The Hindu Business Line : Bidding date for Vizhinjam terminal extended to July 30

THE last date for submitting the techno-economic bids by prospective investors for the development of the proposed international container transhipment terminal at Vizhinjam, near here, has been extended by seven weeks.

The Department of Ports of the Kerala Government had fixed June 8 as the last date for receiving the bids. It has now been extended to July 30.

Dr Jayakumar, Chief Executive Officer, Vizhinjam International Seaport Ltd, told Business Line that the Government decided to postpone the date on the request of some of the prospective bidders. The Government, too, thought that it would help in getting "more meaningful and competitive" bids.

He said the investors sought more time on the ground that the project being a greenfield venture and involved the complex dynamics of container transhipment business, they needed detailed discussions with supporting companies.

So far, 18 companies have bought request for proposal (RFP) from the department. Some of those who had earlier expressed interest in the project, but refrained from submitting the bids for various reasons last time, also find place in the new list.

They include Beckett Rankine, London; Gammon India; Afcons Infrastructure, Mumbai; IL&FS and Hili Company; A.R. Traders; Sical Logistics and L&T ECC.

The new entrants include Marubeni of Japan; Giss-Eta of the US; Zoom Developers, Mumbai; CMA CGM Global (India) Ltd; Essar Shipping; First Wallstreet Group and Consortium, New York and Ital-Thai Development Company, Bangkok.

Dr Jayakumar explained that the Government had to invite fresh tenders as the bidders last time had asked for modifications in the draft licence agreement. For one, they wanted the project development fee of Rs 25 crore, which had to be paid upfront, be reduced.

The Government subsequently modified it to Rs 5 crore as upfront payment with the balance to be paid after getting all the clearances.

Similarly, the clause on achieving "milestone capacities" in the earlier draft licence agreement was also relaxed on the request of the bidders.

Dr Jayakumar said the prospective bidders, who had bought RFP, felt that the project fundamentals are strong and that project has been structured very well. However, they wanted more time to look at all the aspects and before submitting the bids.

The first phase of the project, estimated to cost Rs 1,850 crore, envisages construction of 1,245-metre long berth to handle vessels of 8,000 TEU. The phase is slated to be completed in five years. The total cost of the project is put at Rs 4,200 crore.

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