Date:19/11/2005 URL: http://www.thehindubusinessline.com/2005/11/19/stories/2005111900160700.htm

Back Kerala to invite EoIs for Azhikkal port modules

Mony K. Mathew

Thiruvananthapuram , Nov. 18

THE Kerala Government is planning to invite expressions of interest from private companies for development of Azhikkal port in modules.

The port, near Kannur, was originally envisaged to be developed at one go at an estimated cost of Rs 1,200 crore. However, after a realistic appraisal of the potential cargo traffic at the port, the cost was scaled down and it was decided to take up the development in modules.

The Sharjah-based Universal Lubricants has already come up with a proposal to construct an oil jetty at the mouth of the port. The jetty is designed to handle petroleum, oil and lubricants.

Further development of the port will be taken up in modules catering to general and special cargo movements. These apart, other facilities, including a ship-repairing yard, are also part of the modular development plan for the port, according to officials in the Ports Department.

The State Government has formed a committee, chaired by the Secretary (Ports), to work out the details of the various modules and invite expressions of interest from private companies for developing them in phases. The first module comprising six or seven berths is expected to cost Rs 360 crore, the officials said.

Meanwhile, the evaluation of the technical and financial bids submitted for the development of the Rs 4,200-crore international container transhipment terminal at Vizhinjam, near here, is expected to be completed by this month-end.

Two entities, namely, Gammon India Ltd and a consortium of Mumbai-based Zoom Developers and two Chinese firms, Kaidi Power Company and China Harbour Engineering Company, had submitted the bids, which are under the scrutiny of the evaluation committee.

The Government is looking forward to finalising a build-operate-transfer (BOT) agreement with the successful bidder in December this year and starting the work on the project by the middle of next year. The first phase of the project is slated to go on stream in 2009.

The first phase is expected to cost Rs 1,850-crore. This will be a joint venture between the Government and the private promoter with the former holding 24 per cent equity in the venture.