Chennai mega container terminal project opens bids to Adani/Essar
CHENNAI's mega container terminal has opened bids for a project estimated to cost INR40 billion (US$726 million) to Adani Ports and Essar Ports following security clearances from the government.
It is the second time Ahmedabad-based Adani Ports has placed a bid for the project following a failed lone tender in 2011 when it offered only 1.5 per cent revenue share in the port. It is now joined by Essar Group, second to Adani in the ports sector by market capitalisation, owning 80 per cent stake in its company with Port of Antwerp taking four per cent at INR1.7 billion.
Several companies withdrew offers including Dubai's DP World, Larsen & Toubro and the Port of Singapore Authority (PSA) which exited due to its monopoly clause, reported the Economic Times of India.
India's port sector has struggled to gain investors as companies pulled out after the bid processes as with projects at JPNY and Haldia, or with the decline of security clearance by the home ministry. In the past few months, the government has failed to initiate projects at Tamil Nadu, Maharashtra and Kerala over the past few months valued at INR220 billion.
The proposed terminal at Chennai will boast a capacity of four million TEU, a two kilometre quay and two new breakwaters. Its location is proposed as north of the existing Bharathi Dock.
Mumbai-based Mantrana Maritime consultant Anand Sharma warns: "Companies should be very certain about the cargo that they are likely to see at these facilities while bidding."