Capacity Expansion at Jawaharlal Nehru Port Authority (JNPA)

22 Jan 2025

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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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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Designed as per recent trends of Prelims questions
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