The Visakhapatnam Port Trust is yet to take a final decision on the price bid offered by the Visakha Container Terminal Pvt Ltd (VCTPL) for extension of the container terminal here.
The price bid was opened by the tender committee on Nov. 18 for the Rs 633-crore extension of container terminal to increase the capacity from 0.5 million to 0.40 million twenty-foot equivalent unit (TEU) per annum. Now a decision has to be taken on it. Further negotiation is also possible.
The VCTPL, which developed the terminal under PPP mode in June, 2003, emerged as the single qualified bidder in the first attempt. When its offer of 10 per cent of gross revenue share to VPT was found unacceptable, the board of trustees recommended seeking fresh bids for seven qualified bidders, which included Adani, Simplex, Gangavaram Port Ltd, NEC, Welspun & Leighton and Gammon.
In the second attempt also, the VCTPL emerged as the sole bidder. “The committee is still evaluating the offer. A decision will be taken once the process is completed,” VPT Deputy Chairman G.V.L. Satya Kumar said here on Saturday evening.
He said the port was encouraging PPP mode of investment in big way to increase cargo handling capacity from 62 to 112 million tonne by March, 2015. During earlier attempt, the VCTPL refused to offer more than 10 per cent of gross revenue share saying it was not viable for them as the traffic projections were ‘unrealistic.’
The Indian Ports Association in its study found 13 to 15 per cent as reasonable, a study conducted by RITES sought more revenue share for the project.