JNPT rejects fresh container terminal bid from ABG
Jawaharlal Nehru Port Trust (JNPT), India’s largest box facility, has rejected a further request by ABG Ports to bid for the new 330-metre container terminal at the Nhava Sheva facility.
Earlier this year, JNPT disqualified ABG Ports from bidding for the project as anti-monopoly guidelines adhered to by the Port Trust state that a company cannot bid for two successive projects. ABG and its partner the Port of Singapore Authority were awarded a contract to build and operate the port’s fourth container terminal. However, the consortium withdrew its bid last month, and ABG believes it now has the right to bid for the smaller project.
Last week, JNPT awarded the project to build and operate the Rs 600 crore terminal to DP World after an appeal by ABG Ports in response to its exclusion from the bidding process was rejected by the Bombay High Court despite offering a higher revenue share than the Dubai-based terminal operator.
“It is pertinent to note that a project at VO Chidambaranar Port at Tuticorin, ABG had quoted a revenue share of 55.19 percent,” ABG said in a letter to JNPT.
“It is certain that JNPT would receive much higher revenue share if we are allowed to participate in the project.”
DP World, who already operates the Nhava Sheva International Container Terminal at the port, received the Letter of Award from JNPT after agreeing to increase the revenue share in the new facility to 28.09 percent from its earlier offer of 27.09 percent with the Indian government.
DP World will invest around US$200 million in the build of the terminal, which will include 300 of metres quay, a 13.5 metres draft, and 17 hectares of yard to enable the handling of 800,000 TEU annually.
The new quay has been awarded for a 17-year concession period and will be equipped with 4 rail mounted quay cranes and 12 rubber tyred gantry cranes, according to DP World. The new facility is expected to be operational in 2015.
JNPT has also confirmed that it is set to invite fresh bids for its much-delayed fourth container terminal within the next few months.
“A suitable decision will be taken during the board meeting on November 15. The fresh tenders should be issued in the next few months,” a board member at JNPT told the Economic Times.
