Syama Prasad Mookerjee Port: Adani Ports will win O&M deal

27 May 2024 CW Team

One of the 12 ports owned by the Union government, the eastern coast port is home to APSEZ, the only bidder to submit a price bid for the contract. The bidder offered approximately Rs 2,100 per twenty-foot equivalent unit (TEU), well within the ceiling rate set by the port authority to emerge as the successful bidder, according to multiple sources. The agreement would also help the port operator increase its presence in the port. A ceiling tariff was established by the Syama Prasad Mookerjee Port Authority.

The five-year contract will be awarded to the private company that provided the lowest quote for handling a loaded container under the Rs 2,127 ceiling fee, per the bidding rules. The port authorities will pay the private operator this sum in accordance with the terms of the O&M contract. The private operator will have to pay about Rs 5.69 billion (GST excluded) to build the necessary equipment, which includes 35 tractor trailers (TT), 3 Rubber Tyred Gantry Cranes (RTG), 12 Reach Stackers (RST), 4 Mobile Harbour Cranes (MHCs) that must be available around-the-clock, and two more MHCs that must be kept in reserve.

For the purpose of processing containers from geared boats, the port authorities will supply one non-MHC berth in addition to four berths for MHC operations. Additionally, the private operator might also have to operate geared vessels in MHC berths.

After the existing ten-year contract held by Bharat Kolkata Container Terminals Pvt Ltd, a fully owned subsidiary of Singapore's PSA International Pte Ltd, expires, APSEZ is anticipated to begin operating the five berths in November. The new O&M operator will be granted 1, 2, 3, 4, and 5 berths of NSD for a period of five years, while Bharat Kolkata Container Terminals continues to manage berths 3, 4, 5, 7, and 8. Concurrently, a public-private partnership (PPP) tender has been launched by the Syama Prasad Mookerjee Port Authority to privatise NSD berths 7 and 8, as well as a 25-acre backup area, for a period of 30 years. The PPP model is expected to handle around 5 lakh TEUs. APSEZ's second terminal at Syama Prasad Mookerjee Port will be the subject of the O&M deal. In 2023, APSEZ secured a 30-year contract to mechanise berth No. 2 at Haldia Dock with an investment of Rs 2.98 billion to handle 3.744 million tonnes (mt) of dry bulk cargo.

The largest private port operator in India, Adani Ports and Special Economic Zone Ltd. (APSEZ), is about to be awarded a five-year operation and maintenance (O&M) contract to handle containers from five berths at Syama Prasad Mookerjee Port Authority (formerly Kolkata Port Trust)'s Netaji Subhas Dock. One of the 12 ports owned by the Union government, the eastern coast port is home to APSEZ, the only bidder to submit a price bid for the contract. The bidder offered approximately Rs 2,100 per twenty-foot equivalent unit (TEU), well within the ceiling rate set by the port authority to emerge as the successful bidder, according to multiple sources. The agreement would also help the port operator increase its presence in the port. A ceiling tariff was established by the Syama Prasad Mookerjee Port Authority. The five-year contract will be awarded to the private company that provided the lowest quote for handling a loaded container under the Rs 2,127 ceiling fee, per the bidding rules. The port authorities will pay the private operator this sum in accordance with the terms of the O&M contract. The private operator will have to pay about Rs 5.69 billion (GST excluded) to build the necessary equipment, which includes 35 tractor trailers (TT), 3 Rubber Tyred Gantry Cranes (RTG), 12 Reach Stackers (RST), 4 Mobile Harbour Cranes (MHCs) that must be available around-the-clock, and two more MHCs that must be kept in reserve. For the purpose of processing containers from geared boats, the port authorities will supply one non-MHC berth in addition to four berths for MHC operations. Additionally, the private operator might also have to operate geared vessels in MHC berths. After the existing ten-year contract held by Bharat Kolkata Container Terminals Pvt Ltd, a fully owned subsidiary of Singapore's PSA International Pte Ltd, expires, APSEZ is anticipated to begin operating the five berths in November. The new O&M operator will be granted 1, 2, 3, 4, and 5 berths of NSD for a period of five years, while Bharat Kolkata Container Terminals continues to manage berths 3, 4, 5, 7, and 8. Concurrently, a public-private partnership (PPP) tender has been launched by the Syama Prasad Mookerjee Port Authority to privatise NSD berths 7 and 8, as well as a 25-acre backup area, for a period of 30 years. The PPP model is expected to handle around 5 lakh TEUs. APSEZ's second terminal at Syama Prasad Mookerjee Port will be the subject of the O&M deal. In 2023, APSEZ secured a 30-year contract to mechanise berth No. 2 at Haldia Dock with an investment of Rs 2.98 billion to handle 3.744 million tonnes (mt) of dry bulk cargo.

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