Capacity Expansion at Jawaharlal Nehru Port Authority (JNPA)

January 22, 2025

GS Paper III Indian Economy

Capacity Expansion at Jawaharlal Nehru Port Authority (JNPA)

JNPA in Mumbai is set to surpass 10 million TEUs (twenty-foot equivalent units) by 2027, aiming to become India’s first port among top global ports.

Key Highlights of JNPA Expansion

Record Container Handling in 2024: Handled 7.05 million TEUs, the highest ever, operating at more than 90% capacity.Achieved an annual growth of 11% year-on-year.

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Twenty-foot equivalent units (TEU)

A TEU is an industry benchmark, which is a measure of volume in units of twenty-foot long containers.
Large ships are able to typically transport more than 18,000 TEUs in a single trip.

Budget of Expansion: Union Minister of Ports, Shipping and Waterways launched projects worth ₹2,000 crore to enhance capacity and efficiency at the port.
Capacity Enhancement Projects:Phase II of Bharat Mumbai Container Terminal: Will add 2.4 million TEUs to JNPA’s capacity.
- Nhava Sheva Freeport Terminal Upgrade (2025): Expected to further boost capacity.
- Projected Capacity by 2027: Container handling capacity to reach 10.4 million TEUs.
New Infrastructure and Equipment: Launched one solar-powered boat, two indigenously developed 70T tugs, and three fire tenders to enhance safety and efficiency.

About JNP

Location: Situated in Navi Mumbai, Maharashtra.
Premier Container Port: Handles approximately 50% of India’s total containerized cargo volume.
Operational Timeline: Commissioned in 1989, it has evolved from a bulk cargo terminal to the premier container port in the country.
Part of Landlord Port Model: It has become the first major port of the country to become a 100% Landlord port.
Global Ranking: Ranked 26th among the top 100 global ports (Lloyds List Top 100 Ports 2021 Report).
Vessel Handling Capacity: Currently handles vessels with 9,000 TEU capacity.
- Post-upgradation, capable of handling vessels with 12,200 TEU capacity.

Significance of JNPA Expansion

Strengthens India’s global trade position.
Boosts port efficiency and capacity to handle growing demand.
Enhances infrastructure for agro-processing, warehousing, and public-private collaborations.

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Landlord Port Model

Definition: A port model where the publicly governed port authority functions as a regulatory body and landlord, while private companies manage port operations, primarily cargo handling.
The Landlord Port Model was introduced in India in 2020 under the Major Port Authorities Act, 2021, which replaced the Major Port Trusts Act, 1963.
This reform aimed to modernize India’s port governance by promoting public-private partnerships (PPP) and enabling private participation in port operations while the government retained ownership of port infrastructure.
Ownership and Operations:
- The port authority retains ownership of the port infrastructure.
- Private entities lease the port infrastructure and provide, maintain, and operate their own superstructure and equipment.
Revenue Sharing: Private companies pay the port authority a share of their revenue as per the leasing agreement.

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