ASIA

New container terminal for ABG

14 years ago

ABG Container Handling Private Ltd, a unit of Mumbai based infrastructure company ABG Infralogistics Ltd, has won a contract to build and operate a new container terminal at VO Chidambaranar port in Tamil Nadu.

ABG has won a contract to develop a container loading facility at Chidambaranar port

Port contracts at union government controlled ports like Chidambaranar, are given on the basis of revenue share – the bidder willing to share the most from annual revenue wins the contract which usually spans 30 years. In this case, ABG estimated a revenue share of 55.19%. The company’s bid won them the contract over the only other bidder, John Keells Holdings Plc who quoted 7% less with a 48% share.

The price bid which was approved by the board of the formerly Tuticorin port, means ABG will be in direct competition with its Singapore partner PSA International Pte Ltd – a terminal operator at the port since 1999.

Away from the Chidambaranar port, ABG has been bidding with PSA for container terminal contracts in India. Last year saw the two companies win a container terminal at Jawaharlal port.

ABG will invest over US$5.6m (RS 312.23m) to develop the container loading facility. The terminal will be capable of loading 600,000 standards containers a year and will be equipped with 12 modern cranes to load and unload containers.