Jawaharlal Nehru Port Trust (JNPT), India's largest container port, is likely to invite fresh bids for its fourth container terminal facility after a consortium led by PSA International and ABG Infra failed to sign the deal almost a year since the bids were opened.
According to senior trustees of the board at JNPT, the consortium has not signed a clause with the port, which could have forced PSA-ABG to confirm their willingness to take up the project, reported The Economic Times.
"In the absence of a clause which expresses their willingness to take up the project and now, if ABG does not sign the contract, then the only option is to go for rebid,'' said the trustees.
By now, the port should have signed an agreement for the fifth container terminal, but the fourth container terminal has not seen the light of day.
"We will ask the chairman to take a suitable decision in the board meeting next month," said a JNPT trustee.
In September, the consortium led by PSA and ABG had quoted the highest revenue share of 51 percent to the port after the bids were opened.
The revenue share quoted by PSA was the highest ever, since the government allowed private companies to operate terminals at ports in the country.
"We have sought the opinion of the shipping ministry and they have written to the ministry of law and the economic affairs wing of the finance ministry seeking their opinion regarding ABG's plan to withdraw from the consortium," said L Radhakrishnan, chairman, JNPT.
Meanwhile, officials in the ministry of shipping said the matter is still being considered by the law ministry and the economic affairs wing of finance ministry and a suitable decision can be taken only after the shipping ministry studies the opinions given by the other ministries.
In January this year, the signing of the licence agreement for building the US$1.2 billion container terminal was deferred after the consortium said it was not willing to bear the stamp duty for registering the document.
Later in March, ABG expressed its plan to move out, largely because ABG, as the consortium partner, will have to invest close to $180 million for the project, forcing another round of legal battle.
The fourth terminal will have a capacity of 4.8 million TEUs and a berth of 2 km in length and can accommodate seven ships at a time, compared with two to three at the other terminals.
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