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Raja Simhan T.E

Security clearance is expected this week

Chennai , Aug. 16

The Chennai Port Trust (ChPT) expects to hand over the letter of intent (LI) for the second container terminal to the BOT (build, operate and transfer) operator by December.

The Central Government is likely to give its final security clearance during this week, according to ChPT sources. The Government gave its `in-principle' approval to develop the second container terminal last year. It is yet to give security clearance to one of the bidders, Hutchison Port Holdings.

The Hong Kong-based Hutchison has partnered Larsen & Toubro for building the second container terminal. The other two consortium bidders — Port of Singapore Authority/Sical and Emirates Trading Agency/Gammon India — have got security clearance.

In the next few days the port trust should open the price bid and take it up with its board. Once the bidder is finalised and approved by the Centre, the formalities of finalising the memorandum of understanding, signing of the agreement and payment of upfront fee (of about Rs 18 crore) by the BOT operator will take place, the source said.

Cargo Handling

In the Rs 491.76 crore project, the ChPT will contribute around Rs 100 crore and the remaining amount is to be brought in by the BOT operator.

The Port Trust has also obtained the Coastal Regulation Zone clearance from the Ministry of Environment and Forest for the first stage reclamation work to create an additional open storage area. The Rs 10-crore project will serve as a back up area for the second container terminal, the source said.

Meanwhile, a ChPT press release says that the Union Shipping Ministry has fixed the Chennai port, which is in its 125th year, a target of 52.2 million tonnes for cargo handling for the current fiscal year. As on date, the port has handled 19.50 million tonnes of cargo, the release said.

Projections

The operating income for the current fiscal is projected to be Rs 502.89 crore compared with Rs 431.69 crore in the previous year. The increase is due to projected rise in throughput by 4.95 million tonnes. During the current year, the port handled new cargoes such as yellow peas and wheat. It expects to handle more wheat consignments — about 1.38 lakh tonnes — in the rest of the financial year. Also, for the first time in the country, glasses were exported (by Saint Gobain) in break bulk form, says the release.

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