Companies

Essar, L&T among 12 cos shortlisted for Mormugao Port project

Suresh P. Iyengar Mumbai | Updated on April 24, 2011




The financial bid for developing an iron ore export terminal of 7.5 million tonnes a year at West of Breakwater of Mormugao Port in Goa will be opened on Wednesday.

The project involves developing a facility consisting of a new breakwater, berths, handling equipments and rail siding at a cost of Rs 1,100 crore as estimated by Mormugao Port Trust.

The shortlist

The Port Trust has shortlisted 12 leading infrastructure companies including Vadinar Oil Terminal (Essar Group); L&T Transco; GVK Developmental Projects & Hindustan Construction Company; Gangavaram Port and Punj Lloyd Infrastructure; ILFS Maritime Infrastructure, IVRCL Infrastructure and & Projects and Marg Ltd; SEW Infrastructure and Malaysia-based Pembinaan Redzai Sdn Bhd; Shapoorji Pallonji & Co and Afcons Infrastructure; Sterlite Industries; IMC Ltd and ITD Cementation India; Lanco Infratech and MSPL; Adani Group and Salgaocar Mining Industries.

For the build operate and transfer project, the concession period is 30 years. Bids will be evaluated in terms of percentage of revenue sharing offered.

Exports from Goa

Goa ports handle 42 per cent of the total iron ore exports from the country. Iron ore exports from Goa have grown in double digit in last five years. Currently, more than 60 per cent of ore exported from Goa use mid-sea operations with the help of floating cranes and trans-shippers transferring ore from barges to large ships.

It is understood that the proposed terminal will be operationally more efficient than other facilities where multiple handling takes place. However, apparent higher tariffs and huge costs in building the terminal along with preference of miners to continue using conventional modes of exports remain a concern towards the viability of the terminal, said an infrastructure company official.

On the prospects of iron ore export from Goa, Mr P.K. Mukherjee, Managing Director, Sesa Goa, said there is little visibility of growth in iron ore volume as the Goa Government has imposed a moratorium on expansion of capacity pending announcement of the Goa Mining Policy. Moreover, there are restrictions on transportation of the ore.

“Most of the exporters find it cheaper to use trans-shipper and floating cranes to supplement berth capacity. I have my doubts as to whether any expansion in berth capacity in Goa based on iron ore cargo would be feasible in the near future since it is highly capital intensive,” he added.

Published on April 24, 2011

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