Visakhapatnam Port Trust (VPT) would reportedly invite fresh price bids for the Rs 633-crore contract to extend the existing container terminal from 450 metre to 850 metre.
The port had earlier invited the bids to extend the container terminal and add capacity of 0.54 million TEUs in addition to the existing 0.40 million TEUs. Currently, Visakhapatnam Container Terminal (VCTPL) is handling 247,133 TEUs per annum against the capacity of 4 lakh TEUs.
The port authority reportedly decided to invite fresh bids because it failed to reach a consensus with the earlier selected bidder, VCTPL, on revenue sharing.
Media reports indicate that the port authority would invite fresh price bids from the earlier qualified six bidders as well as VCTPL.
Earlier, six companies — Simplex Infra, NEC, Gangavaram Port, Adani Group, Welspun and Leighton and Gammon India — were qualified to bid for the project. Besides these firms, VCTPL, which is operating the existing terminal, was also qualified to bid. Finally only VCTPL submitted the bid and bagged the project.
But the port authority and VCTPL failed to agree on the revenue-sharing for the project. The latter offered a maximum of 10 per cent of revenue but the port authorities insisted on 20-25 per cent.