JSW Infra Secures Major Berth Deal at Tamil Nadu Port

JSW Infrastructure’s subsidiary, JSW Tuticorin Multipurpose Terminal, has secured a concession agreement with the VO Chidambaranar Port Authority in Tamil Nadu to develop and mechanize the North Cargo Berth-III (NCB-III) for handling dry bulk cargo. This project will be executed on a design, build, finance, operate, and transfer (DBFOT) basis and aims to construct a cargo berth with an annual capacity of 7 million metric tonnes. This development will enhance the port’s capacity to handle various bulk products and improve access to the robust hinterland.

The agreement was finalized on July 2, and the project will bolster JSW’s market share on the East Coast of India, leveraging its expertise in handling diverse cargoes, including dry bulk, coal, limestone, gypsum, rock phosphate, and copper concentrate. At 10.31 am, JSW Infrastructure’s stock was trading at Rs 350.5 on the National Stock Exchange, reflecting a 0.27 percent increase from the previous close. The stock has seen a significant gain of 123 percent over the past year.

JSW Infrastructure emerged as the highest bidder for the North Cargo Berth-III project by offering a royalty of Rs 76 per ton of cargo handled. This win marks the company’s second tender success in a week, reinforcing its ambitious expansion plans since going public in October last year. The contract includes deepening the channel in front of the berth to accommodate ships with a draught of up to 14.2 meters.

The company’s recent expansions highlight its focus on both organic and inorganic growth. In addition to developing new facilities, JSW Infrastructure has acquired multiple assets, including a majority stake in PNP Maritime Services Pvt Ltd, rights to build and operate a greenfield port in Karnataka, and a liquid storage facility at Fujairah Port in the UAE. The company is also increasing the capacity of its existing ports, such as expanding the coal terminal at Kamarajar Port and building a new terminal at Jaigarh Port.

In the first nine months of FY24, JSW Infrastructure handled 77.2 million tonnes of cargo, with third-party cargo accounting for 37 percent of the total. This focus on expanding the third-party customer base through long-term agreements is a strategic priority for the company.

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