Vizhinjam dreams of receiving the biggest ships
Special Correspondent
Global tenders floated for international seaport project
VISL nodal agency for project execution
Project cost estimated at
$580 million
THIRUVANANTHAPURAM: The proposed deep-sea container terminal at Vizhinjam, near here, for which the facilitating agency has now floated global tenders, will have facilities for receiving the biggest ships currently transporting goods across the continents, according to Ports Minister M. Vijayakumar.
Vizhinjam International Seaport Limited (VISL), the company formed by the State Government as the nodal agency for the execution of this dream project of Kerala, floated global tenders for the project on Wednesday.
Mr. Vijayakumar said the port, at the completion of its first phase of development, would be able to receive ships of up to 8,000 TEU (Twenty Equivalent Units). The project is conceived in such a way that, in the subsequent phase of its development, ships of even 12,000 TEU could easily berth at the port. The biggest ships currently on the international sea routes do not exceed 9,500 TEU in capacity, he said.
The project cost is estimated at the level of $580 million (about Rs.2,390 crore). The Government had appointed a company called IL&FS Infrastructure Development Corporation as the strategic adviser for the project. The technical consultants for the project are L&T-RAMBOLL Consulting Engineers Limited, ROGGE Marine Consulting GMBH of Germany, RAMBOLL of Denmark and L&T Capital Company Limited.
Vizhinjam is located 8 km south of the State capital Thiruvananthapuram, on the west coast of the country. The biggest advantage of the location is its proximity to international shipping routes and the East-West shipping axis. The seabed here has a 20-metre contour depth within one nautical mile of the coast. The sea here has little littoral drift close to the coast and, therefore, requires hardly any maintenance dredging, Mr. Vijayakumar said.
The qualification criteria stipulated in the ‘request for proposal’ documents are available at the office of VISL and on the websites www.vizport.org and www.ilfsindia.com.
Private developers have been advised to first assess their eligibility on the basis of the stipulations given in the ‘qualification criteria’ before obtaining the ‘request for proposal’ documents.
Friday, August 10, 2007
Fresh tender floated to build India’s deepest container port
Vizhinjam International has invited bids from local and overseas companies to develop the project in phases
Mumbai: The Kerala government plans to build an international deepwater seaport and container transhipment terminal at Vizhinjam port at a cost of more than Rs5,000 crore to meet the rising needs of trade in the world’s second fastest growing economy.
Vizhinjam International Seaport Ltd, a company fully owned by the Kerala government, on Wednesday invited bids from local and overseas firms to develop the project in phases. The first phase costing Rs2,390 crore involves creating capacity to handle 1.8 million twenty-foot equivalent units (teus) a year. The second phase costing over Rs2,610 crore will expand the total container handling capacity to 5.3 million teus a year. A teu is the standard size of a container and is a common measure of capacity in the container business.
Gammon Infrastructure Projects Ltd, Zoom Developers Pvt. Ltd and Hindustan Infrastructure Projects and Engineering Pvt. Ltd, a firm promoted by former BPL Mobile owner Rajeev Chandrasekhar, have confirmed that they will bid for the
International appeal: File picture of Vizhinjam port. The greenfield project is designed to serve the transhipment needs of the region, and will compete with the terminal being developed at Kochi by DP Worldproject.
When operational, Vizhinjam will compete with the international container transhipment terminal being developed at Vallarpadam in Kochi port by the Dubai government-owned container port operator DP World. A transhipment port or terminal typically has a depth of more than 16m where big container ships can call to load cargo arriving from smaller ports and ship them directly to destinations or to unload cargo arriving from origin ports which are then loaded onto smaller feeder ships and transported to final destinations. Because of the draft (or depth) restrictions at Indian ports, India’s container cargo is transhipped at ports such as Colombo, Singapore and Dubai. This entails extra time and costs for moving the cargo, two key factors that influence India’s competitiveness in global trade. And ports at Colombo, Singapore and Dubai are beneficiaries.
For instance, Colombo port currently handles 3.3 million teus a year and about 60% of this originates at or is destined for Indian ports.
“So, containers that should ideally have been transhipped at Indian ports are now getting transhipped at Colombo port,” said Kshitiz Bhasker, senior manager (ports) at Gammon Infrastructure Projects Ltd, a unit of Mumbai-based construction firm Gammon India Ltd.
Companies have until 31 October to submit their proposals for developing the greenfield project that is designed to serve the transhipment needs of the region. The firm seeking the lowest debt support from the Kerala government will get the 30-year contract, said an official at Vizhinjam International Seaport.
This is the second attempt by the Kerala government to develop the port located 8km south of the state capital Thiruvananthapuram on India’s west coast.
A consortium comprising two Chinese firms (Kaidi Electric Power Company and China Harbour Engg. Co.) and Zoom Developers had emerged successful bidders in the global tender that was floated in 2005. But, the tender was scrapped on issues related to national security because of the involvement of the Chinese firms, one of which was also operating a port in Pakistan.
“We will definitely be interested in bidding for the project in the fresh round of tendering,” said Arun Altekar, assistant vice-president, Zoom Developers.
This time around, Zoom Developers will be bidding for the project with new partners. One of them is most likely to be Portia Management Services Ltd, a wholly-owned subsidiary of Peel Ports Ltd, the second largest port operator in the UK. Gammon Infrastructure, the only other bidder in the earlier round, is looking at the project very seriously, said Bhasker.
“It is the best natural location in India with very good draft that requires no maintenance dredging at all and is close to the international shipping route. This port can easily become the deepest container port in India,” added Bhasker.
Currently, Vizhinjam port has a depth of 16m that will be deepened to 18.7m to allow big container ships of 12,000 teu capacity to call for loading and unloading cargo.
The added attractiveness is that because it is owned by the state government, Vizhinjam port will be outside the ambit of the Tariff Authority for Major Ports, the tariff regulator that sets prices for cargo handling at the 12 Central government-owned major ports in the country. As a result, the private firm winning the Vizhinjam project will be free to fix its own tariffs.
Mumbai: The Kerala government plans to build an international deepwater seaport and container transhipment terminal at Vizhinjam port at a cost of more than Rs5,000 crore to meet the rising needs of trade in the world’s second fastest growing economy.
Vizhinjam International Seaport Ltd, a company fully owned by the Kerala government, on Wednesday invited bids from local and overseas firms to develop the project in phases. The first phase costing Rs2,390 crore involves creating capacity to handle 1.8 million twenty-foot equivalent units (teus) a year. The second phase costing over Rs2,610 crore will expand the total container handling capacity to 5.3 million teus a year. A teu is the standard size of a container and is a common measure of capacity in the container business.
Gammon Infrastructure Projects Ltd, Zoom Developers Pvt. Ltd and Hindustan Infrastructure Projects and Engineering Pvt. Ltd, a firm promoted by former BPL Mobile owner Rajeev Chandrasekhar, have confirmed that they will bid for the
International appeal: File picture of Vizhinjam port. The greenfield project is designed to serve the transhipment needs of the region, and will compete with the terminal being developed at Kochi by DP Worldproject.
When operational, Vizhinjam will compete with the international container transhipment terminal being developed at Vallarpadam in Kochi port by the Dubai government-owned container port operator DP World. A transhipment port or terminal typically has a depth of more than 16m where big container ships can call to load cargo arriving from smaller ports and ship them directly to destinations or to unload cargo arriving from origin ports which are then loaded onto smaller feeder ships and transported to final destinations. Because of the draft (or depth) restrictions at Indian ports, India’s container cargo is transhipped at ports such as Colombo, Singapore and Dubai. This entails extra time and costs for moving the cargo, two key factors that influence India’s competitiveness in global trade. And ports at Colombo, Singapore and Dubai are beneficiaries.
For instance, Colombo port currently handles 3.3 million teus a year and about 60% of this originates at or is destined for Indian ports.
“So, containers that should ideally have been transhipped at Indian ports are now getting transhipped at Colombo port,” said Kshitiz Bhasker, senior manager (ports) at Gammon Infrastructure Projects Ltd, a unit of Mumbai-based construction firm Gammon India Ltd.
Companies have until 31 October to submit their proposals for developing the greenfield project that is designed to serve the transhipment needs of the region. The firm seeking the lowest debt support from the Kerala government will get the 30-year contract, said an official at Vizhinjam International Seaport.
This is the second attempt by the Kerala government to develop the port located 8km south of the state capital Thiruvananthapuram on India’s west coast.
A consortium comprising two Chinese firms (Kaidi Electric Power Company and China Harbour Engg. Co.) and Zoom Developers had emerged successful bidders in the global tender that was floated in 2005. But, the tender was scrapped on issues related to national security because of the involvement of the Chinese firms, one of which was also operating a port in Pakistan.
“We will definitely be interested in bidding for the project in the fresh round of tendering,” said Arun Altekar, assistant vice-president, Zoom Developers.
This time around, Zoom Developers will be bidding for the project with new partners. One of them is most likely to be Portia Management Services Ltd, a wholly-owned subsidiary of Peel Ports Ltd, the second largest port operator in the UK. Gammon Infrastructure, the only other bidder in the earlier round, is looking at the project very seriously, said Bhasker.
“It is the best natural location in India with very good draft that requires no maintenance dredging at all and is close to the international shipping route. This port can easily become the deepest container port in India,” added Bhasker.
Currently, Vizhinjam port has a depth of 16m that will be deepened to 18.7m to allow big container ships of 12,000 teu capacity to call for loading and unloading cargo.
The added attractiveness is that because it is owned by the state government, Vizhinjam port will be outside the ambit of the Tariff Authority for Major Ports, the tariff regulator that sets prices for cargo handling at the 12 Central government-owned major ports in the country. As a result, the private firm winning the Vizhinjam project will be free to fix its own tariffs.
Friday, July 6, 2007
Babu Rajeev is Vizhinjam Sea Port MD
Thiruvananthapuram, July 6: The Kerala Government today appointed Mr C Babu Rajeev as the Managing Director of the Vizhinjam International Seaport Ltd.
Briefing newspersons here after a meeting of the state Cabinet, Chief Minister V S Achuthanandan said the senior official earlier held the posts of chairman of the Kochi Port Trust and Managing Director of the Cochin International Airport Ltd (CIAL).
The Kerala government was according utmost priority to the implementation of the project which has a huge potential to boost the economy of the state.The project structured in public-private partnership (PPP) format is envisaged in three phases. The estimated cost of the Phase I development is Rs. 1,850 crore and that for the whole project Rs 4,360 crore.
The company was set up mainly to provide external support infrastructure like road- rail connectivity, water and power supply to the port, facilitating the establishment of port-based special economic zone and free trade warehousing zones apart from overseeing the implementation of the port project by the private developer.
Thiruvananthapuram, July 6: The Kerala Government today appointed Mr C Babu Rajeev as the Managing Director of the Vizhinjam International Seaport Ltd.
Briefing newspersons here after a meeting of the state Cabinet, Chief Minister V S Achuthanandan said the senior official earlier held the posts of chairman of the Kochi Port Trust and Managing Director of the Cochin International Airport Ltd (CIAL).
The Kerala government was according utmost priority to the implementation of the project which has a huge potential to boost the economy of the state.The project structured in public-private partnership (PPP) format is envisaged in three phases. The estimated cost of the Phase I development is Rs. 1,850 crore and that for the whole project Rs 4,360 crore.
The company was set up mainly to provide external support infrastructure like road- rail connectivity, water and power supply to the port, facilitating the establishment of port-based special economic zone and free trade warehousing zones apart from overseeing the implementation of the port project by the private developer.
Thursday, July 5, 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.
Monday, July 2, 2007
Disturbing thoughts
"This is the last chance for Vizhinjam.
If no credible agency comes forward to bid for the project that will sound the death bell for this project.
This was precisely the reason why I thought I should give practical and sensible advice to the Kerala Govt how they should make this project attractive to the investors. The best way is to offer a 50 year period so that more investors will compete for the project.
If the Kerala Govt considers 50 years being a very long period how could Maharashtra Govt agree for 50 years? Why should Pondicherry Govt agree for 30 years extendable for another 20 years?
Vizhinjam is expected to attract container traffic emanating from other ports and already there is keen competition within the major ports for container traffic. As the terminal is expected to survive basically on transhipment cargo the investor will be facing an uncertain future.
A longer concession period will help the investor to weather the storm in the initial stages and turn the project profitable in the long run.
What would the Kerala Govt do if the Tamil Nadu govt advertises for Coalachal and offer a longer concession period of 50 years to make their transhipment project more attractive?.
I strongly believe that the TN Govt would exactly do the same. If that happens the Govt of kerala will look very vulnerable. By the time it will be too late to correct the course and the State will miss its last bus!"
Letter from Dr.Jose Paul
If no credible agency comes forward to bid for the project that will sound the death bell for this project.
This was precisely the reason why I thought I should give practical and sensible advice to the Kerala Govt how they should make this project attractive to the investors. The best way is to offer a 50 year period so that more investors will compete for the project.
If the Kerala Govt considers 50 years being a very long period how could Maharashtra Govt agree for 50 years? Why should Pondicherry Govt agree for 30 years extendable for another 20 years?
Vizhinjam is expected to attract container traffic emanating from other ports and already there is keen competition within the major ports for container traffic. As the terminal is expected to survive basically on transhipment cargo the investor will be facing an uncertain future.
A longer concession period will help the investor to weather the storm in the initial stages and turn the project profitable in the long run.
What would the Kerala Govt do if the Tamil Nadu govt advertises for Coalachal and offer a longer concession period of 50 years to make their transhipment project more attractive?.
I strongly believe that the TN Govt would exactly do the same. If that happens the Govt of kerala will look very vulnerable. By the time it will be too late to correct the course and the State will miss its last bus!"
Letter from Dr.Jose Paul
Wednesday, June 27, 2007
Vizhinjam Container Terminal has much more to cross
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.
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.
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.
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