After Haldia saga, ABG could clinch Kolkata port tender

ABG Infralogistics has turned out to be the lowest bidder for container handling at berth number five of Netaji Subhas Dock

Almost a month after the pull out of ABG Haldia Bulk Terminals (HBT), its parent firm ABG Infralogistics is close to clinch a tender for container handling at the Kolkata Port Trust (KoPT).

According to sources close to the development, the firm has turned out to be the lowest bidder for container handling at berth number five of Netaji Subhas Dock, under the Kolkata Dock System.

HBT, a joint venture between ABG Infralogistics and French firm Louis Dreyfus Armateurs (LDA), had terminated its 10-year cargo handling contract (2010-20) with Haldia Dock System citing law and order issues and vested interest from Kolkata Port authorities.

Today’s development comes after KoPT initiated the process to “blacklist” HBT and its parent firm. Sources confirmed that the port authorities had even sought legal help for the tender once ABG came out as the lowest bidder, triggered by the events at Haldia.

The port is likely to announce it officially after a board meeting on November 29. 

“On a lowest-bidder-wins (L1) tender system, ABG quoted the lowest, while T P Roy Choudhury & Co was the other bidder. In terms of operations of mobile harbour cranes for container handling from ship to shore and its horizontal movement, ABG is one of the major players in the country. Moreover, there is a workable difference between the L1 and L2,” said an official source close to the development.

While restraining to comment on the bidding process or the working conditions at Kolkata Port, Babu Rajeev, chief executive officer of ABG Infralogistics said, “We already have a presence at Kolkata Dock, handling container operations at berth number four and eight for a 10-year contract (2004-14) and have completed eight years of that.”

According to KoPT officials, ABG Infralogistics holds 26% in HBT.

After the HBT pullout, the port’s acting chairman Manish Jain had said, “The container handling at Kolkata was increasing by 10% year-on-year while the dry bulk cargo at Haldia was on a decreasing trend. This is the reason why they (ABG) are interested in Kolkata port not in Haldia.” 

While the port is planning to initiate a fresh arbitration process for claiming compensation from HBT, it had also decided to encash the performance guarantee of Rs 4 crore.

The port had also invited fresh bids for cargo handling operations at berth number two and eight, which was abandoned by HBT. In a pre-bid meeting held early this week, nine firms participated, including five from outside West Bengal.