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Azhikkal port to negotiate revenue share with ABG

Azhikkal port to negotiate revenue share with ABG

Authorities of Azhikkal port is in the process of negotiating the revenue share with the sole bidder -Mumbai-based ABG Group – for its proposed cement terminal project.

It may be noted that when the port issued tender for the first time, even ABG delayed submitting a detailed report as it had some apprehensions over the project. Following this, the authorities floated the tender again.

The project attracted only one bidder although four companies had expressed interest and participated in the pre-bid meeting. The port authority feels that the revenue share that they offered was a bit less. Following the negotiation, the government would take a decision on granting tender to ABG.

Meanwhile, the port has also not received any response from investors for the development of a multipurpose terminal and an LPG terminal.

This is despite the fact that Deloitte Touche Tohmatsu India presented a bright future for the port in its project report. However, the investors are apparently not very convinced about it. Though some companies had expressed interest at the Emerging Kerala meet, nothing has materialized so far.

Owing to this uncertainty, the proposal for the major port development in Azhikkal also has not reached anywhere. If the major port project has to be considered, the state government has to do the first phase of development, which is yet to be started, reports indicate.

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