Mundra International Container Terminal

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In 2001, Gujarat Maritime Board awarded the development of Mundra International Container Terminal (MICT), a new deep water container terminal located in Mundra Port on Gujarat coast in north-west India, to India’s Adani Group under a 30 year build-own-operate-transfer (BOOT) agreement. MICT comprised of two berths capable of handling 1.2 million twenty foot equivalent units (TEU) of cargo per annum. MICT was strategically located near India s largest cargo generating regions and was designed to handle the deepest container vessels of the world. This BOOT contract was the result of Government of India’s (GOI) commitment to encourage private investments to augment and upgrade the country’s port capacity. To this effect, GOI took several policy initiatives. Of these, the guidelines issued in October 1996 was the most comprehensive, facilitating private sector participation in the construction and operation of additional assets such as container terminals and cargo berths. Adani Group established Mundra International Container Terminal Limited (MICTL) to implement this project. In May 2003, P&O Ports acquired 100% equity in MICTL from Adani Group for US$ 195 million. In March 2006, UAE’s DP World took over MICT after it acquired P&O Ports. As of December 2006, DP World held 100% equity in MICTL. The total capital cost of building MICT was estimated at US$ 120 million. The terminal reached financial closure in 2000 with a debt equity ratio of 2:1. The debt was tied up with a consortium of banks and financial institutions such as Industrial Finance Corporation of India (IFCI), Exim Bank, State Bank of India group such as SBI Saurashtra, SBI Travancore, SBI Hyderabad, Canara Bank and Punjab National Bank. Mundra Port was designated as a minor port. All major ports in India are administered by the central government while the minor ports are administered by the respective state maritime boards under the Indian Ports Act 1908. In terms of tariff setting, the major ports came under the Tariff Authority for Major Ports while the minor ports had the freedom to fix their own tariff. MICT began commercial operations in July 2003. http://www.portofmundra.com/Client/InnerPageContent.php?pageID=16 http://portal.pohub.com/portal/page_pageid=761,248658&_dad=pogprtl&_schema=POGPRTL http://portal.pohub.com/portal/pageageid=408,1,408_130622&_dad=pogprtl&_schema=POGPRTL None