Gateway Terminals India Private Limited (GTI)

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In August 2004, Jawaharlal Nehru Port Trust (JNPT) entered into a license agreement with Gateway Terminals India Private Limited (GTI) to redevelop an existing bulk shipping terminal in Jawaharlal Nehru Port (in the western state of Maharashtra, south of Mumbai) into a container terminal on a BOT (build, operate and transfer) basis for a period of 30 years. GTI is a joint venture between Maersk India, a fully owned subsidiary of Danish giant AP Moller - Maersk Group, and government-owned Container Corporation of India (Concor). Maersk holds 74% stake in the joint venture, while Concor has the remaining 26%. GTI was awarded the project after an open tender based on revenue sharing and a minimum guaranteed throughput model. The other bidders were consortiums led by PSA International, CMA CGM and United Liner Agency of the JM Baxi Group. GTI had quoted the highest revenue share of 35.5%. The cost of the 1 million twenty-foot equivalent unit (TEU) project was Rs 1,000 crore (US $ 220.65 million). GTI was the third container terminal (CT) in JNP. The other two CTs built before GTI are the private Nhava Sheva International Container Terminal and the state run JNP CT, and together they handled 2.27 million TEU during the year 2003-2004. GTI was developed to ease the congestion in JNP and to meet India’s increasing export – import trade. GTI was expected to be operational by August 2006, but became operation on 5 January 2007.