According to a feasibility study by consultancy firm Howe Engineering Projects, the cost involved in the project is too high as deep water is quite far from the shore
The plan to have an offshore deep water terminal to boost capacity at Jawaharlal Nehru Port Trust (JNPT) has been shelved. The feasibility study has recommended not to set up the new facility, mainly because the cost involved is exorbitant.
JNPT had initially planned to have a deep water terminal to increase its capacity, but it has been shot down by Howe Engineering Projects, the consultancy firm appointed to conduct a feasibility study, on multiple counts.
"At JNPT and nearby coastal areas, deep water is quite far from shore, i.e. 10-metre contour and 20-metre contour are at a distance of 4 to 8 kilometre and 16 to 24 km from the shore, respectively," reads the report, the copy of which is available with DNA Money.
Establishing such a terminal would require the creation of breakwaters, berthing structure and approach trestle. Approach trestle is a bridge to connect the offshore facility with the port at the shore.
Due to the distance of deep water from the shore, the project has technical and cost implications. "The entire cost of creating an offshore terminal with approach is likely to be much higher than dredging for deeper berths at JNPT or any other satellite port, which could be planned nearby JNPT," mentions the report, therefore, making it financially unfeasible to have one.
JNPT chairman Anil Diggikar said, "After fourth terminal is ready, there is no other capacity augmentation plan."
At the moment, JNPT is working on a Rs 2,029 crore project to dredge Mumbai harbour channel and port channel to increase traffic and capacity of the port. If everything goes as per the plan, the project work will begin after monsoon in 2017 and be completed only by the end of 2019.
There was also a plan to deepen the approach channel to cater to 18-metre draught ships, but even this was found to be financially unviable as the estimated cost has been pegged at Rs 14,650 crore. Thus, JNPT now plans to deepen the channel by only a metre - from 14 metre to 15 metre.
So far this fiscal, that is between April and November, the total traffic handled by JNPT has been at 40,925 as compared to 42,556 last year, which is a marginal decrease of 3.83%. On an average, JNPT handles 11% of the total traffic at the 12 major ports of India, thereby making it important to expand its capacity and traffic.
JNPT's neighbour Mumbai Port Trust (MbPT) had taken up offshore container terminal project, but it has hit a rough ground due to financial crunch. It is half ready and is not functioning at its full capacity.
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