Amit Mitra

"So far, some 24 companies have picked up the tender document and we are still getting enquiries. Hence we decided to extend the last date for sale of the document and submission of the RFQ document," a port official said.

Mumbai , March 1

THERE appears to be a glimmer of hope for Mumbai port to rope in a strong port terminal operator for investing in its proposed Rs 900-crore offshore container terminal project.

After its earlier effort to bring in a capable investor came as a cropper last year, the port had recently launched fresh efforts to attract foreign and Indian port terminal operators to take up the project. And, going by the response this time around, it seems that the port's efforts may pay off.

With enquiries continuing to stream in from different prospective investors, the port authorities have once again extended the deadline for submission of RFQ (request for quote model) document from February 14 to March 11.

"So far, some 24 companies have picked up the tender document and we are still getting enquiries.

Hence we decided to extend the last date for sale of the document and submission of the RFQ document," a port official said.

Those that have shown interest in the project this time include foreign and Indian port operators such as P&O Ports, United Liner Agencies of the JM Baxi Group, Dubai Ports International, Maersk India, Hong-Kong based IHCL, Evergreen Marine Corporation of Taiwan, L&T, ABG Heavy Industries, Adani Port and Afcons.

This is being viewed as encouraging, considering the fact that when the port first invited bids last year, there was not a single party that submitted the final bid, although a few had shown initial interest. The port had attributed the uncertainty over the projected traffic potential and cargo evacuation constraints to the poor response.

In its second round of wooing potential port terminal operators, Mumbai port had re-drafted the terms and conditions, incorporating some new incentives to attract investors. First, the port offered the BPS (Ballard Pier Estate) container berth to the successful bidder for the offshore terminal.

"In other words, the successful bidder could start earning money from day one, as the BPS berth is at present operational — this berth can handle about two lakh TEUs. They (the successful bidder) will not have to wait till they develop the offshore berth," the official said.

Also, the port assured to improve the cargo evacuation facilities by providing better rail and road linkages.

"We have also assured the potential bidders that the cost of deepening of the channel to 15 mts at the berth side will not be burdened on them. Further, we are willing to offer CFS space to the successful bidder if they want to set up their own CFS, apart from additional stacking pace," according to the official.

The port will be taking up the offshore container terminal project on BOT basis in two phases - the first phase envisages construction of two berths with a capacity to handle 0.8 million TEUs and the second phase involves construction of a third berth to take up the total capacity to 1.2 million TEUs.

"We will give the first right of refusal to develop the third berth to the successful bidder for the first two berths," the port official said.

The other benefits being offered by the port include entitlement to the operator to collect stevedoring charges and to set down its own tariff subject to approval of TAMP, apart from the port ensuring adequate evacuation facilities.

© Copyright 2000 - 2009 The Hindu Business Line