Adani Ports and Special Economic Zone, India’s biggest private port infrastructure developer, is poised to snap up another container port contract in the country.
The company last week emerged as the sole bidder for the long-planned, multi-purpose deep water Vizhinjam International Seaport, a greenfield site in India’s southern state of Kerala.
Besides its flagship Mundra Port, which has seen phenomenal growth in the past few years with throughput reaching a record 101 million tons in fiscal 2013-14, APSEZ has cargo facilities at Hazira, Dahej, Goa, Dhamra, Visakhapatnam and Ennore.
“The biggest advantage in Adani coming up is that they are a port development company and are in this business. Now the tender documents would be processed first by an empowered committee, then it would be checked by the director board of the proposed port, and then it comes to the state cabinet,” Kerala ports minister K.Babu said in a statement.
“There is no problem that Adani Ports is the lone bidder because this project has been on the cards for several years.”
The new tender process, which followed two previous failed attempts, began in December 2013. Four other domestic organizations and joint venture groups, including Adanis’ rivals Essar Ports and Gammon Infrastructure Projects, had initially shown interest in the project, but did not participate in the second stage of the process.
The project is designed to be built in three phases on a 40-year operating concession, requiring an estimated investment of about Rs. 6,000 crore (about $950 million).
“This is one port that will change the face of not only Kerala but also the country because once completed, the biggest (container) ship as of now with a capacity of 18,000 TEUs (twenty-foot-equivalent units) can berth here,” a state official said.
Local trade analysts believe the port site, which already has the mandatory environmental clearance, offers great growth potential given its close proximity to international shipping routes and deep natural water depth.
According to them, Vizhinjam could present a serious challenge to Sri Lanka’s Port of Colombo, just 200 nautical miles away, as Colombo largely depends on transshipment cargo from the subcontinent.
