APM gets nod to bid for India terminal project

The Supreme Court has allowed Danish port operator APM Terminals, part of the A P Moller-Maersk Group, to participate in the bidding process for the US$1.5 billion container terminal project in India.


The decks appear to have been finally cleared for Jawaharlal Nehru Port Trust (JNPT) to resume the bidding process for the fourth container terminal project, which had hit a legal roadblock, reported The Hindu.


The verdict was on a petition filed by the Danish firm, seeking qualification for putting in its bids for the project, after the port had earlier declined to accept its bid on the ground that it already operates a container terminal in the port.


APM Terminals had initially filed a writ petition in the Mumbai High Court, which had rejected it, prompting the terminal operator to move to the Supreme Court.


The apex court said its verdict was in favour of APM, taking into account some provisions of the new policy unveiled by the government in August 2010.


The already delayed project for the port was further clouded in uncertainty in the wake of the legal hurdle, as JNPT could not continue with the bidding process until the Supreme Court verdict. Now the port is keen on fast-tracking the bidding process by asking APM to submit its bid, which will compete with the five other bids it has received.


"We will be considering the APM bid along with the others and go ahead with the bidding process. We are keen to complete the project at the earliest, especially with the existing three terminal operating at over-capacity and the port expected to handle a throughput of 10 million TEUs of container traffic by 2014-15," a senior official of the port said.


Along with APM, five other bidders — DP World, PSA of Singapore, Mundra Port and Special Economic Zone, GVK Group and Sterlite Industries — will now be in the fray for the 4.8 million TEU capacity fourth terminal project.


The development of a fourth terminal and a chemical terminal formed a vital part of its business plan.


According to the proposal, the port will develop a 1,000m container quay length and matching BPCL jetty facility with a 300m-long jetty in the first phase at a cost of $913.52 million, and an additional 1,000 m container quay length at a cost of about $579 million in the second phase.


Meanwhile, the new 30-year concession contract for the development and operation of Terminal Muelle Norte at the Port of Callao was signed today by Peruvian President Alan Garcia and representatives of APM Terminals and local partner Central Portuária SAC in the Presidential Palace in Peru's capital Lima.


On April 1, Peru named APM Terminals the winner of the bidding process, which also attracted submissions from Hutchison Port Holdings. The terms of the concession include the investment of US$749 million to update and expand the existing facility into a modern multi-purpose terminal serving general, ro-ro, break bulk and containerised cargos as well as cruise ships.


The contract calls for APM Terminals to assume operational control of the terminal within 60 days of signing the concession agreement.


Planned improvements include the construction of a new grain silo and other related cargo handling improvements over the coming years. Also planned are the construction of new berths and the expansion of the container handling capabilities including new post-panamax STS cranes and RTGs.


When built to full capacity, Terminal Muelle Norte will employ approximately 1,500 personnel and will be able to handle 2.9 million TEUs and 9.9 million tonnes of non-containerised cargo annually.


APM Terminals also operates local cargo inland services company Almacenes de Contenedores Sudamerica in Peru, with locations in Callao and Paita.
(Source:http://www.cargonewsasia.com)