Expanded CuddalorePort proposed

Tamil Nadu Maritime board is expected to float a Comprehensive one time tender combining Request for qualification (RFQ) Request for Proposal (RFP) for the expanded Cuddalore port within a fortnight with a view to expedite the project.

The Maritime board will sign a concession agreement with the company shortlisted under this process.

Under the new project profile for the expanded cuddalore port, the concessionaire will get along with the two full fledged alongside general cargo berths, a 3.5 kilometre long adjacent water front to build another medium sized harbour. It has also been decided expand the tenure of the lease from the present 30 to 50 year tenure so that concessionaire could plan for long term development of the port.

The board has floated Request for Qualification (RFQ) last year and short listed two firms for maintaining, operating and marketing the two alongside general cargo berths at Cuddalore port, constructed at a cost of Rs 150 crores under the Sagar Mala program. The Board and the Port Ministry shared the cost of the project. The two berths were ready for commissioning in early 2023 but had to be postponed due to the fresh demands for expanding the port project from the short listed firms

The short listed firms were keen on an expanded port by including the adjacent 10 kilometre water front along with the two general cargo berths. Considering the presence of fishermen in the area, the state Maritime board decided to reduce the water front to 3.5 kilometres under the new tender to be floated soon.

State governments have extended the concession period for the public private partnership (PPP) projects for port projects beyond the 30 years stipulated as of now.. Maharashtra government has extended the concession period to 75 years, Andhra Pradesh 49 years, Karnataka 55 years. Gujarat Maritime board is all set to extend the period from the current 30 years tenure.  It is in this context the Tamil Nadu Maritime board had decided to offer a concession period of 50 years for the expanded Cuddalore port project.

Explaining the rationale of extending the concession period for PPP operators, sources said it took on an average of at least 10 years for the successful operator to get various statutory clearances from authorities including the Pollution control board. It took another eight to nine years to establish and stabilise cargo. By that time the operator will lose interest in any long term investment if the concession period is limited to 30 years. That is why many states have opted for longer concession period and Tamil Nadu has followed suit.