A JOINT venture between PSA Corporation of Singapore and South India Corporation (Agencies), PSA-Sical has won a bid to develop a Rs4.92bn ($108m) second container terminal at Chennai port on a 30-year build, operate, transfer concession model.

The existing Chennai Container Terminal is being operated by Dubai Ports World, which took it over last year from P'O Ports after buying out the British company.

The terminal achieved a record throughput of 700,107 teu last year.

PSA-Sical, meanwhile, has been successfully running the Tuticorin Container Terminal for several years.

'We expect it will take PSA-Sical 24 months to fully develop the new box terminal, but it should be at least partially operational within a year,' said shipping minister T R Baalu, who handed the letter of intent to the consortium.

The consortium won the bid after agreeing to part with 45.801% of the revenue collected from box handling to Chennai Port Trust, which will contribute Rs1bn to the project in costs of dredging and land reclamation.

A formal memorandum of understanding will be signed between PSA-Sical and the port trust in the first week of January after the former has paid an upfront fee.

The new facility will be put up at the modernised east and south quays of Chennai port and would allow the concessionaires to handle about 100,000 teu in the first year, going up to 600,000 teu within five years of starting operations.

Road connections to the two box terminals would be considerably enhanced by the development of an elevated expressway from Chennai to Maduravoyal along the River Cooum.

A detailed feasibility study has been commissioned for this Rs10.50bn project.

- Chennai Port Trust is all set to notch up the completion of 125 years of commercial operations with a week of celebrations starting January 17.

Mr Baalu revealed that exhibitions and conferences would be held to mark the event and each employee of the port trust would receive a five-gram commemorative gold coin.