The JOURNAL of COMMERCE ONLINE
CHENNAI -- Three consortia have submitted bids to develop and operate a second container terminal at the Port of Chennai in southern India.
The six companies in these consortia are PSA Corp., Hutchison Port Holdings and Indian companies.
The new container terminal is expected to cost 4.9 billion rupees ($107 million), of which Chennai port will invest 1 billion rupees.
The Indian government decided to develop a second terminal after labor trouble and congestion dogged P&O Ports-operated Chennai Container Terminal last year. Users are hoping competition will bring them better service and perhaps lower handling charges.
Container traffic at Chennai rose 14 percent to 616,000 TEUs in fiscal 2005 ended March 31. Traffic is projected to top 1 million TEUs by 2010.
Separately, the central government has given approval to the western Indian Port of Jawaharlal Nehru to conduct a feasibility study for the proposed fifth container terminal project. The fifth box terminal will increase the port's container handling capacity to 7 million TEUs a year from more than 2 million TEUs now with two terminals.
Nehru is expected to register throughput of more than 2.5 million TEUs in fiscal 2006, which should increase by over 1.3 million TEUs once the third container terminal commences operations by the middle of next year.
A feasibility study is being conducted for development of a fourth container terminal, which would have annual capacity of 1.5 million TEUs.