Adani Ports and Special Economic Zone (APSEZ), India’s largest private multi-port operator, said it signed a 50-year Build Operate and Transfer (BOT) agreement to develop and operate a container terminal at Yangon port, Myanmar.
BOT is a form of project financing wherein a private entity receives concession from the private or public sector to finance, design, construct, own and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.
The project will be completed in two phases. The construction of the terminal will commence from June and the first phase of the project will be completed by June 2021, APSEZ said.
The total project cost for two phases will range from USD 275 million to USD 290 million, it added.
The terminal will have a quay length of 635 meters with capability to handle three vessels at a time.
The proposed project is a part of APSEZ strategy to expand its container terminal network in South-East Asia. The company said that the new container terminal will also act as a network point to feed into its upcoming transshipment hub at Vizhinjam
Post the completion of the project, APSEZ will become the first Indian company to set up a container terminal outside India.
It also comes in the wake of Chinese companies building similar ports in South East Asia, including Myanmar.
APSEZ said that it would introduce its operating and technological expertise to Myanmar by using modern equipment to ensure efficient handling of containers, thereby reducing the average turnaround time of the vessels.
The port operator added that all requisite clearances and permissions for setting up of the terminal at Yangon have been received in the form of Myanmar Investment Commission (MIC) permit.
The terminal is likely to generate employment for over 1,100 local people.
“This investment is a part of APSEZ strategy to develop a network of container terminals across South-East Asia which will also enable APSEZ to leverage and draw synergies with other APSEZ Ports on the east and south coast of India”, said Karan Adani, Chief Executive Officer and Whole Time Director, APSEZ.
Adani Ports, part of the Adani group currently operates ten ports across six states in India.
Source: UN
Image Courtesy:Container news
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