The Hindu Business Line : Decks cleared for Dubai Port to develop box terminal at Kochi

THE Kochi Port Trust has received the approval from the Union Government for the development of International Container Transhipment Terminal (ICTT) here.

The port will soon issue a letter of intent to Dubai Port International (DPI), UAE, which emerged as the successful bidder for the development of the long-awaited container terminal project, Dr Jacob Thomas, Chairman, Kochi Port Trust, said.

The Government has conveyed its formal approval to the port under section 42 (3) of the Major Port Trusts Act, 1963 for the development and operation of the terminal at Kochi on a BOT basis, he said.

Dubai Port, a global terminal operator based in Dubai, is managing a chain of modern high volume transhipment terminals in the cargo rich gulf region.

Expressing happiness in getting the approval for the project, Dr Thomas said, "we are fortunate to have an international player of proven credibility who could turn round this port into a mega hub in the Indian Ocean region".

He also stated that the entire port would work in complete harmony with DPI and support it in its endeavour to transform Kochi into a mega hub.

The Dubai company has offered a revenue share of 33.3 per cent to the port. In addition, the selected bidder must pay to the port an annual lease rental of Rs 9.6 crore for operating the existing facilities at the Rajiv Gandhi Container Terminal (RGCT) and Rs 40.8 crore for the existing equipment at RGCT.

The project would receive strong supplementary support from the Union Government for creating common user infrastructure facilities such as national highway connectivity, rail connectivity, dredging and providing of breakwaters at a total cost of Rs 932 crore.

The Deputy Chairman, Mr A. Janardhana Rao, said that the next target would be achieving rail connectivity required for the execution of the ICTT project.

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