The Hindu Business Line : Karwar to have privately operated box terminal

Private venture
The terminal is being promoted by Vikram Integrated Logistics Private Ltd
The total cost is estimated at Rs 20 crore for development of the terminal infrastructure.

Bangalore , May 16

The West Coast is expected to see a third privately operated container terminal by July in the minor port of Karwar, Karnataka.

This would be the first privately operated Container Freight Station in a minor port in the South. The terminal is being promoted by Vikram Integrated Logistics Private Ltd. At present, Mundra Port and Port Pipavav in Gujarat are privately operated. Mundra is operated by the Adani group and in Pipava, international shipping major Maersk is a 47 per cent stakeholder.

Captain R. Ramkumar, President, Vikram Logistics, told Business Line that the promoters have invested Rs 10 crore for developing the facilities in Karwar. "When fully operational we will be in a position to move about 30,000 containers per year." The total cost is estimated at Rs 20 crore for development of the terminal infrastructure and is funded through a 70:30 debt equity mix.

Container charges

This facility, he said would take the load off the Mangalore, Kochi and Chennai ports. Karnataka moves about 1,50,000 containers. Besides, the container handling charges in Karwar would be substantially lower than that any of the major ports in the vicinity since, all the facilities, including stevedoring would be operated by the company itself. Kochi currently charges about $800 for container shipment to Europe.

Vikram Logistics has leased the berthing rights, land and shed from the Karnataka Government for 20 years. But Capt. Ramkumar said the company has the option to extend the period. At present, the lease rental for the facility has been worked out to Rs 3 lakh per year. The company also has the provision for expanding the facility, if the State Government allows it to do so, he said.

Satellite facility

The terminal would initially function as a satellite facility for the Jawaharlal Nehru Port Trust (JNPT) in Maharashtra. The containers would be moved to JNPT for transhipment to mainline vessels for onward carriage. For the transhipment the company has entered into a five-year time charter arrangement with Kin-Ship Services Private Ltd. The time charter rate is estimated at $4,000 per day for the 166 TEU (twenty foot equivalent units) feeder vessel M V Kerstin.

The vessel, Capt. Ramkumar said would be equipped with 30 reefer plugs. This would allow movement of refrigerated containers. Reefer containers are used for movement of perishable goods. As the container throughput improves, he said the company plans to acquire one more container vessel and link up directly with transhipment points in Colombo or Dubai.