The Kerala Government has decided in-principle to convert Ponnani port in Malappuram district into an all-weather port through PPP basis.

A Chennai-based Malabar Port, has submitted a preliminary proposal to the state government in this regard and has been assigned to prepare a detailed project report (DRP) to develop the port on BOT basis. The government has accorded sanction to adopt the'‘Swiss Challenge' method for identifying the private partner for the project through a global tender. Accordingly, the DPR being prepared by Malabar Port will be examined by a consultant to be appointed by the government for technical and economic feasibility.

Malabar Port will not participate in the global tender, but will be offered the opportunity to match the best bid terms received. If it does so, the company will be selected to develop the port and run it commercially.

The selected investor will not be given any financial assistance by the government for supporting infrastructure such as rail connectivity, widening of the roads, water supply and electricity at any stage of the development process. The Government will only act as a facilitator for the project.

The proposed port will be developed into a deep-water port capable of handling vessels of around 50,000 DWT and is estimated to cost about Rs.1,500 crore. The concession period under the BOT agreement will be 30 years. After the concession period, if the government decides to bid the project again, the right of first refusal may be given to the original developer.