Wednesday June 27 2007 09:05 IST
T’PURAM: The proposed Vizhinjam International Container Terminal will not have a ‘clone’ within 150 km on either side of it on the Kerala coastline, the State Government has decided.
The government has also decided to bear the cost for developing external infrastructure for the project such as railway and road, a responsibility which it had earlier vested with the private partner.In fact, the government reinstated two conditions on Tuesday which it had done away with while announcing that it was going in for global tenders for the project a second time.As in the last bid, the State Government will also bear the contingent liability capped at Rs 67.50 crore, if changes occur in the basic design, subsequent to drilling and collection of data by the successful bidder.
And, the company that successfully bids and operates the port for 30 years, the original concession period, will also have the First Right of Refusal to match the winning bid if the government decided to bid out the port operation after the concession period expires.These are the changes that the government approved on Tuesday in the Request for Proposal (RFP) for global tender to invite the private partner for the multi-crore project.
Initially, a State Government grant was proposed to meet the expenses for developing the external infrastructure for the project, amounting to Rs 80 crore. This was modified later. The public-private partnership that emerges after a successful bid would have to meet the cost, the government had decided.This was one point to which the companies, taking part in an investors’ meet for the project on April 17, objected.
The decision to ban private developers from constructing a similar container transshipment terminal within 150 km in the state also arose from a suggestion from companies at the investors’ meet.
But, not allowing a similar port nearby is not such a big issue. What with the Vallarpadom Container Transshipment Terminal coming up in Kochi, there will be little scope for another in-between, anyway. Besides, it applies only to the region north of Vizhinjam, because in the south, the Tamil Nadu border is close by, and the condition does not apply beyond Kerala borders.
As many as 43 companies, big and small, including giants such as the Russian Rosoboron had taken part in the investor meet, the first one by the State Government for a single project, in April.The State Government had decided on a second round of global bid after the Centre denied clearance to a Chinese-led consortium that had originally grabbed the project.
Wednesday, June 27, 2007
Tuesday, June 26, 2007
'Expedite Vizhinjam project’
'Expedite Vizhinjam project’
Special Correspondent
Janapaksham accuses Finance Department officials of bid to sabotage project
THIRUVANANTHAPURAM: The Janapaksham people’s movement for the Vizhinjam container terminal has accused a section of officials in the Finance Department of attempting to sabotage the project.
A meeting of Janapaksham leaders here on Saturday alleged that the officials had failed to honour the timeframe for the project announced by the Chief Minister at the Investors’ Meet held on April 17. The meeting alleged that the Finance Department had blocked the sanction of Rs.80 crore as consultancy fee for the preparation of the international tender form and Rs.15 crore for revising the project report. It said the process of preparing a fresh estimate and tender would set the project back by at least two months.
Janapaksham alleged that the move to exclude the Ports Secretary from the Finance Committee of the Vizhinjam International Seaport Limited (VISL) was part of a conspiracy to undermine the project.
It urged the Government to identify and punish the officials responsible for the lapses. It also called upon the Government to begin the construction works for the project by December 2007.
Presiding over the meeting, Janapaksham leader Appukuttan Pillai warned that the movement would launch an agitation if the Government failed to take timely action to expedite the project.
K.S. Manoj, Swaminathan, K.C.S. Nair, Ramakrishna Pillai and Wilfred Kulas were present.
Special Correspondent
Janapaksham accuses Finance Department officials of bid to sabotage project
THIRUVANANTHAPURAM: The Janapaksham people’s movement for the Vizhinjam container terminal has accused a section of officials in the Finance Department of attempting to sabotage the project.
A meeting of Janapaksham leaders here on Saturday alleged that the officials had failed to honour the timeframe for the project announced by the Chief Minister at the Investors’ Meet held on April 17. The meeting alleged that the Finance Department had blocked the sanction of Rs.80 crore as consultancy fee for the preparation of the international tender form and Rs.15 crore for revising the project report. It said the process of preparing a fresh estimate and tender would set the project back by at least two months.
Janapaksham alleged that the move to exclude the Ports Secretary from the Finance Committee of the Vizhinjam International Seaport Limited (VISL) was part of a conspiracy to undermine the project.
It urged the Government to identify and punish the officials responsible for the lapses. It also called upon the Government to begin the construction works for the project by December 2007.
Presiding over the meeting, Janapaksham leader Appukuttan Pillai warned that the movement would launch an agitation if the Government failed to take timely action to expedite the project.
K.S. Manoj, Swaminathan, K.C.S. Nair, Ramakrishna Pillai and Wilfred Kulas were present.
Kerala throws Swiss formula at Vizhinjam deal
Source:financial express
THIRUVANANTHAPURAM: The Left Democratic Front government in Kerala has taken a leaf out of Switzerland’s football manuals to sweeten the Rs 4,360-crore Vizhinjam Deepsea Port project.
Besides adopting the Swiss Challenge approach in project-financing, the VS Achuthanandan government is toying with the idea of expanding the port plans with two special economic zones—one port-based SEZ and another industry SEZ.'
The Kerala cabinet, which cleared the Vizhinjam project plan last week, had insisted on limiting the BoT partner’s tenure to 30 years. Most investors at the pre-bid meet had sought at least 40 years. But the chief minister was unrelenting.However, the chief minister doesn’t seem to mind the ‘Swiss Challenge’ clause. In the Swiss Challenge method (originally, a football term), the government gives the challenger a chance to make better offers than the first contestant, then allows the original contestant to countermatch. With the Kerala cabinet tailoring this clause, the Vizhinjam BoT partner has an advantage. He is empowered to match the best bidder and reclaim the project, if the state government decides to go for bidding again.
The SEZsbonanza for Vizhinjam, however, is yet to be decided. While the 100-acre port-based SEZ would fulfil the new port’s warehousing needs, getting a socio-political consesus for the 250-acre industrial SEZ near Vizhjinham port will be a difficult task.After initial cash-flow problems, the port project picked up some momentum last week. L&T Ramboll and IL&FS are working on it simultaneously.
‘‘We expect RFQ (request for qualification) papers to be picked up by June-end,’’ says L Radhakrishnan, CEO, Vizhinjam Deepsea ICT. At the pre-bid meet, the state had promised to get it going by May 2007.This is Kerala’s second go at Vizhinjham. The port is eyeing at least 50% of the 50,000 mother-ships that now traffic the Suez Canal route. It was on the issue of security clearance to the Chinese partner that the project's bidding schedule tripped the first time.
At the renewed pre-bid meet in April, as many as 43 firms, including 12 overseas infrastructure giants, held talks with chief minister Achuthanandan.When it is not money, it is time that's unsettling Vizhinjam plans. Even the slightest delay may impact the iInternal rate of returns. As it is, the cost is expected to have escalated by 25% to about Rs 5,500 crore.
THIRUVANANTHAPURAM: The Left Democratic Front government in Kerala has taken a leaf out of Switzerland’s football manuals to sweeten the Rs 4,360-crore Vizhinjam Deepsea Port project.
Besides adopting the Swiss Challenge approach in project-financing, the VS Achuthanandan government is toying with the idea of expanding the port plans with two special economic zones—one port-based SEZ and another industry SEZ.'
The Kerala cabinet, which cleared the Vizhinjam project plan last week, had insisted on limiting the BoT partner’s tenure to 30 years. Most investors at the pre-bid meet had sought at least 40 years. But the chief minister was unrelenting.However, the chief minister doesn’t seem to mind the ‘Swiss Challenge’ clause. In the Swiss Challenge method (originally, a football term), the government gives the challenger a chance to make better offers than the first contestant, then allows the original contestant to countermatch. With the Kerala cabinet tailoring this clause, the Vizhinjam BoT partner has an advantage. He is empowered to match the best bidder and reclaim the project, if the state government decides to go for bidding again.
The SEZsbonanza for Vizhinjam, however, is yet to be decided. While the 100-acre port-based SEZ would fulfil the new port’s warehousing needs, getting a socio-political consesus for the 250-acre industrial SEZ near Vizhjinham port will be a difficult task.After initial cash-flow problems, the port project picked up some momentum last week. L&T Ramboll and IL&FS are working on it simultaneously.
‘‘We expect RFQ (request for qualification) papers to be picked up by June-end,’’ says L Radhakrishnan, CEO, Vizhinjam Deepsea ICT. At the pre-bid meet, the state had promised to get it going by May 2007.This is Kerala’s second go at Vizhinjham. The port is eyeing at least 50% of the 50,000 mother-ships that now traffic the Suez Canal route. It was on the issue of security clearance to the Chinese partner that the project's bidding schedule tripped the first time.
At the renewed pre-bid meet in April, as many as 43 firms, including 12 overseas infrastructure giants, held talks with chief minister Achuthanandan.When it is not money, it is time that's unsettling Vizhinjam plans. Even the slightest delay may impact the iInternal rate of returns. As it is, the cost is expected to have escalated by 25% to about Rs 5,500 crore.
Saturday, June 23, 2007
China moves into India's back yard
China moves into India's back yard
By Sudha Ramachandran BANGALORE -
China is all set to drop anchor at India's southern doorstep. An agreement has been finalized between Sri Lanka and China under which the latter will participate in the development of a port project at Hambantota on the island's south coast. An agreement on the Hambantota project was among eight that were signed during Sri Lankan President Mahinda Rajapakse's recent visit to China. Even as the Sri Lankans were finalizing the deal with the Chinese, they clinched an agreement with the Americans.
In Colombo, officials reached agreement on an Acquisition and Cross-Servicing Agreement (ACSA) with the US. The agreements come at a time when India is already watching with concern the growing Pakistani influence in Sri Lanka. The Hambantota Development Zone, which the Chinese will help build, will include a container port, a bunkering system, an oil refinery, an airport and other facilities. It is expected to cost about US$1 billion and the Chinese are said to be financing more than 85% of the project. Construction on the first phase of the project is scheduled to begin in July and is due to be completed in three years. The entire project is scheduled to be completed in the next 15 years. Sino-Sri Lankan cooperation on the port project is expected to propel Hambantota, 240 kilometers south of the Lankan capital, Colombo, into a major transshipment hub. Hambantota's infrastructure will help service hundreds of ships that ply the waters to the south of Sri Lanka.
China's role in the Hambantota project has stirred concern in some quarters in India. Some analysts here have argued that India has lost out to the Chinese. They say China won the project thanks to Indian lethargy and shortsightedness. According to this view, while India has been dragging its feet on this and other issues, the Chinese quickly moved in to clinch the deal.
In the process, it has made inroads into Sri Lanka - a country that India regards as within its sphere of influence. However, there are others who have played down the implications of the Sino-Lankan cooperation at Hambantota. They dismiss allegations that India lost the port project to the Chinese and maintain that India was not interested in the Hambantota oil-tank farm and bunkering project in the first place, as it already has a sizable presence in Trincomalee on Sri Lanka's northeast coast.
"India feels that it is unnecessary to bid for it [Hambantota] given the fact that it is already refurbishing the World War II-vintage oil-tank farm at Trincomalee with 99 giant tanks. Out of these, only 35 can be put to use in the near future," a report in the Hindustan Times said in 2005. "There isn't enough business in Sri Lanka to make expansion worthwhile even in Trincomalee. India also does not consider the Hambantota project to be of a great strategic value, either. For India, a presence in Trincomalee makes much more strategic sense." An official in Delhi told Asia Times Online that while the Hambantota project gives the Chinese a foothold in Sri Lanka, this cannot be interpreted as a decline in India's role on the island. Geographic proximity, ethnic links and close ties between India and Sri Lanka cannot be eroded by a few projects and agreements with other countries, he said.
But the Chinese role in the Hambantota project is not just about influence in Sri Lanka. It is about China's presence close to Indian shores, which has implications for India's security. Besides, with Hambantota, Chinese presence in the Indian Ocean has been further consolidated. The Hambantota port project is the latest in a series of steps that China has taken in recent years to consolidate its access to the Indian Ocean and to secure sea lanes through which its energy supplies are transported.
It has adopted what analysts describe as a "string of pearls" strategy, building strategic relationships with countries along sea lanes from the Middle East to the South China Sea. One such "pearl" is Gwadar, Pakistan. Since late 2001, China has been engaged in constructing and developing a deepsea port and a special economic zone at Gwadar, in Balochistan province. China's interest in Gwadar is motivated by the latter's strategic location.
Gwadar is just 72km from the Iranian border and 400km east of the Strait of Hormuz, a major conduit of global oil supplies. China's massive involvement in the Gwadar project - it has provided most of its funding and technical expertise - has provided Beijing with a "listening post" from where it can "monitor US naval activity in the Persian Gulf, Indian activity in the Arabian Sea, and future US-Indian maritime cooperation in the Indian Ocean", Zia
Haider, an analyst at the Washington-based Stimson Center, has noted. Other "pearls" that China has been developing are naval facilities in Bangladesh, where it is developing a container-port facility at Chittagong; in Myanmar, where it is building radar, refit and refuel facilities at bases in Sittwe, Coco, Hianggyi, Khaukphyu, Mergui and Zadetkyi Kyun; and in Thailand and Cambodia. At this juncture the Hambantota project does not seem to be in the same league as Gwadar.
For one, it is not clear whether theSri Lankans want China to develop Hambantota on the lines of the Pakistani port. Besides, Hambantota does not sit at the mouth of the strategic Persian Gulf. Neither is the port as vital to China's energy security or trade and economic development as are other "pearls" such as Gwadar and Sittwe. But the significance of Hambantota to China lies in its proximity to India's south coast and on the fact that it provides Beijing with presence midway in the Indian Ocean.
The Indian Ocean is a critical waterway for global trade and commerce. Half the world's containerized freight, a third of its bulk cargo and two-thirds of its oil shipments travel through the Indian Ocean. It provides major sea routes connecting Africa, the Middle East, South Asia and East Asia with Europe and the Americas and is home to several critical chokepoints such as the Strait of Hormuz and the Strait of Malacca. This makes the Indian Ocean important to the Chinese, the Americans, the Indians, the Japanese and scores of other countries, and hence the calculated moves of several powers to consolidate their presence in Indian Ocean littorals. This is the prime factor motivating the Americans to go for the ACSA with the Sri Lankans. The agreement provides a framework for increased interoperability to transfer and exchange logistics supplies, and support and refueling services during peacekeeping missions, humanitarian operations, and joint exercises.
In essence, it will give the Americans a base at India's doorstep. While the US has described this agreement as "a barter deal on goods and services" and as "a very routine and fairly moderate" agreement, others are warning that it has "major ramifications for the region, particularly India". "For all the sophistry and spin by the Americans, the ACSA is a military deal and, on the face of it, is loaded in Washington's favor," wrote Muralidhar Reddy, The Hindu's Colombo-based correspondent.
"For the US, it is as good as acquiring a base in the Indian Ocean, and at little or no cost. "Just a few years ago, such an agreement would have been inconceivable given the sensitivities of India in view of the geographical proximity of Sri Lanka. For example, the grant of permission by Colombo to Voice of America to establish its transmitter on the island and the leasing of oil tanks in Trincomalee port to pro-American firms were major bones of contention between India and Sri Lanka for decades," Reddy wrote.
But today New Delhi is silent. This is because of "the changed geopolitical environment in the post-Cold War era" and the changed India-US relationship. "The provisions of the ACSA cannot be described as being detrimental to New Delhi's interests in the current phase of its relations with Washington," wrote Reddy, adding: "However, in a possible new context, India has every reason to be concerned about the pact."
During the Cold War, India bitterly opposed the US presence in Diego Garcia, 1,600km to the south of India's coast. But today, with India-US relations blossoming, Delhi appears to have given its blessings to a US "base" in a country that is a few dozen kilometers from its coastline. Today it is only China lurking in waters near its coast that worries India. But both deals that Sri Lanka finalized with the Chinese and the Americans last week make India's southern neighborhood more crowded with extra-regional powers. This has implications for India's security and its interests and ambitions in the Indian Ocean.
Sudha Ramachandran is an independent journalist/researcher based in Bangalore.
By Sudha Ramachandran BANGALORE -
China is all set to drop anchor at India's southern doorstep. An agreement has been finalized between Sri Lanka and China under which the latter will participate in the development of a port project at Hambantota on the island's south coast. An agreement on the Hambantota project was among eight that were signed during Sri Lankan President Mahinda Rajapakse's recent visit to China. Even as the Sri Lankans were finalizing the deal with the Chinese, they clinched an agreement with the Americans.
In Colombo, officials reached agreement on an Acquisition and Cross-Servicing Agreement (ACSA) with the US. The agreements come at a time when India is already watching with concern the growing Pakistani influence in Sri Lanka. The Hambantota Development Zone, which the Chinese will help build, will include a container port, a bunkering system, an oil refinery, an airport and other facilities. It is expected to cost about US$1 billion and the Chinese are said to be financing more than 85% of the project. Construction on the first phase of the project is scheduled to begin in July and is due to be completed in three years. The entire project is scheduled to be completed in the next 15 years. Sino-Sri Lankan cooperation on the port project is expected to propel Hambantota, 240 kilometers south of the Lankan capital, Colombo, into a major transshipment hub. Hambantota's infrastructure will help service hundreds of ships that ply the waters to the south of Sri Lanka.
China's role in the Hambantota project has stirred concern in some quarters in India. Some analysts here have argued that India has lost out to the Chinese. They say China won the project thanks to Indian lethargy and shortsightedness. According to this view, while India has been dragging its feet on this and other issues, the Chinese quickly moved in to clinch the deal.
In the process, it has made inroads into Sri Lanka - a country that India regards as within its sphere of influence. However, there are others who have played down the implications of the Sino-Lankan cooperation at Hambantota. They dismiss allegations that India lost the port project to the Chinese and maintain that India was not interested in the Hambantota oil-tank farm and bunkering project in the first place, as it already has a sizable presence in Trincomalee on Sri Lanka's northeast coast.
"India feels that it is unnecessary to bid for it [Hambantota] given the fact that it is already refurbishing the World War II-vintage oil-tank farm at Trincomalee with 99 giant tanks. Out of these, only 35 can be put to use in the near future," a report in the Hindustan Times said in 2005. "There isn't enough business in Sri Lanka to make expansion worthwhile even in Trincomalee. India also does not consider the Hambantota project to be of a great strategic value, either. For India, a presence in Trincomalee makes much more strategic sense." An official in Delhi told Asia Times Online that while the Hambantota project gives the Chinese a foothold in Sri Lanka, this cannot be interpreted as a decline in India's role on the island. Geographic proximity, ethnic links and close ties between India and Sri Lanka cannot be eroded by a few projects and agreements with other countries, he said.
But the Chinese role in the Hambantota project is not just about influence in Sri Lanka. It is about China's presence close to Indian shores, which has implications for India's security. Besides, with Hambantota, Chinese presence in the Indian Ocean has been further consolidated. The Hambantota port project is the latest in a series of steps that China has taken in recent years to consolidate its access to the Indian Ocean and to secure sea lanes through which its energy supplies are transported.
It has adopted what analysts describe as a "string of pearls" strategy, building strategic relationships with countries along sea lanes from the Middle East to the South China Sea. One such "pearl" is Gwadar, Pakistan. Since late 2001, China has been engaged in constructing and developing a deepsea port and a special economic zone at Gwadar, in Balochistan province. China's interest in Gwadar is motivated by the latter's strategic location.
Gwadar is just 72km from the Iranian border and 400km east of the Strait of Hormuz, a major conduit of global oil supplies. China's massive involvement in the Gwadar project - it has provided most of its funding and technical expertise - has provided Beijing with a "listening post" from where it can "monitor US naval activity in the Persian Gulf, Indian activity in the Arabian Sea, and future US-Indian maritime cooperation in the Indian Ocean", Zia
Haider, an analyst at the Washington-based Stimson Center, has noted. Other "pearls" that China has been developing are naval facilities in Bangladesh, where it is developing a container-port facility at Chittagong; in Myanmar, where it is building radar, refit and refuel facilities at bases in Sittwe, Coco, Hianggyi, Khaukphyu, Mergui and Zadetkyi Kyun; and in Thailand and Cambodia. At this juncture the Hambantota project does not seem to be in the same league as Gwadar.
For one, it is not clear whether theSri Lankans want China to develop Hambantota on the lines of the Pakistani port. Besides, Hambantota does not sit at the mouth of the strategic Persian Gulf. Neither is the port as vital to China's energy security or trade and economic development as are other "pearls" such as Gwadar and Sittwe. But the significance of Hambantota to China lies in its proximity to India's south coast and on the fact that it provides Beijing with presence midway in the Indian Ocean.
The Indian Ocean is a critical waterway for global trade and commerce. Half the world's containerized freight, a third of its bulk cargo and two-thirds of its oil shipments travel through the Indian Ocean. It provides major sea routes connecting Africa, the Middle East, South Asia and East Asia with Europe and the Americas and is home to several critical chokepoints such as the Strait of Hormuz and the Strait of Malacca. This makes the Indian Ocean important to the Chinese, the Americans, the Indians, the Japanese and scores of other countries, and hence the calculated moves of several powers to consolidate their presence in Indian Ocean littorals. This is the prime factor motivating the Americans to go for the ACSA with the Sri Lankans. The agreement provides a framework for increased interoperability to transfer and exchange logistics supplies, and support and refueling services during peacekeeping missions, humanitarian operations, and joint exercises.
In essence, it will give the Americans a base at India's doorstep. While the US has described this agreement as "a barter deal on goods and services" and as "a very routine and fairly moderate" agreement, others are warning that it has "major ramifications for the region, particularly India". "For all the sophistry and spin by the Americans, the ACSA is a military deal and, on the face of it, is loaded in Washington's favor," wrote Muralidhar Reddy, The Hindu's Colombo-based correspondent.
"For the US, it is as good as acquiring a base in the Indian Ocean, and at little or no cost. "Just a few years ago, such an agreement would have been inconceivable given the sensitivities of India in view of the geographical proximity of Sri Lanka. For example, the grant of permission by Colombo to Voice of America to establish its transmitter on the island and the leasing of oil tanks in Trincomalee port to pro-American firms were major bones of contention between India and Sri Lanka for decades," Reddy wrote.
But today New Delhi is silent. This is because of "the changed geopolitical environment in the post-Cold War era" and the changed India-US relationship. "The provisions of the ACSA cannot be described as being detrimental to New Delhi's interests in the current phase of its relations with Washington," wrote Reddy, adding: "However, in a possible new context, India has every reason to be concerned about the pact."
During the Cold War, India bitterly opposed the US presence in Diego Garcia, 1,600km to the south of India's coast. But today, with India-US relations blossoming, Delhi appears to have given its blessings to a US "base" in a country that is a few dozen kilometers from its coastline. Today it is only China lurking in waters near its coast that worries India. But both deals that Sri Lanka finalized with the Chinese and the Americans last week make India's southern neighborhood more crowded with extra-regional powers. This has implications for India's security and its interests and ambitions in the Indian Ocean.
Sudha Ramachandran is an independent journalist/researcher based in Bangalore.
What they do-How they do!
http://www.slpa.lk/Trinco1.jpg
Three pronged strategy to re-develop Trinco PortSRI LANKA Ports Authority (SLPA) has decided to re develop South Asia's biggest natural harbour, in Trincomalee.
Vice Chairman Sri Lanka Ports Authority Dr. Krishan Deheragoda said this would be one of their priorities. Trincomalee has been neglected for the past two to three decades and this was the reason for the government to decide to re-develop the harbour. The SLPA has formulated a three pronged strategy for this purpose. The Trincomalee Port has over 500 acres of land out of which only less than 20 percent has been developed. Some of the land belonging to the Port has been encroached and the SLPA planning to relocate some of the encroached families out side the harbour area. Dr. Deheragoda said that the available land would be developed in three zones. One zone would be for tourism where land would be provided for building of hotels and other leisure activities. "We would be soon calling for expressions of interest (EOA) for this purpose," he said. The second zone would be for an industrial park. This area would provide space for ware houses, oil tanks and all other port related activities. The third area would be for relocating several families who have encroached land belonging to the SLPA. Dr. Deheragoda said that they are also planning to separate a special area for high end eco tourism. "What we are planning to do is to leave some of the existing land with thick jungle for this purpose," he said. The government will also focus on passenger transport operating to and from the Trincomalee Port since the area is a major tourist attraction. Trincomalee is a natural harbour which is approximately 18 hours sailing from the main lane of international waters. The inner port draft is unlimited and any type of vessels can be accommodated and co-ordinated. Trincomalee, is considered by military experts as one of the best deep sea ports in the world. It is situated strategically on the sea routes through which oil is carried from the Middle East to East and far-eastern Asia. According to observers, Trincomalee is a "strategic jewel". The Chinese government has already pledged assistance to develop the Hambantota harbour.ipping line would further boost volumes of the Colombo Port, he said.
Sri Lanka Breaks Ground For US$1.2 Billion Port Expansion 19 December 2006COLOMBO (Dow Jones)--
Sri Lanka has begun a US$1.2 billion project to triple the container-handling capacity of the island's main sea port. The Colombo port will add four terminals, each with four berths, under the project launched by President Mahinda Rajapakse late Monday.
Sri Lanka Ports Authority Chairman Saliya Wickramasuriya said the Asian Development Bank has come forward with a LKR35 billion concessionary funding line to start the first phase. Construction work is expected to begin in July and be completed within 39 months, Wickramasuriya said during the ground-breaking ceremony Monday. "This is a long-awaited project, that will boost our business opportunities and enhance the economic development of our country," he said. Rajapakse said the port capacity would increase to 12 million containers a year from the current 4 million once the project was completed. Shipping Minister Mangala Samaraweera said the harbor facility would be government-owned but public-private partnerships would provide terminal services.
Coscon vessels will come to Colombo
http://www.slpa.lk/CompanyLogo/Cosco.gif
The first vessel of Coscon Shipping, one of the largest shipping lines in China will arrive at Colombo Port in July following an agreement signed with Sri Lanka Ports Authority (SLPA). Chief Representative in Sri Lanka of China Ocean Shipping (group) Company a subsidiary of Coscon Shipping, Xu Zhi Bin said yesterday at the occasion of signing the agreement that the shipping line decided to come to Colombo port since it is a feeder hub in the region and has very good infrastructure facilities. "Colombo Port's productivity too has improved and it is also located close to the main sea hub," he said. Chairman SLPA Dileepa Wijesundara said that Coscon Shipping's plan to come to Colombo Port shows the confidence the global leading shipping lines have in the Colombo Port. "This is a major plus point for the Colombo Port," he said. The Chairman also said that the Port is on an upward trend and they are in sight of achieving their targets. "Last April we recorded a 32 percent increased volume and this was a record," he said. The presence of Coscon Shipping, a fast growing Shipping line would further boost volumes of the Colombo Port, he said.
Three pronged strategy to re-develop Trinco PortSRI LANKA Ports Authority (SLPA) has decided to re develop South Asia's biggest natural harbour, in Trincomalee.
Vice Chairman Sri Lanka Ports Authority Dr. Krishan Deheragoda said this would be one of their priorities. Trincomalee has been neglected for the past two to three decades and this was the reason for the government to decide to re-develop the harbour. The SLPA has formulated a three pronged strategy for this purpose. The Trincomalee Port has over 500 acres of land out of which only less than 20 percent has been developed. Some of the land belonging to the Port has been encroached and the SLPA planning to relocate some of the encroached families out side the harbour area. Dr. Deheragoda said that the available land would be developed in three zones. One zone would be for tourism where land would be provided for building of hotels and other leisure activities. "We would be soon calling for expressions of interest (EOA) for this purpose," he said. The second zone would be for an industrial park. This area would provide space for ware houses, oil tanks and all other port related activities. The third area would be for relocating several families who have encroached land belonging to the SLPA. Dr. Deheragoda said that they are also planning to separate a special area for high end eco tourism. "What we are planning to do is to leave some of the existing land with thick jungle for this purpose," he said. The government will also focus on passenger transport operating to and from the Trincomalee Port since the area is a major tourist attraction. Trincomalee is a natural harbour which is approximately 18 hours sailing from the main lane of international waters. The inner port draft is unlimited and any type of vessels can be accommodated and co-ordinated. Trincomalee, is considered by military experts as one of the best deep sea ports in the world. It is situated strategically on the sea routes through which oil is carried from the Middle East to East and far-eastern Asia. According to observers, Trincomalee is a "strategic jewel". The Chinese government has already pledged assistance to develop the Hambantota harbour.ipping line would further boost volumes of the Colombo Port, he said.
Sri Lanka Breaks Ground For US$1.2 Billion Port Expansion 19 December 2006COLOMBO (Dow Jones)--
Sri Lanka has begun a US$1.2 billion project to triple the container-handling capacity of the island's main sea port. The Colombo port will add four terminals, each with four berths, under the project launched by President Mahinda Rajapakse late Monday.
Sri Lanka Ports Authority Chairman Saliya Wickramasuriya said the Asian Development Bank has come forward with a LKR35 billion concessionary funding line to start the first phase. Construction work is expected to begin in July and be completed within 39 months, Wickramasuriya said during the ground-breaking ceremony Monday. "This is a long-awaited project, that will boost our business opportunities and enhance the economic development of our country," he said. Rajapakse said the port capacity would increase to 12 million containers a year from the current 4 million once the project was completed. Shipping Minister Mangala Samaraweera said the harbor facility would be government-owned but public-private partnerships would provide terminal services.
Coscon vessels will come to Colombo
http://www.slpa.lk/CompanyLogo/Cosco.gif
The first vessel of Coscon Shipping, one of the largest shipping lines in China will arrive at Colombo Port in July following an agreement signed with Sri Lanka Ports Authority (SLPA). Chief Representative in Sri Lanka of China Ocean Shipping (group) Company a subsidiary of Coscon Shipping, Xu Zhi Bin said yesterday at the occasion of signing the agreement that the shipping line decided to come to Colombo port since it is a feeder hub in the region and has very good infrastructure facilities. "Colombo Port's productivity too has improved and it is also located close to the main sea hub," he said. Chairman SLPA Dileepa Wijesundara said that Coscon Shipping's plan to come to Colombo Port shows the confidence the global leading shipping lines have in the Colombo Port. "This is a major plus point for the Colombo Port," he said. The Chairman also said that the Port is on an upward trend and they are in sight of achieving their targets. "Last April we recorded a 32 percent increased volume and this was a record," he said. The presence of Coscon Shipping, a fast growing Shipping line would further boost volumes of the Colombo Port, he said.
Rajeev Chandrasekhar to invest Rs1,300 cr in Maharashtra port
Rajeev Chandrasekhar to invest Rs1,300 cr in Maharashtra port
Rajeev Chandrasekhar, who made a fortune by selling his stake in mobile service provider BPL Mobile, is betting big on the Indian ports sector.
Chandrasekhar, now a Rajya Sabha member, plans to develop and operate a Rs1,300 crore port at Vijaydurg, in Maharashtra’s Sindhudurg district through his firm Jupiter Capital, which is being awarded the project without any competitive bidding process.
“We have finalized a proposal to develop Vijaydurg port by Jupiter Capital for a (concession) period of 50 years. The government of Maharashtra is expected to approve the award, after which a formal announcement will be made,” said Sudhir Srivastava, chief executive officer of Maharashtra Maritime Board, the maritime regulator vested with the task of overseeing the development of ports owned by the government in the state.
Jupiter Capital, a venture firm of which Chandrasekhar is the chairman and chief executive officer, is being awarded the Vijaydurg port project through a memorandum of understanding.
This means that the project developer was identified without any competitive bidding process. The firm will build and operate the port for a period of 50 years from the date of award of the contract. When operational, within two-three years, Vijaydurg port will handle cargo for industries located in Satara, Sangli, Sholapur, Pune and Ahmednagar.
Being a non-major port, owned by the state government and not the Centre as in the case of ports such as those in Mumbai, Chennai, Kolkata and Haldia, Vijaydurg port will not be governed by the Tariff Authority for Major Ports, the tariff regulator for Centre-owned ports.
“Hence, the operator of Vijaydurg port will have full freedom to fix tariffs for the services provided at the port,” Srivastava said.
Chandrasekhar, a former senior design engineer of the team that developed the 32-bit 80486 microprocessor at Intel Corp., is also looking at bidding for the planned Rs4,360 crore deep-water container terminal at Vizhinjam port, Kerala. After selling his stake in BPL Mobile in 2005 to rival Hutchison Essar for more than Rs1,000 crore, Chandrasekhar floated Jupiter Capital to focus on infrastructure, media and technology ventures.
Jupiter Capital set up Hindustan Infrastructure Projects & Engineering Pvt. Ltd to pursue investment opportunities in infrastructure areas such as transportation, utilities (such as water), electricity transmission and aviation.
Hindustan Infrastructure holds 24% stake in India Infrastructure and Logistics Pvt. Ltd, a joint venture firm floated by the Singapore government-owned global transportation and logistics firm, Neptune Orient Lines to provide rail freight services in India.
Rajeev Chandrasekhar, who made a fortune by selling his stake in mobile service provider BPL Mobile, is betting big on the Indian ports sector.
Chandrasekhar, now a Rajya Sabha member, plans to develop and operate a Rs1,300 crore port at Vijaydurg, in Maharashtra’s Sindhudurg district through his firm Jupiter Capital, which is being awarded the project without any competitive bidding process.
“We have finalized a proposal to develop Vijaydurg port by Jupiter Capital for a (concession) period of 50 years. The government of Maharashtra is expected to approve the award, after which a formal announcement will be made,” said Sudhir Srivastava, chief executive officer of Maharashtra Maritime Board, the maritime regulator vested with the task of overseeing the development of ports owned by the government in the state.
Jupiter Capital, a venture firm of which Chandrasekhar is the chairman and chief executive officer, is being awarded the Vijaydurg port project through a memorandum of understanding.
This means that the project developer was identified without any competitive bidding process. The firm will build and operate the port for a period of 50 years from the date of award of the contract. When operational, within two-three years, Vijaydurg port will handle cargo for industries located in Satara, Sangli, Sholapur, Pune and Ahmednagar.
Being a non-major port, owned by the state government and not the Centre as in the case of ports such as those in Mumbai, Chennai, Kolkata and Haldia, Vijaydurg port will not be governed by the Tariff Authority for Major Ports, the tariff regulator for Centre-owned ports.
“Hence, the operator of Vijaydurg port will have full freedom to fix tariffs for the services provided at the port,” Srivastava said.
Chandrasekhar, a former senior design engineer of the team that developed the 32-bit 80486 microprocessor at Intel Corp., is also looking at bidding for the planned Rs4,360 crore deep-water container terminal at Vizhinjam port, Kerala. After selling his stake in BPL Mobile in 2005 to rival Hutchison Essar for more than Rs1,000 crore, Chandrasekhar floated Jupiter Capital to focus on infrastructure, media and technology ventures.
Jupiter Capital set up Hindustan Infrastructure Projects & Engineering Pvt. Ltd to pursue investment opportunities in infrastructure areas such as transportation, utilities (such as water), electricity transmission and aviation.
Hindustan Infrastructure holds 24% stake in India Infrastructure and Logistics Pvt. Ltd, a joint venture firm floated by the Singapore government-owned global transportation and logistics firm, Neptune Orient Lines to provide rail freight services in India.
Dhamra Port -L&T -Tata JV
Dhamra Port -L&T -Tata JV- Achieves financial closure
2007-03-01 13:14:09 Source : Moneycontrol.com
The Dhamra Port Company Limited (DPCL), a 50:50 joint venture company of Larsen & Toubro Limited (L&T) and Tata Steel Limited, has achieved financial closure for development of an all-weather deep port north of the mouth of river Dhamra in Orissa. The Company signed the loan agreement at Chennai on 27th February 2007 with a consortium of lenders led by the Industrial Development Bank of India (IDBI) who have agreed to part-finance the project cost of Rs.24.6 bn. The Company is also working with BNP Paribas for ECA funding.
Sheltered between the mainland and the Kanika Sands Island on the eastern coast, Dhamra Port will be the deepest all-weather port of its kind in India, with a draught of 18.5 meters, which can accommodate super cape-size vessels up to 180,000 DWT. This will be a boon to the mineral hinterland of north Orissa, Jharkhand, West Bengal and Chattisgarh which are in close proximity to the port and where a large number of steel plants and mineral based industries are located, besides many more which are on the anvil. As the cargo of mineral and mineral-based industries is highly freight-sensitive, a deep draught port will be of great advantage, as such cargo can move in larger vessels, thus lowering the incidence of sea freight on the landed cost. The highly mechanized and advanced material handling facilities planned at the port will offer the users loading and discharge rates comparable to the world’s best. The port project includes a 62-km rail connectivity to the main Howrah-Chennai line at Bhadrak.
The port will eventually have 13 berths to handle over 83 million tons of cargo per annum. Of these, the first two berths, with a handling capacity of up to 25 million tons of bulk cargo per annum, will come up in the first phase. When fully developed, the port will handle all types of cargo, such as dry bulk, break bulk, liquid and container cargo. Apart from Tata Steel who is a co-promoter of the port, a number of other steel plants, mines and industries in the region will use the port, which will become eastern India’s major gateway to the world.
L&T’s Engineering Construction & Contracts (ECC) Division will construct the modern port with all facilities, while International Dredging Seaport Company Limited, a JV of L&T and Dredging International of Belgium, will carry out the dredging.
Subsequent to the signing of the financing documents, Mr. S.K. Mohapatra (CEO, DPCL), remarked, “The Dhamra Port is going to be a major player in Tata Steel’s global plans and aspirations.” Mr. H.M. Nerurkar, Director, DPCL, & Vice President, Kalinganagar Project Orissa & Technology, said, “The Dhamra Port Project signifies the coming together of the largest steel industry in the private sector and the largest engineering and construction major. The project is bound to be a successful venture.”
Mr. K.V. Rangaswami (Director, DPCL and Member of L&T Board) who signed the documents on behalf of L&T, said, “L&T’s total construction capabilities encompassing various facets of engineering & construction, including supply of critical material handling equipment, will ensure timely completion of this project.” Mr. K.G. Hariharan (Director DPCL, & Senior Vice President, L&T–ECC), expressed satisfaction over “one more addition to L&T’s infrastructure ventures ” and was confident that the long association of L&T and Tata Steel is sure to make the project a great success.
2007-03-01 13:14:09 Source : Moneycontrol.com
The Dhamra Port Company Limited (DPCL), a 50:50 joint venture company of Larsen & Toubro Limited (L&T) and Tata Steel Limited, has achieved financial closure for development of an all-weather deep port north of the mouth of river Dhamra in Orissa. The Company signed the loan agreement at Chennai on 27th February 2007 with a consortium of lenders led by the Industrial Development Bank of India (IDBI) who have agreed to part-finance the project cost of Rs.24.6 bn. The Company is also working with BNP Paribas for ECA funding.
Sheltered between the mainland and the Kanika Sands Island on the eastern coast, Dhamra Port will be the deepest all-weather port of its kind in India, with a draught of 18.5 meters, which can accommodate super cape-size vessels up to 180,000 DWT. This will be a boon to the mineral hinterland of north Orissa, Jharkhand, West Bengal and Chattisgarh which are in close proximity to the port and where a large number of steel plants and mineral based industries are located, besides many more which are on the anvil. As the cargo of mineral and mineral-based industries is highly freight-sensitive, a deep draught port will be of great advantage, as such cargo can move in larger vessels, thus lowering the incidence of sea freight on the landed cost. The highly mechanized and advanced material handling facilities planned at the port will offer the users loading and discharge rates comparable to the world’s best. The port project includes a 62-km rail connectivity to the main Howrah-Chennai line at Bhadrak.
The port will eventually have 13 berths to handle over 83 million tons of cargo per annum. Of these, the first two berths, with a handling capacity of up to 25 million tons of bulk cargo per annum, will come up in the first phase. When fully developed, the port will handle all types of cargo, such as dry bulk, break bulk, liquid and container cargo. Apart from Tata Steel who is a co-promoter of the port, a number of other steel plants, mines and industries in the region will use the port, which will become eastern India’s major gateway to the world.
L&T’s Engineering Construction & Contracts (ECC) Division will construct the modern port with all facilities, while International Dredging Seaport Company Limited, a JV of L&T and Dredging International of Belgium, will carry out the dredging.
Subsequent to the signing of the financing documents, Mr. S.K. Mohapatra (CEO, DPCL), remarked, “The Dhamra Port is going to be a major player in Tata Steel’s global plans and aspirations.” Mr. H.M. Nerurkar, Director, DPCL, & Vice President, Kalinganagar Project Orissa & Technology, said, “The Dhamra Port Project signifies the coming together of the largest steel industry in the private sector and the largest engineering and construction major. The project is bound to be a successful venture.”
Mr. K.V. Rangaswami (Director, DPCL and Member of L&T Board) who signed the documents on behalf of L&T, said, “L&T’s total construction capabilities encompassing various facets of engineering & construction, including supply of critical material handling equipment, will ensure timely completion of this project.” Mr. K.G. Hariharan (Director DPCL, & Senior Vice President, L&T–ECC), expressed satisfaction over “one more addition to L&T’s infrastructure ventures ” and was confident that the long association of L&T and Tata Steel is sure to make the project a great success.
Get REAL
Rajeev Chandrasekhar to invest Rs1,300 cr in Maharashtra port
Rajeev Chandrasekhar, who made a fortune by selling his stake in mobile service provider BPL Mobile, is betting big on the Indian ports sector.
Chandrasekhar, now a Rajya Sabha member, plans to develop and operate a Rs1,300 crore port at Vijaydurg, in Maharashtra’s Sindhudurg district through his firm Jupiter Capital, which is being awarded the project without any competitive bidding process.
“We have finalized a proposal to develop Vijaydurg port by Jupiter Capital for a (concession) period of 50 years. The government of Maharashtra is expected to approve the award, after which a formal announcement will be made,” said Sudhir Srivastava, chief executive officer of Maharashtra Maritime Board, the maritime regulator vested with the task of overseeing the development of ports owned by the government in the state.
Jupiter Capital, a venture firm of which Chandrasekhar is the chairman and chief executive officer, is being awarded the Vijaydurg port project through a memorandum of understanding.
This means that the project developer was identified without any competitive bidding process. The firm will build and operate the port for a period of 50 years from the date of award of the contract. When operational, within two-three years, Vijaydurg port will handle cargo for industries located in Satara, Sangli, Sholapur, Pune and Ahmednagar.
Being a non-major port, owned by the state government and not the Centre as in the case of ports such as those in Mumbai, Chennai, Kolkata and Haldia, Vijaydurg port will not be governed by the Tariff Authority for Major Ports, the tariff regulator for Centre-owned ports.
“Hence, the operator of Vijaydurg port will have full freedom to fix tariffs for the services provided at the port,” Srivastava said.
Chandrasekhar, a former senior design engineer of the team that developed the 32-bit 80486 microprocessor at Intel Corp., is also looking at bidding for the planned Rs4,360 crore deep-water container terminal at Vizhinjam port, Kerala. After selling his stake in BPL Mobile in 2005 to rival Hutchison Essar for more than Rs1,000 crore, Chandrasekhar floated Jupiter Capital to focus on infrastructure, media and technology ventures.
Jupiter Capital set up Hindustan Infrastructure Projects & Engineering Pvt. Ltd to pursue investment opportunities in infrastructure areas such as transportation, utilities (such as water), electricity transmission and aviation.
Hindustan Infrastructure holds 24% stake in India Infrastructure and Logistics Pvt. Ltd, a joint venture firm floated by the Singapore government-owned global transportation and logistics firm, Neptune Orient Lines to provide rail freight services in India.
Rajeev Chandrasekhar, who made a fortune by selling his stake in mobile service provider BPL Mobile, is betting big on the Indian ports sector.
Chandrasekhar, now a Rajya Sabha member, plans to develop and operate a Rs1,300 crore port at Vijaydurg, in Maharashtra’s Sindhudurg district through his firm Jupiter Capital, which is being awarded the project without any competitive bidding process.
“We have finalized a proposal to develop Vijaydurg port by Jupiter Capital for a (concession) period of 50 years. The government of Maharashtra is expected to approve the award, after which a formal announcement will be made,” said Sudhir Srivastava, chief executive officer of Maharashtra Maritime Board, the maritime regulator vested with the task of overseeing the development of ports owned by the government in the state.
Jupiter Capital, a venture firm of which Chandrasekhar is the chairman and chief executive officer, is being awarded the Vijaydurg port project through a memorandum of understanding.
This means that the project developer was identified without any competitive bidding process. The firm will build and operate the port for a period of 50 years from the date of award of the contract. When operational, within two-three years, Vijaydurg port will handle cargo for industries located in Satara, Sangli, Sholapur, Pune and Ahmednagar.
Being a non-major port, owned by the state government and not the Centre as in the case of ports such as those in Mumbai, Chennai, Kolkata and Haldia, Vijaydurg port will not be governed by the Tariff Authority for Major Ports, the tariff regulator for Centre-owned ports.
“Hence, the operator of Vijaydurg port will have full freedom to fix tariffs for the services provided at the port,” Srivastava said.
Chandrasekhar, a former senior design engineer of the team that developed the 32-bit 80486 microprocessor at Intel Corp., is also looking at bidding for the planned Rs4,360 crore deep-water container terminal at Vizhinjam port, Kerala. After selling his stake in BPL Mobile in 2005 to rival Hutchison Essar for more than Rs1,000 crore, Chandrasekhar floated Jupiter Capital to focus on infrastructure, media and technology ventures.
Jupiter Capital set up Hindustan Infrastructure Projects & Engineering Pvt. Ltd to pursue investment opportunities in infrastructure areas such as transportation, utilities (such as water), electricity transmission and aviation.
Hindustan Infrastructure holds 24% stake in India Infrastructure and Logistics Pvt. Ltd, a joint venture firm floated by the Singapore government-owned global transportation and logistics firm, Neptune Orient Lines to provide rail freight services in India.
What "Real" people do
Videocon to set up Rs 1600 crore port
P R Sanjai / Mumbai June 22, 2007
The Videocon group, which is into consumer electronics and oil and gas, is planning to foray into port development.
Videocon, which is developing two special economic zones (SEZs) in Pune and Aurangabad, has firmed up plans to develop a minor port in Alewadi in Thane for Rs 1,600 crore. Sources said Videocon was in talks with the Maharashtra government in this regard.
Videocon Industries Chairman and Managing Director Venugopal Dhoot said, “As of now, there are no such plans and we are not bidding for Alewadi port.”
However, sources at the Maharashtra Maritime Board (MMB) confirmed that Videocon Industries was leading the race for Alewadi Port development.
Alewadi Port will not be a cakewalk for Videocon as there are other leading corporates participating in the race. The sources said engineering and construction major Larsen & Toubro (L&T) and Nikhil Gandhi-promoted Sea King Infrastructure (SKIL) were in the fray, apart from overseas investors.
The MMB will have a minority stake in the project, which needs heavy investment in deepening the shipping channel to accommodate big vessels.
“Videocon is facing stiff competition from L&T, which has huge exposure to the port development business. The Maharashtra government is likely to take a final decision on this shortly,” a source added.
The proposed site of the port development is off the coast near Alewadi village, south of Ucheli creek, 70 km away from Mumbai.
The proposed port will be a multi-purpose facility, which will be handling bulk and liquid cargo with 5 to 6 berths.
Industry experts said a multi-purpose berth would supplement Videocon’s SEZ initiatives. “The cargo generated in the SEZ can be evacuated through this proposed port by setting up a road and rail connectivity,” they added.
Recently, Mukesh Ambani-controlled Reliance Industries had acquired a controlling stake from Amma Lines, which was developing Rewas port, around 10 nautical miles off Mumbai harbour. Reliance Industries is likely to position Rewas port as a gateway to the two SEZs developed by the group in Navi Mumbai.
According to the MMB, Alewadi port holds tremendous economic potential with Tarapur Industrial Estate comprising engineering, chemical, textiles, paints, drugs and pharmaceuticals industries.
Alewadi can be served as a good feeder port for containers to supplement Jawaharlal Nehru Port Trust (JNPT). “There is scope for passenger transportation services from Mumbai to Alewadi for meeting the growing needs of the commuters in Mumbai,” they said. Consultant major Deloitte Touche Tohmatsu is advising MMB in this project.
Meanwhile, Rajeev Chandrasekhar-promoted Hindustan Infrastructure is likely to develop Vijaydurg Port in Sindhudurg, while Redi port would be developed by Earnest Shipping. Mumbai-based shipping major Chowgule Steampship has secured a contract from the MMB for developing Jaigad port for handling 4 million tonnes of cargo by constructing of four berths and a dry dock.
The MMB is the nodal agency, which takes care of the regulatory and developmental framework of the state’s maritime activities.
P R Sanjai / Mumbai June 22, 2007
The Videocon group, which is into consumer electronics and oil and gas, is planning to foray into port development.
Videocon, which is developing two special economic zones (SEZs) in Pune and Aurangabad, has firmed up plans to develop a minor port in Alewadi in Thane for Rs 1,600 crore. Sources said Videocon was in talks with the Maharashtra government in this regard.
Videocon Industries Chairman and Managing Director Venugopal Dhoot said, “As of now, there are no such plans and we are not bidding for Alewadi port.”
However, sources at the Maharashtra Maritime Board (MMB) confirmed that Videocon Industries was leading the race for Alewadi Port development.
Alewadi Port will not be a cakewalk for Videocon as there are other leading corporates participating in the race. The sources said engineering and construction major Larsen & Toubro (L&T) and Nikhil Gandhi-promoted Sea King Infrastructure (SKIL) were in the fray, apart from overseas investors.
The MMB will have a minority stake in the project, which needs heavy investment in deepening the shipping channel to accommodate big vessels.
“Videocon is facing stiff competition from L&T, which has huge exposure to the port development business. The Maharashtra government is likely to take a final decision on this shortly,” a source added.
The proposed site of the port development is off the coast near Alewadi village, south of Ucheli creek, 70 km away from Mumbai.
The proposed port will be a multi-purpose facility, which will be handling bulk and liquid cargo with 5 to 6 berths.
Industry experts said a multi-purpose berth would supplement Videocon’s SEZ initiatives. “The cargo generated in the SEZ can be evacuated through this proposed port by setting up a road and rail connectivity,” they added.
Recently, Mukesh Ambani-controlled Reliance Industries had acquired a controlling stake from Amma Lines, which was developing Rewas port, around 10 nautical miles off Mumbai harbour. Reliance Industries is likely to position Rewas port as a gateway to the two SEZs developed by the group in Navi Mumbai.
According to the MMB, Alewadi port holds tremendous economic potential with Tarapur Industrial Estate comprising engineering, chemical, textiles, paints, drugs and pharmaceuticals industries.
Alewadi can be served as a good feeder port for containers to supplement Jawaharlal Nehru Port Trust (JNPT). “There is scope for passenger transportation services from Mumbai to Alewadi for meeting the growing needs of the commuters in Mumbai,” they said. Consultant major Deloitte Touche Tohmatsu is advising MMB in this project.
Meanwhile, Rajeev Chandrasekhar-promoted Hindustan Infrastructure is likely to develop Vijaydurg Port in Sindhudurg, while Redi port would be developed by Earnest Shipping. Mumbai-based shipping major Chowgule Steampship has secured a contract from the MMB for developing Jaigad port for handling 4 million tonnes of cargo by constructing of four berths and a dry dock.
The MMB is the nodal agency, which takes care of the regulatory and developmental framework of the state’s maritime activities.
'Bureaucrats trying to subvert Vizhinjam project'
'Bureaucrats trying to subvert Vizhinjam project'
Friday June 22 2007 10:29 IST
T’PURAM: The Janapaksham has alleged that certain bureaucrats were trying to subvert the proposed deepwater container transhipment hub project at Vizhinjam.Officials in the Finance Department have failed to ensure that the project meets the deadlines fixed on April 17, when the State Government had organised an investors' meet for the project, Janapaksham secretary T S Swaminathan said in a statement here. Janapaksham had organised a meeting to protest against the delay.The Finance Department is blocking the payment of dues amounting to Rs 80 lakh to the IL&FS and Rs 15 lakh to the L&T-RAMBOLL. It is learnt that L&T-RAMBOLL will take another two months to prepare fresh estimates for the project, the Janapaksham alleged.The organisation said it was part of the same conspiracy that the Ports Secretary, who was CEO of Vizhinjam International Seaport Ltd (VISL), the nodal agency for the project, was kept away from the finance committee formed for the fund utilisation of the VISL.Appukuttan Pillai presided over the meeting.
Dr.K S Manoj, T S Swaminathan, K C S Nair, Rajappan and Ramakrishna Pillai spoke.
Newindpress
Friday June 22 2007 10:29 IST
T’PURAM: The Janapaksham has alleged that certain bureaucrats were trying to subvert the proposed deepwater container transhipment hub project at Vizhinjam.Officials in the Finance Department have failed to ensure that the project meets the deadlines fixed on April 17, when the State Government had organised an investors' meet for the project, Janapaksham secretary T S Swaminathan said in a statement here. Janapaksham had organised a meeting to protest against the delay.The Finance Department is blocking the payment of dues amounting to Rs 80 lakh to the IL&FS and Rs 15 lakh to the L&T-RAMBOLL. It is learnt that L&T-RAMBOLL will take another two months to prepare fresh estimates for the project, the Janapaksham alleged.The organisation said it was part of the same conspiracy that the Ports Secretary, who was CEO of Vizhinjam International Seaport Ltd (VISL), the nodal agency for the project, was kept away from the finance committee formed for the fund utilisation of the VISL.Appukuttan Pillai presided over the meeting.
Dr.K S Manoj, T S Swaminathan, K C S Nair, Rajappan and Ramakrishna Pillai spoke.
Newindpress
Friday, June 22, 2007
Tender process for Vizhinjam port to be completed soon
Tender process for Vizhinjam port to be completed soon
Staff Reporter
First phase of the project to be completed within three years
Security clearance hinders projectGovernment to take up projects under public-private partnership
Thiruvananthapuram: The tender process for the Vizhinjam international container transhipment terminal will be completed this year and the first phase of the project within three years, Minister for Ports M. Vijayakumar has said.
Replying to questions in the Assembly on Friday, the Minister said 43 companies, including 12 foreign firms, had participated in the investors meet held in the capital city in April.
A company, sponsored by the Russian Government, had evinced interest in the project, he said.
Mr. Vijayakumar said the security clearance was the main hurdle in the implementation of the project.
The State Government had been advised to consider national interest and internal security while evaluating the tenders.
Rail India Technical and Economic Services Limited (RITES) had been entrusted with the feasibility study on the rail and road connectivity to the port. The Rs.45 lakh-study would be completed within four months. Agreement
An agreement would soon be signed with the Kerala Water Authority for making available water from Vellayani Lake to the proposed port at a cost of Rs.3.89 crore. Talks were on with the Kerala State Electricity Board for ensuring power supply to the port.
The Minister said Vizhinjam was among the six ports in the State that would be developed in the first phase. The others are at Thangaserri, Alappuzha, Ponnani, Beypore, Azheekal.
He said Azheekal had been included in the National Maritime Programme of the Union Government. Land measuring 1.8 hectares would be acquired for the project estimated to cost Rs.1,387 crore.
The work on the port at Thangaserri was nearing completion and would be commissioned soon.
A marina and cargo port had been proposed for Alappuzha taking into account its tourism potential.
Huge investment would be needed for the development of the ports and the Government planned to take up the projects under public-private partnership.Maritime academies
Mr. Vijayakumar said the Government would set up maritime academies at Majeshwaram and Valiathura in Thiruvananthapuram.
Although land had been identified at Manjeshwaram, the progress of the project at Valiathura had hit a bottleneck. Replying to a question, the Minister said priority would be accorded to the rail-road connectivity for the proposed Vallarpadam project.
Staff Reporter
First phase of the project to be completed within three years
Security clearance hinders projectGovernment to take up projects under public-private partnership
Thiruvananthapuram: The tender process for the Vizhinjam international container transhipment terminal will be completed this year and the first phase of the project within three years, Minister for Ports M. Vijayakumar has said.
Replying to questions in the Assembly on Friday, the Minister said 43 companies, including 12 foreign firms, had participated in the investors meet held in the capital city in April.
A company, sponsored by the Russian Government, had evinced interest in the project, he said.
Mr. Vijayakumar said the security clearance was the main hurdle in the implementation of the project.
The State Government had been advised to consider national interest and internal security while evaluating the tenders.
Rail India Technical and Economic Services Limited (RITES) had been entrusted with the feasibility study on the rail and road connectivity to the port. The Rs.45 lakh-study would be completed within four months. Agreement
An agreement would soon be signed with the Kerala Water Authority for making available water from Vellayani Lake to the proposed port at a cost of Rs.3.89 crore. Talks were on with the Kerala State Electricity Board for ensuring power supply to the port.
The Minister said Vizhinjam was among the six ports in the State that would be developed in the first phase. The others are at Thangaserri, Alappuzha, Ponnani, Beypore, Azheekal.
He said Azheekal had been included in the National Maritime Programme of the Union Government. Land measuring 1.8 hectares would be acquired for the project estimated to cost Rs.1,387 crore.
The work on the port at Thangaserri was nearing completion and would be commissioned soon.
A marina and cargo port had been proposed for Alappuzha taking into account its tourism potential.
Huge investment would be needed for the development of the ports and the Government planned to take up the projects under public-private partnership.Maritime academies
Mr. Vijayakumar said the Government would set up maritime academies at Majeshwaram and Valiathura in Thiruvananthapuram.
Although land had been identified at Manjeshwaram, the progress of the project at Valiathura had hit a bottleneck. Replying to a question, the Minister said priority would be accorded to the rail-road connectivity for the proposed Vallarpadam project.
Sunday, June 17, 2007
JANAPAKSHAM to launch offensive against Mr.Jose Cyriac
Janapaksham Executive Committee has decided to launch protests against The Principal Secretary Finance Mr.Jose Cyriac who is playing all cards against the Vizhinjam project
A memorandum will be submitted to Finance Minister Sri.Thomas Isaac and Chief Minister Sri.V.S.Achuthanandan
Memorandum also will be given to Port minister Sri.M.Vijayakumar , Fisheries minister Sri.S.Sharma and Water resources Sri.N.K.Premachandran- these 5 forms the VISL Director board
An indefinite relay strike in front of Secretariat is on cards - if the tender process does not start by August
A memorandum will be submitted to Finance Minister Sri.Thomas Isaac and Chief Minister Sri.V.S.Achuthanandan
Memorandum also will be given to Port minister Sri.M.Vijayakumar , Fisheries minister Sri.S.Sharma and Water resources Sri.N.K.Premachandran- these 5 forms the VISL Director board
An indefinite relay strike in front of Secretariat is on cards - if the tender process does not start by August
What Mr.Jose Cyriac has done ?
1.He drowned critical files and file notes during UDF regime - so that the International bid wont happen . The decision to go for International tender process was taken in the cabinet meeting without the files .This was revealed by none other than the former Chief Secretary of Kerala Sri.Vijayan Unni , in a famous meeting at Hotel Pankaj organised by Janapaksham. The clip was shown in TV channels for two days
2. The dates were very crucial - if that cabinet decision was not taken the tender process could not have proceeded and the entire exercise would have faltered . Vizhinjam could have ended up as a failed project
3.He is playing the same cards again . He wont release the money for IL&FS ,approx 80 Lakhs. For the consultation fees to be given to them for the work on previous international tender. He wont release money for L&T Ramboll ,approx 15 Lakhs for the project report
4.The same companies are now entrusted with consultancy . They wont start work unless the previous dues are given to them . This man knows how to play.Delay the files in his desk.
5.A committee has been formed to look after finacial affairs of VISL (Vizhinjam International Seaport Limited) . Mr.Jose cyriac is the chief. Port Secretary Sri.L.Radhakrishnan has been purposefully avoided from this committee, so that this man can play freely.now Mr.Radhakrishnan has done major work for the project till now.
So WHO is Jose Cyriac ?
He is
K. JOSE CYRIAC
Principal Secretary Finance
Government of Kerala
2. The dates were very crucial - if that cabinet decision was not taken the tender process could not have proceeded and the entire exercise would have faltered . Vizhinjam could have ended up as a failed project
3.He is playing the same cards again . He wont release the money for IL&FS ,approx 80 Lakhs. For the consultation fees to be given to them for the work on previous international tender. He wont release money for L&T Ramboll ,approx 15 Lakhs for the project report
4.The same companies are now entrusted with consultancy . They wont start work unless the previous dues are given to them . This man knows how to play.Delay the files in his desk.
5.A committee has been formed to look after finacial affairs of VISL (Vizhinjam International Seaport Limited) . Mr.Jose cyriac is the chief. Port Secretary Sri.L.Radhakrishnan has been purposefully avoided from this committee, so that this man can play freely.now Mr.Radhakrishnan has done major work for the project till now.
So WHO is Jose Cyriac ?
He is
K. JOSE CYRIAC
Principal Secretary Finance
Government of Kerala
New realities
THE SHASHI THAROOR COLUMN
Kerala has never been a hot destination for industrial investment because of the heavily politicised environment. But things may be changing…
OVER the years, in this space, I have talked about the strengths of Kerala — its liberality, its pluralism, its literacy, its empowerment of women, its openness to the world. But it’s difficult to deny that despite all this, the State has acquired a less than positive reputation as a place to invest. “Keralites are far too conscious of their rights and not enough of their duties,” one expatriate Malayali businessman told me. “It’s impossible to get any work done by a Keralite labour force — and then there are those unions!” He sighed. “Every time we persuade an industrialist to invest in Kerala, it ends badly. The late G.D. Birla put a Gwalior Rayons plant in Mavoor — it has long since closed. The Doshis of Mumbai started the Premier Tyre factory in Kalamassery — you know the fate of that plant? The late Raunaq Singh set up the first Apollo Tyres plant in Chalakudi, but all the expansions of Apollo Tyres since then went to other States such as Gujarat, as neither Raunaq or his son Omkar could deal with the politically charged trade unions.” He shook his head. “I am a Malayali,” he declared, “but I would not advise anyone to invest in Kerala.”Outdated notions
It was with his words ringing in my years that I stepped gingerly into my home State in May. Newly freed from my career as a U.N. official, I wanted to see what I could do for Kerala’s development, in particular by opening the eyes of foreign investors to what the State had to offer. What I saw and heard there convinces me that my friend’s pessimism is, at the very least, out of date.
For one thing, the attitude of the work force is not what it was. It’s always been a curious paradox that Keralites put in long hours in places like the Gulf, where they have earned a reputation for being hard-working and utterly reliable, while at home they are seen as indolent and strike-prone. Surely the same people couldn’t be so different in two different places? And yet they were — for one simple reason: the politicised environment at home. It’s a reputation that has come to haunt Kerala. Several people told me the story of how BMW had been persuaded to install a car-manufacturing plant in the State, thanks to generous concessions by the government. But the very day the BMW executives arrived in Kerala to sign the deal, they were greeted by a bandh: the State had shut down over some marginal political issue, cars were being blocked on the streets, shops were closed by a hartal. It had nothing to do with BMW or with foreign investme nt, but the executives — or so I was told — beat a hasty retreat. The plant has now been set up in neighbouring Tamil Nadu.
Kerala’s political and business leaders are aware of this story. But few are aware of the counter-narrative. Last year I met Antony Prince, a Malayali long settled in the Bahamas, who is President of a major ship design company there, GTR Campbell (GTRC). GTRC had built many ships around the world, and its contracts had helped revive China’s Xingang Shipyard. Why not try and do the same in his native land, Prince wondered. Ignoring all the friendly (negative) advice he was given, he decided to get one of his huge “Trader” class double-hull bulk carriers built at Kerala’s Cochin Shipyard. This was a major undertaking: GTRC’s Trader class ships are 30,000 tons deadweight, have cargo holds of 40,000 cubic metres in capacity, and are meant to sail over a range of 15,500 nautical miles, so the task would have challenged a more experienced shipyard. But as the work unfolded, Prince realised he need not have worried. Not only was there not a single strike or work stoppage, but the shipyard workers took pride in having been given such a major assignment. They finished the job to GTRC’s complete satisfaction — ahead of deadline. Five more ships will now be built in Cochin; it’s the shipyard’s largest-ever order. Greater possibilities
But the potential is even greater. Working with GTRC had transformed Xingang into a world-class shipbuilder; there is no reason why the same cannot happen in Kochi. Mr. Prince was enthusiastic about the prospects. “The officers and workers in the Cochin yard have proved that they can do it, launching the first vessel on schedule, with first-rate quality and meeting international shipbuilding standards”, he said. “I hope the message will spread.” It should. The interesting point is that shipbuilding is a highly labour-intensive industry; some 30 per cent of the input is human labour, which is what makes it ideal for a country like India. The workers at Cochin Shipyard — unionised to a man — demonstrated that labour remains India’s greatest asset, even in Kerala. It is not, as skittish investors had long feared, a liability.
A visit to Thiruvananthapuram’s Technopark confirmed my impression that the sceptics are behind the curve. CEO after CEO told me in glowing terms of their satisfaction with the work environment in Kerala, the quality of the local engineering graduates, and the beauty of the lush and tranquil surroundings. Indeed, Kerala’s past failures at attracting and retaining heavy industry are now working in the State’s favour. Tranquil surroundings
One Technopark firm, US Technologies, told me of having bid for a contract with a Houston-based company which had drawn up a short-list of Indian service providers and placed the Thiruvananthapuram-based company last. The American executives making the final decision flew down to India to inspect the six short-listed Indian firms. After three harrowing days ploughing through the traffic congestion and pollution of Mumbai, Bangalore, and Delhi, they arrived in Thiruvananthapuram, checked into the Leela at Kovalam beach, sipped a drink by the seaside at sunset — and voted unanimously to give the contract to US Technologies. “If we have to visit India from time to time to see how our contract is doing,” the chief said, “we’d rather visit Kerala than any other place in India.”
As they say in the U.S.: Sounds like a plan! It is time that Indian investors took notice as well. God’s Own Country no longer deserves the business reputation of being the devil’s playground.
Kerala has never been a hot destination for industrial investment because of the heavily politicised environment. But things may be changing…
OVER the years, in this space, I have talked about the strengths of Kerala — its liberality, its pluralism, its literacy, its empowerment of women, its openness to the world. But it’s difficult to deny that despite all this, the State has acquired a less than positive reputation as a place to invest. “Keralites are far too conscious of their rights and not enough of their duties,” one expatriate Malayali businessman told me. “It’s impossible to get any work done by a Keralite labour force — and then there are those unions!” He sighed. “Every time we persuade an industrialist to invest in Kerala, it ends badly. The late G.D. Birla put a Gwalior Rayons plant in Mavoor — it has long since closed. The Doshis of Mumbai started the Premier Tyre factory in Kalamassery — you know the fate of that plant? The late Raunaq Singh set up the first Apollo Tyres plant in Chalakudi, but all the expansions of Apollo Tyres since then went to other States such as Gujarat, as neither Raunaq or his son Omkar could deal with the politically charged trade unions.” He shook his head. “I am a Malayali,” he declared, “but I would not advise anyone to invest in Kerala.”Outdated notions
It was with his words ringing in my years that I stepped gingerly into my home State in May. Newly freed from my career as a U.N. official, I wanted to see what I could do for Kerala’s development, in particular by opening the eyes of foreign investors to what the State had to offer. What I saw and heard there convinces me that my friend’s pessimism is, at the very least, out of date.
For one thing, the attitude of the work force is not what it was. It’s always been a curious paradox that Keralites put in long hours in places like the Gulf, where they have earned a reputation for being hard-working and utterly reliable, while at home they are seen as indolent and strike-prone. Surely the same people couldn’t be so different in two different places? And yet they were — for one simple reason: the politicised environment at home. It’s a reputation that has come to haunt Kerala. Several people told me the story of how BMW had been persuaded to install a car-manufacturing plant in the State, thanks to generous concessions by the government. But the very day the BMW executives arrived in Kerala to sign the deal, they were greeted by a bandh: the State had shut down over some marginal political issue, cars were being blocked on the streets, shops were closed by a hartal. It had nothing to do with BMW or with foreign investme nt, but the executives — or so I was told — beat a hasty retreat. The plant has now been set up in neighbouring Tamil Nadu.
Kerala’s political and business leaders are aware of this story. But few are aware of the counter-narrative. Last year I met Antony Prince, a Malayali long settled in the Bahamas, who is President of a major ship design company there, GTR Campbell (GTRC). GTRC had built many ships around the world, and its contracts had helped revive China’s Xingang Shipyard. Why not try and do the same in his native land, Prince wondered. Ignoring all the friendly (negative) advice he was given, he decided to get one of his huge “Trader” class double-hull bulk carriers built at Kerala’s Cochin Shipyard. This was a major undertaking: GTRC’s Trader class ships are 30,000 tons deadweight, have cargo holds of 40,000 cubic metres in capacity, and are meant to sail over a range of 15,500 nautical miles, so the task would have challenged a more experienced shipyard. But as the work unfolded, Prince realised he need not have worried. Not only was there not a single strike or work stoppage, but the shipyard workers took pride in having been given such a major assignment. They finished the job to GTRC’s complete satisfaction — ahead of deadline. Five more ships will now be built in Cochin; it’s the shipyard’s largest-ever order. Greater possibilities
But the potential is even greater. Working with GTRC had transformed Xingang into a world-class shipbuilder; there is no reason why the same cannot happen in Kochi. Mr. Prince was enthusiastic about the prospects. “The officers and workers in the Cochin yard have proved that they can do it, launching the first vessel on schedule, with first-rate quality and meeting international shipbuilding standards”, he said. “I hope the message will spread.” It should. The interesting point is that shipbuilding is a highly labour-intensive industry; some 30 per cent of the input is human labour, which is what makes it ideal for a country like India. The workers at Cochin Shipyard — unionised to a man — demonstrated that labour remains India’s greatest asset, even in Kerala. It is not, as skittish investors had long feared, a liability.
A visit to Thiruvananthapuram’s Technopark confirmed my impression that the sceptics are behind the curve. CEO after CEO told me in glowing terms of their satisfaction with the work environment in Kerala, the quality of the local engineering graduates, and the beauty of the lush and tranquil surroundings. Indeed, Kerala’s past failures at attracting and retaining heavy industry are now working in the State’s favour. Tranquil surroundings
One Technopark firm, US Technologies, told me of having bid for a contract with a Houston-based company which had drawn up a short-list of Indian service providers and placed the Thiruvananthapuram-based company last. The American executives making the final decision flew down to India to inspect the six short-listed Indian firms. After three harrowing days ploughing through the traffic congestion and pollution of Mumbai, Bangalore, and Delhi, they arrived in Thiruvananthapuram, checked into the Leela at Kovalam beach, sipped a drink by the seaside at sunset — and voted unanimously to give the contract to US Technologies. “If we have to visit India from time to time to see how our contract is doing,” the chief said, “we’d rather visit Kerala than any other place in India.”
As they say in the U.S.: Sounds like a plan! It is time that Indian investors took notice as well. God’s Own Country no longer deserves the business reputation of being the devil’s playground.
Vizhinjam: Pact signed with RITES
Our BureauThiruvananthapuram May 31 The Kerala Government has signed an agreement with Rail India Technical and Economic Service Ltd (RITES) for preparing a detailed report on establishing road and rail connectivity to the proposed international container transhipment terminal at Vizhinjam, near here.The Minister for Ports, Mr M. Vijayakumar, who presided over the function here on Thursday, said that the contract for execution of the project was expected to be finalised by December.
Monday, June 11, 2007
Port competition reaches subcontinental proportions
Port competition reaches subcontinental proportions
T. E. Raja Simhan
COLOMBO PORT is facing increasing competition from Indian facilities.
The southern ports of Chennai and Tuticorin are gearing up with plans to become major container transhipment hubs, with Ennore (near Chennai) to join them. Vallarpadam in Kerala is to have an international container transhipment terminal. Colachel in Tamil Nadu is being considered for a container terminal. And Tuticorin plans to have a new outer harbour with major focus on container handling.
Colombo Plans
Against this backdrop, the Colombo port, which is among the top 40 container ports world-wide, is investing over Rs 2,500 crore on a new outer deepwater harbour.
It plans to become a major maritime hub in the region. Colombo, till recently the dominant port in the region, is facing increasing competition from Indian facilities, which are getting more container volumes thanks to the economic growth. Now, Colombo handles around 3 million TEUs against its capacity of 3.7 m TEUs. At the current growth rate, the port will reach full capacity by 2010.
The Sri Lanka Ports Authority, through a funding from the Asian Development Bank, plans to construct a new outer deepwater harbour enclosed by new breakwaters to handle the next generation ships. The project will abut the current Port of Colombo.
The construction of the basic infrastructure will be followed by the building of three terminals in stages. The first terminal will be constructed as public-private enterprise on build-own-transfer basis, according to information available on the SLPA web site.
The proposed Colombo Port Expansion Project will be designed to accommodate vessels with an overall length of 400 metre, beam of 55 metres and draft of 16 metres. Each of the four terminals will have a capacity to handle 2.4 million TEUs per annum.
The Colombo port lies at the centre of the main east-west shipping route, which links the Asia-Pacific region with Europe and North America. Further, the short transit time to India creates an opportunity to access the expanding markets of the Indian subcontinent.
Port of Colombo had established its position as the dominant transhipment port for the Indian subcontinent by the mid-1990s. Its container traffic rose from 0.6 million TEUs in 1990 to 1.7 million TEUs in 1997. However, after 1997, Colombo entered a period of stagnation with traffic remaining at 1.7 million TEU per annum until 2002.
Indian cargo
The expansion at the Colombo port will not affect the Indian facilities, according to experts such as Mr N. K. Raghupathy, Chairman, Tuticorin Port Trust. The total container traffic of 5.4 million TEUs in 2006-07 at Indian ports is expected to grow at 12 per cent per annum the next few years.
This will taper off to 9 per cent in 2010 and 7 per cent after 2015. This forecast is based on "export growth predicted by authoritative forecasting bodies" and marginal additional container penetration. India handles 5.4 million TEUs, while China handles over 40 million TEUs. With the Indian economy booming and with no signs of China's growth abating, huge opportunities exist for transhipment of containers in South Asia. Tuticorin aims to reach the status of a regional transhipment hub by 2011-12, says Mr Raghupathy.
"I believe that Colombo, Tuticorin, Chennai, Vallarpadam, Vizhinjam and Colachel will all have their share of the transhipment traffic. The infrastructure creation at Tuticorin, Colachel or Vallarpadam is not only with 2011-12 in mind but also to meet the demand several years ahead."
As per the National Maritime Development Programme of the Centre, India's container throughput will more than triple by 2011-12 from 5.5 million teus in 2006-07.
With 27 container berths (of about 300 m length each) available in the country, huge additional capacity for handling containers needs to be developed in major or non-major ports.
As Mr Raghupathy said: "The question is not whether there will be enough cargo, but whether there will be enough infrastructure to handle the country's cargo. Additional container handling capacity can come up only in the south in addition to the west and north-west." http://www.thehindubusinessline.com/2007/06/11/stories/2007061100830600.htm
T. E. Raja Simhan
COLOMBO PORT is facing increasing competition from Indian facilities.
The southern ports of Chennai and Tuticorin are gearing up with plans to become major container transhipment hubs, with Ennore (near Chennai) to join them. Vallarpadam in Kerala is to have an international container transhipment terminal. Colachel in Tamil Nadu is being considered for a container terminal. And Tuticorin plans to have a new outer harbour with major focus on container handling.
Colombo Plans
Against this backdrop, the Colombo port, which is among the top 40 container ports world-wide, is investing over Rs 2,500 crore on a new outer deepwater harbour.
It plans to become a major maritime hub in the region. Colombo, till recently the dominant port in the region, is facing increasing competition from Indian facilities, which are getting more container volumes thanks to the economic growth. Now, Colombo handles around 3 million TEUs against its capacity of 3.7 m TEUs. At the current growth rate, the port will reach full capacity by 2010.
The Sri Lanka Ports Authority, through a funding from the Asian Development Bank, plans to construct a new outer deepwater harbour enclosed by new breakwaters to handle the next generation ships. The project will abut the current Port of Colombo.
The construction of the basic infrastructure will be followed by the building of three terminals in stages. The first terminal will be constructed as public-private enterprise on build-own-transfer basis, according to information available on the SLPA web site.
The proposed Colombo Port Expansion Project will be designed to accommodate vessels with an overall length of 400 metre, beam of 55 metres and draft of 16 metres. Each of the four terminals will have a capacity to handle 2.4 million TEUs per annum.
The Colombo port lies at the centre of the main east-west shipping route, which links the Asia-Pacific region with Europe and North America. Further, the short transit time to India creates an opportunity to access the expanding markets of the Indian subcontinent.
Port of Colombo had established its position as the dominant transhipment port for the Indian subcontinent by the mid-1990s. Its container traffic rose from 0.6 million TEUs in 1990 to 1.7 million TEUs in 1997. However, after 1997, Colombo entered a period of stagnation with traffic remaining at 1.7 million TEU per annum until 2002.
Indian cargo
The expansion at the Colombo port will not affect the Indian facilities, according to experts such as Mr N. K. Raghupathy, Chairman, Tuticorin Port Trust. The total container traffic of 5.4 million TEUs in 2006-07 at Indian ports is expected to grow at 12 per cent per annum the next few years.
This will taper off to 9 per cent in 2010 and 7 per cent after 2015. This forecast is based on "export growth predicted by authoritative forecasting bodies" and marginal additional container penetration. India handles 5.4 million TEUs, while China handles over 40 million TEUs. With the Indian economy booming and with no signs of China's growth abating, huge opportunities exist for transhipment of containers in South Asia. Tuticorin aims to reach the status of a regional transhipment hub by 2011-12, says Mr Raghupathy.
"I believe that Colombo, Tuticorin, Chennai, Vallarpadam, Vizhinjam and Colachel will all have their share of the transhipment traffic. The infrastructure creation at Tuticorin, Colachel or Vallarpadam is not only with 2011-12 in mind but also to meet the demand several years ahead."
As per the National Maritime Development Programme of the Centre, India's container throughput will more than triple by 2011-12 from 5.5 million teus in 2006-07.
With 27 container berths (of about 300 m length each) available in the country, huge additional capacity for handling containers needs to be developed in major or non-major ports.
As Mr Raghupathy said: "The question is not whether there will be enough cargo, but whether there will be enough infrastructure to handle the country's cargo. Additional container handling capacity can come up only in the south in addition to the west and north-west." http://www.thehindubusinessline.com/2007/06/11/stories/2007061100830600.htm
Saturday, June 2, 2007
TRAC urges Achuthanandan to expedite city development
Seeks better coordination between various departments
Calls for augmentation of basic facilities prior to development of Vizhinjam container terminal
Says Government soft-pedalling proposal to set up an IT corridor
Thiruvananthapuram: The Trivandrum Residents Apex Council (TRAC) has urged the Government to fast-track the development of the capital city.
In a memorandum submitted to Chief Minister V.S. Achuthanandan here on Friday, TRAC president Amaravila Ramakrishnan Nair and general secretary K.T. Roy called for augmentation of basic facilities prior to the development of an international container terminal at Vizhinjam. The memorandum also stressed the need to complete the construction of mini-fishing harbours at Vizhinjam and Muthalapozhy on a war footing.
The memorandum urged the Government to exert pressure on the district administration to speed up land acquisition for the construction of four air bays and the extension of the runway for the international airport.
It said the Left Democratic Front (LDF) Government failed to honour its word to set up a High Court Bench in the capital city within six months of assuming power. It observed that the proposal for a CBI Court in the city failed to materialise despite approval from the Union Government and the High Court Registrar.
TRAC accused the Government of soft-pedalling the proposal to set up an IT corridor in the city. It alleged that the Technocity project was also floundering.
The memorandum appealed to the Government to take up the Theerapadham project aimed at cleaning up the Parvathy Puthanar canal and beautifying the area.
It pointed out that the high profile projects for a Biotechnology Park, Handloom Park, telecom city and Fashion Technology Institute also failed to take off. It observed that the proposals to develop tourism facilities at Kovalam, Poovar, Vellayani, Shanghumughom, Veli, Akkulam, Kadhinamkulam, Papanasam, Ponmudi, Aruvikkara and Neyyar Dam were bogged down. The memorandum said there was a move to start work on the construction of inner and outer ring roads for the capital city. It urged the Government to take up the development of the NH47 bypass, Thiruvananthapuram-Parassala four-lane road, Thycode-Kazhakuttam link road and the Ponmudi road.
Department sought
The memorandum called on the Chief Minister to ensure better coordination between various Government departments for the development of the capital city. It proposed the constitution of a separate department headed by a minister for city development.
Calls for augmentation of basic facilities prior to development of Vizhinjam container terminal
Says Government soft-pedalling proposal to set up an IT corridor
Thiruvananthapuram: The Trivandrum Residents Apex Council (TRAC) has urged the Government to fast-track the development of the capital city.
In a memorandum submitted to Chief Minister V.S. Achuthanandan here on Friday, TRAC president Amaravila Ramakrishnan Nair and general secretary K.T. Roy called for augmentation of basic facilities prior to the development of an international container terminal at Vizhinjam. The memorandum also stressed the need to complete the construction of mini-fishing harbours at Vizhinjam and Muthalapozhy on a war footing.
The memorandum urged the Government to exert pressure on the district administration to speed up land acquisition for the construction of four air bays and the extension of the runway for the international airport.
It said the Left Democratic Front (LDF) Government failed to honour its word to set up a High Court Bench in the capital city within six months of assuming power. It observed that the proposal for a CBI Court in the city failed to materialise despite approval from the Union Government and the High Court Registrar.
TRAC accused the Government of soft-pedalling the proposal to set up an IT corridor in the city. It alleged that the Technocity project was also floundering.
The memorandum appealed to the Government to take up the Theerapadham project aimed at cleaning up the Parvathy Puthanar canal and beautifying the area.
It pointed out that the high profile projects for a Biotechnology Park, Handloom Park, telecom city and Fashion Technology Institute also failed to take off. It observed that the proposals to develop tourism facilities at Kovalam, Poovar, Vellayani, Shanghumughom, Veli, Akkulam, Kadhinamkulam, Papanasam, Ponmudi, Aruvikkara and Neyyar Dam were bogged down. The memorandum said there was a move to start work on the construction of inner and outer ring roads for the capital city. It urged the Government to take up the development of the NH47 bypass, Thiruvananthapuram-Parassala four-lane road, Thycode-Kazhakuttam link road and the Ponmudi road.
Department sought
The memorandum called on the Chief Minister to ensure better coordination between various Government departments for the development of the capital city. It proposed the constitution of a separate department headed by a minister for city development.
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