KPT invites applications for Kandla port SEZ

The Kandla Port Trust (KPT) has invited expression of interest (EOI) applications for creating offshore berthing, single-point mooring and shipbuilding yard facilities at Tuna Port and Kandla Port Trust special economic zone, on public-private partnership model.

The announcement for the EOI was triggered by the government's approval of 44 special economic zones, including that of Kandla Port Trust's is estimated around Rs 7,300 crore port-based SEZ in Gujarat on October 27.

The board of approvals (BoA) in the commerce ministry gave the formal clearance to 24 proposals and in-principle nod to 20 others.

Meanwhile, the commerce ministry notified the list of activities, related to social infrastructure, permitted to be set up inside SEZs.

Detailing on the areas presently where KPT has invited EOI applications, while speaking to Business Standard, A Janardhana Rao, Chairman of KPT said, "We have invited expression of interest applications for offshore berthing facilities at Tuna off Kandla Creek; setting up Single Point Mooring (SPM) and allied facilities off Veera in the Gulf of Kutch and development of ship building yard at Tuna."

These facilities will be primarily worked on by PPP and EOIs have been invited for the same, added Rao.

Briefing on the project's potential and tentative estimate of project in terms of money value, A K Gadkari, Chief Mechanical Engineer of KPT said, "Offshore berthing facilities at Tuna will work on a PPP Model and will be built on a on build, operate and transfer (BOT) model to build berthing facilities for four vessels of upto 1.5 lakh DWT (dead weight tonnage) and 17.50 metre draught and in 'T' shaped."

The approximate cost of the project is estimated around Rs.5,870 millions, said Gadkari.

"Another facility being envisaged at KPTSEZ is the setting up of single point mooring (SPM) and allied facilities based on the PPP Model on BOT basis which will cater to vessels upto 3 lakh DWT. The proposed facility has been planned at two places considering the size of vessels, one for handling VLCCs upto 3 lakh DWT and one for handling Suez Max tankers of 1.4 lakh-1.6 lakh DWT which are at the water depth of 28.9 metres and 22 metres respectively," explained Gadkari.

Proposed SPM Terminal will have CALM System (Centenary Anchor Leg Mooring System) designed in accordance with American Bureau Of Shipping (ABS) to be the best suited for present location, added Gadkari.

"The approximate cost of the project has been estimated around Rs 1,330 crore, which shall be integrated into two options each of Rs 780 crore and Rs.550 crore respectively, for 3 lakh DWT vessels and 1.4""1.6 lakh DWT vessels handling facility," said Janardhana Rao.

"Third expression of interest invited by KPT is for developing a shipbuilding yard at Tuna on PPP Model which will be again on a BOT basis. This shipbuilding yard project is being envisaged keeping in view the projected vessel traffic at Kandla. We expect 4,200 vessels per year by 2013-14 and 5,000 vessels by 2016-2017 and in such a crucial hour, a maintenance and repairs facility in the vicinity of Kandla Port becomes a must," added Rao further.

For now, KPT has not clearly chalked out the format of the yard of the four available options of Slipway, Graving Dock, Floating Dry Dock or Ship Lift system. But, according to Rao, by and large surveys have indicated Graving Dock to be the most suitable option, and so KPT will work in the same direction too.

"Since the ship building project is of a huge quantum, it is being divided into two phases each of Rs 500 crore and Rs 2000 crore respectively," added Rao.

Feasibility study of the projects have been done by some of the premiere institutes of the nation.

However, KPT has kept the scopes open for feasibility study, in case if the applicants desire, they can make their own feasibility study.