Shares of JSW Infrastructure Limited are expected to remain in focus after the company secured a major port project from the Syama Prasad Mookerjee Port Authority (SMPA), Kolkata.
According to an exchange filing, the company has received a Letter of Award (LoA) for the integrated development of the Outer Container Terminal and Berths 1 to 5 at the Netaji Subhas Dock (NSD) under the Kolkata Dock System.
The project has been awarded under the Public-Private Partnership (PPP) framework on a Design, Build, Finance, Operate and Transfer (DBFOT) basis.
Shares of JSW Infrastructure were trading at ₹280, up 4.32 percent during the session. The company has a market capitalization of ₹58,842.04 crore.
30-year concession period
The project carries a concession period of 30 years from the date of award, providing long-term revenue visibility.
It will be implemented in two phases.
The project includes:
- Development of two new outer container berths
- Takeover of five existing berths at Netaji Subhas Dock
Upon completion, the terminal is expected to handle:
- 0.93 million TEUs
- Nearly 13 million tonnes per annum (MTPA) of containerized and multipurpose cargo
Container capacity to expand further
JSW Infrastructure had earlier won another project at the Kolkata Dock System involving:
- Reconstruction of Berth 8
- Mechanization of Berths 7 and 8
That project is expected to add 0.45 million TEUs of capacity.
Together, the two projects are expected to increase the company’s capacity at the Kolkata Dock System to around 1.4 million TEUs.
Management said total container handling capacity could rise to around 1.8 million TEUs after completion of all identified container expansion projects.
Focus shifts beyond bulk cargo
The latest project forms part of JSW Infrastructure’s strategy to diversify beyond bulk cargo and expand its presence in:
- Container logistics
- Third-party cargo handling
The company said the Kolkata project benefits from strong cargo generation and a large industrial hinterland in eastern India.
Modernization and mechanization of terminal infrastructure are expected to:
- Improve berth productivity
- Reduce vessel turnaround time
- Ease capacity constraints
Supports long-term growth plans
The project marks the company’s second win from SMPA within a year.
It also strengthens JSW Infrastructure’s presence on India’s east coast and supports its target of increasing total cargo handling capacity from 183 MTPA to 400 MTPA by 2030 or earlier.
About the company
Incorporated in 2006, JSW Infrastructure provides:
- Port operations
- Cargo handling services
- Logistics solutions
- Storage facilities
It is India’s second-largest private commercial port operator and has operations across:
- India’s east coast
- India’s west coast
- The UAE
Key highlights
| Particulars | Details |
|---|---|
| Client | Syama Prasad Mookerjee Port Authority |
| Project location | Kolkata Dock System |
| Model | DBFOT under PPP |
| Concession period | 30 years |
| Capacity addition | 0.93 million TEUs |
| Cargo handling capacity | 13 MTPA |
| Existing Kolkata expansion project | 0.45 million TEUs |
| Expected Kolkata capacity | 1.4 million TEUs |
| Long-term container target | 1.8 million TEUs |
TL;DR:
JSW Infrastructure has won a 30-year concession from SMPA to develop the Outer Container Terminal and Berths 1 to 5 at Kolkata Dock System. The project will add 0.93 million TEUs of capacity and strengthen the company’s east coast container business.
AI summary:
- JSW Infrastructure received a Letter of Award from SMPA.
- The project has a 30-year concession period.
- It will add 0.93 million TEUs of capacity.
- Total capacity at Kolkata Dock System could rise to 1.4 million TEUs.
- The company aims to increase overall cargo handling capacity to 400 MTPA by 2030.
