The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) signed a $131 million loan to upgrade the Jawaharlal Nehru Port Container Terminal located in Navi Mumbai Maharashtra to enhance international trade in India through efficient, transparent, and state-of-the-art logistics infrastructure.
The financing package comprises $61.4 million from ADB’s ordinary capital resources and $69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP) administered by ADB. The funds will be used to upgrade existing berths and yards and install additional energy efficient equipment such as electric quay cranes. These upgrades will expand the terminal’s container handling capacity and attract vessels operating on important international shipping lanes.
NSFTPL is a special purpose vehicle jointly owned by J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.
“Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region’s recovery from COVID-19 and its ongoing prosperity, “ said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerized cargo terminal operations.”
“We are absolutely delighted to sign the Financing Agreement with ADB, which is the largest loan agreement signed by us so far, and we appreciate ADB’s commitment and agility in bringing this deal to a smooth closure in record time,” said NSFTPL Board member and JMBPL Managing Director Dhruv Kotak. “Nhava Sheva Freeport Terminal is a key terminal for the country and this deal underscores India’s potential in becoming a $10 trillion economy by 2035. We are proud to have ADB support us in our endeavor to make international trade seamless, and this partnership is a testimony of our shared value system of the highest level of governance, transparency, and compliance” he added.
JMBPL is a part of J M Baxi Group, a 106-year-old marine services, ports, logistics and technology conglomerate offering the entire range of logistics services including port facilities such as container and multi-cargo port terminals, container freight stations and inland container depots, niche logistics services for project and bulk cargo, offshore installations and ship agency services. CMA Terminals was established in 2012 and is engaged in the development, construction, acquisition, and operations of container terminals. It is wholly owned by CMA Terminals Holding, a subsidiary of the CMA CGM Group, a global player in sea, land, air, and logistics solutions.
LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, LEAP focuses on delivering high-quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing members.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source: Asian Development Bank