New Mangalore Port Trust (NMPT) has informed that it has inked concession pact with Sical Iron Ore Terminal (Mangalore) Ltd, an arm of Chennai based Sical Logistics.

As per official sources, the agreement has been signed with the aim to establish mechanized iron ore handling plant on build, operate and transfer basis.  

Sources added that the company has decided to set up the proposed facility at deep draft multipurpose berth No 14.

The company will pump Rs 277 crore for the new plant, which is likely to be on stream by December 2012.

NMPT representatives stated in a communiqué that the funding of the entire project will be done by Sical, which has offered 37% of the gross revenue share to the port as well as Rs 11 crore as license fee annually.