News / India set to extend DP World box terminal concession at Nhava Sheva

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DP World’s efforts to extend its flagship container terminal concession at India’s Nhava Sheva port (JNPA) seem to have yielded some positive signals from local government.

The 30-year operating licence for Nhava Sheva International Container Terminal (NSICT) will end in late 2027.  It was India’s first box facility developed through a build-operate-transfer model across the 12 major ports, following privatisation of the sector in the 1990s.

And it looks like the Dubai-based group’s concession rights for NSICT will be extended for five years by the port/government authorities – “provisionally green-lighted”, one exclusive industry source in Nhava Sheva told The Loadstar.

“That would make logical sense for the landlord port,” the source added.

DP World also operates a second minor terminal in JNPA, Nhava Sheva (India) Gateway Terminal (NSIGT), with a 17-year concession launched in 2015.

It is also believed that the Indian shipping authorities are considering re-awarding both concessions under a single tender on expiry of the expected five-year extension for NSICT.

Continuity of NSICT operations is critical for DP World’s capacity and operations at JNPA, as NSIGT’s 330-metre berth lacks the length necessary to handle ultra-large containerships, which are making more calls at the port.

In addition to DP World, the port has container terminals operated by APMT, PSA, and CMA Terminals/JM Baxi.  PSA’s BMCT facility has cemented its operations with the opening of a 2.4m teu capacity upgrade, increasing intra-port competition for market share.

Meanwhile, JNPA is on the way to being integrated with the much-awaited Dedicated Freight Corridor (DFC), a speedier rail link with the northern hinterlands.

Better cargo flow infrastructure is a boost for investors eyeing terminal development opportunities at the port.  According to sources, interest has been building on NSICT – APMT, TiL, PSA, Adani, CMA CGM, Hapag-Lloyd,  and others among potential suitors for its fresh concession rights.

Another driving factor is that JNPA has little room for further expansion and is poised to reach saturation point for container handling in the coming years.

The government-controlled port has already begun work on a new deepwater harbour at Vadhvan, some 120 miles away, to fend off market share challenges from Adani Ports’s Mundra gateway.

JNPA handled 2.6m teu from April through July, up 14% year on year, according to new data.