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DP World set to ink pact with JNPT for second terminal - 2013-06-18

Global Port operator DP World is scheduled to sign the concession agreement for building its second container terminal at Jawaharlal Nehru Port on Wednesday, a senior official of the Dubai based company said. The project – a 330-m berth with an annual capacity to handle eight lakh 20-ft containers – was awarded to DP World in last October.

The winning bidder is expected to sign the concession agreement within 30 days after the letter of award of the project was issued. However, environmental issues and the DP World’s move to bring its India business under a separate holding company delayed signing the agreement. “These issues have been resolved. We will be signing the agreement on June 19 in New Delhi,” said a senior official of DP World. The company was awarded the project after it agreed to share 28.09 per cent of the revenue with JNPT.

The project, now estimated to cost Rs 1000 crore, will be implemented by Nhava Sheva (India) Gateway Terminal, a new company constituted by D P World. The earlier plan was that the project will be implemented by Hindustan Port, the holding company for DP World’s assets in India. IN fact, it has obtained Foreign Investment Promotion Board’s permission to bring in Rs 440 crore as its equity in the project.

DP World, majority owned by the Dubai Government, is the biggest container port operator in India, handling more than 40 per cent of the country’s container volume through its five terminals at JNPT, Mundra (Gujarat) Chennai, Kochi and Vizag. Signing the agreement was delayed by more than six months, but the bidder is confident that the project will be completed within the stipulated time. “We will able to build at least the berth in 12 months once we start the construction, which is expected to commence after the monsoon, “said the DP World official.

Source: The Hindu Business Line