Sical Logistics Ltd, India’s leading provider of integrated multi-modal solutions for bulk, container and offshore logistics, today announced its strategic partnership with MMTC Limited, the country’s premier international trading company, for its greenfield iron ore terminal project at Ennore Port. MMTC will hold 26% stake in Sical Iron Ore Terminals Ltd (SIOT), the special purpose vehicle (SPV) building the 12 MTPA (mn tonnes per annum) iron ore terminal and Sical will hold 63% stake. The balance 11% stake will be held by L&T Infrastructure Development Projects Ltd.
The shareholders agreement was signed on behalf of the respective companies by Sical’s Chairman Ashwin C Muthiah, MMTC’s Director (Marketing) Sunir Khurana and L&T IDPL’s Joint General Manager R Chandrasekaran .
The terminal is expected to be operational in a phased manner by early 2010, with a throughput of 6 MTPA in phase 1. SIOT and MMTC have signed the offtake agreement for 3 MTPA of iron ore for the first phase, which will be enhanced post the capacity addition in phase 2 of operations. The company will execute the second phase within 2 years of commencement of operations of phase 1.
On the signing of the agreement with MMTC, Ashwin C Muthiah, Chairman, Sical Logistics said, “We are pleased to partner with MMTC on our greenfield iron ore terminal project at Ennore Port. Both Sical and MMTC share a common vision of driving growth through investments in trade-related infrastructure in the country. We are confident that the upcoming terminal will greatly benefit the industry by enhancing capacity and reducing lead times in reaching international markets, with innovative and efficient logistics solutions. We look forward to a mutually beneficial and long lasting partnership in the years to come.”
Mr.Sanjiv Batra, Chairman & Managing Director of MMTC said, “MMTC is delighted to be associated with a premier logistics player like Sical, known for its world class logistics infrastructure and services. With this agreement we will be able to leverage our shared expertise in international trade and logistics for a fresh, more customer centric approach. The terminal will not only facilitate our global trade of iron ore but also enhance our access to new markets.”
The total project cost is estimated to be Rs 5 bn- Rs.3.9 bn in Phase 1 and Rs.1.1 bn in Phase 2. Sical achieved Rs 3.4 bn financial closure in March 08 with a syndication of leading banks.
Sical established SIOT in 2006 to build India’s largest iron ore terminal at Ennore on a build-operate-transfer (BOT) contract of 30 years. The terminal will offer state-of- the-art infrastructure and facilities including elaborate rail siding and large stock pile capacity. Initially, the terminal will handle Panamax and Cape size vessels up to 150,000 MT DWT; after dredging, the terminal will be able to handle vessels of 250,000 MT DWT. The contracts for the implementation of the project have already been awarded and construction is progressing as per schedule.
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About Sical Logistics
Sical Logistics Ltd is India’s leading provider of integrated solutions for multimodal bulk and containerized logistics and offshore logistics, annually handling more than 26 million tonnes of bulk cargo and 500,000 TEUs of containerized cargo.
Sical provides services in the following segments:
- Bulk logistics—Stevedoring; port terminals; CHA and shipping agency; trucking; railroad; warehousing
- Container logistics—Container terminals; ICD; CFS
- Offshore logistics—Platform supply vessel; cutter suction dredger
Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin; 225,000 square feet of storage across 17 warehouses; owned and regularly contracted fleet of more than 1000 transport vehicles; container freight stations at 3 locations across India; Sical Torino, a deepwater capable platform supply vessel in North Sea, and Sical PortoFino, a newly built cutter suction dredger.
About MMTC Limited
MMTC is a Government Company and is India’s leading international trading company, with an annual turnover of around United States Dollars $ Six (6) billion. Minerals, Precious Metals, Metals, Fertilizers, Coal Hydrocarbons, Agro Products, are the main sectors of its activities.
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