DP World has proposed forming a joint venture (JV) with the Jawaharlal Nehru Port Authority (JNPA) to continue operating the Nhava Sheva International Container Terminal (NSICT) beyond the expiry of its existing 30-year concession in 2028. The proposal comes as the port authority prepares to consider the terminal’s future amid questions over whether a fresh global tender is legally necessary.
Under the proposed model, JNPA would retain ownership of the port infrastructure while partnering with a private operator through a long-term joint venture. The arrangement would allow the operator to invest in terminal upgrades and technology, with performance assessed against agreed key performance indicators. DP World argues that such partnerships could provide greater certainty for long-term investment than fixed-term concessions followed by competitive bidding.
However, port industry experts and officials have raised concerns about the legal and commercial implications of granting a private operator indefinite rights over a public port facility. They argue that the existing concession agreement does not permit an extension beyond its stipulated term without a fresh tender, making the proposed arrangement potentially contentious.
NSICT, India’s first privately operated container terminal, was originally awarded to P&O Ports in 1997 and commissioned in 1999. DP World acquired the facility through its takeover of P&O Ports in 2006. The terminal has a design capacity of approximately 1.2 million TEUs annually and handles container cargo at one of India’s busiest ports.
A separate option under discussion is the use of a Right of First Refusal (ROFR) clause, which would allow the existing operator to match the highest bid in a new tender. However, experts have questioned whether such a provision can be introduced when it was not included in the original concession agreement.
The debate also concerns the revenue JNPA could earn from the terminal. A competitive tender could attract multiple operators and help the port authority secure market-based royalty payments. Industry sources argue that the terminal’s established cargo base could make it attractive to prospective bidders.
DP World’s proposal comes amid broader discussions on port-sector investment models and the need to balance private-sector investment incentives with transparent allocation of public infrastructure. The final decision will determine how NSICT is operated after its current concession expires and could influence the approach taken for other port terminals approaching the end of their concession periods.