Announcement of World Bank Supporting Construction of Seven Hundred Twenty-Two Million Dollar Port in India on March 15, 1984

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 84/47 Contact: P.B. Sison March 15, 1984 (202) 477-3573 WORLD BANK SUPPORTS CONSTRUCTION OF $722 MILLION PORT IN INDIA Severe congestion in the important port of Bombay in western India will be relieved with the construction of a satellite port in the nearby area of Nhava Sheva. The new port is expected to move 250,000 containers and 3.7 million tons of bulk cargo annually by 1993. The World Bank is extending a loan of 8250 million for the $722 million complex. The project includes the construction of a 680-meter wharf to handle containers and a 500-meter wharf to service bulk materials. Plant and equipment for container and bulk cargo operations will be provided. A service berth measuring 200 meters, access channels, roads, storage buildings, and offices will be built. A container freight station, road and railway sidings, and housing for port personnel will also be constructed. Comprehensive training on port operations will be given to staff. The transport sector is a vital link in the growth of the Indian economy. Over 50 percent of the country's foreign trade, which totaled 69 million tons of cargo in 1982/83, is channeled through the ports of Bombay, Calcutta and Madras. Bombay is the most important industrial, commercial, and financial center. Its port currently handles about 17 million tons of cargo a year. In recent times it has experienced over 90 percent berth occupancy, while a 70 percent rate is considered to be the reasonable norm. Ships wait an average of 40 days to be unloaded. The Bombay port, built in the early 1900s, was not designed to handle today's large-size ships and bulk or containerized cargo. It was improved in 1956 and 1962 but further expansion is no longer possible. NOTE: Money figures are expressed in U.S. dollar equivalents. - 2 - The Nhava Sheva Port, to be located across the Bombay Harbor from the existing port, will accomodate ships up to 70,000 dead weight tons. It will have adequate land for staging and operating areas, and easy access to road and rail transport facilities. The new facility will help reduce port traffic congestion and improve access to and within Bombay. Air pollution in Bombay is also expected to decrease as a result of the dispersal of port facilities. The Bombay Port Trust will provide a loan of $205 million for the project. Cofinancing of about $80 million is being arranged, while the remainder of the cost ($187 million) will be borne by the government. The World Bank loan is for 20 years including five years' grace, at an annual interest rate linked to the cost of Bank borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan.