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Five port operators bid to develop Vizhinjam

Five port operators bid to develop Vizhinjam
A consortium featuring South Korean business conglomerate Hyundai and Indian steel industry player Concast is among the five port operators to have responded to the global tender floated by Vizhinjam International Seaport Ltd (VISL) for developing an international container transhipment terminal at Vizhinjam, on the south-western Indian coast.

The other four to have expressed interest in the INR50bn ($820m) project are Gammon Infrastructure, Essar Ports, Adani Ports & Special Economic Zone and a consortium comprising Spanish construction firm Obrascon Huarte Lain and India’s Srei Infrastructure Finance.

VISL had earlier called for Requests for Qualification (RFQs) to build the port superstructure and operate the proposed deepwater port ad container transhipment terminal at Vizhinjam, located about 16 km from Thiruvananthapuram, near the world-renowned tourist resort Kovalam Beach, in Kerala.

The same five players have responded to the other RFQ for engineering, procurement and construction (EPC) works floated separately. The deadline for the first tender (building superstructure and operating the port) was 10 March, while the last date for the second tender is 30 June this year.

VISL had indicated that the same entity take up work indicated under both RFQs, apparently in line with the central government’s new thinking with respect to implementing mega projects. Sources revealed that the intention was to avoid a situation that had come about in the Delhi airport metro project involving a Reliance Infra subsidiary.

The RFQs are to be examined by VISL’s technical and legal consultants, and their reports referred to an empowered committee led by the chief secretary, Kerala. The entities clearing this round would, in turn, be served the RFQ documents for the EPC works.

“The fact that this mega project has attracted the attention of five leading port operators is in itself a major advertisement for the project, which has come right back into the global reckoning,” said VISL’s ceo and managing director A S Suresh Babu.

A strong recommendation has been made by the Planning Commission to relax the cabotage (coastal shipping) rules for Vizhinjam, along the lines done for the DP World run International Container Transhipment Terminal in Vallarpadam, Kochi.

“It is unlikely that the model code of conduct for the general elections will come in the way of a formal announcement about cabotage relaxation,” said Suresh Babu. “That is because Vizhinjam has been a work in progress for a long time, and any incremental decision on it would only be a matter of routine procedure.”

The Vizhinjam port project has been delayed on several occasions, and even witnessed a walkout in the Kerala state assembly last month by the Opposition, led by the Communist Party of India (Marxist) over the alleged efforts of the United Democratic Front government to sabotage the project.