Lanco gets LoI to build Vizhinjam Port

HYDERABAD: The Hyderabad-based Lanco group has been formally issued the letter of intent by Kerala for building the Vizhinjam International Transhipment Terminal Port.
Lanco group had won the contract jointly with the Malaysia-based Pembinan Redzai Sdn Bhd.

The Lanco consortium will sign a licence agreement for the project in the next four to six weeks.

A special purpose vehicle will be floated for implementing the project in which the Kerala government will have about 24% stake and the rest with the consortium members.

The project involves development of international container transhipment port with an investment of about Rs 8,300 crore.  To be developed in four phases, the project will have an ultimate capacity of 6.5 Million TEUs (Twenty foot Equivalent Unit).

Lanco would commence preparation of detailed project report and also start the process of obtaining Environmental and CRZ clearances for the project and financial closure, which is expected to take about 12-18 months.

The construction activities would start thereafter in order to commence commercial operations of Phase-I by end of 2012. Phase-I will have investment of Rs 2,800 crore.
According to a Lanco statement, the port, when developed, would attract a major share of the container transhipment traffic of India from the ports of neighbouring countries like Colombo, Malaysia, Al-Salalah and Singapore etc. and thereby the Indian companies engaged in export and imports would save substantial foreign exchange outgo, in addition to savings in time, risks and costs for transhipment at foreign ports.