The government on Tuesday finalised a Rs3,686-crore plan to develop a mega container terminal at Chennai port and treble its handling capacity from the present 2 million TEUs (twenty feet equivalent unit) to 6 million TEUs.
The cabinet committee on infrastructure has approved a proposal to develop a 4 million TEU mega container terminal at Chennai Port, at an estimated cost of Rs3,686 crore, union minister of shipping G K Vasan said in New Delhi yesterday.
The project, to be developed on a public private partnership (PPP) model, will involve Rs3,125 crore investment by the private concessionary. Chennai port will invest the remaining Rs561 crore.
The mega terminal, to be built on `design, build, finance, operate and transfer' (DBFOT) basis, will have a concession period of 30 years.
Chennai port has two container terminals at present with a total capacity of 2 million TEUs. There port has been sharp growth in container volume in recent years. The mega container terminal is expected to meet the increasing capacity requirement at the port.
With the steady growth in container volumes, container throughput demand at Chennai Port is expected to outstrip the available capacity of 2 million (TEUs) per annum by 2017-18.