FCC

JM Baxi Ports and Logistics set to win auction at JN Port

2022-10-12

JM Baxi Ports and Logistics, a subsidiary of Mumbai-based JM Baxi Group, is expected to win the public-private-partnership (PPP) contract to operate the shallow water and coastal ports of the state-owned Jawaharlal Nehru Port Authority (JNPA).

When the pricing bids were launched on Friday, JM Baxi Ports and Logistics put the highest bid of Rs 84.4 per tonne of cargo handled at the berths, according to numerous sources, including an official at Jawaharlal Nehru Port Authority.

Port tenders at major ports (controlled by the Centre) are decided on the basis of royalty per tonne: the entity prepared to split the highest royalty per tonne of cargo handled at the berth with the port authority wins the 30-year contract.

The royalties payable will rise in lockstep with the wholesale pricing index (WPI), a cost metric. Under the new Major Port Authorities Act and the model concession agreement, the terminal operator will be able to determine market rates (MCA).

J M Baxi Ports and Logistics has won its second contract at Jawaharlal Nehru Port in recent months, and its third overall across major ports.