Lanco Infratech gets Rs 8,000 Cr port deal
Hyderabad-based Lanco Infratech won the 33 year concession for developing and operating a container port at Vizhinjam in Kerela. The project’s total cost would be Rs 8,000 crore. Lanco is responsible for arranging the project funding. Lanco has bagged the project in a consortium with Pembinan Radzai, a Mal-aysia-based port operator. The project site is located about 16-kms from Thiruvananthapuram.
The first phase, costing Rs.2,400 crore, will have a capacity of 1.5 million TEUs and will be commissioned five years from now. The remaining three phases will be completed depending on the traffic growth at the port. The Kerala government will hold a 24 per cent equity stake in the project while Lanco holds the rest. The Malaysian partner, which is currently just the operator, will also have the right to take up an equity stake in the project. Lanco may have to raise fresh capital to put up its equity stake for the project.
The project aims to attract container trans-shipment traffic to and from India, currently handled in ports in Sri Lanka and Malaysia amongst others.