Adani Ports and Special Economic Zone Ltd (APSEZ) has won a dredging contract valued at Rs 310 crore from Centre-run Deendayal Port Trust in Kandla, Gujarat.

India’s biggest private port operator and private dredging contractor had emerged the lowest bidder on a tender floated by Deendayal Port Trust by placing a price bid of Rs310 crore for the three-year deal.

APSEZ’s price quotation was 21% lower than the Rs393 crore estimated by Deendayal Port Trust for the work.

APSEZ was awarded the work contract on March 10, Deendayal Port Trust sources said.

Dredging Corporation of India Ltd (DCI), which is owned by four major port trusts including Deendayal Port Trust, quoted Rs387.89 crore for the work, just 1% lower then the port trust’s estimates.

Ports located on India’s western coast such as Deendayal are prone to silting and needs annual maintenance dredging to help in smooth movement of ships.

The tender was issued in July last year to finalise a new three-year dredging contract – mostly for maintaining the port’s channel at the prevailing water depth - when the term of the existing three-year deal given to Van Oord India Pvt Ltd ended.

The security clearance for the bidders – a key requirement before awarding dredging works in ports - was delayed by several months and was finally granted in early March.

“The decision of Deendayal Port Trust to finalise the contract through a competitive bidding process benefitted the port with the lowest price bid 21% lower then the value estimated by the port trust,” said a dredging industry official.

Dredging costs are recovered through vessel related charges collected from ships calling at the port, which in turn recover it from the trade.

The previous three-year dredging work was carried out by Van Oord India Pvt Ltd, the Indian unit of Dutch dredging firm Van Oord Dredging and Marine Contracting Co, for Rs347 crore.

Related Topics