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Reliance pitches for Kerala port upgrade

August 18, 2006 11:21 IST

Reliance Industries has proposed to develop the Rs 4,500-crore (Rs 45 billion) Deepwater International Container Trans-shipment Terminal at Vizhinjam in Kerala.

The company has already submitted a proposal to the Kerala government in this regard.

Confirming this, sources close to the development said RIL's plan to develop the trans-shipment terminal was aimed at supplementing its Rs 25,000-crore (Rs 250 billion) retail foray. If it gets the green signal, the company is likely to rope in an international operator to construct and operate the terminal.

While RIL executives declined to comment on the issue, Kerala government officials said, "it's premature to offer a comment."

The Vizhinjam terminal, a deep-draught port and trans-shipment hub, would help RIL integrate the supply chain and logistics requirements of its retail initiatives, as well as its special economic zones, the sources said.

The RIL proposal comes at a time when the Indian government has denied security clearance to Chinese firms -- Kaidi Electric Company and China Harbour Engineering Company -- which won the mandate for developing the port along with Mumbai-based Zoom Developers.

Apart from RIL, major shipping players, including Maersk, Port of Singapore Authority, Gammon India, and Dubai Ports World have evinced interest in the trans-shipment terminal.

"The Vizhinjam project is on the international shipping route close to the east-west shipping axis, with a natural depth of 20 metre, and close to the sea coast. This will substantially reduce the transportation costs of any company," industry analysts said.

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P R Sanjai in Mumbai
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