Eredene wins £200m port build contract

Steve Dinneen
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AIM-listed Eredene Capital yesterday announced it has won a £200m contract to build and operate a vast container terminal in southern India.

It clinched the lucrative contract as part of a consortium including Spanish port operators Grup Marítim TCB, international construction firm Obrascón Huarte Lain, and India’s Lanco Infratech.

Eredene has a 22 per cent stake in the consortium. Its equity commitment will be up to £23m, spread over two years.

Company sources say the commitment will initially be funded through existing cash reserves and then through the raising of additional capital.

Alastair King, founder and chief executive of Eredene, said: “This is a major milestone for Eredene. The Ennore Container Terminal is a world class project, with an excellent growing hinterland and good existing transport connectivity.

“This project builds on our expertise in ports and port infrastructure and on our commitment to the dynamic Indian economy.

“We look forward to working with our partners and contributing solidly to the designing, constructing, financing and operating of the new Ennore container terminal.”

The Ennore Port in the Indian State of Tamil Nadu is one of the 13 major ports in India. Work on the new terminal is scheduled to take 33 months and it is expected to be operational by the end of 2013.