DP World tops India port contract bid

Monday, 8 October 2012 00:00 - - {{hitsCtrl.values.hits}}

DP World, the global port operator based in Dubai, has emerged as the lone bidder for developing a new container loading facility at Jawaharlal Nehru port near Mumbai as India’s busiest container port seeks to expand much-needed capacity.

JN port plans to develop, through private investments, a small container terminal with a berth length of 330 m – half the normal length of 650-700 m with a capacity to handle 800,000 standard containers a year. Port contracts at Union government-controlled ports are decided on the basis of revenue share. The bidder willing to share the most from its annual revenue with the government-owned port gets the contract, typically stretching 30 years, according to the port privatisation policy of the Union government.

DP World, majority owned by the Dubai government, quoted a revenue share of 27.09 per cent, a JN port spokesperson said. DP World is the world’s fourth biggest container port operator by volume. “We have submitted our bid for the project,” said Anil Singh, Senior Vice-President and Managing Director (Subcontinent) at DP World.

“DP World is committed to India and if the project is awarded to us, we will spare no efforts in bringing the project on stream in the shortest possible time,” he noted. JN Port opened the price bid submitted by DP World on Thursday after the Mumbai high court ruled that a consortium led by ABG Ports — a pre-qualified bidder — could not bid for the facility.

The other short-listed bidding groups for this terminal included Grup TCB SL-Eredene Capital and, Sterlite Industries-Leighton Contractors (India) Private Limited.