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Though the proposal was firmed up relatively late as compared with similar projects that have been pending for long, Ponnani has become the first port in Kerala to be taken up for development through public-private participation (PPP) route.
BOT basis
The State Government has signed a concession agreement with the Chennai-Based Malabar Ports Private Ltd. for the development of the port on build-operate-transfer (BOT) basis.
Malabar Ports won the contract through ‘Swiss Challenge’ method, which was also adopted for the first time in the State to identify the private investor in a PPP project.
The concession agreement is for 30 years and Malabar Ports will give a royalty of 2.75 per cent to the State Government during the first 15 years and 4.5 per cent during the remaining 15 years.
The project, which has yet to get the environment clearance from the Union Government, is envisaged to be completed within fours years after the commencement of work.
Phase I
In fact, the original proposal is to develop the port in three phases with an anticipated total outlay of Rs. 2,000 crore in current estimates. The agreement with Malabar Ports is for the development of the first phase, which is reckoned to cost Rs. 763 crore, according to Port Department officials.
Location
The port is located in the estuary where the Bharathapuzha joins the Arabian Sea and the all-weather facility now being developed is designed to handle vessels of up to 50,000 DWT.
The port is expected to speed up all-round development of Malappuram, Palakkad and Thrissur districts and also complement the Palakkad-Coimbatore industrial belt.
connectivity
According to the master plan of the project, the port will have both rail and road connectivity for the movement of cargo to hinterland destinations. The rail connectivity over a distance of 13 km will require acquisition of around 100 acres of land and it will cost a total of Rs 101 crore.
The development of the port will not affect the functioning of the existing fishing harbour in the area, it is pointed out.
Apart from Ponnani port, two other ports, Beypore and Azhikkal, in the Malabar region have been in the waiting, but for a much longer time of more than one-and-a-half decades, for being initiated into a firm development mode.
Though both ports had been put through the tender process some time back, the department had failed to identify private investors, necessitating re-tendering of the projects.
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