Infrastructure sector projects by PSA Bharat Investments Pte. Ltd in Mumbai

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PSA Bharat Investments Pte. Ltd

With Singapore’s PSA finally being awarded the project for developing India’s largest container terminal at Jawaharlal Nehru Port (JNPT), this afternoon, all apprehensions have finally been laid to rest. PSA was awarded the project nearly two years ago after the consortium that included its Indian partner ABG offered a record royalty of 50.8 % revenue share. PSA however did not sign the concession, citing technicalities. JNPT had to call for global bids all over again. According to sources the port was under pressure to blacklist PSA. But port officials felt such a move could end up in controversies and delay the project in the process. Accordingly, this 4th Container Terminal with a quay length of 2000 mtrs and a capacity of 4.8 million TEUs per annum to be developed at an estimated project cost of $ 1.3 billion was bid out by the JNPT through a global tender notice issued on 5th June 2013. In response, eight bidders submitted their Request for Qualification (RFQ), out of which RFP was issued to seven qualified bidders in the month of Dec. 2013. On 20th Feb. 2014, two bidders, viz. M/s PSA Bharat Investments Pte. Ltd. and M/s Adani Port & SEZ Limited in consortium with Terminal Investments Ltd., SA, submitted their price bids and the same were opened on 20th Feb. 2014 itself. At the meeting of the Board of Trustees of JNPT, held this afternoon it was decided to issue the “Letter of Award” (LOA) for undertaking the project of development of the Container Terminal on Design, Build, Finance, Operate and Transfer (DBFOT) basis to M/s PSA Investments Pte. Ltd. being the highest bidder and who had quoted the highest percentage of revenue share of 35.79%. Accordingly the LOA has been issued. PSA now gets 30 days to sign the Concession Agreement. This is the second time that PSA is being issued the LOA for same project at JNPT. According to sources this is the largest port project involving 100% foreign direct investment. When completed, this will add nearly 5 million TEUs to the port’s throughput, which currently stands at 4.26 million TEUs (2012-13). JNPT which is the country’s foremost container port has three container terminals. These are JNPCT that handled 1.21 million TEUs, NSICT (DP World) 1.04 million TEUs, and GTICT (APM Terminals) 2.01 million TEUs.

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Conceptual

Mumbai

Maharashtra

India

Infrastructure