Chennai Port Trust is soon expected to open price bids for the second container terminal project. The port expects to hand over the letter of intent to the selected developer by December 2006.

Matters have been prolonged due to the delay in the government's final security clearance to the three bidding consortia. Out of the three bidders, security clearance is pending for Hutchison Port Holdings that has formed a consortium with Larsen & Toubro. The other two bidders are consortium comprising Sical and Port of Singapore Authority, and Emirates Trading Agency and Gammon India.

The cost of the project is estimated to be Rs.491.76 crore, with Chennai Port Trust contributing around Rs.100 crore and the remaining amount to be brought in by the BOT operator consortium.

ProjectsToday adds: The matter of according security clearance to foreign companies in India's maritime sector has been hanging fire for quite some time. In fact, the ChPT's second container terminal project has been delayed for more than eight months only owing to clearance delays. The port trust was expecting to open the price bids in the third week of January 2006, and there has been no chance in the project status since then.

In early August 2006, it was learnt through unconfirmed reports that three Chinese companies, including Hutchison Port Holdings, were finally refused security clearance.

Also See:

Final denial to Chinese firms in Indian port sector? (05-Aug-06)

ChPT to open bids for second container terminal (03-Jan-06)

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