PSA International to open the fourth container terminal, which will initially handle a million TEUs
PSA International, formerly Port of Singapore Authority, will throw open the fourth container terminal at Jawaharlal Nehru Port in December to handle a million Twenty Foot Equivalent (TEUs) capacity.
The terminal, titled Bharat Mumbai Container Terminals (BMCT), will initially handle a million TEUs. A TEU is a standard used to measure a ship’s cargo carrying capacity. The capacity would be increased gradually over the next few years.
“We have actually built around 500 metres of quay. We are going to finish 1,000 metres of quay, rail tracks and buildings as part of entire first phase. We are confident of doing it as per schedule,” said Mike Formoso, managing director, PSA India.
A quay is a platform lying alongside or projecting into water for loading and unloading ships.
At the moment, six quay cranes will handle the initial million TEUs. The initial six cranes have already been installed at the terminal.
“Six more quay cranes will be added during 2018-19,” said Formoso.
Three quay cranes each are expected to arrive in 2018 and 2019, thereby increasing the capacity under the first phase to 2.4 million TEUs.
The project’s second phase involves adding another kilometre of quay to double the capacity to a total of 4.8 million TEUs. “Start of operations for the second phase will be by the end of 2021, with a further 12 quay cranes to be added,” he said.
PSA International is in discussions with various shipping lines to start getting cargo, Formoso said, without divulging further details on the discussions.
Spread over 200 hectare, BMCT is being created at a projected cost of Rs 7,915 crore. The first phase is estimated at Rs 4,719 crore followed by Rs 3,196 crore for the subsequent phase. When asked, he refused to share figures of the total capital expenditure incurred till date, on the project.
In India, the container traffic has increased by 15%, but due to lack of capacity Jawaharlal Nehru Port, the volumes have not risen proportionately. In 2016-17, the port handled 4.50 million TEUs of container traffic, which is just a 0.19% increase over the previous year's 4.49 million TEUs. After the new container terminal is commissioned, Jawaharlal Nehru Port may get back some of the traffic it had lost to the nearby ports on the western coast.
In mid-2014, PSA International had won the concession to build and operate the container terminal at India’s largest container port. As per the concession agreement, PSA International will share 35.7% of their revenues with the government.
In order to handle increased container traffic, the government is also augmenting road and rail capacity. It is widening National Highway 4B, State Highway 54 and Amra Marg through National Highways Authority of India at an estimated cost of Rs 2,935.91 crore and the total length of widening is 43.91 kilometre. The widening of highways should be in another nine months.
The 1,504-km long Western Dedicated Freight Corridor or Delhi-Mumbai Industrial Corridor is being laid, but far from finish.
...& ANALYSIS
- In India, the container traffic increased by 15% in the last fiscal
- The volumes at JN Port didn’t risen proportionately due to lack of capacity
- In FY17, JN Port handled 4.50 million TEUs, which is a 0.19% rise year on year
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