Malaysian firm to operate new Indian port
Malaysia's Pembinaan Redzai Sdn Bhd has won a partnership with India's MARG Constructions Ltd to set up a joint venture to run a new deep-water port at Karaikal in Puducherry.
“Pembinaan Redzai has the technology and the skill sets. So, we are bringing Pembinaan as a port operator for the Karaikal project,” said reports quoting a MARG Constructions official.
“If in the process of becoming our port operator, Pembinaan wants a stake in Karaikal port project, we are willing to look at it. This would be more for strategic reasons rather than financial reasons,” the same official added.
The Mumbai-listed infrastructure development firm (MARG Constructions) is currently building a deep-water port complex at the port of Karaikal, on the Tamil Nadu-Puducherry coast. Reports this month had said that Marg was looking for partner to run the container and cargo handling operations.
According to MARG Constructions, the two companies have signed an MOU to explore potential cooperation across the board for the Karaikal project including strategic, management and operational expertise.
Pembinaan Redzai owns some 40% of Westports Holdings Sdn Bhd which is the holding company for Westports Malaysia Sdn Bhd which runs one of two container terminals at Malaysia's Port Klang.
Chennai-based MARG Constructions last year signed a 30-year agreement with the Puducherry government to develop and operate a new port at Karaikal.
The agreement, which allows MARG Constructions to invite partners, calls for the port to be developed to handle more than 10 million metric tonnes (mt) of cargo per year.
Reports say that the first phase, costing some $105 million (416 crore) will begin operations in October 2008, with two common berths to handle coal and general cargo including containers.
The two berths have been scheduled for a maximum depth of 14 metres, which will allow ships with a cargo capacity of 60,000 tonnes to call.
Second phase development will deepen both channel and berth depth to 16 metres, allowing ships with a cargo capacity of 100,000 tonnes to call. It will also provide a dedicated berth exclusively for container handling.
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| Karaikal to eventually handle more than 10 million TEUs per year |
“If in the process of becoming our port operator, Pembinaan wants a stake in Karaikal port project, we are willing to look at it. This would be more for strategic reasons rather than financial reasons,” the same official added.
The Mumbai-listed infrastructure development firm (MARG Constructions) is currently building a deep-water port complex at the port of Karaikal, on the Tamil Nadu-Puducherry coast. Reports this month had said that Marg was looking for partner to run the container and cargo handling operations.
According to MARG Constructions, the two companies have signed an MOU to explore potential cooperation across the board for the Karaikal project including strategic, management and operational expertise.
Pembinaan Redzai owns some 40% of Westports Holdings Sdn Bhd which is the holding company for Westports Malaysia Sdn Bhd which runs one of two container terminals at Malaysia's Port Klang.
Chennai-based MARG Constructions last year signed a 30-year agreement with the Puducherry government to develop and operate a new port at Karaikal.
The agreement, which allows MARG Constructions to invite partners, calls for the port to be developed to handle more than 10 million metric tonnes (mt) of cargo per year.
Reports say that the first phase, costing some $105 million (416 crore) will begin operations in October 2008, with two common berths to handle coal and general cargo including containers.
The two berths have been scheduled for a maximum depth of 14 metres, which will allow ships with a cargo capacity of 60,000 tonnes to call.
Second phase development will deepen both channel and berth depth to 16 metres, allowing ships with a cargo capacity of 100,000 tonnes to call. It will also provide a dedicated berth exclusively for container handling.
Reports say that Pembinaan Redzai will have the freedom to set port and terminal handling tariffs without consultation or regulation.
India's government-owned ports have tariffs are set by a tariff regulator such as the Tariff Authority for Major Ports (TAMP).
Cowan Thant Zin | Fri Oct 26 07:06 GMT 2007