.
“As it is there is abundance of cargo as iron ore is getting exported in big way and we are now concentrating also on coal/coke imports required for various thermal power stations and several others coming up,” says Dr E. J. John, Director. “When the first phase of port Redi gets completed in 2 ½ years creating additional capacity of 15 million tons the port will have state-of-the-art highly mechanized equipment, a draft of 17 metres, extensive back-up facilities and excellent connectivity all geared to offer high productivity. Presently during monsoon we are forced to shut down the two jetties which handle around 1 million tonnes iron ore annually. But once the first phase gets completed we will have a breakwater in place making the Port Redi an all weather port.
“The next two phases of $ 1.1 bn each will be dedicated for containers handling and gas terminals respectively, all designed to boost the port capacity to 34 million tons. The government of India has already given us their approval for setting up a Free Trade Zone attached to the port which we want to build on the lines of Jebel Ali. This will create the major potential for our port as material can be brought from anywhere in the world for assembling or manufacturing here and then re-export.”
Earnest Group entered into a 50-year concessional agreement with the Maharashtra Maritime Board last year and thereafter obtained the necessary clearances to go ahead with their project. The environmental clearance is expected soon informed Dr. John. The group holds about 89% stake, while Maharashtra Maritime holds the rest of the equity shareholding which is normally by way of land. All necessary funding for the project is being met from within the group.
What makes Redi a convenient gateway to Maharashtra, Goa and the Karnataka is its proximity to the National Highway and the Konkan Railway passes just 10 km from the port. Plans are afoot to set up the rail connectivity. As the port is strategically located in the vicinity of the Kolhapur, Sangli and North Karnataka industrial belt from where much of the cargo originates, the group has plans to construct four-lane coastal road that will join the state highway thus ensuring excellent connectivity. 80% of the traffic is expected from Sindhudurg industrial area and 20% from Kolhapur district. The port is being seen as a gateway to the Group’s endeavor for embarking on other port projects.