Adani Ports bags Ennore container terminal project.

Ennore Port Ltd. has issued a Letter of Award (LoA) to Adani Ports & Special Economic Zone Ltd. for its Rs.1,270-crore container terminal project.

The LoA is effective February 14. The next step is finalising various parameters, including the formation of a special purpose vehicle and financial closure of the project, said a Port official. Usually, a Letter of Intent is issued before the award letter. However, with the general election roadmap set to be announced soon, it was decided to issue the LoA directly, the official said.

Adani Ports emerged as the highest bidder by offering a revenue share of 37 per cent, beating Dubai-based DP World, which offered 27 per cent.

For the Gujarat-based $9-billion Adani group, it will be the first container terminal project in an eastern port.

It was short-listed for the mega container terminal at the Chennai port, but offered low revenue share, which was rejected by the port.

While Adani will invest Rs. 1,270 crore to build the terminal, Ennore Port will invest around Rs. 200 crore on deepening the berth and providing rail connectivity.

HBL