JNPT urges Supreme Court to fast-track fourth terminal case

With the bank guarantee of bidders set to expire soon, Jawaharlal Nehru Port Trust (JNPT) has filed an application in the Supreme Court  for urgent pronouncement of the verdict in the case related to the Rs6,700 crore fourth container terminal project at the port.

The Supreme Court has heard the arguments from the petitioner AP Moller Mersk and the government.

A shipping ministry official close to the development said, “JNPT has requested the SC for early pronouncement of verdict in the case. The bank guarantee of the bidders expires this month. After that, we will have to re-invite tenders and new cost parameters may have to be decided.”

The fourth container terminal at JNPT was one of the key port sector projects to be awarded in 2010-11. The project, envisaging capacity creation to the tune of 4.8 million twenty-feet equivalent units (TEUs) was approved by the Cabinet Committee on Infrastructure in January last year, and bids were subsequently called to develop it on a design, build, operate and transfer basis.

The project assumes significance as the port would be required to handle container traffic to the tune of 10 million TEUs in year 2014-15. In order to handle the additional volumes, further terminal facility will be required. In view of this, it has been decided to develop fourth container terminal as an extension of BPCL jetty and a chemical terminal. The development is proposed in two phases.

In response to the bid, infrastructure majors such as DP World, Sterlite Industries, PSA International, Adani Enterprises and GVK applied for setting up the fourth container terminal.

The government though rejected the APM’s bid, which it challenged in the Bombay high court. With the Bombay high court rejecting its plea, the company challenged it in the Supreme Court last year.

The ministry officials contend that as per the contractual requirement of the third terminal, which the company is handling at JNPT, it was bound not take up any further terminal activity.

Meanwhile, the ministry officials also hope that the
corporatisation of JNPT will be complete by the end of the calendar year.

According to an official, the ministry as of now is in the process of confidence building with the ports staff to assuage their concerns owing to the proposed restructuring.