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Our Bureau

The project involves developing a new container terminal at the modernised East quay and South quay.

MR T.R. BAALU

Chennai , Nov. 6

PSA-Sical, a joint venture between PSA Singapore and the Chennai-based Sical Logistics, received a letter of intent to develop the Rs 492-crore second container terminal at Chennai port. Mr T.R. Baalu, Union Minister for Shipping, Road Transport and Highways, gave the letter to PSA-Sical officials at a press meet.

The consortium that operates the Tuticorin Container Terminal will develop the new terminal on build, operate and transfer model. It would take two years to fully develop the greenfield project, but the company would be able to handle containers in a year's time, he told newspersons.

Project funding

The company would pay 45.801 per cent as its revenue share for the project to the Chennai Port Trust. A memorandum of understanding between PSA-Sical and the port trust would be signed in a couple of months after payment of upfront fee to the port trust, according to a company official. The port trust will contribute around Rs 100 crore for the project towards dredging and reclaiming land; the rest of the funds would be brought in by PSA-Sical.

Handling capacity

The project involves developing a new container terminal at the modernised East quay and South quay. Chennai Container Terminal, the existing private terminal, achieved a record throughput of 7,00,107 twenty foot equivalent units (TEUs) for the calendar year 2005.

Once the second terminal comes up, the port can handle an additional 1 lakh TEUs in the first year and 6 lakh TEUs within five years of operation.

Mr Baalu said a study would be undertaken to develop an elevated expressway to Maduravoyal from Chennai port along the River Cooum at a cost of Rs 1,050 crore.

Celebrating 125 years

The Chennai Port Trust will celebrate 125 years of starting commercial operations. The week-long celebration will begin on January 17, and will feature conferences and exhibitions. Each port trust employee would receive a 5-gm gold coin, the Minister said.

Further, the port trust plans to provide quality drinking water as a welfare measure through reverse osmosis plant at a cost of Rs 25 lakh.

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