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c 

    
      
The move will help ease the capacity crunch at JN Port, which is operating
well beyond its designed capacity

P. Manoj

@Ê xont si ze

Bangalore: The world¶s third biggest container port operator, c 



  
 will invest about Rs250 crore to buy equipment and expand
capacity at its container handling xacility at Jawaharlal Nehru Port, or JN Port, in
Navi Mumbai.Ê

^ e are buying 13 new cranes and also paving 18 hectares ox backup land that will
boost capacity at the terminal by another 500,000 twenty-xoot equivalent units
(TEUs) by the xirst quarter ox next year,´ Arvind Bhatnagar, chiex executive oxxicer
at [  
      told  . A TEU is an industry measure ox
cargo containers.

Gateway Terminals is 74% owned by APM Terminals, the container terminal


operating unit ox Danish shipping and oil conglomerate AP Moeller-Maersk AS.
State-run rail hauler ox containers, Container Corp. ox India Ltd, or Concor, holds
the remaining 26%.

Bulk transport: A cargo handling terminal


at Jawaharlal Nehru Port in Navi Mumbai,
the largest container port in India. Ashesh
Shah / Mint

The new equipment includes two cranes


currently being built at China¶s Shanghai
Zhenhua Port Machinery Co. Ltd, or ZPMC,
and another 11 being built at Sweden¶s Kalmar Industries AB.

The container xacility currently has 37 cranes that are used to lixt containers. Some
ox the new cranes will be able to lixt two containers at the same time. ^This will
improve our productivity signixicantly,´ Bhatnagar said.

Gateway Terminals started operations in May 2006 at its 1.3 million TEU-capacity a
year terminal. The xirm won the rights to develop and operate the new terminal xor
30 years starting 2006 through competitive bidding. The new xacility handled 1.29
million TEUs²its designed capacity²in the 12 months to March 2008. The new
equipment and yard space will help the company boost capacity to manage 1.8
million TEUs.

The logistic xirm¶s expansion will help the port expand at a time when it is xacing an
acute capacity crunch. India¶s biggest container port, handling some 60% ox the
container cargo ox about 7 million TEUs a year managed at all the ports in the
country, is operating well beyond its designed capacity.

The port¶s plan to raise capacity is delayed axter it xailed to xinalize a contract
recently to deepen its channel to allow bigger ships to call. The expansion also
depends on the proposed dedicated railway xreight corridor linking Mumbai with
northern India.

Container cargo at the state-owned port grew 23% to 4.06 million TEUs in the 12
months to March. Its three container handling xacilities are designed to handle only
3.6 million TEUs.

Besides Gateway Terminals, the other two container xacilities are run separately by
the India arm ox DP orld Ltd and the port authorities themselves.

^There is a big demand xor capacity creation at JN Port. And, it¶s not easy to bridge
the gap between demand and supply. So, what is required is innovative ideas and
out-ox-the-box thinking,´ Bhatnagar said.

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