"We have invited expression of interest for constructing a container terminal and have got response from leading players like Al Jubail Port of Dubai and Ashok Leyland-Maersk combine," Captain R Ravikumar, chairman of New Mangalore Port Trust told reporters here.

At present New Mangalore Port, which heavily depends on Mangalore Refineries and Petrochemicals Ltd and Kudremukh Iron Ore Company for traffic has only a negligible share in container traffic.

The port expects to handle 2000 twenty feet equivalent units (teus) in the current year.

Mr Ravikumar said the port was giving heavy discounts to attract container ships because of the low volumes.

The port had appointed Howe India to do a feasibility study on setting up a container terminal, he said. According to the study, the port would have to set up a container terminal with a minimum capacity of 2.5 lakh teus to breakeven.

Mr Ravikumar said with the association of a major player, the port would be able to develop into a transhipment hub for containers on the lines of Colombo and Singapore.

The port has also invited expression of interest for setting up a second bulk cement handling and storage facility, the chairman said.

Mr Ravikumar said though Gujarat Ambuja Cements has shown interest in developing such a facility, Larsen and Toubro, which operates a three lakh tonne bulk cement handling facility at the Port, has raised some objection in allowing a competitor to set up similar facilities.

The port which handled 17.6 million tonnes of traffic in 1999-2000 compared to 14.21 million tonnes in the previous year, is also setting up two more oil berths to cater to the increased capacity of MRPL. MRPL, which accounts for about 44 per cent of New Mangalore Port's total traffic, had recently increased its refining capacity from three million tonnes to nine million tonnes.