Business Daily from THE HINDU group of publications
Thursday, Mar 08, 2007
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Business Daily from THE HINDU group of publications Thursday, Mar 08, 2007 ePaper |
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Logistics
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Shipping PSA-Sical to operate second box terminal at Chennai port Our Bureau
What it offers Will have a quay length of 832 metres with a total handling capacity of one million TEUs once fully operational. The minimum guaranteed throughput is 1.5 lakh TEUs in the first year, 2.75 lakh TEUs in second year and above 5 lakh TEUs from third year
The consortium (Port of Singapore Authority and Sical Logistics) will operate the new terminal called Chennai International Terminal Private Ltd (CITPL) that is likely to be operational by 2008-end, according to a company official. Mr K. Suresh, Chairman, ChPT, signed the agreement on behalf of the board of trustees of the port trust, while Mr Peter Chew, Managing Director (India), PSA India Pte Ltd, represented the consortium. In the new terminal, PSA has a 60 per cent stake and the rest is held by its Indian partner Sical. The consortium would invest Rs 492 crore in the new terminal, Mr Chew told newspersons after signing the agreement.
On its part, the ChPT will invest around Rs 100 crore to reclaim land, dredging and increase the draft in the terminal to 15.5 metres from 12 metres - this will allow the terminal to handle large vessels. The port trust would provide land to CITPL from April 1. The operator will pay 45.801 per cent of the revenues to the port trust, said Mr Suresh. Chennai Container Terminal (P) Ltd, part of the Dubai-based DP World, is the other private container operator at the port. It handled 8.29 lakh TEUs (twenty foot equivalent units) in 2006, an 18.42 per cent increase in volume over 2005. Mr Suresh said the second container terminal would have a quay length of 832 metres with a total handling capacity of one million TEUs once fully operational. The minimum guaranteed throughput by Chennai International Terminal Private Ltd is 1.5 lakh TEUs in the first full year of operation; 2.75 lakh TEUs in the second year and above 5 lakh TEUs from the third year. The private operator would also bring in mainline (large) container vessels to Chennai, he said. The second terminal would bring competition between the two terminals, and help trade members get competitive rates from both operators, he said. The Chennai port in future will consider more container terminals once all the `dirty cargo' (like iron ore and coal) move out of the port. There is potential for five container terminals in Chennai, which could become a container hub on the East Coast. However, as per the agreement with PSA-Sical, the ChPT cannot bid for another container terminal for the next five years, he said.
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