The Port of Jawaharlal Nehru (Nhava Sheva), India’s top container handler, has issued a new request for qualification from interested bidders for the development of its long-awaited fourth container terminal.
The move follows the cancellation of Nehru’s initial tender in September 2012 after top bidder PSA International failed to sign a concession agreement with the port authority within the stipulated timeline.
Officials said the restructured project, comprising a total quay length of 2 kilometers (about 1.2 miles), adequate backup infrastructure and modern service equipment, will require an estimated investment of approximately $1.4 billion.
There had been reports that the project would be split into two terminals with a berth length of 1,000 meters (about 3,280 feet) each with a view to attracting more private investors, but this proposal was reportedly turned down by the government.
The contract will be awarded under the public-private partnership model with a 30-year operating concession. RFQ applications are expected to be submitted on or before July 19.
The construction will help double Nehru’s total throughput capacity from the current 4.17 million 20-foot-equivalent units to nearly 9 million TEUs when the new terminal is fully operational.
The port authority in November 2012 awarded a $107 million contract to DP World to build and operate a minor terminal of 800,000 TEUs annual capacity, which is scheduled for completion in 2015.