The Port of Jawaharlal Nehru (JN Port) has introduced plans to collect up to $370 million by selling tax-free bonds.
These funds will be used for a several port development projects, according to joc.com.
Regarding this issue, L. Radhakrishnan, the Port Chairman , stated: “ The net proceeds will be primarily used for dredging works to deepen and widen the Mumbai harbour channel and JN Port’s navigational channel. These would also be used for capital expenditure for other projects, in relation to the port operations. ”
The bond offering was opened on March 11 and will be closed four days later, on March 15, reports joc.com.
Background
In August 2012 Royal Boskalis Westminster N.V. has signed a contract with port operator Jawaharlal Nehru Port Trust (JNPT) for deepening and widening the port and access channel of JN Port. The contract has a total value of approximately EUR 175 million. The dredging work has commenced in September 2012 and is expected to take two years to complete.
The expansion comprises the deepening and widening of the 33.5 kilometers’ long access channel, the port basins and turning basins. In total, approximately 67 million cubic meters of sand, silt, clay and rock will be removed.
Jawaharlal Nehru Port is the largest container port in the country with an annual handling capacity of 4.3 million TEU.
This volume represents more than 50% of the total quantity of containers that are handled by Indian ports.
By deepening the port from the current 11.5 meters to over 14 meters, it will be possible to receive larger types of container vessels and as a result, according to the port operator, the annual capacity will increase to approximately 10 million TEU.
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Dredging Today Staff, March 13, 2013