JSW Infra. to Invest Rs. 2,359 Cr. to Increase Port Capacity
JSW Infrastructure Ltd., part of the JSW Group, has approved a total CapEx of Rs. 2,359 crore for the expansion of its Jaigarh and Dharamtar ports in Maharashtra. This information was conveyed via JSW Infra.’s stock filing dated 9th September 2024.
Collective Capacity Expansion by 36 MMTPA at Both Ports
JSW Infrastructure’s investment will be directed towards increasing port capacity* collectively by 36 Million Metric Tonne Per Annum (MMTPA) at Jaigarh and Dharamtar ports. Out of this, 21 MMTPA port capacity will be increased at Dharamtar and 15 MMTPA capacity will be increased at Jaigarh. Post expansion, Dharamtar, and Jaigarh’s port capacity will be 55 MMTPA and 70 MMTPA respectively.
JSW Infrastructure added that post completion of this expansion, total cargo handling volume at both ports is expected to increase by 27 MMTPA**.
*Port capacity refers to the maximum cargo throughput which can be handled by a port over a time period.
**This refers to the anticipated volume of cargo to be handled at the ports over a period of time.
Scope of Work in JSW Infra.’s Expansion at Jaigarh & Dharamtar Ports
As per JSW Infrastructure’s stock filing, this expansion will include “…new berths and additional infrastructure, such as railway siding for Jaigarh Port, to boost third-party cargo movement”. Associated civil, mechanical, and electrical works will be executed at the ports. Expansion at Jaigarh and Dharamtar ports is expected to be completed by March 2027.
As for the rationale behind this expansion, JSW Infrastructure mentioned that it targets catering to the increased cargo volume of its ‘anchor customer’, namely JSW Steel Ltd. This increased cargo volume has been attributed to JSW Steel’s ongoing 5 MMTPA expansion of its Dolvi plant, which is slated for completion by September 2027.
Step Towards Target of 400 MMTPA Port Capacity by FY-30
JSW Infrastructure’s expansion of Jaigarh and Dharmatar ports is a step towards realising the company’s target of achieving 258 MMTPA port capacity by FY-27 and further 400 MMTPA by FY-30. Currently, JSW’s port capacity sits at about 170 MMTPA, which is constituted by a total of ten ports.
Expansion by 88 MMTPA Planned by FY-27
Including the aforementioned expansion at Jaigarh and Dharmatar ports, JSW Infrastructure expects to add about 88 MMTPA of port capacity till FY-27. This includes approved expansion plans to increase 4.5 MMTPA port capacity through addition of liquid berths at Jawaharlal Nehru Port (JNPT), 7 MMTPA capacity addition at V.O Chidambarana Port, 6.5 MMTPA addition at Goa, construction of 2 MMTPA LPG terminal at Jaigarh port, and addition of 1.8 MMTPA container handling capacity at New Mangalore port. Apart from this, JSW is considering establishment of a 30 MMTPA greenfield port in Jatadhar, Odisha. Currently, this project is being reviewed by JSW Infra.
Greenfield Port at Keni, Other Potential Port Projects
JSW Infrastructure has approved the development of a greenfield 30 MMTPA port in Keni, Karnataka. Other than this, JSW Infrastructure has a pipeline of ‘potential projects’ which can add 112 MMTPA of port capacity to JSW Infra.’s portfolio. These additions would take JSW Infra.’s port capacity to about 400 MMTPA, considering that the company achieves its FY-27 port capacity addition target.
JSW Infra.’s annual report for FY-24 elaborates, “Company’s long-term vision is to build a large and efficient pan-India logistics network to provide last-mile connectivity solutions to its customers”.
