Sical to build Rs 550 cr iron ore terminal in Chennai

New Delhi, July 10 (UNI) Sical Logistics Ltd today announced it had bagged a Rs 550 crore order from Ennore Port Ltd, to build an iron ore terminal at Ennore port near Chennai.

The project is estimated to become operational in the financial year 2008-09.

The terminal will be developed on a Build-Operate-Transfer (BOT) contract for 30 years including the construction period. It will have a capacity of 12 million tonnes of cargo per year, expandable to 15/20 million tonnes per year.

Other facilities to be constructed as per the agreement include a jetty, ship loader, mechanised handling system with conveyor, storage and a wagon unloading system.

The project, to be implemented on a revenue sharing basis with Ennore Port, is expected to generate nearly Rs 200 crore as annual revenue.

Sical Vice Chairman Ashwin Muthiah said the Ennore terminal would provide a major boost to iron ore movement in southern India and consequently to the economy of the region.

The terminal also strengthens Sical's strategic framework of multi-modal integrated logistics, Mr Muthiah said.

Initially, the terminal will handle Panamax and Cape size vessels up to 150,000 DWT. After dredging, the terminal will be able to handle vessels of 225,000 DWT.

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