Dakshin Bharat Gateway Terminal Private Limited

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On September 4, 2012,the Chidambaranar Port Trust (CPT - formerly Tuticorin Port Trust) signed a 30 year concession (including a construction period of 21 months) with ABG Container Handling Private Limited for converting Berth No.8 into a Container Terminal at Chidambarnar Port in India. The terminal would be capable of handling up to 750,000 TEUs. The container berth will have a draft of 14.1 meters and can handle larger vessels unlike the neighboring berths that only handle feeder vessels. Under the concession, ABG was responsible for design, finance, construction,operation, maintenance and marketing of the container terminal facility with a capacity of handling 750000 TEUs per annum. Chidambaranar Port would provide supporting facilities like dredging of channel and berth,and back-up area.Upon completion of this project, the port would have a capacity to handle 1 million TEUs. The EXIM traders of the hinterland, particularly Tirupur,Coimbatore,Karur and Erode belt, would benefit by the additional container terminal. The berth,unlike others,will also have high efficiency,high capacity cranes. The present container terminal of V.O. Chidambaranar Port was operated by PSA SICAL with a capacity of 4,17,000 TEUs. ABG Container Handing Private Limited established Dakshin Bharat Gateway Terminal Private Limited (DBGTPL),a Special Purpose Vehicle (SPV), to implement the project.The SPV won the tender through an international competitive bidding by quoting the highest revenue share to the Chidambaranar Port Trust of about 55.19% during the concession period of 30 years. Since the project was located at a classified "Major Port" (Tuticorin Port), it was subject to tariffs regulated by the Tariff Authority of Major Ports (TAMP).These ports do not have the flexibility to determine certain charges and dues that are payable by vessels as TAMP had the authority to fix charges for pilotage, mooring and other services rendered to vessels. DBGTPL was permitted to recover tariff from the users of the project facilities and services in accordance with the tariff notification set out by TAMP. Further, DBGTPL would collect all cess and charges from the users of the project facilities and services, as may be directed by CPT. ABG had contracted to French company Socopao to oversee the operation and management of the container terminal. The concession was signed on 4th September 2012.The project attained financial closure on 10th July 2013 with a debt equity ratio of 70:30. The estimated capital cost of the project was US$ 45.2mn (INR 2652mn @ 58.6 INR/USD). Financing comprised a US$ 34mn (INR 1992mn) 13-year 6-months term loan, and US$ 11.3mn (INR 660mn) sponsor Equity. IDFC was the mandated lead arranger. The participating banks in the term loan were State Bank of Bikaner & Jaipur,Tamilnad Mercantile Bank,Union Bank of India. Construction on the project was expected to begin in March 2013 (the Appointed Date for the Concession) and receive its first cargo in December 2014.