ABG Heavy bags Kandla port terminal mandate

Infrastructure major ABG Heavy Industries has bagged the mandate to operate a box container terminal at the Kandla Port trust (KPT).

ABG emerged as the highest bidder for the project by offering a 48.997 per cent share of the gross revenue to the trust.

The terminal will be operated on a built, operate and transfer basis. The other bidders for the project were Gamon India and Afcons Infrastructure.

The board of trustees of KPT had approved ABG's proposal to operate the terminal last Thursday.

Afcons Infrastructure with ULA consortium and Gammon India had offered to share revenue of 33.390 per cent and 16.974 per cent, respectively.

The 11th and 12th cargo berth of the port, which will be operated as a container terminal, will have a drought of 12.5 metre and will have the capacity to handle 5 lakh twenty feet equivalent units (TEUs) when it is fully operational.

"The new project will be cost effective. I feel the box terminal project with private participation will help bring efficiency," said a KPT official.

According to the official, the government will invest Rs 110 crore in the terminal while the private operator will pump in Rs 155 crore.

The first round of bidding for the box terminal took place seven years back when it was proposed to develop the other 9 and 10 number berths.

The terminal was planned to be set up at berth numbers 11 and 12 with a designed draft of 13.5 metre, supported by an operational area of 40 hectares of land around the berths.

It has been realised that the future growth of container traffic needs to be tapped for sustained growth of the port in addition to improving upon its core activities of bulk, break bulk and liquid cargo handling.

ABG Heavy Industries has already entered into a management agreement with Voltri Terminals, which at present runs a terminal at Genoa in Italy.