Channel: Investment

Friday, July 02, 2010
UK based Eredene Capital PLC bags GBP 207m Container Terminal bid
 
 

On June 28th 2010, Eredene Capital PLC, a specialist firm that invests in infrastructure projects in India, won a bid in a consortium to build and operate the Container Terminal at Ennore Port in the Indian State of Tamil Nadu. The Ennore port, formed in 2001, is one of the 13 major ports of India and is located 24km (15 miles) north of Chennai (formerly known as Madras).

 

Eredene Capital PLC was formed in 2005 with a vision to invest in logistics, distribution warehouses, ports and port services in India and since then it has invested in ten projects in India, out of which three are generating revenues and a fourth is taking sales deposits.

 

The consortium is headed by Spanish port operator, Barcelona-based Grup Marítim TCB SL (www.gruptcb.com). Currently Grup Marítim TCB SL operates 13 terminals in 6 countries and all of them have a combined installed capacity of 4.5 million TEUs (20-foot equivalent units).

 

The other members of the consortium include Spain’s leading construction, concession, environmental development, and industrial groups, OHL (Obrascón Huarte Lain, SA - www.ohl.es) and from the Indian side, Lanco Infratech Ltd (www.lancogroup.com). The OHL Group has 6 major divisions: national construction, international construction, concession infrastructures, environmental, development and industrial and they have over 90 years of domestic and international experience. The Indian integrated infrastructure enterprise Lanco Infratech Ltd has subsidiaries and divisions in diverse verticals namely, Construction, Power, EPC, Infrastructure, Property Development, and Renewables.

 

The estimated project cost of the Ennore Container Terminal is GBP 207m (Rs 1437 crore) and Eredene Capital Plc has a 22% stake in the consortium. Eredene's commitment to the project corpus is approximately GBP 23m and they will have 48 months in which to raise the aforementioned sum. Eredene aims to fund the capital utilising their existing cash reserves in the initial few months and then later on raise additional capital into Eredene to fund the remaining capital requirement.

 

Eredene has an experienced investment advisory team placed in India which is headed by Mr Nikhil Naik. He was previously Regional Director of P&O in India and CEO of Mundra International Container Terminal.

 

The terminal will be competing with the Chennai port for business. The Ennore terminal would score better in terms of connectivity with major highways as compared to the Chennai port. Another factor in favour of the new terminal would be the absence of city traffic that impacts land transfer of containers to and from the Chennai port.

 

For more details about Eredene Capital Plc visit http://www.eredene.com/

 

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