Port of Jawaharlal Nehru delays extension
India’s Port of Jawaharlal Nehru cancelled a global tender to develop its planned 330-meter container berth extension project, originally estimated to cost $130 million.
The decision was attributed by local shipping circles to a rather lukewarm response from potential bidders, amid slumping container volumes at Indian ports that saw throughput fall 6.32 percent during the first half of 2009-10, coupled with legal complications after disqualified bidders challenged the process through court petitions.
“We are not scrapping the project, and will go in for a fresh tender after sorting out legal problems,” said S.S. Hussain, port chairman, at a shipping summit in Mumbai.
In June 2008, the port authority invited bids for the build-operate-transfer facility on an 18-year concession basis, and after technical evaluation, shortlisted two pre-qualified bidders of the eight initial applicants. The shortlisted bidders were Dubai’s DP World, and a domestic consortium comprising Vadinar Oil Terminal and Essar Group.
According to original plans, the terminal was expected to be operational in 2011 with annual capacity of 800,000 20-foot equivalent units. Now the project is likely to encounter considerable delays.
In related news, the authority again extended the bidding deadline for its 4-million-TEU fourth container terminal project from Oct. 31 to Dec. 31.
Nehru, India’s largest box gateway, currently has three terminals: a port-run terminal and two private facilities operated by DP World and A.P. Moller-Maersk, with total capacity of 4.17 million TEUs.
In fiscal 2008-09, the west coast hub handled 3.95 million TEUs compared with a record 4.06 million TEUs the previous year. Volume for the April-September period declined to 2 million TEUs from 2.1 million TEUs.
The decision was attributed by local shipping circles to a rather lukewarm response from potential bidders, amid slumping container volumes at Indian ports that saw throughput fall 6.32 percent during the first half of 2009-10, coupled with legal complications after disqualified bidders challenged the process through court petitions.
“We are not scrapping the project, and will go in for a fresh tender after sorting out legal problems,” said S.S. Hussain, port chairman, at a shipping summit in Mumbai.
In June 2008, the port authority invited bids for the build-operate-transfer facility on an 18-year concession basis, and after technical evaluation, shortlisted two pre-qualified bidders of the eight initial applicants. The shortlisted bidders were Dubai’s DP World, and a domestic consortium comprising Vadinar Oil Terminal and Essar Group.
According to original plans, the terminal was expected to be operational in 2011 with annual capacity of 800,000 20-foot equivalent units. Now the project is likely to encounter considerable delays.
In related news, the authority again extended the bidding deadline for its 4-million-TEU fourth container terminal project from Oct. 31 to Dec. 31.
Nehru, India’s largest box gateway, currently has three terminals: a port-run terminal and two private facilities operated by DP World and A.P. Moller-Maersk, with total capacity of 4.17 million TEUs.
In fiscal 2008-09, the west coast hub handled 3.95 million TEUs compared with a record 4.06 million TEUs the previous year. Volume for the April-September period declined to 2 million TEUs from 2.1 million TEUs.