The Board of trustees of the Jawaharlal Nehru Port Trust on 26 September 2011 decided to award the contract for its fourth container terminal to the consortium of Singapore's PSA and the ABG group in India. The project to cost around Rs 6,700 crore will be the single largest foreign direct investment in the Indian port sector.
The terminal with a designed capacity to handle 4.8 million TEUs annually, on completion will more than double the JN port's capacity. The new terminal, with a berth length of 2km, will be able to accommodate seven ships at a time, compared with 2-3 at other terminals in India. The JN port already has three terminals — two run by private parties and one by the port trust with a design to handle a total of 3.6 million TEUs a year. The port, one of the 13 major ports in the country, handled 4.27 million containers in 2010-11 nearly five per cent more than it did in 2009-10. Jawaharlal Nehru Port Trust is one of the country's 13 major Centre-owned ports.
The consortium of PSA-ABG had emerged as the highest bidder agreeing to offer 50.8 per cent of the revenue to the Government.
The port trust had set up a committee, headed by its Deputy Chairman to study the performance of ABG at Kandla. The committee has presented its report to the board, following which the contract was awarded.
At the fourth terminal at JN port, ABG will be a minority partner holding 26 per cent stake while PSA will hold the majority.
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