The government of India issued a directive to restrict private sector monopoly in ports. Due to this policy, PSA Sical will not be able to participate in the bid for the 8th berth' at the Tuticorin port.

The INR 312 crore project is for the conversion of the existing berth into a container terminal on build, own, transfer basis.

The Tuticorin Port Trust in the request for qualification said that “According to the government policy, if there is only one private terminal/berth operator in a port for a specific cargo, the operator of that berth, or his associates, shall not be allowed to bid for the next terminal/berth for handling the same cargo in the same port.”

According to Mr GJ Rao of Tuticorin Port Trust chairman said that “PSA Sical cannot even buy the RFQ document for the project. We got the order on Tuesday and have issued the RFQ today for the 8th berth.”

Leading companies such as Larsen & Toubro, Afcons and DP World, have shown interest in the project, he told Business Line. It has been nearly six years since the Government first gave its in-principle approval for conversion of the 8th berth project at Tuticorin. The Shipping Ministry gave its approval in March 2009, but the project was delayed due to various court proceedings.

(Sourced from BL)