The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) have signed a $131 million loan agreement to upgrade the Jawaharlal Nehru Port Container Terminal located in Navi Mumbai, Maharashtra to enhance international trade in India through efficient, transparent, and state-of-the-art logistics infrastructure.
This is a big shot in the arm at a time when India is trying to develop its maritime ecosystem.
India is aggressively looking to further develop its ports to boost exports, especially at a time when it is trying to position itself as the global manufacturing hub.
Between April and December, Indian ports registered a 9 per cent growth in traffic.
The total cargo handled by the 12 major ports of the country during this period was 576.63 million tonnes while it was 529 MT in the corresponding period in the previous financial year.
Last year, Prime Minister Narendra Modi while laying the foundation of the Rs 5200 crore project at Bhavnagar in Gujarat said that the Bhavnagar port will play a crucial role in building a self-reliant India and create new employment opportunities for many in the state.
ADB’s financing package comprises $61.4 million from ADB’s ordinary capital resources and $69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP) administered by the multilateral agency. According to the ADB, the funds will be used to upgrade existing berths and yards and install additional energy efficient equipment such as electric quay cranes. These upgrades will expand the terminal’s container handling capacity and attract vessels operating on important international shipping lanes.
NSFTPL is a special purpose vehicle jointly owned by J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.
“Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region’s recovery from COVID-19 and its ongoing prosperity,” said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerized cargo terminal operations.”
