Adani, Essar in race for Rs 3,683 cr (approx. USD 713 million) terminal

Adani Ports and Essar Ports are in the race to build the Rs 3,683 crore mega container terminal at Chennai Port. While there were seven bidders in the pre-bid meet, these two conglomerates are in the race now.

Speaking at the sidelines of Chennai Port Trust Annual press meet, Atulya Misra, chairman, Chennai Port Trust, said at the RFP level there were eight companies and only two companies, Adani Ports and Special Economic Zone and a consortium of Essar Ports Ltd and Vadinar Oil Terminal Ltd have submitted their bids.

Chennai Port Container terminal viewed from Marina

Chennai Port Container terminal viewed from Marina (Photo credit: Wikipedia)

“We have sent the proposals of Essar Ports to the Centre to obtain security clearance as there is a change in the shareholding pattern and as far as Adani Ports is concerned, there is only a change in the company’s name whereas the board of directors are the same. Till that time, we will keep both the bids in a sealed cover.” It may be noted, Adani Ports is bidding for the second time. In the first round, the company was the sole bidder, and agreed to share 5 per cent of the revenues of ChPT.It was rejected by the port authorities on the ground that it was too low, unacceptable and unviable.

So the Port Trust called for fresh bidding and seven companies participated, of which two are in the final race for the Rs 3,683 crore container terminal project, which will have the capacity to handle 4 million Twenty-Foot Equivalent Units per annum.

Of the total project cost, Chennai Port Trust’s share will be Rs 561 crore ( approx. USD 108 million), while the private partner, who will build, own and transfer the project, will invest Rs 3,125 crore. (Approx. USD 605 million)

The proposed investment includes Rs 963 crore (approx USD 186 million) towards breakwater, Rs 362.25 crore (approx 70,5 million USD) for dredging, Rs 496.80 crore (approx 96 USD million) to construct berths, Rs 124.20 crore (approx 24 USD million)for reclamation and the rest is for others.

The terminal is to be developed north of the existing Bharathi Dock. It will have two new breakwaters (total length 4.5 km), and a continuous quay length of 2 km, which will ultimately have 22-metre alongside depth to handle ultra-large container ships of over 15,000 20-foot equivalent unit capacity and 400 metres long.

 

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