Four companies have bid for the Rs. 22,323-crore offshore development package for upcoming Vadhvan Port in Maharashtra’s Palghar district. The package comprises dredging, offshore land reclamation and construction of a protection bund, which makes it one of the largest contracts associated with greenfield port projects.
The four bidders are Adani Ports and Special Economic Zone, DP World, NMDC Dredging & Marine and Vishwa Samudra. Proposals will be sent for security clearance and financial bids are expected to open soon.
The tender is being done on Hybrid Annuity Mode (HAM) and the work is expected to be taken up in two phases under public private partnership (PPP) route.
Four firms enter the race for the port package
The latest bids mark a wider field for the offshore works after the tender deadline was extended in September. Earlier, bids had been submitted by DP World and a Boskalis-NMDC combination, while other potential bidders were still working through the tender process.
The final four bidders will now compete for the contract, with the project expected to be awarded to the bidder quoting the lowest cost, subject to the applicable tender conditions.
The Rs. 22,323.47-crore package covers a 15-year concession period. This includes five years for construction, divided into two phases, followed by 10 years of operation and maintenance.
Under the approved HAM structure, 45% of the project cost will be paid by Vadhvan Port Project Ltd during construction. The remaining 55% will be paid through annuity payments after completion, along with interest on the residual debt.
Offshore works to create 1,207 hectares of reclaimed land
The main construction package involves dredging and reclaiming offshore land for the port, along with building a protection bund around the reclaimed area.
The work will cover 1,207 hectares and will be carried out in two phases. The operation and maintenance cost for the shore protection bund over 10 years has been estimated at Rs. 171.79 crore.
The offshore package is one of three major components being taken up for Vadhvan Port. Near-shore reclamation and related infrastructure, valued at Rs. 1,648 crore, has already been awarded. A separate Rs. 5,301.25-crore contract for the port’s 10.14-km breakwater has also been awarded.
The different packages are being developed as part of the larger effort to establish the port offshore while providing the land and marine infrastructure required for its operations.
Rs. 76,220 crore Vadhvan project moves ahead
Vadhvan Port is being developed by Vadhvan Port Project Ltd, a joint venture between the Jawaharlal Nehru Port Authority and the Maharashtra Maritime Board.
The overall project has an estimated cost of Rs. 76,220 crore and is planned to handle up to 298 million tonnes of cargo a year, including 23.2 million TEUs of container traffic.
The port will have nine container terminals with a combined quay length of 9,000 metres. It is also planned to include liquid cargo berths, a roll-on/roll-off facility, general and coastal cargo berths, a common rail yard, tank farms and storage facilities.
The container terminals will further be developed in public-private partnership.
Port planned to be operational by 2030
After completion, Vadhvan Port is planned to accommodate large container ships and more than 100 quay side gantry cranes are proposed in its container terminals.
The project is also being supported by road connectivity works. The wider region has also seen real estate activity, including Birla Estates’ land acquisition in Boisar.
With the offshore reclamation package now attracting four bidders, the project has moved into another major stage of its development. The immediate next step will be security clearance followed by the opening of financial bids. The port is currently targeted for operations by 2030.
