Essar Ports sole bidder for Rs 3686-cr mega container terminal project

Adani Ports and Special Economic Zone have also shown interest in it, but did not get security clearance

Essar Ports Ltd is said to be the sole bidder for the proposed mega container terminal project at Chennai port, one of the 13 ports owned by the government of India. It was learnt that another bidder Adani Ports and the Special Economic Zone have also shown interest in the Rs 3,683-crore project, but did not get security clearance.

According to a senior port official, Essar Ports has offered a revenue share of 5.25%, which is 5% higher than what Adani Ports had earlier offered in their bid. The official added that it (the revenue share) was too low and the Ports is planning to ask Essar Port to increase it.

Essar and Adani were the two final contenders, while seven companies entered the qualification stage, for the container terminal project, which will have a capacity to handle  four million twenty-foot equivalent units per annum.

Of the total project cost, Chennai Port Trust's share will be Rs 561 crore, while the private partner, who will build, own and transfer the project, will invest Rs 3,125 crore.

The proposed investment includes Rs 963 crore towards breakwater, Rs 362.25 crore for dredging, Rs 496.80 crore to construct berths, Rs 124.20 crore for reclamation and rest is for others.

Essar Ports Limited (EPL) develops and operates ports and terminals and is one of the largest private sector port companies in India by capacity and throughput. It provides services for liquid, dry bulk, break bulk and general cargo. If the company gets the container terminal project at Chennai, this will be first container terminal project.