MUMBAI: A consortium led by Kakinada Seaports Ltd has won the rights to develop and operate a coal handling terminal for 30 years at Paradip Port in Orissa by quoting the highest revenue share price bid in a re-tender for the project.
The Kakinada Seaports Ltd-Bothra Shipping Services Pvt Ltd-Ripley & Co consortium placed a revenue share price bid of 36.53 per cent to clinch the deal for building a deep-water terminal with a capacity to load 10 million tonnes (mt) of coking coal a year, Paradip Port Trust Deputy Chairman N Vaiyapuri said.
Cargo handling contracts at Central Government-owned ports are decided on the basis of revenue share — the entity willing to share the most from its annual revenues will get the deal.
“The Kakinada Seaports consortium was issued a letter of award (LoA) for the project after the board of trustees cleared the highest price bid submitted by the group,” Vaiyapuri said. The concession agreement for the project will be signed in the next few days.
A spokesman for the Kakinada Seaports consortium confirmed the development, adding that it had accepted the LoA issued by the port trust to develop the terminal at an estimated cost of Rs. 655.56 crore.
This will be the second port project for Kakinada Seaports, the entity that runs the deep-water port at Kakinada in Andhra Pradesh and one of the first private ports to be developed in India. Bothra Shipping and Ripley are amongst India’s top ship stevedoring service firms.