The Hindu Business Line : Dubai Port Authority keen to participate in Vallarpadam project

DUBAI Port Authority, the globally recognised container terminal operator, seems to be exploring the possibility of participating in the container transhipment terminal project proposed by the Kochi Port at Vallarpadam in the private sector.

As part of this, a senior official of the Dubai Port Authority had recently visited the port to conduct an on-the-spot evaluation of the Rs 2,000-crore project including the project proposals, present equipment facilities at the Rajiv Gandhi Container Terminal (RGCT), eligibility criteria to participate in the tender etc.

According to port sources, the Dubai Port Authority had evinced interest in implementing the project as well as to take over the existing RGCT as stipulated by the port management in the tender conditions.

The company official had held an informal meeting with senior port officials in the presence of the Shipping Secretary, Mr D.T. Joseph, who was here at that time in connection with the meeting of the Steamer Agents' Association.

The port management is understood to have agreed to make some relaxations in the tender conditions stipulated for the project and also expand the container stacking yard in the port premises.

The flexibility of conditions offered by the port include extension of the period to set up the project at the Vallarpadam site after taking over RGCT, instalment payment of the upfront fee etc. However, it is not clear whether the Dubai Port Authority is interested in the BOT route or through the Government-to-Government basis to implement the project.

It may be recalled that the Dubai Port Authority had recently commenced its operations in the Vizag container terminal project in association with an Indian Shipping company.

Meanwhile, the port management has floated a global tender for the fourth time to develop the container transhipment terminal project making several relaxations in the conditions to encourage more response from bidders.

The notification calling for request for qualification invites applications from companies or consortiums for development, , including augmentation facilities and operations of the existing RGCT. The port has set a deadline of January 15 to receive the tenders.

In the notification, the minimum networth of the applicant has been fixed as $80 million as against $200 million earlier. The aggregate cash accruals of the applicant for the last three financial years have been reduced to 1/4th amount of $40 million from $100 million.

Another condition is that the applicant must have managed and operated one or more container terminal with an annual combined throughput of not less than five lakh TEUs. In the previous bid, the port had asked for 15 lakh TEUs.