The Board of Trustees of the Cochin Port has decided to debar Jaisu Shipping Company from carrying out dredging operations at the Port area for the next five years and to return the bid submitted by the company for maintenance dredging in the Port channel over the next three years.

The Board of Trustees also decided on Monday to seek substantial compensation from the Kandla-based dredging company for its failure to achieve the required 14.5-metre depth at the basin area of the newly-commissioned International Container Transshipment Terminal (ICTT).

The Board of Trustees accepted bids from Dredging Corporation of India (DCI) and a joint venture between Dharti Dreding and Infrastructure Limited and the Germany-based Mobil, Moebius-DDIL, for carrying out the maintenance dredging. The price bids for the dredging operations will be opened on Wednesday.

Cochin Port Trust (CPT) had issued a show-cause notice on Jaisu Shipping asking why it should not be blacklisted for its failure to complete the contracted work even after being given extended time. The Port authority said that the failure to achieve required depth had affected operation of the ICTT, which was inaugurated on February 11.

Jaisu Shipping Company cited various reasons for its present position. A delay of 103 days in the award of the dredging work; failure on the part of the port authorities to determine, through its hydropgrahic surveys, the quantities to be dredged and various encumbrances to dredging work.

The company also said it was willing to continue the works and to achieve the required levels.

Ernakulam District Court, last week, vacated a temporary injunction restraining Jaisu Shipping from taking away its dredgers from the Port area.

Meanwhile, the Port Trust is also looking at completing the capital dredging in the basin area of ICTT.

Separate bids have been invited for the work, expected to cost around Rs. 40 crore, sources said. The work will be carried at the cost and risk of Jaisu Shipping, Port Trust sources told The Hindu.

The company had failed to achieve the required 14.5-metre depth at the basin area of the ICTT.