Cochin Port Trust is likely to cancel tenders of capital dredging for the proposed Vallarpadam International Container Transhipment Terminal, which it had invited in November 2007.

The reason for cancellation is learnt that the rates quoted by the foreign dredging company for the work were exorbitantly high. The company quoted Rs.805 crore for the dredging work which the Port Trust had estimated will cost Rs.486 crore. The quoted amount was 70 per cent higher than the estimate.

Capital dredging for the proposed transhipment terminal is to achieve a depth of 14.5 feet draft and is part of the agreement between Cochin Port Trust and India Gateway Terminals.

The required channel depth has to be achieved by early 2010 and the dredging requirement is to the tune of 30 million cubic metre besides the annual maintenance dredging of 12 million cubic metre.