J N Port Authority seeks bids from private firms to develop and run an automated empty container yard

The auction aims to attract entities interested in setting up an automated empty container depot for handling, storage, repairs, maintenance, servicing and cleaning of empty ISO shipping containers to utilize the export-import (EXIM) potential of the strategically located Jawaharlal Nehru Port Authority.The land identified for the empty container yard is located near Sawarkhar Village, around 20-25 km from Navi Mumbai and about 35-40 km from Mumbai city and is some 5-6 Kms from the port operations (jetty) area.

On an average, J N Port handles 1 million twenty-foot equivalent units (TEUs) of empty containers – both impot and export – in a year, which is about 18% of the total throughput at the port.The successful bidder will have to develop an empty container yard with a facility for automated storage and retrieval of containers based on the principles of Automated Storage and Retrieval System (ASRS) in at least 25% of the land area. It has to set up a Truck Appointment System for seamless operations and to avert any traffic congestion in the premises or nearby area or road.

The private entity will be tasked with operationalizing an empty container yard in a conventional way to achieve minimum storage capacity of 25,000 TEUs in two years and expand it to 1,00,000 TEUs within five years.Simultaneously, the successful bidder has to design and develop a mechanized empty container storage system based on the principles of ASRS with a storage facility of 1,400 TEUs of empty containers….The successful bidder is also required to install gate automation and terminal operating system for real-time location mapping of containers within the yard.Jawaharlal Nehru Port Authority has set a reserve price of Rs Rs9.04 crores per annum as annual lease rent including GST for the land.The bidders are required to quote a premium over and above the reserve price set by the port authority for lease rentals per month for leasing of land.The quoted lease fee (basic amount) will escalate by 2% on 1 August of every year. The bidder quoting the highest (H1) user fee per annum will be declared the winner.The successful bidder will have the option for payment of lease rent for the entire lease period on an upfront basis.The upfront lease rent is the Net Present Value (NPV) of the total annual lease rent, determined through the auction for the lease period. The NPV is computed by cumulatively escalating the lease rent annually at 2%, and discounting annually at the applicable G-Sec rate as issued by the Reserve Bank of India.

Currently, there are 74 empty container yards located in the outskirts of J N Port. Out of 74 empty container yards, 2 are situated at Taloja and 4 at Panvel and the balance are spread over the area from GavhanPhata to Dighode, Koproli to Khopta and NH-348.Of the 74 empty container yards, 60 yards are operational with Mediterranean Shipping Company S.A running 8 yards, Pacific International Line Pte Ltd (4 yards), Wan Hai Lines India Pvt Ltd (16), Evergreen Shipping (10), Ocean Network Express Line (India) Pvt Ltd (11), Yang Ming (2), Maersk Line (5), Maersk / ZIM Line (1), Trans Asian Shipping Services (P) Ltd (2), AvanaLogistek Ltd/Avana Global FZCO (7) and HapagLlyod (6).

All the empty container yards are set up on private land ranging from 2 acres to 40 acres. Some of them have approach from the main road, but for many, the approach is through narrow roads connecting to the main road, which are not properly developed. The empty container yards do not have parking space for tractor trailers arriving at the yards.Besides, the stacking of empty containers is not done systematically and hence not easy to retrieve when required. As a result, the tractor trailers arriving for delivery / collecting the container are parked at the main roads for several hours, causing inconvenience to the trade and adding to the logistic costs..Meanwhile, the Transporters’ Associations have said that they have been facing many issues such as locating empty containers, making payments in cash, lack of facility for drivers, lack of parking area for tractor trailers arriving for collecting or delivery of the container. The operations at all the empty container yards are not uniformly designed or carried out.

“Systematic approach by the J N Port Authority and efforts to streamline the business activities of empty container yard operations will definitely lay the foundation towards good governance in the area of empty container yard operations,” JNPA wrote in the tender document.