Bhubaneswar, Dec. 18: Chennai-based Creative Port Development Pvt Ltd today signed an MoU with the Orissa government to develop a deepwater, all-weather, mechanised port on the Subarnarekha river mouth at Kirtania in coastal Balasore.

Creative Port will develop the port on the build, own, operate, share and transfer (BOOST) basis for 30 years.

The project includes a dedicated rail-cum-road connecting the port to National Highway No 5 and a rail network at Jaleswar.

The first phase of the port, with a handling capacity of 10 million tonnes per annum (mtpa), will be built at an estimated cost of Rs 2,000 crore. It is planned to be commissioned by 2010 and the handling capacity would ultimately go up to 50 mtpa by the tenth year, said Ramani Ramaswamy, joint managing director of Creative Port. Ramaswamy inked the MoU on behalf of the company.

Kirtania would be a world-class commercial port, Ramaswamy added.

According to the provisions of the MoU, the developer would arrange all investments for the project.

The Orissa government would share revenue at the rate of 5 per cent until the fifth year, 8 per cent from the sixth to the tenth year, 10 per cent from the eleventh to the fifteenth year and 12 per cent for the remaining 15 years. The developer would enjoy the concession for 30 years, extendable by an additional 20 years.