September 08, 2008

JNPT dredging tender facing delay in clearances

It is reported that INR 800 crore projects for dredging and widening of the main harbor channel at Jawaharlal Nehru Port is facing delays due to government clearances and JNPT may have to call for a fresh tender as the validity of current bids expire on April 18th 2008.

As per report, JNPT has finalized the successful bidder in July 2007 but inordinate delay in award has forced the lowest bidder to set a deadline of April 18th 2008.

As per report, as it is unlikely for the port to get the ministry’s nod in time, port will have to start the tedious tendering process afresh.

JNPT short listed Van Oord BV and Boscalis of the Netherlands, Jan de nul of Belgium and Dredging International in 2006. After opening the price bids on April 10th 2007, the port took up evaluation of the bids. The port’s board, in its meeting on July 19th 2007, approved to award the work to the lowest bidder, Van Oord BV and submitted the proposal to the ministry for approval.

For JNPT, this project is vital, as shipping lines are increasingly deploying bigger container vessels for gaining economies of scale. Thus, with increasing trend towards larger sized container ships, draught has become an important factor in the choice of port by shipping lines. JNPT may lose out in the race, as at present vessels having a draught of 12.5 meters have to navigate through Mumbai harbor channel and JNPT channel, making use of the tidal window. In order to accommodate larger vessels, the port, years ago, had proposed to deepen the draught of the 35 kilometers long channel to 14 meters to accommodate ships of 6,000 TEUs and later to 15 meters.