PSA awarded JNPT’s 4th Container Terminal project
PSA to develop India’s largest container terminal at JNPT, which is country’s foremost container port
With Singapore’s PSA finally being awarded the project for developing India’s largest container terminal at Jawaharlal Nehru Port (JNPT), this afternoon, all apprehensions have finally been laid to rest.
PSA was awarded the project nearly two years ago after the consortium that included its Indian partner ABG offered a record royalty of 50.8 % revenue share. PSA however did not sign the concession, citing technicalities. JNPT had to call for global bids all over again. According to sources the port was under pressure to blacklist PSA. But port officials felt such a move could end up in controversies and delay the project in the process.
Accordingly, this 4 Container Terminal with a quay length of 2000 mtrs and a capacity of 4.8 million TEUs per annum to be developed at an estimated project cost of $ 1.3 billion was bid out by the JNPT through a global tender notice issued on 5th June 2013. In response, eight bidders submitted their Request for Qualification (RFQ), out of which RFP was issued to seven qualified bidders in the month of Dec. 2013.
On 20th Feb. 2014, two bidders, viz. M/s PSA Bharat Investments Pte. Ltd. and M/s Adani Port & SEZ Limited in consortium with Terminal Investments Ltd., SA, submitted their price bids and the same were opened on 20 Feb. 2014 itself.
At the meeting of the Board of Trustees of JNPT, held this afternoon it was decided to issue the “Letter of Award” (LOA) for undertaking the project of development of the Container Terminal on Design, Build, Finance, Operate and Transfer (DBFOT) basis to M/s PSA Investments Pte. Ltd. being the highest bidder and who had quoted the highest percentage of revenue share of 35.79%. Accordingly the LOA has been issued. PSA now gets 30 days to sign the Concession Agreement.
This is the second time that PSA is being issued the LOA for same project at JNPT. According to sources this is the largest port project involving 100% foreign direct investment. When completed, this will add nearly 5 million TEUs to the port’s throughput, which currently stands at 4.26 million TEUs (2012-13). JNPT which is the country’s foremost container port has three container terminals. These are JNPCT that handled 1.21 million TEUs, NSICT (DP World) 1.04 million TEUs, and GTICT (APM Terminals) 2.01 million TEUs.
PSA has presence on the East coast of India at three ports. The PSA-Sical Terminals Ltd runs the container terminal at VO Chidambaranar port (formerly known as Tuticorin port). It is 62.5% owned by PSA International, a unit of Temasek Holdings Pte Ltd., Singapore’s investment company. The ABG Kolkata Container Terminal Pvt. Ltd., a joint venture between ABG Infralogistics and PSA, which handles containers from two berths, at Kolkata. In this ABG owns a 51% stake in the terminal, with PSA holding the balance. The third is the PSA’s Chennai International Terminals Pvt. Ltd. which is the new container terminal in Chennai Port. Having secured the JNPT container project, PSA will now have presence on the West coast too.