Kanyakumari Enayam Port Limited

Financial Feasibility

Construction Cost (Phase-1) : Rs.5,840 Cr

Overall Project Cost (Phase-1) : Rs.6,275 Cr

Project IRR : 10.80%

Equity IRR : 11% (for Debt equity ratio of 70:30)

  • The Project IRR of 10.8% is more than WACC of 10.60%
  • The Equity IRR of 11% for Enayam Port is higher than the return of 8-9% received by the major ports on a sizeable portion of their investments.

Implementation Plan

Enayam Port is proposed to be developed as a Landlord Port, wherein, the Port Authority will make an investment of Rs.3,185Cr by forming a SPV on construction of Breakwaters, Dredging and Reclamation and the balance Rs.3,046 Crores will be under  Private Sector investment for the development and operation of Container Terminals(PPP Mode).

Formation of SPV

A Special Purpose Vehicle (SPV) is proposed to be formed for development of Enayam Port with initial equity investment from the three Major Ports in Tamilnadu - VOC Port Trust, Kamarajar Port Limited and the other Port (to be finalised). 

The share of initial equity by each Port will be decided in due course.