JSW Infrastructure has formalized a Share Purchase Agreement with SP Port Maintenance, marking the acquisition of a significant majority stake in PNP Maritime Services.
JSW Infrastructure, a prominent commercial port company and a key player in the US$ 23 billion JSW Group, has entered into a Share Purchase Agreement through its subsidiary, JSW Dharamatar Port, to acquire a majority shareholding of PNP Maritime Services (PNP Port) from SP Port Maintenance, a Shapoorji Pallonji Group Company. PNP Port is a fully operational port situated in Shahbaj, Raigad district, Maharashtra, approximately 20 nautical miles from Mumbai Anchorage. The enterprise value of this acquisition is estimated at around Rs 700 crores, with the current capacity standing at 5 million tonnes per annum (MTPA) and potential expansion to 19 MTPA.
This strategic move aligns with JSW Infrastructure’s vision to expand both organically and inorganically, aiming to provide comprehensive logistics services in proximity to cargo consumption and generation centers. The acquisition of PNP Port enhances JSW Infrastructure’s capabilities to offer Hub & Spoke model services, resulting in significant savings in logistics costs. The company plans to upgrade PNP Port facilities and incrementally increase its capacity from the current 5 MTPA to 19 MTPA. This acquisition is in line with the broader goal of increasing waterway usage, and the existing railway facility at PNP Port complements last-mile connectivity efforts.
PNP Port, with its strategic location, is set to become a crucial asset for JSW Infrastructure. It positions the company to serve an expanding base of third-party customers in India and capitalize on synergies with existing ports and terminals. The acquisition aligns with the Government of India’s Maritime Vision, emphasizing cargo movement through the Rail-Sea-Rail route and coastal cargo initiatives. The development of port-based industries at PNP Port will be a key focus, offering services for diverse cargo types, including bulk, container, and liquid cargo.
PNP Port, currently operational and well-connected with road and rail facilities, serves various industries in Maharashtra, Madhya Pradesh, Karnataka, and beyond. Its strategic location on the West Coast of India provides direct access to major cargo centers such as Mumbai, Pune, Palghar, Thane, Solapur, Bhiwandi, Nasik, and more. The port is integrated with the Central & Konkan Railway network, a vital mode for cargo evacuation. With robust road connectivity, including the Mumbai-Goa Highway, and a well-established railway system, PNP Port is poised to cater to customer needs for container, liquid, and bulk cargo in the future.