Home Economy Tender for Kerala’s Vizhinjam port finalised

Tender for Kerala’s Vizhinjam port finalised

By IANS,

Thiruvananthapuram : The proposed Rs.53.48 billion port at Vizhinjam near here will be built by a consortium, led by Hyderabad-based Lanco Kondapalli Power Private Ltd.

The implementation of the project is structured in a public private partnership format and Build Operate Transfer basis in which the state government would have a 24 percent stake.

The other members of the consortium include Malaysia-based Pembinaan Redzai Sdn. Bhd and Lanco Infrastructure Limited.

“Of the five companies, this company quoted the lowest and (the project) was given to them. The first phase of the project would be ready in three years from the start of the work. Now the cabinet will have to clear this and then it goes for security clearance from the central government,” state Ports Minister M. Vijayakumar told reporters here Wednesday.

This is the second time that an attempt to build the Vizhinjam port is being undertaken. During the previous Oommen Chandy government (2004-06), after selecting a consortium of two Chinese and a Mumbai firm through a global tender, the central government had at the last moment decided not to give its sanction citing security reasons.

The central government decided against giving security clearance as the Chinese companies had business interests in ports in Pakistan.

A major advantage of Vizhinjam port is that it needs no dredging. The natural depth is 24 metres, one of the deepest in the world.

Another advantage is that the proposed port lies very close to the international waters, which is a busy route. It is to be built on an area of 150 acres and there will be no displacement of local fishermen. The port will be able to handle 4.10 million containers annually.