The Hindu Business Line : Kochi port plans to cancel tender for capital dredging

Kochi, April 9 The Cochin Port Trust intends to cancel the tender for capital dredging in the channel as the rates quoted by the foreign dredging company for the work are exorbitantly high.

Highly placed sources in the port told Business Line that as against the estimated cost of Rs 486 crore for dredging the channel, the Belgium-based Dredging International NV had quoted an amount of Rs 805 crore. “Since the amount is unreasonably high, we have decided to cancel the tender,” the sources said.

This phase of dredging, according to sources, is the main capital dredging required to be carried out in the channel in order to achieve a depth of 14.5 metres as per the contractual agreement with DP World, the container terminal operator in Kochi.

Required depth

Capital dredging is one of the prerequisites prior to the development of the first phase of the Vallarpadam International Container Transhipment Terminal.

The port has to provide the required depth in the channel by November next year, the sources added.

The port had received two tenders for the execution of the work, including one from the Kandla-based Jaisu Shipping. However, the Indian company did not qualify for the work.

Considering the urgency of the situation, the port is planning to float a new tender to carry out capital dredging and it is awaiting Government permission, which is expected very soon.

The port had also requested the Government to nominate the Dredging Corporation of India to carry out the work. However, it is pointed out that the DCI did not have enough dredgers to meet the requirements.

Meanwhile, the Cochin Port Staff Association, one of the major trade unions in the port, sought the intervention of the Shipping Minister and Parliamentary Affairs Minister, Mr Vayalar Ravi, to find a solution on the issue of quoting exorbitant rates by foreign dredging companies against estimated rates for dredging work in major ports, especially in Kochi.