Port of Ennore, 24 kilometres north of Chennai on India's east coast, has suffered a setback
PRIVATISATION at the Port of Ennore, 24 kilometres north of Chennai on India's east coast, has suffered a setback after the consortium awarded the concession to build and operate the new container terminal decided to withdraw.
The consortium, which was granted the concession in August 2010, cited escalating costs, the depreciation of the Indian rupee and slow growth in container traffic as its reasons, reported London's Port Technology International.
"The concession awarding body, Ennore Port Ltd, has been informed of this decision, which was taken in light of the changed economic outlook in India since the concession was granted," said UK-based Eredene Capital, which holds 22 per cent.
In the award of the project, the consortium established the Bay of Bengal Gateway Terminal as a special purpose vehicle to manage the operation, which included both local construction firm Lanco Infratech and Spanish company Grup Maritim TCB.
It was hoped that the proposed terminal, set up to be Ennore port's first container handling facility, would help to ease the growing congestion hampering Chennai.
The specifications of the terminal included a 3,280-foot quay, to enable the simultaneous berthing of three 8,000 TEU vessels with 15 metres of water alongside and an initial annual capacity of 1.5 million TEU.
PRIVATISATION at the Port of Ennore, 24 kilometres north of Chennai on India's east coast, has suffered a setback after the consortium awarded the concession to build and operate the new container terminal decided to withdraw.
The consortium, which was granted the concession in August 2010, cited escalating costs, the depreciation of the Indian rupee and slow growth in container traffic as its reasons, reported London's Port Technology International.
"The concession awarding body, Ennore Port Ltd, has been informed of this decision, which was taken in light of the changed economic outlook in India since the concession was granted," said UK-based Eredene Capital, which holds 22 per cent.
In the award of the project, the consortium established the Bay of Bengal Gateway Terminal as a special purpose vehicle to manage the operation, which included both local construction firm Lanco Infratech and Spanish company Grup Maritim TCB.
It was hoped that the proposed terminal, set up to be Ennore port's first container handling facility, would help to ease the growing congestion hampering Chennai.
The specifications of the terminal included a 3,280-foot quay, to enable the simultaneous berthing of three 8,000 TEU vessels with 15 metres of water alongside and an initial annual capacity of 1.5 million TEU.