Baalu issues LOI to PSA-SICAL for II Container Terminal

Chennai, Nov 6 (UNI) Union Minister of Shipping, Road Transport and Highways T R Baalu today issued a Letter of Intent (LOI) for the constructioon of a Second Container Terminal in Chennai Port.

Talking to newspersons here, after handing over the LOI to the private sector PSA-SICAL Consortium, he said the terminal would be developed at a cost of about Rs 492 crore under the Build Operate and Transfer (BOT) basis.

The LOI would be operational under a 30-year lincence, he said, adding PSA-SICAL would commence the work for the development of the terminal soon after signing a Memorandum of Understanding (MoU) with the Port.

Though it would take two years for developing the terminal, it would be ready for operations in the first year itself, Mr Baalu said and dismissed a suggestion as ''ill-conceived'' that the handing over the development of the terminal to a private party, amounted to port privatisation.

''The Congress led UPA government at the Centre has recognised the fact that privatisation has come to stay. We are not trying to privatise the entire port, but only a terminal,'' he said allaying apprehensions on privatisation.

Port sources said the second terminal would provide an alternative to the existing terminal and enhance the services standard.

The terminal was expected to handle one lakh twenty-foot equivalent units (TEUs) in the second year, which would reach six lakh TEUs in the seventh year, the sources said.

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