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Dakshin Bharat Gateway inks concession pact with VOC Port - 2012-09-05

Dakshin Bharat Gateway Terminal Private Ltd, Mumbai, has signed a concession agreement with V.O. Chidambaranar Port Trust to convert the 8th berth into a container terminal from a general cargo berth. Dakshin is a SPV incorporated by ABG Container Handling Pvt Ltd, Mumbai. With this agreement, the port (formerly Tuticorin port) is all set to handle five lakh TEUs this year, says a press release from the Port Trust. Since, container traffic is likely to improve in the country as a whole, the Port Trust had planned to convert berth No.8 into a Container Terminal under BOT Basis for a period of 30 years.

The agreement was signed by Paul Antony, Chairman (in-charge), V.O. Chidambaranar Port Trust, and Saket Agarwal, Director of ABG Container. The port has accepted the highest gross revenue share of 55.19 per cent offered by ABG Container Handling Pvt Ltd, Mumbai. The Letter of Agreement was issued by the Port to ABG Container Handling Pvt Ltd, Mumbai last month. The project, for which the concession agreement is being signed, will be executed on a build, own and transfer basis, with a concession period of 30 years.

The estimated project cost is Rs 312.23 crore and would facilitate a capacity of 6,00,000 TEUs. The terminal will start handling containers from middle of October. The project will be completed and facilities will be fully operational within 18 months. Upon completion of this project, the port will have a capacity to handle 1 million TEUs. The EXIM traders of the hinterland, particularly Tirupur, Coimbatore, Karur and Erode belt, would benefit by the additional container terminal. The present container terminal of V.O. Chidambaranar Port is operated by PSA SICAL with a capacity of 4,17,000 TEUs. The third largest container handling port in the country has handled about 4,77,100 TEUs during the last financial year.

Source : Hindu Business Line