Posted on April 9, 2025
The Jawaharlal Nehru Port Authority (JNPA) and Nhava Sheva International Container Terminal (NSICT), operated by DP World, a UAE government entity, finalized a settlement on April 05, 2025, resolving a tariff dispute that began in 2005, according to Business Standard.
NSICT manages a container terminal at JNPA under a concession agreement. The dispute originated in 2005 when NSICT was prohibited from recovering royalty payments to the port authority as a cost item in its service rates, prompting the company to file claims totaling approximately Rs 2,653 crore against JNPA.
After arbitration and conciliation processes, the parties agreed on a settlement of Rs 705 crore, to be adjusted through volume-based royalty discounts over the remaining term of the concession.
The settlement’s details are still being finalized. It will involve NSICT committing to additional cargo volumes, enabling eligibility for discounts once specific volume thresholds are met. Prior to the dispute, cargo volumes had dropped to less than half their previous levels. The agreement is expected to increase cargo throughput, allowing NSICT to recover part of its claims through discounts tied to enhanced traffic. A
JNPA statement noted: “This settlement structure protects JNPA’s revenue while requiring NSICT to increase future volumes to claim volume-based discounts, making it a win-win solution for both parties. This is expected to significantly boost traffic at JNPA, generating higher revenues for the port from vessel-related charges, berth hire, and royalties.”
In 1997, JNPA granted a 30-year terminal concession to DP World, with NSICT established as its Special Purpose Vehicle (SPV), marking India’s first public-private partnership (PPP) in the port sector. In the financial year 2024-25 (FY25), NSICT handled 1.2 million twelve-foot equivalent units (TEUs), reflecting a 6.7 percent increase year-on-year, contributing 15.54 percent to JNPA’s total cargo traffic.
JNPA’s six container terminals collectively managed over 7.3 million TEUs in FY25, the highest annual volume in the port’s history. The Bharat Mumbai Container Terminal (BMCT), operated by Bharat Mumbai Container Terminals Pvt. Ltd., a subsidiary of the Port of Singapore Authority, processed 2.3 million TEUs, accounting for 31.1 percent of JNPA’s total container cargo.
The Jawaharlal Nehru Port Authority, located in Mumbai, India, is a major port authority overseeing the operations of Jawaharlal Nehru Port, one of the country’s busiest container ports. Established under the Major Port Trusts Act, it manages six container terminals and facilitates significant trade volumes, handling over 7.3 million TEUs in FY25.
DP World is a global port and logistics company headquartered in Dubai, United Arab Emirates, owned by the UAE government. It operates terminals and logistics facilities across multiple continents, managing container handling, warehousing, and supply chain services. In India, DP World operates the Nhava Sheva International Container Terminal (NSICT) at JNPA under a 30-year concession agreement signed in 1997.
Nhava Sheva International Container Terminal is a container terminal at Jawaharlal Nehru Port, operated by DP World through a Special Purpose Vehicle established for the purpose. Formed as part of a 30-year concession agreement with JNPA in 1997, NSICT handles container cargo, processing 1.2 million TEUs in FY25, which accounts for 15.54 percent of JNPA’s total traffic. The terminal has been central to a 20-year tariff dispute with JNPA, resolved in 2025 with a Rs 705 crore settlement.
