JSW Infrastructure: Mangalore Container Terminal Expansion Starts Sep 2023

JSW Infrastructure is investing Rs. 151.7 Crores in the expansion of JSW Mangalore Container Terminal  

Works are set to commence from September 2023 and complete in FY 2025.

Introduction to JSW Infrastructure Mangalore Container Terminal 

JSW Infrastructure, a major player in the infrastructure sector, currently holds 100% of the equity share capital of Mangalore Terminal Private Limited (MTPL).

MTPL holds an exclusive license. From the date of the concession award, MTPL has an exclusive license granted for a duration of 30 years. This license authorizes MTPL to design, engineer, finance, construct, equip, operate, maintain, and replace project facilities and services.

This license stems from a concession agreement inked on January 27, 2020, between MTPL and the Board of Trustees for New Mangalore Port Trust.

The agreement pertains to the mechanization of berth 14, with a focus on facilitating the handling of containers and other cargo at New Mangalore Port under the Design, Build, Finance, Operate, and Transfer (DBFOT) framework.

The terminal officially commenced operations on February 4, 2022, marking JSW Infrastructure’s entry into the container cargo business. 

Mangalore Container Terminal Features 

As of December 31, 2022, the Mangalore Container Terminal handled a capacity of 4.2 million metric tonnes per annum (MTPA), with 0.64 MTPA dedicated to bulk cargo.

Furthermore, the terminal already includes a container yard with a plot size of 6.5 hectares for the storage of containers.

• Mobile harbour cranes – 3 nos
• Reach stackers – 8 nos
• Empty handlers – 1 nos
• Mobile Hopper – 2 nos
• Backup storage area – 6.5 hectares

Situated strategically, New Mangalore Port enjoys excellent connectivity via NH-75, NH-66, NH-52, NH-50, and NH-275. This connectivity facilitates the seamless movement of goods to Karnataka, Goa, and other parts of southern India.

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JSW Infrastructure Mangalore Container Terminal Expansion 

In line with its diversification strategy and its focus on expanding its presence in the container cargo sector, JSW Infrastructure is actively engaged in enhancing its existing facilities at the Mangalore Container Terminal.

The expansion entails the development of an additional yard and the acquisition of supplementary equipment to support the expected growth in annual traffic.

Under the terms of the concession agreement, MTPL is authorized to handle 358,722 twenty-foot equivalent units (TEUs) of containers. It has an option to request an additional plot of 7.5 hectares from New Mangalore Port for capacity expansion.

This expansion project aims to enhance berth operation efficiency and streamline yard operations. Thereby attracting more container business to the region.

Finances

To finance the capital expenditure requirements of the Mangalore Container Project, which includes the development of an additional container yard, road and drainage infrastructure, and the procurement of supplementary infrastructure such as mobile harbour cranes, reach stackers, empty container handlers, and ancillary support systems like power distribution and lighting, the company intends to utilize Rs. 151.628 Crores from the Net Proceeds.

JSW Infrastructure Mangalore Container Terminal Expansion Timelines 

This strategic move reflects JSW Infrastructure’s commitment to expanding its presence and capabilities in the dynamic container cargo sector while leveraging the strategic advantages offered by the New Mangalore Port.

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