Offers 10.17 per cent for barge-handling jetty facility

The Chennai Port Trust has managed to get an increased revenue share from Indian Molasses for its barge-handling jetty facility coming up under the public-private-partnership mode.

The company revised its revenue share to 10.17 per cent. This is almost double its original offer of 5.22 per cent, which the Port Trust rejected on the ground that it was too low, said a Port Trust source on conditions of anonymity.

Indian Molasses was the lone bidder for the Rs 26-crore project. After rejecting the company’s offer, a negotiation committee held talks with Indian Molasses seeking an increase. This committee is also negotiating with the Essar Group seeking an increase in the revenue share for the Rs 3,500-crore mega-container-terminal project, the source said.

The revised revenue share of Indian Molasses was put forth before the Port Trust’s board on Wednesday for clearance. The board approved the proposal, the source said.

The port already has a 35-m quay length barge facility, which is being used to supply bunker (furnace oil and high speed oil) to ships anchored at mid-sea. This facility handled nearly a lakh tonnes of bunker and water (for crew on board the ships at anchorage) last year.

Under the project, the private player will develop, design, engineer, finance, construct, operate, maintain and market the facility to potential customers. The company will be offered 150 m of quay length for 30 years.

The facility will come up in the Bharathi Dock.

(This article was published on January 31, 2013)
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