Indian port builder JSW Infrastructure has signed an agreement with the government of Karnataka state in southwest India to build a $480m deepwater port.

JSW will develop Keni Port as a public-private partnership, Indian magazine The Week reports.

The deepwater facility will handle up to 30 million tonnes of cargo a year, including exports from the north Karnataka region. This capacity will be increased to 56 million tonnes if demand warrants it.

According to the Karnataka Maritime Perspective Plan, the state has a present hinterland potential of 44 million tonnes, but this is expected to increase to 117 million by 2035.

Much of the port’s traffic will be coal and coke for the region’s steel, cement, and power plants. It will also handle iron ore and limestone and will export finished steel products.

The port will be deep enough to handle Capesize vessels, classed as those too large to pass through the Panama Canal.

JSW Infrastructure is part of $23bn-turnover JSW group, which is owned by billionaire industrialist Sajjan Jindal.

It describes itself as the second largest commercial port operator in India in terms of cargo handling capacity. This presently stands at 153 million tonnes a year.