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, according to a press release by ADB.
NSFTPL is a special purpose vehicle jointly owned by JM 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 containerised 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.”
JMBPL is a part of JM Baxi Group, a 106-year-old marine services, ports, logistics, and technology conglomerate offering an extensive range of logistics services. CMA Terminals was established in 2012 and is engaged in the development, construction, acquisition, and operations of container terminals. LEAP is an ADB-managed fund capitalised with a $1.5 billion commitment by the Japan International Cooperation Agency.
ALCHEMPro News Desk (NB)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
