GIPL to commission its MbPT BY end of 2012

Gammon Infrastructure Projects (GIPL) hopes to commission its offshore container terminal port project at the Mumbai Port Trust (MbPT)by the end of next year, managing director of the infrastructure company, KK Mohanty, said.
The Rs1,016 crore Indira Container Terminal (ICT) was to be completed this year. “There has been no delay from our side. In fact, our work is ahead of schedule but the port authorities delayed dredging activities,” Mohanty said.
Though ICT is presently a 50:50 joint venture between GIPL and Spain’s Dragados-SPL, GIPL is in the process of raising its stake to 74%. According to the agreement between the two companies signed in early 2010, GIPL will buy the remaining 26% from Dragados three years after the commercial operations begin.
ICT will have a capacity of 1.2 million TEUs (twenty-foot equivalent units).
A TEU, used to measure a ship’s cargo-carrying capacity and a terminal’s cargo-handling capacity, is one container 20-foot long, which is the standard size of a container. In case the container is 40-foot long the cargo lifted is around 2 TEU.
ICT is one of GIPL’s three port projects. While the Vizag port has been operational since 2004, GIPL recently got the forest clearance from the environment ministry for the Rs518 crore iron ore terminal at Paradip, Orissa, in which it holds 31%. Other partners include Minerals & Metals Trading Corporation (MMTC) and Hong Kong’s Noble group.
The companies in July financially closed the project, which is expected to be operational by 2013.
Besides the three ports, GIPL has eight road projects, of which four are operational. Mohanty said two will be commissioned this fiscal and the last two in 2012-13. He said the company has emerged as the preferred bidder for a national highway project and is the only bidder for another project. He did not divulge more details about the projects since the National Highways Authority of India is yet to award the projects.
An August 17 report by IDFC Securities said the operations of GIPL’s commissioned projects have steadily improved resulting in higher cash flows.
“Although the company will need Rs220 crore in fiscal 2012 and Rs380 crore in fiscal 2013 to fulfill equity funding requirement in various BOT (build-operate-transfer) projects, we expect the company to raise funds via options such as rights issue, stake dilution in operational projects or securitisation of operational cash flows,” Shirish Rane, Salil Desai, Ashish Shah and Nikhil Salvi wrote in the report.
GIPL is also developing two hydel projects, one co-generation project and biomass plants in Punjab and Haryana

Mumbai offshore terminal delayed [GIPL]

Gammon Infrastructure Projects Ltd (GIPL) says the opening of its offshore container terminal at India’s Mumbai port has been put back to the end of next year.
The US$225M Indira Container Terminal (ICT) was scheduled to be completed this year, but according to GIPL managing director KK Mohanty, the project has been held up by delays to dredging work being undertaken by the Mumbai Port Trust (MbPT).
ICT is currently a 50:50 joint venture between GIPL and Spain’s Dragados-SPL (NOATUM), but GIPL is in the process of raising its stake to 74%. Under an agreement signed between the two companies in early 2010, GIPL will buy the remaining 26% from Dragados three years after commercial operations.
The new facility is being developed on a build-operate-transfer basis under a 30-year concession, including the construction period. With a handling capacity of 1.2M TEU/year across two 350m berths, it will be able to accommodate ships of up to 6,000 TEU that are currently unable to call at Mumbai.

CONCOR plans cement hub in Ahmedabad

Container Corporation of India Limited (CONCOR), India’s largest intermodal-logistics Public Sector Enterprise having turnover of Rs. 3828.12 Crores ($ 850.69 million) in 2010-11, is planning to develop Rail Based Cement Hub” with in the complex of Multi-modal Logistics Park (MMLP) at Khodiyar Terminal, Ahmedabad on a Public Private Partnership (PPP) model. Khodiyar Terminal having 155 Acres of land is located on Sarkhej-Gandhinagar (SG) Highway, in the outskirts of Gujarat’s largest commercial city Ahmedabad. Gujarat’s biggest ICD-Khodiyar is already operational in 78.7 Acres and the rest of the area is to be developed as Multi-purpose Warehousing Complex, Steel and Cement Hub for serving to steel and cement industries. Ahmedabad being largest commercial city of Gujarat comprises of various distributors, wholesales dealers, and traders of cement and steel caters to the building construction and other auxiliary industries in and around Ahmedabad and due to that the demand for logistics services is expected to grow significantly. Khodiyar is ideally located at the outskirts of Ahmedabad and has potential to become hub for many Indian and multinational companies for the supply chain management. CONCOR’s objective is to develop and provide multimodal logistics support for India’s international and domestic containerized cargo using Indian rail network. Apart from rail, CONCOR also moves containerized cargo by road, operates ICDs and CFSs. Over the years, CONCOR has diversified into several container logistics activities such as container port, Air cargo Complex, Air Freight Station, Warehousing, Logistics Park, Supply chain management etc.

 

JN Port enhances maximum permissible LOA

With the placing of 2 Laser Range Finders on long vessels, the restrictions for turning around vessels over 270 m LOA in the night were removed recently at JN Port. With the experience gained from using these Laser Range Finders and following the hiring of a 60T Bollard Pull Tug, the Port has decided to handle vessels of up to 320 m LOA with effect from October 1.
However, the maximum draughts and displacements will continue to be as per the existing practice. Based on the experience, this will be reviewed for handling of such vessels during the 2012 monsoon, according to an official release.

Source : Exim News Service - NAVI MUMBAI, Sept. 6

Shipping Ministry awarding 23 PPP port sector projects this fiscal: Vasan

The Union Minister of Shipping, Mr G. K. Vasan, informed the Lok Sabha recently that as per the current policy, port sector projects are awarded on public-private partnership (PPP) basis on build, operate and transfer (BOT) mode under the two stages bidding system. The private sector is allowed to participate in the competitive bidding process or BOT projects, and the projects are awarded to the highest bidder, he disclosed.
Currently, 29 private sector projects have been sanctioned and are in operation across the Major Ports. Twenty more private sector projects are currently under various stages of construction. In the current financial year, a target of 23 PPP projects has been fixed to be awarded on PPP basis, which are at different stages of planning and bidding, he said.
The Minister pointed out that private sector participation is allowed under the guidelines issued by the Ministry in October 1996, as amended from time to time, which allows foreign investors too, subject to necessary clearances of concerned authorities.
The Minister informed that the guidelines allow and encourage private sector participation in enhancing port capacities, modernisation of port equipment, etc. Hundred per cent FDI is allowed in the port sector, he added.

Source : Exim News Service - NEW DELHI, Sept. 5

Landlord port model chosen for Vizhinjam ICTT

WITH the Kerala government now focusing on the Landlord Port Model (LPM), the Rs 9,000-crore Vizhinjam International Container Transhipment Terminal (ICTT) is finally beginning to find its feet on the infrastructure front after hanging fire for a decade.
Proposed as one of the world's deepest ports with a natural depth of 24 metres, the Vizhinjam port looks likely at the moment to emerge as a force to reckon with in the global maritime trade.
Under the LPM, the basic infrastructure will be set up through an EPC (engineering, procurement and construction) contract. The technical bids submitted by a consortium of several companies will be scrutinised within 10 days for responsiveness and compliance with the qualifications. On completion of the technical evaluation, the Vizhinjam ICTT will go ahead with the financial bids.
The LPM puts a great deal of responsibility on the operator, by including the breakwater, quay wall, dredging and reclamation, and external connectivity (road, rail and utilities) in the infrastructure development of the project. The private partner would develop the massive structure for the port operations and the terminal, and would be allowed to operate and maintain the facility for 30 years.
Throwing light on the development, Mr K. Babu, Kerala Port Minister, apprised that the details of this plan were yet to be decided. He added that the private partner’s inputs would be considered while making the master plan and detailing the EPC construction.
To be set up at Vizhinjam, near Thiruvananthapuram, with a quay length of 2,000 metres in three phases, the deepsea port will be designed to cater primarily to container transhipment, besides multi-purpose and break-bulk cargo. In addition to minimising dredging expenses because of its natural draught, the port also has the advantage of being located close to busy global shipping routes. It is learnt that the facility is envisaged to handle 4.1 million containers annually in the initial phase.

Source : Exim News Service - Thiruvananthapuram, Sept. 5

Private Investor in port construction

Union Minister of Shipping, Shri G.K. Vasan informed the Lok Sabha in a written reply to a question that as per the current Policy, Port Sector Projects are awarded on Public Private Partnership (PPP) basis on Built, Operate and Transfer (BOT) mode under the two stages bidding system.

The private sector is allowed to participate in the competitive bidding process or BOT Projects and the Projects are awarded to the highest bidder. At present 29 Private Sector Projects have been sanctioned and in are operation across the Major Ports.

20 more private sector projects are currently under various stages of construction. In the current financial year a target of 23 PPP Projects has been fixed to be awarded on PPP basis which are at different stages of planning and bidding.

The Minister said that Private sector participation is allowed under the guidelines issued by the Ministry in October, 1996, as amended from time to time, which allows foreign investors also subject to necessary clearances of concerned authorities.

The Minister further informed that the guidelines for private sector participation in the Major Ports issued in October, 1996 allows and encourage private sector participation in enhancing port capacities and modernization of Port equipments etc. 100% FDI is allowed in Port Sector, he added.

Source: PIB

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