Shell India, which operates one of the nation's two liquefied natural gas (LNG) import terminal, is scouting for developers to build a $500 million multi-cargo terminal adjacent to the LNG facility at Hazira in Gujarat.
"We are in the process of identifying port developers and have appointed Citibank to advise on the process," said Nitin Shukla, CEO of Hazira Group of Companies.
Shell and French firm Total are partners in Hazira LNG and Hazira Ports, the firms that operate the LNG terminal and the port, respectively. Shell holds 74 per cent stake in each and while Total holds the remaining 26 per cent.
The two firms are planning to build a two-berth container terminal and a speciality chemical berth by sub-letting. The multi-cargo terminals will be built by developers such as Dubai Port, Singapore Port Authority or P&O Ports of Australia and it will share revenues with Shell-Total.
"There will be no equity dilution in our company. The multi-cargo terminals would be build by a special purpose vehicle," Shukla said.
The container terminal would be of 3-4 million TEUs capacity, while the speciality chemical berth would be to service chemical industries in Vapi-Ankleshwar-Baroda belt in Gujarat.
The multi-cargo terminal would be completed in 3-4 years, he said but refused to identify the port developers Shell was talking to.
The company has so far invested over $700 million at Hazira, of which $225 million have gone into port infrastructure like breakwater and dredging. The rest of the investment was in building the LNG terminal.
The port infrastructure would be shared by the multi-cargo terminal.
