JSW Infra wins bid to develop 30 mtpa port in Karnataka for ₹4,119 crore

New Delhi: Sajjan Jindal-led JSW Infrastructure Ltd on Thursday announced it has acquired the rights to develop a greenfield port in Karnataka with an initial capacity of 30 million tonnes per annum (mtpa). The project is set to be completed in the next five years.

The company emerged as the winning bidder for developing the all-weather, deep-water Keni port on a public-private partnership basis at a cost ₹4,119 crore. It will operate the project for 30 years.

“Once the concession agreement is signed, we will start working to develop the Keni port as an integral part of the state’s maritime infrastructure and trade gateway,” said Arun Maheshwari, joint managing director and chief executive officer of JSW Infrastructure.

“Once developed, the Keni port is expected to crucially address the region’s rising import and export trade momentum,” Maheshwari was quoted as saying in the release.

The project was awarded by the government of Karnataka and the Karnataka Maritime Board.

JSW Infra will be making the payment towards royalty per MT on cargo to the board and the concession period would be for 30 years from the date of appointment. There’s a further extension clause subject to the fulfilment of the terms and conditions, it added.

As per a Karnataka Maritime Perspective Plan, the southern state has a hinterland potential of 44 mtpa of cargo, which is expected to increase to 117 mtpa by 2035.

“The proposed Keni port would have modern environment-friendly mechanized facilities for handling of cape-size vessels,” the company said.

“It is envisaged as a...commercial port for handling all cargo types on the west coast in the north Karnataka region to serve the industries in the area covering Bellary, Hosapete, Hubballi, Kalaburagi, and south Maharashtra.

To begin with, the capacity of the proposed port shall be 30 mtpa in the initial phase with further potential to increase substantially in the long run,” the company added.

The proposed Keni port will be located strategically between two operational major ports. It is a hinterland primarily of coal and coke cargo which is being utilized for steel, cement, and power plants.

It is further supported by iron ore, limestone, dolomite handling, and exports of finished steel products.

“Rail connectivity to the Keni port site is proposed to be on the southern side and connected with the existing Konkan line to the north of the Ankola Station. The proposed railway alignment will be developed with a length of about 8 km. The proposed port shall be well connected with road and railway connectivity,” it added.

The Infrastructure company, which began as a company catering to the requirements of JSW group, is also planning to focus on raising its third-party business to 40% within two years and 50% in five years from the current 36%, Maheshwari had told Mint in an interview earlier. It also announced entry in container train operations with the acquisition of Sical Multimodal and Rail Transport Ltd’s licence from Pristine Logistics & Infraprojects Pvt. Ltd for ₹400 crore under India’s bankruptcy law. This move is a strategic step to boost its container logistics business and enhance its third-party cargo operations.