Indian Cabinet panel approves five port expansion projects

Monday, 17 February 2014 00:00 - - {{hitsCtrl.values.hits}}

NEW DELHI: Within the next two months, the country’s major ports will be able to award port development projects that involve investments of over Rs. 17,630 crore, said the Shipping Ministry. The Cabinet Committee on Economic Affairs (CCEA) last week approved five projects involving an investment of over Rs. 17,630 crore to increase the capacity of major ports, said an official release.

These five projects are at an advance stage of tendering and are expected to be awarded by the end of March, it added. Of the five projects approved, four are container terminals and one is a multi-purpose cargo berth project in Mumbai port. Terminals The four container terminals are proposed in the major ports of Kandla (with capacity of 4.2 million twenty feet equivalent unit or MTEU), Jawaharlal Nehru Port Trust (4.8 MTEU), Kolkata (1.2 MTEU) and Ennore (1.4 MTEU). These projects will double the container handling capacity which is at 11.57 million TEUs, or estimated at over 146 MTPA in weight terms, stated the release. Mumbai port The capacity of the multi-purpose cargo berth proposed for Mumbai Port Trust will be 4.5 million tonne per annum (MTPA) and will handle automobiles, iron and steel cargo among others. These projects will reduce transaction costs by improving efficiency in handling operations and promote international trade. Bidding process There has been a good response in bidding with 11 players short-listed for the Ennore container terminal and seven for the JNPT 4{+t}{+h} container terminal. The Ministry of Shipping had a target to award 30 projects in the current financial year to add a capacity of about 282 MTPA at an estimated investment of over ₹26,400 crore. As against these targets, the Ministry had already awarded 23 projects at a cost of over ₹9,790 crore, which will create an additional capacity of 116 MTPA.