Kamarajar Port-Adani Group Rs.1,270 cr terminal to start in 1 month

Last year, the Port had planned Rs.250 crore for capex but spent about Rs.545 crore.

The Dollar Business Bureau 

The Adani Group-Kamarajar Port’s container terminal worth Rs.1,270 crore at the Port is likely to be functional in a month’s time, said a top official on Monday.

In March 2014, Kamarajar Port Ltd and Adani Group had inked a ‘concession agreement’ to establish the container terminal at a cost of Rs.1,270 crore in two phases.

After completion, the container terminal would have a capacity of handling 1.4 million TEUs (twenty foot equivalent units), with 730 metres quay length.

“It is a big achievement for us. It is the first time that Kamarajar Port Ltd is going to handle this kind of project. We expect it to be ready in a month’s time,” M A Bhaskarachar, Chairman and Managing Director of Kamarajar Port Ltd, told reporters.

He said that construction at the site had been completed, while adding that it was a part of the plan to enhance the capacity of cargo handling to 86 million tonnes at the Port.

When queried about the likely establishment of a multi-cargo terminal at the Port with the Chettinad International Bulk Terminal Pvt Ltd, he said that it was likely to start soon. The two companies had inked an agreement in March 2014 for developing a multi-cargo terminal on the basis of DBFOT (Design, Build, Finance, Operate and Transfer), with a capacity to handle 2.0 metric tonnes per anumn (MTPA).

"The construction has been finished and the terminal is likely to start shortly,” he said.

Citing the performance of the Port in the last fiscal, Bhaskarachar said it has handled a cargo of 30.2 million tonnes as on March 31, 2017 compared to 32.21 million tonnes handled in the previous fiscal.

Giving reasons for the shortfall, he said that it was due to a reduction in coal usage by Tamil Nadu Electricity Board (TNEB) compared to the previous year.

Briefing on the automobiles handled from the Port, he said that 2,27,581 units have been handled in the fiscal of 2016-17 as compared to 2,16,922 units handled in 2015-16.

“In the current financial year, we will add capacity for accommodating about 30,000 units of cars,” he added.

Replying to a question on the financial performance of the Port, he said, “Last year (2015-16) income was Rs.617 crore. This year we are yet to finalise the financial details. We expect the income to be around Rs.681 crore.”

When queried about the planned capital expenditure (capex) for 2017-18, Bhaskarachar said Rs.400 crore has been earmarked, out of which some amount would be raised via bank loans. Last year, the Port had planned Rs.250 crore for capex but spent about Rs.545 crore for setting up infrastructure, coal berths and capital dredging, he said.

The Dollar Business Bureau - May 08, 2017 12:00 IST