National

Fresh bids for developing container hub

By Our Special Correspondent

MUMBAI Feb. 23. Fresh bids are to be called for developing a major container cargo hub at Kochi's Vallarapadam as a rival to Colombo on a build-operate-transfer basis at a cost of $500 million and if procedures move as planned, the beginning of 2003 should see the work on a 2.5 million TEU capacity facility.

Earlier, this project, pending since 1989, was planned to be taken up as a joint venture with the Government of India holding 26 per cent stake but now the indications are that prospective bidders may opt for the 100 per cent FDI route. New bids would be called in March.

Kerala has been quite keen on this project coming up — perhaps the largest investment in the infrastructure segment in a long time — its Chief Minister, with a large team, had called on the Union Shipping Minister, V. P. Goyal to seek expedited execution of the project.

Once this terminal off Kochi is built, vessels larger than 1,40,000 dwt need not traverse to Colombo and then have the containers sent to Indian ports via feeder vessels.

This trans-shipment added some 40 per cent to shipping costs of importers and exporters could be pared down substantially.

As of now, some 70 per cent of container trade from India is trans-shipped through Colombo, Singapore and some ports in the Gulf region and Kochi has the advantage of being closest to the sealanes used by the very large-sized ships which reach either Singapore or Colombo.

To enable the project to come through at a quick clip, the area in the vicinity of the proposed terminal would be dredged to provide 15 metres draft, by the Centre at its cost. The estimated bill is between Rs. 150-200 cr. The terminal would be built by the successful bidder. Fresh details are being worked out.

According to Mr. Goyal, an earlier call for bids had elicited only one response from P&O, which has helped develop and operate Colombo.

A road show, led by him recently in Malayasia, Singapore and Hong Kong has provoked wider interests.

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