The Hindu Business Line : Mumbai port mulls taking up box terminal project on its own

WITH the Mumbai port's efforts to develop the proposed Rs 900-crore offshore container terminal project through private participation on BOT basis coming a cropper, the port authorities are now exploring alternative options to take up the project. The options include formation of a joint venture with a private terminal operator and taking up the project on its own.

"There was no response from the five shortlisted parties for the offshore container terminal project. But that will not deter us from taking up the project, considering its importance for the future of the port," Mr Ashok Kumar Bal, Chairman of Mumbai port, told presspersons here. Asked how the port would fund the project on its own, he said: "I do not think funds will be a constraint.

We have some internal resources and we can raise part of the money from the market." He, however, said the port was examining the different options, which would then be placed before the board and subsequently submitted to the Government for final approval.

Replying to another question on the poor response, he said a variety of factors could have discouraged private operators from taking up the project.

"One reason could be the apprehension whether the terminal could generate the 1.2 million TEUs of cargo as projected.

Another factor could be the evacuation constraint. But I do not think the JNPT third terminal bidding process had any impact on our terminal's bidding process," Mr Bal said.

On the BPS container terminal in the port, he said the port had shortlisted one bidder, the Sea Consortium (SeaCon) and the contract would be awarded in the next two or three months.

As the terminal is at present in operation, the bidder will have to deploy some additional equipment and operate it on the revenue sharing basis with a minimum guaranteed throughput (MGT) of one lakh TEUs, he said.

The additional equipment could be set up within a month from the zero date, with an estimated investment of Rs 87 crore, he added.

The port ended the last fiscal with a throughput of 29.96 million tonnes, which is about 11.8 per cent more than that of the previous year, to rank sixth among the Indian major ports in terms of throughput.

Growth has been registered in both PoL traffic, which rose by 3.07 million tonnes, and non-POL traffic by 0.37 million tonnes.

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