JSW Infra to buy majority holding of PNP Port from SP Group

JSW Infrastructure, India’s second largest commercial port company and part of $23 billion JSW Group, has signed a share purchase agreement through its subsidiary JSW Dharamtar Port, with SP Port Maintenance (a Shapoorji Pallonji Group Company) to acquire majority shareholding of PNP Maritime Services (PNP Port), an operating port company located at Shahbaj, Raigad district, Maharashtra.

The port, which is about 20 nautical miles from Mumbai anchorage, has been acquired at an enterprise value of around Rs 700 crore with a current capacity of five million tonnes per annum (MTPA) and potential to expand to 19MTPA, says a release from JSW Infra.

"This acquisition is part of JSW Infrastructure’s strategic direction to explore opportunities to expand organically and inorganically, to provide end-to-end logistics services near the cargo consumption/generation centres. PNP port is expected to strengthen JSW Infrastructure’s position to provide hub & spoke model services to customers, thereby saving substantially in the logistics costs. JSW Infrastructure intends to upgrade the PNP Port facilities and expand its capacity to 19 MTPA in a phased manner. The acquisition furthers its vision to increase the use of waterways and the existing railway facility at PNP adds synergies to the last mile connectivity."

PNP Port has a strategic locational advantage on the West Coast of India with direct access to large cargo centres such as Mumbai, Pune, Mumbai, Palghar, Thane, Pune, Solapur, Bhiwandi and Nasik. PNP Port is connected with the Central & Konkan Railway network, which is a very important cargo evacuation mode. With the well-connected railway system, the port will be able to service customers for container, liquid and bulk cargo in future, the release added.