Sical Logistics Ltd has received letter of acceptance (LoA) from the New Mangalore Port Trust (NMPT) for setting up an iron ore handling facility at the deep draft multi-purpose berth.
The concession agreement was signed on October 19 between the Board of Trustees of NMPT and Sical Iron Ore Terminal (Mangalore) Ltd, a special purpose vehicle of Sical.
The company would invest around Rs 277 crore and operate the facility on a 30-year BOT basis. It would share 37 per cent of the revenues, according to sources.
The facility, likely to go on stream by 2012-13, will have a total capacity of around 6.62 million tonne per annum.
The new-mechanised berth can handle vessels from 85,000 DWT to 100,000 DWT. The port currently handles the cargo at Berth number 8 with a capacity of 7.5 million tonne.
The minimum guarantee (for cargo) would be 25 per cent in the first year, 30 per cent in the second year, 35 per cent in the third year and 40 per cent from the fourth year.
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It may be recalled that in February the company had tied up with MMTC Ltd to set up an iron ore terminal at Ennore port for around Rs 500 crore. The two joint venture partners have floated a new company — Sical Iron Ore Terminals Ltd — for the project.
Sical would become the largest private player to handle iron ore in the East Coast when the two facilites go on stream.