The Hindu Business Line : CCEA to decide on Kochi box terminal contract

THE Cabinet Committee on Economic Affairs (CCEA) will shortly take a final view on awarding the contract for the development of an International Container Transhipment Terminal (ICTT) in Cochin port to Dubai Ports International (DPI).

"The proposal submitted by DPI is being submitted to the CCEA for its approval since the project is not being developed on the normal build, operate and transfer method," a Shipping Ministry official said. The bid documents contain certain conditions that are not part of the original guidelines for developing port projects under the BOT route. For instance, the Government will first hand-over the existing berth at the Rajiv Gandhi Container Terminal (RGCT) to the successful bidder.

"Since this is a deviation from the original guidelines for BOT projects, it was thought appropriate to secure CCEA approval for the project," he disclosed.

On March 25 this year, DPI had emerged as the successful bidder in a competitive bidding process by quoting the highest revenue share of 33.30 per cent for developing and operating the ICTT.

The ICTT is expected to cost around Rs 2,118 crore and is proposed to be developed in phases basically to handle mainline vessels.

To make the project viable, a minimum volume of container traffic is required at the port, which handled 1,69,965 twenty-foot equivalent units (TEUs) during 2003-04.