State-owned Jawaharlal Nehru Port Authority (JNPA) has picked a consortium of Trident Agrocom Exports Pvt Ltd and Man Infraconstruction Ltd for developing an export-import cum domestic agriculture commodity-based processing and storage facility at the port after the bidder quoted revenue share of 11% to the port authority. The project, estimated to cost some Rs 2.84 billion, will be constructed on a 27-acre land parcel within the port complex on a concession period of 30 years (including construction period of 1.5 years). The land parcel is free from coastal regulation zone and environmental clearance. Once operational, the facility is expected to handle about 1.2 million tonnes of cargo annually, significantly contributing to the country's agro trade by improving the processing, storage, and transportation infrastructure for agricultural commodities.

It is designed to provide comprehensive services including processing, sorting, packing, and laboratory facilities, emphasiSing the port’s commitment to ensuring compliance with food safety and trade regulations and will cater to the agricultural commodities not only of Maharashtra but also of other states such as Madhya Pradesh and Gujarat. “Being an agrarian nation, we have studied all the agro facilities in India, and we could not find under one roof all the processing of all types of agro fresh products and storage are available. So, we decided to have the first integrated facility like this in India at J N Port,” said Unmesh Wagh, Chairman, JNPA. “Everything that is required for perishable commodities will be available at this facility,” he said.

Globally, such a one stop solution for export-import requirement of agricultural commodities is available at Port of Rotterdam, Shanghai, Jebel Ali etc. J N Port handled some 10.4 million tonnes (mt) or about 14% of India’s agricultural export-import trade in FY23. A part of the agricultural commodities originating from Maharashtra are currently handled at Gujarat ports such as Hazira, Pipavav and Mundra. Inefficient logistics, multiple handling and lack of one stop facility are the key reasons for causing 7.7% of wastage (0.8 mt in volume) handled at Mumbai region.

The wastage and rejection of commodities due to multiple handling of agri commodities is about 2%. Perishable agri commodities suffer a loss of about 3% (due to subpar storage facilities).

The planned facility will address the wastage occurring in the export or import processes due to multiple handling and inefficient logistics; lower the overall logistics costs for agricultural commodities including dry grains, perishables, spices, meat, and marine products; implement certification and quality control measures to prevent cargo rejection, reduce the time taken in the logistics chain and expedite the export-import processes, provide comprehensive logistics, storage, processing, regulatory support, approvals, and quality control services in a single facility; minimize wastage caused by multiple handling of commodities and improve commodity shelf life by introducing technological interventions.

There will be a moratorium on handling minimum guaranteed cargo (MGC) and payment of revenue share for three years from the date of award of concession. The private operator will be mandated to handle 0.3 mt in the fourth year, 0.5 mt in the fifth year, 0.7 mt in the sixth year and 0.9 mt from the seventh year onwards till the end of the 30-year concession.

"This project will enhance India’s agricultural logistics capabilities and support the growth of both domestic and international agro trade. With the new facility, JNPA is playing a critical role in strengthening India’s agricultural export infrastructure,” Wagh added.