Mangaluru strengthens infrastructure to improve container throughput

With the growth in container throughput at Mangalore’s New Mangalore Port (NMP) in recent years, stakeholders are now focusing on strengthening other infrastructure in the region.

After JSW Infrastructure commissioned a mechanized container terminal at the NMP in April 2022, 1.65 lakh TEU containers were handled in 2022–23 (vs. 1.52 lakh TEU in 2021–22). In the first quarter of 2023-24, the port handled 47,036 TEUs (37,581 TEUs in the first quarter of 2022-23), a growth of 25.15 percent.

The development of infrastructure such as Container Freight Stations (CFS) plays an important role in a container-centric logistical ecosystem. In addition to improving container handling capacity at the port, CFS also benefits the supply chain.

At least two CFSs are planned in Mangaluru, including one in the private sector.

In June, the Central Board of Indirect Taxes and Customs (CBIC) issued a letter of intent to Mangaluru-based Delta Infralogistics (Worldwide) Ltd to set up a CFS in Mangaluru within a year.

freight consolidation

Also, the New Mangalore Port Authority (NMPA) has signed a Memorandum of Understanding with Central Warehousing Corporation (CWC) and Sagarmala Development Company Ltd (SDCL) to develop a CFS storage facility at NMP via a purpose vehicle.

Ahmed Mohiuddin, Managing Director of Delta Infralogistics, said business line that the CFS will be operational within a year in an area less than a kilometer from NMP.

He said Delta’s CFS aims to provide services for inland Karnataka trade, including consolidation of LCL (less than containerized) cargo. The CFS will provide additional support for JSW’s dedicated container terminal at the NMP, while also relieving the port and terminal.

Target industrial centers in Peenya, Nanjangud, Mysuru, Mandya, Shivamogga, Belagavi, Hubballi-Dharwad and parts of Kerala for cargo such as automobile components, agricultural products, pharmaceutical products and refrigerated cargo.

Delta will partner with major container lines to improve trade access in general, he said.

agricultural export

Meanwhile, NMPA’s joint venture CFS will be developed on 16.6 acres at an estimated cost of ₹125.42 crore. AV Ramana, Chairman of the NMPA, said the Port Authority’s contribution would be the cost of the property (approximately ₹44.25 crore). The remainder would be shared equally between the CWC and SDCL.

He expects a significant improvement in LCL cargo handling in the future and said the proposed infrastructure will boost exports of agricultural products such as cucumbers, vegetables and coffee through NMP.

Nagaraja Shetty, managing partner of Ganesh Shipping Agency, suggested that the CFS warehouse should have facilities for handling agricultural and general cargo.

Worldwide supply chain

Shekar Pujari, president of the NMP Stevedores’ Association, welcomed the move by the NMPA and Delta to set up CFSs in Mangaluru, saying the infrastructure expansion will boost export trade in the region. NMP can expect significant improvements in container loading once the CFS are built, he said.

Praveen Kalbavi, chairman of CII-Mangalore, said the proposed infrastructure will support global supply chains, particularly from Mangalore. Such infrastructure will help local industries perform much better, he said.

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