Essar Ports sole bidder for Chennai port project

Last Updated: Tue, Dec 25, 2012 19:00 hrs

Essar Ports is said to be the sole bidder for the proposed mega-container terminal project at Chennai port, one of the 13 owned by the government. It was learnt that another bidder, Adani Ports, had also shown interest in the Rs 3,683-crore project, but did not get a security clearance.

According to a port official, Essar Ports had offered a revenue share of 5.25 per cent, five per cent higher than Adani Ports’ bid. The official added the share was too low, and the port was considering asking Essar Ports to increase it.

Essar and Adani were the two final contenders, while seven companies had made it to the qualification round for the project, which will have a capacity to handle four million 20 foot equivalent units yearly.

Of the total project cost, Chennai Port Trust's share will be Rs 561 crore, while the private partner, which will build, own and transfer the project, will invest Rs 3,125 crore.

The proposed investment includes Rs 963 crore for breakwater, Rs 362 crore for dredging, Rs 497 crore for berths, Rs 124 crore for reclamation and rest for others.

Essar Ports develops and operates ports and terminals, and is one of the largest private sector port companies in India by capacity and throughput. It provides services for liquid, dry bulk, break bulk and general cargo.

If the company gets the container terminal project at Chennai, this will be its first such project.

More from Sify: