May 07, 2026 04:02 pm (IST)
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Kamarajar Port awards work for modification of iron ore terminal for handling coal
Chennai, Jul 14 (IBNS): Kamarajar Port Limited has signed a Concession Agreement with SICAL Iron Ore Terminal Limited (SIOTL) for modification of its iron ore terminal so that it can handle Common User Coal, the Ministry of Shipping informed on Thursday.
Kamarajar Port, earlier known as the Ennore Port, is about 25km north of Chennai Port.
The decision for modification of the terminal was taken against the backdrop of the ban on export of iron ore by the state government of Karnataka and the Supreme Court.
KPL had entered into a contract with SIOTL in September 2006 for building the iron ore terminal on 30 years Built-Operate-Transfer basis with an approved project cost of Rs 480 crores in two phases of 6 million tonnes each .
The Licensee developed the first phase of 6 MTPA capacity at an investment of Rs 360 crores. The revenue share was offered at 51.60 per cent. However, the commissioning activities were stalled due to the ban on iron ore export.
KPL, therefore, decided to convert the terminal to handle Common User Coal in the said Terminal.
After obtaining necessary approvals from the government, bidding process was initiated for modification of existing iron ore terminal on “as is where is” to also handle Common User Coal at Kamarajar Port on Design-Built –Finance-Operate-Transfer) basis.
SIOTL has offered a revenue share of 55.524 per cent.
The conversion work will commence in October 2016 and will be commissioned within twelve months from the date of commencement of work, the ministry said.
Image: Kamarajar Port Ltd website
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