The Hindu Business Line : ABG is highest bidder for Kandla box terminal project

THE ABG Group has emerged the highest bidder to develop and operate a Rs 200-crore container terminal at Kandla Port by quoting a revenue share of 48.997 per cent.

ABG had bid for the project by tying up with Voltry Terminals which runs a box facility at Genoa in Italy to comply with the minimum experience criteria of operating a two-lakh twenty-foot equivalent units (TEU) capacity terminal for the past three years.

The Afcons-Hamburg Port Authority combine was the second highest bidder with a revenue share quote of 33.399 per cent while Gammon India-Mercy Docks & Harbour team landed in the third spot with a quote of 16.974 per cent when the price bids were opened by the Kandla Port Trust on Thursday.

Revenue share implies the percentage of the annual operating gross revenues which the private operator is willing to share with the Port Trust.

Company officials said that ABG's winning bid was the highest-ever revenue share quoted by a private container terminal operator after the Government decided to develop container terminals at major ports with private investments on a build, operate and transfer (BOT) basis. P&O Ports had quoted 37.123 per cent for the terminal at Chennai, while the Maersk-Concor combine had quoted 35.503 per cent for the terminal at JNPT. For the international container transhipment terminal at Kochi port, the winning price bid of Dubai Ports International was 33.33 per cent.

The board of trustees of Kandla Port Trust is slated to meet on April 28 to consider and approve the highest bid of ABG-Voltry Terminals after which the proposal will be submitted to the Ministry of Shipping for a final clearance.

When fully operational, the new container terminal will have the capacity to handle 4.5 lakh TEUs from two berths (nos 11 and 12) having a combined quay length of 520 metres with a draft of 13.5 metres. The private operator is expected to handle a minimum throughput of 1.7 -1.8 lakh TEUs during the first year of operations and scale it up to 4.5 lakh TEUs by the fifth year.

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