A diverse range of interested parties are showing an interest in the proposed four million TEU capacity container terminal in the outer harbour of V O Chidambaranar (VOC) Port.
In an official “pre-bid” meeting, reports in India confirm that potential operators, Adani Ports and Special Economic Zone Ltd (APSEZ), PSA International Pte Ltd of Singapore, JSW Infrastructure Ltd and J M Baxi Ports and Logistics Ltd, were among the participants.
Also in attendance were Dutch dredging contractor Van Oord India Pvt Ltd and International Seaport Dredging Pvt Ltd, a part of Belgium’s DEME Group, presumably because of a large, phased requirement for dredging to support the project.
Mohan Muthu, a local rock supplier also participated, no doubt interested in the 5.5km breakwater construction component.
A previous roadshow for this project was held by VOC Port Authority in mid-March 2024, but feedback at the time from potential bidders suggested that the project cost estimates from the state-owned port authority needed to be reviewed. Bidders urged the port authority to re-visit the cost estimates or else to raise the viability gap funding to 50 per cent of the project cost to make it attractive.
As a result, the port authority is requesting interest based on the lowest viability gap funding (VGF) quoted by bidders for developing the project. This makes it different from the model followed previously for unionised and government-owned major ports in which cargo handling contracts are finalised on the basis of the highest royalty per TEU or per ton of cargo quoted by the bidders.
