The Union Shipping Ministry, on 31 March 2006, approved the Kandla Port Trust's project of constructing its second container terminal. Subsequently, KPT handed over the letter of intent to ABG Heavy Industries.

The proposed terminal, 585m in length, will cover 40 ha of land near the port. It will be capable of handling large and Panamax cargo vessels.

Phase I of the container terminal project is expected to cost Rs.255 crore, of which KPT will invest Rs.110 crore and ABG will bring in Rs.145 crore. Completion is scheduled for nine months.

Several state-owned oil companies have expressed interest in setting up oil handling refineries, while a few private companies may set up their own handling capacities at the proposed container terminal.

ABG will develop the container terminal on BOT basis with a revenue-sharing proportion of around 49 per cent.

Recursive Links:

Kandla Container Terminal project: ABG formally appointed (05-May-05)

Related Links:
Project profile