IL&FS arm in talks to develop greenfield port in Indonesia

IL&FS arm in talks to develop greenfield port in Indonesia
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First Published: Tue, Aug 28 2007. 01 15 AM IST
Updated: Tue, Aug 28 2007. 01 15 AM IST
Mumbai: IL&FS Transportation Networks India Ltd (ITNL) is in talks to develop a deep-draught (depth) greenfield port in Indonesia. If the company gets the deal, it would be the first investment by an Indian company in an overseas port development project.
“We have identified three possible locations for the development of the port,” said a company official who did not want to be identified.
ITNL’s proposal involves building an offshore facility to handle bulk cargo—mostly ore exports—in partnership with one of the biggest ore exporters in Indonesia. The official declined to give further details, citing a confidentiality agreement signed with the Indonesian partner.
ITNL is a company promoted by infrastructure development and finance firm Infrastructure Leasing & Financial Services Ltd (IL&FS) to focus on projects in the area of surface transport. IL&FS is currently co-developing two greenfield port projects with other companies in Maharashtra and has successfuly bid for developing two ports owned by the Gujarat government.
IL&FS is the co-developer and financial advisor for the Rewas-Aware port project in Maharashtra that is being built by a consortium in which Mukesh Ambani’s Reliance Industries Limited is a partner. The all-weather, deep-draught (depth) port project will be implemented in phases, with the first phase costing about Rs4,000 crore.
The company is also developing the Dighi port in Maharashtra along with Balaji Infra Projects Ltd.
IL&FS has also emerged the successful bidder for developing the Khambat port in Gujarat. And a consortium comprising IL&FS and SKIL Infrastructure Ltd is set to win the Mithivirdi port project in Gujarat. These four port projects are expected to cost more than Rs6,000 crore.
Ports owned by the Gujarat government account for the largest share of traffic handled by ports run by maritime states. Ports in Gujarat located at Mundra, Pipavav, Hazira, Dahej, Jamnagar and Sikka currently have the capacity to handle 180 million tonnes (mt) of cargo. By 2011-12, the Gujarat government plans to raise this capacity by 220mt to 400mt.
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First Published: Tue, Aug 28 2007. 01 15 AM IST