The Hindu Business Line : Box terminal: Hazira Port, PSA in talks for executing project

Features
The container port would be built, owned and operated by PSA.
To cost approximately Rs 1,400 crore-1,500 crore.
PSA's first move to build and operate a container terminal on its own.
The container terminal would be the first in South Gujarat.

New Delhi May 9 Having tied up with the Singapore-based global port operator PSA International for a container terminal, Hazira Private Port Ltd (HPPL) is now negotiating an agreement for the project implementation with the former. They are also jointly developing a detailed project report for submission to the Gujarat Maritime Board (GMB).

HPPL is 74 per cent-owned by Shell Gas BV (Shell) and 26 per cent owned by Total Gaz Electricité (Total).

HPPL had signed a heads of agreement with a subsidiary of PSA for development of a one million 20-foot equivalent unit per annum (teupa) container port in January this year.

Concession agreement

"The development of a container terminal is part of Hazira's concession agreement. The container port would be built, owned and operated by PSA, which would pay HPPL for use of the port," sources told Business Line. Currently, HPPL has built and is operating Hazira (Surat) Port pursuant to the concession agreement between the company, GMB and the State Government.

In accordance with the provisions of the concession agreement, HPPL has identified PSA to develop this container terminal at Hazira Port that is estimated to cost approximately Rs 1,400-Rs 1,500 crore, sources said. PSA is a wholly owned subsidiary of PSA International Pte Ltd of Singapore, which operates 20 ports in 11 countries.

PSA ventures

The two have inked this agreement for the development by PSA of a two-berth container terminal at the Hazira port. Though this would not be the PSA's first container terminal venture in India, this could turnout to be the company's first move to build and operate a container terminal on its own. The company has got two other projects - Tuticorin Container Terminal and Chennai Container Terminal - in both of which it has partnered with SICAL.

The proposed container terminal would be the first in South Gujarat and would provide industries in the region a gateway for imports and exports. The container terminal would also shorten distances to the northern India market and provide relief to congestion in the Mumbai area terminals, sources added.

Some of the existing major container terminals along the western coast of the country are located at Mumbai, Pipavav, Mundra, Kandla, Hazira, and Jawaharlal Nehru port. They have capacities ranging from one million TEUs to 3.5 million TEUs per annum.