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Mundra Port and Special Economic Zone has increased its revenue share offer for the Rs 3,700-crore mega container terminal project.
It has increased its share to 5 per cent from the earlier offer of 1.5 per cent, which was rejected by the Chennai Port Trust as being very low. “Even the 5 per cent is low considering that it has huge potential in future. However, the evaluation committee will decide on the new offer,” said the port trust's Chairman, Mr Atulya Mishra.
The quote of 1.5 per cent was the lowest revenue share made by a private company since 1997 when the container berths were given to private players to develop on a long term.
Mundra Port was the lone bidder for the deepwater container terminal, the country's first such, at Chennai. In a similar case in the neighbouring Ennore port, a consortium led by the London-based Eredene Group was the lone bidder for its container terminal project. Even in a few other private projects, including ones at Chennai and Tuticorin ports, there were at least three large players competing.
LAST-MINUTE WITHDRAWAL
Companies such as the Dubai-based DP World, Port of Singapore Authority (PSA) and Larsen & Toubro (that bid in the initial stage) withdrew later due to various reasons. PSA could not participate due to the ‘monopoly' clause (the company got the second container terminal and, hence, cannot immediately bid for a similar project in the same port) while L&T is building a major shipyard near Ennore, he said. The mega container terminal project is to be developed north of the existing Bharathi Dock.
It will have two new breakwaters (total length 4.5 km), and a continuous quay length of 2 km, which will ultimately have 22 metre alongside depth to handle ultra large container ships of over 15,000 20-foot equivalent unit (TEU) capacity and a length of 400 m.
The project is proposed on a build, own and transfer basis with cost of dredging, floating crafts and navigational aids - costing Rs 561 crore - to be borne by the port trust.
The private operator will invest on berth and breakwater construction, reclamation of backup area, handling equipment and other landside infrastructure costing Rs 3,125 crore.
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