Sical to convert iron ore terminal to coal facility at Kamarajar Port

Bangalore: Union government-owned Kamarajar Port Ltd, the entity that runs the port at Ennore near Chennai, has signed a so-called concession agreement with Sical Iron Ore Terminals Ltd for converting its idle iron ore terminal into a coal terminal at the port. 
 
This is the first instance of a public-private-partnership (PPP) terminal being allowed to alter the cargo profile after it was awarded for another cargo type and will set the tone for similar stressed terminals at Union government-owned ports. The permission to change the cargo profile necessitated a re-bid because the shipping ministry said that such restructuring of stressed terminals would have to go through a re-tender to discover the revenue share afresh. 
 
A concession agreement sets out the terms and conditions of a port contract. Port contracts at Union government-owned ports are decided on the basis of revenue share – the entity willing to share the most from its annual revenue will get the deal typically lasting 30 years.

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