Adani Ports in pact with French company for container terminal

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oi-Staff

By Super

Published: Saturday, July 5, 2014, 10:07 [IST]

Adani Ports & SEZ Ltd today signed a pact with France's CMA CGM Group to develop a container terminal at Mundra Port that entails an estimated investment of Rs 2,100 crore.

"This will be the 4th container terminal in Mundra capable of handling 1.3 million TEUs (twenty-foot equivalent unit) annually," Adani Ports & SEZ today said in a statement.

According to sources, total investment for setting up this terminal is estimated to be Rs 2,100 crore in 50:50 joint venture partnership.

The construction phase will be initiated immediately and completion will be in 24 months, the statement said.

The project comprises design and construction of a 650-metre terminal along with 27 hectares of back area with a water depth of 16.5 metres.

This terminal will initially have four units of 65 tonne capacity of handling 18,000 TEU vessels and Ultra Large Container Vessels.

"We are very pleased with this joint venture partnership that will help put our continued expansion at the Mundra port on an even steeper trajectory," said Gautam Adani, chairman of the Adani Group.

It will allow Adani Ports to fulfil its stated vision of handling 200 million metric tonnes of cargo well before the year 2020, the statement added.

For CMA CGM, Mundra Container Terminal is the group's first port investment in India. "With this investment, CMA CGM and Adani Ports will develop infrastructure that will play a key role for the development of the country's industry. CMA CGM has strong ambitions in India," Farid T Salem, executive officer of CMA CGM Group said.

As per the agreement, the transaction is subject to approvals from the regulators as maybe required including the Competition Commission of India and ministry of commerce and industries.

PTI