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Article on the B.O.O.S.T Concession Agreement Signing of Rewas Port

The Economic Times Newspaper - March 23rd, 2002


AM ]

MUMBAI: The Maharashtra government has signed a build, own,

operate, share and transfer an agreement with a Mumbai based
company for developing a port at Rewas for around Rs 1,500 crore.
The Maharashtra Maritime Board signed an agreement with Mumbai-
based Amma Lines, a port-cum-terminal builder, to develop Rewas

Rewas was among the seven minor ports for which the state
government invited private investments in May 1996. Though
Vadhwan Port attracted an international port developer -— P&O Ports,
a string of controversies forced the project to be shelved. The minor
ports, once developed, are expected to decongest the major port at
Nhava Sheva, and wean away the dwindling cargo from Mumbai.
According to ALL officials, the agreement will have a concession
period of 50 years and the port will be built in two phases. The first
phase will see five berths -- two bulk berths, two container berths and
one petrochemicals berth, and will be built in five years. The second
phase will see an LNG terminal at Rewas.

The port has already been approached by major shipping lines such
as Maersk and Evergreen. “We are in talks with international shipping
companies to lease out berths. The port will levy various port and
anchorage charges and pilotage fees, while lines will manage their
berths and stevedores,” says Hemanth Meka Rao, business
development manager. Wapcos India has studied the feasibility of the
Rewas port. “The country is presently handling only 300m tonnes, with
the existing ports working over-capacity. With the tonnage
conservatively estimated to grow to 1,300 mt by 2020, we need more
ports to accommodate the quadrupling traffic”, says Mr Rao.

The new BOOST agreement improves on the previous BOOT

agreement, giving the government a share in the development, said
Vijay Papa Rao, managing director of ALL. Primarily a port/terminal
developer for the last two decades, Amma Lines claims to have built
several ports and jetties around the country, such as the Ennore Port
with Hindustan Construction. They have also built several jetties for
Elephanta Island, Vikram Ispat, Rashtriya Chemicals and Fertilizers,
Bombay Port Trust, BSES amongst several others. “We have done
extensive studies on Rewas and found the depth to be ideal for
bringing in new generation container vessels. With a 19 metre channel
depth, and berth depth of 21 metres, the port will be able to bring in
the largest mother ships to its waters,” says Rao.
Managing Director, Dr. P
Vilasrao Deshmukh shar
Hemanth Meka Rao look
MD Dr. Paparao along w
Minister of State for Port
State for Home Shri Krip

MD Dr. Paparao acceptin

Rewas-Aware Port from
Deshmukh as Executive
and Business Developm

MD Dr. Paparao acceptin

Rewas-Aware Port from
Mr. N. Ramarao