Hyundai, L&T bid for Kandla project

AHMEDABAD: Korean chaebol Hyundai is pitching for the Rs 1,000 crore ship-building yard project in Kandla. The Kandla Port Trust (KPT) authorities said Hyundai is among four companies which have approached them and are keen on developing the project. KPT is likely to formally invite expressions of interest for the project next month. Others in the race are L&T, ABG Shipyard and Bharati Shipyard.

KPT intends to invite global tenders for the project of ‘development of ship repair and/or ship-building complex on private participation basis”. KPT has already got a feasibility report for the project prepared. The project will be developed on a build-operate-transfer (BOT)-basis by a private developer which will be selected through a global bidding process.

KPT chairman A Janardhana Rao confirmed the development. “The port plans to set up a mega ship-repairing as well as ship-building yard of international standards at suitable location at Tuna. Around 1,200 acres of land has been earmarked opposite to waterfront where natural deep draft is available,” he said.

L&T has already commissioned an internal study to evaluate the prospects of the various sites on its radar for a ship-building project. Kandla port is one of the 12 major ports of India and currently has 11 dry cargo berths and six oil jetties.

Apart from the proposed shipyard project, the port is already in the process of developing outer harbour facility at Tuna which is 20-22 km away from the present port facilities at Kandla.

A recent study by KPT establishes that Tuna will be the more tranquil than other ports, with a deep draft of 17.5 mts.