MMTC Limited, the country’s leading international trading company, today inked the formal Shareholders’ Agreement with Sical Logistics Ltd, India’s leading provider of integrated multi-modal logistics solutions and L&T Infrastructure Development Projects Ltd. The consortium comprises of the above three companies who have joined hands and pooled their resources and skills for setting up a permanent iron ore loading terminal project at Ennore Port. MMTC will hold equity 26% stake in Sical Iron Ore Terminals Ltd (SIOT), the special purpose vehicle (SPV) building the 12 mn MTPA iron ore terminal and Sical will hold 63% stake. The balance 11% stake will be held by L&T Infrastructure.
The Shareholders’ Agreement was signed on behalf of the respective companies by Sical’s Chairman, Ashwin C Muthiah, MMTC’s Director (Marketing), Sunir Khurana and L&T IDPL’s Head – Legal & Secretarial, R Chandrasekaran.
The terminal is expected to be operational in a phased manner by early 2010, with a throughput of 6 million MTPA in phase 1. SIOT and MMTC have signed the offtake agreement for 3 mn MTPA of iron ore for the first phase, which will be enhanced post the capacity addition in Phase 2 of operations. The company will execute the second phase within 2 years of commencement of operations of Phase I.
On the signing of the agreement, Ashwin C Muthiah, Chairman, Sical Logistics said, “We are pleased to partner with MMTC on our greenfield iron ore terminal project at Ennore Port. Both Sical and MMTC share a common vision of driving growth through investments in trade-related infrastructure in the country. We are confident that the upcoming terminal will greatly benefit the industry by enhancing capacity and reducing lead times in reaching international markets, with innovative and efficient logistics solutions. We look forward to a mutually beneficial and long lasting partnership in the years to come.”
Mr. Sanjiv Batra, Chairman & Managing Director of MMTC said, “MMTC is delighted to be associated with a premier logistics player like Sical, known for its world class logistics infrastructure and services. With this agreement we will be able to leverage our shared expertise in international trade and logistics for a fresh, more customer-centric approach. The terminal will not only facilitate our global trade of iron ore but also enhance our access to new markets.”
The total project cost is estimated to be Rs 5 bn- Rs.3.9 bn in Phase I is and Rs.1.1 bn in Phase II. Sical achieved the Rs 3.4 bn financial closure in March 08 with a syndication of leading banks.
Sical established SIOT in 2006 to build India’s largest iron ore terminal at Ennore on a build-operate-transfer (BOT) contract of 30 years. The terminal will offer state-of- the- art infrastructure and facilities including elaborate rail siding and a large stock pile capacity. Initially, the terminal will handle Panamax and Cape size vessels up to 150,000 MT DWT; after dredging, the terminal will be able to handle vessels of 250,000 MT DWT. The contracts for the implementation of the project have already been awarded and construction is progressing as per schedule.
About Sical Logistics
Sical Logistics Ltd is India’s leading provider of integrated solutions for multimodal bulk and containerized logistics and offshore logistics, annually handling more than 26 million tonnes of bulk cargo and 500,000 TEUs of containerized cargo.
About MMTC Limited
MMTC is a Government Company and is India’s leading international trading company, with an annual turnover of around United States Dollars $ Six (6) billion. Minerals, Precious Metals, Metals, Fertilizers, Coal & Hydrocarbons, Agro Products, are the main segments of its business portfolio.
