NewsOrders & DealsJSW Infrastructure Expands Global Footprint with $419 Million Port Investment in OmanJSW Infrastructure Expands Global Footprint with $419 Million Port Investment in Oman
JSW Infrastructure's subsidiary, JSW Overseas FZE, is acquiring a 51% stake in South Minerals Port Company SAOC in Oman. The $419 million project will develop a 27 MTPA capacity port in Dhofar Governorate, with operations expected to start in 2029. This strategic move aligns with JSW's goal to expand its cargo handling capacity to 400 MTPA by 2030 and supports Oman's economic diversification efforts. The port will primarily facilitate bulk mineral exports, including limestone, gypsum, and dolomite.
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JSW Infrastructure Limited , India's second-largest private commercial port operator, has announced a significant expansion of its global operations through a strategic collaboration in Oman. The company's wholly-owned step-down subsidiary, JSW Overseas FZE, has entered into an agreement to acquire a 51% stake in South Minerals Port Company SAOC (Port SPV), a newly incorporated entity established by Minerals Development Oman (MDO).
Key Details of the Agreement
- Investment: The total project capex is set at $419 million.
- Capacity: The Port SPV will develop and operate a 27 Million Tonnes Per Annum (MTPA) capacity port.
- Timeline: Construction is expected to span 36 months, with commercial operations targeted to commence in the first half of 2029.
- Ownership Structure: JSW Overseas FZE will hold 51% equity, while MDO will retain 49%.
Strategic Significance
This collaboration marks a significant milestone in JSW Infrastructure's global expansion strategy and aligns with Oman's Vision 2040, which aims to diversify the country's economy beyond hydrocarbons.
Sajjan Jindal, Chairman of JSW Group, emphasized the importance of this partnership, stating, "This strategic investment will lay the foundation for deeper trade connectivity and economic cooperation. Together, we aim to build world-class assets that strengthen our long-term partnership and set a new benchmark for regional growth."
Operational and Economic Impact
The new port facility will be strategically located in the Dhofar Governorate of Oman, leveraging the country's position on key global maritime routes. It is expected to serve as a vital gateway for bulk mineral exports from MDO's concessions, particularly catering to the export of limestone, gypsum, and dolomite—critical inputs for India's steel and cement industries.
Rinkesh Roy, CEO & Joint Managing Director of JSW Infrastructure, highlighted the alignment with the company's strategic vision, saying, "It reinforces our strategic vision to scale operations while maintaining operational excellence and sustainable growth."
Future Outlook
This investment is a crucial step towards JSW Infrastructure's ambitious goal of expanding its cargo handling capacity from the current 177 MTPA to 400 MTPA by 2030. The project not only enhances JSW's global presence but also strengthens India-Oman economic ties, potentially opening new avenues for trade and cooperation in the region.
Financial and Regulatory Aspects
The transaction is subject to customary conditions precedent and regulatory approvals from relevant Omani authorities. The deal structure involves JSW Overseas FZE subscribing to new shares and acquiring one existing share from MDO's nominee shareholder.
| Aspect | Detail |
|---|---|
| Total Project Cost | $419 Million |
| JSW's Stake | 51% |
| Port Capacity | 27 MTPA |
| Expected COD | First half of 2029 |
| Regulatory Approvals | Required from Omani authorities |
Historical Stock Returns for JSW Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | -0.41% | -5.16% | -12.32% | -17.85% | +71.17% |
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