JSW Infra invests Rs 70 bn to expand port capacity by 40%
PORTS & SHIPPING

JSW Infra invests Rs 70 bn to expand port capacity by 40%

JSW Infra, the second-largest private port operator in India, is set to invest Rs 60-70 billion over the next 3-4 years with the goal of boosting its annual cargo handling capacity by over 40% to reach 250 million tonnes, according to the company's CEO. The primary focus of this investment will be on two greenfield port projects in Karnataka and Odisha, along with the expansion of a recently acquired cargo terminal.

Construction for both greenfield projects is scheduled to commence within the current calendar year, as mentioned by Arun Maheshwari in an interview. JSW Infra secured the development rights for the Keni greenfield port in Karnataka last year, and the concession agreement with the Karnataka Maritime Board has already been signed. Maheshwari anticipates that once the remaining approvals are obtained, construction will begin, taking approximately four years to complete. The estimated capital expenditure for the Keni port is Rs 41.19 billion, with an initial handling capacity of 30 million tonnes per annum.

Additionally, JSW Infra is venturing into Jatadhar in Odisha for another greenfield port project. The company plans to start building the port after the concession agreement is signed, which is expected within the next month or four weeks. This project is projected to take 3-4 years with a planned capacity of 30 million tonnes in phase 1, incurring a capital expenditure of around Rs 30 billion.

JSW Infra has also acquired a majority shareholding in PNP Maritime Services (PNP Port), an operating port in Raigad, Maharashtra. The company paid Rs 2.70 billion for a 50%-plus 1 share of the paid-up capital of PNP Port, which currently has a capacity of 5 million tonnes per annum and the potential to expand to 19 million tonnes per annum.

Arun Maheshwari stated that their objective is to increase capacity by 14-15% annually from the base, aiming to reach 10 million tonnes in the next 3-4 years. The funding for these projects will be a combination of 30% equity and the remaining through debt. JSW Infra, with Rs 6 billion in existing debt on its balance sheet, plans to raise additional debt in the coming financial year for its two major projects. Despite this, the company recently reported a robust operating performance, posting a 118% increase in net profit to Rs 2.54 billion. Maheshwari highlighted that 67% of their business comes from captive cargo and expressed confidence in the company's overall outlook, stating that the story "looks pretty great."

JSW Infra, the second-largest private port operator in India, is set to invest Rs 60-70 billion over the next 3-4 years with the goal of boosting its annual cargo handling capacity by over 40% to reach 250 million tonnes, according to the company's CEO. The primary focus of this investment will be on two greenfield port projects in Karnataka and Odisha, along with the expansion of a recently acquired cargo terminal. Construction for both greenfield projects is scheduled to commence within the current calendar year, as mentioned by Arun Maheshwari in an interview. JSW Infra secured the development rights for the Keni greenfield port in Karnataka last year, and the concession agreement with the Karnataka Maritime Board has already been signed. Maheshwari anticipates that once the remaining approvals are obtained, construction will begin, taking approximately four years to complete. The estimated capital expenditure for the Keni port is Rs 41.19 billion, with an initial handling capacity of 30 million tonnes per annum. Additionally, JSW Infra is venturing into Jatadhar in Odisha for another greenfield port project. The company plans to start building the port after the concession agreement is signed, which is expected within the next month or four weeks. This project is projected to take 3-4 years with a planned capacity of 30 million tonnes in phase 1, incurring a capital expenditure of around Rs 30 billion. JSW Infra has also acquired a majority shareholding in PNP Maritime Services (PNP Port), an operating port in Raigad, Maharashtra. The company paid Rs 2.70 billion for a 50%-plus 1 share of the paid-up capital of PNP Port, which currently has a capacity of 5 million tonnes per annum and the potential to expand to 19 million tonnes per annum. Arun Maheshwari stated that their objective is to increase capacity by 14-15% annually from the base, aiming to reach 10 million tonnes in the next 3-4 years. The funding for these projects will be a combination of 30% equity and the remaining through debt. JSW Infra, with Rs 6 billion in existing debt on its balance sheet, plans to raise additional debt in the coming financial year for its two major projects. Despite this, the company recently reported a robust operating performance, posting a 118% increase in net profit to Rs 2.54 billion. Maheshwari highlighted that 67% of their business comes from captive cargo and expressed confidence in the company's overall outlook, stating that the story looks pretty great.

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