Hyderabad-Based Lanco Infratech Limited has informed that the company has bagged a Letter of Intent (LoA) from Kerala Government, for Vizhinjam international transshipment terminal port project work. 

The Project was awarded to the Consortium of LANCO and Pembinan Redzai Sdn Bhd of Malaysia after the Government of India formally granted the security clearance to the Consortium earlier this month. 

The Port project was bid out by the GOK in August 2007 on a 30 years’ Concession basis and involves an estimated investment of Rs.8, 300 crore. The project involves development of international container transshipment port with an ultimate capacity to handle 6.5 million TEUs (twenty foot equivalent units) and envisaged to be developed in 4 phases.

Under the arrangement, the Government of Kerala would have 24% equity stake in the SPC and the consortium members would hold the rest. 

According to the company, the License Agreement for the Project will be signed in next 4-6 weeks between GOK and the Special Purpose Company (SPC) to be incorporated by Lanco Consortium for the Project. 

On completion, the project is anticipated to lure a major share of the container transshipment traffic of India from the ports of neighboring countries.

Angel Broking, one of the leading stock brokerage firms, has maintained a buy rating on Lanco Infratech with a target of Rs 413 in its September 12, 2008 research report.