Chennai, July 19: The Chennai-based Chettinad group which operates four bulk carriers from the Chennai port is joining with P & O Ports of Australia to operate and manage the Chennai container terminal from December-end this year. The group will have 20 per cent equity in Chennai Container Terminal Ltd., (CCTL), the new company being promoted for this. P & O will hold 75 per cent and five per cent will go to the Mumbai-based M B Eduljee Cassinath Group.The P & O-Chettinad team had won the deal from the surface transport ministry to operate the container terminal in the Chennai port with assurance on returns to the Port Trust and annual container throughput.The formal agreement with Chennai port is expected to be signed in mid-August.
Chennai Container Terminal Ltd. will take over the existing 600 metre container terminal. Expansion work of the terminal to 950 metres is going on and by May next year the extended portion also will be under the new company.
According to M A M R Muthiah, managing director of Chettinad Cements, investment for Chennai container terminal is to made in a phased manner. It is learnt that during the next five years the promoters will invest over Rs 600 crore for bringing in latest cargo handling equipment and other infrastructure works.
The Union surface transport ministry envisages the Chennai port to be the hub port in east coast attracting mainline vessels.
But, it may take at least three years for that to happen. Even then the big vessels initially may carry only 20 per cent of the container traffic.In the first year of operation Chennai Container Terminal Ltd. plans to handle 3.5 lakh TEUS.The freightage will go up to 4 lakh in the following year and five lakh TEUs in the third year.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.