The Port has floated a global tender for the capital dredging work to deepen the channel to 12.8 metres from the current 10.7 metres.
MUMBAI: The Port has floated a global tender for the capital dredging work to deepen the channel to 12.8 metres from the current 10.7 metres.
Better economies-of-scale have resulted in a global shift to large-sized vessels for ferrying cargo.
This has led to the ports across the world look at deepening their channels to cater to larger vessels.
The cost of the dredging at the Tuticorin port has been estimated at Rs 538 crore, which would be funded through internal resources and through a grant of Rs 188 crore from the central government.
The Port expects to start work early next year and does not foresee delays on any front as all the budgetary approvals have already been sought.
G J Rao, chairman, Tuticorin Port, said, “We propose to issue the work orders by December this year and start work immediately, which would take 14 months to be completed.”
Tuticorin Port handled 21.48 million tonnes of cargo last year, including 4,50,398 twenty-feet equivalent units (teus) of containers, registering 19.44% growth. It has secured the third position among the major Indian ports in terms of growth rate 19.33% during 2007-2008.
Considering the nature of dredging, Tuticorin Port expects a good response from all major dredging companies globally.
Under the National Maritime Development Programme, the government has earmarked an investment of Rs 6,304 crore for deepening of channels and berths at all the 12 major ports of the country.
The global demand for dredging and few newly-built dredgers joining the global fleet has led to paucity of dredgers. This has resulted in increased day rates and opportunity for the dredging companies to quote higher.
However, Rao said, “It’s true that dredging is a seller’s market today, but we do not anticipate any extraordinary rates to be quoted. When the dredging companies are out of one contract and seeking another, they quote reasonable.”
s_archana23@dnaindia.net
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