Chennai Port to invite fresh bids for mega terminal

The Chennai Port Trust (ChPT) is planning to invite fresh bids for its proposed 4 million twenty-foot equivalent unit (TEU) capacity mega container terminal inside the port. The port trust had also increased the cost of the project by 16 per cent to Rs 3,600 crore from Rs 3,100 crore, according to sources.

“There will be a fresh bidding process with the ChPT deciding to review and modify the modality structure of the project. Some of the private operators are demanding that the port trust should take up the break water construction, which would cost around Rs 1,000 crore. This is in addition to the Rs 600 crore to be spent by the port trust on dredging, reclaiming of land and providing tugs,” they said.

The return on investment for the port would come down, if it takes up break water construction. A private consultant was asked to study the issue, based on the findings the port trust will take a final call, said the source.

A new tender is expected to be issued in another 20 days.

The proposed mega container terminal would be India’s largest container terminal. With a quay length of 2 km, the terminal is expected to begin operations in the 12th Plan period (2012-17).