Ennore Port Container Terminal Project to cost Rs 1407 Crores

There has been a robust growth in the global sea borne containerized trade which has grown at a rate of 11.43% for the last 5 years. In Indian context Compound Annual Growth Rate (CAGR) of container cargo has been 16.10%. The need for capacity augmentation in Indian Ports for handling containerized cargo has thus assumed significance. In this scenario, development of a world class container terminal at Ennore Port in Tamil Nadu as part of the National Maritime Development Programme is an important step towards capacity augmentation in Southern Indian Ports.

The proposed container terminal project at Ennore Port has world class features. It has a continuous quay length of 1000 metres and will have an area of 5 lakh sq.mts. for the terminal. The terminal will have the alongside depth of 16m. The container terminal at Ennore Port will be designed so as to accommodate container vessels of 14,500 TEUs. The project is estimated to cost Rs.1407 crores.

The container terminal at Ennore Port is being developed through Public Private Partnership on BOT basis under a concession agreement with a concession period of 30 years. The development of the terminal, its operation, maintenance etc. would be done by a Concessionaire who would be selected through global competitive bidding process. Revenue share offered by eligible bidders is the criteria for selection of the Concessionaire. The concession agreement to be signed between by the Port and the selected Concessionaire will be based on the model and the guidelines given by the Government of India in this regard.

The commercial operationalisation of the project is expected to happen in 36 months from the date of award of concession. It is expected that the project would become operational by 2012-2013. After commissioning of this project, a long pending demand of trade and industry in the region would get fulfilled.

Source : Equity Bulls

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