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P. Manoj

Bid for Mumbai, Chennai box terminals

Bangalore , July 10

Engineering and construction giant Larsen & Toubro (L&T) is ready to rope in the Philippines port operator International Container Terminal Services Inc (ICTSI) as an alternate operator if the world's largest container port operator Hutchison Port Holdings (HPH) fails to get the long-awaited security clearance from the Union Government to bid for box terminal projects in Mumbai and Chennai ports.

Alternate partner

"L&T has not dropped Hutchison as its consortium partner.

But, in the unlikely event of Hutchison not getting the security clearance, L&T has informed us that it would like to bring on board ICTSI as an alternate management contractor to bid for the off-shore box terminal project in Mumbai port," a Shipping Ministry official told Business Line.

In the absence of a security clearance for Hutchison, the Mumbai Port Trust authorities have been repeatedly deferring the last date for submission of financial bids by the short-listed bidders. Whereas, the Chennai Port Trust is yet to open the financial bids submitted by three bidders including L&T-Hutchison combine in November last year to build a new container terminal at the port, for want of security clearance.

Awaiting clearance

The Cabinet Committee on Security had referred the issue of security clearance for Hutchison to the National Security Advisor and a decision is awaited.

In the past, Hutchison was denied permission to bid for port projects in India by the Government citing its alleged links with mainland Chinese authorities.

"Even though, the financial bids for the Chennai terminal has already been submitted, L&T has sought the Government's permission to change the partner in case security clearance for Hutchison fails to come through," the Ministry official said.

L&T has also submitted an EoI to bid for a new container terminal at the Jawaharlal Nehru port and has kept the "options open" about its management contractor.

ICTSI

The Philippines and Manila Stock Exchange-listed ICTSI, owned by Filipino businessman, Mr Enrique K. Razon Jr, runs the Manila International Container Terminal, which was the first port privatisation effort by the Philippine Government, a naval supply depot terminal at the Subic Bay Freeport Zone in Olongapo in the Philippines, Bauan Terminal at Batangas in the Philippines, stevedoring and cargo handling services at Makar Wharf, Port of General Santos, South Cotabato, the Philippines.

It also operates the Suape Terminal (Brazil), Baltic Container Terminal (Gdynia, Poland), Naha International Container Terminal (Japan), the International Container Terminal at Toamasina (Madagascar) and a terminal at Makassar in Indonesia.

In the first quarter of 2006, ICTSI handled 4,59,403 twenty-foot equivalent units (TEUs) comprising 2,92,487 TEUs from its domestic operations and 1,66,916 TEUs through its overseas box terminal operations in Brazil, Poland, Madagascar, Japan and Indonesia.

"ICTSI is keen on participating in the Indian ports privatisation programme and has expressed interest to join L&T as a management contractor," the official added.

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