News: Chennai port project to go to Singapore

(BS 05/09/2006) Mumbai - China's loss is Singapore's gain. With security concerns blocking the way for Chinese major Hutchison Ports Holdings (HPH), the Rs 500-crore second container terminal at Chennai Port Trust is all set to go to the Singapore government's port operator Port of Singapore Authority (PSA).

According to sources, PSA, which has bid with Chennai-based SICAL Logistics, has quoted the highest revenue share of over 45 per cent to bag the project that has already been delayed by two years.

PSA-SICAL's revenue sharing quote is the second highest for Indian port projects. The highest was 48.99 per cent by ABG Heavy Industries for the Kandla Port container terminal. PSA-SICAL has pipped the consortium led by Emirates Shipping Lines with Gammon India.

Engineering and construction major Larsen & Toubro's bid was rejected as its management contractor Hutchison failed to secure security clearance from the government. The bidding deadline for the project was extended over a dozen times due to delay in security clearance for Hutchison.

Singapore already has a presence in India at the Tuticorin Port's container terminal.

At present, Dubai Port's Chennai Container Terminal is the only private container terminal at Chennai Port Trust. PSA is the world's busiest port in terms of shipping tonnage handled, with 1.15 billion gross tonne handled in 2005.