Greenfield Vadhavan Port Project – Rail Handling / Haulage Tariff Study and Financial Analysis)

Detailed Design and Detailed Engineering for Greenfield Vadhavan Port Project – Rail Handling / Haulage Tariff Study and Financial Analysis) .

The Government of India has granted in-principal approval for setting up a new Major Port at Vadhavan in Dahanu. Jawaharlal Nehru Port Trust (JNPT) has completed the Detailed Project Report (DPR) for Vadhavan Port in Dahanu Taluka, Palghar District (Maharashtra State) which needs to be updated. The Port has decided to update the DPR in line with the in-principal approval of the Government of India and go for design and Detailed Engineering including Financial structuring of the project. As part of the financial structuring work, JNPT has requested that MR Technofin prepare a financial assessment of executing railway activities under both a “non-government railway (NGR)” model and “joint venture (JV)” model and to advise on the most suitable option based on the results of the financial assessment.

• Conduct in-depth desk research on railway policies for operating container traffic under a hub and spoke model and the tariffs that are chargeable under this operating mode
• Conduct in-depth desk research on locomotive, wagon and staffing charges by Indian Railways for hauling container, fertilizer and liquid petroleum gas (LPG) traffic
• Conduct consultations with industry experts and financial advisors to determine workable financial structures under the NGR and JV models
• Based on desk research and consultations, prepare a detailed definition of the NGR and JV models (along with the advantages and disadvantages of each) which will inform the operational and financial model
• Prepare an operational model for railway activities within the port and between the port gate and interchange, separately including deriving locomotive engine operating hours, wagon usage hours, energy consumption, etc. based on container, fertilizer and LPG traffic forecasts
• Prepare two separate 35-year pro-forma financial models for railway activities within the port and outside the port gate from the perspective of the private developer/operator
• Conduct sensitivities on concession period, tariffs and costs and advise on (1) most suitable model for implementation and (2) key clauses that should be negotiated in the concession agreement between the private developer/operator and the railway Ministry.