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T.E. Raja Simhan

Chennai, Aug. 5 There will be a fresh bidding process for the Rs 3,100-crore ‘Mega Container Terminal’ at the Chennai port with the Chennai Port Trust (ChPT) deciding to ‘review and modify’ the modality structure of the project. The project has just completed the RFQ (request for qualification) stage.

The project cost has also increased by 16 per cent to around Rs 3,600 crore with the share of the port trust to triple to around Rs 1,600 crore. The balance Rs 2,000 crore will be brought in by the private operator, according to the port trust Chairman, Mr K. Suresh.

In the new project structure, the ChPT will construct the breakwater costing around Rs 1,000 crore. This is in addition to the Rs 600 crore to be spent by the port trust on dredging, reclaiming of land and providing tugs.

The private operator will take care of landside investment on the berth like equipment, he told Business Line.

Mr Suresh said, in pre-bid meetings the bidders felt that it would be easy for the port trust to construct the breakwater and deal with issues such as quarry licence and transportation of stones.

A new tender will be issued on August 15 with necessary amendments in the new bidding process. “In a way, it is going to be a re-tender,” he said.

A re-tender means the Port of Singapore Authority (PSA) may get a chance to bid for the mega project. According to the government policy, PSA could not be considered in the present bid as it was the latest private operator to get a project – to run the second container terminal in the port.

Mr Suresh denied advertences to the effect that the re-bid was to accommodate PSA. “It is nothing like that. PSA had requested us that they should also be considered for the bid. We have asked them to approach the Centre,” he said. “If allowed by the Centre, PSA will bid along with existing companies who have been selected in the RFQ stage in the present bid,” he said.

The ChPT is constructing the mega container terminal to handle 4 million TEUs a year under build, operate and transfer basis. The Chennai port handled 11.28 lakh TEUs in 2007-08. DP World currently operates a private terminal, and PSA-Sical will run a competing terminal from mid-2009.

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