The Hindu Business Line : Kochi port to float new bids for capital dredging

The Cochin Port Trust is making a second attempt for capital dredging together with maintenance dredging in the channel when it decided to float new tenders to carry out the work, which is one of the pre-requisites for the proposed ICTT project.

Last time, the port was forced to cancel the tender, as the price quoted by the international company was 70 per cent higher than the estimated cost. Besides, the port did not get sufficient response for the tender as there was only one firm, which placed its bids for the work.

Qualification

When asked about what would be the port’s stand if a similar situation prevails, highly placed sources said that the port is pinning its hope on the Government’s proposal to revise the qualification criteria for dredging based on the recommendations made by the Rani Jadhav committee constituted to study various aspects of dredging contracts. The committee had recommended certain relaxations for dredging works to be carried out in the major ports, the sources said.

If the dredging estimate exceeds 10 per cent of total cost, the port will not be able to accept the tender and to approach the Government. If the qualification criteria are relaxed, the port will get better competition in carrying out the dredging work, the sources added.

The port is inviting tenders for capital dredging to achieve a draught of 14.5 metres along with maintenance dredging for a period up to December 31, 2010. It is better to appoint the same contractor for both capital as well as maintenance dredging as there will not be any dispute in the work, he said.

Cost estimation

The total dredging cost is estimated to be Rs 485 crore and the dredging companies have to submit the tenders within one month. The port is also holding a pre-bid meeting on June 30. The dredging to be carried out is to the extent of approximately 24 million cubic metres and maintenance dredging of 16 million cubic metres in the next two years.

The dredging and widening of the channel will also help the port in providing marine support to the upcoming LNG Terminal, as they need to deepen and widen the channel for the entry of larger vessels.

CCEA clearance

The sources also pointed out that the port is awaiting a final clearance from the Cabinet Committee on Economic Affairs on the proposal to avail a grant of Rs 385 crore for the capital dredging work. The Public Investment Board had already cleared the proposal.

With the full government grant for dredging, the port will be able to provide services at ICTT at internationally competitive rates, the sources added.