Marg Constructions, Malaysian co tie up for Karaikal port

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Oct 2007

Marg Constructions Ltd and Pembinaan Redzai Sdn Bhd, Malaysia, are to promote a joint venture company to manage the Karaikal Port being set up by Karaikal Port Pvt Ltd (KPPL), a wholly owned subsidiary of Marg Constructions.Mr G.R.K. Reddy, Chairman and Managing Director, Marg Constructions, said Pembinaan Redzai owns Westport, a regional hub and load centre at Port Klang, Malaysia. The association with Pembinaan will help KPPL develop and operate Karaikal port on an international scale. The joint venture would be an equal partnership between Marg and Pembinaan Redzai; the latter will provide strategic management and operational expertise to develop the Karaikal port. KPPL holds a 30-year concession to set up and operate the Karaikal port about 250 km south of Chennai on the East Coast. The Malaysian company would enter into a contract with KPPL for the period of the concession awarded by the Government of Puducherry. Mr Reddy said the Malaysian company has also initiated a due diligence for a stake in KPPL. But this was at a preliminary stage. The lagoon type, all-weather, deepwater port will have over 10-million tonne capacity when completed. The first phase with a 4-million tonne capacity for coal and general cargo is to be completed by 2008-end. The capital outlay for this stage is about Rs 416 crore, with Rs 302 crore as debt and Rs 114 as equity. The second phase would start early in 2009 with additional coal-handling facility and a container berth. This would be in place by June 2010. In the third phase the port would have liquid-cargo handling capacity and one more container terminal, Mr Reddy said. Karaikal Port will have a 16-metre draught and a capacity to handle vessels of 100,000 DWT. With over 600 acres, it is well connected by rail and road to Chennai and Tuticorin. Karaikal Port users can save about 125-150 km of inland travel when compared to the use of Chennai or Tuticorin Ports, he said. Marg Constructions is a Chennai-based diversified infrastructure development company listed on the Bombay Stock Exchange and the Luxembourg Stock Exchanges.