The Jawaharlal Nehru Port Trust will be hosting an edible oil refinery on their land after edible oil industry leaders communicated their desire to refine raw material at the biggest container port in India. The JNPT, which handles 55% of all the container traffic at India’s major ports, has an existing liquid cargo terminal to transport the raw and finished materials of the edible oil refinement process.
The Edible Oil Refinery is Expected to Increase Profits
The edible oil refinery will receive its raw material from international imports that will then be refined and mostly shipped out by tanker ships over the sea. This will increase the container port’s revenue by guaranteeing more captive cargo. Neeraj Bansal, JNPT’s acting chairman, spoke about the interest they received to install a new edible oil refinery on the port’s property. He expressed his confidence that the new project will improve their profits and prove advantageous to the container port overall.
JNPT to Sign a Long-term Lease for the Refinery
The container port’s current liquid cargo terminal that will be used to import the unrefined material and export the refined edible oil is located on the east coast of Mumbai with JNPT’s four container terminals. JNPT will benefit from this project’s captive cargo by leasing the property reserved for the edible oil refinery on a long-term plan. Sources say that the size and location of the land area allotted to the refinery have already been marked out for the project and will be six acres. However, there are investment plans in place for further expansion that will allow the JNPT’s land parcels from the adjoining Special Economic Zone to successful bidders.
Investing in the Future of Liquid Cargo and Refineries
The opportunity for the expansion of the refinery and the installation of more refineries by bidding on the allotment of the container port’s Special Economic Zone property will begin during a tender next week. JNPT expects the growth in edible oil refinement to require an increase of their liquid cargo capacity. Although out of the container port’s five terminals there is only one liquid cargo terminal for importing and exporting the refinery material, state-owned JNPT is sustaining the new growth by expanding their farm of liquid cargo tanks to an annual capacity of 4.5 million tonnes with an investment of Rs 310 crore.
—Davenport Laroche, Shipping Container Investing Firm