Government to set up mega container terminal at Chennai port
24 Feb 2011
The government plans to build a mega container terminal at Chennai, India's second busiest container port, minister of shipping G K Vasan informed the Rajya Sabha in a written reply today.
The request for proposal (RFP) bids for the project, which were originally due for opening on 9 December 2010, have been extended up to 18 April 2011 over concerns regarding environmental clearance for the project, he said.
Bidders have sought extension of the bid due date fearing that any delay in environmental clearance would push up the cost, the minister added.
The terminal is designed to handle 4 million twenty feet equivalent units (TEUs) of containers per annum, Vasan said.
He said an expert appraisal committee of the ministry of environment and forests has reconsidered the project and recommended for environmental clearance subject to addressing certain issues suggested by the committee.
Meanwhile, the central government is looking to offload more equity in the Ennore Port Ltd to help fund its expansion projects. The port has received approval from its board of directors for a public floatation of up to 10 per cent of equity, to raise approximately $110 million.
The central government currently holds 68 per cent and the Chennai Port Trust 32 per cent of Ennore Ports Ltd.
However, the port may require funds of over $176 million in the short term to undertake various infrastructure projects, reports said.
