BPCL, JM Baxi and JSW Infra are vying for a liquid cargo berth at JN Port

Seven companies including Bharat Petroleum Corporation Ltd, JM Baxi Ports & Logistics Ltd, JSW Infrastructure Ltd, Ganesh Benzoplast Ltd, IMC Ltd and Aegis Logistics Ltd have submitted initial bids to equip and operate additional liquid cargo berths at the Port of Jawaharlal Nehru.

The State Port Authority has solicited bids for the selection of an operator to outfit, operate and maintain the new liquid cargo Berths 3 and 4, which it built with internal resources.

Unmesh Wagh, vice chairman of the Jawaharlal Nehru Port Authority, said the response to the tender has been “overwhelming” and top names in the liquid cargo business are vying for the 30-year contract.

The Port Authority has invested Rs 92.52 million in the construction of additional liquid cargo berths capable of handling around 4.5 million tonnes (mt) of petroleum, oil and lubricants (POL), edible oil, chemicals, molasses and all new products/liquids in bulk.

The new liquid cargo berths are designed to handle ships that can transport up to 90,000 tons of liquid cargo and require a draft of 15 meters.

The bid goes to the company that pays the highest royalty, to be shared with the Port Authority, for every tonne of cargo handled at the berths.

The successful operator is free to set tariffs according to market conditions.

The additional berths are planned to relieve pressure on the existing liquid cargo docks 1 and 2, operated by state-owned oil refining and marketing company BPCL, and to accommodate additional liquid cargo needs.

The existing liquid cargo berths of BPCL have a capacity for handling 6.5 million tons and are more than 90 percent utilized. The BPCL jetty mainly carries liquefied petroleum gas (LPG) and chemicals such as ammonia.

By 2029, 4.46 million tonnes of liquid goods are to be handled at the additional berths for liquid goods. The capacity of the additional berths depends on the product mix and the turnover rates for different products.

A higher proportion of POL products can increase the capacity of the pier as it has higher throughput rates and larger package sizes according to the tender documents issued by the Port Authority.

Related Articles

Back to top button