India’s container port Jawaharlal Nehru Port Trust has finalized the terms of external commercial borrowing in an effort to cater to the increase in traffic, according to the Indian government.
As part of the country’s port-led development programme, the port signed an agreement with State Bank of India (SBI) and Development Bank of Singapore (DBS) for external commercial borrowing in the amount of USD 400 million to improve the infrastructure as it aims to double its existing capacity to 9.85 million TEUs annually over a period of seven years.
Out of the total amount, USD 300 million would come from SBI, while the remaining amount of USD 100 million would be provided by DBS.
The ministry of shipping has already granted its approval, while the two parties are set to exchange documents today.
The project would support the additional cargo to be handled at the 4th container terminal.
In a separate announcement, the government said that the country’s Vishakhapatnam Port “is poised for major expansion” after a number of projects were inaugurated at the port.
The projects include a container freight station of 100,000 TEU capacity, a liquid cargo berth with a yearly capacity of 1.84 million tonnes, as well as a multi-cargo berth capable of handling 2.08 million tonnes per annum.