The Indian Supreme Court's recent rejection of DP World’s appeal to review its rejected tender offer for a yet-to-be-built container terminal at the Port of Jawaharlal Nehru (Nhava Sheva) clears the way for the long-stalled project, the Journal of Commerce reported.
The Dubai-based global terminal operator, which runs Nehru’s second box facility, was one of the two shortlisted bidders for the $125 million project covering an extension of the port-owned container berth by 330 meters.
“This ruling clears the legal complications that stalled the project for so long. We can now move ahead with the new bidding process and award the contract without much delay,” a port official said.
The port authority launched the process in July 2008 but following a lukewarm response from potential bidders, the Shipping Ministry directed port management to float a fresh tender. Officials said the court verdict will not impact DP World’s effort to bag the contract as the company is a pre-qualified bidder under the new tender.
“The project has all government approvals, including environmental and security clearances,” officials said.
The build-operate-transfer terminal, on an 18-year concession, was originally scheduled for completion in 2011 with an estimated annual capacity of 800,000 20-foot equivalent units. It is one in a series of capacity expansion plans the authority has lined up for execution over the next 10 years at a total investment of about $3 billion, to accommodate a projected significant growth in traffic volume.
The Dubai-based global terminal operator, which runs Nehru’s second box facility, was one of the two shortlisted bidders for the $125 million project covering an extension of the port-owned container berth by 330 meters.
“This ruling clears the legal complications that stalled the project for so long. We can now move ahead with the new bidding process and award the contract without much delay,” a port official said.
The port authority launched the process in July 2008 but following a lukewarm response from potential bidders, the Shipping Ministry directed port management to float a fresh tender. Officials said the court verdict will not impact DP World’s effort to bag the contract as the company is a pre-qualified bidder under the new tender.
“The project has all government approvals, including environmental and security clearances,” officials said.
The build-operate-transfer terminal, on an 18-year concession, was originally scheduled for completion in 2011 with an estimated annual capacity of 800,000 20-foot equivalent units. It is one in a series of capacity expansion plans the authority has lined up for execution over the next 10 years at a total investment of about $3 billion, to accommodate a projected significant growth in traffic volume.