Overseas corporates show interest in GMB ports

Overseas companies from the UK, the Netherlands, Belgium have shown interest in the six minor ports of the Gujarat Maritime Board (GMB) that have been opened up to the private sector to be developed as greenfield ports.

Apart from the foreign corporates some Indian companies also have shown interest in these ports.

The GMB has invited global expression of interest (EoI) for these ports, the last date for which is March 31, 2005.

These were the very ports for which no companies bid when a global tender was issued by the GMB about two years ago.

Besides the six ports that GMB wants the private sector to develop, it has also opened up four other ports for public-private sector participation.

Close to two years ago, the GMB had invited global bids for privatisation of its ports. But the tenders received almost no response. Even the Global Investors' Summit held in September, 2003 evinced no interest for minor ports.

Now, with a renewed EoI invited, some companies have shown their interest, claim GMB officials. "Companies from Belgium, the Netherlands, the UK and India have already shown their interest in some of the ports. These companies are basically interested in works such as dredging, warehousing, engineering and designing," said, H K Dash, vice-chairman and chief executive officer, GMB. The ports that have been opened up for private sector development are Simar, Vansi-Borsi, Maroli, Mithi Virdi and Bedi.

He, however, added that GMB was more keen on looking for a company that would take up the entire port development. "We are looking at a company that will take up the greenfield and develop a port, such as Shell, that is also developing a port along with its LNG terminal," he said. He did not mention the companies that have shown interest or the investment that is likely to flow into the state.

Commenting on the ports which have been opened for joint development by the GMB and private parties, Dash said that this will have to be done in a phased manner with feasibility studies, followed by global bids, evaluation of proposals, techno-commercial studies and the like. "After that the proposal will be sent to the Gujarat Infrastructure Development Board (GIDB) which will clear it and send it back to GMB before a Letter of Intent can be given to a company," he said.

Simar is located 27 kilometres south-west of the existing minor port of Jafrabad and 90 kilometres east of Veraval. This port is suggested for development to handle LNG, coal and other fuel requirements. Vansi-Borsi is identified for handling petroleum and liquid chemical cargo of immediate hinterland. It is suggested to provide adequate matching port facilities in 10 metres.

The proposed site is 13 kilometres from the nearest broad gauge railway link at Navsari and is 30 kilometres south of the industrial town of Surat.

Mithi Virdi site is located 40 kilometres south of Bhavnagar and north of the existing ship breaking yard at Alang, is suggested to be developed as an all weather port for steel and automobile exports.

The existing intermediate port at Bedi currently handles 2.5 million tones of cargo per annum by lighterage operations.

It is proposed to develop an all weather direct berthing port near the anchorage to handle bulk carriers at a distance of 5 kilometres from Rozi Pier at a depth of 15 metres to be exclusively developed as an "Agriculture Port" with modern handling facilities.