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Adani Ports and Special Economic Zone set to win clean cargo terminal deal at Deendayal Port


Adani Ports and Special Economic Zone Ltd (APSEZ), India's biggest private port operator, is set to win the rights to run a 5.7 million tonne (mt) capacity multipurpose terminal for handling clean cargo including containers at state-owned Deendayal Port for 30 years by placing the highest royalty of Rs200 per ton when the price bids were opened last week.

The contract win will help APSEZ strengthen its presence in Deendayal Port (formerly Kandla Port) - India's second biggest state-owned port by volumes handled where it runs a dry bulk cargo terminal at Tuna Tekra, a satellite facility.

The project, estimated to cost Rs169.26 crores, witnessed much bitterness after the price bids were submitted almost a year ago with APSEZ lodging a complaint with the Central Vigilance Commissioner (CVC) and the Ministry of Ports, Shipping and Waterways, claiming that JM Baxi Ports & Logistics Ltd- one of the three other bidders in the fray had filed the price bid "a minute late" from the deadline and should be disqualified.

After months of delay on deciding the claim made by APSEZ, Deendayal Port Authority's top management recently decided to open the price bids, including that of JM Baxi Ports and Logistics, with the approval of its board, saying there was "no merit" in the allegation made by Adani Ports and Special Economic Zone.

The price bid turned out to be an anti-climax with JM Baxi Ports and Logistics ending up fourth with a quotation of Rs120 a ton, behind JSW Infrastructure Ltd which quoted Rs178 a ton and PRMA Impex Pvt Ltd with Rs135 a ton, multiple sources said.

The Berth No 13 has a 300 metres long quay that can accommodate a single large vessel of 75,000 dead weight tons (dwt) with draft of 14.5 metres and is currently being run by the Deendayal Port Authority. The berth is being privatised through the public-private-partnership (PPP) route in line with the National Monetisation Pipeline (NMP) program of the government.

The National Monetisation Pipeline seeks to privatise operational infrastructure assets through the public-private-partnership route.

The optimal capacity of the facility will be 5.7 mt comprising 4.2 mt of

dry bulk (including break bulk), clean cargo and 0.10 million twenty-foot equivalent units or TEU's.

The multipurpose terminal is expected to handle machinery (project cargo), Ro-Ro cargo, sugar, salt, wooden logs, silica sand and containers.

The successful bidder will have to install clean cargo handling equipment such as rubber tyred gantry cranes, reach stackers, spreaders as well as dry bulk handling gears including payloaders, forklifts, dumpers, trailers, grab along with development of storage yard, covered shed, ancillary facilities like additional internal road and rail infrastructure.

The private operator will be free to set rates based on market conditions.

Source: The Economic Times 

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