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Mundra Port and Special Economic Zone Ltd., the largest private port in India, has won a contract to develop a coal handling terminal at the western port of Mormugao in a deal which is also set to have a positive effect on bunker volumes at Goa's leading port.

The contract, which was agreed on a design, build, finance, operate transfer (DBFOT) basis, involves developing and operating a berth at the port to handle approximately 6.5 million tonnes of cargo.

During the first year, the terminal is expected to handle 5 million tonnes and generate a revenue share of 20 percent with the Mormugao Port Trust.

The terminal would have a concessional period of 30 years and is scheduled to begin operations in 2012. The funding would be through internal accruals and debt, industry sources said.

The port of Mormugao is an important location for handling coal for industries in Goa, Karnataka and southern Maharashtra. Leading bunker suppliers at the port currently include Hindustan Petroleum Corp. Ltd. and Indian Oil Corporation Ltd.

News of the involvement of Adani Group - owner of Mundra Port and Special Economic Zone Ltd. - at Mormugao will also no doubt lead to speculation over whether joint venture bunker firm Chemoil-Adani will begin supplying at the port in the near future.

The company, which began supplying marine fuel at Mundra in January 2009, achieved sales volumes of 50,000 metric tonnes in both March and April 2009 and the company expects sales to double to around 100,000 tonnes per month by the end of this year.

Besides Mundra, deliveries are also being carried out at the ports of Kandla, Sikka, Jamnagar and Bedi, all of them located within the state of Gujarat.

In June, Chemoil revealed that it also plans to begin supplying in the southeastern port of Chennai by the end of 2009.

Meanwhile, Mundra Port is also currently developing a 20-billion-rupee coal handling terminal at Mundra and another multi-purpose cargo terminal at Dahej, Gujarat in joint venture with Petronet LNG.