Mumbai saga rolls on

Informed sources indicate that a major roadblock is the issue of Hutchison Port Holdings getting security clearance to bid for the project. The Cabinet Committee on Internal Security, which met in March to decide on the issue, referred the matter to the National Security Council who, in turn, requested an extension of the bid process to a date in May. Now, further delays in the bid process are anticipated while the security issue, and therefore Hutchison’s potential involvement in the project, continues to be mulled over.

Other interested bidders for the $200+ million project, which aims to establish two offshore container berths, include P&O Ports, Evergreen and Mitsui OSK Lines.

In all, eleven parties have expressed an interest in the scheme but now with nine postponements to the bid process to date speculation is surfacing that not all of these may stay the course.

In particular, there is a school of thought emerging that with the continued delays at Mumbai and an acceleration of the bid process for the fourth container terminal at nearby JNPT that the Mumbai project is being undermined.

JNPT port has brought forward the date of submission of bids for the fourth container terminal to 4 July.

It is also relevant that the JNPT project offers additional quay line to the Mumbai project as well as the three existing terminals at JNPT, and thus more business potential overall.

The JNPT project has attracted interest from major players such as DP World, PSA, APM Terminals and others.