The Port of Singapore Authority (PSA) today said the Rs 8,000-crore fourth terminal project at JNPT is on schedule, and the first terminal will be part- commissioned by end of this year with 1 million TEU capacity.
"We will be commencing operations by the end of December this year for the first phase. Initially, we will have a capacity of 1 million TEU (standard container units)," PSA India's managing director Mike Formoso told reporters.
Formoso said there is a staggered plan for the commissioning of the first phase which includes adding more capacity in 2018 and 2019 by putting more cranes alone the one kilometre long berth.
He, however, declined to immediately specify the investments which have gone in till now or would be made till the inauguration.
He said once the first phase is over, the second phase, which is like a replica of the phase one with similar berth length and number of cranes, will be constructed.
The second phase is slated to be completed by 2021, and once completed, it will double the overall capacity of the country's largest container port through the addition of the 4.8 million TEU capacity, he said.
PSA won the concession to build the terminal in mid-2014 by promising to share a part with 35.7 per cent of the revenues as royalty to the Government, which will own the facility.
Formoso said over 500 metres of the berth length construction has been completed and a few of the cranes have already been installed. Apart from that, a rail link has also been established which will aid cargo movement.
He exuded confidence that the PSA, which entered India in 1999 and runs port terminals at Tuticorin, Chennai and Kolkata, will be able to get traffic for its new facility.
Formoso said in fiscal 2015-16 and 2016-17, the overall container movement in the country increased by 15 per cent each year, but the volumes handled at JNPT have been stable.
"Volumes which should have otherwise come to JNPT are going to other ports because of lack of capacity at JNPT," he said, adding that this factor makes PSA confident.
However, PSA pitched for a relook at the tariff-setting mechanism which will be governing prices paid by consignees with Formoso saying it puts it at a disadvantage vis-a-vis competition.
He, however, added that this is a problem faced by all the major ports and the industry will have to come together for the same.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)