New Delhi: Adani Ports and Special Economic Zone will set up its first container terminal outside India in Myanmar at an estimated cost of $290 million (over Rs 2,000 crore).
The company signed an agreement on Thursday to develop and operate a container terminal at Yangon Port in Myanmar.
Construction for phase one of the project will commence next month and will be completed by June 2021. It is a two-phase project.
"Total project cost for both phases would be $275-290 million. The investment is in line with APSEZ strategy to have a footprint in Southeast Asia and expand the container terminal network," Adani Ports and Special Economic Zone (APSEZ) said in a statement.
Also, the terminal will be integrated with APSEZ ports/terminals along the east and south coast of India, unlocking synergies by offering multiple entry/exit points for shipping lines, APSEZ, the logistics arm of Adani Group, said.
The BOT (build, operate, transfer)/ lease agreement is signed for 50 years and extendable twice for ten years each.
"The terminal will have a capacity to handle 0.80 million TEUs (twenty-foot equivalent unit) of containers...The estimated cost for implementing phase I of 0.5 million TEUs is between $220-230 million and phase II expansion to 0.8 million TEUs is expected to cost between $55–60 million," it added.
The terminal will have a quay length of 635 meters with the capability to handle three vessels at a time.
APSEZ said it would introduce its operating and technological expertise to Myanmar by using modern equipment to ensure efficient handling of containers, thereby reducing the average turnaround time of vessels.
All requisite clearances/permissions for setting up the terminal have been received in the form of Myanmar Investment Commission (MIC) permit, it added.
"We are proud to be the first Indian company to set up a container terminal outside India. With a good balance of EXIM trade and a ten percent growth prospect, the project is an ideal investment for us. The terminal will generate meaningful employment for over 1,100 local people," Karan Adani, CEO and Whole Time Director of APSEZ, said.
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Updated Date: May 23, 2019 14:06:08 IST