MbPT bid deadline extended yet again

Ninth extension attributed to delay in security clearance for Hutchison Whampoa.

The government has, for the ninth time, extended bidding deadline for the Rs 1,200 crore offshore container terminal project of Mumbai Port Trust (MbPT). This time it is from May 10 to June 15.

The extension of the deadline is due to delay in giving security clearance for Hong Kong major Hutchison Whampoa's entry into Indian port citing security reasons.

HPH, a wholly-owned subsidiary of Hutchison Whampoa Ltd, is bidding for the offshore container terminal in Mumbai and Rs 500 crore second container terminal in Chennai in association with engineering and construction major Larsen &Toubro (L&T).

Chennai Port is also confronting the same hurdle owing to delay in security clearance for the Hong Kong major. "Though Chennai Port has received bids, security clearance is a must before opening price bids," said sources.

HPH was earlier debarred from bidding for the third container terminal project at Jawaharlal Nehru Port Trust (JNPT) citing the Chinese connections and potential threat to marine installations in Mumbai and Chennai.

With the prolonged delay in the offshore container project at Mumbai Port, industry sources feel the project is increasingly becoming unviable as neighbouring port, JNPT, and neighbouring state Gujarat are getting equipped with more container terminals.

Meanwhile, the bidders for the container terminal projects in the Mumbai and Chennai ports have threatened that they would back out from the project.

"Of the 11 bidders for the MbPT project, only three-four players are expected to participate in the bidding process. This ninth extension is either to kill the project or to protect some bidders with vested interests," industry sources said.

When contacted, government officials said security was a very sensitive issue, adding that the clearance should come soon as HPH had sold its 20 per cent stake to Port of Singapore Authority (PSA), which is the port unit of the Singapore government's investment arm Temasek Holdings.

Mumbai Port is developing an OCT (offshore container project) at a cost of Rs 1,200 crore while Chennai Port is constructing a container terminal at Rs 500 crore.

Earlier, MbPT had shortlisted 11 players including L&T, HPH, Evergreen, Japanese shipping company Mitsui OSK Lines, P&O Ports Pvt Ltd, United Liner Agencies India Pvt Ltd, Gammon India Ltd, ABG Heavy Industries Ltd, Dubai Ports International, AP Moller Finance SA and Adani Exports Ltd.