A.K. Gadkari, Chief Engineer, CPT, told Projectmonitor that the terminal would come up on BOT basis under a 30-year concession agreement. The port trust intends to use the new model concession agreement for ports that would mean getting prior approval from Tariff Authority for Major Ports, Gadkari explained. Actual work on the project is expected to start only in the next two-three years. While the concessionaire would design, finance, construct and operate the terminal, Chennai Port Trust would undertake some supportive works, mainly capital dredging.
Discussing the finer details, Gadkari said that Chennai International Terminal Pvt. Ltd, a joint venture between PSA and Sical Logistics, or its associates, would not be allowed for the bid for the project. CITPL is already constructing a 1.3 million TEUs terminal at Chennai port and the move aims at forestalling a monopoly situation. CPT is also bound by a non-competing clause by which no new terminal can come up at the port within six years of signing the concession agreement with CITPL or till CITPL's container traffic volume does not reach 0.5 million TEUs, whichever is earlier. The PSA-Sical terminal is scheduled to begin operations by April 2009.
Chennai Port Trust had first proposed to set a mega container terminal in August last year. The terminal aims at handling ultra large container ships of 13,000-15,000 TEUs with length exceeding 400m. The terminal will have a continuous quay length of 2 km and a backup area of 100 hectares. Two new breakwaters together costing Rs 1,200 crore, for a total length of 4 km, will provide a basin area of 300 hectares. The basin will be dredged to 18m, with the dredged material used for creating additional backup area.
PSA-Sical terminal
Work on CITPL's new terminal is currently in full-swing. The entire land has been handed over to the concessionaire and the civil contract has already been placed on Mumbai-based ITD Cementation. On its part, CPT will spend Rs 100 crore, mainly towards deepening the draft to 15m from the current 12m. CPT officials are scheduled to meet shipping ministry officials on April 25, 2008, to get necessary approvals for the dredging activity, which will be completed much before the terminal starts operations in April next year.
In March 2007, Chennai Port Trust selected a consortium of PSA (Port of Singapore Authority) and Sical Logistics to develop the new Rs 492 crore container terminal (the port's second) on BOT basis with a concession period of 30 years. The consortium had quoted a winning revenue sharing proportion of 45.801 per cent. The PSA-Sical container terminal with a quay length of 832m will have three berths, spread over and area of 37.6 hectares. The terminal is designed to handle 0.45 million TEUs per year in phase-I, with an ultimate annual handling capacity of 1.35 million TEUs.
Chennai Port currently has one container terminal that is being operated under a 30-year concession by Chennai Container (P) Ltd, part of DP World. The terminal, which started operations in September 2000, originally belonged to P&O Ports and became part of DP World after it acquired P&O's assets worldwide.
Discussing the finer details, Gadkari said that Chennai International Terminal Pvt. Ltd, a joint venture between PSA and Sical Logistics, or its associates, would not be allowed for the bid for the project. CITPL is already constructing a 1.3 million TEUs terminal at Chennai port and the move aims at forestalling a monopoly situation. CPT is also bound by a non-competing clause by which no new terminal can come up at the port within six years of signing the concession agreement with CITPL or till CITPL's container traffic volume does not reach 0.5 million TEUs, whichever is earlier. The PSA-Sical terminal is scheduled to begin operations by April 2009.
Chennai Port Trust had first proposed to set a mega container terminal in August last year. The terminal aims at handling ultra large container ships of 13,000-15,000 TEUs with length exceeding 400m. The terminal will have a continuous quay length of 2 km and a backup area of 100 hectares. Two new breakwaters together costing Rs 1,200 crore, for a total length of 4 km, will provide a basin area of 300 hectares. The basin will be dredged to 18m, with the dredged material used for creating additional backup area.
PSA-Sical terminal
Work on CITPL's new terminal is currently in full-swing. The entire land has been handed over to the concessionaire and the civil contract has already been placed on Mumbai-based ITD Cementation. On its part, CPT will spend Rs 100 crore, mainly towards deepening the draft to 15m from the current 12m. CPT officials are scheduled to meet shipping ministry officials on April 25, 2008, to get necessary approvals for the dredging activity, which will be completed much before the terminal starts operations in April next year.
In March 2007, Chennai Port Trust selected a consortium of PSA (Port of Singapore Authority) and Sical Logistics to develop the new Rs 492 crore container terminal (the port's second) on BOT basis with a concession period of 30 years. The consortium had quoted a winning revenue sharing proportion of 45.801 per cent. The PSA-Sical container terminal with a quay length of 832m will have three berths, spread over and area of 37.6 hectares. The terminal is designed to handle 0.45 million TEUs per year in phase-I, with an ultimate annual handling capacity of 1.35 million TEUs.
Chennai Port currently has one container terminal that is being operated under a 30-year concession by Chennai Container (P) Ltd, part of DP World. The terminal, which started operations in September 2000, originally belonged to P&O Ports and became part of DP World after it acquired P&O's assets worldwide.