Chennai Port Trust terminates terminal tender

  • Further blow to India’s port privatisation program as investors cool interest

India’s port privatisation program has been dealt another set back with the news that the Chennai Port Trust (CPT) has rescinded its global tender for a new $615 million container terminal development.

According to the JOC, all seven of the project’s pre-qualified bidders failed to respond and meet the June 26th deadline for proposals leaving the CPT board with no option but to withdraw the tender. However, a port official told the JOC that the CPT board will now look to restructure the project to make it more attractive to private operators.

CPT has been working towards a new four million TEU capacity terminal since as far back as 2008. The first set back occurred in 2010 after all of the organisations shortlisted by the Indian port, which included DP World, the Essar Group and Adani Ports, decided to step away from the project during the final phase of the bidding process. The following year CPT pulled the plug on the proposed development again after declining the 5.25 percent revenue share offered by the Essar Group, and a further offer from Adani Ports due to security clearance issues.

The news of the Chennai terminal cancellation follows the news of a major capital expenditure plan in New Delhi, where as many as 30 port development contracts totalling $4.15 billion are planned for the current fiscal year to boost the region’s capacity by 288 million tonnes annually.

An official announcement on the cancellation of the tender is expected in the coming days, report the JOC.



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