Global Majors, L & T In Race For Tuticorin Terminal

Global shipping majors Maersk, Sealand and leading Indian corporates such as Larsen & Toubro and the Mahindra group are amongst the 14 companies that have shown interest in developing a container terminal project at Tuticorin in Tamil Nadu.

The other majors who have purchased the bid documents include P&O Ports Australia, ABG Industries, the Tata group company Forbes, Port of Singapore Authority, Dredging International, Burn Standard and the Singapore-based feeder

operator, X -Press Container Line (XCL), according to sources.

The project essentially entails civil works and supplying the equipment for converting the berth into a full fledged container terminal.

Besides, the parties are also bidding for the management of the terminal.

 

Like all major port projects, the tender has been floated by the Tuticorin Port Trust on a build, operate and transfer basis. The assets primarily consisting of equipment for the terminal will revert to the port trust after thirty years.

The tender was floated earlier this year and the last date for submission of bids is July 16. Sources, however, said that the last date is likely to be extended.

"Work related to filling up the tender and submitting begins only after the pre-bid conference. This was held on June 4. Therefore, the deadline is unrealistic especially since market studies have to be carried out. The port trust has agreed to the extension for the deadline but no date has been specified," stated a prospective bidder.

Three other points that dominated the discussions at the pre bid meet pertained to the draft, use of port labour and the use of the berth.

Although the port trust had indicated that a draft (the depth of the sea) of 10.7 metres would be made available against the current 8.25 metres it has now contended that this will be available only from the year 2000.

Consequently, some of the bigger vessels will be unavailable to call at the port.

Tuticorin Port Trust has also stipulated that if the port labour was not going to be used, a levy will have to be paid for compensation.

"This is a backward step and is akin to making us pay for services we have not availed of. The port trust has said that they will get back to us on this," the prospective bidder added.

Another point that was raised was the priority that would be accorded to the new berth as two berths that can handle container vessels already exist.

The port trust replied that only ships waiting for over 24 hours at the anchorage will be allowed to use the two berths.