The Hindu Business Line : Move to develop Ponnani port

The Government has accorded sanction to adopt the ‘Swiss Challenge’ method for identifying the private partner for the project through a global tender.

Mony K. Mathew

Thiruvananthapuram, Aug 3

In pursuance of its port-based development policy, the Kerala Government has decided in principle to convert Ponnani port in Malappuram district into an all-weather port through public-private partnership.

A Chennai-based company, Malabar Port Pvt Ltd, has submitted a preliminary proposal to the State Government in this regard and has been assigned to prepare a detailed project report (DRP) to develop the port on a build-operate-transfer (BOT) basis.

Ponnani port, located in the estuary where the Bharathapuzha joins the Arabian Sea, is envisaged to be developed into a deep-water port capable of handling vessels of around 50,000 DWT. The greenfield project is estimated to cost about Rs 1,500 crore, according to officials of the Port Department.

The Government has accorded sanction to adopt the ‘Swiss Challenge’ method for identifying the private partner for the project through a global tender. Accordingly, the DPR being prepared by Malabar Port will be examined by a consultant to be appointed by the Government for technical and economic feasibility.

Malabar Port will not participate in the global tender, but will be offered the opportunity to match the best bid terms received. If it does so, the company will be selected to develop the port and run it commercially.

In case Malabar Port is not able to match the best bidder, the latter will be allowed to implement and operate the port. In the event, Malabar Port will be given a compensation by the winning bidder, the quantum of which will be indicated in the ‘request for proposal’ (RFP) documents.

The selected investor will not be given any financial assistance by the Government for supporting infrastructure such as rail connectivity, widening of the roads, water supply and electricity at any stage of the development process. The Government’s role would be only as a facilitator for the project, the officials said.

The concession period under the BOT agreement will be 30 years. After the concession period, if the Government decides to bid the project again, the right of first refusal may be given to the original developer.

The State Government has selected a slew ports for development as part of the policy. Apart from Vizhinjam container transhipment terminal, for which a developer has already been selected, the other ports in the list that have been put through initial stages of the development process include Beypore, Azhikkal, Alappuzha and Thangassery.