The Union Shipping Ministry has allowed PSA-Sical Terminals, the private container terminal operator at Tuticorin port, to bid for the port's second container terminal. The port trust plans to convert its Berth No.8 into a container terminal at a cost of Rs.150 crore.

The development is significant given that when the Jawaharlal Nehru Port Trust went in for a second container terminal, the private operator Nhava Sheva International Container Terminal (NSICT), operated by P&O Ports, Australia, was barred from participating in the tender.

PSA-Sical is a joint venture between Singapore-based PSA International and Chennai-based South India Corporation (Agencies) Ltd.

Project Details: The new container terminal, which is expected to be ready by end-2006, will be developed on BOT basis with a concession period of 30 years. The berth will be constructed with a 10.7 m draft, and is likely to create a capacity to handle 4.5 lakh TEUs annually. The port trust will also stipulate a minimum guaranteed traffic from the first year of operation. The terminal will start with 1.2 lakh TEUs in the first year and gradually scale up to 4.5 lakh TEUs in five years.

PSA-Sical will also be in a position to handle 4.5 lakh TEUs from 2005-06. The terminal handled 3.07 lakh TEUs in 2004-05 against 2.53 lakh TEUs in 2003-04, an increase of 21.05 per cent.

If the container traffic grows at the present rate 20 per cent, the port trust may convert Berth No.9 into a container terminal.