In a significant boost to its port infrastructure portfolio, JSW Infrastructure has received a Letter of Award (LoA) from the Syama Prasad Mookerjee Port Trust (SMP Kolkata) to develop and operate two container berths at Netaji Subhas Dock in Kolkata. The project, envisaged under the public-private partnership (PPP) model, is set to involve an investment outlay of Rs 740 crore, marking JSW Infra’s deeper foray into the east coast container cargo business.
Key project details
Under the agreement, JSW Infra will:
- Develop two container berths at Netaji Subhas Dock
- Operate and maintain the facilities for a 30-year concession period
- Enhance the handling capacity by 0.6 million TEUs annually, providing a major uplift to container trade in eastern India
- Deploy state-of-the-art cranes and container handling systems to improve turnaround times and cargo efficiency
| Project Snapshot | Details |
|---|---|
| Location | Netaji Subhas Dock, Kolkata Port |
| Scope | Development and O&M of two container berths |
| Concession Period | 30 years |
| Investment | Rs 740 crore |
| Additional Capacity | 0.6 million TEUs per annum |
Strategic significance of the Kolkata project
JSW Infra’s entry into the Kolkata port ecosystem aligns with its strategic plan to build container handling capabilities across Indian ports. The eastern coast has remained relatively underdeveloped compared to the west coast, and this project is expected to:
- Improve EXIM competitiveness of industries in Bengal, Assam, North East, and neighbouring landlocked countries like Nepal and Bhutan
- Facilitate direct shipping connections with Southeast Asia and East Asia
- Reduce congestion at other east coast ports due to Kolkata port’s shallow draft limitations being partly addressed through modern berth design and operational improvements
JSW Infra’s growing port footprint
JSW Infrastructure, India’s second-largest commercial port operator, currently operates ports at:
- Jaigarh (Maharashtra) – Gateway for JSW Steel Dolvi
- Dharamtar (Maharashtra)
- Paradeep (Odisha) – Bulk cargo terminal
- Mangalore (Karnataka) – Iron ore and coal terminals
- Ennore (Tamil Nadu) – Recent expansion in container business
The Kolkata berth development is expected to further cement JSW Infra’s position as a national multi-cargo operator, diversifying from bulk to container business for robust growth.
Sector experts’ view
Industry analysts believe the development of container capacity at Kolkata port is vital because:
- Eastern India’s trade is rising: The region remains dependent on west coast ports for container exports due to limited east coast infrastructure.
- Bangladesh and BIMSTEC trade boost: Kolkata’s strategic location makes it a natural gateway for trade with Bangladesh, Myanmar, Thailand, and ASEAN nations under BIMSTEC agreements.
- Decongestion of road networks: Enhanced port capacity is expected to optimise supply chains and reduce logistics costs for industries in West Bengal and beyond.
Recent investments by JSW Infra
| Project | Location | Investment (Rs crore) | Focus |
|---|---|---|---|
| Ennore container terminal expansion | Tamil Nadu | 820 | Container handling |
| Paradip iron ore terminal upgrade | Odisha | 620 | Bulk cargo |
| Jaigarh port expansion | Maharashtra | 1,200 | Multi-cargo and LNG terminal |
| Kolkata container berths | West Bengal | 740 | Container trade |
With the Kolkata port project, JSW Infra’s total committed investments over the past three years now exceed Rs 4,000 crore, showcasing its aggressive growth strategy in Indian ports.
Market reaction
Shares of JSW Infrastructure gained 2.8% intraday on the BSE following the announcement, reflecting investor confidence in the company’s execution track record and diversified revenue streams through containerisation initiatives.
Future outlook for JSW Infra
The company aims to:
- Expand total cargo handling capacity to 250 million tonnes per annum by FY27
- Achieve a balanced portfolio between bulk and container segments to reduce cyclicality
- Participate in upcoming PPP bids at Visakhapatnam, Haldia, and Dhamra ports
Conclusion
JSW Infrastructure’s latest win at Kolkata port signifies a pivotal step towards strengthening India’s east coast maritime infrastructure. As containerisation continues to drive port profitability globally, JSW Infra’s strategic investments are set to unlock new trade opportunities, integrate regional supply chains, and contribute to its ambitious national port expansion roadmap.
Disclaimer: This article is for informational purposes only. Investments in securities and infrastructure sectors are subject to market and regulatory risks. Readers are advised to consult certified financial or industry experts before taking business or investment decisions.
