CHENNAI: Adani container terminal inside Kamarajar Port at Ennore is likely to be commissioned by May or June - after 6 months delay due to heavy damage to terminal equipment caused by Vardah cyclone on December 6, 2016.
Equipment in the terminal, which was ready for commissioning on December 15, 2016, had to be completely repaired.
According to sources, the private operator could have lost INR 5-6 crore a month due to the delay and Kamarajar Port which gets a 37% revenue share would also have to take the hit as it cannot claim any compensation as it was an ‘act of nature.
The source said that chinese engineers repairing the equipment, including cranes, are issued daily port entry pass by the Immigration department instead of long-term pass. Due to this, there was delay in doing repairs as the engineers had to wait for getting the passes.
There were other teething problems, including Customs and connectivity, that are getting sorted out.
Kamarajar Port awarded the container terminal to the Gujarat-based Adani Ports & SEZ on a public-private partnership agreement. The 730-m terminal will have an annual capacity of 1.40 million twenty foot equivalent units (TEU) and built at an estimated project cost of INR 1,270 crore.
According to rating agency ICRA, commissioning of Adani container terminal coupled with development of additional terminals - coal berth 3, coal berth 4, a new general cargo berth and IOC’s LNG terminal - are expected to double cargo handling capacity at Kamarajar Port in the medium term and result in sustained revenue growth.