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i-maritime news letter

Chennai Port Trust rejects Mundra Port bid to develop container terminal - 2012-01-02

The Chennai Port Trust has rejected the bid of the Mundra Port and Special Economic Zone to develop the Rs 3,700-crore mega container terminal project at Chennai port on the ground that revenue share of 5 per cent offered by the company was too low. The company was the only bidder for the project. A re-bid is now being planned to give another opportunity for those companies who participated in the project's request for qualification stage, said Mr Atulya Mishra, Chairman of the port trust. Mundra Port, India's largest private port and special economic zone, increased its revenue share for the project to 5 per cent from the initial 1.5 per cent. However, even this was rejected by the port trust's board, which met today. The board felt that even the 5 per cent was too low, and should not be acceptable, he said. “We will call for a meeting with the pre-bid participants in a month,” he said. 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.

Source: Hindu Business Line