The Union government on 30 March 2005 accorded an
`in-principle' approval for the development of a second container terminal at
Chennai port on BOT basis.
The estimated cost of the project would be
Rs.491.76 crore, of which Chennai port will contribute around Rs.100 crore and
the remaining amount is to be brought in by the BOT operator.
The second terminal would be an alternative to
the private terminal operated by Chennai Container Terminal Ltd -- part of
P&O Ports India -- which has faced frequent labour problems in the
last few months.
P&O Ports India, which has invested $100
million in the existing container terminal, is reportedly facing problems in
evacuation of containers out of the port.