Mumbai terminal gains momentum

Such was the interest in the project that the port authority had to extend the bidding deadline until 11 March with 24 companies buying the tender document.

This contrasts with the totally negative response to the previous invitation to bid which was blamed by the port authority on the uncertainty over both the projected traffic potential and also cargo evaluation constraints.

However, in the new terms and conditions, new incentives were introduced.

The most important of these was the fact that one existing berth, on the Ballard Pier Estate, would be available to investors from day one. This berth can handle up to 200,000TEUs, so potential developers would be able to tap a revenue stream immediately. In addition, the port authority guarantees the provision of better road and rail links, while the cost of deepening the access channel to 15 metres alongside the berths would not be levied on private investors. Finally, land would be made available to develop a CFS is so required.

The project will be taken forward in two phases. Initially, two berths will be built capable of handling 800,000TEUs; a third berth will be added later bringing total capacity to 1.2mTEUs. Crucially, the right to build this third berth will be automatically awarded to the company building the first two berths.