The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) have signed a US$131 million loan to upgrade the Jawaharlal Nehru Port Container Terminal in Navi Mumbai Maharashtra.
The financing package comprises US$61.4 million from ADB’s ordinary capital resources and US$69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP). Established in 2016, LEAP is an ADB-managed fund capitalized with a US$1.5 billion commitment from the Japan International Cooperation Agency.
The funds will be used to upgrade existing berths and yards and install additional energy-efficient equipment such as electric quay cranes. The improvements will expand the terminal’s container handling capacity and attract vessels operating on important international shipping lanes.
NSFTPL is a special purpose vehicle jointly owned by JM Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.
“Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region’s recovery from Covid-19 and its ongoing prosperity,” says Ashok Lavasa, ADB’s vice-president for private sector operations and public–private partnerships. “Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerized cargo terminal operations.”
NSFTPL board member and JMBPL managing director Dhruv Kotak said that Nhava Sheva Freeport Terminal is a key terminal for the country, and the deal underscores India’s potential for becoming a US$10 trillion economy by 2035.
JMBPL is a part of J M Baxi Group, a 106-year-old marine services, ports, logistics and technology conglomerate offering the entire range of logistics services including port facilities such as container and multi-cargo port terminals, container freight stations and inland container depots, niche logistics services for project and bulk cargo, offshore installations and ship agency services.
CMA Terminals was established in 2012 and is engaged in the development, construction, acquisition, and operations of container terminals. It is wholly owned by CMA Terminals Holding, a subsidiary of the Marseilles-headquartered CMA CGM Group, a global player in sea, land, air, and logistics solutions.