Hazira Port, a company promoted by Hazira Group of Companies, a subsidiary of Anglo-Dutch Shell and Total of France, is planning to make an initial investment of about Rs.1,300-1,400 crore in developing a container terminal at Hazira.

The company has decided to rope in PSA International Pte of Singapore as a sub-concession partner. PSA is joining as a partner in the project in September 2007. The company will sign heads of agreement at the Vibrant Gujarat Investors Summit on January 12.

Total initial capacity of the Hazira container terminal will be about one million containers a year with an initial investment of close to Rs 1,400 crore. The company has to start working on preparing a detailed project report (DPR) which would include details of investments, complete design of the terminal and possible timeframe within which the project would be completed. This should be submitted to the GMB in the second half of 2007.

The costs of setting up the container terminal would be slightly high at Hazira because of extreme marine conditions. The difference in the tides is as high as eight metres. Hence, additional investment would be required to make it an all weather port.

Hazira LNG Ports, another joint venture by Shell and Total, operates a liquefied natural gas terminal at Hazira with a capacity of 2.5 million tonnes a year. As per the concession agreement signed with the Gujarat government for the LNG terminal, it is mandatory for the company to construct facilities for handling non-LNG cargo. The company is currently sourcing spot LNG cargo at the terminal, but is in talks for long-term LNG cargo.

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