PSA International top bidder for Port Nehru project
Global port-terminal operator PSA International is poised to win the contract to build and operate the fourth container terminal at India’s Port of Jawaharlal Nehru, the country’s largest box gateway, the Journal of Commerce reported.Port sources said the Singapore-based company emerged as the top bidder for the long-awaited project, quoting a 50.8 percent share of revenue as annual royalty to the landlord port. An official announcement is expected next week.
Other shortlisted bidders included DP World and domestic infrastructure companies Sterlite Industries and GVK Group.
Plans for the build-operate-transfer project, estimated to cost $1.5 billion, were approved by the central government in January last year, but the process hit a roadblock following a series of litigations initiated by disqualified bidders.
“The long wait is finally getting over. The port authority will announce the tender results once the legal problems are cleared,” a senior official said.
The plan calls for the project to be developed in two stages with the first phase, covering a 1,000-meter terminal and adequate back-up area, expected to be ready in three years after award of the contract. After the project is complete, it is estimated to offer an annual capacity of 4.8 million 20-foot equivalent units.
The West Coast port currently has three terminals: DP World’s Nhava Sheva International Container Terminal; Gateway Terminals operated by APM Terminals in a joint venture with state-owned rail operator Container Corporation of India; and port-run Jawaharlal Nehru Container Terminal. Its consolidated throughput for fiscal 2010-11 ended March 31 was a record 4.27 million TEUs.
PSA is a leading private terminal operator in India, with operations at four of the country’s major ports including Chennai and Tuticorin. Globally, it operates 28 cargo terminals in 16 countries with a combined capacity of 111 million TEUs.
