The VO Chidambaranar Port at Tuticorin on Tuesday signed a concession agreement with Dakshin Bharat Gateway Terminal Private Ltd to set up a container terminal at a cost of around Rs 312.23 crore.
Dakshin Bharat Gateway is a special purpose vehicle incorporated by ABG Container Handling Pvt Ltd, Mumbai.
The port has planned to convert berth No. 8 into a container terminal on a build, own & transfer (BOT) basis for a period of 30 years, in view of the growth in container traffic across the country, a release stated. The agreement was signed by Paul Antony, chairman, VO Chidambaranar Port Trust, and Saket Agarwal, director, ABG Container Handling Pvt Ltd.
The port has accepted the highest gross revenue share of 55.19 per cent offered by ABG Container Handling. A letter of agreement was issued by the port to ABG on August 7.
The project would facilitate a capacity of 600,000 TEUs (twenty foot equivalent unit). The terminal would start handling containers from mid-October, 2012. The project and the facilities would be fully operational in 18 months.
Upon completion, the port will have a capacity to handle 1 million TEUs. Exim traders of the hinterland, particularly Tirupur, Coimbatore, Karur and Erode, would benefit.
The present container terminal of the port is being operated by PSA Sical with a capacity of 4,17,000 TEUs. The third largest container handling port in the country handled about 4,77,100 TEUs last fiscal.