Sterlite, lone bidder for Mormugao iron ore terminal

N. K. Kurup Mumbai | Updated on May 30, 2011 Published on May 30, 2011

Recently commissioned mole berth at Mormugao Port Trust loading iron ore.

Sterlite Group, which controls the iron ore producer and exporter-Sesa Goa, is the lone bidder for the proposed the Rs 1100 crore iron ore export terminal at Mormugao Port.

A senior port official told Business Line that Sterlite is the only party submitted the financial bid before May 27, the last day for accepting the bid.

Initially, nearly a dozen parties including Essar, GVK Group, Punj Lloyd, IL&FS Maritime Infrastructure, and Lanco Infratech had shown interest in the project.

Now it is for the port trust to decide whether it can go ahead with the tender with a single bidder and award the project or not. “If the group qualifies in all respects, there is no reason why it should not be awarded the project,” the official, who would not like to be quoted, said.

Mr Pratik Agarwal, Vice President - Corporate Strategy, Vedanta Group, ( holding group of Sterlite) said he is made to understand that the group is the only one who has submitted the financial bid for the project. "It is too early to say that we got the project, there is a bidding process, the port has to evaluate the bid and take a decision, "he said. The project will be crucial for the iron ore industry in Goa and Karnataka.

The proposed export terminal with a capacity to handle eight million tonnes iron ore annually will be located west of the existing terminal. “Our plan is to develop a new harbour and breakwater complex for developing an iron ore export terminal,” said a port official. The project also envisages reclaiming 35 acres of land. The channel linking the terminal will have a draught of 13-14 meters.

Majority of the ore shipped though Mormugao currently comes by barges.

and transhipped to the ships.

The proposed dedicated terminal will have fully mechanised ore handling facility and wagon tipplers. The terminal will have rail and road connectivity and to cater to mainly from ore coming from Karnataka.

Mormugao handled 40 million tonnes of iron ore last year. With the enhanced rail link, the volume of iron cargo from Karnataka is expected to go up, said a port official. About 80 per cent of the export is going to China.

Out of the total 50 million tonnes cargo handled in last fiscal, 40 million were iron ore. Besides, iron ore, the port also handles, coal, and POL cargoand small quality of general cargo. Last year Mormugao handled 17,000 TEUs of container cargo.

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Published on May 30, 2011
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