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P&O Ports consortium bags Chennai terminal project

Our Bureau

MUMBAI, Aug. 9

A CONSORTIUM led by P&O Ports has won the 30-year concession to privatise and develop the Chennai Container Terminal, the second biggest container port in India accounting for roughly 15 per cent of total container volumes.

``The concession agreement, which was signed today, provides for the modernisation of the current terminal operations and the development of Chennai as a major hub port,'' an official statement from the port developer said here today.

While the entire investment projected is $170 million, investment over the first five years is estimated at $100 million. ``A further $70 million is expected to be invested following the handover of an adjacent iron ore berth,'' the statement said.

The Chennai Container Terminal currently handles about 3,85,000 TEUs annually and has seen an average annual growth over the past five years of roughly 15 per cent. The capacity of the terminal following completion of quayline extension will be about 1.3 million TEUs, expected to touch 2 million TEUs by the later stages of the project, the statement said.

The partners of the winning consortium are P&O Ports, holding 75 per cent, the Chettinad Group with 20 per cent and the MBEC Group with 5 per cent.