JSW Infrastructure has secured a Rs 4,119 crore contract from the Karnataka Maritime Board to develop the Keni Port in Karnataka. The greenfield port, one of two planned by the state government, is set to have an initial cargo-handling capacity of 30 million tonnes per annum (MTPA). JSW Infrastructure emerged as the winning bidder, with plans to address the logistics demand in the rapidly growing state and the region's economy. The Keni Port will be strategically located between Mormugao Port in the north and New Mangalore Port in the south, catering to various industries in the region.
JSW Infrastructure, a part of the JSW Group, emerged as the winning bidder and secured a Rs 4,119 crore contract from the Karnataka Maritime Board for the development of Keni Port in Karnataka. This greenfield port, planned by the state government, is one of the two new ports to be developed as part of the Karnataka government's mission to meet the logistics demand in the growing state and regional economy. It will initially have a cargo-handling capacity of 30 million tonnes per annum (MTPA). The Karnataka Maritime Perspective Plan indicates the state's potential cargo to increase from 44 MTPA to 117 MTPA by 2035. Initially, four companies expressed interest in the project: JSW Infrastructure, Adani Ports and SEZ (APSEZ), Navayuga Engineering, and Vishwa Samudra. However, only APSEZ and JSW Infrastructure qualified to bid, with APSEZ choosing not to participate due to ongoing projects. The Keni Port is strategically located between Mormugao Port in the north and New Mangalore Port in the south, serving industries in the region, including Bellary, Hosapete, Hubballi, Kalaburagi, and South Maharashtra. The proposed port will have modern, environment-friendly mechanized facilities capable of handling cape-size vessels. It aims to handle all types of cargoes on the west coast of the north Karnataka region. Commodities expected to be shipped through the port include coal, coking coal, steel, cement, iron ore, limestone, dolomite, and bauxite. Once the concession agreement is signed, JSW Infrastructure plans to commence work on developing Keni Port. The proposed port is set to address the rising import and export trade momentum in the region. With rail connectivity to the existing Konkan line north of the Ankola Station, the port will enhance transportation efficiency. JSW Infrastructure is India's second-largest commercial port company and is set to play a pivotal role in India's maritime and logistics landscape. The company, which went public in September, operates nine port concessions across eastern and western coasts. Its total cargo handling capacity at the end of FY23 stands at 158.4 million tonnes. The company aims to boost capacity utilization across all its ports from 64% to 80-85% in the coming years. With plans to nearly double its total cargo handling capacity to 300 MTPA, the award for building the Keni Port marks a crucial development for JSW Infrastructure for strengthening its position in the sector. JSW Infrastructure is aiming to expand its third-party business, eyeing for 40% within two years and 50% within five years, up from the current 36%. The strategic entry into container train operations, with the acquisition of Sical Multimodal and Rail Transport Ltd.'s license, reflects the company's forward-looking approach to enhance container logistics and third-party cargo operations. In conclusion, JSW Infrastructure's winning bid for Keni Port signifies a major milestone in the development of maritime infrastructure in Karnataka. The port's strategic location, advanced facilities, and the company's commitment to meeting logistics demands align with the region's economic growth trajectory. The upcoming development is poised to address cargo handling requirements, supporting industrial growth and trade in the state and neighbouring regions.
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