Dubai Ports International (DPI) - the overseas port management arm of Dubai Ports Customs and Free Zone Corporation (PCFC) - has won a 38-year concession to manage, operate and develop the Rajiv Gandhi Container Terminal (RCGT) in the southern Indian port of Kochi on a build-operate-transfer (BOT) basis.
This is DPI's fifth successful bid to operate overseas ports, after securing the contracts for Jeddah Islamic Port, Djibouti, Constanza and Vishakhapatnam.
DPI is considered a strong contender for Iraq's sole deep water port, Umm Qasr.
Mohammed Sharaf, DPI managing director, who is in India to finalise the deal, said DPI has made a better offer to the Kochi Port Trust compared with rival bidders.
"We have made a much better offer to the Kochi Port Trust authority, compared to other bidders, which secured us the deal," Sharaf told Gulf News.
"Our offer includes a royalty, revenue sharing and investment in the development of the port." He did not disclose the size of the royalty offered to the Kochi Port Trust.
In the race for the bid, the qualified contenders included Port of Singapore Authority, P&O Ports, Maersk Sealand, ICTSI and a host of local Indian companies in consortium with other terminal operators like the Port of Malta.
Sultan Ahmed bin Sulayem, executive chairman of Ports, Customs and Free Zone Corp., said: "We are pleased to announce DPI's second success in the Subcontinent after winning a 30-year contract to equip and operate a container terminal at Vishakhapatnam Port which commenced operations in July 2003.
"This follows successful management contracts in the Middle East, Africa and Europe. DPI's expertise as common user terminal operators, as well as our commitment to expand the terminal well beyond its current capacity, were major reasons for this achievement."
The DPI has won the Dh1.65 billion container transshipment terminal on a build-operate-transfer (BOT) basis, offering 33.3 per cent revenue to Kochi Port Trust annually, defeating the rival bid of 10.1 per cent offered by IL&FS-Punj Lloyd.
Sharaf expects the Kochi Port Trust to issue a letter of intent (LOI) soon and will take over the management of the terminal within two months.
Meanwhile, the Kochi Port Trust is expected to meet tomorrow to finalise the deal and issue the LOI, subject to the federal government's approval.
This is DPI's second successful bid for the management contract for Indian ports, following a 30-year contract for Vishakhapatnam port.
PCFC sources in Dubai said the container terminal handled 165,000 containers during the last financial year.
This year, it will handle over 170,000 containers. Handling capacity is expected to increase to 1.5 million TeUs once the final phase of the project is completed.
However, the PCFC will develop the terminal to handle over 3 million TeUs, said the source.
"The DPI's overall plan includes the development of a greenfield site into an international container terminal, measuring 2,150 metres of quay at a 100-hectare facility," said the PCFC official.
"Once the DPI takes over, we expect the terminal to record a double-digit growth annually as we will promote the facility as a major transshipment port for the region."
Gulf News
