October 12, 2008

Cochin Port may cancel tender for capital dredging

BL reported that Cochin Port Trust intends to cancel the tender for capital dredging in the channel as the rates quoted by the foreign dredging company for the work are exorbitantly high.

The report cited an official source as saying that “As against the estimated cost of INR 486 crore for dredging the channel, Belgium based Dredging International NV had quoted an amount of INR 805 crore. Since the amount is unreasonably high, we have decided to cancel the tender."

Cochin Port had received two tenders for the execution of the work, including one from the Kandla based Jaisu Shipping. However, the Indian company did not qualify for the work.

Considering the urgency of the situation, the port is planning to float a new tender to carry out capital dredging and it is awaiting government permission, which is expected very soon. It had also requested the government to nominate the Dredging Corporation of India to carry out the work. However, it is pointed out that the DCI did not have enough dredgers to meet the requirements.

This phase of dredging is the main capital dredging required to be carried out in the channel in order to achieve a depth of 14.5 meters as per the contractual agreement with DP World. Capital dredging is one of the prerequisites prior to the development of the first phase of the Vallarpadam international container transhipment terminal.