The revised cost will be around Rs. 5,000 crore

The successful bidder for the Chennai Port’s mega container terminal project may have to shell out over Rs.1,300 crore additionally in view of the revision of the cost of the project.

Addressing Hyderabad-based businessmen at a trade meet on Friday, Chennai Port Trust (ChPT) Chairman Atuly Misra said the project’s previous estimate - Rs.3,686 crore - was made in 2006-2007 and the cost of several items had gone up since then. The new project cost would be in the region of Rs.5,000 crore.

However, the actual cost would be finalised in the next few weeks by the transactions adviser.

In the last one year or so, ChPT floated tenders twice and had even finalised bidders. But, the Board of Trustees rejected the offer stating that revenue offered by the bidders was low. The tender was scrapped and ChPT decided to revisit the project.

Jawahar Dock

Talking to The Hindu, Mr. Misra said, “The Transaction Adviser will be appointed within a month. Thereafter, we will float tender calling for Requests for Qualification (RfQ) from interested parties. It would take at least seven to eight months for us to award the project to the successful bidder. Meanwhile, we have floated tenders to convert Jawahar Dock, which was previously handling coal, into a container terminal that would handle mid-size vessels.”

At the trade meet, Mr. Misra persuaded traders to use ChPT as a gateway to export their products to Singapore or Colombo.

“These traders, who are now using Mumbai and Mundra ports to move their goods, are reluctant to use Chennai Port due to congestion. We explained to them about the status of the Ennore-Manali Road Improvement Project and the availability of more vessels at ChPT on regular basis. The Container Corporation of India also came forward to run rakes thrice a week.” he said.

More In: Tamil Nadu | National