A consortium of Cargo Motors and Israel Port Company (IPC) has won a bid to develop a port and container terminal at Nargol in the Gujarat state of India.
Initially, the consortium plans to invest Rs40bn ($789m) to develop the Nargol port and will start construction in the second quarter of 2013.
Cargo Motors director Dhruv Batra was quoted by livemint.com as saying that the company has been informed by the government that it has won the bid. "With Gujarat emerging as a new auto hub, we will consider setting up a roll-on/roll-off (ro-ro) terminal for handling cars in future depending on market conditions," Batra said.
The scope of work includes construction of cargo berths, container berths, POL berths, breakwaters, navigation channel, container freight station, railway sidings, truck loading and unloading areas, and a container depot. The winning bidder will also operate and maintain the port for 30 years under a BOOT agreement with Gujarat Maritime Board that includes container handling and regular dredging.
The consortium is also planning to build a new car terminal by setting up a ro-ro facility, which will allow wheeled cargo, such as automobiles, to be rolled off or on to vessels without the need for cranes.
Nargol, a multi-purpose port located along the Delhi Mumbai Industrial Corridor (DMIC), handles solid, liquid and container cargos. The cargo-handling capacity of the port is expected to 1.2Mteu per annum. The container terminal at Nargol will be a ‘green’ port where the developers will make optimum use of solar and tidal energy.
According to GMB, the consortium won the bid by offering high waterfront charges of 171%, outbidding infrastructure majors such as Gammon India, Sterlite-Vedanta and Welspun Group.
In the consortium Cargo Motors will hold a 74% equity stake, while Israel Ports will hold 26%.
Under the plan, the consortium plans to reclaim 75-150ha of land for the first phase of port development, which could be commissioned by 2016.