Project cost estimated at Rs 276 crore
New Mangalore Port Trust (NMPT), one of the 12 major ports in the country, has received encouraging response from the private sector for its move to develop infrastructure under public private partnership (PPP) model. As many as 11 infrastructure developers have expressed interest to develop a new container terminal at the port, which is witnessing steady rise in its container cargo in the last few years.
NMPT proposes to undertake development of a container terminal for handling containers from the proposed Berth No. 18 through PPP mode on build, operate and transfer (BOT) basis at an estimated cost of Rs 276 crore. The proposed capacity of the terminal is 354,000 TEUs (Twenty feet Equivalent Unit). However, it is subject to final approval by Tariff Authority for Major Ports (TAMP). The cost includes Rs 132.20 crore for civil engineering works, Rs 125.48 crore for container handling equipment, Rs 3.05 crore for IT and Rs 15.27 crore for other works.
According to senior officials of the port, five companies have so far participated in the request for qualification (RFQ) process out of 11 companies that had expressed interest in the project initially. “We will forward these five applications to the ministry of shipping after the scrutiny for their approval. The approval is expected to come within a month. Once the ministry clears their applications they have to submit financial bids,” an NMPT official told Business Standard. The final bidder will be decided based on who offers highest revenue to the port trust, he said.
For the first six months of the current fiscal ended September 2009, NMPT has recorded a growth of 6.36 per cent in its container cargo at 16,250 TEUs. For the current fiscal ending March 2010, the container traffic is estimated to grow by 15-20 per cent. For the year 2008-09, the container traffic increased by 32.06 per cent at 28,555 TEUs compared to the previous year.
Major commodities imported through containers are raw cashew, arecanut, machinery, wax, chemicals and cement. Exports include coffee, cashew kernels, cocoa powder, polished granite, reefer cargo and wax candle among others.
As part of its infrastructure expansion programme, NMPT, last month, awarded the contract to set up a mechanised iron ore handling facility at a cost of Rs 300 crore to Chennai-based Sical Logistics Ltd, a provider of integrated solutions for offshore logistics and multi-modal logistics for bulk cargo.
The company will build the facility on BOT basis and offer 37 per cent of the gross revenue to NMPT. The port officials said that this is the highest revenue share offered for any of the NMPT projects in the recent past by any private firm in any project.
The project also involves payment of Rs 11 crore annually as licence fee to NMPT. The mechanised ore facility is to handle 6.62 million tonnes a year. Currently NMPT is fourth largest exporter of iron ore among the major ports. Last year, the port handled 8.6 million tonnes of iron ore, a growth of 18 per cent over the previous year.
