Mumbai, January 04, 2006 (Express News Service)

Hutchison Port Holdings (HPH), a unit of the Hong Kong-based Hutchison Whampoa group, has received a go-ahead from the government to bid for Mumbai’s $260 million offshore container terminal (OCT) project.

The clearance was delayed as Indian security agencies had raised concerns about a major construction activity being carried out by a company which is supposed to be close to the Communist government of China. When contacted, senior Larsen & Toubro officials declined to comment on the development, saying that they were still in the pre-bid stage.

HPH and L&T are among the 11 private companies that have been shortlisted for the OCT project by the Mumbai Port Trust (MbPT), subject to security clearances. These companies have been asked to submit their concrete proposals (that would include the percentage of revenue sharing with the MbPT) by January 9.

‘‘We have not yet received any communication from the central government over the security clearance for the two bidders (HPH and Evergreen) as yet,’’ a senior port official said. ‘‘If the central government has granted security clearance to them, it is good. But, if we don’t receive communication over the security clearances by January 9, both the bidders would be disqualified.’’

The port official said security clearance was required even to work as a management contractor and the fate of HPH would depend on the clearance. The status of Evergreen remains unclear.

The HPH and L&T agreement states that in event of the L&T winning the OCT contract, HPH would work as its management contractor, as the L&T does not have experience in port management. It has also been agreed that, in return, the HPH would not independently bid for the OCT contract.

The security clearances of HPH and Evergreen were pending security clearances following objections by Indian defence and home ministries which pointed out that the OCT was within the view of India’s Southern Naval command base.

Meanwhile, the Jawaharlal Nehru Port Trust already has three container terminals, including two run by private companies (P&O and Mearsk). The trust is now planning a fourth terminal.

The other playes apart from the L&T-HPH consortium in the fray include Evergreen Marine, MOL, P&O Ports, United Liner Agencies India, Gammon India, ABG Heavy Industries, DP World, A.P. Moller Finance SA and Adani Exports.