Puducherry Port

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In January 2006, the Government of Pondicherry signed a contract of 30 years (including 3 years of construction period) to Pondicherry Port limited (PPL) (a joint venture between Subhash Projects & Marketing Ltd. and Om Metals Ltd.), for the development of Pondicherry port in Pondicherry . The project was planned to be executed in four phases. The first phase of the port consisted of constructing two container berths and one general cargo berth (with an expected capacity of 540 thousand throughput). The second phase involved bulk cargo terminal capable of exporting 5.7 million tonnes per annum(mtpa) of iron ore and importing 2.8 mtpa of coal. Whereas the third and the fourth phase consisted of a liquid cargo terminal (with capacity of 1.8 mtpa) and the third container berth respectively. Please note that Pondicherry Port was designated as a minor port. Under the contract, PPL had the exclusive right to design, finance, build, manage and operate the Puducherry Port. Sheltered between two major ports Chennai and Tuticorin on the eastern coast, Pondicherry Port was designed as a fair weather port. The consortium won the international competitive tender, conducted by Port Department, Pondicherry, by quoting the highest revenue share from operations to Port Department, Pondicherry. The consortium then established Pondicherry Port Ltd, a special purpose vehicle (SPV), for the execution of the project on a Build, Own, Operate, Share, and Transfer (BOOST) basis. The total cost of the project in Phase-I was estimated to be US$ 466.75 million. The Phase-I of the project reached financial closure in January 2006. The construction commenced in January 2006 and the port was expected to be in commercial operation by 2009. None None