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Vizag port may refer crane acquisition issue to Ministry

Our Bureau

KOLKATA, May 1

VISAKHAPATNAM Port Trust (VPT) is likely to refer the controversial crane acquisition issue to the Surface Transport Ministry seeking its guidance on the subject. The issue came up for review at the meeting of the VPT board of trustees held on Monday but no decision could be taken, according to informed sources.

It might be recalled that Mukand, the L1 bidder for the tender floated by VPT for acquiring four electric level luffing wharf cranes of 20-tonnes each, ran into problem as its foreign collaborator, Imonesa of Spain, exited from the manufacture of cranes.

In fact, Mukand-Imonesa collaboration came a cropper after VPT had issued the letter of intent to them. Mukand, subsequently, informed VPT of its plan to enter into fresh tie-ups with new foreign collaborator but the port authorities were not sure if su ch a change in collaboration arrangement was possible after the letter of intent had been issued. As per rules, it is not permitted.

The Ministry will, therefore, have three options, it is felt. First, it can allow Mukand to go ahead with its plan for new collaboration with a foreign firm. Mukand, it is learnt, has already sounded to VPT the probable names of the new collaborators. Ho wever, such a change in collaboration has to be cleared by several concerned authorities.

Alternatively, the L2 bidder might be asked to match the price of the L1 bidder. The problem in it is that the earnest money which L2 and other bidders had deposited with VPT had since been returned to them (except to L1 bidder). One is not sure if any b idder without having the earnest money deposited in his name could be awarded the contract.

There is still a third alternative. Cancelling the present contract altogether and floating a new tender which need not necessarily be yet another global tender. Instead, VPT could invite bids from firms shortlisted by the Indian Ports Association (IPA).

Not all the firms enrolled with IPA will qualify as shortlisted bidders for the job. Among the shortlisted bidders will be Mitsu i and Obe of Japan, Ganz Danubius of Hungary, Samsung of Korea, Impsa of Argentina, Konecranes of Finland and India's TRF.

Two years have already passed since VPT floated the original tender in April 1999 to acquire four electric level luffing wharf cranes but nothing has happened as yet. The period of delivery under the proposed new tender therefore might be reduced from th e earlier stipulation of 18 months to 12 to 14 months or so.

But, cancellation of the earlier tender will also mean that VPT has to return to Mukand the earnest money of around Rs 20 lakh. Otherwise, the force majeur clause might be invoked by the Indian firm.

Meanwhile, VPT is planning to float yet another global tender shortly for acquisition of two shiploaders to be installed at its general cargo berth.