August 28, 2008

Chennai Port invites bids for box terminal project

Chennai Port Trust has invited bids to develop its latest mega box terminal project that is projected to handle 4 million TEUs a year and was announced in August 2007. The final day for submission of requests for qualification is June 16th 2008, after which it will invite requests for proposals.

Chennai Port also announced plans for one of the proposed breakwaters at the new mega box terminal to be utilized as a deep drafted oil berth for handling very large crude carriers.

The estimated the cost of the mega box terminal is expected at USD 750 to USD 760 million and will be developed on a build operate transfer basis under a 30 year concession. Construction work would start in the next 2 to 3 years. The winning developer will design, finance, construct and operate the new facility while the CPT will handle the supportive works.

Officials at Chennai Port said that the project is in line with its long held plans for Chennai to become the container hub of the Indian east coast. Plans for an along side depth of 18 meters would rank the new terminal as among the world's deepest, while the proposed capacity to handle 4 million TEUs per year would make it India's single largest box facility.

Mr AK Gadkari chief engineer at Chennai Port said that Chennai International Terminal, the JV between PSA and Sical will not be allowed to bid for the project.

Chennai's current box facility, DP World run Chennai Container Terminal Private Limited handled 885,000 TEUs during 2006-07 up by 20.5% YoY.