PRESS RELEASE

• First rail cargo from Karaikal port flagged off
  Saturday, January 28, 2010 , The Hindu   more...
  KARAIKAL: The first rail cargo from the Karaikal port was flagged off here at Keezhavanjoor on Wednesday.
  The flagged off rail cargo of one rake consisting of 59 wagons carried over 3,900 tonnes of pet coke to Madras Cements at Eeachangadu in Ariyalur district.
  The rail connectivity is expected to augment efficient handling of container and cargo traffic of Karaikal Marg Port that commenced its operations in April last year. The port has a 1.7-km-long railway siding with three lines capable of handling 3 million tonnes of traffic through rail.
  With the first cargo flagged off, the port would export its first order from BHEL, Tiruchi, say sources.
  The port has been conceived to handle sugar, coal, cement, project cargo and liquid cargo. This is expected to facilitate new industries in the region.
  According to V.Narayanasamy, Union Minister of State for Planning, Parliamentary Affairs, and Culture, over US$ 520 billion would be required as foreign investment in infrastructure in the country. This included roads, ports, housing, drinking water facilities etc.
  The total cargo capacity of Indian Ports in the country was expected to reach 1,500 million tonnes by 2012. This is slated to augment business potential, Mr.Naryanasamy said.
  E.Valsaraj, Minister of Home and Ports, Puducherry, said the Karaikal port, developed on public-private partnership, had been conceived to provide for an integrated development of hinterland. Under the PPP agreement, the Puducherry government shall receive 2.6 percent of the gross income of the port. Over Rs.1.20 crore had been estimated as the government’s share of revenue from Marg Port for the current year, he said.
  With rail cargo, train linkage had commenced after a gap of 18 years at Karaikal and was expected to facilitate the development of the region, said Iqbal Singh, Lieutenant Governor, Puducherry. Further, the rail cargo of the Karaikal port was expected to increase the financial viability for the railways.
  However, the port should be alive to the threat of global warming. Measures should be taken to ensure environmental safety and coastal security surveillance, the Lieutenant Governor said.
  Marg Karaikal Port has commenced Phase II of its operations that envisages three berths and and mechanised coal berths to handle a capacity of 21 million tonnes.
  V.Vaithilingam, Puducherry Chief Minister, A.M.H.Nazeem, Leader of Opposition, Puducherry, GRK.Reddy, CMD, Marg Group, were present.
  
  
  
• First railway cargo from Karaikal port flagged off
  Saturday, January 28, 2010 , Times of India   more...
  Karaikal: The first railway cargo from the Karaikal port, promoted by Karaikal Port Private Limited (KPPL), a subsidiary of Marg Constructions, was flagged off on Wednesday evening. The first cargo transported by rail belonged to Madras Cements Ltd., and was destined towards Ichengadu in Ariyalur, where the cement factory is located. The cargo transported was pet coke and one rake was loaded at the newly-constructed railway sidings at the Karaikal Port. Madras Cements Ltd. has regularly brought vessels through the port in the last eight months owing to its proximity to their plants. Chief minister V Vaithilingam flagged off the cargo in the presence of Lt Governor Iqbal Singh, Union minister of state for planning, parliamentary affairs and culture V Narayanasamy, home minister E Valsaraj, MARG Limited chairman-cum-managing director GRK Reddy and senior officials of Southern Railway. Speaking on the occasion, Reddy said the Greenfield Karaikal port underlined the company’s commitment for catering to India’s growing infrastructural needs. “Railway connectivity to the private port, in addition to the already well-established road connectivity, will enhance the economic potential of Tamil Nadu and Puducherry. It’s a great pleasure to be progressing with steadfast speed on the project,” he said. The commissioning of the railway connectivity will result in a significant increase in the cargo evacuation rate from the Karaikal port, which will allow more efficient utilisation of the storage area, thereby enhancing the cargo handling capacity. A number of customers prefer evacuation of cargo through rail because it is faster, and large volumes can be mobilised quickly. Rail movement is specifically significant for bulk cargo, and it is here that the port specializes in.

  

  
  
• Karaikal Port gets rail link
  Saturday, January 28, 2010 , Business Line   more...
  Karaikal Port, developed by Marg Ltd, a Chennai-based infrastructure company, has got a rail link to Nagore.
  The link enables cargo delivery to various destinations . The first railway cargo belonging to Madras Cements was flagged off on Wednesday to the company's plant in Ichengadu in Ariyalur, about 150 km from Karaikal.
  The Nagore railway station is 1 km from the port but was separated by the Vettar River. A bridge was completed and tested on January 12, 2009, paving the way for the Railways to construct a railway siding in Karaikal port. The rail connectivity will speed up cargo evacuation from the port to end users.
  In the last nine months, coal movement to Madras Cements' plant in Ariyalur, located around 150 km from Karaikal, was transported through trucks, which will now be replaced by rail movement, according to a senior company official.
  The first rake was flagged off by Mr V. Vaithilingam, Chief Minister of Puducherry, in the presence of Dr Iqbal Singh, Lt Governor of Puducherry.
  Mr G.R.K. Reddy, Chairman and Managing Director, Marg, said the green field port is now expanding into second phase. The rail connectivity was a critical part for entire project, he said.
  Located around 300 km south of Chennai close to the Nagapattinam port the Karaikal port is emerging as a bulk and break-bulk cargo terminal. In the last nine months it has handled over 0.5 million tonnes of various types of cargo. Over 150 vessels carrying coal, cement and project cargo to fertilisers and sugar have called at the port which is now equipped to receive Panamax vessels, according to information available in the company's Web site.
  A senior official of Marg said, initially one rake a day will be handled at the port, and in the next two weeks will increase to two rakes a day. In the long run the plan is to run three rakes a day. “If this happens, the Railways will earn revenue of around Rs 100 crore a year,” he said.
  Some of the clients that will use the service include JSW and Malco, he said.
  Envisaged as a deep-water lagoon-type harbour, connected to sea by an access channel and protected by breakwaters, the Karaikal Port will be able to handle large volumes of import and export traffic. Phase – I of development was completed in April, 2009, comprising two berths - one each for bulk and general cargo.
  Karaikal Port is envisaged to have a total of 9 berths capable of handling 47 million tonnes per annum by 2016. The port is to be developed in 3 phases , the Web site says.
  
  
  
• For exports, BHEL chooses Karaikal port over Chennai
  Saturday, November 28, 2009, Sify News   more...
  Power equipment major Bharat Heavy Electricals Ltd's (BHEL) Tiruchirappalli unit will start exporting its boilers through the newly built private port at Karaikal, a company official said.
  The state-run company expects to save on freight and wharf charges by exporting equipment through the Karaikal port, which is closer to the plant than the Chennai port.
  'On a conservative estimate, we hope to save Rs.2 per km per tonne of cargo,' a senior BHEL official told IANS on condition of anonymity.
  The Karaikal port is 132 km from BHEL's plant in Tiruchirappalli, while Chennai is 350 km away.
  The company's first export consignment through the Karaikal port will be the boiler components for two 135-MW Circulating Fluidised Bed Combustion (CFBC) boilers to New Caledonia-based firm Koniambo Nickel.
  BHEL will despatch 14,000 tonnes of components for each of the two boilers to New Caledonia, a French colony near Australia.
  Further, as the Karaikal port is new, BHEL plans to bargain with the authorities for low wharf charges.
  The wharf charge in the Chennai port is 0.22 percent of the cargo value and as the port is congested ships usually have to wait before being berthed.
  The main reason for choosing the Karaikal port over Chennai is the clean cargo condition mentioned by its client Koniambo Nickel, the official said.
  'The Karaikal port is new and relatively clean.' According to A.V. Krishnan, executive director of BHEL, the first consignment is around 40 tonnes of steel columns.
  Krishnan said the order is a major breakthrough for BHEL in its drive to enter new markets worldwide with its environment-friendly CFBC boilers.
  Link: www.sify.com
  
  
• Rs. 86-crore Nagore-Karaikal broad gauge line works under way
  Friday, Jun 12, 2009, The Hindu   more...
  NAGAPATTINAM: Works are under way on the Nagore-Karaikal broad gauge line, a 11-km-stretch. The new line, being laid on an outlay of Rs. 86 crore, will have seven major bridges, 40 minor bridges and 12 level-crossing gates of which six will be manned.

  
  GETTING READY: Construction of railway track in progress for the line between Nagore and Karaikal.

  The BG line will have a halt station at Thirumalairajanpattinam between Nagore and Karaikal. Sources said that as most of the work would be completed before water from the Mettur Dam is released when most of the construction area would be submerged. Similarly, when the fields get water-logged, it becomes difficult for bank formation. Hence plans are on to take up parallel works on bank formation in summer now.
  According to sources, once sub structures are in place, work is expected to speed up. The difficult nature of the work involved considering the marshy land that comes under the Nagore-Karaikal BG line entails its high cost for the 11-km stretch. Works were delayed due to the rains last year and waterlogging posed additional problems.
  Work is still to commence on the Karaikal station and the halt station at Thirumalairajanpattinam. As of now, sub-structural works are under progress at the site and launching girders are being erected.
  The work on the line began in early 2008. The BG line is slated for completion by March 2010, sources said. Work on Karaikal Port is under way at a faster pace. It makes sense for the port to commence its operations only on completion of the Nagore-Karaikal BG line. The Karaikal Port will have to depend on this line to handle its container and cargo traffic once it commences its operations. This places additional leverage on the project along with demands for its speedy completion.
  Link: http://www.hinduonnet.com/2009/06/12/stories/2009061257430100.htm
  
  
• Karaikal Port receives project cargo vessel m.v. DA FU
  Tuesday, June 2, 2009, Shipping Times   more...

  Exim News Service

  

  With the calling of m.v.DA FU, the Karaikal Port, promoted by the Chennai based MARG Group is well set for commercial exploitation. The vessel carrying project cargo was berthed at Karaikal Port on 29th May 2009.
  The cargo consignment from Germany is for Nagarjuna Oil Corporation. The project cargo consists of 17 pieces of multiple dimensions, with the heaviest piece weighing 245 tonnes. The cargo would be offloaded on to the port and later reloaded on the barges to be transported to Nagarjuna Oil Corporation project site near Cuddalore.
  The port, which commenced operations with the calling of m.v. Beluga Fan Fare on 15th April, 2009 has been active as an offshore base for vessels of Hindustan Oil Exploration Company Limited (HOEC), which calls on the port almost every alternate day.
  The Port has lined up a number of vessels for the coming month for both export and import of Cargo. The export cargo mainly consists of construction materials & cement and the import cargo consists of copra cake, project cargo, raw sugar, edible oil, coal, fertilizer and other agro products.
  Besides it is also getting a number of enquiries for shipment of containers which is currently being evaluated and is likely to commence shortly. The port would have a capacity to handle 21 Million Tonnes per annum in the second phase.
  Link: www.exim.net
  
  
• Karaikal Port commences operations
  Friday, May 08, 2009, Times Shipping   more...
  KARAIKAL Port, developed by Marg, India’s fastest growing integrated infrastructure company, has commenced operations with it receiving MV Beluga Fanfare on April 15, 2009.

  

  Of the nine berths planned to be built on 600 acres leased from the Puducherry government, two are ready for use.
  The developer has completed the first phase in a record time of 18 months. Besides the berths, dredging has been completed to a depth of 9 metre.
  The port has as estimated total project cost of Rs. 1,400 crore. It is intended to primarily handle cement and coal to serve the hinterland as well as to provide an alternative to the Chennai and Tuticorin ports, which are the major ports in the coastline but are separated by long distance.
  The company officials are hopeful of getting rail connectivity by July.
  According to GRK Reddy, chairman & managing director, MARG, the project will act as an agent of change and will bring inclusive growth to coastal Tamil Nadu and Puducherry.
  Major cargo handled by the port will comprise of coal bulk, textile, textile machinery, cement, agro-products, project cargo, containers, chemical fertilizers, etc.
  He said the port is planned to develop in 3 phases. The draft will be increased continuously to 13.5 to 16.5 metres in stages.
  The Phase-I with water depths of 12.5 mts with a capacity up to 5MMTA, is capable of handling vessels up to 50000 DWT, while the second phase with depths of 16.5 mts, mechanized coal handling system with a capacity up to 21 MMPTA will be ready by 2011 to handle vessels up to 120000 DWT. Phase III with a cumulative capacity of 45 MMPTA will be ready for operation by 2015.
  The port is a state-of-the-art all-weather, deep-water port, located 280 kms South of Chennai. It is being developed on a build-own-transfer (BOT) basis.
  Link:http://www.timesshippingonline.com/article/35/2009050820090508200529267dda169e7/Karaikal-Port-commences-operations.html
  
  
• Karaikal port: Viability hinges on connectivity
  Monday, May 04, 2009, Business Line   more...
  Those who are optimistic about the project note that all the arguments about ‘lack of load’ ignore the fact that the region will develop as a consequence of the port coming up.
  When the massive Beluga Fanfare unloaded its cargo — two 400-tonne Liebherr cranes — and put them on the newly-built concrete quay at Karaikal last month, it marked a renaissance of the region’s maritime trade. In the ancient Tamil era, two ports close to Karaikal — Tranquebar and Poompuhar — played key roles in Tamil history.
  The background literature provided by the promoters of the Karaikal port, Marg Ltd, lists 19 entities that have signed, or are about to sign, expressions of interest for using the port. The cargoes of all these entities add up to 26 million tonnes, giving the port and its financiers a big thumbs-up.
  Indeed, there is compelling economic logic to the port. It is the only deepwater port (with a draft of 18 metres, eventually) on the 650-km coastline between Chennai and Tuticorin. The promoters of the port set great store by this fact and point to the great convenience and cost benefits that the port will bring its users in the hinterland. The port is being positioned as one that will be appropriate for bringing in coal to the cement and power companies in the region—indeed, all but three of the 19 EoIs are for bringing in coal.
  Therefore, the Karaikal Port looks like a winner of a project, but there is only one problem. Many of the companies on the EoI list, including the in-business cement companies, say they are not too keen on using the port. In fact, even if they were, they would constitute a tiny fraction (less than 1 million) of the port’s projected capacity.
  
  Demand scenario
  Is there enough demand for the port’s services? Is the Karaikal port viable? First of all, ask the pessimists, where is the load? One industry expert pointed out that for a port to be viable, at least half of its capacity should be assured by customers within a 200 km radius. Such an area around Karaikal boasts of no major industrial activity.
  The power projects — well, we know about power projects. There is doubt whether they will come up at all. The Ultra-Mega ones usually come with a captive port. To build a port with power projects as potential customers, say some experts, is not wise
  . As regards cement companies, they say their arrangements with Chennai and Tuticorin ports are working fine, because the trucks that bring in the coal from the ports also take back the cement on their return. They do not appear to be too enthusiastic about the Karaikal port.
  On the other hand, those who are optimistic about the project, note that all these arguments about ‘lack of load’ ignore the fact that the region will develop as a consequence of the port coming up. Infrastructure gets ahead of development and pretty soon, development will catch up.
  
  Two aspects important
  Mr Sudhir Rangnekar, former Managing Director of Sical Logistics and an old hand in the shipping industry, points out that India’s coastal trade is hardly 10 per cent of the country’s total trade, as against 35 per cent of China, 15 per cent of the US and 45 per cent of Europe. Because there is a major thrust given to ‘short sea shipments’, coastal trade is bound to grow exponentially, Mr Rangnekar says. He is sure ports like Karaikal will have a good future in the long run.
  Mr Rangnekar observes that much would depend upon two aspects — connectivity and marketing. Ginger up connectivity, make sure that what comes in ships is delivered at the door-step, you have yourself a good deal. There are many services that Karaikal can offer — it can position itself as a ‘project carrier’, or a port where massive equipment (such as cranes) can be brought in. It can be a repair dock, at least for smaller ships. It should create these facilities and market them well, he says.
  The port can also attract business by being more efficient. Not being burdened with legacy labour, it can indeed be so, an aspect that was underlined by Mr G. R. K. Reddy, Chairman, Marg. In fact, a part of the proposed Rs 1,600-crore Phase-II of Karaikal port development, is to be spent on mechanisation. Mr Reddy promises nil waiting time at anchorage and 3.5 days of vessel turnaround time, compared with six days at Chennai or Tuticorin.
  Industry watchers say Mr Reddy, they say, is an excellent networker. It is well within his capacity to catalyse the development of the port’s catchment area, such as bringing in an SEZ project, said a source close to Mr Reddy.
  Link: http://www.thehindubusinessline.com/2009/05/04/stories/2009050450281200.htm
  
  
• Marg to complete Phase II of Karaikal Port in 24 months
  Fri, Apr 17, 2009, Money Control   more...

  

  Construction company Marg Ltd's greenfield project at Karaikal formally went on stream and received its first vessel. Karaikal Port is an SPV floated for port projects. The first phase of the of the Karaikal port construction is nearing completion and the second phase which has an investment of about Rs 16000, GRK Reddy, Chairman and MD, Marg said would be implemented over a period of 24 months. MARG owns 100% of the equity in the Karaikal Port and Reddy stated that he would be looking at diluting the company’s stake in the project within the next 24 months.
  Here is a verbatim transcript of the exclusive interview with GRK Reddy on CNBC-TV18. Also watch the accompanying video.
  Q: We understand you have received your first vessel at the Karaikal Port. Firstly, just about the financials, as we are given to understand your first phase is near completion. How much would the second phase really require in terms of funds and when would the revenues add on to your books?
  A: As far as the first phase is concerned, the revenues are on. Primarily keeping the requirement of the customers over there in that area, we are increasing the draft to 13.5-14.5 metres. Apart from that, we are mechanizing the berths and adding three more berths in the second phase.
  Q: In the second phase you have an investment for about Rs 1,600 crore. Debt-equity ratio is about 73:27. That translates into a debt of about Rs 300 crore. So, going forward, how are the interest costs going to pan out? In comparison, what is the revenue that you expect from this particular port?
  A: The second phase will be implemented over a period of 24 months. As far as the second phase is concerned, we are now doing the dredging and adding three more berths. In terms of revenues, we have demand from our customers. It is a debt-equity of 27% equity and 73% debt. The existing bankers who are in the consortium of the first phase have shown interest. We have got a couple of sanction letters from them as well on this.
  Q: In the 27% equity, who all are contributing to the equity portion? Is the entire stake with MARG?
  A: As on today, it is 100% owned by MARG. We have to bring this equity as the implementation of the project goes over a period of 24 months. We are looking at, diluting the stake in this Karaikal Port over a period of time in the next 24 months.
  Link: http://www.moneycontrol.com/india/news/business/marg-to-complete-phase-iikaraikal-port24-months/393801
  
  
• Work begins on Rs 1,600-cr Phase-II of Karaikal port
  Chennai, April 16, Business Line   more...
  Even as the first phase of construction of the Karaikal port is nearing completion, Karaikal Port Ltd, the company that is building the port, has begun work on the larger Phase-II.
  The second phase will consume all of Rs 1,600 crore, as against Rs 450 crore for Phase-I. In the first phase, space has been created for two ships to berth and after the second, there will be room for three more. Phase-II will also involve mechanisation of the port and further deepening of the waters to 16.5 metres. Right now, the port has a draft (depth) of 9.5 metres, which will be raised to 14.5 metres by July. Six dredgers are on the job.
  Karaikal Port Ltd is a special purpose vehicle floated by Marg Ltd for putting up the port project. As the first phase, the second also will be implemented at a debt-equity mix of 73:27.
  
  Handling capacity
  When the second phase is completed, in two years from now, the port’s handling capacity will rise to 25 million tonnes, from 4 million tonnes now.
  The port is hemmed in by two jetties — one that belongs to Sanmar on the North and the other of Chennai Petroleum Corporation on the South.
  As such, there is not much scope for raising the quay length, but Marg’s Chairman, Mr G.R.K. Reddy, says that the port’s handling capacity would be raised by mechanisation, rather than by increasing the number of berths. Eventually, Karaikal will have nine berths.
  The port, which was formally inaugurated on Wednesday, is described as “operationally ready” and features 2.4 lakh sq. metres of back-up space and 10,000 sq metres of covered warehouse.
  
  Demand Mr Reddy said that there was good demand for the port’s services, mainly from the cement companies in Tamil Nadu, who need to bring in coal and ship out cement. He said that the port was initially planned for 12 metre draft — the plan to deepen it to 16.5 metres is upon demand from potential customers.
  Further, Karaikal lies in the middle of the Tamil Nadu coast, midway between the two deepwater ports of the State —Chennai and Tuticorin. Mr Reddy observed that Chennai is saturated and Tuticorin has draft issues (it has a rocky bottom at 13 metres and hence deepening is very difficult). The port received its first cargo on Wednesday — cargo that was meant for the port itself. The German vessel, Beluga Fanfare, brought the port two Austria-made Liebherr cranes, each weighing 400 tonnes. They were lifted out of the vessel and put on the ground by two on-board cranes.
  Link: http://www.thehindubusinessline.com/2009/04/17/stories/2009041751261700.htm
  
  
• Private port at Karaikal begins its operations
  Thursday, Apr 16, 2009, The Hindu   more...

  

  GENERATING WAVES: The private port at Karaikal received its first project cargo vessel, M.V.Beluga Fanfare, on Wednesday.
  
  KARAIKAL: The private MARG Karaikal port at Vanjore in Karaikal district, started functioning on Wednesday and received its first project cargo vessel, M.V.Beluga Fanfare, which was berthed in the newly built facility.
  G. R. K. Reddy, Chairman and Managing Director of MARG Limited, sprayed holy water after performing special pujas in the port and received two huge harbour mobile cranes that were brought as cargo.
  S. A. Bhat, Chairman and Managing Director, Indian Overseas Bank, and M. S. Sundararajan, Chairman and Managing Director, Indian Bank, formally received the vessel.
  
  Agent of change
  Mr. Reddy said that the state-of-the-art, all weather, deep water port with two berths had a combined capacity of five million metric tonnes per annum and a back-up area of 2.40 lakh square metre.
  The project would act as an agent of change and will bring inclusive growth to coastal central Tamil Nadu and Puducherry.
  Mr. Reddy pointed out that MARG had acquired a cutter suction dredger with a dredging capacity of 2,000 cubic metre per hour for the port, which would be developed in three phases. The draft would be increased continuously to 13.5 to 16.5 metres in stages for handling all types of vessels.
  With the completion of phase-III of the project by 2015, the port would have a cumulative capacity to handle 45 million metric tonnes per annum. It was poised to serve as a congestion-free port and would serve customers with advanced cargo handling equipment, suitable warehouse facilities, appropriate and damage-free storage and faster turnaround of ships due to mechanisation.
  
  Salient features
  Special features of the port included single window professional service, paperless working, cost effective technology, best logistics support for door-to-door and online update for all customers to facilitate efficient handling cargo. It would provide services such as bunkering and repair of small ships.
  Mr. Bhat said that the new port would ease congestion in Mumbai, Chennai and Kolkata ports.
  Mr. Sundararajan, said that the new port would improve the economic growth and development of the nation.
  Mr. Mahapatra, former Secretary in the Union Ministry of Shipping, spoke.
  Link: http://www.hindu.com/2009/04/16/stories/2009041660710500.htm
  
  
• Karaikal port to get its first vessel today
  Wednesday, Apr 15, 2009, The Hindu   more...
  CHENNAI: The privately built the Karaikal port will receive its first vessel on Wednesday when M.V.Beluga Fan Fare, a “project cargo specialist vessel,” docks at the newly built berth in the morning.
  The deep sea, all-weather port is being built by Karaikal Port Private Limited (KPPL), at Vanjore near Karaikal, on a Build-Own-Transfer (BOT) basis.
  Of the nine berths planned to be built on 600 acres leased from the Puducherry government, two were ready, company officials said.
  Phase-I of the project was complete, they said, and the completed berths were being opened for commercial use, they said.
  The first phase was completed in a record time of 18 months, a senior government official said. The first two berths, each 213-metre-long, were complete and dredging has been completed to a depth of 9 metre, he said.
  M.V. Beluga Fan Fare, a 40-metre-long cargo vessel, would be the first commercial vessel docking at the port, and would carry two Liebherr Harbour mobile cranes of approximately 400 tonnes each as cargo.
  Link Shipping South, the company representing Beluga Carriers, said the cranes had a lifting capacity of 104 tonnes.
  The Karaikal port, with a total project cost of Rs. 1,400 crore, is intended to primarily handle cement and coal to serve the hinterland in Ariyalur, Perambalur and Tiruchi. The port is also expected to provide an alternative to the Chennai and Tuticorin ports, which are the major ports in the coastline but are separated by long distance.
  While the port has been opened for commercial exploitation, the railway line work to connect Nagore to Karaikal was progressing and the port could receive rail connectivity by July, the government official said.
  Link: http://www.hindu.com/2009/04/15/stories/2009041550040100.htm
  
  
• Karaikal port to be ready in three months
  Sunday, Mar 01, 2009, The Hindu   more...

  

  On ascendant path: Chief Minister V. Vaithilingam releasing the Vision 2025 document prepared by CII in Puducherry on Saturday.
  PUDUCHERRY: The work to develop the port at Karaikal will be completed in the next three months, Chief Minister V. Vaithilingam said here on Saturday.
  Releasing the Vision 2025 document prepared by the Confederation of Indian Industry, he said the development of the port at Karaikal will herald a new face in the development of the region.
  Majority of development projects taken up by the territorial administration will be centred at Karaikal region because of huge availability of land. Besides, the response and attitude of the people in the region towards development projects was “very encouraging,” he said.
  The government planned to establish a power plant with capacity to generate around 500 mega watts at Karaikal, he said.
  Complementing the CII for bringing out the document, he said the organisation should help government in identifying projects that can be taken up under public private partnership model.
  The CII’s vision document stressed the need to develop Puducherry as a knowledge services hub by establishing large and mini Special Economic Zones and Parks. The government should formulate a capacity building plan for the existing educational intuitions in Puducherry and also host institutions of global repute to make the territory an educational hub.
  The document also envisaged the need to provide housing facility to all through a new initiative called “Pondicherry Mass Housing Project.” It also lays down the roadmap for developing the tourism and industrial sectors.
  The data collected by CII while preparing the document revealed that the Gross State Domestic Product of the Union Territory stands at Rs.8130 crore. The GSDP grew at the rate of 5.2 per cent per annum between 2000 and 2007 but lagged the national growth rate of 7 per cent.
  While the secondary sector contributed 48 per cent and tertiary sector 47 per cent, the primary sector’s contribution was 4 per cent to GSDP, the document showed.
  Others who spoke on the occasion included Home Minister E. Valsaraj, Members of Parliament M. Ramadass, Members of the Legislative Assembly R. Viswanathan and R.K.R. Anantharaman and Chairman CII Puducherry Sriram Subramanya.
  Link: http://www.hindu.com/2009/03/01/stories/2009030151060300.htm
  
  
• Karaikal port to be ready by March
  Sunday, Nov 16, 2008, The Hindu   more...
  The first berth of the Rs. 1,400-crore facility is ready; ships may dock ahead of schedule
  

  
  STIMULATING GROWTH: A cutter suction dredger in action at the Karaikal port.

  KARAIKAL: The first berth of the Rs.1,400-crore Karaikal port is ready and the first ships may dock by March 2009, ahead of schedule, according to M. Subramanyam, Executive Director, Karaikal Port Private Limited (KPPL).
  The deep-sea, all-weather port is being built at Vanjore, near here, on 600 acres under a build-own-transfer (BOT) basis.
  The Puducherry government has leased out the land for 30 years to Marg Constructions in 2005. It is renewable twice for 10 years each. Speaking to The Hindu, Collector N. Vasanthakumar said the port would create tremendous scope for development. The projected employment (direct and indirect) by the company was around 6,000-8,000. It would provide increased stimulus for economic activity in the district.
  The work is progressing smoothly with four dredgers operating to provide a depth of 14 metres near the berths in the first phase, G. Rajeswar Reddy, Senior Manager (Projects), KPPL, said.
  Nine berths are planned and Phase I was earlier scheduled for completion by April 2009 with the construction of two berths and the breakwater. Mr. Reddy said that nearly 80 per cent of the breakwater work had been completed, besides the first berth. More than 70 per cent of the work on the second berth was also complete, and the port would be ready for its first visitors by March.
  The port is designed to primarily handle coal and cement for the industries in the hinterland at Ariyalur, Perambalur and Tiruchi. It will provide an alternative to Chennai and Tuticorin ports, which are far removed from these places, G. R. K. Reddy, chairman and managing director, Marg Constructions, said.
  With an initial handling capacity of 4 million tonnes and projected total handling capacity of 30-40 million tonnes, the port would benefit the industries by cutting the cost of transport from Chennai or Tuticorin, he said. Since coal would be handled to a large extent, a captive power plant was feasible, Mr. Rajeswar Reddy said.
  “We are ready to build even a 500 MW captive plant if the government authorises us,” he said. A container terminal to be ready by 2013-2014 will also enhance the types of cargo that can be handled by the port.
  
  Doubts over road connectivity
  However, as the Rs.415-crore Phase I nears completion, doubts over road and rail connectivity persist. The company has sought that work on the rail link between Nagore and Karaikal be expedited to ease freight movement. Western Bypass Road, a long-standing demand in the district, also needs to be completed soon to allow the port to function at its maximum capacity.
  Good roads connecting Karaikal and Kumbakonam, Tiruvarur and Thanjavur will benefit movers of cargo, Mr. Rajeswar Reddy said.
  Link: http://www.hindu.com/2008/11/16/stories/2008111655330500.htm
  
  
• Marg Constructions to develop Karaikal Port
  Thursday, November 22, 2007 ,DNA   more...
  MUMBAI: Infrastructure development company Marg Constructions has lined up Rs 1,120 crore investments for the development of the Karaikal Port, its wholly-owned subsidiary.
  It has also forayed into dredging with the acquisition of a cutter suction dredger named MARG Cauvery, for Rs 52 crore, funded by Indian Bank.
  Last month, the company signed an MoU with Malaysian firm Pembinaan Redzai Sdn Bhd for the management of the Karaikal Port. The agreement looks at sharing 3-4% of the revenue with the management company, depending on the milestones achieved.
  Marg has received concession agreement for seven berths at Karaikal Port, with a capacity of 14 million tonnes and plans to start with two in the phase one, expected to be operational by November 2008.
  Of the 425 crore planned capex for phase one, Marg has already invested Rs 140 crore in berth construction and break water.
  The berths have a 14 metre draft and will be able to serve ships as large as 60,000-1,00,000 tonnes.
  "We have already raised capex for phase one through consortium of banks and plan to use the same source for phase two as well," said GRK Reddy, chairman and managing director, MARG Constructions.
  A capex of Rs 700 crore has been planned for phase two.
  With the presence of cement companies like Dalmiya Cement and Madras Cement in the region, Karaikal Port sees an assured cargo traffic of about 4.5 million tonnes.
  MARG Cauvery, a non-propelled cutter suction dredger that Marg acquired, would be able to dredge at depths in the range of 5 to 25 metres.
  Reddy said, "We plan to develop dredging as a separate business vertical and are working on details for substantial further investment.
  The dredger would be deployed, for the initial seven months, at the Karaikal Port and Marg is already in talks with companies like the Dredging Corporation of India Ltd for leasing it out, once it completes work at Karaikal.
  In the next phase of the project, the company expects to invest around Rs 60-70 crore and would acquire a hopper dredger.
  Link:http://www.dnaindia.com/money/report_marg-constructions-to-develop-karaikal- port_1134699
  
  
• Marg deploys dredger at Karaikal Port
  November 19-25, 2007 ,Project Monitor   more...
  Marg Constructions Ltd, a diversified infrastructure development company headquartered in Chennai, has acquired a cutter suction dredger, Marg Cauvery, with a dredging capacity of 2000 cubm/hour. The dredger will be deployed in the dredging works of Karaikal Port, Pondicherry, which is currently being developed by the company.
  The non-propelled cutter suction dredger will be able to dredge at depths in the range of 5 m to 25 m. The vessel, designed to 1191 GRT/358 NRT, is 73.20 m in length and 15 m in breadth with keel to most height of 12 m.
  Meanwhile, Karaikal Port Pvt. Ltd, a wholly-owned subsidiary of Marg Constructions, has tied up with Pembianaan Redzai Sdn Bhd of Malaysia to form an independent company to manage the all-weather deep port, which Marg is developing.
  The joint venture with Pembianaan will have an equity capital of around $1 million, G.R.K. Reddy, CMD, Marg Constructions, said at a press conference. The Malaysian company is also keen to pick up equity in KPPL, though no decision has been taken so far. The port will be developed in three phases and cost over Rs 1,000 crore. It will have a total capacity to handle 10 million tonnes of assorted cargo.
  Phase-I of the project, envisaging a 3.3 million tonne capacity, will come up by the end of 2008. The Rs 416 crore investment in this phase will have an equity component of Rs 114 crore and a debt portion of Rs 302 crore. KPPL has so far invested Rs 140 crore in the project.
  Work on phase-II, involving a four million-tonne capacity, will commence in January 2009. It will cost around Rs 250 crore. Apart from port development, the company is also involved in development of malls, special economic zones, IT parks, serviced apartments and townships, and residential and commercial projects.
  
  project background Marg Constructions Ltd has signed a concession agreement with the Pondicherry government to build a state-of-the-art all-weather port in Karaikal. The port will have a phase-wise development capacity of up to 10 million tonnes of cargo and cater to the hinterland of central Tamil Nadu. The project, coming up on 600 acres of land, will be developed on the BOT model.
  Envisaged as a deep-water lagoon-type harbour connected to sea by an access channel and protected by breakwaters, Karaikal Port will be able to handle large volumes of import and export traffic. The port will also have warehousing facility on a one-lakh sq. ft space for cargo handling.
  The company entered into port development in January 2006 when the Pondicherry government awarded Karaikal Port Pvt. Ltd, a wholly-owned subsidiary, the port project on BOT basis.
  Link: http://www.projectsmonitor.com/detailnews.asp?newsid=14906
  
  
• Marg Constructions achieves financial closure for Karaikal port project
  14 November 2006   more...
  Chennai: The Chennai-based MARG Constructions Limited has achieved financial closure for the Rs416-crore Karaikal port project being developed through its wholly owned subsidiary Karaikal Port Private Limited (KPPL).
  The project build-operate-transfer (BOT) model project will have a debt of Rs302 crore and Rs114-crore equity. The debt portion has been raised from a consortium of five banks and a financial institution.
  According to B G Menon, CEO, infrastructure business unit, MARG Constructions, the Karaikal port will cater to the industrial belts of Tamil Nadu and Pondicherry.
  Strategically located between Chennai and Tuticorin, this all-weather, deep-water port at Karaikal is expected to handle 4-million tonnes of cargo in the first phase. This phase of the port design and development includes the construction of two berths, dredging and reclamation of land, construction of berths and breakwater, construction of utility space, storage areas and other works. The channel would be dredged to a depth of 13 meters and the turning circle and the berth area to a depth of 12 meters.
  The onsite construction and development activities for the first phase of project will begin shortly. L&T Ramboll have been appointed as the technical consultants for this project.
  Link:http://www.domain-b.com/economy/infrastructure/ports/20061114_financial.html