The Hindu Business Line : Kerala hopeful of construction pact for Vizhinjam project

THE Kerala Government is confident of being able to tie up the construction agreement for the development of the proposed international container transhipment terminal at Vizhinjam, near here, before the end of this year.

The Department of Ports has fixed July 30 as the last date for receiving techno-economic bids from private promoters. So far, 18 companies have bought the request for proposal (RFP) for submitting the bids.

Though the last date has been postponed by seven weeks from the originally fixed June 8, there is no question of further extending it, according to Mr M.V. Raghavan, Minister for Ports and Co-operation.

He told Business Line that the Vizhinjam project is a prestigious one and has been given top priority by the Government. "It is a project of great importance for the country as a whole," he said.

The fact that at as many as 18 companies have already bought RFP documents clearly indicates the interest the project has generated among the prospective investors, both within and outside the country. It also shows that the project is viable what with all its favourable factors such as geographical location and deep draft, the Minister said.

The project has been hanging fire for more than a decade now and the Government is resolved that it takes off without further delay. The formation of a fully owned company, namely Vizhinjam International Seaport Ltd, to implement the project underlines the Government's commitment in this regard.

In the remote scenario of the Government finding that none of the bids measures up to its terms and stipulations, it may explore the possibility of the company going ahead on its own to take up works such as construction of breakwaters and land reclamation. This is estimated to cost around Rs 500 crore, which the company will mobilise from various sources such as non-resident Indians and financial institutions, Mr Raghavan said.

The Vizhinjam project is projected to cost about Rs 4,200 crore with the first phase accounting for Rs 1,850 crore. The project has been conceived after extensive studies by various agencies, including a study on container traffic economics, he noted.

The new maritime development programme of the Union Government has approved Vizhinjam and Azhikkal ports in the State for public-private partnership initiative in port development. They are among nine such ports selected under the programme.

The Minister said that the plan for the development of Azhikkal port is well on course with Universal Lubricants of Sharjah having submitted a proposal, which is being examined. The project features a ship-repairing yard, among other facilities. He hoped that an agreement with Universal Lubricants could be signed shortly.

In the case of Beypore port, the Government expects to sign a build-operate-transfer agreement with Parissons group within the next one month.

The Rs 200-crore Alappuzha marina project, for which the Government has entered into a memorandum of understanding with Eeco group, is also slated to be taken up for implementation soon.

The officials in the Ports Department said that the project size of Azhikkal port has been pruned after a realistic appraisal of the potential cargo and passenger traffic there. The project, originally estimated to cost Rs 1,200 crore, will now be taken up in modules.

In the first phase, an investment of around Rs 360 crore is envisaged for construction of six or seven berths.

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