A consortium comprising of India's Lanco Group of Companies and Malaysia's Pembinaan Redzai has secured a US$2 billion deal to develop the Vizhinjam International Transhipment Terminal Port in India, Business Times reported.
Last month, the Kerala state government issued a letter of intent to Lanco, and the license agreement for the project is expected to be signed next month.
In a statement, Lanco said the license agreement will be signed between the Kerala state government and the Special Purpose Company (SPC) to be incorporated by the Lanco-Pembinaan Redzai consortium members.
The Kerala state government will hold a 24 percent equity stake in the SPC, while the balance equity will be held by the consortium.
Lanco said the port project was awarded to the consortium after the Indian government formally granted the security clearance to the consortium earlier last month.
The Vizhinjam port project involves the development of an international container transhipment port. The port was put on tender by the Kerala state government in August last year.
The project is envisaged to be developed in four phases, with an ultimate capacity of 6.5 million TEUs.
Lanco said the project has distinct advantages of being a transhipment hub, given its 15 metre to 18 metre natural draft and proximity to international sea routes.
Commercial operations at Phase 1 are expected to commence by the end of 2012.
CargonewsAsia
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