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Malaysian firm in $2bn Kerala port project

Malaysian firm in $2bn Kerala port project

Mumbai: A consortium comprising India's Lanco Group of Companies and Malaysia's Pembinaan Redzai Sdn Bhd has secured a US$2 billion (RM7 billion) deal to develop the Vizhinjam International Transshipment Terminal Port in India.

Last month, the Kerala state government issued a Letter of Intent to Lanco, and the licence agreement for the project is expected to be signed next month.

In a statement, Lanco said the licence agreement will be signed between the Kerala state government and the Special Purpose Company (SPC) to be incorporated by the Lanco-Pembinaan Redzai consortium members.

The Kerala state government will hold a 24 per cent equity stake in the SPC, while the balance equity will be held by the consortium.

Lanco said the port project was awarded to the consortium of Lanco and Pembinaan Redzai after the Indian government formally granted the security clearance to the consortium earlier last month.

Pembinaan Redzai owns some 40 per cent stake in Westports Holdings Sdn Bhd, the holding company for Westports Malaysia Sdn Bhd that runs Westports at Port Klang.

The Vizhinjam port project involves the development of an international container transshipment port. The port was put on tender by the Kerala state government in August last year. In February this year, Pembinaan Redzai teamed up with Lanco to submit a bid for the port project, along with four other consortium bidders.

The project is envisaged to be developed in four phases, with an ultimate capacity of 6.5 million teu. [21/10/08]