Port of Singapore (PSA) has bagged the R8,000-crore mega container terminal project of Jawaharlal Nehru Port Trust (JNPT), nearly two years after the foreign company had walked out of the project. The crucial project, which is expected to increase JNPT’s capacity twofold, got a tepid response with only two bids coming in.
?Among the bids received, PSA had placed the higher revenue share price bid of 35.9%, while Adani Ports and Special Economic Zone submitted a revenue share price bid of 29%,” JNPT’s chairman-in-charge NN Kumar said. Port contracts at government-controlled ports are decided on the basis of revenue share ? the entity that is willing to share the most from its annual revenue bags the contract.
JNPT had received interest from eight companies in August for building the project. Of the eight, Essar Group was disqualified in November as it fell short of certain criteria. JNPT had revised the minimum criteria for the amount of work done to about R12,000 crore. However, Essar’s submission was lower than that.
The companies that qualified for the fourth container terminal were Adani, APM Terminals, PSA, Sterlite Ports, DP World, United Liner Agencies and International Container Terminal Services.
The mega terminal is expected to add 4.8 million TEU (twenty-foot equivalent unit) per annum, helping JNPT achieve its goal of 10.5 million TEUs over the next five years.