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The Cochin Port Trust has issued a show-cause notice to its dredging contractor Jaisu Shipping asking the company why it should not be blacklisted from participating in further tendering process for dredging operations in the port.
The company has been given two weeks time for explanation.
If the reply is not found satisfactory, the port will blacklist Jaisu from carrying out further dredging operations at the Kochi port.
If blacklisted, Jaisu Shipping will not be eligible to participate in any fresh bid floated by the port and on a larger policy basis, the company may be banned from other major ports too, official sources in the port said.
Contractual agreement
The show-cause notice comes in the wake of Jaisu abandoning the work and its failure to complete the capital dredging in the channel for the Vallarpadam terminal despite being given time in addition to the original contract time.
The sources pointed out that Jaisu Shipping could not achieve the 14.5 metre draught in the ICTT berth basin, which was assured to DP World according to the contractual agreement with the terminal operator.
The port management had given several extensions at various stages to deepen the ICTT berth basin before March 31.
Dredgers seized
The port authorities last week had seized the dredgers belonging to the company which were being taken out of the port area without the permission of the authorities.
The dredgers were located with the help of the Coast Guard and brought back to Kochi.
The port had also obtained an interim injunction from the court restraining Jaisu from taking any of the vessels out of the port area.
It is also pointed out that dredging operations would cost the port more than Rs 525 crore and the contractor had not been able to provide satisfactory results so far.
Meanwhile, the port management has called for a short tender to carry out work on the remaining portion of capital dredging to remove two million cubic metres at an estimated cost of Rs 40 crore.
The tender will be opened on April 26.
The port is also going ahead with the tendering process for maintenance dredging for the next three years, unlike in the past, to maintain its channel.
The cost is estimated at Rs 300 crore (Rs 100 crore annually).
The management has also sought a grant of Rs 80 crore from the Shipping Ministryeach year to continue the maintenance dredging work, the officials said.
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