NEW DELHI, February 6: The Ministry of Surface Transport (MoST) has awarded the Tuticorin container terminal project to PSA Corporation Ltd -- formerly known as the Port of Singapore Authority -- on build-operate-transfer (BOT) basis. The contract is the second major container project to be awarded to a private sector foreign giant.MoST sources said the deal will fetch revenue to the tune of Rs 2100 crore for the government during the concession period of 30 years. Under the terms of the contract, PSA will equip the container terminal with state-of-the-art handling equipment at a cost of over Rs 150 crore and operate it, with a throughput of 250,000 to 300,000 twenty-feet equivalent units (TEUs) in the initial years.
The Tuticorin Port Authority (TPA) has already completed civil works for the 360-metre container terminal (berth number seven). The terminal will have a captive 10-hectare backup area, with adequate rail and road links. The bids for the container terminal were invited early last year, withquite a few foreign firms such as P&O Ports Private Ltd, PSA Corporation Ltd, Hutchison, Sealand Plc and Manila-based International Container Terminal Service showing a keen interest in the project.
However, most of these firms stayed away, with P&O Ports and PSA Corporation being the only exceptions. Last year, PSA had bid for the container terminal at the JNPT but the deal was bagged by P&O Ports.
Other major projects being planned by MoST at Tuticorin Port are construction of new outer harbour at $1200 million (approximately Rs 4,600 crore), 8th cargo berth at a cost of Rs 35 crore and a barge jetty along North Breakwater at Rs 25 crore at Tuticorin. The outer harbour is expected to be on offer for private sector participation next year along with 20 other projects involving investment of $695 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
