Sical to convert iron ore port terminals for other cargoes

Coffee baron V G Siddhartha-backed logistics provider invested in Ennore, Mangalore terminals

Coffee baron V G Siddhartha-backed logistics provider Sical said that the ban on the export of iron ore has impacted its iron ore terminal at Ennore. The terminal, though was complete in all respects, however could not commence its commercial operations. The company invested around Rs 540 crore on this project.

Addressing the shareholders of the company recent, company's elected Chairman R Ram Mohan said that the iron ore terminal at Ennore is complete in all respects, however it could not commence its commercial operations due to the ban on export of iron ore in the country.

He added that the investment of around Rs 540 crore in this subsidiary is yet to yield any financial returns. Apart from this, an amount of Rs 4 crore per month is required to service the principal, interest and other expenses.

To make the investment productive, the company has approached the management of Kamarajar Port at Ennore to let the terminal handle coal for TNEB units. "The Port Board has in-principle considered the proposal favourably and the company now awaits final approval from the ministry," said the company's chairman, adding that once the terminal is put to use it would support the company's growth plans.

The company is also facing similar issues at the Mangalore Port where it has invested in an iron ore handling facility. To complete the project, the company has approached the port authorities seeking its permission to handle multiple cargoes.

Speaking at the Tuticorin Container Terminal, he said, the container terminal at Tuticorin set up in association with PSA, has been improving its performance but has been impacted due to a pending resolution of policy issues relating to the tariff and royalty.

On new projects, he said, the company's rail division was planning a railway terminal at Bangalore and Chennai which are in progress and the company is consolidating the land parcel at these locations and obtaining inter-ministerial committee approvals.

On the performance, he said 2013-14 was yet another year of consolidation. Consolidated revenues stood at Rs 842 crore, up 10.6 per cent compared to last year when it reported Rs 761 crore revenue.

Coffee Day Group acquired Sical in September, 2011 and expanded their scope in logistics business. Sical Logistics Ltd is an integrated logistics solution provider for bulk and containerised cargo.