MoS may restrict private operators to 1 project in every port

MoS may restrict private operators to 1 project in every port

policy Proposed

With a view to preventing the domination of any single private operator at any port, the Ministry of Shipping (MoS) is considering barring that operator from taking part in the bidding programmes for any subsequent project.

No other changes are being made in the model concession agreement (MCA) for public-private partnership (PPP) projects. "We will issue the revised guidelines as policy directives to the Major Port Trusts in the country," a senior MoS official asserted.

In fact, two projects worth over Rs 7,000 crore for the development of container terminals in Tamil Nadu and Maharashtra have been stalled due to litigation problems arising from lack of clarity on the policy on this issue.

A leading port operator, which was recently awarded a Rs 600-crore contract for the development of a stand-alone container handling facility on a West Coast port, has filed a petition against the port authority for preventing it from bidding for developing another container terminal at the same gateway facility. This is primarily because there is no specific clause disallowing a company which had already won a contract to bid for a subsequent one.

In its petition, the private operator argued that a third project for capacity addition had been awarded in between the two tenders. The operator has made representations against being disqualified, a MoS official explained.

Yet another project which entails the conversion of a berth into a container terminal on a East Coast port, too, has been delayed with another operator filing a case against the port authority.

Mr Rakesh Srivastav, Joint Secretary, Ports, said, "We want to prevent monopoly while taking up capacity expansion projects. So, we have dropped the tender for development of container terminal at the facility. We are reassessing the terms of the contract. It will take some time before the project is taken up."

Source : Exim News Service - New Delhi, Oct. 26