BPCL to Operate New Liquid Terminal at JN Port on an Interim Basis

State-run oil refiner Bharat Petroleum Corporation Ltd (BPCL) is set to take charge of a new liquid cargo berth adjacent to its existing facility at Jawaharlal Nehru Port (JN Port) on an "interim" basis. This move comes as the port authority awaits security clearance for bidders from the Union government to finalize the tender for selecting an operator.

BPCL, among the seven bidders, has submitted price bids to equip, operate, and maintain the new liquid cargo berths 3 and 4 at JN Port, located near Mumbai. The security clearance for Aegis Logistics Ltd, one of the bidders, has been delayed, prompting the port authority to avoid idling the new berths until an operator is finalized.

To address this, BPCL has agreed to invest around Rs 2.5 crores in a pipeline to start the new facility and operate it until the successful bidder is selected. The interim arrangement is expected to last for at least 6-8 months, allowing the successful bidder, if chosen in the next few days, to comply with conditions precedent, sign the concession agreement, and achieve financial closure.

BPCL will operate the new berths under the same terms and conditions as the liquid berths 1 and 2, which it is currently managing. The port official mentioned that BPCL is projected to recover the investment in the pipeline within 1-2 months, even if another entity wins the tender.

The new berths, designed to handle up to 90,000 tons of liquid cargo with a draft of 15 meters, will ease pressure on the existing liquid cargo berths 1 and 2 run by BPCL. The existing berths are operating at over 90 percent capacity utilization, handling liquefied petroleum gas (LPG) and chemicals like ammonia.

The port authority's investment of Rs 92.52 crores in the additional liquid cargo berths is aimed at accommodating the growing demand for liquid cargo at JN Port. The bid for the 30-year contract will add 4.5 million tonnes of petroleum, oil, and lubricants (POL), edible oils, chemicals, molasses, and other liquid bulk capacity at JN Port. The successful bidder will be chosen based on the highest royalty quoted on each ton of cargo handled at the berths, to be shared with the port authority.

ET