Aiming at increasing the capacity to match the growth, JN Port earlier awarded a contract for a bigger container terminal to PSA International Private Limited but the contract did not pull through since the firm failed to sign the concession agreement. When the port was in for a re-bid, it received one from Dubai’s DP World Private Limited and as it was the only bid, there were apprehensions about approval from the Ministry; but, a spokesperson from the Ministry said that the single bid “is not an issue. JN Port has gone through the bidding process. The Board of Trustees of JN Port has to meet and clear the bid”. A spokesperson of the port said that the Board of Trustees would meet next week to consider the single bid. JN port has a plan to build a container terminal with a berth length of 330 meter and the terminal will cost about INR 750 crore. The facility will be able to handle about 800,000 standard containers a year. Since port contracts at the Union government controlled ports are awarded on revenue basis, the bidder must be able to give a large share to the government. DP World quoted a revenue share of 27.9%. According to the port privatization policy of the government, the contract must last for 30 years. But, for the new terminal, it is said that the contract is only for 15 years, ending in 2027. The earlier DP World’s contract for the existing container terminal is for 30 years and it also comes to an end in 2027.
Thursday, 25 October 2012
DP World’s single bid, not a problem with the ministry
Aiming at increasing the capacity to match the growth, JN Port earlier awarded a contract for a bigger container terminal to PSA International Private Limited but the contract did not pull through since the firm failed to sign the concession agreement. When the port was in for a re-bid, it received one from Dubai’s DP World Private Limited and as it was the only bid, there were apprehensions about approval from the Ministry; but, a spokesperson from the Ministry said that the single bid “is not an issue. JN Port has gone through the bidding process. The Board of Trustees of JN Port has to meet and clear the bid”. A spokesperson of the port said that the Board of Trustees would meet next week to consider the single bid. JN port has a plan to build a container terminal with a berth length of 330 meter and the terminal will cost about INR 750 crore. The facility will be able to handle about 800,000 standard containers a year. Since port contracts at the Union government controlled ports are awarded on revenue basis, the bidder must be able to give a large share to the government. DP World quoted a revenue share of 27.9%. According to the port privatization policy of the government, the contract must last for 30 years. But, for the new terminal, it is said that the contract is only for 15 years, ending in 2027. The earlier DP World’s contract for the existing container terminal is for 30 years and it also comes to an end in 2027.
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