Reliance plans $1.3b investment for Rewas Port makeover

The Reliance group-owned Rewas Port is ready for a mega makeover.

The group has drawn up a US$1.3 billion investment plan to convert the minor port – only a few nautical miles away from Jawaharlal Nehru Port (JNPT) and Mumbai Port – into one of the leading ports in the country.

In the first phase 10 berths will be commissioned – four for container handling, two for coal and one each for general cargo, car carriers, cement/clinker and chemicals and POL (petroleum, oil and lubricants).

The first phase is expected to be commissioned by 2010-end. The port is expected to spur cargo movements to and from the two mega special economic zones being set up by the group.

According to the plan, Rewas Port will have a capacity to handle 2.6 million TEUs in the first phase. The port will have a total handling capacity of 55 million tonnes, which is expected to be increased gradually to a mammoth 457 tonnes by 2040. The total number of berths is also estimated to go up to 70 by 2040.

Since Reliance group doesn't have the expertise in operating port/terminals, especially container terminals and dry-cargo berths, it may look at inviting strategic partners at a later stage. Reliance currently operates Jamnagar Port that handles crude imports and exports of petroleum products.

The group is also planning to invite global bids for dredging Rewas Port to accommodate bigger ships and achieve economies of scale. Reliance will spend around $40 million for dredging, which is expected to start by early 2008. The plan is to have 14.5m depth in the initial phase and gradually increase it to 20m in phases.

The port is being modelled along the Port of Rotterdam. It will implement the ship-to-shop concept with Reliance Logistics for managing the supply chain.

Rewas Port, bought by Reliance from Amma Lines last year, has a 50-year licence from Maharashtra government to build and operate the port. Reliance group companies own 65 percent of the port, Maharashtra Maritime Board 11 percent, and the initial promoters – Amma Lines – the balance 24 percent.

A double-line rail connectivity from the port to Pen and four-lane road connectivity will be in place before the first phase gets operational. The port will have a large back-up area and logistics parks to support its operations.