JM Baxi Ports & Logistics ties up funds from Yes Bank to achieve financial close for shallow water and coastal berths at JN Port

Nhava Sheva Distribution Terminal Pvt Ltd, a wholly owned unit of JM Baxi Ports & Logistics Ltd, has secured financing from Yes Bank to complete financial closure for the modernization and operation of the shallow water and coastal berths at the state-owned Jawaharlal Nehru Port in the to reach near Mumbai .

The term loan agreement for the project was recently signed, according to the company.

JM Baxi Ports & Logistics made a price offer of Rs 84.4 per tonne of cargo handled at the berths to emerge as the winning bidder in a tender by JN Port Authority to privatize the berths via the public-private partnership (PPP) route for a 30-year concession period.

The project is part of the National Monetization Pipeline (NMP) in which operational infrastructure assets, including port terminals, will be privatized via the public-private partnership (PPP) route.

The shallow water and coastal berths will be modernized in 3 years in one phase.

JM Baxi Ports & Logistics plans to convert the berths to a coastal distribution center in Nhava Sheva.

“The strategy is to build a hub in Nhava Sheva (where JN Port is located) that is unparalleled in the region,” said Dhruv Kotak, managing director of JM Baxi Ports & Logistics, in a previous interview.

“We have named this special purpose entity Nhava Sheva Distribution Terminal. It is a distribution terminal for both industrial companies and containers that need to enter and exit Nhava Sheva.

It’s another distribution channel and method that we’re developing, that’s why we call it that,” Dhruv Kotak said in the interview.

The 4 million tonnes per year (MMTA) shallow water berth (SWB) will have a length of 445 metres, of which 125 meters has been developed as a ro-ro terminal. It can accommodate ships up to 30,000 tons.

SWB is a multi-cargo terminal capable of handling container, cement, breakbulk and liquid cargo vessels both offshore and offshore.

The Port Authority developed the coastal berth to provide a dedicated coastal cargo facility to boost coastal shipping. The project was funded in part under the Ministry of Ports, Shipping and Waterways’ ‘Sagarmala’ programme.

The coastal berth will support the smooth and faster coastal movement of cargo through a green channel, and help increase the share of coastal shipping in domestic cargo movement and facilitate the export-import (EXIM) community.

The coastal berth has the capacity to handle approximately 2.8 million tons of coastal cargo per year (MMTA) such as steel, cement, containers, fertilizers, grain and some other clean cargoes. The berth has 9 hectares of backup space for cargo storage and transhipment.

JM Baxi will install a mechanized cement handling system and connected conveyors and silos for cement storage, which will enable faster ship turnaround times. The coastal berth aims to provide better infrastructure for coastal shipping and to relieve the rail and road networks to ensure cost-effective and effective multimodal transport solutions. Source: ET Infra

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