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Published: 1 October 2012      

Ennore box terminal developer pulls out

Bay of Bengal Gateway Terminal Private Ltd, the consortium formed to design, build and operate a container terminal at the Indian port of Ennore in Tamil Nadu state, has announced that has withdrawn from the project with immediate effect.

The consortium, made up of Spain’s Grup TCB (26%), Eredene Capital (22%), Obrascon Huarte Lain SA and Lanco Infratech Ltd, was awarded a 30-year BOT concession to build and operate the terminal at India’s first corporatised port in August 2012.

Plans called for a 1.5M TEU/year capacity, three-berth facility with a depth alongside of 15m to allow vessels of up to 8,000 TEU to be handled.

Grup TCB said the unfavorable evolution of the Indian economy since the awarding of the concession had made the project no longer financially viable.

“The project feasibility has been greatly affected due to higher interest rates, higher total project costs due to the devaluation of the Indian rupee and a slowdown in growth of container volumes in the Chennai area,” a Grup TCB statement said.

Bay of Bengal Gateway Terminal was the sole bidder for the Ennore project. It is not known at this stage whether the concession awarding body, Ennore Port Ltd, which has been informed of its decision to withdraw, will re-tender the project.


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  • Asia) India) Chennai
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