According to Mr GJ Rao chairman of Tuticorin Port Trust, the RFQ tender to convert the berth number eight into a container berth at Tuticorin port has been put on hold, as the private terminal operator PSA-Sical has approached the Madras High Court seeking an opportunity to participate in the tender.

The Madras High Court has, in turn, sent the petition to the Supreme Court as there is already a similar case related to JNPT. The case is coming up for hearing in a couple of days.

Mr Rao said nine companies, including Mundra Port, Essar, ABG, India Port Terminals, IL&FS and Marg, participated in the RFQ issued in August. However, since the case is now in the Supreme Court, the tender has been put on hold.

The government of India, in August, issued a directive to restrict private sector monopoly in ports. Due to this, PSA-Sical was not allowed to participate in the bid for 8 berth' at the port. The INR 312 crore project is for the conversion of the existing berth into a container terminal on ‘build, own, transfer basis.

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.

It has been nearly six years since the Government first gave its in-principle approval for conversion of the berth number 8 project at Tuticorin. The Shipping Ministry gave its approval in March 2009, but the project was delayed due to various court proceedings.

This was the first project under the government's ‘new private sector monopoly' directive in major ports.

(Sourced from Hindu)