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Dubai Ports World emerges as lone bidder for construction of JNPT container berth

JNPT will refer a bid submitted by DP World to ministry of shipping, after it emerged as lone bidder for construction of a berth at the port.

Oct 05, 2012, 06.00 AM IST
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JNPT will refer a bid submitted by DP World to ministry of shipping, after it emerged as lone bidder for construction of a berth at the port.
JNPT will refer a bid submitted by DP World to ministry of shipping, after it emerged as lone bidder for construction of a berth at the port.
MUMBAI: The Jawaharlal Nehru Port Trust (JNPT) will refer a bid submitted by Dubai Ports (DP World) to the ministry of shipping, after the company emerged as the lone bidder for the construction of a Rs 600-crore container berth at the port.

DP World offered 27.5 per cent revenue share to the port for the project, which is expected to have a length of 330 metres and will handle more than 800,000 TEUs per annum. Container berths are used to handle 20 ft and 40 ft containers where vessels are loaded and unloaded by container cranes.

"We have to refer the bid to the ministry of shipping as DP World is the lone bidder. DP World has offered us a 27.5 per cent revenue share," a senior JNPT official told ET.

The bids were opened on Thursday after the Bombay High Court rejected a plea by ABG Ports challenging the tender process of JNPT. JNPT had disqualified ABG Ports earlier this year from bidding for the project, citing anti-monopoly guidelines. According to the guidelines of the Port Trust, a single company cannot bid for two consecutive projects.

"We are also happy that the court did not allow ABG to participate in the project. They had won a contract to construct the 8,500-crore fourth container terminal and then they backed out," the official added.

Meanwhile, ABG Ports said that it is awaiting the court order and will take a decision after studying the order. "We have not thought about appealing against the verdict yet. We will decide on the future course of action in a few days," said C Babu Rajeev, CEO of ABG Ports.

"DP World will benefit the maximum in the future with this capacity addition. There are strong possibilities that the tariff rates fixed by the Tariff Authority for Major Ports (TAMP) will be relaxed in the future. If that happens, then the revenue share quoted by them should not be a problem," said Hemant Bhatt, senior director at Deloitte India.

The 330-metre container terminal at the port is expected to bring some relief to the already congested port, which is currently operating at more than 110 per cent of its existing capacity. The port is also undertaking a dredging work of the Mumbai channel, where it is looking to increase the depth of the channel to 14 metres from the existing 11.5 metres.

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